02/14/2006 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB392 | |
| HB398 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 398 | TELECONFERENCED | |
| = | HB 392 | ||
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 14, 2006
8:14 a.m.
MEMBERS PRESENT
Representative Kurt Olson, Co-Chair
Representative Bill Thomas, Co-Chair
Representative Pete Kott
Representative Mark Neuman
Representative Sharon Cissna
Representative Woodie Salmon
MEMBERS ABSENT
Representative Gabrielle LeDoux
COMMITTEE CALENDAR
HOUSE BILL NO. 392
"An Act authorizing the establishment of regional solid waste
management authorities."
- MOVED CSHB 392(CRA) OUT OF COMMITTEE
HOUSE BILL NO. 398
"An Act relating to disposition of revenue from certain charges
collected on valuable mineral deposits on land belonging to the
state and subject to location or lease for the extraction of
natural resources under the Alaska Land Act, and to aid to
municipalities to offset the anticipated effect of lessees'
exploration or location activities on land made subject to
extraction of valuable mineral deposits; and providing for an
effective date."
- MOVED CSHB 398(CRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 392
SHORT TITLE: SOLID WASTE MANAGEMENT AUTHORITIES
SPONSOR(s): REPRESENTATIVE(s) WILSON
01/25/06 (H) READ THE FIRST TIME - REFERRALS
01/25/06 (H) CRA, L&C
02/09/06 (H) CRA AT 8:00 AM CAPITOL 124
02/09/06 (H) Heard & Held
02/09/06 (H) MINUTE(CRA)
02/14/06 (H) CRA AT 8:00 AM CAPITOL 124
BILL: HB 398
SHORT TITLE: STATE MINERAL RESOURCE REV./MUNICIPAL AID
SPONSOR(s): REPRESENTATIVE(s) MOSES
01/27/06 (H) READ THE FIRST TIME - REFERRALS
01/27/06 (H) CRA, FIN
02/14/06 (H) CRA AT 8:00 AM CAPITOL 124
WITNESS REGISTER
REPRESENTATIVE PEGGY WILSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as the sponsor of HB 392.
ADAM BERG, Staff
to Representative Carl Moses
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 398 on behalf of the sponsor,
Representative Moses.
KEVIN RITCHIE, Executive Director
Alaska Municipal League (AML)
Juneau, Alaska
POSITION STATEMENT: Testified in support of the concept
embodied in HB 398.
BOB JUETTNER, Administrator
Aleutians East Borough
Anchorage, Alaska
POSITION STATEMENT: Explained why the Aleutians East Borough
requested the introduction of HB 398.
DICK MYLIUS, Acting Director
Division of Land, Mining and Water
Department of Natural Resources
Anchorage, Alaska
POSITION STATEMENT: During hearing of HB 398, answered
questions.
ACTION NARRATIVE
CO-CHAIR BILL THOMAS called the House Community and Regional
Affairs Standing Committee meeting to order at 8:14 a.m.
Representatives Thomas, Olson, Neuman, and Kott were present at
the call to order. Representatives Cissna and Salmon arrived as
the meeting was in progress.
HB 392-SOLID WASTE MANAGEMENT AUTHORITIES
8:14:54 AM
CO-CHAIR THOMAS announced that the first order of business would
be HOUSE BILL NO. 392, "An Act authorizing the establishment of
regional solid waste management authorities."
8:14:59 AM
REPRESENTATIVE KOTT moved to adopt CSHB 392, Version 24-
LS1227\I, Bullock, 2/13/06, as the working document. There
being no objection, Version I was before the committee.
8:15:22 AM
REPRESENTATIVE PEGGY WILSON, Alaska State Legislature, sponsor,
informed the committee that the only change in Version I is the
language allowing the opportunity for a community to opt-out [of
the solid waste management authority]. She then suggested that
the committee adopt the following changes to Version I:
Page 4, line 12, following "Powers."
Insert "(a)"
Page 6, line 1, following "retentions;"
Insert "(b)"
CO-CHAIR THOMAS, upon hearing no objections, announced that the
aforementioned conceptual amendment was adopted.
8:16:46 AM
REPRESENTATIVE KOTT moved to report CSHB 392, Version 24-
LS1227\I, Bullock, 2/13/06, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 392(CRA) was reported from the
House Community and Regional Affairs Standing Committee.
