Legislature(2001 - 2002)

05/01/2001 02:11 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE RESOURCES STANDING COMMITTEE                                                                             
                          May 1, 2001                                                                                           
                           2:11 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Drew Scalzi, Co-Chair                                                                                            
Representative Hugh Fate, Vice Chair                                                                                            
Representative Joe Green                                                                                                        
Representative Mike Chenault                                                                                                    
Representative Lesil McGuire                                                                                                    
Representative Gary Stevens                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Beverly Masek, Co-Chair                                                                                          
Representative Mary Kapsner                                                                                                     
Representative Beth Kerttula                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 185                                                                                                              
"An Act relating to fees for  certain uses of state water and the                                                               
accounting  and   appropriation  of   those  fees;   relating  to                                                               
authorizations  for  the temporary  use  of  state water;  making                                                               
other amendments to  the Alaska Water Use Act;  and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSHB 185(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 185                                                                                                                  
SHORT TITLE:ALASKA WATER USE ACT & FEES                                                                                         
SPONSOR(S): RLS BY REQUEST OF THE GOVERNOR                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
03/14/01     0591       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
03/14/01     0591       (H)        RES, FIN                                                                                     
03/14/01     0591       (H)        FN1: (DNR)                                                                                   
03/14/01     0591       (H)        GOVERNOR'S TRANSMITTAL LETTER                                                                
04/20/01                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
04/20/01                (H)        Heard & Held                                                                                 
04/20/01                (H)        MINUTE(RES)                                                                                  
05/01/01                (H)        RES AT 1:00 PM CAPITOL 124                                                                   
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CAROL CARROLL, Director                                                                                                         
Division of Support Services                                                                                                    
Department of Natural Resources                                                                                                 
400 Willoughby Avenue 5th floor                                                                                                 
Juneau, Alaska 99801-3566                                                                                                       
POSITION STATEMENT:   Discussed the proposed  one-year sunset for                                                               
Sections 2, 6, and 7.                                                                                                           
                                                                                                                                
SY NEELEY                                                                                                                       
(No address provided.)                                                                                                          
POSITION STATEMENT:  Expressed concerns with HB 241.                                                                            
                                                                                                                                
BOB LOEFFLER, Director                                                                                                          
Division of Mining, Land and Water                                                                                              
Department of Natural Resources                                                                                                 
550 W 7th Avenue,  Suite 1070                                                                                                   
Anchorage, Alaska 99501-3579                                                                                                    
POSITION STATEMENT:  Answered questions.                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 01-46, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CO-CHAIR  DREW   SCALZI  called  the  House   Resources  Standing                                                               
Committee meeting to order at  2:11 p.m.  Representatives Scalzi,                                                               
Fate, Green,  McGuire, and  Stevens were present  at the  call to                                                               
order.   Representative Chenault  arrived as  the meeting  was in                                                               
progress.                                                                                                                       
                                                                                                                                
HB 185-ALASKA WATER USE ACT & FEES                                                                                            
                                                                                                                                
CO-CHAIR SCALZI announced that the  only order of business before                                                               
the committee  would be HOUSE BILL  NO. 185, "An Act  relating to                                                               
fees  for certain  uses of  state  water and  the accounting  and                                                               
appropriation of  those fees; relating to  authorizations for the                                                               
temporary  use of  state water;  making other  amendments to  the                                                               
Alaska Water Use Act; and providing for an effective date."                                                                     
                                                                                                                                
Number 0072                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  moved  to  adopt  CSHB  185,  Version  22-                                                               
GH1087\F, Luckhaupt, 4/30/01, as  the working document before the                                                               
committee.   There being no  objection, Version F was  before the                                                               
committee.                                                                                                                      
                                                                                                                                
Number 0096                                                                                                                     
                                                                                                                                
CAROL   CARROLL,   Director,   Division  of   Support   Services,                                                               
Department  of  Natural  Resources   (DNR),  explained  that  the                                                               
committee  adopted [Version  C]  at the  prior  meeting [held  on                                                               
4/20/01].   She related  her belief that  the committee  wants to                                                               
implement  a  one-year  sunset  on  prospective  temporary  water                                                               
permits  so  that  other  issues  can be  worked  on  during  the                                                               
interim.   By doing  such, there  would be  a one-year  sunset on                                                               
Sections  2, 6,  and  7.   Such action  would  allow the  receipt                                                               
portion  to  go forward  and  allow  the temporary  permits  [the                                                               
division]  authorized in  the past  to be  authorized.   She said                                                               
that she would appreciate the committee's support.                                                                              
                                                                                                                                
CO-CHAIR SCALZI  asked if  anyone else wished  to testify  on the                                                               
CS.  There being no one, the bill was before the committee.                                                                     
                                                                                                                                
Number 0255                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN asked  if  there is  any  problem with  the                                                               
fiscal note if this bill were forwarded.                                                                                        
                                                                                                                                
MS.  CARROLL informed  the committee  that the  Finance Committee                                                               
has  discussed this  fiscal note  and has  allocated $300,000  in                                                               
DNR's budget  this year  in order  to deal  with the  first year.                                                               
After the first year, the fees  begin to replace the general fund                                                               
in later years.                                                                                                                 
                                                                                                                                
