HOUSE ECONOMIC TASK FORCE February 2, 1994 4:00 p.m. MEMBERS PRESENT Representative Jeannette James, Vice Chair Representative Al Vezey Representative Bill Williams Representative Bettye Davis Representative Joe Green Representative Bill Hudson Representative Carl Moses MEMBERS ABSENT Representative Eileen MacLean, Chair Representative Jerry Mackie COMMITTEE CALENDAR Discuss interim working group recommendations ACTION NARRATIVE TAPE 94-02, SIDE A VICE CHAIR JAMES called the meeting of the House Economic Task Force to order at 4:17 p.m. February 2, 1994. She suggested the Task Force deal with action items only by discussing just items designated as "Legislation". Representative Williams discussed the three items of new legislation in the Timber Subcommittee recommendations: 1. Introduce a joint resolution asking the U.S Congress to review the impact in the Alaska economy and forest products industry of wilderness designations in national forests, and to increase the amount of timber available for harvest in the Tongass National Forest. Representative Williams agreed to draw up the resolution and present it to the Task Force next week. 2. Introduce a joint resolution asking the U.S. Department of Agriculture, Forest Service, and the U.S. Department of the Interior, Bureau of Land Management, to permanently exclude lands in Alaska managed by the Forest Service or the BLM from the requirements of PACFISH. PACFISH is a comprehensive strategy for managing Pacific anadromous fish watersheds and habitats on land in several western states that limits the development of those lands, including timber harvesting. Representative Williams agreed to draw up this resolution for presentation at the next meeting. 3. The legislature should support proposed amendments to Title 38 expected to be introduced by the Governor in 1994 that are specifically designed to streamline the regulatory process and encourage timber industry development. The Task Force directed staff to follow up on this by acquiring a copy of the "cleaned-up" version of applicable portions of Title 38 from Department of Natural Resources. It was decided that the Resources Committee could submit this resolution. Representative Green presented the new legislation recommendations of the Oil, Gas, and Mineral Resources Subcommittee: 1. Improve methods of land access for development and product transportation, either through Title 38 revamp or new legislation. Staff was directed to bring this to the next meeting. 2. Send a resolution to Canada encouraging development of Windy Craggy area when copper prices are right, as this will provide jobs to Haines residents and send a message to Canada that we encourage mine development. The Task Force authorized Representative Green to draft this resolution and present it for approval at the next meeting. 3. Redistribute tax and royalty burden more equitably among other industries such as timber, fish, and tourism, and stop raiding energy industries. Representative Green explained that this is an effort to create more tax equity among the various industries. After some debate on Item 3, Vice Chair James suggested that, since this recommendation is in dispute, the Task Force not adopt it as a goal. There were no objections. Representative Green presented the next two items, under "Existing Legislation": 4. Support pending legislation for exploration licensing (HB 199 or SB 150), which encourages companies to explore remote areas for oil and gas. 5. Support pending legislation for exploration tax credits (HB 200 or SB 151) or reinstate a discovery royalty provision. The Task Force agreed to support the concepts of these bills, but asked that copies of the bills be brought next week before making a final decision. Vice Chair James suggested, in order to speed up the process, each subcommittee chair bring resolutions, bills, drafts, and written suggestions to the Task Force meetings prior to discussion of their recommendations. The next meeting will be held Wednesday, February 9, 1994, in Room 124. Vice Chair James adjourned the meeting at 5:00 p.m.