Legislature(2007 - 2008)SENATE FINANCE 532
05/11/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB87 | |
| SB144 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 104 | TELECONFERENCED | |
| + | HB 87 | TELECONFERENCED | |
| += | SB 144 | TELECONFERENCED | |
| += | HB 162 | TELECONFERENCED | |
| + | TELECONFERENCED |
MINUTES
SENATE FINANCE COMMITTEE
May 11, 2007
9:18 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:18:51 AM.
PRESENT
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Joe Thomas
Senator Fred Dyson
Also Attending: REPRESENTATIVE MIKE KELLY;
Attending via Teleconference: From an offnet location: DICK
MYLIUS, Director, Division of Mining, Land and Water, Department
of Natural Resources;
SUMMARY INFORMATION
HB 87-CITIZEN ADVISORY COMM ON FEDERAL AREAS
The Committee heard from the sponsor and the Department of
Natural Resources. The bill was reported from Committee.
SB 144-TOURISM CONTRACT MATCHING FUNDS
The bill was reported from Committee.
9:19:40 AM
CS FOR HOUSE BILL NO. 87(FIN) am
"An Act relating to the Citizens' Advisory Commission on
Federal Management Areas in Alaska; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
9:19:43 AM
Co-Chair Stedman announced intent to report this bill from
Committee at this hearing.
9:19:51 AM
REPRESENTATIVE MIKE KELLY, Sponsor of the bill, testified that
in the year 1981 Senator Bettye Fahrenkamp facilitated the
creation of the Citizens Advisory Commission on Federal
Management Areas. During the 1990s oil prices declined to nine
dollars per barrel and when the scheduled termination date of
the Commission neared, then Governor Frank Murkowski chose to
allow the program "sunset" rather than be extended as part of an
effort to reduce State expenditures.
Representative Kelly stated that this legislation would
reinstate the Commission with a reduced staff of two positions.
This should assist in containing costs.
9:21:14 AM
Representative Kelly reported that in response to concerns
raised by Representative Mary Nelson regarding representation on
the Commission from all areas of the state, the legislation was
amended to specify that the Commission would be comprised of
members from each geographic region.
9:21:33 AM
Representative Kelly told of the approximately 230 million acres
of federally-owned land in the state. The Commission would be
tasked to provide knowledge and resources for Alaskans utilizing
federally owned lands. The Commission would be familiar with the
rules and regulations governing these lands, as well as having a
personal relationship with the land managers. The Commission
would have the experience and expertise to advise land users
whether their claims for usage were valid.
9:22:27 AM
Representative Kelly summarized that the Commission "could
actually help us with access issues no matter who the party is."
9:22:45 AM
Senator Olson asked the reason the Executive Branch chose to
allow the Commission to expire.
9:22:52 AM
Representative Kelly reiterated the primary reason to reduce
State spending given the lower revenue generated as a result of
lower oil prices.
Senator Olson clarified that no problems were associated with
the Commission's actions or decisions.
9:23:13 AM
Representative Kelly confirmed and noted that the Commission had
no adjudication authority and only served in an advisory
capacity.
9:23:26 AM
DICK MYLIUS, Director, Division of Mining, Land and Water,
Department of Natural Resources, testified via teleconference
from an offnet location in support of this legislation. The
Commission could assist Alaskans with issues regarding federal
land management. Although the Division currently includes
positions charged with such relationships, the focus is on State
government interests with no time or resources available to
address citizens' concerns. The Commission would assist private
Alaskan citizens in several aspects of interaction with federal
land management.
9:24:43 AM
Mr. Mylius acknowledged the "significant" estimated cost
reflected on the fiscal note. To adequately conduct the
Commission's activities, a staff of two positions would be
necessary. Those positions would be located in Fairbanks.
9:25:05 AM
Senator Elton spoke to a resolution addressed by the Senate in
response to a ruling by the federal subsistence board pertaining
to preference for subsistence activity on the Kenai Peninsula.
He asked whether such reactions to subsistence board
determinations would be in the purview of the Commission.
9:25:30 AM
Mr. Mylius replied that the Commission would not be involved in
activities related solely to fish and game use. Instead the
Commission would address land use issues unless it determined
that subsistence board actions affected land use.
9:26:14 AM
Co-Chair Stedman asked if the Department supported this
legislation.
Mr. Mylius repeated his earlier affirmation of the bill.
9:26:22 AM
Co-Chair Stedman directed the witness to detail the fiscal note.
9:26:31 AM
Mr. Mylius responded that most of the funding would be required
for positions to staff the Commission consisting of a director
compensated at a Range 20 and an assistant compensated at a
Range 16. The salaries would be adjusted to provide for the
higher cost of living in Fairbanks compared to that of
Anchorage. Travel expenses would be significant due to the
disbursement of membership to all regions of the state and
because the Commission would meet three to four times annually.
