Legislature(1995 - 1996)
03/25/1996 03:38 PM Senate RES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
March 25, 1996
3:38 p.m.
MEMBERS PRESENT
Senator Loren Leman, Chairman
Senator Drue Pearce, Vice Chairman
Senator Steve Frank
Senator Rick Halford
Senator Robin Taylor
Senator Georgianna Lincoln
Senator Lyman Hoffman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 201
"An Act relating to the employment of emergency fire-fighting
personnel by the commissioner of natural resources."
SENATE BILL NO. 223
"An Act approving an interim classification by the commissioner of
natural resources closing certain land within the Situk River
system to new mineral entry; and providing for an effective date."
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 397(FIN)
"An Act relating to the fisheries resource landing tax and to the
seafood marketing assessment; and providing for an effective date."
CS FOR HOUSE BILL NO. 58(RES)
"An Act establishing the Chickaloon Flats Critical Habitat Area."
SENATE BILL NO. 247
"An Act relating to the fish and game fund; amending Rules 79(b)
and 82(b)(2), Alaska Rules of Civil Procedure; and providing for an
effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 201 - See Resources minutes dated 3/18/96.
SB 223 - See Resources minutes dated 3/20/96.
HB 397 - No previous action to record.
HB 58 - See State Affairs minutes dated 2/22/96.
SB 247 - See Resources minutes dated 3/20/96.
WITNESS REGISTER
Nico Bus
Division of Support Services
Department of Natural Resources
400 Willoughby Ave.
Juneau, AK 99801-1724
POSITION STATEMENT: Offered information on fiscal note on
SB 201
Amy Daugherty, Staff to Representative Austerman
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on CSSSHB 397(FIN)
Neil Slotnick, Assistant Attorney General
Department of Law
P.O. Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Offered information on CSSSHB 397(FIN)
Bob Bartholomew, Deputy Director
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, AK 99811-0420
POSITION STATEMENT: Testified in support of CSSSHB 397(FIN)
Representative Con Bunde
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Prime Sponsor of CSHB 58(RES)
Geron Bruce
Legislative Liaison
Department of Fish & Game
P.O. Box 25526
Juneau, AK 99811-5526
POSITION STATEMENT: Testified in support of CSHB 58(RES)
and testified on SB 247
ACTION NARRATIVE
TAPE 96-35, SIDE A
Number 001
SB 201 FIRE FIGHTING PERSONNEL EMPLOYMENT
CHAIRMAN LEMAN called the Senate Resources Committee meeting to
order at 3:38 p.m. He brought SB 201 before the committee as the
first order of business. He noted that at the previous hearing on
the bill there was a question relating to the fiscal note, and that
a new fiscal note was provided by the department.
NICO BUS , Director, Division of Support Services, Department of
Natural Resources, said at the last meeting the department
testified that this money had already been appropriated and is in
the capital budget. The new fiscal note shows the receipts coming
in as CIP receipts from this appropriation, which is already on the
books, in a component to be established. He said this way there
is no commingling with fire suppression funding, and it is real
clear and easy to track.
There being no further testimony on SB 201, CHAIRMAN LEMAN asked
for the pleasure of the committee.
SENATOR LINCOLN moved SB 201 and the accompanying fiscal note be
passed out of committee with individual recommendations. Hearing
no objection, it was so ordered.
SB 223 APPROVE CLOSING SITUK TO MINERAL ENTRY
CHAIRMAN LEMAN brought SB 223 before the committee as the next
order of business. He noted there was a proposed amendment
submitted by the Alaska Miners Association for the committee's
approval.
SENATOR LINCOLN moved the following amendment to SB 223:
Amendment No. 1
Page 1, line 13: Delete [subsurface] and insert "surface
Page 2, line 1: Insert following "fisheries." Such surface estate
closure will protect the fisheries without eliminating mineral
location of the subsurface minerals or development of the
subsurface minerals by underground mining methods.
Page 2, line 2: Following "state-owned" insert: surface estate
portion of the
Hearing no objection to Senator Lincoln's motion, CHAIRMAN LEMAN
stated the amendment was adopted and would be incorporated into a
Resources CS.
There being no further testimony on SB 223, CHAIRMAN LEMAN asked
for the pleasure of the committee.
