Legislature(2003 - 2004)
03/05/2003 02:20 PM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 115-EXTEND ALASKA MINERALS COMMISSION CO-CHAIR FATE announced that the first order of business would be HOUSE BILL NO. 115, "An Act extending the termination date of the Alaska Minerals Commission." Number 0086 REPRESENTATIVE KERTTULA, speaking as the sponsor of HB 115, explained that the bill would extend the Alaska Minerals Commission for a term of 10 years versus 5 years, because it's been doing a good job, and she said it seems unnecessary to bring it back in every 5 years. Representative Kerttula said the commission was established in 1986, to make recommendations to the governor and to the legislature on ways to mitigate constraints on the development of minerals. Since 1986, she said, several recommendations have been implemented such as the Exploration Incentives Act passed in 1995 to encourage explorations for minerals. She said in 1996, miners were provided with more flexible work hours, and in 1998, the funding was provided to update the recorder's offices. She noted that these are all things that the commission has taken the lead on, and she said given the state's history and the real viability of this industry, she thought it was a great commission that's been dedicated to trying to work out ways to have good, responsible mining in an environmentally sound manner. She said she would like to see the [commission's] work continue. Number 0277 CO-CHAIR FATE asked about the possibility of amending present statutes relating to mining or changing the mission of the commission if changes needed to be made before the end of the 10-year term. REPRESENTATIVE KERTTULA said if the legislature felt there needed to be changes, or there were an audit that showed the necessity for a change, the legislature could always come back in and sunset it earlier. She said the commission feels it is necessary to work for a longer period of time, and that it would cost less time and energy to put it on that kind of a term. REPRESENTATIVE KERTTULA, in response to a question presented by Representative Heinze, explained that travel costs are paid for out of the general fund, and [funding for] staff is through the department and is not included in the commission's budget. Number 0442 REPRESENTATIVE HEINZE asked Representative Kerttula if she was referring to the Department of Economic and Community Development. REPRESENTATIVE KERTTULA answered in the affirmative. Number 0468 REPRESENTATIVE GATTO said there seemed to be a tendency on the boards to extend the regulatory "group" for longer than the previous time. He stated that he's not entirely in favor of it, but he's okay with it, but he noted that an audit could be conducted at any time the [legislature feels it is necessary]. He said that makes it okay for him to accept the [bill]. Number 0524 STAN FOO, Manager, Mining Section; Division of Mining, Land and Water; Department of Natural Resources, testified. Mr. Foo said the division supports the extension of the Alaska Minerals Commission to the year 2014. He explained that the commission provides important and meaningful feedback to the administration, the legislature, and the division on mining issues, including land management and water management issues. Mr. Foo said it provides the division with a "reality check" for the state's ongoing efforts for developing, enhancing, and conserving the state's mineral wealth. He explained that the commission includes representation from both large and small miners representing hard rock, placer, and coal mining. He said broad representation also includes [corporations established under the Alaska Native Claims Settlement Act (ANCSA)] and, most importantly, provides a broad geographic representation advising on mining and offering guidance on mining throughout the state. With the importance of mining to the economy of Alaska being expected to grow in the coming years, he said, the division looks forward to the ongoing feedback and guidance provided by the commission. Number 0698 LANCE MILLER, Executive Director, Juneau Economic Development Council (JEDC), testified. Mr. Miller noted that he was previously employed as a projects manager for Placer Dome in Asia, mainly working in the Russian Far East based out of Alaska, and as chief geologist for Echo Bay [Mines], on the "AJ project" for nine years. Mr. Miller spoke about the tenure of the [commission], and he said from a private-sector perspective, 10 years is actually short, because mines take a long time to put into production these days. He said he thought it shows good will on the part of the state if the state is willing to extend the commission 10 years. When a company is willing to invest hundreds of millions of dollars in a state, he said, it often is putting its capital at risk for over 10 years. He said a study from the Frasier Institute indicated that Alaska has slipped in investment attractiveness. Mr. Miller said with everything that it takes to get a project moved ahead, 10 years is what companies are looking at, so if the state can do that also, it sends a good signal. Number 0867 REPRESENTATIVE KERTTULA noted that [Frankie] Pillifant, [Development Specialist, Mining and Minerals, Division of Community and Business Development, Department of Community and Economic Development] is her cousin. She noted that Ms. Pillifant works with the Alaska Minerals Commission but isn't funded out of this legislation. Number 0927 CO-CHAIR CHENAULT moved to report HB 115 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 115 was reported from the House Resources Standing Committee.
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