HB 398-STATE MINERAL RESOURCE REV./MUNICIPAL AID
8:17:11 AM
CO-CHAIR THOMAS announced that the final order of business would
be HOUSE BILL NO. 398, "An Act relating to disposition of
revenue from certain charges collected on valuable mineral
deposits on land belonging to the state and subject to location
or lease for the extraction of natural resources under the
Alaska Land Act, and to aid to municipalities to offset the
anticipated effect of lessees' exploration or location
activities on land made subject to extraction of valuable
mineral deposits; and providing for an effective date."
8:17:28 AM
ADAM BERG, Staff to Representative Carl Moses, Alaska State
Legislature, explained that HB 398 would provide aide to
municipalities incurring expenses directly associated with
resource development. The intent is to provide relief to areas
that have had little or no resource extraction within their
municipal boundaries, he said. The legislation proposes
capturing 10 percent of existing land application filing fees,
licenses, license fees, and other monies received excluding oil,
gas, mining, coal, and other resource royalties. The
legislation was introduced because municipalities are incurring
expenses due to new development, although the existing fees go
to the state. Furthermore, there is no longer a municipal
revenue sharing program and thus nothing is being returned to
municipalities, which deserve to at least recoup their expenses
for resource development.
8:18:54 AM
REPRESENTATIVE NEUMAN moved that the committee adopt Conceptual
Amendment 1, as follows:
Page 2, line 21:
Delete "are remote"
8:19:55 AM
REPRESENTATIVE CISSNA inquired as to whether that would impact
the fiscal note.
REPRESENTATIVE NEUMAN said that he didn't know.
[Conceptual Amendment 1 was treated as adopted.]
8:20:50 AM
MR. BERG pointed out that the committee packet should include an
amendment that was requested by the Department of Natural
Resources (DNR). He explained that the money being captured
from the 10 percent was originally capturing money from more
resource areas than intended. He related that the sponsor does
support the amendment.
8:21:27 AM
REPRESENTATIVE KOTT moved that the committee adopt [Amendment
2], labeled 24-LS1421\Y.1, Chenoweth, 2/13/06, which read:
Page 3, line 23, following "activities":
Insert "and activities involving discovery and
the right to prospect for and develop minerals".
Page 3, line 24:
Delete "that are described in
AS 38.05.035(a)(10)"
Insert "under this chapter that are identified in
AS 37.05.535(b)"
There being no objection, [Amendment 2] was adopted.
8:21:49 AM
KEVIN RITCHIE, Executive Director, Alaska Municipal League
(AML), informed the committee that AML strongly supports the
concept of the legislation. "The concept of making sure that
municipalities have the resources to serve the public as well as
possible is very important," he opined. He further opined that
there are many costs associated with exploration and the initial
startup of any business.
8:22:31 AM
BOB JUETTNER, Administrator, Aleutians East Borough, related
that the Aleutians East Borough requested the introduction of HB
398 based upon its experience with the Alaska Peninsula oil and
gas leasing sale of October 2005. Upon opening the Alaska
Peninsula, the borough discovered that there are many expenses
before and after the sale and before the exploration and
development phase. In developing HB 398, Mr. Juettner explained
that the intent was to target those areas new to exploration and
where the governments didn't have experience nor the revenue
necessary for such development. The intent was also to make the
legislation temporary because the Aleutians East Borough
believes that at some point municipalities have the obligation
to convert development into a revenue stream. Therefore, the
legislation specifies that providing [the funds] for five years
would provide the governments the opportunity to develop tax
streams while allowing the government a fair amount of
independence from the developer. Mr. Juettner stated that the
Aleutians East Borough is in support of development and wants
the benefits of that to accrue to the state as well as the local
residents in the area of development.
8:26:00 AM
CO-CHAIR THOMAS, upon determining no one else wished to testify,
closed public testimony.
8:26:05 AM
REPRESENTATIVE CISSNA inquired as to how sensitive the fiscal
note is to the amendments.
8:26:38 AM
DICK MYLIUS, Acting Director, Division of Land, Mining and
Water, Department of Natural Resources, answered that the
amendments wouldn't change DNR's zero fiscal note, which was
mainly provided to illustrate the revenue that would be provided
by this legislation. He related that the revenues [DNR receives
as fees, charges, and miscellaneous receipts from the location,
license, or lease activities on state land] amounts to $2.8
million and thus the 10 percent required under HB 398 [to be
deposited into a newly created mineral receipts account] would
be $280,000 not to mention the oil and gas money that would also
be included.
8:27:37 AM
REPRESENTATIVE NEUMAN moved to report HB 398, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, CSHB 398(CRA) was
reported from the House Community and Regional Affairs Standing
Committee.
8:28:10 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:28 a.m.
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