Legislature(1997 - 1998)

04/15/1998 08:30 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
SENATE BILL NO. 180                                                            
                                                                               
"An Act relating to state rights-of-way."                                      
                                                                               
BRETT HUBER, STAFF, SENATOR RICK HALFORD, stated that RS                       
2477 rights-of-way issue is long standing and complex.  He                     
provided a brief history and overview of the issue                             
                                                                               
Revised Statute 2477 (R.S. 2477) was a right granted to the                    
states by the United States Congress with the passage of the                   
Mining Act of 1866.  The purpose of this law was to provide                    
for, and guarantee, the public's right to establish access                     
across federal lands.  Subsequent congressional action, and                    
more than 100 years of case law, has recognized the State's                    
authority to determine and define R.S. 2477 rights-of-way.                     
                                                                               
Although Congress repealed R.S. 2477 in 1976 with the                          
adoption of the Federal Land Policy and Management Act, they                   
specifically acknowledged the legal existence of R.S. 2477                     
rights-of-way established prior to that repeal.  Current                       
Federal Regulation explicitly provides that any rights                         
conferred by the R.S. 2477 grant shall not be diminished.                      
(43 CFR   2801.4)                                                              
                                                                               
Mr. Huber continued, this important states' rights issue has                   
received legislative attention in the past.  Beginning with                    
the legislative appropriations in 1992 and 1993, which                         
funded the research and compilation of historical                              
information regarding R.S. 2477, the Legislature has taken                     
the lead in moving the issue forward.  In undertaking those                    
legislatively designated projects, the Department of Natural                   
Resources (DNR) reviewed some 1,700 potential R.S. 2477                        
routes.  This, and subsequent DNR review resulted in the                       
identification of 602 rights-of-way that appear to qualify                     
and are supported with appropriate documentation.  These 602                   
routes are published in the Historical Trails catalogue and                    
incorporated into the State Land Administration System                         
(LAS).                                                                         
                                                                               
Last year, the Legislature passed SJR 13 with broad support                    
reiterating their position regarding R.S. 2477 and making                      
clear the objection to the United States Department of the                     
Interior's proposed policy which would have drastically                        
reduced the State's opportunity to resolve these issues.                       
There is a copy of the January, 1997 policy memo from                          
Secretary Babbitt in the bill packet.                                          
                                                                               
Information that came forward during the committee process                     
on SJR 13 as well as during the Joint Senate and House                         
Resources Committee's overview of the issue last February,                     
supports the subsequent action proposed by Senate Bill 180.                    
                                                                               
SB 180, an Act relating to State rights-of-way, codifies 602                   
documented R.S. 2477 rights-of-way, requires them to be                        
recorded, provides a process for, and limitations on                           
liability limitations for the State.                                           
                                                                               
Mr. Huber noted that while the R.S. 2477 rights-of-way                         
codified in this bill have already been accepted by public                     
users and deemed supportable by the State, it is likely that                   
the federal government will dispute the State's ownership on                   
some or all of those routes.  Although, current federal                        
administration is attempting to limit the State's rights                       
regarding R.S. 2477 rights-of-way, over 100 years of case                      
law on point recognize State law as controlling on the                         
issue.  Codifying the routes in statute would strengthen the                   
State's position for subsequent court action, and provide                      
the affected landowners and general public clear                               
notification that the R.S. 2477 rights-of-way are available                    
for use.                                                                       
                                                                               
Mr. Huber commented that Senator Halford believes that,                        
while they are not a panacea, R.S. 2477 rights-of-way are a                    
critical option to the future transportation needs of our                      
State.  RS 2477 routes provide surface travel to mineral                       
deposits and other natural resources, recreational areas and                   
tourism opportunities, and access to and between Alaska's                      
rural areas.                                                                   
                                                                               
He pointed out that R.S. 2477 rights-of-way are an existing                    
State right which cannot be allow to be "regulated away" by                    
the federal bureaucracy. The legislation statutorily asserts                   
the rights we currently have.                                                  
                                                                               
