Legislature(1997 - 1998)

04/28/1997 02:10 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HOUSE BILL 109                                                               
                                                                               
       "An  Act  relating to  the  management and  disposal of                 
       state land and  resources; relating  to certain  remote                 
       parcel and  homestead entry land purchase contracts and                 
       patents; and providing for an effective date."                          
                                                                               
  Co-Chair Therriault explained that HB  109 is a housekeeping                 
  measure  intended  primarily  to clarify  certain  Title  38                 
  statutes governing  the  Department  of  Natural  Resources'                 
  (DNR) management of State  land and resources.  The  bill is                 
  intended to bring  greater efficiency  to the management  of                 
  state lands by  simplifying programs  and reducing costs  to                 
  DNR.                                                                         
                                                                               
  Co-Chair Therriault noted the highlights of the legislation:                 
                                                                               
       *    Rewrite of the "remote  cabin permit program"                      
            to a program that would  allow for either the                      
            sale or lease for a  remote cabin site.   The                      
            permit program was never  implemented because                      
            of the associated  administrative costs  with                      
            only a minimal return to the State.                                
                                                                               
       *    Clarifies that the  sale of  state land  does                      
            not obligate the  State to provide additional                      
            services.                                                          
                                                                               
       *    Simplifies the methods to receive a homestead                      
            parcel title  by requiring  that within  five                      
            years,  a  parcel  must be  lived  on  for 25                      
            months or purchased at fair market value.                          
                                                                               
  JANE  ANGVIK,  (TESTIFIED  VIA   TELECONFERENCE),  DIRECTOR,                 
  DIVISION   OF  LANDS,   DEPARTMENT  OF   NATURAL  RESOURCES,                 
  commented that the  Department supports HB  109 as it  would                 
  clean-up Title 38, resulting in  the Division of Lands being                 
  operated more efficiently.   She  added that the  Department                 
  also  supports  the  amendments   distributed  to  Committee                 
  members.  She  spoke to  the shore fisheries  issue and  the                 
  Supreme  Court  ruling  regarding  that  concern.   Co-Chair                 
  Therriault  noted  that section  had  been dropped  from the                 
                                                                               
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  proposed legislation.                                                        
                                                                               
  Representative  J.   Davies  questioned  why  it   would  be                 
  difficult for the Division  of Lands to follow the  rules of                 
  the Supreme Court.  Ms. Angvik replied that the Kachemak Bay                 
  Watch case challenged  DNR to authorize aquatic  water sites                 
  on  State  lands, a  decision  which called  for significant                 
  aquatic planning efforts.   The  Court recommended that  the                 
  Department participate in a land  use plan identifying areas                 
  where  mari-culture could  occur and  which was  to  be done                 
  after an accumulative  evaluation of  all events that  could                 
  occur over time.   If the  Division of  Lands had to  comply                 
  with the  Court ruling,  it  would take  seven employees  to                 
  perform an area wide plan for all of the coastal regions  of                 
  the State.                                                                   
                                                                               
  Representative J. Davies inquired if  the Court required the                 
  Division to address the entire  State for permit operations.                 
  Ms.  Angvik  replied  that  the  Court  indicated  that  the                 
  Division had  failed in  Southeast  Alaska and  Southcentral                 
  Alaska,  so  they  ruled  that  the  entire  State  must  be                 
  undertaken.                                                                  
                                                                               
  Representative J. Davies asked if the Department was planing                 
  to return to the Legislature with statutes which make sense.                 
  Ms.  Angvik explained that the Division  is doing a thorough                 
  job  with each  mari-culture location  evaluation, although,                 
  the Court requested a higher  standard.  Discussion followed                 
  between Representative  Davies and Ms. Angvik regarding land                 
  use planning.                                                                
                                                                               
