Legislature(2015 - 2016)BARNES 124
04/11/2016 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 170 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
April 11, 2016
1:22 p.m.
MEMBERS PRESENT
Representative Benjamin Nageak, Co-Chair
Representative David Talerico, Co-Chair
Representative Bob Herron
Representative Craig Johnson
Representative Kurt Olson
Representative Paul Seaton
Representative Andy Josephson
Representative Geran Tarr
Representative Mike Chenault (alternate)
MEMBERS ABSENT
Representative Mike Hawker, Vice Chair
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 170(RES)
"An Act authorizing the Department of Natural Resources,
division of geological and geophysical surveys, to collect fees
for facilities, equipment, products, and services; relating to
accounting for certain program receipts; and providing for an
effective date."
- MOVED CSSB 170(RES) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 170
SHORT TITLE: DNR FEES FOR GEOLOGICAL SERVICES
SPONSOR(s): SENATOR(s) GIESSEL
02/05/16 (S) READ THE FIRST TIME - REFERRALS
02/05/16 (S) RES, FIN
02/29/16 (S) RES AT 3:30 PM BUTROVICH 205
02/29/16 (S) Moved CSSB 170(RES) Out of Committee
02/29/16 (S) MINUTE (RES)
03/02/16 (S) RES RPT CS 6DP SAME TITLE
03/02/16 (S) DP: GIESSEL, COSTELLO, WIELECHOWSKI,
COGHILL, MICCICHE, STOLTZE
03/17/16 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/17/16 (S) Heard & Held
03/17/16 (S) MINUTE (FIN)
04/04/16 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/04/16 (S) Moved CSSB 170(RES) Out of Committee
04/04/16 (S) MINUTE (FIN)
04/06/16 (S) FIN RPT CS (RES) 5DP 1NR
04/06/16 (S) DP: KELLY, MACKINNON, MICCICHE,
DUNLEAVY, HOFFMAN
04/06/16 (S) NR: OLSON
04/07/16 (S) TRANSMITTED TO (H)
04/07/16 (S) VERSION: CSSB 170(RES)
04/08/16 (H) READ THE FIRST TIME - REFERRALS
04/08/16 (H) RES, FIN
04/09/16 (H) RES AT 9:00 AM BARNES 124
04/09/16 (H) -- MEETING CANCELED --
04/11/16 (H) RES AT 1:00 PM BARNES 124
WITNESS REGISTER
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented CSSB 170(RES) as prime sponsor.
AKIS GIALOPSOS, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Giessel, sponsor,
provided a sectional analysis of CSSB 170(RES).
STEVEN MASTERMAN, Director, State Geologist
Division of Geological & Geophysical Surveys
Department of Natural Resources (DNR)
Fairbanks, Alaska
POSITION STATEMENT: Answered questions regarding CSSB 170(RES).
ACTION NARRATIVE
1:22:17 PM
CO-CHAIR DAVID TALERICO called the House Resources Standing
Committee meeting to order at 1:22 p.m. Representatives Olson,
Johnson, Josephson, Tarr, Herron, Chenault (alternate), Nageak,
and Talerico were present at the call to order. Representative
Seaton arrived as the meeting was in progress.
SB 170-DNR FEES FOR GEOLOGICAL SERVICES
1:23:13 PM
CO-CHAIR TALERICO announced that the only order of business is
CS FOR SENATE BILL NO. 170(RES), "An Act authorizing the
Department of Natural Resources, division of geological and
geophysical surveys, to collect fees for facilities, equipment,
products, and services; relating to accounting for certain
program receipts; and providing for an effective date."
