HOUSE BILL NO. 99 "An Act extending the termination date of the Alaska Minerals Commission." 2:38:09 PM REPRESENTATIVE DAN SADDLER, SPONSOR, explained the bill. The Alaska Minerals Commission would be extended for an additional 10 years. He read from a statement. House Bill 99 extends the Alaska Minerals Commission until February 1, 2024 and provides for terms and term limits for those who serve on the Commission. The Commission is currently set to expire on February 1, 2024, and commissioners are not currently subject to terms or term limits. The Commission was created in 1986 and charged with making recommendations to the Governor and the Legislature on ways to mitigate constraints on the development of minerals in Alaska. The Commission consists of 11 members: five appointed by the Governor, three b the Speaker of the House, and three by the President of the Senate. Each member must have at least five years of experience in the minerals industry. At least one member must reside in a rural community. Current commissioners represent the placer, hard rock, and coal mining industries across the state. The Commission annually reports its recommendations to the Governor and the Legislature during the first ten days of the legislative session. Key recommendations made by the Commission and implemented by the Legislature since the Commission's last reauthorization in 2003 include: · Funding infrastructure development under the Roads to Resources program · Reforming state permitting processes to make them timelier and more efficient · Gathering and publishing geological and geophysical data on Alaska's mineral potential · Assuming state primacy of the National Pollutant Discharge Elimination System · Accelerating state land entitlement conveyances in accordance with the Statehood Act · Reestablishing the citizens Advisory Commission on Federal Areas · Asserting and defending public access to roads, trails, and navigable waterways · Funding University of Alaska mineral engineering and geology programs I urge you to allow the Commission to continue its important work and to help ensure the growth and sustainability of a vital sector of the Alaskan economy by supporting HB 99. 2:40:01 PM Co-Chair Stoltze asked about the policy related to term limits. Representative Saddler replied that most commissioners would serve only one term. Especially effective commissioners would be invited to serve a second term. He anticipated that commissioners might wish to serve a second term because they care about the industry tremendously. Representative Guttenberg asked if an audit had been performed for the upcoming sunset. Representative Saddler replied that an audit had not been done. Vice-Chair Neuman pointed to budget deficit issues and the need to conserve money. He wondered about the possibility of phasing out commissions following final recommendations to the legislature. He stated that the Alaska Minerals Commission cost $13 thousand per year, but with hundreds of different commissions, the cumulative state expense was great. He called attention to the role of private industry. 2:43:13 PM Representative Saddler believed the question was fair. He opined that the annual cost of $13 thousand for the board was a "bargain-basement" cost. If the services were contracted out, they would far exceed the cost. He expressed one benefit of the commission was its command of respect of regulators of the private industry for meetings and dialogue. Vice-Chair Neuman opined that the legislature must review the state commissions and consider phasing some out in the spirit of frugality. Co-Chair Stoltze made a remark related to the expense of the annual Energy Council conference. Representative Gara echoed comments made by Vice-Chair Neuman. He wanted evidence that the commission was providing advantages that the governor's office was not already performing. Co-Chair Stoltze commented that the governor's efforts might have been suggested by the commissions. Representative Saddler answered that he did not know whether the decisions were made before or after the commission's recommendations. Co-Chair Stoltze made a remark about the chicken or the egg. Representative Gara supposed that the information was available if searched for. 2:47:07 PM BILL JEFFRESS, CHAIR, ALASKA MINERALS COMMISSION (via teleconference), was available for questions. He stated that the commission supported the legislation. Co-Chair Stoltze referred to Representative Gara's question. Mr. Jeffress replied that the commission's role was independent. All members had different experiences with the mineral industry in the state. The commission addressed impediments to the minerals industry and actions that could be taken to correct the issues. He stated that the members were the "town criers." Representative Saddler pointed to the 2004 Alaska Minerals Commission report, which stated the goals of developing more efficient permitting processes to assist in infrastructure development, to benefit mining and other industries, and to acquire baseline geological and environmental knowledge statewide. 2:50:07 PM DEANTHA CROCKETT, EXECUTIVE DIRECTOR, ALASKA MINERS ASSOCIATION (via teleconference) expressed strong support for the legislation. She discussed recommendations to Department of Natural Resources and she stressed the importance of the board. The association supported the amendments to the legislation as they believed in circulating board members regularly. Representative Gara asked if Ms. Crockett was on the commission. Ms. Crockett answered in the negative. 2:52:31 PM MARLEANNA HALL, PROJECT COORDINATOR, RESOURCE DEVELOPMENT COUNCIL (via teleconference), spoke in support of the legislation. She stated that historically, the mining industry provided the cornerstone of Alaska's economy. The appointed group made recommendations to the legislature and the governor in an effort to promote Alaska's mineral exploration and development industry. The industry provided some of the state's highest paying jobs. The bill would extend the commission for 10 years. She pointed out that the bill had a low fiscal impact. She pointed to a broad- based membership. She urged the committee to pass the legislation. Vice-Chair Neuman asked if the council would consider a grant to help relieve financial burdens of the state and private industry. Ms. Hall deferred the question. Representative Costello believed that other boards and commissions should strive for the frugality of the commission. She requested electronic reports in the future. STEPHEN TRIMBLE, MINERALS COMMISSION (via teleconference) commented that the list of recommendations in Representative Saddler's sponsor statements were put forth by the commission and enacted by the administration. The commission took a lead role in actively recommending ways to mitigate constraints on state mineral resource development. Co-Chair Stoltze CLOSED public testimony. Representative Saddler made a note related to the costs. He noted that the report presented by the Minerals Commission was available electronically. Representative Costello discussed the fiscal impact note from the Department of Commerce, Community and Economic Development. Representative Munoz MOVED to REPORT CSHB 99(RES) out of committee with individual recommendations and the accompanying fiscal note. Representative Gara OBJECTED for discussion. He asked the sponsor to relay to the commission his desire to have their specific ideas brought to the administration's attention. Representative Gara REMOVED his OBJECTION. There being NO OBJECTION, it was so ordered. CSHB 99(RES) was REPORTED out of committee with a "do pass" recommendation and with one fiscal impact note from Department of Commerce, Community and Economic Development. 3:01:13 PM AT EASE 3:03:05 PM RECONVENED