Legislature(1993 - 1994)
02/26/1993 01:37 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 26, 1993
1:37 p.m.
TAPE HFC 93-33, Side 1, #000 - #359.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:37 p.m.
PRESENT
Co-Chair Larson
Co-Chair MacLean
Representative Brown Representative Navarre
Representative Foster Representative Therriault
Representatives Hoffman, Grussendorf, Hanley, Martin and
Parnell were absent from the meeting.
ALSO PRESENT
Senator Sharp; Al Clough, Development Specialist, Department
of Commerce and Economic Development.
SUMMARY INFORMATION
CONFIRMATION HEARING: BOARD OF PUBLIC ACCOUNTANCY
SB 30 "An Act extending the termination date of the
Alaska Minerals Commission."
SB 30 was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note
by the Department of Commerce and Economic
Development, dated 2/10/93.
SENATE BILL 30
"An Act extending the termination date of the Alaska
Minerals Commission."
Co-Chair Larson noted that SB 30 would extend the
termination date of the Alaska Minerals Commission from
2/1/94 to 2/1/99. The Commission's annual budget of $20.4
thousand dollars is included in the FY 94 Operating Budget.
SENATOR BERT SHARP spoke in support of SB 30. He asserted
that the Alaska Minerals Commission is comprised of some of
the best mining and resources people in Alaska. He stressed
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that the Commission was created to make recommendations to
the Governor and the Legislature on ways to mitigate any
constraints, including governmental constraints, on
development of minerals in the state. Commission members
are appointed by the Governor, the President of the Senate
and the Speaker of the House. Current members include
representatives of placer, hard rock and coal mining
industries and come from all areas of the state.
AL CLOUGH, DEVELOPMENT SPECIALIST, DEPARTMENT OF COMMERCE
AND ECONOMIC DEVELOPMENT clarified that the Commission's
budget is in the Department of Commerce and Economic
Development, Economic Development.
Representative Brown questioned the benefit of the
Commission to the people of the State of Alaska. She asked
the accomplishments of the Commission.
Senate Sharp stressed the Commission's role in coordinating
industry and state regulation. He noted the Commission's
role in creating regulations within the Department of
Environmental Conservation and Department of Fish and Game.
Representative Brown referred to the Commission's annual
report, January 1993. She observed that the report states,
"Increased user fees have been suggested as a means of
offsetting the cost of providing government service as the
state faces declining revenues. However, allowing state
agencies to unilaterally implement user fees could result in
uncontrolled increases in the cost of basic services
required by citizens and businesses, allow state agencies to
operated outside the legislatures's budgetary process." She
stressed that user fees are expressly approved by the
legislature before implementation. She expressed concern
that the Alaska Minerals Commission Annual Report is
spreading misinformation.
Representative Therriault spoke in support of SB 30. He
felt that the Commissions's level of expertise and knowledge
more than offsets the cost. He noted that the Commission
recommends the enactment of the Clean Air Act.
Representative Foster spoke in support of SB 30. He pointed
to work the Commission has done on geophysical mapping. He
stressed that the Commission is assisting areas of the state
to assess resources.
Representative Navarre observed that some commissions pay
for themselves. He stressed that the State of Alaska spends
approximately .15 cents on the dollar for mineral
management. He observed that the State does not receive a
large revenue from minerals production. He felt "that $20.0
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thousand dollars probably is worth investing in this (the
Alaska Mineral Commission)."
Representative Therriault pointed out that the Commission's
budget is subject to financial restraints.
Representative Brown referred to the Commission's
recommendation that: "The Governor and Legislature should
create economic incentives that will provide financial
encouragement and help offset some of the real and perceived
problems facing exploration and development in Alaska.
Possible incentives that should be considered include
credits for expenditures on exploration drilling and
geophysics that can be deducted from claim rents, the mining
license tax, production royalties, and income taxes." She
stressed that the State does not receive much revenue from
the minerals industry. She suggested that other factors
such as world demand are of greater influence to the
industry. She asked if the minerals industry could relay to
the legislature their thoughts and suggestions.
Mr. Clough gave a brief overview of the Alaska Mineral
Commissions' accomplishments. He outlined issues that the
Commission has been successful in promoting:
* Municipal In-Place Resource Taxation;
* Geologic and Geophysical Mapping;
* Alaska Mineral and Energy Resource Education Fund
(AMEREF);
AMEREF raises over $100.0 thousand dollars
annually through private donations to resource
educators in the Alaska school system. The
program is coordinated through the Department of
Education;
* RS2477 Access of Federal Lands;
* Adding the Commissioner of Department of Commerce
and Economic Development on the Resource Cabinet;
* Facilitation of Local Gravel Purchases for Work by
the Department of Transportation and Public
Facilities.
Representative Foster MOVED to report SB 30 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
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SB 30 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Department
of Commerce and Economic Development, dated 2/10/93.
CONFIRMATION HEARING: BOARD OF PUBLIC ACCOUNTANCY
Co-Chair Larson noted that the House Finance Committee has
received the Governor's appointment of the following
individuals to the Board of Public Accountancy:
Elaine Damm - Kodiak
Bruce Ogle - Anchorage
Representative Navarre MOVED that the House Finance
Committee forward the names of Elaine Damm and Bruce Ogle to
the House Floor for confirmation. There being NO OBJECTION,
it was so ordered.
ADJOURNMENT
The meeting adjourned at 1:50 p.m.
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