1:23:31 PM
SENATOR CATHY GIESSEL, Alaska State Legislature, explained that
the Geologic Materials Center (GMC) is located in Anchorage, and
that core samples are voluntarily donated to the GMC by some
companies, the U.S. Army Corps of Engineers, U.S. Bureau of
Ocean Energy Management, and various other federal and state
entities. Core samples originate from oil and gas exploration
or mining projects, and geologists can go to the GMC and read
these rocks as though they were books and this information may
lead to future discoveries of Alaska's resources. Previously,
the Geologic Materials Center was located in Eagle River where
the core samples were kept in conexes, which are unheated and
unlit metal boxes outside in the weather and the cores were
deteriorating. The new facility in Anchorage provides viewing
rooms wherein companies or explorers review the rocks. This
bill would enable the Department of Natural Resources (DNR),
Division of Geologic and Geophysical Surveys, to charge folks to
review the core samples, because under current statute there is
not the ability to receive the receipts.
1:25:55 PM
AKIS GIALOPSOS, Staff, Senator Cathy Giessel, Alaska State
Legislature, on behalf of Senator Giessel, sponsor, provided a
sectional analysis of CSSB 170(RES). He paraphrased from the
following written sectional analysis [original punctuation
provided]:
*Section 1. Provides that fees collected by the
Department of Natural Resources (department) under AS
41.08.045, added by bill section 3, will be accounted
for separately and that appropriations from these fees
are not made from the unrestricted general fund.
*Section 2. Conforms AS 41.08.030 to the changes made
to AS 41.08 by section 3 of the bill.
*Section 3. Adds a new section to AS 41.08 permitting
the department's division of geological and
geophysical surveys to charge and collect fees for
facilities, equipment, products, or services that the
division offers. Institutes a fee waiver for students
using the facilities, equipment, products or services
for educational purposes.
*Section 4. Amend uncodified law to permit the
department to adopt regulations necessary to implement
changes made by the Act.
*Section 5. Makes section 4 effective immediately.
*Section 6. Gives sections 1-3 an effective date of
July 1, 2016.
MR. GIALOPSOS explained that under existing statute the division
can charge for the purchase of maps and certain materials, but
that revenue goes directly into the general fund. Because these
proceeds eventually go into the receipt authority account,
[Section 2] deletes to conform to Section 3. Section 3 is the
heart of the bill - it creates the new section in AS 41.08 that
empowers the division to enable a fee structure. It was also in
this section that the committee substitute was created, pursuant
to an amendment offered by Senator Wielechowski and unanimously
adopted, to explicitly waive fees for any student utilizing the
facilities for educational purposes. Section 4 amends and
codifies the law and permits the department to adopt regulations
to conform to Section 3 of the bill. Section 5 makes Section 4
effective immediately and Section 6 makes July 1, 2016, the
effective date of the Act.
1:27:58 PM
REPRESENTATIVE HERRON requested Mr. Masterman to put on record
what the life expectancy of this facility will be when it
reaches full capacity.
STEVEN MASTERMAN, Director & State Geologist, Division of
Geological & Geophysical Surveys, Department of Natural
Resources (DNR) advised that, initially, the facility was about
one-third full from the collection that was held in Eagle River.
Since that time the GMC has received the U.S. Geological
Survey's (USGS) entire collection, a large donation from "BP"
and "ConocoPhillips," as well as several sizable but smaller
donations from mining companies. Currently, the facility is
about 42-43 percent full. At the current rate, there is
approximately one decade's worth of space left before more
shelves will be required or expansion is considered.
1:29:47 PM
REPRESENTATIVE JOHNSON asked the cost for someone to review the
core samples.
MR. GIALOPSOS deferred to Dr. Masterman to answer the question,
but noted that Dr. Masterman has discussed a fee structure
within the median of other facilities in North America.
DR. MASTERMAN replied that a national review was performed of
fee structures from other facilities charging for this type of
service. There are 10 facilities that are either close to or
bigger than Alaska's facility and, once the Alaska facility is
charging fees, then 9 of the 10 facilities will be charging
fees. Alaska's facility would be priced in the mid-point of
those other fee schedules such that the fees would generate
revenue but not detract from people using the facility. The
division is cognizant of having realistic fees.