SENATOR LINCOLN moved that CSSB 223(RES) be passed out of committee
with individual recommendations. SENATOR FRANK objected and stated
he thinks the legislation is unnecessary because there was no
evidence suggesting the area was being threatened by mining
activity. A roll call vote was taken with the following result:
Senators Lincoln, Hoffman and Leman voted "Yea" and Senators
Halford and Frank voted "Nay." CHAIRMAN LEMAN stated the motion
failed for lack of receiving four affirmative votes and the
legislation would be set aside for future consideration.
CSSSHB 397(FIN) FISH LANDING TAX/SEAFOOD MARKETING ASSMT.
CHAIRMAN LEMAN brought CSSSHB 397(FIN) before the committee as the
next order of business.
AMY DAUGHERTY , staff to Representative Austerman who is prime
sponsor of HB 397, explained that two years ago the Legislature
passed the fishery resources landing tax, which established a 3.3
percent tax on fishery resources. However, that legislation has
had some legal challenges which have left some loopholes open and
are addressed in HB 397.
Ms. Daugherty pointed out the 3.3 percent tax is the same as the
fisheries business tax as it applies to shore-based processors,
plus the ASMI .3 assessment; it is just the way it's applied. The
legislation essentially repeals the 3.3 percent tax and puts it
back on as a 3 percent tax and a separate .3 assessment so that it
mirrors identically the fisheries business tax and the ASMI
assessment, and, therefore, will not have further legal challenges.
NEIL SLOTNICK , Assistant Attorney General, Department of Law,
stated he has been handling the litigation concerning the fisheries
landing tax. He explained that the American Factory Trollers
Association filed suit in Superior Court soon after that
legislation was passed. The state moved to dismiss the suit,
arguing that they need to go through the administrative tax appeal
structure. The Superior Court agreed and dismissed the suit. It
was then appealed to the Supreme Court which upheld the Superior
Court's ruling.
The suit challenged the tax as discriminatory under the Interstate
Commerce Clause of the U.S. Constitution, arguing that it
discriminated against interstate commerce. The landing tax, by its
own terms, exempts any entity that already pays the fisheries
business tax, so on its face, it is in a sense discriminatory
because only certain tax payers are going to have to pay it. It is
the state's argument that the two taxes are meant to be comparable.
Anytime there are two taxes that are meant to be comparable, they
must be essentially equal.
Mr. Slotnick said one of the arguments that the factory trollers
raised in Superior Court was that there were more credits available
to the payers of the fisheries business tax than there were
available to the payers of the fisheries landing tax. He said the
department thought that perhaps this was an oversight in the
original legislation, that because the two taxes are meant to be
comparable, it might be that the Legislature would want to
reconsider this and make the two comparable by extending the same
credits over that are available to the fisheries business tax
payers to the landing tax tax payers. HB 397 balances the playing
field between the two businesses.
BOB BARTHOLOMEW , Deputy Director, Income & Excise Audit Division,
Department of Revenue, said the department has been working with
the sponsor of the legislation to basically try and rectify where
there may be potential weaknesses in the statute. He noted in FY
95 the fisheries business tax collected $7 million, portions of
which will get shared back to the local governments, but is being
held in escrow by the local governments pending the challenges to
the tax.
SENATOR HALFORD asked why the bill contains numerous sections
dealing with the ASMI tax at .2 percent, .3 percent, etc. MR.
BARTHOLOMEW responded that throughout the ASMI statute there was a
potential loophole with the word "purchase" because some people do
not purchase seafood; they catch it themselves and either export it
out of state or do their own processing. In order to close that
potential loophole, the word "purchase" was replaced with
"produce." He added that the mechanism for self-assessment and the
rate of self-assessment will be exactly the same as it is in
current statute.
There being no further testimony on HB 397, CHAIRMAN LEMAN said the
bill would be held over for final action at the next meeting.
CSHB 58(RES) CHICKALOON FLATS CRITICAL HABITAT AREA
CHAIRMAN LEMAN brought CSHB 58(RES) before the committee.
REPRESENTATIVE CON BUNDE , prime sponsor of HB 58, explained
Chickaloon Flats is an extremely accessible area across the inlet
from Anchorage, and there is some concern among hunters about the
existence of resting and hunting areas for waterfowl. The
legislation will create a critical habitat area that does not
preclude but, in fact, encourages hunting and access. However, it
provides that if there is anything that would disrupt the nesting
of waterfowl, it would have to go through the Department of Fish &
Game. The legislation is to assure adequate habitat for waterfowl,
and it does not create any stumbling blocks for future development,
nor will it inhibit access for any outdoor recreational purpose.
