Legislature(2001 - 2002)
05/01/2001 02:11 PM House RES
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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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