Number 0381                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  moved  to  report CSHB  241,  Version  22-                                                               
GH1087\F, Luckhaupt,  4/30/01, out  of committee  with individual                                                               
recommendations and the accompanying fiscal note.                                                                               
                                                                                                                                
CO-CHAIR SCALZI noted that DNR had requested an amendment.                                                                      
                                                                                                                                
REPRESENTATIVE GREEN withdrew his motion.                                                                                       
                                                                                                                                
REPRESENTATIVE  FATE  moved that  the  CS  be amended  such  that                                                               
Sections 2,  6, and  7 be  changed to  reflect a  one-year sunset                                                               
clause.  [This motion was restated later in the meeting.]                                                                       
                                                                                                                                
The committee took a brief at-ease from 2:17 p.m. to 2:18 p.m.                                                                  
                                                                                                                                
CO-CHAIR  SCALZI  announced  that the  committee  had  improperly                                                               
adopted Version F.                                                                                                              
                                                                                                                                
Number 0545                                                                                                                     
                                                                                                                                
REPRESENTATIVE  STEVENS  moved  that the  committee  rescind  its                                                               
action in adopting  Version F.  There being no  objection, it was                                                               
so ordered.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  moved  to   adopt  CSHB  185,  Version  22-                                                               
GH1087\C, Luckhaupt, 4/18/01, as  the working document before the                                                               
committee.  There being no  objection, Version C was again before                                                               
the committee.                                                                                                                  
                                                                                                                                
Number 0675                                                                                                                     
                                                                                                                                
SY  NEELEY testified  via teleconference.   Mr.  Neeley expressed                                                               
concern  with the  proposed fee  structure, a  sliding scale  fee                                                               
structure.  Mr.  Neeley turned to the exemption  of 1,500 gallons                                                               
of water per  day for residential use and asked  if that referred                                                               
to one  water well for one  house.  He informed  the committee of                                                               
his situation with  a home owners association in  which there are                                                               
six houses  hooked up to  one water well.   He asked  whether his                                                               
situation would  fall under  the [1,500  gallons per  day] limit,                                                               
and if so, what  will the fee be.  Mr.  Neeley expressed the need                                                               
to have some definition as to what will actually be charged.                                                                    
                                                                                                                                
CO-CHAIR  SCALZI noted  that [the  committee]  also has  concerns                                                               
about that.   He pointed out that HB 185  is [the companion bill]                                                               
to SB 139.  Co-Chair  Scalzi also noted that the [aforementioned]                                                               
amendment regarding  one-year sunset  clauses for Sections  2, 6,                                                               
and 7 will probably address Mr. Neeley's concerns.                                                                              
                                                                                                                                
MR.  NEELEY expressed  the need  to  have more  meetings on  this                                                               
topic  this summer.   Mr.  Neeley reiterated  his question  as to                                                               
whether, in  his situation, [the  association's] water  use would                                                               
be considered residential use or commercial use.                                                                                
                                                                                                                                
Number 1000                                                                                                                     
                                                                                                                                
BOB  LOEFFLER,  Director, Division  of  Mining,  Land and  Water,                                                               
Department  of  Natural  Resources, clarified  that  the  current                                                               
version of  the bill wouldn't  propose a sliding scale  water use                                                               
fee.   The current version of  HB 185 says that  DNR would charge                                                               
"only   the  reasonable,   direct   cost   of  an   application."                                                               
Therefore, this  bill sets limits as  to what DNR can  charge and                                                               
DNR can only charge those costs outlined in AS 37.10.                                                                           
                                                                                                                                
MR. NEELEY  related his understanding  then that this would  be a                                                               
one-time  fee paid  at the  time the  well is  drilled and  there                                                               
would be no other fees.                                                                                                         
                                                                                                                                
MR. LOEFFLER explained  that there is a  one-time application fee                                                               
and an  [annual] $50  administrative service  fee.   However, the                                                               
language makes  it clear  that the  department cannot  raise that                                                               
[administrative service] fee.                                                                                                   
                                                                                                                                
MR.  NEELEY surmised  then that  after the  application has  been                                                               
made and  the [one-time] fee  paid, then  there will be  no other                                                               
fee save the $50 administrative service fee each year.                                                                          
                                                                                                                                
MR. LOEFFLER replied yes.                                                                                                       
                                                                                                                                
MR. NEELEY said that satisfies his concerns.                                                                                    
                                                                                                                                
CO-CHAIR SCALZI  noted that  this is  a temporary  [solution] and                                                               
[the  committee]  will  continue  to work  with  DNR  during  the                                                               
interim.                                                                                                                        
                                                                                                                                
Number 1225                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  moved  to adopt  the  previously  mentioned                                                               
amendment that would change Sections 2,  6, and 7 to have a [one-                                                               
year] sunset clause  of July 1, 2002.  There  being no objection,                                                               
it was so ordered.                                                                                                              
                                                                                                                                
Number 1285                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  moved  to  report  CSHB  185,  Version  22-                                                               
GH1087\C, Luckhaupt,  4/18/01, as  amended out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection,  CSHB 185(RES)  was reported  from the                                                               
House Resources Standing Committee.                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Resources Standing Committee meeting was adjourned at 2:33 p.m.                                                                 

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