Legislature(1993 - 1994)

03/11/1994 08:30 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                         March 11, 1994                                        
                            8:30 A.M.                                          
                                                                               
  TAPE HFC 94 - 57, Side 2, #000 - end.                                        
  TAPE HFC 94 - 58, Side 1, #000 - #659.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson  called the House  Finance Committee meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Foster                          
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Therriault                      
  Representative Brown          Representative Parnell                         
  Representative Grussendorf                                                   
                                                                               
  Representative Hoffman and  Representative Navarre were  not                 
  present for the meeting.                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Joe  Green;  Representative Pete  Kott;  Ken                 
  Boyd,  (testified  via  teleconference),   Deputy  Director,                 
  Division of Oil  and Gas,  Department of Natural  Resources;                 
  Jerry Gallagher, Legislative  Liaison, Department of Natural                 
  Resources; Jay Dulany, Director, Division of Motor Vehicles,                 
  Department of  Public Safety; Juanita  Hensley, Chief Driver                 
  Services, Department of Public  Safety; Mark Johnson, Chief,                 
  Emergency  Services Section, Department of Health and Social                 
  Services;   Janet   Smally,  Physician,   Emergency  Medical                 
  Services,    Palmer;    Walt    Furnace,   (testified    via                 
  teleconference),  General  Manager, Alaska  Support Industry                 
  Alliance,   Anchorage;   Cliff   Burglin,   (testified   via                 
  teleconference),  Fairbanks;  Don   Moore,  (testified   via                 
  teleconference),  Anchorage;  Steve O'Conner,  Chair, Alaska                 
  Council of the Emergency Medical Services, Kenai.                            
                                                                               
  SUMMARY                                                                      
  HB 363    An  Act  repealing  an additional  fee  for  motor                 
            vehicle registration not conducted by mail.                        
                                                                               
            HB   363  was   HELD  in  Committee   for  further                 
            consideration.                                                     
  HB 199    An  Act  providing  for  oil  and gas  exploration                 
            licenses, and oil and gas leases, in certain areas                 
                                                                               
                                1                                              
                                                                               
                                                                               
            of the state; and providing for an effective date.                 
                                                                               
            CS HB 199 (O&G) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by  the  Department  of  Natural  Resources  dated                 
            2/09/94.                                                           
                                                                               
  HOUSE BILL 199                                                               
                                                                               
       "An Act providing for oil and gas exploration licenses,                 
       and oil and gas leases, in  certain areas of the state;                 
       and providing for an effective date."                                   
                                                                               
                                                                               
  Representative Brown provided the Committee with a packet of                 
  amendments  to  CS  HB   199  (O&G).    [Copies   on  file].                 
  Representative Brown explained Amendment #1  to Page 6, Line                 
  29,  deleting "must" and  inserting "may".   She thought the                 
  language change  would address  the State's  ability to  use                 
  exploration licensing within  the control of  the Department                 
  of Natural Resources  (DNR) adding that the  amendment would                 
  provide DNR more flexibility.                                                
                                                                               
  KEN BOYD,  (TESTIFIED VIA TELECONFERENCE),  DEPUTY DIRECTOR,                 
  DIVISION OF OIL  AND GAS,  DEPARTMENT OF NATURAL  RESOURCES,                 
  commented that the word "must" is  used in order to indicate                 
  that the State is serious about the program and that the oil                 
  companies  should  prepare  in  advance  for  that  program.                 
  Discussion amongst Committee members followed regarding  the                 
  feasibility of the amendment.                                                
                                                                               
  Representative Brown  MOVED to adopt Amendment #1.  [Copy on                 
  file].  There was OBJECTION to the motion.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf.                                      
       OPPOSED:       Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, Larson.                                          
                                                                               
  Representatives  Navarre,  Hoffman  and  MacLean  were   not                 
  present for the vote.                                                        
                                                                               
  The MOTION FAILED (2-6).                                                     
                                                                               
