Legislature(2003 - 2004)

02/19/2004 08:02 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 319-REMOTE REC.CABIN SITE SALES/LOTTERY SALE                                                                               
                                                                                                                                
Number 0466                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH  announced that  the next  order of  business was                                                               
HOUSE BILL  NO. 319, "An  Act relating  to the disposal  of state                                                               
land by lottery; and relating  to the disposal, including sale or                                                               
lease, of remote recreational cabin sites."                                                                                     
                                                                                                                                
REPRESENTATIVE HUGH  FATE, Alaska  State Legislature,  sponsor of                                                               
HB 319,  explained that a  committee substitute had  been drafted                                                               
to incorporate some of the  amendments the committee discussed at                                                               
a  previous  hearing.    Additionally,  there  was  an  amendment                                                               
available to offer [Amendment 1, in committee packets].                                                                         
                                                                                                                                
Number 0698                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH moved to adopt the committee substitute (CS) for                                                                
HB 319, Version 23-LS0477\I, Bullock, 2/14/04, as a work draft.                                                                 
                                                                                                                                
Number 0710                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON objected for discussion purposes.                                                                         
                                                                                                                                
Number 0736                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE turned to Amendment 1 [to Version I], which                                                                 
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Page 3, lines 9-12                                                                                                         
                                                                                                                                
     Delete all material and insert:                                                                                            
                                                                                                                                
     "(1) prepare  a schedule  of land offerings  under this                                                                    
     section  and identify  the  parcels  for disposal  each                                                                    
     year; the  land offerings may not  include mineral land                                                                    
     selected  by  the  state or  lands  identified  by  the                                                                    
     department  as having  a  high  mineral potential;  the                                                                    
     department's  identification  of  land  having  a  high                                                                    
     mineral potential  shall be based on  standards adopted                                                                    
     by  the department  in  regulations  and shall  include                                                                    
     consideration   of   a   geophysical   surveyor   [sic]                                                                    
     geological  evaluation,  if  any,  that  was  conducted                                                                    
     within 15 calendar years before  the year for which the                                                                    
     schedule is prepared; and"                                                                                                 
                                                                                                                                
REPRESENTATIVE FATE  indicated that some  of the language  in the                                                               
amendment  was adopted  from [the  recommendations  made by]  the                                                               
Alaska  Mining  Association, as  well  as  by the  Department  of                                                               
Natural Resources.                                                                                                              
                                                                                                                                
Number 0847                                                                                                                     
                                                                                                                                
REPRESENTATIVE HOLM moved to adopt Amendment 1 [text provided                                                                   
previously].                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
Number 0906                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON objected [for discussion purposes].                                                                       
                                                                                                                                
Number 0915                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE  turned  the committee's  attention  to  the                                                               
fifth line of Amendment 1, where  the words "survey" and "or" run                                                               
together.   He recommended a technical  change to add a  space in                                                               
between.   In  response  to  a question  by  Chair Weyhrauch,  he                                                               
confirmed that  another technical change was  necessary to change                                                               
"Page 3, lines 9-12" to read "Page 3, lines 10-14".                                                                             
                                                                                                                                
Number 1079                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HOLM said  he is  curious as  to "the  overlay of                                                               
lands claims  and all of  the things that  are going on  with the                                                               
state that  we still haven't solved."   He asked, "Where  is this                                                               
going to fit in a time line?"                                                                                                   
                                                                                                                                
REPRESENTATIVE FATE responded that the  cut-off date is 2009.  He                                                               
explained that  if land  is encumbered, it  won't be  offered for                                                               
location.  He  indicated that in 2009, a new  evaluation could be                                                               
done of those lands that have become available.                                                                                 
                                                                                                                                
Number 1160                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON inquired if there is a fiscal note.                                                                       
                                                                                                                                
