Legislature(1997 - 1998)
05/05/1998 02:00 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 281 "An Act relating to general grant land entitlements for the City and Borough of Yakutat; and providing for an effective date." SENATOR JERRY MACKIE, SPONSOR, testified in support of SB 281. Senator Mackie read the sponsor statement. He noted that SB 281 was introduced to complete the formation of the Yakutat Borough and the land entitlements that the state grants to support local government. Yakutat's petition to incorporate as a borough in 1992 was considerably reduced in size by the Local Boundary Commission. The land entitlement for the new borough by the formula of 10% of "vacant, unappropriated, and unreserved" (vuu) state lands was a mere 138 acres. The City and Borough of Yakutat subsequently petitioned the Local Boundary Commission to reclaim much of the area on its northern boarder. In a reversal of its earlier decision, the Local Boundary Commission approved the annexation, which contains a substantial amount of state "vuu" lands. It is estimated that if the annexed area had been included for the original borough formation, the municipal land entitlement would have amounted to 33,000 acres. Senator Mackie observed that it has been a long established policy for the state to assist the formation and operation of local governments with generous grants of state land. He maintained that SB 281 corrects the defects in the borough formation process that resulted in such a small land entitlement for the City and Borough of Yakutat by increasing its entitlement to 21,500 acres. The bill also gives additional authority to the Director of the Division of Lands in the Department of Natural Resources to condition and restrict any of the municipality's selections made under this increased grant. Senator Mackie reiterated that the City and Borough of Yakutat only received 138 acres of land as an entitlement. The original legislation would have granted a 30,000-acre entitlement. This was reduced to 21,500 in the Senate Community and Regional Affairs Committee. The Senate Resource Committee reduced the entitlement to 8,552 acres. The entitlement was increased back to 21,500 in the House Community and Regional Affairs Committee. He emphasized that the University of Alaska, Department of Natural Resources, Department of Fish and Game and the regional native corporation supported an entitlement of 21,500 acres. He reviewed the selection process through the Division of Land in the Department of Natural Resources. Co-Chair Therriault questioned if the Borough anticipates selecting the log transfer site. PAUL FUHS, LOBBYIST, CITY OF YAKATAT stated that the community does plan to ask for the log transfer site. He observed that there is no guarantee that the City's request would be approved. He explained that no fee would be charged to the agencies, University or to the Mental Health Lands Trust during the lifetime of their cut. He stressed that there would be reasonable fees for the University if they receive more land. In response to a question by Representative Martin, Mr. Fuhs noted that there are approximately 800 individuals in the Borough. Representative Martin compared entitlements to other Boroughs. Senator Mackie emphasized that every community is different and availability of state land must be considered. Representative Martin felt that the grant was too large. Mr. Fuhs spoke in support of the entitlement. He observed that Yakutat is no longer a single site school district. He added that fishing and timber receipts are down. Representative Davies spoke in support of the legislation. He noted language allowing stipulations. Mr. Fuhs explained that stipulations would be applied to alleviate concerns by the Department of Fish and Game regarding habitat. Representative Davis spoke in support of the legislation. Co-Chair Therriault asked if the community's memorandum of understanding with the Mental Health Trust differs from the current one with the University of Alaska. Mr. Fuhs stated that the memorandum with the Mental Health Trust is different than the memorandum with the University of Alaska. He explained that the Mental Health Trust is a fee simple title owner. The University would have to renegotiate for additional property. Mr. Fuhs clarified that the City would charge a reasonable rate on future operations. The City's agreement with the Mental Health Trust is for free access during the current period. A lease fee would be charged on future cuttings based on an accessed value. WENDY REDMAN, VICE PRESIDENT, STATEWIDE PROGRAMS, UNIVERSITY OF ALASKA spoke in support of the legislation. She noted that the University is working on a memorandum of agreement with the Borough. She estimated that they would reach agreement in the next couple of days. Senator Mackie stressed that the Borough wants to maintain a good relationship with the University. In response to a question by Representative Kohring, Mr. Fuhs stated that the community supports land sale to private holders. Representative Mulder MOVED to report HCS CSSB 281 (CRA) out of Committee with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HCS CSSB 281 (CRA) was REPORTED out of Committee with a "do pass" recommendation and with a fiscal impact note by the Department of Natural Resources.
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