  Representative Brown MOVED  to adopt Amendment #2.  [Copy on                 
  file].  She  stated that the  amendment would add "the  area                 
  described in AS 38.05.140(f)" to Page 3, Line 3.  Currently,                 
  there is a provision in that section stating that leases can                 
  be issued in  the offshore area of Bristol Bay  and would be                 
  accessed  by  directional  drilling.   The  addition  of the                 
  amendment  would clarify  that  the  same restriction  would                 
                                                                               
                                2                                              
                                                                               
                                                                               
  apply to licenses as well as leases.                                         
                                                                               
  REPRESENTATIVE JOE GREEN  replied that there are  many areas                 
  in which  there is  a subsurface  lease which  would not  be                 
  accessible.  He  stated that the  amendment would not be  in                 
  the best interest of the State.                                              
                                                                               
  Mr. Boyd added that areas that are off limits to leasing are                 
  also  off limits to licensing.  He pointed out that there is                 
  currently an existing statute  which defines limitations and                 
  recommended that the legislation should be held to that same                 
  standard as  currently applies.  Representative  Brown MOVED                 
  TO WITHDRAW the motion  to adopt Amendment #2.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Representative Brown MOVED  to adopt  Amendment #3 [Copy  on                 
  file]  inserting  new  language to  Page  3,  Line  9.   The                 
  language would make  it explicate that the  Commissioner for                 
  DNR  could revise a land  licensing determination.  Mr. Boyd                 
  inquired if the  amendment would  allow the Commissioner  to                 
  change  the  project in  midstream.    Representative Hanley                 
  asked if the amendment would give the Commissioner authority                 
  to remove land from determination before it was leased.                      
                                                                               
  Representative  Brown  thought that  the  Commissioner could                 
  adopt regulations  clarifying the process  before operations                 
  began.  Representative Brown stated that current language is                 
  "open ended" and  that the amendment would provide a logical                 
  process for the Department.   Representative Hanley asked if                 
  the Commissioner  would have  the authority  to revisit  the                 
  terms and conditions of  that lease.  Mr. Boyd  replied that                 
  there  are  already  provisions  in  statute  allowing   the                 
  Commissioner to place conditions on leases.                                  
                                                                               
  Representative Brown MOVED  TO AMEND  Amendment #3, Page  3,                 
  Line  10,  deleting  "subject  to"  and  inserting  "offered                 
  under".  The language would clarify that once the license is                 
  issued, the Commissioner would not  have authority to change                 
  it.  The  language change would be required in  advance of a                 
  proposal  or  project and  would  clearly indicate  that the                 
  State  would  not  intervene  after  a  license  is  issued.                 
  Representative  Foster  OBJECTED  to  the  MOTION  TO  AMEND                 
  Amendment #3.                                                                
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell, Therriault, Brown, Grussendorf,                 
  Hanley                   MacLean.                                            
       OPPOSED:       Foster, Martin, Larson.                                  
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
                                3                                              
                                                                               
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #3.  Following                 
  discussion, there was OBJECTION to adopting Amendment #3.                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, MacLean.                             
       OPPOSED:       Therriault,   Foster,   Hanley,  Martin,                 
                      Parnell, Larson.                                         
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED (3-6).                                                     
                                                                               
  Representative  Brown MOVED to adopt Amendment #4.  [Copy on                 
  file].  She  explained that Amendment  #4 would pick up  two                 
  royalties at the discretion of  the Commissioner then making                 
  it parallel to competitive provisions.   The amendment would                 
  add Section (B), a  fixed royalty and fixed profit  share to                 
  the  competitive provision of  12.5%.   Representative Green                 
  stated he opposed the amendment,  adding that there would be                 
  a royalty change upon unitization  and that production would                 
  be "shut-in".   The amount of  that royalty would be  twenty                 
  (20)  percent.  The removal of ELF  has caused some wells to                 
  be prematurely  "shut-in".   He added  that there are  large                 
  numbers of  wells in  Alaska which  are marginal  status and                 
  that any indication of a greater  burden to the oil industry                 
  would be detrimuntal.                                                        
                                                                               
