Legislature(1997 - 1998)

05/05/1998 02:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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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