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(a) The division may negotiate with a local manufacturer for a timber sale under AS 38.05.118 if the director determines that
(1) the rate of unemployment in the area in which the timber is located is at least 135 percent of the statewide average rate of unemployment for the preceding 12-month period for which a statistical comparison is available, or the rate of unemployment is expected to exceed 135 percent of the statewide average within two years;
(2) a permanent manufacturing facility exists in the area in which the timber is located with the capacity to process at least 50 percent more on a board-foot-per-day basis than the average daily production of the manufacturing facility during the three-year period immediately preceding the date of the sale or such a facility is expected to exist within two years; and
(3) an economically operable state timber resource exists in the area in which the timber is located and the state timber resource has the capacity to sustain a level of harvest on a sustained-yield basis which is at least 50 percent greater than the level of harvest of the state timber resource on the date of the sale.
(b) In determining whether a negotiated sale under this section is in the best interests of the state, the commissioner will consider
(1) the local manufacturer's
(A) financial backing and capability;
(B) experience in the proposed undertaking; and
(C) ability to meet bonding or insurance requirements; and
(2) any other factors the commissioner determines to be in the best interests of the state.
History: Eff. 7/2/82, Register 83; am 9/6/96, Register 139
Authority: AS 38.05.020
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Last modified 7/05/2006