  Representative Hanley asked  if the  language in Section  #3                 
  would allow the Commissioner of DNR  the authority to impose                 
  the items listed in Amendment #4.  Mr. Boyd replied that the                 
  Department would  not object  to the  amendment although  he                 
  currently does have that authority.                                          
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Larson, MacLean.                     
       OPPOSED:       Foster,    Hanley,   Martin,    Parnell,                 
                      Therriault.                                              
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  meeting.                                                                     
                                                                               
  The MOTION FAILED, (4-5).                                                    
                                                                               
  Representative  Grussendorf  MOVED  to  adopt  Amendment  #5                 
  stating that the amendment would provide authority to remove                 
  the licensing process from Alaska's marine  areas.  [Copy on                 
                                                                               
                                4                                              
                                                                               
                                                                               
  file].                                                                       
                                                                               
  (Tape Change, HFC 94-58, Side 1).                                            
                                                                               
  Mr.  Boyd  stated  that  the  Department could  not  support                 
  Amendment #5.  He pointed out  that many critical areas have                 
  already been  removed in  formulating the  legislation.   He                 
  advised that by  removing the marine areas,  the legislation                 
  would be diluted, which is not warranted.                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Brown.                                      
       OPPOSED:       Foster,    Hanley,   Martin,    Parnell,                 
                      Therriault, MacLean, Larson.                             
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED, (2-7).                                                    
                                                                               
  WALT  FURNACE,  (TESTIFIED   VIA  TELECONFERENCE),   GENERAL                 
  MANAGER,  ALASKA  SUPPORT INDUSTRY  ALLIANCE, REPRESENTATING                 
  THE ALASKA JUDICIAL COUNCIL, ANCHORAGE,  spoke in support of                 
  HB 199.   He added that the legislation  is timely and given                 
  the  revenue  depletion,  the  legislation  is  designed  to                 
  encourage development.   Mr.  Furnace urged  passage of  the                 
  bill.                                                                        
                                                                               
  Representative Parnell MOVED to report  CS HB 199 (O&G)  out                 
  of Committee with individual recommendations and with a zero                 
  fiscal note.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  CS HB 199  (O&G) was reported  out of  Committee with a  "do                 
  pass"  recommendation and  with  a zero  fiscal note  by the                 
  Department of Natural Resources dated 2/09/94.                               
  HOUSE BILL 363                                                               
                                                                               
       "An Act repealing  an additional fee for  motor vehicle                 
       registration not conducted by mail."                                    
                                                                               
  REPRESENTATIVE  PETER KOTT  provided the  Committee  with an                 
  overview of  HB 363.   He  stated that  full and  unhindered                 
  access to State government is an important element of a free                 
  society.  An individual who desires to conduct business with                 
  the state in a face-to-face  meeting rather than through the                 
  mail should not be penalized for that decision.  The current                 
  fee structure for vehicle registration  renewal imposes such                 
  a penalty.                                                                   
                                                                               
  HB 363 would repeal  the motor vehicle registration  fee for                 
                                                                               
                                5                                              
                                                                               
                                                                               
  walk-in customers imposed by a legislative  act in 1993.  He                 
  added  that the  fee  has increased  the  Division of  Motor                 
  Vehicle's (DMV's) revenue  stream but has not  increased the                 
  efficiency  of  operations   at  the  DMV  offices.     This                 
  legislation would eliminate the $10 penalty charge for those                 
  walking  into  the office  and would  replace  it with  a $5                 
  dollar increase to all vehicle registrations.                                
                                                                               
  Co-Chair Larson distributed  a proposed committee substitute                 
  of that  legislation.   He explained  that Section  #2 would                 
  reduce vehicle registration  by $10  dollars if that  amount                 
  was mailed to the  Department of Public Safety.   Section #3                 
  would allow fees to be paid by credit cards over the  phone.                 
  Sections #3-#5 raises all  fees by $10 dollars.   Section #9                 
  would  allow  municipalities  and  boroughs  to   impose  an                 
  additional $3 dollar fee on vehicle registration which would                 
  be  allocated   to  municipalities  for   Emergency  Medical                 
  Services (EMS).                                                              
                                                                               
