02/23/2004 01:36 PM House RES

HB 344-MINING FEES/LABOR/ROYALTIES/ABANDONMENT                                                                                
                                                                                                                                
Number 2204                                                                                                                     
                                                                                                                                
CO-CHAIR DAHLSTROM  announced that the  final order   of business                                                               
would be 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."                                                                                    
                                                                                                                                
Number 2192                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK  moved to adopt the  proposed committee substitute                                                               
(CS),  Version 23-LS1298\I,  Bullock,  2/20/04 as  a work  draft.                                                               
There being no objection, Version I was before the committee.                                                                   
                                                                                                                                
Number 2167                                                                                                                     
                                                                                                                                
JIM  POUND,  Staff  to Representative  Hugh  Fate,  Alaska  State                                                               
Legislature, speaking on behalf  of Representative Fate, sponsor,                                                               
told the committee that the sponsor is  in support of the CS.  He                                                               
explained that under current statute if  a miner files his or her                                                               
paperwork -  a statement of annual  labor or the payment  of rent                                                               
or  royalties  - one  day  late,  the  state considers  the  mine                                                               
abandoned.   Mr.  Pound said  CSHB 344(RES)  will change  that by                                                               
allowing a  "cure" for  the miner,  but it  does not  prevent the                                                               
miner  from meeting  the  requirements in  statute,  nor does  it                                                               
allow the miner the right to  "let it slide without there being a                                                               
penalty."  Under  the penalty clause of CSHB  344(RES), the miner                                                               
will have to  pay a late fee  equal to at least  one year's rent.                                                               
He said  the CS  accomplishes what was  intended in  the original                                                               
bill,  which was  to keep  the  miners working  and "bring  their                                                               
local  economy stimulus"  to Alaska.   He  urged the  committee's                                                               
support.                                                                                                                        
                                                                                                                                
Number 2100                                                                                                                     
                                                                                                                                
CO-CHAIR MASEK clarified  that her motion to  adopt CSHB 344(RES)                                                               
was for purposes of discussion.                                                                                                 
                                                                                                                                
Number 2076                                                                                                                     
                                                                                                                                
CO-CHAIR DAHLSTROM announced that HB 344 would be held over.