Legislature(2013 - 2014)HOUSE FINANCE 519

03/20/2013 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:00 p.m. Today --
+ HB 84 MILITARY TRAINING CREDIT/TEMP. LICENSE TELECONFERENCED
Heard & Held
+ HB 99 EXTEND ALASKA MINERALS COMMISSION TELECONFERENCED
Moved CSHB 99(RES) Out of Committee
*+ HB 64 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 99                                                                                                             
                                                                                                                                
     "An Act extending the termination date of the Alaska                                                                       
     Minerals Commission."                                                                                                      
                                                                                                                                
2:38:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN SADDLER,  SPONSOR,  explained the  bill.                                                                    
The  Alaska Minerals  Commission  would be  extended for  an                                                                    
additional 10 years. He read from a statement.                                                                                  
                                                                                                                                
     House Bill  99 extends  the Alaska  Minerals Commission                                                                    
     until February 1, 2024 and  provides for terms and term                                                                    
     limits  for  those who  serve  on  the Commission.  The                                                                    
     Commission is  currently set to  expire on  February 1,                                                                    
     2024, and  commissioners are  not currently  subject to                                                                    
     terms or term limits.                                                                                                      
                                                                                                                                
     The  Commission was  created in  1986 and  charged with                                                                    
     making   recommendations  to   the  Governor   and  the                                                                    
     Legislature  on ways  to  mitigate  constraints on  the                                                                    
     development of minerals in Alaska.                                                                                         
                                                                                                                                
     The Commission  consists of 11 members:  five appointed                                                                    
     by the Governor, three b  the Speaker of the House, and                                                                    
     three by the President of  the Senate. Each member must                                                                    
     have at least five years  of experience in the minerals                                                                    
     industry. At  least one member  must reside in  a rural                                                                    
     community. Current commissioners  represent the placer,                                                                    
     hard  rock,  and  coal  mining  industries  across  the                                                                    
     state.                                                                                                                     
                                                                                                                                
     The Commission annually  reports its recommendations to                                                                    
     the Governor  and the Legislature during  the first ten                                                                    
     days of the legislative session.                                                                                           
                                                                                                                                
     Key   recommendations  made   by  the   Commission  and                                                                    
     implemented by  the Legislature since  the Commission's                                                                    
     last reauthorization in 2003 include:                                                                                      
                                                                                                                                
        · Funding   infrastructure  development   under  the                                                                    
          Roads to Resources program                                                                                            
        · Reforming state permitting  processes to make them                                                                    
          timelier and more efficient                                                                                           
        · Gathering    and    publishing   geological    and                                                                    
          geophysical data on Alaska's mineral potential                                                                        
        · Assuming state  primacy of the  National Pollutant                                                                    
          Discharge Elimination System                                                                                          
        · Accelerating  state  land entitlement  conveyances                                                                    
          in accordance with the Statehood Act                                                                                  
        · Reestablishing  the  citizens Advisory  Commission                                                                    
          on Federal Areas                                                                                                      
        · Asserting  and defending  public access  to roads,                                                                    
          trails, and navigable waterways                                                                                       
        · Funding University  of Alaska  mineral engineering                                                                    
          and geology programs                                                                                                  
                                                                                                                                
        I urge you to  allow the Commission to  continue its                                                                    
        important work  and to  help ensure  the growth  and                                                                    
        sustainability of  a  vital  sector of  the  Alaskan                                                                    
        economy by supporting HB 99.                                                                                            
                                                                                                                                
2:40:01 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze asked  about  the policy  related to  term                                                                    
limits.   Representative    Saddler   replied    that   most                                                                    
commissioners   would  serve   only  one   term.  Especially                                                                    
effective commissioners  would be invited to  serve a second                                                                    
term. He anticipated that commissioners  might wish to serve                                                                    
a  second   term  because  they  care   about  the  industry                                                                    
tremendously.                                                                                                                   
                                                                                                                                
Representative  Guttenberg  asked  if   an  audit  had  been                                                                    
performed  for the  upcoming sunset.  Representative Saddler                                                                    
replied that an audit had not been done.                                                                                        
                                                                                                                                
