Legislature(1995 - 1996)
01/27/1995 01:30 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 27, 1995
1:30 P.M.
TAPE HFC 95-9, Side 1, #000 - end.
TAPE HFC 95-9, Side 2, #000 - end.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:30 p.m.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown
Representatives Parnell, Grussendorf, Therriault and Kelly
were absent from the meeting.
ALSO PRESENT
John Shively, Commissioner, Department of Natural Resources;
Natural Resources; Nico Bus, Director, Support Services
Division, Department of Natural Resources; Wilson Condon,
Commissioner, Department of Revenue; Bob Baratko, Director,
Division of Administrative Services, Department of Revenue;
Tom Boutin, Division of Forestry, Department of Natural
Resources; Ken Boyd, Deputy Director, Division of Mining and
Water Management, Department of Natural Resources; Jerry
Brossia, Director, State Pipeline Coordinator's Office/Joint
Pipeline Office; John Cramer, Director, Division of
Agriculture; Marty Rutherford, Acting Commissioner,
Department of Natural Resources; Jules Tileston, Division of
Mining and Water Management, Department of Natural
Resources; Ron Swanson, Director, Division of Land,
Department of Natural Resources; Deborah Vogt, Deputy
Commissioner, Department of Revenue.
SUMMARY
AGENCY OVERVIEWS:
Department of Natural Resources
Department of Revenue
(Copies of meeting tapes and handouts are on file with the
Legislative Finance Division. Contact #465-3795).
1
DEPARTMENT OF NATURAL RESOURCES
Log # Discussion
005 NICO BUS, ACTING DIRECTOR, SUPPORT SERVICES
DIVISION, DEPARTMENT OF NATURAL RESOURCES noted
that the Acting Commissioner and other staff
members would testify via the teleconference
network from Anchorage.
079 MARTY RUTHERFORD, ACTING COMMISSIONER, DEPARTMENT
OF NATURAL RESOURCES testified via the
teleconference network from Anchorage. She
introduced staff.
098 Acting Commissioner Rutherford briefly reviewed
functions of the Department. She commented on the
responsibility of each of the department's
divisions.
103 Acting Commissioner Rutherford noted that the
Division of Oil and Gas develops and manages the
State's oil and gas leasing programs. The
Division identifies prospective lease areas. The
Division also performs geologic, economic,
environmental and social analysis and develops and
conducts hearings on proposed five year leasing
schedules and sales.
120 Acting Commissioner Rutherford observed that the
Division of Lands is the primary manager of the
State's land holdings. The Division issues and
maintains land sales and contracts, and leases
state land for recreational, commercial and
industrial use. The Division is also responsible
for stewardship of land retained in state
ownership for legislatively designated public use.
135 Acting Commissioner Rutherford reviewed the State
Pipeline Coordinator - Joint Pipeline Office. She
noted that this office monitors pipeline
activities for compliance with the right-of-way
grant, permit terms and conditions. The Office
also monitors compliance with applicable
regulations for other agencies.
144 Acting Commissioner Rutherford observed that the
Division of Forestry provides wildland fire
management and suppression; enforces the Forest
Resources and Practices Act; and manages forest
land. She noted that the Division employs 73
2
emergency fire fighter crews of 16 persons each.
161 Acting Commissioner Rutherford stated that the
Division of Parks and Outdoor Recreation develops
and manages the state park system, which is the
nation's largest. It operates more than 133 parks
which receive nearly 6 million visits annually.
She noted visitor programs operated by the
Department.
173 Acting Commissioner Rutherford reviewed the
Division of Geological and Geophysical Surveys.
She observed that the Division is primarily housed
in Fairbanks. The Division disseminates geologic
data and information pertaining to Alaska's
subsurface estate of minerals, coal, oil and gas,
construction materials, and geothermal energy.
The Division also publishes its findings in
technical reports and maps. She noted that
educators, the government, and public and private
industry use information compiled by the Division.
197 Acting Commissioner Rutherford noted that the
Division of Mining and Water Management is in the
process of combining management of mining and
water resources. She added that the Division
maintains mining and coal leases; and manages
state water resources. She further reviewed the
Division's functions. She noted that the Division
attempts to lessen litigation associated with
state navigable waters.
230 Acting Commissioner Rutherford discussed the
responsibilities of the Division of Agriculture.
