Legislature(2003 - 2004)
03/02/2004 01:55 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 344 An Act relating to annual rental fees for mining claims, and providing for reduced royalties during the first three years of production. REPRESENTATIVE HUGH 'BUD' FATE noted that the bill was designed to keep the small Alaska mining industry in business. Since 1980's, Alaska has seen the small miner disappear because of the costs associated with that industry. There is a 'glitch' in the Alaska statutes. The language causes a miner to automatically lose their claim if the required paperwork was filed a day late. HB 344 would "fix" that language, granting a deadline extension. New language would allow a miner to keep claims by filing the paperwork and paying a penalty equal to one years rent. He pointed out that Alaska was founded on mining before oil was important to the State's industry. Small mines have brought cash to the local communities. HB 344 is an important first step in reviving an industry that is good for local communities and the State as a whole. JIM POUND, STAFF, REPRESENTATIVE HUGH 'BUD' FATE, offered to answer questions of the Committee. BOB LOEFFLER, DIRECTOR, MINING, LAND AND WATER DIVISION, DEPARTMENT OF NATURAL RESOURCES, pointed out that often times the miners are late in their filings. He commented on circumstances that affect the miners. HB 344 provides flexibility and alternatives. It will help to save some claims and will help small miners remain viable. Representative Foster voiced his appreciation for the legislation. He asked what would happen if a miner filed late and another miner "staked" that claim. Mr. Loeffler replied that had been extensively discussed with the Mining Association. The bill could rectify the claim as long as no one had staked intervening rights. If someone staked in the interim, the language would not cure the problem. He pointed out that this is part of a long tradition from the 1872 mining bill. Representative Croft asked the penalty and if interest would be calculated. Mr. Loeffler replied that the miner would be required to pay whatever was owed and an additional one-year rental. Representative Croft inquired if the bill had originally addressed royalties. Mr. Pound responded that it did and after calculation, it was determined that would save only about $20 to $60 dollars so it was decided not to be worth the process. Representative Fate interjected that the legislation started the same as HB 232, but that bill did not "meaningfully help the small miner". Representative Fate MOVED to report CS HB 344 (RES) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CS HB 344 (RES) was reported out of Committee with a "do pass" recommendation and with a new note by Department of Natural Resources.
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