03/31/2006 01:00 PM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| HB307 | |
| HB484 | |
| HB386 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 386 | TELECONFERENCED | |
| + | HB 484 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 307 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
March 31, 2006
1:20 p.m.
MEMBERS PRESENT
Representative Jay Ramras, Co-Chair
Representative Jim Elkins
Representative Kurt Olson
Representative Paul Seaton
Representative Harry Crawford
MEMBERS ABSENT
Representative Ralph Samuels, Co-Chair
Representative Carl Gatto
Representative Gabrielle LeDoux
Representative Mary Kapsner
COMMITTEE CALENDAR
HOUSE BILL NO. 307
"An Act creating the Knik River Public Use Area."
- MOVED CSHB 307(RES) OUT OF COMMITTEE
HOUSE BILL NO. 484
"An Act allowing for revenue received from issuance of
additional entry permits to be appropriated for reimbursement to
salmon fishery associations."
- MOVED CSHB 484(FSH) OUT OF COMMITTEE
HOUSE BILL NO. 386
"An Act making uniform throughout the state the deadline for
certain exploration expenditures used as credits against the
production tax on oil and gas produced from a lease or property
in the state by extending to July 1, 2010, the deadline for
those expenditures on leases or properties located north of 68
degrees, 15 minutes, North latitude."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 307
SHORT TITLE: KNIK RIVER PUBLIC USE AREA
SPONSOR(s): REPRESENTATIVE(s) STOLTZE
05/07/05 (H) READ THE FIRST TIME - REFERRALS
05/07/05 (H) RES, FIN
03/27/06 (H) RES AT 2:00 PM CAPITOL 124
03/27/06 (H) Heard & Held
03/27/06 (H) MINUTE(RES)
03/29/06 (H) RES AT 1:00 PM CAPITOL 124
03/29/06 (H) Heard & Held
03/29/06 (H) MINUTE(RES)
BILL: HB 484
SHORT TITLE: FISHERY ASSOCIATION REIMBURSEMENT
SPONSOR(s): REPRESENTATIVE(s) WILSON
02/13/06 (H) READ THE FIRST TIME - REFERRALS
02/13/06 (H) FSH, RES, FIN
03/22/06 (H) FSH AT 8:30 AM CAPITOL 124
03/22/06 (H) Moved CSHB 484(FSH) Out of Committee
03/22/06 (H) MINUTE(FSH)
03/24/06 (H) FSH RPT CS(FSH) 3DP 2NR
03/24/06 (H) DP: WILSON, ELKINS, THOMAS;
03/24/06 (H) NR: HARRIS, KAPSNER
03/31/06 (H) RES AT 1:00 PM CAPITOL 124
BILL: HB 386
SHORT TITLE: EXTEND NORTH SLOPE SEVERANCE TAX CREDIT
SPONSOR(s): REPRESENTATIVE(s) KOHRING
01/20/06 (H) READ THE FIRST TIME - REFERRALS
01/20/06 (H) O&G, RES, FIN
02/23/06 (H) O&G AT 5:00 PM CAPITOL 124
02/23/06 (H) NATURAL GAS PIPELINE INCENTIVE/ GAS TAX
03/02/06 (H) O&G AT 5:00 PM CAPITOL 124
03/02/06 (H) NATURAL GAS PIPELINE INCENTIVE/ GAS TAX
03/07/06 (H) O&G AT 5:30 PM CAPITOL 124
03/07/06 (H) Scheduled But Not Heard
03/08/06 (H) O&G AT 6:00 PM CAPITOL 124
03/08/06 (H) Scheduled But Not Heard
03/16/06 (H) O&G AT 5:00 PM CAPITOL 124
03/16/06 (H) Moved CSHB 386(O&G) Out of Committee
03/16/06 (H) MINUTE(O&G)
03/17/06 (H) O&G RPT CS(O&G) NT 1DP 3NR
03/17/06 (H) DP: KOHRING;
03/17/06 (H) NR: SAMUELS, DAHLSTROM, ROKEBERG
03/31/06 (H) RES AT 1:00 PM CAPITOL 124
WITNESS REGISTER
REPRESENTATIVE BILL STOLTZE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions about HB 307 as sponsor.
