CS FOR SENATE BILL NO. 118(FIN) "An Act relating to critical and essential minerals." 2:17:10 PM SENATOR KELLY MERRICK, SPONSOR, reviewed the bill with prepared remarks: Senate Bill 118 lays the groundwork for Alaska to maximize its potential in the critical minerals sector, while safeguarding environmental integrity and fostering economic growth. Passing this bill will not only benefit Alaska but our nation's security. Co-Chair Foster asked for a review of the fiscal notes. 2:17:54 PM SANDRA MOLLER, DIRECTOR, DIVISION OF COMMUNITY AND REGIONAL AFFAIRS, DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT (via teleconference), relayed that the fiscal note had changed and included $40,000 [annual cost]. She highlighted the bill's requirement for the division to create a report to the legislature. The division did not have staff to complete the report and would contract the report requirements out. Co-Chair Foster stated that the fiscal note was OMB component 2879. He asked if Ms. Moller's fiscal note was dated April 16, 2024. Ms. Moller responded affirmatively. Representative Galvin thought the report seemed very important to Alaska and the nation. She was surprised the report was not already done by the state in some form. She asked for detail. KERRY CROCKER, STAFF, SENATOR KELLY MERRICK, responded that 30 other states had the report in addition to all of the Canadian provinces. He believed there was $2 million in general funding in the state's capital budget for mapping. He agreed there should be a report for critical minerals. Representative Hannan asked why the sponsor had chosen to have the report generated through DCCED instead of the Department of Natural Resources (DNR). She assumed the minerals and geologists were under DNR. Mr. Crocker responded that the state had them in DCCED and DNR. He explained that DCCED had more of a role in innovation, marketing, and transportation. He detailed that one of the major factors pertaining to critical minerals was supply chain. He elaborated that when the United States Geological Survey (USGS) created the critical mineral list, supply chain was a major factor. Representative Stapp thanked the sponsor for bringing the bill forward. He thought it was one of the more critical things the state could do to help fight communism worldwide. 2:21:23 PM Co-Chair Foster asked for a review of the second fiscal note. He did not see DNR online. He thought the note looked fairly basic and asked Mr. Crocker for a review. Mr. Crocker noted that he did not have a copy of the fiscal note on hand. He believed the DNR fiscal note showed the cost for personal services to create the report. He believed the cost was $35,000. Co-Chair Foster remarked that the fiscal note, OMB component 1031 showed a cost of $45,000. He believed a representative from DNR was calling in. JENNIFER ATHEY, ACTING OPERATIONS MANAGER, DIVISION OF GEOLOGICAL AND GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES (via teleconference), reviewed the DNR fiscal note for $45,000 in unrestricted general funds (UGF) in FY 25. The fiscal note reflected the cost to prepare a report to the legislature regarding the state's current and potential production of critical and essential minerals and related information such as permitting and exploration incentives. The staff position with appropriate scientific expertise selected to complete the work was federally funded. The note included a one-time UGF increment to allow the department to utilize the position for the short-term project and report to the legislature. 2:24:15 PM Co-Chair Johnson MOVED to REPORT CSSB 118(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, CSSB 118(FIN) was REPORTED out of committee with nine "do pass" recommendations and with two previously published fiscal impact notes: FN1 (DNR) and FN3 (CED). 2:25:32 PM AT EASE 2:26:22 PM RECONVENED