Co-Chair Therriault asked if one of the routes listed in the                   
proposal had been asserted without proper documentation,                       
would it be dropped from the list.  Mr. Huber replied that                     
the routes which exist in the historic trail catalogue,                        
would also be included in statute.  If someone contested a                     
R.S. 2477, they could approach DNR to address it                               
administratively or, another option, would be to take it to                    
a court proceeding.  If a determination was made, there is a                   
process in which the State could vacate the trail and then a                   
determination would be made that R.S. 2477 was not valid and                   
dropped from the list.                                                         
                                                                               
Representative Foster spoke to lands which he owned which                      
were only accessible by cutting across Native lands.  Mr.                      
Huber stated that the 2477 rights-a-way were granted only at                   
the time which the land was federal land and was                               
unrestricted and vacant.  These lands were accepted by                         
public use.  The option for rights-a-way was not available                     
with other types of ownership.  Typical of all those                           
corporation conveyances was language which specified being                     
subject to existing rights, the land would be transferred.                     
                                                                               
Representative Foster asked if the Native Corporations have                    
been given additional land in exchange for the rights-a-way                    
which already existed.  Mr. Huber explained that rights-a-                     
way with each corporation has been handled differently.  Co-                   
Chair Therriault pointed out that language contained in the                    
title made reference to that adjustment.                                       
                                                                               
Representative J. Davies questioned how that would improve                     
the federal standing code.  Mr. Huber replied, in order to                     
determine title in a R.S. 2477 rights-a-way, the issue of                      
title determination is handled through a quiet title action                    
in federal courts.  It would also be possible to address it                    
through subsequent congressional action.  Mr. Huber noted                      
that SB 180 will not solve the title question, but would                       
instead, statutorily assert that this is a public right.                       
                                                                               
JANE ANGVIK, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,                         
DIVISION OF LANDS, DEPARTMENT OF NATURAL RESOURCES, stated                     
that the Department of Natural Resources (DNR) is not in                       
support of SB 180 because they believe that to record the                      
rights-a-way would cloud the title for land owners.  Ms.                       
Angvik stated that it would particularly cloud the title of                    
Native corporations as well as private individuals who own                     
land.  She pointed out that the reason that the Department                     
is concerned is that the State does not know where they all                    
these rights-a-ways rest physically on the land; they need                     
to be surveyed before they are recorded.                                       
                                                                               
The State has been going through a large and lengthy process                   
in researching the R.S. 2477 rights-a-way, although, the 602                   
proposed in the legislation have not been physically                           
located.  She believed that to record this would be                            
premature and would cloud the title of the land.  She noted                    
that the Alaska Federation of Natives (AFN) strongly opposes                   
the bill.                                                                      
                                                                               
In response to Co-Chair Therriault's inquiry regarding title                   
clouding, Ms. Angvik explained that if the lands were                          
recorded this would clarify where they were physically                         
located.  Whereas, an easement would make it more difficult                    
to determine clear title.  Mr. Huber advised that would be a                   
"disclosure" and that use would have to have occurred while                    
the land was vacant, unreserved and unrestricted.  At that                     
time, a State survey, regardless of the ownership, would be                    
encumbered with a right-a-way.  The bill does not add a new                    
encumbrance, but instead would disclose the encumbrance that                   
already exists.  He stressed that this would not affect the                    
selling or transferring of the land.  It would only disclose                   
information currently attached to serving the State.                           
                                                                               
Mr. Huber advised that the routes to some extend have                          
already been entered and digitized. Not until there is a                       
survey performed can a route be delineated.  One of the                        
provisions in the bill speaks to private property interest                     
when delineating routes.  He pointed out that not all routes                   
will be contested.                                                             
                                                                               
Representative Foster commented that without R.S. 2477 in                      
place, in order to access his own land, he would be forced                     
to fly 10 miles across someone else's land.  Also, without                     
this legislation, it would make it ackward for Natives of                      
adjoining Native corporations to obtain a permit for hunting                   
and subsistence fishing.                                                       
                                                                               
In response to Co-Chair Therriault, Ms. Angvik spoke to the                    
location of the LAS roads.  The Department reviews                             
historical information and maps, everything providing public                   
record indicating the land used and the location.  In order                    
to calculate these 602 land choices, secondary sources of                      
information were used.  Certification is the next level in                     
the title assertion process.  Of the eleven certified                          
trails, they have gone to public notice with an opportunity                    
for public appeal.  The remaining trials could be anywhere,                    
and that the Department does not know where they physically                    
are placed on the land.                                                        
                                                                               