DICK MYLIUS, Director
Division of Mining, Land and Water
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: Answered questions about HB 307.
LINDA MILLER, Staff
to Representative Peggy Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 484 on behalf of Representative
Wilson, sponsor.
FRANK HOMAN, Chair
Commercial Fisheries Entry Commission
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 484.
REPRESENTATIVE VIC KOHRING
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 386 as sponsor.
CHARISSE MILLETT, Staff
to Representative Kohring
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions on HB 386.
ACTION NARRATIVE
CO-CHAIR JAY RAMRAS called the House Resources Standing
Committee meeting to order at 1:20:48 PM. Representatives
Seaton, Elkins, Crawford, Olson and Ramras were present at the
call to order.
HB 307-KNIK RIVER PUBLIC USE AREA
CO-CHAIR RAMRAS announced that the first order of business would
be HOUSE BILL NO. 307, "An Act creating the Knik River Public
Use Area."
REPRESENTATIVE SEATON moved Amendment 1 as follows [original
punctuation provided]:
Page 1, line 14
Following "vehicle"
Insert "and non-motorized recreation"
Renumber accordingly.
REPRESENTATIVE ELKINS objected for purposes of discussion.
REPRESENTATIVE SEATON said Amendment 1 adds non-motorized
recreational opportunities to show that the legislation promotes
existing and all types of recreational uses.
REPRESENTATIVE ELKINS withdrew his objection. Hearing no
further objections, Amendment 1 passed.
REPRESENTATIVE SEATON moved Amendment 2, as follows [original
punctuation provided]:
Page 2, lines 18
Following "(d)"
Delete "With the assistance of the United States
Army Corps of Engineers,"
Renumber accordingly.
REPRESENTATIVE ELKINS objected for purposes of discussion.
1:23:24 PM
REPRESENTATIVE SEATON said Amendment 2 deletes the phrase "Army
Corps of Engineers" because it might bring forward GIS maps that
may interfere with the actual usage of the area. He noted that
a GIS mapping system in Homer, Alaska classified everything as a
wetland. The amendment does not prevent a wetland from being
identified, "it just gets us out of the process of having this
map control all our history."
REPRESENTATIVE BILL STOLTZE noted that the commissioner will
still have the ability to designate wetlands for habitat.
REPRESENTATIVE SEATON stated that the intent is to allow the
commissioner to use any resources desired, but the state won't
get a GIS map imposed on it that delineates everything as a
wetland, which would then make the state prove that each parcel
is not wetlands.
REPRESENTATIVE STOLTZE said Amendment 2 maintains the spirit of
the bill.
REPRESENTATIVE ELKINS withdrew his objection. Hearing no
further objections, Amendment 2 passed.
1:26:47 PM
REPRESENTATIVE SEATON offered Amendment 3 as follows [original
punctuation provided]:
Page 3, line 6
Following "activities"
Insert "as compatible with purposes specified in
AS 41.23.180"
Renumber accordingly.
REPRESENTATIVE ELKINS objected for purposes of discussion.
REPRESENTATIVE SEATON said Amendment 3 inserts language to make
sure the commissioner is directed to allow uses consistent with
the purposes of the act, which were to provide for both
vehicular and non-motorized activities
REPRESENTATIVE ELKINS removed his objection. Hearing no further
objections, Amendment 3 passed.
REPRESENTATIVE SEATON asked for further clarification on the
definition of trails.
DICK MYLIUS, Director, Division of Mining, Land and Water,
Department of Natural Resources (DNR), said trails are all
different, so it would be difficult to define one. He said
during the planning process DNR would meet with all the user
groups and try to identify what they consider important trails.
"A trail to a mountain biker is a lot different than a trail for
somebody on an [off road vehicle]."
1:28:57 PM
REPRESENTATIVE SEATON asked if any track would need to be
designated as a trail or if the planning process would look only
at well-used trails.
MR. MYLIUS said DNR would have the flexibility to identify the
important trails for different groups, but it would not be
required to designate any and every trail. The plan will have
the flexibility to deal with that issue, he said.