REPRESENTATIVE FATE indicated that the  fiscal note is an ongoing                                                               
[process],  and  he  said  there  are  two  other  committees  of                                                               
referral  for the  bill.    He reminded  the  committee that  the                                                               
people who make the application  for the available land will also                                                               
bear the  expense of the  appraisal and survey  of the land.   He                                                               
said it's expected  that the state will actually  make money from                                                               
this plan.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON  asked if, for example,  the costs required                                                               
for  DNR to  evaluate which  lands will  be made  available [have                                                               
been considered].                                                                                                               
                                                                                                                                
REPRESENTATIVE   FATE   responded    that   some   administrative                                                               
expensive, such  as map-making, will be  borne by the state.   He                                                               
indicated that the fiscal note being formulated is a good one.                                                                  
                                                                                                                                
Number 1296                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG turned  to Representative Fate's written                                                               
response  to the  Alaska Conservation  Voters [dated  February 3,                                                               
2004 and  included in the committee  packet].  He said  there are                                                               
several  financial assumptions  included  in that  response.   He                                                               
stated that he would like  to see, if possible, a revenue-neutral                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE FATE  reiterated that "this" actually  will not be                                                               
revenue neutral, but will be a  positive source of revenue to the                                                               
state.  He said there is hard data that can substantiate that.                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG  clarified that his concern  had been in                                                               
hearing Representative Fate speak of  expenses borne by the state                                                               
[such as the map making].                                                                                                       
                                                                                                                                
REPRESENTATIVE FATE  explained that those costs  were included in                                                               
"the expense side of both of our fiscal notes."                                                                                 
                                                                                                                                
Number 1425                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON withdrew his objection to Amendment 1.                                                                    
                                                                                                                                
Number 1434                                                                                                                     
                                                                                                                                
CHAIR  WEYHRAUCH asked  if  there was  any  further objection  to                                                               
Amendment  1  [as  technically   amended].    There  being  none,                                                               
Amendment 1, as amended, was adopted.                                                                                           
                                                                                                                                
Number 1445                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ said  it is  his experience  that there                                                               
usually is  some kind of  "DNR-type easement along  streambeds or                                                               
lakes for  access."  He  asked if  that would be  accommodated in                                                               
the proposed legislation.                                                                                                       
                                                                                                                                
REPRESENTATIVE  FATE replied  that "it  does," because  there are                                                               
other laws that deal with the mean  high water and how far back a                                                               
person's property  can start "on  that."  There  are stipulations                                                               
that already  are in law that  require that setback to  be so far                                                               
from a high water mark, he said.                                                                                                
                                                                                                                                
REPRESENTATIVE BERKOWITZ  turned to page 3,  [lines 30-31], which                                                               
read as follows:                                                                                                                
                                                                                                                                
            (1) the lake, river, or other navigable                                                                             
      water frontage must be at least 300 feet and may not                                                                      
     exceed 400 feet;                                                                                                           
                                                                                                                                
REPRESENTATIVE BERKOWITZ  noted that [the language]  doesn't say,                                                               
"respecting other provisions of law."   He added that it seems to                                                               
trump those other provisions.                                                                                                   
                                                                                                                                
REPRESENTATIVE  FATE responded  that  that's true.   However,  he                                                               
offered  the following  example:   If a  person is  on the  Yukon                                                               
River,  he/she can  only have  fee-simple property  at a  certain                                                               
point which  is reflected by the  survey.  He explained  that the                                                               
specific point is the high water mark for any particular river.                                                                 
                                                                                                                                
Number 1590                                                                                                                     
                                                                                                                                
NANCY WELCH,  Special Assistant, Anchorage Office,  Office of the                                                               
Commissioner, Department Of Natural  Resources (DNR), in response                                                               
to  remarks from  Representatives  Berkowitz  and Seaton,  stated                                                               
that she  does not believe  HB 319  would change the  statute, AS                                                               
35.05.127.   She explained,  "This is typical  of any  other land                                                               
disposal that  we've sold;  ... even if  you get  water frontage,                                                               
the state  still reserves to  it a  public easement to  and along                                                               
public  and navigable  water bodies."   Therefore,  the landowner                                                               
owns "to  the ordinary high  water mark,"  but does not  get full                                                               
use and benefit  of that 50 or 100 feet,  because of the easement                                                               
that is reserved by the state.                                                                                                  
                                                                                                                                