She noted that the Division supports the Alaska
agricultural community through marketing,
technical assistance, education, inspection and
financing.
259 Acting Commissioner Rutherford stated that the
Support Services Division includes the Director's
Office, Recorder's Office, Land Record Information
System and the Department's Information Resource
Management System.
270 Acting Commissioner Rutherford added that the
Department provides staff support for the
Citizen's Advisory Commission on Federal Areas.
She observed that staff also supports the Exxon
Valdez Trustee Council. The Department has two
positions associated with the Mental Health Land
3
Trust Office.
292 Acting Commissioner Rutherford emphasized that the
Department has completed the statehood land
entitlement selection process. She noted that the
mental health trust issue has been resolved. She
stressed the role the Department of Natural
Resources has played in these issues.
301 Acting Commissioner Rutherford stated that the
Department hopes to stimulate revenue generation
and jobs by working with industry. The
Department will submit a five year oil and gas
lease plan.
341 Acting Commissioner Rutherford observed that the
Department has made progress in addressing the
adjudication backlog.
349 Acting Commissioner Rutherford discussed municipal
entitlements. She noted that the Department has
not been able to meet all the demands by
municipalities. Municipalities have requested
approximately 650,000 acres. She noted that the
Department will continue to prioritize the effort
to address municipal entitlements.
353 Acting Commissioner Rutherford suggested that the
institution of day park fees has been successful.
360 Acting Commissioner Rutherford stressed that the
Department will be looking at opportunities to
consolidate government and privatize functions.
372 Co-Chair Hanley asked if there is duplication or
overlap with the Department of Revenue, in the
Department of Natural Resources royalty function.
380 KEN BOYD, DEPUTY DIRECTOR, DIVISION OF OIL AND
GAS, DEPARTMENT OF NATURAL RESOURCES testified via
the teleconference network from Anchorage. He
replied that there is some duplication. He
emphasized that the overlap provides checks and
balances. The emphasis of the Department of
Natural Resources is royalty, while the Department
of Revenue addresses tax issues.
390 Co-Chair Foster noted complaints by constituents
in regards to bureaucratic requirements of
regulations for small scale miners.
4
419 JULES TILESTON, DIVISION OF MINING AND WATER
MANAGEMENT, DEPARTMENT OF NATURAL RESOURCES
testified via the teleconference network from
Anchorage. He stressed that the Department is
working on a multi-year permit to lessen the paper
work burden placed on miners.
428 Representative Martin questioned the increase in
funding for the Division of Agriculture.
431 JOHN CRAMER, DIRECTOR, DIVISION OF AGRICULTURE,
DEPARTMENT OF NATURAL RESOURCES testified via the
teleconference network from Anchorage. He
explained that the Division is facilitating the
needs of private citizens for farmland.
468 Mr. Bus explained, in response to a question by
Representative Martin, that the Department
receives reimbursement of 470 Fund dollars from
the Department of Environmental Conservation.
480 Representative Kelly referred to the Department's
role as a petroleum advocate. He questioned if
there is a duplication of effort with the
Department of Commerce and Economic Development.
491 Mr. Boyd emphasized that the Department of Natural
Resources functions as a technical advocate.
525 Representative Kelly inquired into the possibility
of housing the Division of Geological and
Geophysical Survey with the Geophysical Institute
at the University of Alaska.
549 Acting Commissioner Rutherford replied that the
possibility will be researched.
567 Representative Mulder referred to SB 308 which was
passed in the previous legislative session.
Acting Commissioner Rutherford reviewed
implementation of SB 308.
574 Representative Mulder asked what the
Administration is doing to help the timber
industry in Southeast Alaska.
581 TOM BOUTIN, DEPUTY DIRECTOR, DIVISION OF FORESTRY,
DEPARTMENT OF NATURAL RESOURCES testified via the
teleconference network from Anchorage. He noted
that discussion has taken place in regards to the
effects of Habitat Conservation Areas on long term
timber contracts.
5
590 Representative Kohring questioned the feasibility
of land disposal as a revenue source.
609 RON SWANSON, DIRECTOR, DIVISION OF LANDS,
DEPARTMENT OF NATURAL RESOURCES testified via the
teleconference network from Anchorage. He noted
that the state's land disposal program was active
in the 1980's. He observed that some programs
were successful and some were disastrous.