Vice-Chair Neuman  pointed to budget deficit  issues and the                                                                    
need to  conserve money. He  wondered about  the possibility                                                                    
of phasing  out commissions following  final recommendations                                                                    
to  the  legislature. He  stated  that  the Alaska  Minerals                                                                    
Commission cost $13 thousand per  year, but with hundreds of                                                                    
different  commissions,  the  cumulative state  expense  was                                                                    
great. He called attention to the role of private industry.                                                                     
                                                                                                                                
2:43:13 PM                                                                                                                    
                                                                                                                                
Representative Saddler  believed the  question was  fair. He                                                                    
opined that  the annual cost  of $13 thousand for  the board                                                                    
was  a   "bargain-basement"  cost.  If  the   services  were                                                                    
contracted  out,   they  would  far  exceed   the  cost.  He                                                                    
expressed one benefit  of the commission was  its command of                                                                    
respect of  regulators of the private  industry for meetings                                                                    
and dialogue.                                                                                                                   
                                                                                                                                
Vice-Chair Neuman  opined that  the legislature  must review                                                                    
the state commissions  and consider phasing some  out in the                                                                    
spirit of frugality.                                                                                                            
                                                                                                                                
Co-Chair Stoltze  made a  remark related  to the  expense of                                                                    
the annual Energy Council conference.                                                                                           
                                                                                                                                
Representative  Gara  echoed  comments  made  by  Vice-Chair                                                                    
Neuman.  He   wanted  evidence   that  the   commission  was                                                                    
providing  advantages that  the  governor's  office was  not                                                                    
already performing.                                                                                                             
                                                                                                                                
Co-Chair  Stoltze  commented  that  the  governor's  efforts                                                                    
might have been suggested by the commissions.                                                                                   
                                                                                                                                
Representative  Saddler  answered  that   he  did  not  know                                                                    
whether  the  decisions  were  made   before  or  after  the                                                                    
commission's recommendations.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze made  a remark  about the  chicken or  the                                                                    
egg.                                                                                                                            
                                                                                                                                
Representative  Gara  supposed   that  the  information  was                                                                    
available if searched for.                                                                                                      
                                                                                                                                
2:47:07 PM                                                                                                                    
                                                                                                                                
BILL  JEFFRESS,  CHAIR,   ALASKA  MINERALS  COMMISSION  (via                                                                    
teleconference),  was  available  for questions.  He  stated                                                                    
that  the  commission  supported the  legislation.  Co-Chair                                                                    
Stoltze referred to Representative Gara's question.                                                                             
                                                                                                                                
Mr.  Jeffress   replied  that  the  commission's   role  was                                                                    
independent. All members had  different experiences with the                                                                    
mineral  industry in  the  state.  The commission  addressed                                                                    
impediments to the minerals industry  and actions that could                                                                    
be taken to  correct the issues. He stated  that the members                                                                    
were the "town criers."                                                                                                         
                                                                                                                                
Representative Saddler  pointed to the 2004  Alaska Minerals                                                                    
Commission  report, which  stated  the  goals of  developing                                                                    
more   efficient   permitting   processes   to   assist   in                                                                    
infrastructure  development,  to  benefit mining  and  other                                                                    
industries,   and  to   acquire   baseline  geological   and                                                                    
environmental knowledge statewide.                                                                                              
                                                                                                                                
2:50:07 PM                                                                                                                    
                                                                                                                                
DEANTHA   CROCKETT,   EXECUTIVE  DIRECTOR,   ALASKA   MINERS                                                                    
ASSOCIATION  (via teleconference)  expressed strong  support                                                                    
for  the  legislation.   She  discussed  recommendations  to                                                                    
Department  of  Natural  Resources   and  she  stressed  the                                                                    
importance  of  the  board. The  association  supported  the                                                                    
amendments   to  the   legislation  as   they  believed   in                                                                    
circulating board members regularly.                                                                                            
                                                                                                                                
Representative  Gara  asked  if  Ms.  Crockett  was  on  the                                                                    
commission. Ms. Crockett answered in the negative.                                                                              
                                                                                                                                
