SJR 37 PRIMARY MFG OF PUBLICLY OWNED TIMBER                         
                                                                              
  SENATOR TORGERSON, sponsor,     said he understood there is curre        
 legislation to give Alaska this exemption and one of those bills              
 was vetoed by the President.  So there is nothing before Congress             
 that would give them this authorization.  This approach includes              
 municipal lands and also the University of Alaska lands.  The                 
 reason for the legislation is because in the City of Seward there             
 was a saw mill that shut down because of a lack of material to be             
 processed resulting in them auctioning off all the equipment.  A              
 year ago there was a sale and it was purchased by an outfit from              
 Oregon.  The chances are now that this raw material will be                   
 exported to Oregon.  The exemption asked for has been granted to 11           
 other western states.  So they can come up here and export, but               
 Alaskans are prohibited from doing the same down there to                     
 supplement our timber supply.                                                 
                                                                               
 Number 425                                                                    
                                                                               
 SENATOR TAYLOR asked if he thought there would be any exceptions to           
 this legislation.  He said the U.S. Forest Service has had a                  
 restriction on round log export in Southeast Alaska for many years.           
 As a consequence it did develop the local economy.  During the                
 entire time there has been an exemption on cedar logs.                        
                                                                               
 SENATOR TORGERSON responded that this proposal asks Congress the              
 authority for the State of Alaska to regulate, restrict, or                   
 prohibit.  We could decide to prohibit entirely.                              
                                                                               
 SENATOR TAYLOR said he was pointing out that this is not a complete           
 ban on the exportation of logs, but merely provided the State with            
 some working tools.                                                           
                                                                               
 SENATOR FRANK commented that it would be helpful to have an                   
 additional whereas expressing that it would be just a tool to help            
 local development.                                                            
                                                                               
 SENATOR TORGERSON said he thought that was what he thought the                
 resolution was saying.                                                        
                                                                               
 Number 490                                                                    
                                                                               
 CLIFF EAMES, Alaska Center for the Environment, noted the committee           
 had a letter from him supporting SJR 37.                                      
                                                                               
 MARK WHEELER, Alaska Environmental Lobby, strongly supported SJR              
 37.  He said when timber is harvested on State land it makes sense            
 to maximize the number of jobs from each tree cut.  Exporting logs            
 in the round sends jobs out of state and hurts the future of a                
 sustainable timber industry in Alaska.  They respectfully ask that            
 other trust lands be included in the resolution and urge passage in           
 a timely manner.                                                              
                                                                               
 SENATOR TORGERSON commented that lands held in trust have been                
 determined by the higher courts as having a higher fiduciary                  
 responsibility to the trust than they do to the residents of the              
 area in which the trust has effect.                                           
                                                                               
 Number 503                                                                    
                                                                               
 SENATOR PEARCE moved to pass SJR 37 from committee with individual            
 recommendations and a $0 fiscal note.  There were no objections and           
 it was so ordered.