Representative Mulder questioned Ms. Angvik suggestion that                    
the bill "does nothing".  Ms. Angvik noted that the                            
Department noticed production of the map with significant                      
information available from the government.  She recommended                    
that the concern be approached systematically through                          
surveying the eleven already certified parcels, slowly                         
building the database.  Representative Mulder pointed out                      
that concerns regarding the R.S. 2477 have been addressed                      
for many years, and still there is nothing in statute.  He                     
claimed that SB 180 would address the State's ability to                       
access these lands.  He added that the budget does not have                    
the fiscal power to survey all the tracts.                                     
                                                                               
Representative J. Davies inquired how the status of a                          
private landowner trying to sell their land would change                       
with passage of the bill.  Ms. Angvik believed that today,                     
title companies would be mute on the subject of rights-a-                      
way.  Should the bill become law, title companies would be                     
responsible to identify if an egress crossed the land.                         
                                                                               
Representative J. Davies questioned if this would be an                        
improvement for the land purchaser.  Ms. Angvik stated that                    
it is important to know that rights-a-way exist, however,                      
until DNR is in a position to identify whose land it exists                    
on, the question of who will be affected continues to exist.                   
                                                                               
Representative J. Davies asked how many of current right-a-                    
ways might experience this problem.  Ms. Angvik did not                        
know.  She acknowledged that there are many trails on State                    
lands, which would not be a problem in the bill's passage.                     
The Department only surveys litigated trails.                                  
                                                                               
Representative J. Davies asked how passage of the bill would                   
improve the State's standing before federal court.                             
                                                                               
MYLES CONWAY, (TESTIFIED VIA TELECONFERENCE), ASSISTANT                        
ATTORNEY GENERAL, DEPARTMENT OF LAW, ANCHORAGE, stated that                    
the bill would have no impact at all in federal government.                    
If the bill were passed, there would need to be a more                         
specific exception to deal with certain roads.                                 
                                                                               
The Harrison Creek case illustrates the amount of                              
documentation needed to follow the route; it is difficult to                   
tell where the trail goes.  Because of the historical nature                   
and trail shifting over time, it is impossible to confine                      
the 100' corridor with any reasonable accuracy.                                
                                                                               
Representative Foster argued that the Park Service currently                   
is arbitrarily closing trails to village areas adjoining                       
other villages where family members live.  He stressed that                    
there is a tremendous need for the proposed legislation to                     
protect these village people from the Park Service and to                      
help them deal with adjoining Native corporation                               
stipulations.  Representative J. Davies questioned if the                      
proposed legislation would address the circumstances                           
referenced by Representative Foster.  He pointed out that                      
the legislation would not affect federal government lands.                     
Representative J. Davies believed that the bill will benefit                   
land purchasers, but would not help in assertion of R.S.                       
2477.                                                                          
                                                                               
DALE BONDURANT, (TESTIFIED VIA TELECONFERENCE), SELF, KENAI,                   
spoke in support of SB 180.  He believed that access to                        
public lands and waters were important to all people.                          
                                                                               
KATHLEEN MOORE, (TESTIFIED VIA TELECONFERENCE), SELF, KENAI,                   
spoke in support of the proposed legislation.  She                             
recommended that claim responsibility should be transferred                    
to the Department of Transportation and Public Facilities                      
(DOTPF) because DNR was not doing an adequate job.  She                        
emphasized support for trail enhancement on every level.                       
Representative J. Davies noted that he agreed and asked if                     
Ms. Moore would be willing to support a budget amendment to                    
accomplish the proposed work.  Ms. Moore responded that she                    
would.                                                                         
                                                                               
CRAIG PUDDICOMBE, (TESTIFIED VIA TELECONFERENCE), SELF,                        
MATSU, pointed out that R.S. 2477 does not address the width                   
amount.  He referenced Chapter 51, the appeals section.                        
                                                                               
(Tape Change HFC 98- 102, Side 2).                                             
                                                                               
Mr. Puddicombe spoke to his own situation in which he bought                   
the land in 1983 and then found out in 1990 that there was                     
an easement, R.S. 2477.  The State of Alaska became involved                   
studied the situation for 21 months and determined that                        
there was no R.S. 2477 on the property.  In the meantime,                      
the Supreme Court reversed judgement, a situation which has                    
been on going since 1990.  He referenced Chapter 51, and                       
asked if he appealed, would the current judicial system                        
become involved.                                                               
                                                                               