  Co-Chair  Larson  distributed   a  copy   of  Amendment   #1                 
  explaining  that  the  State should  not  be  providing free                 
  services for any license fee.                                                
                                                                               
  DON MOORE,  (TESTIFIED VIA TELECONFERENCE),  MATSU, spoke in                 
  support  of  the  proposed  legislation.   He  advised  that                 
  registration  would be  the best  place  to collect  the new                 
  fees.  Representative Martin commented  that, currently, DMV                 
  takes eight (8) percent  of the fees received and  that they                 
  need fifteen  (15) percent to break even.   He asked how the                 
  municipalities are  currently paying  for emergency  medical                 
  services.  Mr. Moore replied those fees are paid for through                 
  local property tax.                                                          
                                                                               
  JAY DELANY, DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT                 
  OF PUBLIC SAFETY, stated that the motor vehicle registration                 
  tax is a fixed schedule of taxes which applies only to those                 
  municipalities  which  have  adopted  it   and  that  it  is                 
  collected based on a resident's registration address.                        
                                                                               
  JANET SMALLY,  DOCTOR, MEDICAL  DIRECTOR, EMERGENCY  MEDICAL                 
  SERVICES,  PALMER,  noted that  Alaska offers  challenges to                 
  emergency medical care that  are not found in  other places.                 
  She added that unintentional injury is the leading  cause of                 
  death of people in  Alaska between the ages of 4 -  45.  Ms.                 
  Smally strongly urged  the Committee to accept  the proposed                 
  legislation and the increased rate for EMS services.                         
                                                                               
  MARK  JOHNSON,  CHIEF, EMERGENCY  MEDICAL  SERVICES SECTION,                 
  DEPARTMENT OF HEALTH  AND SOCIAL SERVICES, stated  that DHSS                 
  supports the concept  of the legislation and  would defer to                 
  the  Department  of  Public Safety  for  any  administrative                 
                                                                               
                                6                                              
                                                                               
                                                                               
  issues.  He  noted that the amount  of funds granted to  the                 
  EMS  operations is  never enough  for the  number of  people                 
  served each year  by the EMS system.   Currently, the way in                 
  which  an increased  level of service  has been  provided to                 
  state residents has  been through  local cities and  borough                 
  support.                                                                     
                                                                               
  STEVE  O'CONNER, CHAIR,  ALASKA  COUNCIL  OF  THE  EMERGENCY                 
  MEDICAL  SERVICES,   KENAI,  reiterated  that   the  Council                 
  receives the benefit of the proposed funding.  He urged that                 
  should the legislation pass, it  not reduce funding from EMS                 
  grants.  Those funds currently provide the infrastructure to                 
  give  local communities  the ability to  assume more  of the                 
  service burden.                                                              
                                                                               
  JUANITA HENSLEY, CHIEF OF DRIVER SERVICES, DIVISION OF MOTOR                 
  VEHICLES, DEPARTMENT OF PUBLIC  SAFETY, explained the credit                 
  card provision to Representative Therriault.  She added that                 
  the  Division  does  not feel  that  a  $5  charge would  be                 
  incentive to keep people  from coming into the office.   She                 
  added that determination would be a legislative call.                        
                                                                               
  She  concluded  that at  this  time the  Department collects                 
  motor vehicle  taxes for:  Anchorage,  Fairbanks, Ketchikan,                 
  Nome,  Bethel,  Unalaska,  Matsu  Borough,  Kodiak  Borough,                 
  Nanana,   Petersburg,   Dillingham,   Kenai  Peninsula   and                 
  Whittier.                                                                    
                                                                               
  HB 363 was HELD in Committee for further consideration.                      
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:00 A.M.                                          
                     HOUSE FINANCE COMMITTEE                                   
                         March 11, 1994                                        
                            8:30 A.M.                                          
                                                                               
  TAPE HFC 94 - 57, Side 2, #000 - end.                                        
  TAPE HFC 94 - 58, Side 1, #000 - #659.                                       
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the  House Finance Committee  meeting                 
  to order at 8:30 A.M.                                                        
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson               Representative Foster                          
  Co-Chair MacLean              Representative Martin                          
  Vice-Chair Hanley             Representative Therriault                      
  Representative Brown          Representative Parnell                         
  Representative Grussendorf                                                   
                                                                               
