Legislature(2015 - 2016)BUTROVICH 205
02/29/2016 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB170 | |
| HB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 170 | TELECONFERENCED | |
| += | HB 137 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 170-DNR FEES FOR GEOLOGICAL SERVICES
3:34:11 PM
CHAIR GIESSEL announced consideration of SB 170 and noted that
the bill is designed to make the Division of Geological and
Geophysical Survey (DGGS), in the Department of Revenue (DNR),
more self-sufficient, so it will rely less on general funds. A
few years ago the legislature authorized DGGS to purchase a
Sam's Club building in East Anchorage. Geological materials,
such as core samples from oil and mineral exploration, had been
stored in Conex containers in Eagle River, and they were
leaking, causing sample degeneration. She stated that the
material was a library of information for future explorers. The
DGGS is not allowed to charge people to view the cores, which
could help support the facility and the staffing. She said other
states charge for this service, and SB 170 authorizes DGGS to
receive payment from explorers who want to see the cores.
3:35:05 PM
SENATOR STOLTZE joined the committee.
3:36:28 PM
AKIS GIALOPSOS, Staff to Senator Giessel and the Senate
Resources Committee, Alaska State Legislature, explained that
Section 1 of SB 170 adds DGGS to [AS 37.05.146(c), a list of
program receipts to be accounted for separately]. Section 2
changes the requirement that DGGC fees and receipts go into the
general fund, he stated, and Section 3 is the heart of SB 170,
allowing the DGGS to institute fee structures for services,
equipment, and the use of DGGS facilities.
3:38:35 PM
SENATOR WIELECHOWSKI asked about Section 2, which deletes the
requirement that money from selling reports and maps will go
into the general fund.
MR. GIALOPSOS said that Section 3 will allow the division to
charge for equipment and services and "was going to be now
accounted for in Section 1 of the bill, which is the receipt
authority." He added that Section 2 would remove the reason for
the fees being deposited into the general fund.
SENATOR MICCICHE asked if other departments have similar
authorization to charge for services and keep the funds.
MR. GIALOPSOS answered that the authorization in SB 170 would be
the "88th version of receipt authority being designated in the
state's ledger book." The next witness can clarify which
divisions of DNR are striving for self-sufficiency by using
receipt authority, he suggested.
3:40:15 PM
STEVE MASTERMAN, State Geologist and Director, Division of
Geological and Geophysical Surveys, Department of Natural
Resources (DNR), Fairbanks, Alaska, said that the Division of
Mining, Land, and Water is transitioning from unrestricted
general funds to designated general funds. He noted that the
Division of Parks and Recreation is making that transition as
well. The Division of Forestry is funding a certification
program with industry receipts, and the Division of Agriculture
has increased fees by 20 percent to fund operations by
designated general funds. He said it is a business model for DNR
to transition to revenues that are designated by its activities,
and SB 170 would be an extension of that model.
CHAIR GIESSEL said spoke of Texas charging a fee for using a
geologic materials center, which she toured, and she asked what
other states do.
MR. MASTERMAN said there are 28 core depositories in the United
States and Canada, and of the 10 depositories that are over
25,000 square feet in size, seven charge a fee. Alaska's GMC
[geologic materials center] is 100,000 square feet, he added. Of
the smaller facilities, about half charge a fee.
3:43:36 PM
CHAIR GIESSEL noted a chart Mr. Masterman provided and asked how
fees are set.
MR. MASTERMAN answered that he is looking at fees from other
facilities. He noted that Alaska's [proposed fees] are in the
middle or lower/middle of the range. Industry has expressed
concern, "and so we are very cognizant of not charging too much
for these services." The facility should be successful but not
drive people away, he opined.
CHAIR GIESSEL asked how industry uses the GMC.
MR. MASTERMAN explained that the inventory is online and
available. Every rock in the facility has a barcode, and all are
geographically referenced and can be searched by location,
prospect, commodity type, or borehole name. He said that the
drill samples represent over 48 million feet of drilling. There
are over 330,000 surface samples and about 200,000 "thin
sections" that have been donated to the state. To gather that
information now would take tens of billions of dollars, so it is
very valuable.
SENATOR WIELECHOWSKI asked about a letter dated on February 16
where Mr. Masterman said he would not charge for donations.
MR. MASTERMAN explained that there is no charge if people give
rocks to the division.
SENATOR WIELECHOWSKI asked if school groups will be charged.
MR. MASTERMAN said no. The division received money from Walmart
to support educational uses, and the university does use the
facility for core workshops.
3:48:00 PM
SENATOR WIELECHOWSKI suggested putting such language in statute.
MR. MASTERMAN said that would be very appropriate. "We love to
have the kids come out there."
SENATOR STOLTZE said he grew up in the area and his elementary
school took him there on field trips, "and I think I'm much
enriched as a result."
SENATOR COSTELLO noted that legislators thought the issue was
addressed last session. She had visited the old center, which
looked like something from Samson and Sons. She took her boys on
a tour, and it is quite an educational opportunity, she stated.
SENATOR MICCICHE said he appreciates DNR covering its costs, but
he referred to resistance from DNR on similar efforts.
3:50:46 PM
MARY NANUWAK, representing herself, Bethel, Alaska, said all
fees should be the same for everyone except nonresidents or
attorneys who will gain from it. She spoke of hunting and
fishing fees for Native Alaskans who rely on subsistence, and
then was reminded that the current discussion related to
geologic materials. Ms. Nanuwak noted that certain Native lands
are not supposed to be occupied by state agencies, including
grave sites and subsistence areas.
CHAIR GIESSEL, finding no further comments, closed public
testimony.
SENATOR WIELECHOWSKI suggested a conceptual amendment to allow
school groups to use the GMC without a fee.
CHAIR GIESSEL suggested adding the language to Section 3.
SENATOR COSTELLO suggested it include children who are not with
a formal school group, making it less preclusive.
SENATOR MICCICHE noted that the goal is to charge industry
groups for access to the core samples.
MR. MASTERMAN agreed.
SENATOR STOLTZE suggested giving DNR the discretion to waive
fees for educational purposes, in order that preschools and
university programs, for example, have free access.
CHAIR GIESSEL proffered language such that DNR promulgate
regulations to waive fees for educational opportunities.
SENATOR WIELECHOWSKI moved conceptual amendment [1], requiring
the department to waive GMC fees for educational opportunities.
There were no objections, and it was so ordered.
3:58:08 PM
SENATOR COSTELLO moved to report SB 170, as amended, from
committee with individual recommendations and attached fiscal
notes. There being no objection, CSSB 170(RES) moved from the
Senate Resources Standing Committee.