2012-02-29                     House Journal                      Page 1738
HB 361                                                                                                                        
HOUSE BILL NO. 361 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
    "An Act relating to the Alaska Land Act, including certain lease,                                                           
    sale, and other disposal of state land and materials; relating to                                                           
    production royalties from miners; relating to rights to use state                                                           
    water; and providing for an effective date."                                                                                
                                                                                                                                
was read the first time and referred to the Resources and Finance                                                               
Committees.                                                                                                                     
                                                                                                                                
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Zero, Dept. of Fish & Game                                                                                                  
2.  Zero, Dept. of Transportation & Public Facilities                                                                           
3.  Indeterminate, Dept. of Natural Resources                                                                                   
                                                                                                                                
The Governor's transmittal letter dated February 27, 2012, follows:                                                             
                                                                                                                                
"Dear Speaker Chenault:                                                                                                         
                                                                                                                                
Under the authority of Article III, Section 18 of the Alaska                                                                    
Constitution, I am transmitting a bill relating to the Alaska Land Act,                                                         
including certain lease, sale, and other disposal of State land and                                                             
materials; relating to production royalties from miners; and relating to                                                        
rights to use State water. This bill will reduce the permitting burden                                                          
and costs of applicants by creating efficiencies, streamlining, and                                                             
eliminating redundancies in the permit application process.                                                                     
                                                                                                                                
This bill would accomplish the following:                                                                                       
                                                                                                                                
    (1) Allow the Department of Natural Resources to use sealed bid                                                             
    procedures, rather than public auction, if appropriate, for certain                                                         
    leasing and disposal of State land;                                                                                         
                                                                                                                                

2012-02-29                     House Journal                      Page 1739
    (2) Raise the monetary cap for negotiating leases of State land                                                             
    from $5,000 to $10,000;                                                                                                     
                                                                                                                                
                                                                                                                                
    (3) Give the Department of Natural Resources more flexibility                                                               
    regarding when to issue negotiated leases of land, as opposed to                                                            
    using a competitive bid process;                                                                                            
                                                                                                                                
                                                                                                                                
    (4) Allow the Department of Natural Resources to renew mineral                                                              
    and land leases under certain conditions without conducting the                                                             
    same process for initiating a new lease;                                                                                    
                                                                                                                                
                                                                                                                                
    (5) Separate out the respective rules and procedures for timber                                                             
    sales and material sales, such as for rock and gravel;                                                                      
                                                                                                                                
                                                                                                                                
    (6) Allow the Department of Natural Resources to convey                                                                     
    materials as needed for flood control purposes;                                                                             
                                                                                                                                
    (7) Allow the Department of Natural Resources to exempt small                                                               
     mining operations from having to pay production royalties; and                                                            
                                                                                                                                
    (8) Provide more flexibility to the Department of Natural                                                                   
     Resources in how they notify the public of proposed decisions.                                                            
                                                                                                                                
                                                                                                                                
Collectively, these various changes represent an effort by the                                                                  
Department of Natural Resources to make its administration of these                                                             
programs more efficient. If enacted, these changes will help the                                                                
Department improve its ability to responsibly manage the State's land                                                           
and resources in accordance with constitutional principles and                                                                  
statutory directives.                                                                                                           
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Sean Parnell                                                                                                                    
Governor"