                                7                                              
                                                                               
                                                                               
  Representative Hoffman  and Representative Navarre  were not                 
  present for the meeting.                                                     
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Representative  Joe  Green;  Representative  Pete Kott;  Ken                 
  Boyd,  (testified  via  teleconference),   Deputy  Director,                 
  Division of Oil  and Gas,  Department of Natural  Resources;                 
  Jerry Gallagher, Legislative Liaison,  Department of Natural                 
  Resources; Jay Dulany, Director, Division of Motor Vehicles,                 
  Department of  Public Safety; Juanita Hensley,  Chief Driver                 
  Services,  Department of Public Safety; Mark Johnson, Chief,                 
  Emergency Services Section, Department of  Health and Social                 
  Services;   Janet   Smally,  Physician,   Emergency  Medical                 
  Services,    Palmer;    Walt    Furnace,   (testified    via                 
  teleconference),  General  Manager, Alaska  Support Industry                 
  Alliance,   Anchorage;   Cliff   Burglin,   (testified   via                 
  teleconference),  Fairbanks;  Don   Moore,  (testified   via                 
  teleconference),  Anchorage;  Steve O'Conner,  Chair, Alaska                 
  Council of the Emergency Medical Services, Kenai.                            
                                                                               
  SUMMARY                                                                      
                                                                               
  HB 363    An  Act  repealing  an  additional  fee  for motor                 
            vehicle registration not conducted by mail.                        
                                                                               
            HB  363  was   HELD  in   Committee  for   further                 
            consideration.                                                     
                                                                               
  HB 199    An  Act  providing  for oil  and  gas  exploration                 
            licenses, and oil and gas leases, in certain areas                 
            of the state; and providing for an effective date.                 
                                                                               
            CS HB 199 (O&G) was reported out of Committee with                 
            a "do pass" recommendation and  with a fiscal note                 
            by  the  Department  of  Natural  Resources  dated                 
            2/09/94.                                                           
                                                                               
  HOUSE BILL 199                                                               
                                                                               
       "An Act providing for oil and gas exploration licenses,                 
       and oil and gas leases, in  certain areas of the state;                 
       and providing for an effective date."                                   
                                                                               
                                                                               
  Representative Brown provided the Committee with a packet of                 
  amendments  to  CS  HB  199   (O&G).    [Copies  on   file].                 
  Representative Brown explained Amendment #1  to Page 6, Line                 
  29, deleting  "must" and inserting  "may".  She  thought the                 
  language change  would address  the State's  ability to  use                 
  exploration licensing  within the control of  the Department                 
                                                                               
                                8                                              
                                                                               
                                                                               
  of Natural Resources  (DNR) adding that the  amendment would                 
  provide DNR more flexibility.                                                
                                                                               
  KEN BOYD, (TESTIFIED  VIA TELECONFERENCE), DEPUTY  DIRECTOR,                 
  DIVISION OF OIL  AND GAS,  DEPARTMENT OF NATURAL  RESOURCES,                 
  commented that the word "must" is  used in order to indicate                 
  that the State is serious about the program and that the oil                 
  companies  should  prepare  in  advance  for  that  program.                 
  Discussion amongst Committee  members followed regarding the                 
  feasibility of the amendment.                                                
                                                                               
  Representative Brown MOVED to adopt Amendment #1.   [Copy on                 
  file].  There was OBJECTION to the motion.                                   
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf.                                      
       OPPOSED:       Parnell,  Therriault,   Foster,  Hanley,                 
                      Martin, Larson.                                          
                                                                               
  Representatives  Navarre,  Hoffman   and  MacLean  were  not                 
  present for the vote.                                                        
                                                                               
  The MOTION FAILED (2-6).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #2.   [Copy on                 
  file].  She  stated that the  amendment would add "the  area                 
  described in AS 38.05.140(f)" to Page 3, Line 3.  Currently,                 
  there is a provision in that section stating that leases can                 
  be issued  in the offshore area of  Bristol Bay and would be                 
  accessed  by  directional  drilling.   The  addition  of the                 
  amendment  would clarify  that  the same  restriction  would                 
  apply to licenses as well as leases.                                         
                                                                               
