Legislature(2001 - 2002)

05/05/2001 03:42 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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.                                                                         
                                                                                                                                
Representative Davies MOVED to  ADOPT 22-GH1087\P, Luckhaupt,                                                                   
5/04/01, as  the version  of the  bill before the  Committee.                                                                   
[Copy on File].  There being NO OBJECTION, it was adopted.                                                                      
                                                                                                                                
BOB LOEFFLER,  DIRECTOR, DIVISION OF MINING,  LAND AND WATER,                                                                   
DEPARTMENT OF NATURAL RESOURCES,  commented that the bill was                                                                   
only one  part of a solution  for the Department.   The Water                                                                   
Management program  has had  a significant funding  reduction                                                                   
in  the  past  several  years.    Currently,  there  are  3.5                                                                   
employees running the program  and the resulting consequences                                                                   
is  a backlog  of 6,700  claims  for water  rights and  3,000                                                                   
total  actions  including transfers,  amendments  and  permit                                                                   
extensions.                                                                                                                     
                                                                                                                                
Mr. Loeffler addressed possible solutions:                                                                                      
                                                                                                                                
     ·    Streamlining  the system.    The Department  cannot                                                                   
          pretend that they have  enough funds to operate the                                                                   
          system,  as it existed  in the  early 1980's.   The                                                                   
          Department  is proposing regulations  to streamline                                                                   
          65%  of  the  caseload  and  concentrate  staff  on                                                                   
          larger  water  flows   and  where  there  could  be                                                                   
          potential for problems.                                                                                               
     ·    There  is $300  thousand dollars  in the House  and                                                                   
          Senate  operating  budgets.    Even  a  streamlined                                                                   
          system  could  not   be  run  statewide  with  four                                                                   
          employees.     An  increment  consisting   of  $300                                                                   
          thousand  dollars has passed  the House  and Senate                                                                   
          operating budgets.                                                                                                    
     ·    A long-term income source.   The proposed bill will                                                                   
          provide   that  the   Department  may  change   the                                                                   
          reasonable  direct costs  of  providing a  service,                                                                   
          and  would place  strict  limitations  on what  the                                                                   
          Department could charge to assure the public that                                                                     
          they will not raise fees unreasonably.                                                                                
                                                                                                                                
Mr. Loeffler listed a summary of bill's purpose:                                                                                
                                                                                                                                
     ·    Fee limitations and                                                                                                   
     ·    Temporary water use authorizations.                                                                                   
                                                                                                                                
Vice-Chair  Bunde voiced  concern with  the large backlog  of                                                                   
cases.  Mr. Loeffler replied that  it would take four to five                                                                   
years  to address  that size backlog.   The  backlog will  be                                                                   
prioritized, as some of the cases are not time critical.                                                                        
                                                                                                                                
Representative Hudson advised  that funds had been added back                                                                   
to  address that  backlog.   He hoped  the legislation  would                                                                   
help the situation and then the  Department could take action                                                                   
on the  water permits.   He believed  it would take  about 30                                                                   
days.                                                                                                                           
                                                                                                                                
Representative Lancaster inquired  why no new employees would                                                                   
be  starting  in  FY02.   Mr.  Loeffler  explained  that  the                                                                   
employee in FY02  had already been included  in the operating                                                                   
budget.  He added that the bill  has a one-year sunset, which                                                                   
he did not understand  why it had been placed  on the bill in                                                                   
the House Judiciary committee.                                                                                                  
                                                                                                                                
Co-Chair  Williams pointed  out that  there had been  concern                                                                   
voiced  with  extending  that  sunset.   He  added  that  the                                                                   
Department  acknowledged that  they  would be  able to  "live                                                                   
with it" as currently written.                                                                                                  
                                                                                                                                
Representative Davies MOVED to  ADOPT Amendment #1.  [Copy on                                                                   
File].  He noted  the language would insert  the phrase, "and                                                                   
a water  conservation  fee under AS  46.15.035".   Vice-Chair                                                                   
Bunde OBJECTED for purposes of discussion.                                                                                      
                                                                                                                                
Representative  Davies  explained  that the  amendment  would                                                                   
provide for  technical clean up.   Vice-Chair  Bunde WITHDREW                                                                   
the OBJECTION.   There being NO further  OBJECTION, Amendment                                                                   
#1 was adopted.                                                                                                                 
                                                                                                                                
Representative Foster MOVED to  report CS HB 185 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  185 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass"  recommendation   and  with   a  new  fiscal   note  by                                                                   
Department of Natural Resources.                                                                                                
                                                                                                                                
                                                                                                                                
Recess:        4:05 p.m.                                                                                                        
Reconvene      4:15 p.m.                                                                                                        
                                                                                                                                

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