SB 30 "An Act extending the termination date of the Alaska Minerals Commission." SB 30 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Commerce and Economic Development, dated 2/10/93. SENATE BILL 30 "An Act extending the termination date of the Alaska Minerals Commission." Co-Chair Larson noted that SB 30 would extend the termination date of the Alaska Minerals Commission from 2/1/94 to 2/1/99. The Commission's annual budget of $20.4 thousand dollars is included in the FY 94 Operating Budget. SENATOR BERT SHARP spoke in support of SB 30. He asserted that the Alaska Minerals Commission is comprised of some of the best mining and resources people in Alaska. He stressed 1 that the Commission was created to make recommendations to the Governor and the Legislature on ways to mitigate any constraints, including governmental constraints, on development of minerals in the state. Commission members are appointed by the Governor, the President of the Senate and the Speaker of the House. Current members include representatives of placer, hard rock and coal mining industries and come from all areas of the state. AL CLOUGH, DEVELOPMENT SPECIALIST, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT clarified that the Commission's budget is in the Department of Commerce and Economic Development, Economic Development. Representative Brown questioned the benefit of the Commission to the people of the State of Alaska. She asked the accomplishments of the Commission. Senate Sharp stressed the Commission's role in coordinating industry and state regulation. He noted the Commission's role in creating regulations within the Department of Environmental Conservation and Department of Fish and Game. Representative Brown referred to the Commission's annual report, January 1993. She observed that the report states, "Increased user fees have been suggested as a means of offsetting the cost of providing government service as the state faces declining revenues. However, allowing state agencies to unilaterally implement user fees could result in uncontrolled increases in the cost of basic services required by citizens and businesses, allow state agencies to operated outside the legislatures's budgetary process." She stressed that user fees are expressly approved by the legislature before implementation. She expressed concern that the Alaska Minerals Commission Annual Report is spreading misinformation. Representative Therriault spoke in support of SB 30. He felt that the Commissions's level of expertise and knowledge more than offsets the cost. He noted that the Commission recommends the enactment of the Clean Air Act. Representative Foster spoke in support of SB 30. He pointed to work the Commission has done on geophysical mapping. He stressed that the Commission is assisting areas of the state to assess resources. Representative Navarre observed that some commissions pay for themselves. He stressed that the State of Alaska spends approximately .15 cents on the dollar for mineral management. He observed that the State does not receive a large revenue from minerals production. He felt "that $20.0 2 thousand dollars probably is worth investing in this (the Alaska Mineral Commission)." Representative Therriault pointed out that the Commission's budget is subject to financial restraints. Representative Brown referred to the Commission's recommendation that: "The Governor and Legislature should create economic incentives that will provide financial encouragement and help offset some of the real and perceived problems facing exploration and development in Alaska. Possible incentives that should be considered include credits for expenditures on exploration drilling and geophysics that can be deducted from claim rents, the mining license tax, production royalties, and income taxes." She stressed that the State does not receive much revenue from the minerals industry. She suggested that other factors such as world demand are of greater influence to the industry. She asked if the minerals industry could relay to the legislature their thoughts and suggestions. Mr. Clough gave a brief overview of the Alaska Mineral Commissions' accomplishments. He outlined issues that the Commission has been successful in promoting: * Municipal In-Place Resource Taxation; * Geologic and Geophysical Mapping; * Alaska Mineral and Energy Resource Education Fund (AMEREF); AMEREF raises over $100.0 thousand dollars annually through private donations to resource educators in the Alaska school system. The program is coordinated through the Department of Education; * RS2477 Access of Federal Lands; * Adding the Commissioner of Department of Commerce and Economic Development on the Resource Cabinet; * Facilitation of Local Gravel Purchases for Work by the Department of Transportation and Public Facilities. Representative Foster MOVED to report SB 30 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. 3 SB 30 was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the Department of Commerce and Economic Development, dated 2/10/93.