1:30:04 PM
REPRESENTATIVE SEATON said he wanted to make sure the management
plan process had that kind of flexibility.
REPRESENTATIVE STOLTZE said he had a conceptual amendment for
protecting cultural properties. He said he wants to refine the
language and take it to the House Finance Committee, making sure
it is covered in the legislation but is not overly broad.
REPRESENTATIVE CRAWFORD said he supported that.
1:31:07 PM
REPRESENTATIVE SEATON moved to report HB 307 as amended out of
committee with individual recommendations and the accompanying
fiscal notes. Hearing no objections, CSHB 307(RES) passed out
of the House Resources Standing Committee.
1:31:27 PM
HB 484-FISHERY ASSOCIATION REIMBURSEMENT
CO-CHAIR RAMRAS announced that the next order of business would
be HOUSE BILL NO. 484, "An Act allowing for revenue received
from issuance of additional entry permits to be appropriated for
reimbursement to salmon fishery associations."
1:31:53 PM
LINDA MILLER, Staff to Representative Peggy Wilson, sponsor of
HB 484, said the Alaska Legislature created salmon fishery
associations in 2002 to encourage fleet reduction in the
fisheries. She said associations may be formed throughout the
state to facilitate a permit buy-back program, which allows a
group of fishermen to buy back permits in their fishery. The
Southeast Alaska Seiners formed an association for that purpose,
but a concern was raised by the seiners of possible future
action by the Commercial Fisheries Entry Commission (CFEC) to
issue and sell more permits. The group asked for a guarantee
that their money would be reimbursed if that ever happened. She
said HB 484 does that. The House Special Committee on Fisheries
substitute (CS) to HB 484 contains housekeeping language.
MS. MILLER said HB 484 makes it clear that in the unlikely event
that the CFEC sells permits that were previously purchased by an
association, the legislature may appropriate money back to the
association. The change from the original version to the CS
makes it clear that the association that actually did the buy-
back is the one that may receive the payback, she stated. She
said that the state has a responsibility to monitor each limited
entry fishery. In the event that more permits are needed
through a CFEC determination or a court action, the provisions
of HB 484 would apply, she concluded.
1:35:26 PM
REPRESENTATIVE SEATON said on page 1, lines 8 and 9, the intent
is to reimburse an association [only for what was paid]. If the
permits sell for more than the original purchase price, the
association would be reimbursed for only the original amount.
MS. MILLER said that is correct.
REPRESENTATIVE ELKINS asked why the language is "may" instead of
"shall," and what assures that it will be done.
MS. MILLER said it was based on constitutional requirements.
1:37:17 PM
REPRESENTATIVE ELKINS said he can see it not happening.
REPRESENTATIVE SEATON suggested that dedicated funds are not
permitted under the constitution.
MS. MILLER believes that is correct.
1:38:09 PM
REPRESENTATIVE ELKINS said it doesn't say it is coming out of
dedicated funds.
1:38:38 PM
FRANK HOMAN, Chair, Commercial Fisheries Entry Commission, said
Ms. Miller summed it up. The "may" is typical of legislative
language to avoid a dedicated-fund situation, he explained,
because the legislature always has the last word on any
appropriation.
1:39:41 PM
REPRESENTATIVE SEATON wanted confirmation that if permits were
sold for more than the associations purchased them for, the
associations would be reimbursed only for their costs, and the
remaining money would stay in the state.
MR. HOMAN said that was his understanding.
1:40:15 PM
JERRY MCCUNE, United Fishermen of Alaska, said there has always
been the nagging question of what would happen if a court
ordered permits to be put back into a fishery. There is only
one association at this time, the Southeast Alaska Seiners
Association, but others might be formed. If there were permits
re-issued, then the association could get some of their money
back under this bill, he stated. The amount would be determined
by the legislature, he noted. He gave the example that
aquaculture association money goes into the general fund and has
to be appropriated back out by the legislature.
1:42:09 PM
REPRESENTATIVE SEATON asked Mr. McCune if it was his
understanding that if the state sold the permits for many times
the amount of what the association paid, the amount being
reimbursed would only be the amount the association paid.