Number 368
CHAIRMAN LEMAN asked what potential encroaching dangers the hunters
are concerned about. REPRESENTATIVE BUNDE responded that he
doesn't think there is any potential development in that area
planned at this time, but that the hunters are just looking down
the road twenty or thirty years to protect the habitat of the area
and the access to the area.
Number 400
SENATOR LINCOLN commented that a section of the bill permits entry
within the Chickaloon Flats Critical Habitat Area for the
exploration and development of oil and gas resources when it is
compatible with the purposes for which the critical habitat area is
established, but she didn't how that entry could ever be compatible
with the guarantees that have been established for the area.
SENATOR FRANK asked if there is any scientific data to support the
notion that oil and gas development on the North Slope has affected
waterfowl in that area. REPRESENTATIVE BUNDE , speaking from his
own experience of working on the slope for 15 years, said
production has had not any serious impact. However, he thinks
exploration and seismic activity during the nesting and staging
area could create a problem.
SENATOR FRANK voiced concern about allowing access to the area by
all-terrain vehicles and possibly horses because of the potential
tearing up of the vegetation.
GERON BRUCE , Legislative Liaison, Department of Fish & Game, stated
the department is in support of HB 58. He noted this area is
authorized under AS 16.20.500, which is the enabling legislation
setting up the fish and game critical habitat areas. He believes
some of the concerns expressed are addressed by the linkage between
that enabling legislation and this particular bill that sets out
this specific critical habitat area. He said it is basically a
multiple-use area, but the significance of authorizing it as a
critical habitat area is that other uses conducted there have to be
compatible with its primary function. In the case of an all-
terrain vehicle, there might be certain circumstances in which it
would not be damaging to the primary purpose of protecting that
habitat, but there might be other situations where it would be, and
the department has the flexibility within this program to make
those calls.
SENATOR FRANK said he thought the legislation should be clear that
users of all-terrain vehicles have to have permission from the
commissioner of the department before taking them into the area.
TAPE 96-35, SIDE B
Number 001
SENATOR LINCOLN noted that subsection (c) on page 2 provides that
the state may acquire more lands for inclusion in the Chickaloon
Flats Critical Habitat Area, so it appears that the area could be
expanded beyond what is currently shown on the map. She then
proposed an amendment to page 2, line 23, changing the word "shall"
to "may." She said if there is going to be an expansion of the
area and then the exploration of development of oil and gas, it
shouldn't be automatic. REPRESENTATIVE BUNDE pointed out that
there are two small islands out in the bay that are privately owned
and that is the only private property that would be available for
expansion, and the only reason that was considered was so that
those people wouldn't be frozen out of access to their property.
SENATOR FRANK asked Mr. Bruce if the department feels that there is
adequate protection in state law and existing authority to handle
any threat to this bird area rather than passing this legislation.
MR. BRUCE responded that he doesn't think that impetus for it is
motivated so much by a threat as it is more from the standpoint
that these people regard it as a special area and they look at this
provision as a way to gain that kind of recognition.
SENATOR FRANK asked if this area is open to mineral entry. MR.
BRUCE acknowledged that it is a multiple use area, and unless
specifically prohibited in the statute establishing the critical
habitat area, it would be open to mineral entry as long as it was
compatible with the fish and wildlife habitat in the area.
REPRESENTATIVE BUNDE pointed out it is below mean high tide, and
the only reason the exploration and development of oil and gas is
mentioned is that they are the only resources that anybody has
indicated that there's a possibility of locating there.
Number 150
SENATOR TAYLOR questioned the total number of acres involved in
this critical habitat area, and what number of acres do they
propose removing from another critical habitat area so that it will
be available for multiple use.
Number 200
SENATOR LINCOLN moved the following amendment to CSHB 58(RES):
Amendment No. 1
Page 2, line 23: Delete "shall" and insert "may"
SENATOR FRANK objected to the adoption of the amendment. After
further discussion on the amendment, the roll was taken with the
following result: Senator Lincoln voted "Yea" and Senators Frank,
Halford, Pearce, Hoffman and Leman voted "Nay." The Chairman
stated the motion failed.
SENATOR TAYLOR moved the following amendment to CSHB 58(RES):
Amendment No. 2
Page 2, line 13: Between the words "boat" and "aircraft" insert
"hovercraft, helicopter, ultra lite and crawler tractor"
SENATOR LINCOLN objected to the adoption of the amendment. The
roll was taken with the following result: Senator Taylor voted
"Yea" and Senators Halford, Lincoln, Hoffman, Leman, Pearce and
Frank voted "Nay." The Chairman stated the motion failed.
