Legislature(2001 - 2002)
05/02/2002 04:22 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE CS FOR CS FOR HOUSE BILL NO. 421(RES)
"An Act relating to requiring the Department of Natural
Resources to develop and maintain a standardized procedure for
processing applications and issuing permits, authorizations,
and certifications under the Alaska Water Use Act and to make
a record of those items and amendments and orders affecting
them available on the Internet."
This was the second hearing for this bill in the Senate Finance
Committee.
Senator Leman spoke to a draft amendment [not on file]. He reminded
the Committee that in May 2001, during the final days of the first
session of the Twenty-Second Alaska State Legislature, HB 185 was
passed, which amended the Alaska Water Use Act. He recalled
concerns were raised during debate on that legislation relating to
"major public policy questions" about the operation of the Water
Management Program within the Department of Natural Resources.
Because of these concerns, he continued, HB 185 included a one-year
sunset provision on the Department's authorization for temporary
water use activities. In addition, he noted the Legislature
provided additional funding to the Department to expedite the water
appropriations process and "clean up the incredibly long backlog of
applications".
Senator Leman informed that one year later, the application backlog
remains and that "very few of the public interest policy questions
have been addressed." He shared that a finding issued by the
Division of Legislative Legal and Research Services cautions that
in the absence of addressing the public policy issues, the programs
are "treading on thin ice". As a result, he stated he sponsored an
amendment to HB 421, although he did not intend for the suggested
changes to place a burden on industry and cause delay in the
issuance of temporary water use permits. He suggested a
misunderstanding could be the cause of the opposition to his
proposal.
Senator Leman asserted, "The Department's approach to temporary
water use must be legally defensible, avoid unnecessary delays and
the public interest must be protected." He expressed concern that
without an amendment to the Alaska Water Use Act, the possibility
of "legitimate" legal challenges remains.
Senator Leman stated that because of the limited time remaining in
the current legislative session and because of opposition from the
Department of Natural Resources and private parties that would be
adversely impacted, he would not offer the amendment.
Amendment #1: This amendment deletes the following language from
page 1, line 13, through page 2, line 5 of the Senate Resources
committee substitute.
…shall ensure that all permits for water withdrawal are
invalid unless the applicant complies with applicable
requirements of AS 16.05.870; and shall make the record of
applications, including temporary water use applications under
AS 46.15.155 that have been accepted as complete,
authorizations, permits, certificates, amendments, and orders
affecting them available to the public on the Internet;
This amendment also replaces the deleted language with the
following.
…shall require that temporary water use authorizations are
valid only to the extent that the water withdrawal and use
complies with applicable requirements of AS 16.05.870; and
shall make the record of applications, including temporary
water use applications under AS 16.15.155 that have been
accepted them available to the public on the Internet;
Senator Leman moved for adoption, noting that Senator Rick Halford
and the Department support this amendment, and that Co-Chair Kelly
discussed the implications with potential applicants for temporary
water use permits.
Co-Chair Kelly objected for the purpose of discussion.
RON SOMMERVILLE, Resource Consultant to the House of
Representatives and the Senate Majorities, explained this amendment
was drafted as a result of concerns raised by the Legislature's
legal advisors and by temporary water use permit applicants. He
stated that language adopted by the Senate Resources Committee
would require the Department to "enforce another agency's law"
related to the Anadromous Fish Act [this agency is not specified].
He recalled comments made by Senator Hoffman about parties
receiving water use authorization, assuming they had no further
regulatory obligation, and utilizing the water without knowledge
they were violating requirements of the Anadromous Fish Act. As a
result, he said, Amendment #1 directs the two departments to work
closely on this matter to ensure that applicants are aware of their
responsibilities.
Senator Olson asked if this amendment would assist in reducing the
application backlog.
Mr. Sommerville responded it would not affect the backlog.
Co-Chair Kelly removed his objection to adoption of the amendment.
Without objection the amendment was ADOPTED.
Co-Chair Kelly reminded there was discussion about amending the
fiscal note during the previous hearing on this bill.
JENNIFER YUHAS, Staff to Representative Masek, Chair of the House
Resources Committee, relayed the sponsor's assertion that the
$200,000 appropriated for the current fiscal year is sufficient to
implement this legislation.
Co-Chair Donley moved to adopt a replacement zero fiscal note for
the Department of Natural Resources.
Senator Hoffman directed attention to the contractual services
component of the fiscal note and asked if services were to be
contracted out or how the functions would be performed if
additional positions were not funded.
Co-Chair Kelly responded that $300,000 was appropriated to the
Department the previous session for the purpose of addressing the
application backlog.
Senator Hoffman asked if that appropriation was for contractual
services.
Ms. Yuhas informed the $300,000 appropriation was made to the
Department with the intent it would be used to hire additional
staff to address the backlog. She reiterated the sponsor's opinion
that that this amount is adequate.
Senator Hoffman suggested that if the Department does not have the
necessary expertise to implement this legislation, it would be
necessary to contract for outside assistance, which would decrease
the amount of funds available to hire staff to address the backlog.
Ms. Yuhas stated the Department has made this argument, although
the hiring of additional staff to address the backlog is not
complete and thus the funds appropriated for the current fiscal
year have not been utilized.
Senator Hoffman asserted that if the amount of the backlog is not
reduced to the Legislature's expectation, the Legislature is to
blame for imposing additional expenditure requirements.
Senator Leman informed that $50,000 of the original appropriation
remains, which could lapse. He expressed intent that the Department
"hire aggressively" to fill the positions.
Co-Chair Kelly suggested the FY 03 Operating Budget Conference
Committee could reappropriate the lapsing funds to contractual
services.
Senator Hoffman clarified he did not object to adoption of the
amendment, but emphasized it could adversely impact the reduction
to the backlog.
There was no objection and the Committee ADOPTED a new zero fiscal
note for the Department of Natural Resources.
Senator Leman "moved to report House Bill 421 as amended from
Committee with individual recommendations and the accompanying
Senate Finance fiscal note."
Without objection CS SB 421 (FIN) MOVED from Committee with zero
fiscal note written by the Senate Finance Committee for the
Department of Natural Resources.
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