Legislature(2005 - 2006)CAPITOL 124

04/27/2006 09:00 AM House COMMUNITY & REGIONAL AFFAIRS


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09:09:11 AM Start
09:09:35 AM SB171
09:25:12 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SB 171 NPR-A COMMUNITY GRANT PROGRAM
Moved HCS CSSB 171(CRA) Out of Committee
SB 171-NPR-A COMMUNITY GRANT PROGRAM                                                                                          
                                                                                                                                
CO-CHAIR THOMAS announced  that the only order  of business would                                                               
be CS  FOR SENATE  BILL NO. 171(FIN)(efd  fld), "An  Act amending                                                               
the  National Petroleum  Reserve -  Alaska special  revenue fund;                                                               
and  establishing  the  Special  Legislative Oil  and  Gas  NPR-A                                                               
Development Impact  Review Committee and defining  its powers and                                                               
duties."                                                                                                                        
                                                                                                                                
9:09:35 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  OLSON moved  to adopt  Version 24-LS0785\V,  Chenoweth,                                                               
4/26/06,  as the  working document.   There  being no  objection,                                                               
Version V was before the committee.                                                                                             
                                                                                                                                
9:09:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  OLSON related  that there  have  been several  meetings                                                               
between the  North Slope Borough,  the sponsor, the  co-chairs of                                                               
this   committee,  the   President   of  the   Senate,  and   the                                                               
Administration,  which  has  led  to  Version  V  that  hopefully                                                               
everyone can agree to move on to the next committee of referral.                                                                
                                                                                                                                
9:10:38 AM                                                                                                                    
                                                                                                                                
SENATOR  GARY WILKEN,  Alaska  State  Legislature, sponsor,  said                                                               
that  the  struggle  remains with  regard  to  the  legislature's                                                               
involvement.  With that in mind  and the lateness of the session,                                                               
the  component regarding  judging the  grants and  evaluating the                                                               
funding was eliminated.   Version V does maintain  the concept of                                                               
the permanent fund  and the need to follow federal  law in regard                                                               
to how the grants will  be satisfied.  Furthermore, the permanent                                                               
fund will be  calculated on the gross rather than  the net that's                                                               
left.   Any deficiency will follow  one year to another  in order                                                               
to  follow the  constitutional  obligation to  include rents  and                                                               
royalties  in the  permanent fund.    He related  that next  year                                                               
he'll continue to work on the  concepts on which no agreement was                                                               
reached.    He pointed  out  the  change  in  the title  and  the                                                               
elimination  of  the legislative  intent.    Senator Wilken  then                                                               
directed the  committee's attention to  page 3, lines  6-7, where                                                               
the    terms   "activities"    and   "capital"    were   inserted                                                               
respectively.                                                                                                                   
                                                                                                                                
9:14:13 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON  said he is willing  to continue to work  with the                                                               
sponsor on the remaining issues.                                                                                                
                                                                                                                                
9:14:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  thanked  the  sponsor for  his  work  and                                                               
recognized the conciliation on both sides of this issue.                                                                        
                                                                                                                                
9:15:33 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS,  upon determining  no  one  wished to  testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
9:15:43 AM                                                                                                                    
                                                                                                                                
CO-CHAIR OLSON  moved to  report Version  24-LS0785\V, Chenoweth,                                                               
4/26/06,  out of  committee with  individual recommendations  and                                                               
the accompanying fiscal notes.                                                                                                  
                                                                                                                                
REPRESENTATIVE CISSNA objected.                                                                                                 
                                                                                                                                
9:15:58 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA recalled the  years during which she worked                                                               
for Native corporations  when she tried to  help the shareholders                                                               
understand how the  Western economy fit the Native  economy.  She                                                               
then recalled  the testimony from prior  hearings indicating that                                                               
development is  removing people from their  community and ability                                                               
to feed  their families.   There  is a  true impact,  she opined.                                                               
She opined  that to address  this matter thoughtfully  would take                                                               
time,  but   that's  difficult  due   to  the  turnover   in  the                                                               
legislature and  the lack of  knowledge of the areas  impacted by                                                               
this development.                                                                                                               
                                                                                                                                
9:19:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX related  her  observation that  no one  is                                                               
present from the North Slope  Borough to testify.  Therefore, she                                                               
questioned if  that means  that Version  V isn't  problematic for                                                               
that area.                                                                                                                      
                                                                                                                                
9:20:13 AM                                                                                                                    
                                                                                                                                
DENNIS ROPER,  Special Assistant to  Mayor Itta,   Government and                                                               
External  Affairs/Resource  Development,   North  Slope  Borough,                                                               
began by assuring the committee  that the North Slope Borough has                                                               
followed this  issue closely.   He then related  his appreciation                                                               
of the efforts  of the co-chairs and others.   However, the North                                                               
Slope  Borough  never  felt  SB 171  was  necessary  because  the                                                               
Department  of   Commerce,  Community,  &   Economic  Development                                                               
(DCCED) has  performed a good  job in  managing the grants.   Mr.                                                               
Roper  said  that  there's  no   question  that  the  subsistence                                                               
lifestyle is  the heart  of this  issue.  Still,  as much  as the                                                               
North Slope Borough opposes SB 171, it can live with Version V.                                                                 
                                                                                                                                
9:22:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  commented that the different  views in the                                                               
legislature make it  stronger.  He related his  belief that there                                                               
is  room  for  development,  which  can  be  accomplished  in  an                                                               
appropriate fashion.   Furthermore,  development has led  to many                                                               
of  the  services available  in  communities,  such as  fire  and                                                               
emergency  services.   He also  related his  belief that  care is                                                               
being  taken   to  address/minimize  environmental   impact  when                                                               
developing.                                                                                                                     
                                                                                                                                
9:24:46 AM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives LeDoux,  Neuman,                                                               
Salmon, Olson,  and Thomas  voted in  favor of  reporting Version                                                               
24-LS0785\V,    Chenoweth,    4/26/06,    out    of    committee.                                                               
Representative  Cissna voted  against  it.   Therefore, HCS  CSSB
171(CRA) was  reported out  of the  House Community  and Regional                                                               
Affairs Standing Committee by a vote of 5-1.                                                                                    

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