There being no further discussion on CSHB 58(RES), CHAIRMAN LEMAN
asked for the pleasure of the committee.
SENATOR HALFORD moved CSHB 58(RES) be passed out of committee with
individual recommendations. SENATOR TAYLOR objected. The roll was
taken with the following result: Senators Hoffman, Leman and
Halford voted "Yea" and Senators Taylor, Lincoln, Pearce and Frank
voted "Nay." The Chairman stated the motion failed.
SB 247 USE OF FISH & GAME FUND/COMM'R'S POWERS
CHAIRMAN LEMAN brought SB 247 before the committee as the final
order of business. It was noted there was a Resources CS for the
committee's consideration.
SENATOR TAYLOR moved the adoption of CSSB 247(RES), version "F," as
a working document. Hearing no objection, the motion carried.
SENATOR TAYLOR , the legislation's prime sponsor, said the primary
purpose of the bill is to constrain the department in the
utilization of funds that are derived from the user public. He
said receipts from specific taxes imposed on those people have
become the primary budget of all of the Department of Fish and
Game, with the exception of the Division of Commercial Fisheries.
SENATOR TAYLOR moved the following amendment to CSSB 247(RES)
Amendment No. 1
Page 2, line 8: Delete "or"
Page 2, line 13: Following "tags;" insert "or
(D) construction and protection of shooting
ranges;"
Page 3, line 27: Delete "or"
Page 4, line 1: Following "tags;" insert "or
(D) construction and protection of shooting ranges;"
SENATOR HOFFMAN objected to the adoption of the amendment.
SENATOR TAYLOR , speaking to the amendment to CSSB 247(RES), said
rifle ranges seem to be coming under greater and greater attack all
across the state, and it was felt that since it is one specific
funding mechanism that is provided for in federal fund it should be
in the bill to make certain those shooting and rifle ranges
continue to exist. He said the amendment contains the phrase
"construction and protection of shooting ranges," but he thought
replacing the word "protection" with the word "preservation" would
be more suitable because it would allow the upgrade and improvement
of the shooting range.
TAPE 96-36, SIDE A
Number 010
SENATOR TAYLOR moved as an amendment to the amendment to replace
the word "protection" with "preservation." Hearing no objection,
the Chairman stated the amendment to the amendment was adopted.
CHAIRMAN LEMAN stated Amendment No. 1, as amended, was before the
committee. Hearing no objection, he stated the amendment was
adopted.
CHAIRMAN LEMAN noted that at the previous hearing on the bill, Jeff
Parker expressed concern that because the legislation included
sport fish stocks that it would result in the loss of federal
revenues, and he had suggested that the references to fish be
deleted and the bill just refer to wildlife. He questioned if that
is a valid concern, and said it was not his intent that that
happen.
SENATOR TAYLOR said he thinks a good portion of the monies received
from the federal government is specifically allocated to sport fish
to enhance access for sport and recreational fisheries, and he
thinks Mr. Parker is incorrect that federal funds will be lost. In
fact he thinks the way the department has been operating, they were
running a risk of losing some federal funds should an audit reveal
that they were using them for commercial hatchery type operations
instead of sport fish.
GERON BRUCE , Legislative Liaison, Alaska Department of Fish & Game,
said he thought Mr. Parker had a valid concern. He pointed out the
fiscal notes prepared by the department showed a reversion of
federal funds to the federal government. They do not believe that
under the original version of the bill that the purposes for which
those funds are authorized to be spent would be broad enough to
include many of the things that they do and are vital to their
sport fish and recreational hunting management programs. He also
said the problem is not with the federal law and regulations; the
problem will be with this proposed state law.
SENATOR LINCOLN said she would be interested in knowing how much
money the department believes the state would be losing in federal
dollars.
SENATOR TAYLOR moved CSSB 247(RES), as amended, and the
accompanying fiscal notes be passed out of committee with
individual recommendations. SENATOR HOFFMAN objected, stating that
as a hunter and fisherman, he does not see a problem with of the
way the dollars are being spent by the Department of Fish and Game.
The roll was taken with the following result: Senator Taylor,
Halford, Pearce and Leman voted "Yea" and Senators Hoffman and
Lincoln voted "Nay." The Chairman stated the motion carried.
There being no further business to come before the committee, the
meeting was adjourned at approximately 5:30 p.m.
| Document Name | Date/Time | Subjects |
|---|