REPRESENTATIVE JOHNSON inquired as to the specific number.
DR. MASTERMAN responded that the draft fee schedule is prepared,
but must be reviewed by the commissioner's office and the
Department of Law and will then go out for public comment before
the division promulgates regulations. An example was provided
in the bill packet wherein an individual goes to the Geologic
Materials Center (GMC), pulls a collection of core boxes off the
shelf and asks that some samples be taken. The [proposed] price
in this scenario would be $250, which is at the lower end of the
price range for the other facilities nationally.
1:32:23 PM
REPRESENTATIVE TARR surmised that some of the donations are from
the same companies that may come in to the GMC to use the
materials later. She asked whether any push back is expected
from these companies when they ask to see the samples later.
1:32:40 PM
MR. GIALOPSOS answered it is Senator Giessel's understanding, in
speaking with the stakeholder groups and the division, that it
is the norm for the entity to pay full fees whether or not that
entity has donated those samples. He advised that this actually
would prevent a person from being charged to donate.
DR. MASTERMAN confirmed there is not a charge for people to
donate materials. But, if companies wish to store their samples
at the facility, the GMC will accept the samples, and then
charge for the viewing of those samples. Alternatively, a
company can have its own facility and maintain its samples in a
confidential and private manner, but obviously the company would
have to foot the bill for its own facility. Therefore, there is
substantial advantage to industry to house these materials in
this facility.
1:34:17 PM
CO-CHAIR TALERICO opened public testimony and then closed it
after ascertaining that no one wished to testify.
1:34:44 PM
REPRESENTATIVE CHENAULT drew attention to the fiscal note and
requested an explanation of the public building fund (PBF). He
observed from the fiscal note that the cost would be $400,000 to
allow the GMC facility to enter into the PBF.
DR. MASTERMAN replied that the division's plan is to enter into
the public building fund, which is a fund that provides for the
long-term maintenance and operation of a facility such as this.
Items that do not fall under GMC's operating budget, such as
roof or furnace replacement, would be handled by the public
building fund and amortized over the life of the improvement or
maintenance item. Currently, GMC cannot afford to enter into
the PBF because its operating budget does not allow it;
therefore, the bill proposes a fee schedule to generate revenue
that will provide for the long-term maintenance and operation of
the facility. In the event the facility does not enter into the
PBF, if the roof required replacement or there was a large
maintenance item, [the division] would then have to request
funding from the legislature for those items. The bill would
provide a mechanism to maintain the building over the long term.
1:36:55 PM
REPRESENTATIVE CHENAULT referred to the 2/29/16 question-and-
answer document included in the committee packet titled, "FAQS
related to Senate Bill 170." Turning to page 3 of the document
and the question, How do the operations of the GMC compare to
other core facilities of its kind in other states?" he observed
in the answer that there are ten facilities over 25,000 square
feet and that Alaska's GMC is 100,000 square feet. He asked
whether the figure of 100,000 is correct.
DR. MASTERMAN confirmed the GMC's interior space is 100,000
square feet and noted it is one of the largest in the nation.
REPRESENTATIVE TARR pointed out that this facility is in her
district and has been a great addition because it is no longer a
big empty box store and its full-time employees are frequenting
local businesses for lunch. She offered her appreciation for
the GMC's presence.
1:38:26 PM
CO-CHAIR NAGEAK moved to report CSSB 170(RES) out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, CSSB 170(RES) was reported
from the House Resources Standing Committee.
1:39:08 PM
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 1:39 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB0170-Version A.PDF |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Version W.PDF |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Sponsor Statement.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Supporting Document-Letter-DNR-DGGS.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Supporting Document-FAQs from DNR-DGGS.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Sectional Analysis-Version W.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Fiscal Note-DNR-DGGS-3-11-2016.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-Explanation of Changes-Version A to Version W.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |
| SB0170-List of Presenters.pdf |
HRES 4/11/2016 1:00:00 PM |
SB 170 |