Legislature(1993 - 1994)
04/14/1993 03:43 PM Senate RES
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* first hearing in first committee of referral
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SENATE RESOURCES COMMITTEE
April 14, 1993
3:43 p.m.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Dave Donley
MEMBERS ABSENT
Senator Al Adams
Senator Fred Zharoff
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 213(RES)(title am)
"An Act prohibiting the commissioner of natural resources from
permanently classifying state land, water, or land and water
so that mining, mineral entry and location, mineral
prospecting, and mineral leasing are precluded or are
designated an incompatible use without an act of the
legislature if the area involved contains more than 640
contiguous acres except in certain situations; and providing
for an effective date."
HOUSE JOINT RESOLUTION NO. 28
Supporting increased access near Mt. McKinley through
establishment of a visitor activity area at Kantishna.
HOUSE BILL NO. 133
"An Act amending the definition of `value' for purposes of
administration of fisheries taxes; and providing for an
effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 213 - No previous action to record.
HJR 28 - See Transportation minutes dated 3/23/93.
HB 133 - No previous action to record.
WITNESS REGISTER
Jack Phelps, Legislative Aide
% Representative Pete Kott
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on HB 213
Representative Tom Brice
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Sponsor of HJR 28.
Chad Coursey
Alaska Wilderness Resource Tourism Agency
P.O. Box 2553
Valdez, Alaska 99686
POSITION STATEMENT: Opposed HJR 28.
Lenore Sappington
Denali Citizens Council
2842 Bass
Anchorage, Alaska 99507
POSITION STATEMENT: Opposed HJR 28.
Dan Ashbrook
P.O. Box 149
Denali Park, Alaska 99755
POSITION STATEMENT: Supported HJR 28.
Joseph Fields
P.O. Box 71047
Fairbanks, Alaska 99707
POSITION STATEMENT: Opposed HJR 28.
Valerie Mundt
P.O. Box 84608
Fairbanks, Alaska 99708
POSITION STATEMENT: Supported HJR 28.
Irene Morris
Alaska Environmental Lobby
P.O. Box 22151
Juneau, Alaska 99801
POSITION STATEMENT: Opposed HJR 28.
Senator Dave Donley
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Supported HJR 28.
Clyde Stoltzfus
Department of Transportation and Public Facilities
3132 Channel Dr.
Juneau, Alaska 99801
POSITION STATEMENT: Supported HJR 28.
Connel Murray, Director
Division of Tourism
Department of Commerce and Economic Development
P.O. Box 110801
Juneau, Alaska 99811-0801
POSITION STATEMENT: Supported HJR 28.
Representative Carl Moses
State Capitol
Juneau, Alaska 99811-1182
POSITION STATEMENT: Commented on HB 133.
Paul Dick, Juneau Operation
Income and Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, Alaska 99811-0420
POSITION STATEMENT: Commented on HB 133.
Jerry McCune
United Fishermen of Alaska
211 4th Street #112
Juneau, Alaska 99801
POSITION STATEMENT: Commented on HB 133.
ACTION NARRATIVE
TAPE 93-21, SIDE A
Number 001
SENATOR MILLER called the Resources Committee meeting to order
at 3:43 p.m. and announced HB 213 (LIMIT ADMINISTRATIVE LAND
CLOSURES) to be up for consideration.
JACK PHELPS, Legislative Aide for Representative Kott, said
the Alaska Minerals Commission and the Economic Mini Summit
both supported this bill.
SENATOR MILLER closed the hearing on HB 213 and said it was
his intention to take up the bill again on Monday.
SENATOR MILLER announced HJR 28 (SUPPORT KANTISHNA AREA
TOURISM DEVELOP'T) to be up for consideration.
REPRESENTATIVE BRICE, prime sponsor of HJR 28, explained this
resolution basically supports the concept of having the state
establish a rail utility corridor that it can lease to the
private sector for the development of an electric rail
transportation system. Currently over 400,000 people are
being turned away from Denali Park who would like to go in.
This corridor would provide the access. It is environmentally
sound and is contained access.
CHAD COURSEY, Alaska Wilderness Recreation and Tourism
Association, read testimony from Nancy Lethcoe, President.
The testimony opposed HJR 28, because it is an anti-small
business bill masquerading as tourism development. He also
opposed development of a visitor activity area and the
establishment of a utility corridor into Kantishna by private
corporations.
