04/15/2012 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 361(FIN) am                                                                                             
                                                                                                                                
     "An  Act relating  to the  Alaska  Land Act,  including                                                                    
     certain  leases, sales,  and other  disposals of  state                                                                    
     land  and materials;  relating to  production royalties                                                                    
    from miners; and providing for an effective date."                                                                          
                                                                                                                                
9:26:02 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute  for  CSHB  361(FIN)am,  Work  Draft  27-GH2717\E                                                                    
(Bailey, 4/15/12).                                                                                                              
                                                                                                                                
Co-Chair Stedman OBJECTED for the purpose of discussion.                                                                        
                                                                                                                                
Senator  Egan explained  the changes  in  the new  committee                                                                    
substitute. The bill  had an added phrase in  the title that                                                                    
adds Section  26: conveying  a partial of  land. The  end of                                                                    
Section  7,  page  4,  line  1 matched  a  change  that  the                                                                    
Resource  Committee made  to the  Senate version,  requiring                                                                    
public notice  of renewal decisions  for state  land leases.                                                                    
The last  change was  on page  17, which  added a  parcel of                                                                    
land to the City and Borough  of Juneau. He remarked that he                                                                    
had  worked  for  over two  years  regarding  land  transfer                                                                    
issues.                                                                                                                         
                                                                                                                                
Co-Chair  Stedman  REMOVED  his OBJECTION.  There  being  NO                                                                    
FURTHER OBJECTION, Work Draft 27-GH2717\E was ADOPTED.                                                                          
                                                                                                                                
ED  FOGELS,  DEPUTY   COMMISSIONER,  DEPARTMENT  OF  NATURAL                                                                    
RESOURCES,  stated  that  the  bill  was  a  result  of  the                                                                    
legislature  and governor's  request for  the Department  of                                                                    
Natural Resources  (DNR) to examine the  permitting systems,                                                                    
to reduce the  backlog, and to reduce the time  and cost for                                                                    
applicants.  A bottom-up  review  of the  statutes had  been                                                                    
conducted over the  year prior, and this bill  was the first                                                                    
batch in improving the permitting  process. He felt that the                                                                    
changes  would  enable  DNR  to  process  applications  more                                                                    
quickly, and  reduce time  and cost  for the  applicant. The                                                                    
bill would  improve the land  leasing process by  giving DNR                                                                    
more  flexibility in  issuing negotiated  leases instead  of                                                                    
competitive   leases.  The   bill  would   allow  DNR   more                                                                    
flexibility in  renewing leases.  He stressed that  the bill                                                                    
was only for  land leases, not oil and gas  leases. The bill                                                                    
would  make the  material sale  process more  efficient, and                                                                    
allow the State to sell  materials at below market value for                                                                    
public purposes. The bill would  allow DNR to use sealed-bid                                                                    
and  public outcry  auctions for  increased efficiency.  The                                                                    
bill  would  modernize  the public  notice  requirements  by                                                                    
emphasizing online  public noticing.  The bill  would reduce                                                                    
paperwork by  allowing a  miner to  choose either  fiscal or                                                                    
calendar years  to match their  tax filings. The  bill would                                                                    
allow  DNR to  renew off-shore  mining leases  for up  to 20                                                                    
years.                                                                                                                          
                                                                                                                                
Co-Chair Stedman discussed the  fiscal notes in members' the                                                                    
packets.                                                                                                                        
                                                                                                                                
Co-Chair Hoffman  MOVED to report  SCS CSHB 361(FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 361(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation  and with a  new zero fiscal  note from                                                                    
the   Department  of   Natural  Resources,   and  previously                                                                    
published zero fiscal notes: FN1(DFG) and FN2(DOT).