Legislature(1995 - 1996)
02/28/1996 01:35 PM Senate CRA
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 293 CAP PROJ MATCHING GRANT FOR INDIAN RESERV
SENATOR TORGERSON introduced SB 293 as the next order of business
before the committee.
Number 305
SENATOR ZHAROFF, Prime Sponsor, explained that SB 293 would clarify
an ambiguity in the statute with regard to how Metlakatla is
treated under the Capital Matching Grants program. Senator Zharoff
discussed the following sponsor statement:
SB 293 would amend the Capital Matching Grants program to clarify
that the Metlakatla Indian Community can participate in the program
as a municipality rather than as an unincorporated community.
The Capital Matching Grants program became effective in FY 1994.
The prior administration adopted regulations to implement the
Capital Matching Grants program that allowed Metlakatla to receive
Capital Matching Grants as both a municipality and unincorporated
community. Last year, Legislative Legal Services determined that
Metlakatla could not legally receive a Capital Matching Grant as a
municipality and without an amendment to the Capital Matching
Grants statutes, could only receive funds under the unincorporated
portion of the program.
This bill corrects what I believe was an oversight in the original
legislation that created the Capital Matching Grants program to
specifically allow Metlakatla to receive their Capital Matching
Grants under the municipal portion of the program rather than as an
unincorporated community.
Senator Zharoff said that since Metlakatla was not listed as a
municipality, Metlakatla only received $25,000. As a municipality,
Metlakatla would be eligible for $50,000. In discussions with the
Administration and the Department of Community & Regional Affairs,
there is no objection to SB 293. He hoped that SB 293 would be
viewed as a housekeeping measure.
SENATOR RANDY PHILLIPS clarified that SB 293 would be recognized as
an incorporated area, as a municipality which would allow
Metlakatla to be eligible for $50,000. SENATOR ZHAROFF agreed with
that assessment. SENATOR RANDY PHILLIPS asked why Metlakatla was
not currently receiving that amount. SENATOR ZHAROFF explained
that Metlakatla was omitted from the legislation that established
the Capital Matching Grants Program in 1994; that was an oversight.
SENATOR TORGERSON pointed out that the additional money, $14,910,
is needed to upgrade Metlakatla. Perhaps the department could
inform the committee from where this money would come.
Number 354
KIM METCALFE-HELMAR, Special Assistant for the Department of
Community & Regional Affairs, supported SB 293 which the department
views as a housekeeping measure. SB 293 would clarify an ambiguity
in current law by establishing Metlakatla as a municipality for the
purposes of the Municipal Capital Project Matching Grant Program.
She requested that Bill Rolfzen from the department to come forward
to answer specific questions.
SENATOR RANDY PHILLIPS inquired as to how Metlakatla operated.
BILL ROLFZEN, State Revenue Sharing for the Department of Community
& Regional Affairs, explained that the Metlakatla Indian Community
operates similarly to a municipality organized under state law.
Metlakatla has a City Council, a Mayor, and it provides basic
community services for Annette Island. As far as Mr. Rolfzen knew,
the Mayor and the City Council are elected by the people in
Metlakatla. Mr. Rolfzen clarified that the Metlakatla Community
Development Corporation must be established as required under the
Municipal Assistance Legislation which was amended in 1986 as well
as under the National Forest Receipts Program. The corporation has
been formed. Within the charter of the corporation, the election
of the board of directors must be open to all members of the
community regardless of race. Once the money is received, a
determination regarding how the money would be spent would be made
and then the money would be given to the Metlakatla Indian
Community. The Metlakatla Indian Community is basically the local
government that provides all the local services. The expenditure
of the fund would be documented in the financial statements the
department receives; those monies are audited and tracked.
Number 382
SENATOR KELLY asked if SB 293 was site specific to Metlakatla.
SENATOR TORGERSON replied yes.
SENATOR TORGERSON pointed out that the fiscal note is zero,
although the transition would require $14,910. He assumed that
money would be taken from other communities in order to make the
transition.
JACK FARGNOLI, Office of Management and Budget for the Office of
the Governor, said that the funding issue is before the
legislature. One option would entail the extra money being added
to the total amount of money being appropriated to both programs or
money could be taken from one side and moved to the other side.
Once the funding decision is made for the municipal program, that
money would be spread by formula. Therefore if money were added to
that side, it would come out of the CRA side. If money were added
to the CRA side, the money would come from Community & Regional
Affairs. Including Metlakatla in this funding would be another
community for which the municipal funding would have to be spread
by formula. Mr. Fargnoli pointed out that there are two choices,
either add more money or let the allocations follow the formula.
SENATOR TORGERSON asked if the Administration's position was to
leave it to the legislature. JACK FARGNOLI noted that the Governor
has proposed a net cut of the Metlakatla decision. Mr. Fargnoli
assumed that the total funding level would remain the same
and Metlakatla would be included with the municipalities.
Number 415
SENATOR TORGERSON handed out a breakdown of where this money would
come from and listing each municipality in the current program. He
assumed that this would create zero impact to the budget. This
report was provided by Municipal Grants in the Administration.