  REPRESENTATIVE JOE GREEN  replied that there are  many areas                 
  in which  there is  a subsurface  lease which  would not  be                 
  accessible.  He  stated that the  amendment would not be  in                 
  the best interest of the State.                                              
                                                                               
  Mr. Boyd added that areas that are off limits to leasing are                 
  also off limits to licensing.  He pointed out that  there is                 
  currently an existing statute which  defines limitations and                 
  recommended that the legislation should be held to that same                 
  standard  as currently applies.   Representative Brown MOVED                 
  TO WITHDRAW the motion  to adopt Amendment #2.   There being                 
  NO OBJECTION, it was so ordered.                                             
                                                                               
  Representative Brown MOVED  to adopt  Amendment #3 [Copy  on                 
  file]  inserting  new  language to  Page  3,  Line  9.   The                 
  language would make  it explicate that the  Commissioner for                 
  DNR could revise  a land licensing determination.   Mr. Boyd                 
  inquired if the  amendment would  allow the Commissioner  to                 
                                                                               
                                9                                              
                                                                               
                                                                               
  change  the  project  in midstream.    Representative Hanley                 
  asked if the amendment would give the Commissioner authority                 
  to remove land from determination before it was leased.                      
                                                                               
  Representative  Brown thought  that  the Commissioner  could                 
  adopt regulations  clarifying the process  before operations                 
  began.  Representative Brown stated that current language is                 
  "open ended" and that the amendment would provide  a logical                 
  process for the Department.   Representative Hanley asked if                 
  the Commissioner  would have  the authority  to revisit  the                 
  terms and conditions of  that lease.  Mr. Boyd  replied that                 
  there  are  already  provisions   in  statute  allowing  the                 
  Commissioner to place conditions on leases.                                  
                                                                               
  Representative Brown MOVED  TO AMEND  Amendment #3, Page  3,                 
  Line  10,  deleting  "subject  to"  and  inserting  "offered                 
  under".  The language would clarify that once the license is                 
  issued, the Commissioner would not  have authority to change                 
  it.   The language change would be  required in advance of a                 
  proposal  or  project and  would  clearly indicate  that the                 
  State  would  not  intervene  after  a  license  is  issued.                 
  Representative  Foster  OBJECTED  to  the  MOTION  TO  AMEND                 
  Amendment #3.                                                                
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell, Therriault, Brown, Grussendorf,                 
  Hanley                   MacLean.                                            
       OPPOSED:       Foster, Martin, Larson.                                  
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION PASSED (6-3).                                                     
                                                                               
  Representative Brown MOVED to adopt Amendment #3.  Following                 
  discussion, there was OBJECTION to adopting Amendment #3.                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, MacLean.                             
       OPPOSED:       Therriault,   Foster,  Hanley,   Martin,                 
                      Parnell, Larson.                                         
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED (3-6).                                                     
                                                                               
  Representative Brown  MOVED to adopt Amendment #4.  [Copy on                 
  file].  She  explained that Amendment  #4 would pick up  two                 
  royalties at the discretion of  the Commissioner then making                 
                                                                               
                               10                                              
                                                                               
                                                                               
  it parallel to competitive provisions.   The amendment would                 
  add Section (B), a  fixed royalty and fixed profit  share to                 
  the competitive  provision of  12.5%.   Representative Green                 
  stated he opposed the amendment, adding that there would  be                 
  a royalty change upon unitization  and that production would                 
  be "shut-in".   The amount of  that royalty would be  twenty                 
  (20) percent.  The removal  of ELF has caused some wells  to                 
  be prematurely  "shut-in".  He  added that  there are  large                 
  numbers of  wells in  Alaska which are  marginal status  and                 
  that any indication of a greater  burden to the oil industry                 
  would be detrimuntal.                                                        
                                                                               