2:52:31 PM                                                                                                                    
                                                                                                                                
MARLEANNA  HALL, PROJECT  COORDINATOR, RESOURCE  DEVELOPMENT                                                                    
COUNCIL  (via  teleconference),  spoke  in  support  of  the                                                                    
legislation.  She  stated   that  historically,  the  mining                                                                    
industry provided  the cornerstone of Alaska's  economy. The                                                                    
appointed group made recommendations  to the legislature and                                                                    
the  governor  in  an effort  to  promote  Alaska's  mineral                                                                    
exploration and development  industry. The industry provided                                                                    
some  of the  state's highest  paying jobs.  The bill  would                                                                    
extend the  commission for  10 years.  She pointed  out that                                                                    
the bill had a low fiscal impact. She pointed to a broad-                                                                       
based  membership.  She  urged  the committee  to  pass  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Vice-Chair  Neuman asked  if the  council  would consider  a                                                                    
grant to  help relieve  financial burdens  of the  state and                                                                    
private industry. Ms. Hall deferred the question.                                                                               
                                                                                                                                
Representative  Costello  believed  that  other  boards  and                                                                    
commissions  should   strive  for   the  frugality   of  the                                                                    
commission. She requested electronic reports in the future.                                                                     
                                                                                                                                
STEPHEN  TRIMBLE, MINERALS  COMMISSION (via  teleconference)                                                                    
commented    that   the    list   of    recommendations   in                                                                    
Representative Saddler's  sponsor statements were  put forth                                                                    
by  the commission  and enacted  by the  administration. The                                                                    
commission took  a lead role  in actively  recommending ways                                                                    
to   mitigate   constraints   on  state   mineral   resource                                                                    
development.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Representative Saddler made a note  related to the costs. He                                                                    
noted that  the report presented by  the Minerals Commission                                                                    
was available electronically.                                                                                                   
                                                                                                                                
Representative  Costello discussed  the  fiscal impact  note                                                                    
from  the Department  of  Commerce,  Community and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
Representative  Munoz MOVED  to REPORT  CSHB 99(RES)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Gara  OBJECTED for  discussion. He  asked the                                                                    
sponsor to relay to the  commission his desire to have their                                                                    
specific  ideas brought  to the  administration's attention.                                                                    
Representative Gara  REMOVED his  OBJECTION. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB 99(RES) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and   with  one  fiscal  impact   note  from                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
3:01:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:03:05 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 84 Supporting Documents - Testimony - Mark San Souci Regional Liaison NW DOD 02182013.pdf HFIN 3/20/2013 1:30:00 PM
HB 84
HB 84 Supporting Documents - Letter Ed Kringer DOD 02112013.pdf HFIN 3/20/2013 1:30:00 PM
HB 84
HB 84 Sponsor Statement.pdf HFIN 3/20/2013 1:30:00 PM
HB 84
HB 84 Sectional Analysis.pdf HFIN 3/20/2013 1:30:00 PM
HB 84
HB99 Sponsor Statement.pdf HFIN 3/20/2013 1:30:00 PM
HB 99
HB99 Explantion of Changes & Sectional Analysis.pdf HFIN 3/20/2013 1:30:00 PM
HB 99
HB99 Economic Benifits of Mining.pdf HFIN 3/20/2013 1:30:00 PM
HB 99
HB99 AMC 2013 Annual Report.pdf HFIN 3/20/2013 1:30:00 PM
HB 99
HB 99(RES)-NEW FN-DCCED-DED-02-22-13.pdf HFIN 3/20/2013 1:30:00 PM
HB 99
FY2014_Capital_Amend_Spreadsheet.pdf HFIN 3/20/2013 1:30:00 PM
HB 64
FY2014_Capital_Amend_Spreadsheet.pdf HFIN 3/20/2013 1:30:00 PM
HB 64
SB 23 Version O Sectional.pdf HFIN 3/20/2013 1:30:00 PM
SB 23
HB 64 Response-AEA House Finance EETF 03.21.13.pdf HFIN 3/20/2013 1:30:00 PM
HB 64