2012-02-29                     Senate Journal                      Page 1685
SB 219                                                                                                                        
SENATE BILL NO. 219 BY THE SENATE RULES COMMITTEE                                                                               
BY REQUEST OF THE GOVERNOR, entitled:                                                                                           
                                                                                                                                
                                                                                                                                

2012-02-29                     Senate Journal                      Page 1686
          "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 information was published today:                                                                           
 Fiscal Note No. 1, zero, Department of Fish and Game                                                                           
 Fiscal Note No. 2, zero, Department of Transportation and Public                                                               
      Facilities                                                                                                                
 Fiscal Note No. 3, indeterminate, Department of Natural                                                                        
      Resources                                                                                                                 
                                                                                                                                
Governor's transmittal letter dated February 27:                                                                                
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
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;                                                                                                        
                                                                                                                                
          (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;                                                                                                     

2012-02-29                     Senate Journal                      Page 1687
          (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