  Representative Hanley asked  if the  language in Section  #3                 
  would allow  the Commissioner of DNR the authority to impose                 
  the items listed in Amendment #4.  Mr. Boyd replied that the                 
  Department would  not object  to the  amendment although  he                 
  currently does have that authority.                                          
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Brown, Grussendorf, Larson, MacLean.                     
       OPPOSED:       Foster,    Hanley,    Martin,   Parnell,                 
                      Therriault.                                              
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  meeting.                                                                     
                                                                               
  The MOTION FAILED, (4-5).                                                    
                                                                               
  Representative  Grussendorf  MOVED  to  adopt  Amendment  #5                 
  stating that the amendment would provide authority to remove                 
  the licensing  process from Alaska's marine areas.  [Copy on                 
  file].                                                                       
                                                                               
  (Tape Change, HFC 94-58, Side 1).                                            
                                                                               
  Mr.  Boyd  stated  that  the  Department could  not  support                 
  Amendment #5.  He pointed out  that many critical areas have                 
  already been  removed in  formulating the  legislation.   He                 
  advised that by  removing the marine areas,  the legislation                 
  would be diluted, which is not warranted.                                    
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Grussendorf, Brown.                                      
       OPPOSED:       Foster,    Hanley,    Martin,   Parnell,                 
                      Therriault, MacLean, Larson.                             
                                                                               
  Representatives Hoffman and Navarre were not present for the                 
  vote.                                                                        
                                                                               
  The MOTION FAILED, (2-7).                                                    
                                                                               
                               11                                              
                                                                               
                                                                               
  WALT  FURNACE,  (TESTIFIED   VIA  TELECONFERENCE),   GENERAL                 
  MANAGER,  ALASKA  SUPPORT INDUSTRY  ALLIANCE, REPRESENTATING                 
  THE ALASKA JUDICIAL COUNCIL, ANCHORAGE,  spoke in support of                 
  HB  199.  He added that the  legislation is timely and given                 
  the  revenue  depletion,  the  legislation  is  designed  to                 
  encourage development.   Mr.  Furnace urged  passage of  the                 
  bill.                                                                        
                                                                               
  Representative  Parnell MOVED to report  CS HB 199 (O&G) out                 
  of Committee with individual recommendations and with a zero                 
  fiscal note.  There being NO OBJECTION, it was so ordered.                   
                                                                               
  CS  HB 199 (O&G)  was reported out  of Committee with  a "do                 
  pass"  recommendation and  with a  zero fiscal  note by  the                 
  Department of Natural Resources dated 2/09/94.                               
                                                                               
  HOUSE BILL 363                                                               
                                                                               
       "An Act repealing  an additional fee for  motor vehicle                 
       registration not conducted by mail."                                    
                                                                               
  REPRESENTATIVE PETER  KOTT  provided the  Committee with  an                 
  overview of  HB 363.   He  stated that  full and  unhindered                 
  access to State government is an important element of a free                 
  society.  An individual who desires to conduct business with                 
  the  state in a face-to-face meeting rather than through the                 
  mail should not be penalized for that decision.  The current                 
  fee structure  for vehicle registration renewal imposes such                 
  a penalty.                                                                   
                                                                               
  HB 363 would repeal  the motor vehicle registration fee  for                 
  walk-in customers imposed by a legislative  act in 1993.  He                 
  added  that  the fee  has  increased the  Division  of Motor                 
  Vehicle's (DMV's) revenue  stream but has not  increased the                 
  efficiency  of  operations   at  the  DMV  offices.     This                 
  legislation would eliminate the $10 penalty charge for those                 
  walking  into  the office  and would  replace  it with  a $5                 
  dollar increase to all vehicle registrations.                                
                                                                               
  Co-Chair Larson distributed a proposed committee  substitute                 
  of that legislation.   He  explained that  Section #2  would                 
  reduce vehicle registration  by $10  dollars if that  amount                 
  was mailed to the  Department of Public Safety.   Section #3                 
  would allow fees to be paid by credit cards  over the phone.                 
  Sections #3-#5 raises all  fees by $10 dollars.   Section #9                 
  would   allow  municipalities  and  boroughs  to  impose  an                 
  additional $3 dollar fee on vehicle registration which would                 
  be  allocated   to  municipalities  for   Emergency  Medical                 
  Services (EMS).                                                              
                                                                               