Additional funding would be utilized to lease office space, for
utilities and other equipment.
9:27:42 AM
Mr. Mylius compared the operating expenses to past budgets. The
Commission initially had three to four staff positions, which
were reduced to two and then to one executive director position.
At that point, the Commission was difficult to function.
Mr. Mylius affirmed Representative Kelly's statement that the
Commission had been eliminated for budgetary reasons.
9:28:50 AM
Co-Chair Stedman established that no further testimony was
forthcoming.
9:28:58 AM
Senator Thomas requested an explanation of the membership
representing each region of the state as provided in subsection
(b) of Sec. 41.37.170. Membership and officers., added in
Section 1. He asked if the regions were already delineated.
9:29:32 AM
Representative Kelly responded that the original version of the
bill provided that representation would consist of at least one
person from each of the state's four judicial districts.
Representative Nelson expressed concern that rural communities
might not be represented. The regions provided in the committee
substitute were satisfactory to the representative from
Southwestern Alaska.
9:30:06 AM
Co-Chair Stedman directed the sponsor to elaborate on the
regions.
9:30:12 AM
Representative Kelly relayed the concern that if the membership
was based on judicial districts, the Commission could become
comprised exclusively of members from major population centers.
He agreed this should not occur. Subsequently in consultation
with the Division of Legal and Research Services, the geographic
regions were selected. He noted these regions are also codified
elsewhere in statute as pertaining to other subjects.
9:30:49 AM
Co-Chair Stedman understood the amendment language would provide
for better representation on the Commission from remote areas.
9:30:58 AM
Representative Kelly affirmed.
9:31:00 AM
Senator Huggins alluded to the complexity of veterans' land
claims. He asked whether the Commission would address this
issue.
9:31:23 AM
Representative Kelly conceived of a situation in which an
Alaskan resident could be in dispute with a federal land manager
over these lands and the Commission could become involved.
9:32:01 AM
Co-Chair Hoffman offered a motion to report the bill from
Committee with individual recommendations and accompanying
fiscal notes.
9:32:28 AM
Senator Elton objected. He requested the sponsor provide him
with information regarding the intended scope of duties of the
Commission. He considered the Department of Natural Resources an
advocate for Alaskans in matters pertaining to use of federally-
owned lands. He expressed concern that the Commission could have
expanded duties that include advocating for a specific user
group or individual, which may be in contradiction to the best
interest of the majority of residents.
9:33:45 AM
Representative Kelly offered examples of previous cases in which
the Commission had been involved.
9:34:18 AM
Senator Elton withdrew his objection to the motion.
9:34:24 AM
Without further objection, CS HB 87 (FIN)am was REPORTED FROM
COMMITTEE with zero fiscal note #2 from the Legislative Affairs
Agency and fiscal note #4 for $246,200 from the Department of
Natural Resources.
9:34:37 AM
CS FOR SENATE BILL NO. 144(STA)
"An Act relating to matching funds in state tourism
marketing contracts with trade associations; establishing
the Alaska Tourism Marketing Funding Task Force; and
providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
9:34:55 AM
Co-Chair Stedman directed attention to a new fiscal note from
the Department of Commerce, Community and Economic Development.
9:35:08 AM
Senator Elton announced he would not object to reporting this
bill from Committee. However he would object to implications
that the cruise ship industry might not contribute to the Alaska
Travel Industry Association in protest of the passenger tax
approved by voters in the last general election. The cruise ship
industry has contributed approximately $2 million to this
"generic marketing program" and should continue to do so. To not
participate would "bootstrap" small businesses.
Senator Elton spoke of the "market test" in which State funding
would be appropriate. He exampled the Alaska Seafood Marketing
Institute's promotion of certain fisheries, such as winter king
salmon.
9:37:46 AM
Senator Elton stressed the need to market to independent
travelers. He reiterated his disapproval of the possibility that
the cruise industry could "withdraw" $2 million from generic
marketing of travel to Alaska.
9:38:19 AM
Senator Elton considered this legislation a one-year temporary
solution, which he was willing to tolerate. However, he was
critical of any future action to appropriate State funds to a
generic marketing program if all participants do not contribute.
Cruise ship industry participation is "extremely important."
9:39:05 AM
Co-Chair Hoffman offered a motion to report the bill from
Committee with individual recommendations and new fiscal note.
9:39:29 AM
Senator Huggins objected to the motion to thank the sponsor on
behalf of constituents in the Mat-Su Valley region that do not
have the benefit of large cruise ships bringing many visitors to
the area. He removed his objection.
9:40:07 AM
There was no further objection and CS SB 144 (STA) was REPORTED
FROM COMMITTEE with a new fiscal note dated 5/9/07 from the
Department of Commerce, Community and Economic Development.
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 9:40:42 AM
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