  Representative  Martin  voiced  concern  for  the  shoreline                 
  tidelands and  the coastal communities in  Southeast Alaska.                 
  Ms. Angvik stated  that the proposed amendment  was designed                 
  to allow  up-line owners to  obtain a non  competitive lease                 
  for dock sites.  In a tideland area,  a user can get a long-                 
  term lease  to be  able to  operate a dock.   The  amendment                 
  would allow  the tideland applicant  to apply for  a similar                 
  application for fresh water lakes and rivers.                                
                                                                               
  Co-Chair  Therriault asked  the terms  of a lease  for fresh                 
  water shore land.   Ms. Angvik replied that the  terms would                 
  probably  be  a  20  year  lease  for facility  on  a  carbo                 
  operation, instead of  a year  by year competitive  auction.                 
  The  issue of value  would be negotiated  between the lessee                 
  and the State through  an appraisal.  The amendments  do not                 
  address the negotiation process.                                             
                                                                               
  ROBERT NAUHEIM, (TESTIFIED  VIA TELECONFERENCE),  DEPARTMENT                 
  OF NATURAL  RESOURCES, offered to answer questions regarding                 
  litigation which lead to the language of the bill.                           
                                                                               
                                                                               
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  Representative  J. Davies  noted  that  the  litigation  had                 
  indicated that the process used was  not adequate.  The bill                 
  has been  accompanied by  an amendment  appropriate to  that                 
  concern.   He asked how a  facility could be  created in the                 
  future.                                                                      
                                                                               
  Mr. Nauheim explained  that the  legislation was written  to                 
  rescue several classes of  aquatic farming operations  which                 
  are in a difficult legal position.  The Alaska Supreme Court                 
  stipulated that the  application process  was invalid.   The                 
  Court  upheld  that the  identification  method used  by the                 
  Department  was faulty.    The  Department understood  that,                 
  initially, the identification process was  to be informal so                 
  as  to  aid  the application  process.    The  Supreme Court                 
  interpreted the straight forward language  to require a very                 
  detailed formal planning  process that  would result in  the                 
  identification of  districts where  specific sites  would be                 
  identified  for  issuance  of permits.    That  decision was                 
  determined invalid.   The new  legislation coupled with  the                 
  newest  amendments  will call  for  the  repeal of  the  old                 
  system.                                                                      
                                                                               
  Representative J. Davies questioned if the regulations would                 
  create a new process for permitting  of the facilities.  Mr.                 
  Nauheim advised that the new language would command that the                 
  commission adopt new regulations  and establish criteria for                 
  approving or denying the applications.   Regulations will be                 
  similar to the current ones.                                                 
                                                                               
  Representative J. Davies asked if  Amendment #3 was adopted,                 
  would a permit applicant be applying  for a finite period of                 
  time.  Ms. Angvik responded they  would need to apply within                 
  90 days.                                                                     
                                                                               
  Co-Chair  Therriault MOVED to adopt Amendment  #1.  [Copy on                 
  file].      Representative    Martin   questioned   if   the                 
  shoreline/tideline  concerns  in Southeast  Alaska  had been                 
  adequately  addressed.    Ms. Angvik  offered  to  work with                 
  Representative Martin  regarding his concerns.   There being                 
  NO OBJECTION to Amendment #1, it was adopted.                                
                                                                               
  Co-Chair Therriault MOVED  to adopt Amendment #2.   [Copy on                 
  file].  There being NO OBJECTION, it was adopted.                            
                                                                               
  Co-Chair Therriault MOVED  to adopt Amendment #3.   [Copy on                 
  file].  There being NO OBJECTION, it was adopted.                            
                                                                               
  Representative J. Davies MOVED to report CS HB 109 (FIN) out                 
  of Committee with  individual recommendations  and with  the                 
  accompanying fiscal  note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
                                                                               
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  CS HB 109  (FIN) was reported  out of  Committee with a  "do                 
  pass"  recommendation  and   with  a  fiscal  note   by  the                 
  Department of Natural Resources dated 4/23/97.                               

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