Number 174
LENORE SAPPINGTON, Denali Citizens Council, strongly opposed
HJR 28, because a road entrance from the north side would not
be good for tourism, wildlife, or visitors. The Kantishna
Resource Management Plan, released in 1990, said commercial
development was not good for the park. HJR 28 is not an
environmentally sensitive plan.
MS. SAPPINGTON said there are rumors that people have been
turned away from the park which is simply not true. She
suggested the Finance Committee look at how much a new
corridor would really cost.
SENATOR MILLER said the co-chairmen of Finance would be
looking at that.
Number 280
DAN ASHBROOK, Denali Park, supported HJR 28. He said the
tourist trade is just going to increase and the road is
saturated now.
Number 303
JOSEPH FIELDS, Kantishna Group, Incorporated, supported HJR
28. He said Mount Denali should be accessible. There should
also be a study of tourism and its impact to the land.
Tourism should have the same standing as the other resources
of the state, MR. FIELDS said.
Number 342
VALERIE MUNDT, member of Fairbanks Chamber of Commerce,
supported HJR 28 and development in the Kantishna area by the
private sector. She said there is not a watershed in the area
that hasn't been mined. It is not yet a wilderness. Every
opportunity there has developed from mining.
MS. MUNDT suggested changing "rail utility corridor" to a
"transportation corridor."
IRENE MORRIS, Alaska Environmental Lobby, opposed HJR 28,
because it advocates aggressive pursuit of a new access route
and more development in Denali Park's Kantishna area. She
said DOT is currently conducting a location study for improved
access to Kantishna.
MS. MORRIS stated the proposed railroad would cost $189
million dollars. She asked how they would do that without
public money and who would pay to maintain and repair it?
SENATOR MILLER asked if the Alaska Environmental Lobby was
against a southern entrance. MS. MORRIS said they were not
against it. SENATOR MILLER said that many environmental
groups opposed southern development.
Number 424
SENATOR DONLEY asked if there could be essentially a circuit
of traffic from south to north. He asked what was so
sensitive in that area where mining had been a thriving
industry. MS. MORRIS said she would have to get back to them
on that.
Number 439
CLYDE STOLTZFUS, Special Assistant, Department of DOT,
supported HJR 28 and access to Kantishna, in general. He said
they are currently doing a location and environmental study
for access from the Parks Highway to McGrath, with access into
Kantishna. This resolution would not change their activity.
That is why there is a $0 fiscal note. They will look at both
road and rail access.
MR. STOTLTZFUS said there are 9 - 10 RS2477's in the northern
part of the Park. That means there has been a lot of mining
activity in the northern part of the Park - a lot more than
in the southern part. So it is actually more environmentally
benign to go into the northern part of the Park.
Number 459
CONNEL MURRAY, Director of Tourism, supported the general
concepts in HJR 28. He said Alaska is getting more and more
independent visitors (as opposed to those who come on a
"package deal"). They don't have advance arrangements made
for them. Based on mail and telephone calls to the Division
of Tourism, they know there are many thousands of visitors who
come to Alaska with the express purpose of visiting Denali who
cannot get into the park. The people who do go are jammed
into a narrow and overcrowded corridor. The addition of a
Kantishna access could double the number of people who could
enjoy the Park.
SENATOR MILLER thanked everyone for their testimony and closed
the public hearing on HJR 28.
SENATOR MILLER announced HB 133 (DEFINITION OF VALUE FOR
FISHERIES TAX) to be up for consideration.
SENATOR MILLER announced a short recess and when they came
back to order REPRESENTATIVE MOSES explained HB 133.
SENATOR LEMAN wanted assurance the cost of transportation to
a distant cannery would not be subject to the tax.
PAUL DICK, Department of Revenue, said they are looking at the
price actually paid to the fisherman. He clarified that he
would look to see what kind of deliveries were normal practice
before allowing the exemption.
TAPE 93-21, SIDE B
Number 580
REPRESENTATIVE MOSES said quite often fishermen are paid more
for cannery delivery. The fisherman would not make the
delivery unless there was some profit. But they should pay
the tax based on the price at the point of delivery.
JERRY MCCUNE, United Fishermen of Alaska, said all they want
to do is get the value of the product when it is sold. They
want the ability to tax the bonuses, ice, etc. a fishermen
gets as the complete value of the fish he sells. The current
law is unclear on this issue.
SENATOR MILLER closed the public hearing on HB 133, stating
that it would be back before the committee at its next
meeting. He adjourned the meeting at 4:40 p.m.
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