SENATE BILL NO. 175 An Act relating to state mining law, to methods of locating mining claims, to the granting of larger mining claims using a legal subdivision based on rectangular survey descriptions, and to mandatory rental payments for prospecting rights. JULI LUCKY, STAFF, SENATOR RICK HALFORD, stated that SB 175 proposes changes to the Alaska State Mining Law that would reduce the mining claim processing time and cost for the State, while improving the accuracy and accessibility of the claim location data. The changes affect methods of locating mining claims, rental payments and other related items. They would have no effect on the rights established by claims. Ms. Lucky noted that the Department of Natural Resources currently has a substantial backlog of claims that have been filed but are not yet on the land status plats. Changes proposed by SB 175 would improve the situation by allowing the Department to use a format, whereby, mining claim corners conform to an aliquot part legal description and can then be electronically entered onto (or removed from) the State land status plats. Ms. Lucky stated that the changes proposed by SB 175 would incorporate several years of work between the mining industry and the Alaska Department of Natural Resources. The primary concern for DNR is the amount of manpower, time and cost that are now required to process the paperwork for mining claims. Ms. Lucky pointed out that from the viewpoint of the mining industry, the changes would simplify the process of staking mining claims and reduce errors during the staking, recording and filing process. One change would make it simpler and more feasible to utilize the Global Positioning Systems (GPS) to establish claim corners in the field. Another change would allow the location of a larger size of mining claim, which would decrease the number of stakes in the field and reduce the amount of paperwork by 75%. The existing claim location system will continue to be available for those situations where the new positioning method is not practical. Ms. Lucky concluded that other changes proposed regard prospecting sites including the establishment of a rental charge, repeal of the limitation of the number of sites that can be held, and clarification of the terms. Ms. Lucky stated that SB 175 is supported by the Alaska Miners Association and the Department of Natural Resources. Representative Phillips emphasized that the mining industry would be very happy with the change proposed in the legislation. Representative J. Davies asked for more information regarding the rental aspects. Ms. Lucky explained that the labor rate would remain in place. There would be a change in the rental rates dealing with the prospecting sites. BOB LEOFFLER, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, DIVISION LAND, MINING AND WATER, DEPARTMENT OF NATURAL RESOURCES, stated the SB 175 is a solution to a problem that the Department has had. He pointed out that over the last few years, the mining claims have been expanding. New mining claims average about ten thousand a year and have for the past five years. As a result, the Department has had a difficult time keeping up. It takes four to six months to process a mining claim. He noted that SB 175 would provide for some automation. The bill will not change the relationship between the mining industry and the State but would allow for better service. Mr. Leoffler addressed the fiscal note. He stated that the bill could make it more efficient for the State and the locator. It applies to renting the processing sites. The Department believes that would result in $150 thousand dollars, new income from the mining industry. Approximately half of that would go to the permanent fund. The fiscal note attempts to capture the other half, so the Department could decrease the time to process a claim to a six-week period. The bill recommends using funding, which the industry pays, to bring the service level to a more agreeable time. Representative J. Davies asked if there would be less incentive to develop the lands by making the system more efficient. STEVE BORELL, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE DIRECTION, ALASKA MINERS ASSOCIATION, ANCHORAGE, voiced support for the legislation. He stated that the provision of the bill affects the process of location, which would not decrease the rights established by the claims. Mr. Borell noted that the provisions of the legislation would provide for more rapid distribution of information to the public. He urged enactment of the legislation at the earliest possible date. Representative Foster inquired about the existing system claims. Mr. Borell replied that they would remain the same. Representative Foster wanted a guarantee that the small village people would not be required to purchase a GPS system. Mr. Borell acknowledged that they would not. Representative Foster MOVED to report SB 175 out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 175 was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Natural Resources dated 2/29/00.