Legislature(2023 - 2024)ADAMS 519
04/26/2024 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB257 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 174 | TELECONFERENCED | |
| += | HB 169 | TELECONFERENCED | |
| + | HB 232 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | HB 257 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 26, 2024
9:41 a.m.
9:41:54 AM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 9:41 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative DeLena Johnson, Co-Chair
Representative Julie Coulombe
Representative Mike Cronk
Representative Alyse Galvin
Representative Sara Hannan
Representative Andy Josephson
Representative Dan Ortiz
Representative Will Stapp
Representative Frank Tomaszewski
MEMBERS ABSENT
Representative Bryce Edgmon, Co-Chair
ALSO PRESENT
Representative Tom McKay, Sponsor; Trevor Jepsen, Staff,
Representative Tom McKay; Brodie Anderson, Staff,
Representative Neal Foster.
PRESENT VIA TELECONFERENCE
Melanie Werdon, Director, Division of Geological and
Geophysical Surveys, Department of Natural Resources.
SUMMARY
HB 169 FISHERIES REHABILITATION PERMIT/PROJECT
HB 169 was SCHEDULED but not HEARD.
HB 174 STATE FUND FIDUC DUTY:SOCIAL/POL INTEREST
HB 174 was SCHEDULED but not HEARD.
HB 232 DISABLED VETERANS: RETIREMENT BENEFITS
HB 232 was SCHEDULED but not HEARD.
HB 257 COOK INLET SEISMIC DATA
HB 257 was REPORTED out of committee with eight
"do pass" recommendations and two "amend"
recommendations and with one previously published
fiscal impact note: FN1 (DNR).
Co-Chair Foster reviewed the meeting agenda.
HOUSE BILL NO. 257
"An Act requiring the Department of Natural Resources
to make Cook Inlet seismic survey data available to
certain persons; and providing for an effective date."
9:43:30 AM
Co-Chair Foster invited the bill sponsor and his staff to
the table for a brief recap on the bill.
REPRESENTATIVE TOM MCKAY, SPONSOR, appreciated the bill
hearing. The bill would make state-owned seismic data
available to scientists and independent consultants in the
oil and gas industry at no cost. He explained that
professionals had expressed interest in evaluating the
information in order to locate future prospects for oil and
gas in Cook Inlet. He referenced that the fiscal note
included funding to compensate the Department of Natural
Resources (DNR) because the department would normally sell
the data at a minimum cost. The note would compensate DNR
for the loss in revenue. He was optimistic it was one of a
series of bills that could help secure more oil and gas
reserves in Cook Inlet that could be used to heat
residents' homes and keep the lights on. He thanked the
committee.
9:45:32 AM
Co-Chair Foster requested a review of the fiscal note from
DNR.
MELANIE WERDON, DIRECTOR, DIVISION OF GEOLOGICAL AND
GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), explained fiscal note OMB component number
1031, control code ifzvp. The fiscal note was updated and
properly reflected a fund source swap of $35,000 from
designated general funds (DGF) to unrestricted general
funds (UGF). The bill amended AS 41.08.020 and directed the
division to make seismic survey and other geophysical data
available without charge to a qualified person for land
inside the Cook Inlet sedimentary basin unless the data was
confidential by statute or on private land. Currently, the
general fund program receipt revenue from annual Cook Inlet
seismic data sales supported operating costs for the
Division of Geological and Geophysical Surveys and receipt
collections were utilized to administer system maintenance
and management and distribution of seismic data. The work
was currently funded with the limited receipts associated
with the sales of seismic data. Implementing the bill would
render the Cook Inlet portion, which was less than 5
percent of the total statewide seismic sale revenue, no
longer available to the division. The division estimated a
revenue loss of $35,000. The operating cost to manage and
publish the data and make it publicly available would have
to be supported by UGF.
9:48:42 AM
Representative Hannan stated that DNR was estimating there
could be as much as a $35,000 loss and the fiscal note gave
the department UGF to replace the potential loss. She asked
what happened if the loss was below $35,000. She asked if
the department would still receive the full $35,000.
TREVOR JEPSEN, STAFF, REPRESENTATIVE TOM MCKAY, responded
that the sponsor viewed the $35,000 as an estimate as the
department had only made slightly under $27,000 over the
past five fiscal years from the Cook Inlet seismic sales.