1:42:48 PM
MR. MCCUNE said it would only be the money that the association
put out, and the rest would go into the general fund.
1:43:29 PM
REPRESENTATIVE ELKINS said he wished the bill were stronger, but
it is fine.
1:43:50 PM
CO-CHAIR RAMRAS said the committee is missing four members and
asked if the bill should be held.
REPRESENTATIVE SEATON said Representative LeDoux is Co-Chair of
the House Special Committee on Fisheries, which is where the CS
came from.
1:44:38 PM
REPRESENTATIVE OLSON moved to report CSHB 484(FSH) out of
committee with individual recommendations and the accompanying
fiscal notes. Hearing no objections, it was so ordered.
HB 386-EXTEND NORTH SLOPE SEVERANCE TAX CREDIT
1:45:12 PM
CO-CHAIR RAMRAS announced that the final order of business would
be HOUSE BILL NO. 386, "An Act making uniform throughout the
state the deadline for certain exploration expenditures used as
credits against the production tax on oil and gas produced from
a lease or property in the state by extending to July 1, 2010,
the deadline for those expenditures on leases or properties
located north of 68 degrees, 15 minutes, North latitude."
The committee took an at-ease from 1:45 p.m. to 2:02:23 PM.
REPRESENTATIVE VIC KOHRING said HB 386 is the same as what the
House Resources Standing Committee put in the committee
substitute (CS) [for HB 488]. He said it is not the same in its
entirety, but it is the same with regard to the incentives for
the industry. "We tried to make that bill better by rolling in,
in the form of the CS, some things that essentially sweeten the
pot and made it better for the industry in terms of incentives."
He said the incentives included providing tax credits against
not just the production tax, but against bonus bids, lease
rental payments, property taxes, corporate tax liability, "and
so forth." He said that was all part of the CS, and he is
bringing this bill before the committee "because of the
volatility of the whole situation." He said there is no
guarantee that the provisions in the CS will pass, and, thus, HB
386 can pass on its own.
2:04:19 PM
REPRESENTATIVE KOHRING said HB 386 will provide tax credits to
offset taxes on oil and gas produced in the state, and those
credits can be sold to other companies. He stated that the
amount of expenses that could be claimed are up to 40 percent,
"not that the full 40 percent would be granted; it will be at
the discretion of the department to provide once they have
looked at the application and examined what credits are being
applied for." He said it has been a fairly successful program
in encouraging more development in marginal fields. He said
there are five applications pending for a total of $15.1 million
in credits. There are seven that have already been granted, he
stated. "It's not like it's a statute that we put on the books
that's just been sitting there unused, as some bills end up
being. This is one that has actually been used by the
industry." He said small companies feel that this bill will
make a difference in terms of development in the state, and he
noted there are ten letters in support, including one from
Anadarko Petroleum Corporation. The bill "enjoys strong support
from those companies," and he asked who would not support a tax
credit to their industry.
2:06:28 PM
REPRESENTATIVE KOHRING spoke of support from the Alaska Oil and
Gas Conservation Commission and other oil companies.
2:06:50 PM
REPRESENTATIVE CRAWFORD said he has a concern of expanding the
credits to property taxes because there are boroughs and
municipalities that really depend on those taxes.
REPRESENTATIVE KOHRING deferred to Ms. Millett.
CHARISSE MILLETT, Staff to Representative Kohring, said the bill
only applies to state property taxes, not municipal taxes. She
drew attention to page 2, line 17.
2:08:14 PM
REPRESENTATIVE OLSON said with all the work the committee has
done on this issue, he would prefer that the full committee look
at it. He said he would probably support it, but it would be a
disservice to the other members [to vote on it now].
2:09:26 PM
REPRESENTATIVE ELKINS said he agrees with Representative Olson.
He will support it, but it is a good idea to wait.
CO-CHAIR RAMRAS said he shares that opinion.
REPRESENTATIVE KOHRING said he will be happy to come back.
REPRESENTATIVE OLSON said the committee might lose some friends
if it cut some members out of the process.
[HB 386 was held over]
2:11:23 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 2:11 PM.
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