JACK FARGNOLI said that original intent was to include Metlakatla
as a municipality which was echoed in regulations through a
definition including Metlakatla as a municipality. The way the
local revenue sharing program was written, the unincorporated side
of the program, meant that Metlakatla had to be included as an
unincorporated entity as well. Last year, Senator Halford pointed
out that a different prevailing statute's definition of
municipality, Metlakatla did not fall under that. The only
recourse was to allow Metlakatla to remain on the unincorporated
side of the program.
SENATOR RANDY PHILLIPS asked if there was a tax base in Metlakatla.
JACK FARGNOLI replied yes and deferred to Mr. Rolfzen.
Number 449
SAL ATKINSON, member of the Metlakatla City Council, informed the
committee that he was present to represent the mayor and the
council. He thanked Senator Zharoff for introducing SB 293. Mr.
Atkinson explained that last year, Metlakatla missed some matching
grant funds through some technical error. After reviewing the
situation, the community discovered that it qualified under the
definition of unincorporated community as well as the definition of
a municipality. Metlakatla has its own constitution, law and order
code, police force, judicial system, 12 councilmen, judges, and all
the services provided by other communities. Mr. Atkinson
emphasized that Metlakatla wants to build a closer working
relationships with the State of Alaska. SB 293 would draw
Metlakatla closer to this goal.
SENATOR RANDY PHILLIPS inquired as to how many members were there
on the Metlakatla council. SAL ATKINSON said there were 12
members. The town engineer is elected separately. In response to
Senator Randy Phillips' question regarding Metlakatla's tax base,
Mr. Atkinson stated that Metlakatla does not have a tax base.
There are some timber lands and that money is used to provide
services to the people. For instance, services are provided for
senior citizens in Metlakatla beyond what is provided in other
communities.
SENATOR RANDY PHILLIPS asked if the monies that Metlakatla has for
the government comes entirely from timber sales. SAL ATKINSON
informed the committee that Metlakatla does receive grants from the
State of Alaska. At one time, Metlakatla received money from the
Bureau of Indian Affairs, but that money is shrinking. Therefore,
Metlakatla wants to diversify its economy. Currently, Metlakatla
does not have a tax base, but eventually that may happen. Mr.
Atkinson noted that research is being done on the possibility of a
sales tax. Metlakatla has a population of 1,826.
In response to Senator Kelly's question regarding the location of
Metlakatla, SENATOR RANDY PHILLIPS said that Metlakatla is south of
Ketchikan. SENATOR KELLY asked if all of Annette Island was
Metlakatla, is the community called Metlakatla? SAL ATKINSON
replied yes. Mr. Atkinson explained that when the area was set
aside by presidential proclamation, the area was set aside for the
Indians of Metlakatla living on Annette Islands.
Number 495
SENATOR RANDY PHILLIPS asked if the people of Metlakatla had
decided not to participate in the Native Land Claims in lieu of
title to the land and a way of life. SAL ATKINSON agreed that the
people of Metlakatla decided not to participate in the Native Land
Claims. Mr. Atkinson explained that all the land of the Annette
Islands belongs to the federal government, a parcel of land can be
leased for a maximum of 50 years renewable.
SENATOR KELLY asked if homes were built on that leased land. Are
homes bought and sold on leased land? SAL ATKINSON said that homes
were built on the leased land, but rarely is a house on leased land
sold. These homes are in private ownership.
SENATOR RANDY PHILLIPS thought that the tribe decided that the land
belongs to the people collectively, but that is not the case. Why
did the tribe opt out of the Native Land Claims Act? SAL ATKINSON
expressed gratitude that the tribe had chosen not to participate in
the Native Land Claims Act. A subsistence lifestyle is still
present and no commercial fishery is allowed within any of the
waters surrounding Annette Island. For instance, if someone
proposes a shellfish harvest or other commercial harvest,
Metlakatla can refuse.
SENATOR HOFFMAN asked if members of the tribe could go commercial
fish in those waters. SAL ATKINSON replied yes.
SENATOR KELLY inquired as to how far from the island are commercial
fisheries not allowed. SAL ATKINSON informed the committee that it
extended 3,000 feet from the land.
SENATOR KELLY asked if any of the people in Metlakatla belonged to
any of the regional corporations. SAL ATKINSON said no, they are
not allowed; although, the ANSCA amendments would allow the people
of Metlakatla to inherit stock, but not a controlling amount.
In response to Senator Randy Phillips, SAL ATKIINSON said that the
elders of Metlakatla made the decision not to participate in the
Native Land Claims Act. SENATOR RANDY PHILLIPS asked what the
elders of Metlakatla saw that other elders did not with regard to
the Native Land Claims Act. SAL ATKINSON said that the elders of
Metlakatla looked at the way of life they had; they did not want to
change their lifestyle which still prevails today.
SENATOR TORGERSON asked if anyone else would like to testify.
Hearing none, Senator Torgerson said that he was tempted to hold
SB 293 until Wednesday for a corrected fiscal note. He did not
believe that the Administration was being honest with the zero
fiscal note when money, $14,000, will be taken from tax based
communities to spread around. Senator Torgerson explained that his
opposition comes from the Administration's opposition to SB 20
which is about the same, but with a $900,000 fiscal note because
the Administration did not like that bill. SB 293 was held until
Wednesday and a request will be made for a corrected fiscal note.
| Document Name | Date/Time | Subjects |
|---|