The department was already administering the program to the
tune of millions of dollars for Cook Inlet and the North
Slope. The sponsor's office did not foresee a $35,000
decrease in the division's revenue based on recent Cook
Inlet data sales.
Ms. Werdon replied that the estimate in the fiscal note
came from historical data and the expectation of a transfer
of Cook Inlet data from the Division of Oil and Gas to the
Division of Geological and Geophysical Surveys for future
sales.
9:50:50 AM
Representative Hannan clarified that she was not opposed to
the bill. She stated that if the division had been
collecting around $5,000 to $6,000 per year in revenue for
the data, giving the department $35,000 to give away the
data seemed like a leap. She had no problem compensating
the department for the lost revenue, but she did not want
to give the division additional revenues to do other things
that the legislature did not intend.
Co-Chair Johnson answered that extra revenue would lapse at
the end of the year. She wanted to make sure the department
would not be shorted $35,000.
Co-Chair Foster asked to hear from his staff. He restated
the question.
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, replied
that if the bill were to pass with the fiscal note as
written, the fund source swap would occur regardless of the
estimated loss. He relayed that if the fiscal note was
included in the fiscal note package the budget conference
committee would address later in session, there would be a
possibility for the conference committee to amend the
amount. Currently, as written, the fund swap (from DGF to
UGF) of $35,000 would occur if the bill passed the
legislature.
Co-Chair Foster asked if it was also possible for the
funding to lapse if it was not used.
Mr. Anderson agreed that any unspent DNR funds would lapse
back to the general fund at the end of the fiscal year.
Representative Hannan remarked on the intention to increase
gas development in Cook Inlet. She considered a scenario
where the funding went into the department's receipts for
all seismic work as opposed to a line item in the DNR
budget specifically for Cook Inlet gas, and it did not
result in gas development. She wondered about giving
revenue away. She would be more interested seeing the
conference committee look at the item. She could see
including a small amount of money for DNR in the fiscal
note and following up with supplemental funds if needed.
She understood the fiscal note was not large, but the
department was currently directed to charge for the data by
statute and now the legislature was telling the department
to give it away for free no matter what the cost.
Representative McKay responded that his primary intent was
to get the data out to hopefully find new oil and gas
resources to benefit Alaskans. He was not so concerned with
the internal accounting within DNR. He was hoping DNR could
explain that aspect.
Mr. Jepsen referenced the $27,000 in historical sales of
seismic data over the past five years. He relayed that DNR
had communicated that 10-year Cook Inlet data that may be
more valuable was upcoming and would lapse into state
hands. He suggested that DNR could potentially expound on
that.
Mr. Anderson relayed that the $35,000 would go to the
Division of Geological and Geophysical Surveys. He
suggested asking what other things the division would be
able to spend the money on.
Ms. Werdon replied that the division would use the funds to
administer the servers and system maintenance data
management and upgrades and associated staff time and for
the distribution of the seismic data itself.
9:58:24 AM
Co-Chair Foster stated it would be great if there was some
contingency language included, but the committee could move
on. He asked Representative McKay if he had any comments on
the matter. He noted the bill would have to go to the
Senate as well.
Representative McKay knew from the beginning that the
fiscal note issue was a bit confusing. The goal had been to
estimate how much revenue DNR may lose as a result of the
bill.
Co-Chair Foster suggested that the committee could move the
bill out if the committee supported the idea. He noted that
the fix was minor, and it could be made by the Senate. He
believed it was a good point raised by Representative
Hannan.
Co-Chair Johnson MOVED to REPORT HB 257 out of committee
with individual recommendations and the accompanying fiscal
note.
There being NO OBJECTION, it was so ordered.
HB 257 was REPORTED out of committee with eight "do pass"
recommendations and two "amend" recommendations and with
one previously published fiscal impact note: FN1 (DNR).
Co-Chair Foster recessed the meeting to a call of the chair
[note: meeting never reconvened].
ADJOURNMENT
10:00:51 AM
The meeting was adjourned at 10:00 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 232 Sectional Analysis.pdf |
HFIN 4/26/2024 9:00:00 AM |
HB 232 |
| HB 232 Sponsor Statement.pdf |
HFIN 4/26/2024 9:00:00 AM |
HB 232 |
| HB 232 Supporting Documents.pdf |
HFIN 4/26/2024 9:00:00 AM |
HB 232 |
| HB 139 FN FUND CAP CORRESPONDENCE 041924.pdf |
HFIN 4/26/2024 9:00:00 AM |
HB 139 |