619 Mr. Swanson noted that the State plans to offer
approximately 500 parcels of land for sale in the
summer of 1995.
622 Co-Chair Foster noted that the oldest Recording
Office is located in Nome. He expressed the
desire to keep the Nome Recording Office
operating.
639 Representative Brown pointed out that much of the
land available for sale by the Department of
Natural Resources is not located in settled areas
and would require additional state services.
Acting Commissioner Rutherford agreed with
comments by Representative Brown. She emphasized
that the majority of parcels will be for sale in
existing subdivisions.
(Tape Change, HFC 95-9, Side 2)
DEPARTMENT OF REVENUE
020 WILSON CONDON, COMMISSIONER DESIGNATE, DEPARTMENT
OF REVENUE summarized the Department's functions.
He noted that the Department contains seven
divisions and serves several boards, commissions
and corporations. He noted that the Department's
divisions raise and collect revenue, manage the
state's financial assets, provide services to
citizens, and regulate conduct.
128 Commissioner Designate Condon provided members
with a handout detailing the Department's
Divisions (copy on file). He briefly reviewed the
divisions within the Department.
172 Commissioner Designate Condon noted that the
Department contains a Administrative Services
Division which provides services to the other
divisions, corporations and agencies.
6
202 Commissioner Designate Condon observed that the
Permanent Fund Corporation has a staff of twenty-
seven. The Alcoholic Beverage Control Board has a
staff of nine. The Municipal Bond Bank has a
staff of two. The Alaska Housing Finance
Corporation has three hundred and nineteen
positions. The Mental Health Trust Authority has
eleven staff positions.
219 Representative Foster noted the lack of inspectors
for the Alcoholic Beverage Control Board.
Commissioner Designate Condon noted that there is
only one inspector for the State of Alaska. Co-
Chair Foster confirmed that there is only one
inspector to review 1,800 establishments.
321 Co-Chair Foster noted the high amount of
uncollected child support. Commissioner Designate
Condon estimated the uncollected amount at $302
million dollars.
257 Representative Martin referred to the Department
of Revenue's Resource Book. He accentuated
combining oversight functions.
263 Representative Martin detailed increases proposed
in Governor Hickel's FY 95 proposed budget.
280 Representative Martin expressed concern that the
gaming industry is out of control.
302 Commissioner Designate Condon assured
Representative Martin that the Department would do
the best job possible in implementing the
legislature's policies and directives.
337 Co-Chair Hanley observed that the Child Support
Enforcement Division has received federal funds
for additional positions.
341 BOB BARATKO, DIRECTOR, DIVISION OD ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE stated that the
Department issued a request for proposals for
industry to prepare a five year plan for the Child
Support Enforcement Division. He noted that there
were no respondents.
346 Co-Chair Hanley pointed out that welfare reform is
a legislative priority. He emphasized the need to
increase collection on child support.
372 Co-Chair Foster noted the cost of alcohol related
services.
7
381 Co-Chair Hanley observed that the Department of
Law and the Department of Revenue are currently
acting under a Memorandum of Understanding in
regards to negotiations. He asked if Commissioner
Designate Condon anticipated a shift of
responsibilities in regards to negotiations.
Commissioner Designate Condon stated that the
division of responsibilities will be examined.
401 Commissioner Designate Condon stressed that
duplication of effort in regards to royalty and
severance tax collection is minimal. He did not
believe the two should be combined. He discussed
differences between taxing and the imposition of
royalty obligations.
443 Co-Chair Hanley expressed concern that
department's not be placed in a position to fight
over their areas of responsibility.
451 Representative Brown noted that the Department of
Revenue audits royalty collections. Commissioner
Designate Condon observed that the Department of
Natural Resources makes the policy and sets the
standards. Auditing is down by the Department of
Natural Resources. Accounting is done by the
Department of Natural Resources. Commissioner
Designate Condon and Representative Brown agreed
that the division of responsibilities should
remain the same.
469 Representative Martin expressed concern with the
cost of litigation.
483 Co-Chair Hanley noted that Representative Martin
will head the House Finance Subcommittee for the
Department of Revenue.
ADJOURNMENT
The meeting adjourned at 2:15 p.m.
8
| Document Name | Date/Time | Subjects |
|---|