                                                                               
                               12                                              
                                                                               
                                                                               
  Co-Chair  Larson   distributed  a   copy  of  Amendment   #1                 
  explaining  that  the  State should  not  be  providing free                 
  services for any license fee.                                                
                                                                               
  DON MOORE,  (TESTIFIED VIA TELECONFERENCE), MATSU,  spoke in                 
  support  of  the  proposed  legislation.   He  advised  that                 
  registration  would  be the  best place  to collect  the new                 
  fees.   Representative Martin commented that, currently, DMV                 
  takes eight (8) percent  of the fees received and  that they                 
  need fifteen (15) percent to break  even.  He asked how  the                 
  municipalities are  currently paying  for emergency  medical                 
  services.  Mr. Moore replied those fees are paid for through                 
  local property tax.                                                          
                                                                               
  JAY DELANY, DIRECTOR, DIVISION OF MOTOR VEHICLES, DEPARTMENT                 
  OF PUBLIC SAFETY, stated that the motor vehicle registration                 
  tax is a fixed schedule of taxes which applies only to those                 
  municipalities  which  have  adopted  it   and  that  it  is                 
  collected based on a resident's registration address.                        
                                                                               
  JANET  SMALLY, DOCTOR,  MEDICAL DIRECTOR,  EMERGENCY MEDICAL                 
  SERVICES,  PALMER, noted  that Alaska  offers  challenges to                 
  emergency medical care that  are not found in other  places.                 
  She added that unintentional injury  is the leading cause of                 
  death of  people in Alaska between the ages  of 4 - 45.  Ms.                 
  Smally strongly urged  the Committee to accept  the proposed                 
  legislation and the increased rate for EMS services.                         
                                                                               
  MARK  JOHNSON, CHIEF,  EMERGENCY  MEDICAL SERVICES  SECTION,                 
  DEPARTMENT OF HEALTH  AND SOCIAL SERVICES, stated  that DHSS                 
  supports the  concept of the legislation and  would defer to                 
  the  Department  of  Public  Safety  for  any administrative                 
  issues.   He noted that the  amount of funds granted  to the                 
  EMS  operations  is never  enough for  the number  of people                 
  served  each year by the EMS  system.  Currently, the way in                 
  which an  increased level  of service has  been provided  to                 
  state residents has  been through  local cities and  borough                 
  support.                                                                     
                                                                               
  STEVE  O'CONNER,  CHAIR,  ALASKA COUNCIL  OF  THE  EMERGENCY                 
  MEDICAL  SERVICES,   KENAI,  reiterated  that   the  Council                 
  receives the benefit of the proposed funding.  He urged that                 
  should the legislation pass, it not  reduce funding from EMS                 
  grants.  Those funds currently provide the infrastructure to                 
  give local  communities the  ability to assume  more of  the                 
  service burden.                                                              
                                                                               
  JUANITA HENSLEY, CHIEF OF DRIVER SERVICES, DIVISION OF MOTOR                 
  VEHICLES, DEPARTMENT OF PUBLIC SAFETY,  explained the credit                 
  card provision to Representative Therriault.  She added that                 
  the  Division  does  not feel  that  a  $5  charge would  be                 
  incentive to keep people  from coming into the office.   She                 
                                                                               
                               13                                              
                                                                               
                                                                               
  added that determination would be a legislative call.                        
                                                                               
  She  concluded  that at  this  time the  Department collects                 
  motor vehicle  taxes for:   Anchorage, Fairbanks, Ketchikan,                 
  Nome,  Bethel,  Unalaska,  Matsu  Borough,  Kodiak  Borough,                 
  Nanana,   Petersburg,   Dillingham,   Kenai  Peninsula   and                 
  Whittier.                                                                    
                                                                               
  HB 363 was HELD in Committee for further consideration.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:00 A.M.                                          
                                                                               
                                                                               
                               14                                              

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