Mr. Huber noted that AS 11 AAC S1.0.070 & 080 to the appeal                    
provisions.  After the agency judgements have been                             
exhausted, then the judicial appeal goes to the Supreme                        
Court.  Mr. Conway agreed with Mr. Huber that it could be                      
handled at the initial level in court.  He noted that the                      
proposed provision would not apply to Mr. Puddicombe's                         
situation.                                                                     
                                                                               
BILL MILLER, (TESTIFIED VIA TELECONFERENCE), SELF, TOK,                        
commented that the State of Alaska currently does not have                     
good trespass laws which can protect private landowners.                       
The trails provide public access to public lands and State                     
lands.  He believed that the problem lies in that the land                     
is not being surveyed or marked, and that the State takes no                   
responsibility for damage or injury.                                           
                                                                               
Representative Mulder noted that AS 09.69.200 a(1) pertains                    
to tort immunity, personal injuries, or death occurring on                     
unapproved land.  It stipulates that an owner of unapproved                    
land is not liable in tort except when an act omission                         
constitutes gross negligence or potential misconduct.                          
                                                                               
DICK BISHOP, VICE PRESIDENT, ALASKA OUTDOOR COUNCIL, JUNEAU,                   
testified in support of the proposed legislation.  He noted                    
that the Alaska Outdoor Council has been concerned with the                    
lack of initiative on the part of the State to protect the                     
public interest in access to vast areas of Alaska for                          
traditional uses.  He reiterated strong support of the bill                    
noting that it is an important step in the State taking                        
effort to document these trails and providing the means to                     
go forward, manage and identify them.                                          
                                                                               
PETER AMUNDSUN, (TESTIFIED VIA TELECONFERENCE), SELF,                          
KETCHIKAN, believed that if Alaska is to develop our                           
resources using trails and roads delineated for exploration,                   
at a time of economic development, then the State should                       
control these trails.  He stressed that the State must                         
retain control of the access.                                                  
                                                                               
NELSON ANGAVAK, (TESTIFIED VIA TELECONFERENCE), ALASKA                         
FEDERATION OF NATIVES (AFN), ANCHORAGE, voiced concern that                    
the bill has the potential to disturb private property for                     
public use.  He stressed that if anything should occur on                      
Native corporate lands, the State of Alaska would bear full                    
responsibility.  Mr. Angavak stressed that the proposed bill                   
has the potential to create a "cloudy" situation not being                     
able to locate the R.S. 2477.  He recommended that accessing                   
Section 17(b) could be used as an alternative.                                 
                                                                               
SENATOR RICK HALFORD interjected that there can not be a                       
taking of private property if in fact the whole process is                     
based on existing rights.  The easements would not be                          
extinguished and would be supplemental to prior existing                       
rights.  The transfers are based on those existing rights.                     
He stated that there is inconsistency in the surveying done                    
by the Department of Natural Resources, which is seen in                       
floating easements.                                                            
                                                                               
Representative G. Davis inquired how a private property                        
owner's provision for pre-existing rights would appear.                        
Senator Halford replied if the valid existing rights                           
predated the establishment of R.S. 2477, it would be found                     
invalid when pertaining to his property.  Every patent since                   
statehood says that the mineral rights are reserved for the                    
State.  Somewhere in every validation notes: "Subject to                       
valid existing rights".                                                        
                                                                               
Representative G. Davis questioned mitigation concerns.                        
Senator Halford responded that the bill does not address the                   
way to use the determinations.  That would be left to the                      
Department.  The bill will bring ownership decisions back to                   
State law allowing for forward movement.                                       
                                                                               
Representative Foster MOVED to report CSSB 180 (FIN) out of                    
Committee with individual recommendations and with the                         
accompanying fiscal notes.  There being NO OBJECTION, it was                   
so ordered.                                                                    
                                                                               
CS SB 180 (FIN) was reported out of Committee with a "do                       
pass" recommendation and with a fiscal note by the                             
Department of Natural Resources dated 3/18/98 and a zero                       
note by the Department of Transportation and Public                            
Facilities.                                                                    

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