REPRESENTATIVE  SEATON asked  if that  easement is  automatically                                                               
applied, so that private citizens  "have the use of that, without                                                               
it  being  further designated,"  or  if  it  is an  easement  for                                                               
putting in a designated road or trail, for example.                                                                             
                                                                                                                                
MS. WELCH responded that it  is not automatic; the state actually                                                               
has to "find to what the width and  use of that easement is."  In                                                               
certain  cases,  she  said,  it  may not  be  desirable  to  have                                                               
somebody build  something because of instabilities  of soils, for                                                               
example.   Each individual parcel  will still require  a finding,                                                               
she said.                                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON mentioned recreational  plots that would be                                                               
out along  a river or lake.   He asked  if it is correct  that if                                                               
the  state doesn't  "come  in  with a  specific  finding on  that                                                               
parcel," the public could be  prevented from transiting along the                                                               
bank of that stream, or around the margin of that lake.                                                                         
                                                                                                                                
MS. WELCH said that is correct.                                                                                                 
                                                                                                                                
Number 1768                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG  turned  again  to a  sentence  at  the                                                               
bottom  of page  3  of [Representative  Fate's]  response to  the                                                               
Alaska Conservation Voters.  The sentence read as follows:                                                                      
                                                                                                                                
     Rules and  regulations restricting the size  of borough                                                                    
     land sites  within a borough are  applicable on borough                                                                    
     owned land.                                                                                                                
                                                                                                                                
REPRESENTATIVE  GRUENBERG  stated   his  interpretation  of  that                                                               
sentence  is that  the  laws regarding  the  regulation within  a                                                               
borough  are governed  by  the local  government  law, and  would                                                               
trump "this bill."  He asked if that is correct.                                                                                
                                                                                                                                
Number 1831                                                                                                                     
                                                                                                                                
JIM  POUND,  Staff  to Representative  Hugh  Fate,  Alaska  State                                                               
Legislature,  testifying on  behalf Representative  Fate, sponsor                                                               
of HB 319, responded as follows for the record:                                                                                 
                                                                                                                                
     Borough,  if   it  is  more  restrictive   than  state,                                                                    
     traditionally does trump state law.                                                                                        
                                                                                                                                
Number 1849                                                                                                                     
                                                                                                                                
MS.  WELCH, in  response to  a question  by Representative  Holm,                                                               
confirmed that the fiscal note is $433,000.                                                                                     
                                                                                                                                
REPRESENTATIVE  HOLM pointed  to the  analysis which  states that                                                               
the fiscal  note assumes  that there  would be  150 applications.                                                               
He said it  seems inconceivable that there  would be $3,000-worth                                                               
of state  costs per application.   He  asked Ms. Welch  to define                                                               
"why that would be."                                                                                                            
                                                                                                                                
Number 1963                                                                                                                     
                                                                                                                                
MS. WELCH explained  that the way the bill  is currently drafted,                                                               
an individual  decision would be  required on each parcel.   That                                                               
decision  would  include  a  best  interest  finding  and  public                                                               
notice.  She continued as follows:                                                                                              
                                                                                                                                
     And so,  it's very similar to  our existing preference-                                                                    
     right statute,  [for] which we receive  an application,                                                                    
     and then we have to  adjudicate each land offering - as                                                                    
     opposed to the current  remote parcels program where we                                                                    
     have gained  a lot of efficiencies  by batching certain                                                                    
     areas and we do one  best interest finding for the full                                                                    
     area; we do one land appraisal;  we do one survey.  And                                                                    
     we  contract  for those,  but  the  applicant is  still                                                                    
     required to pay for the  appraisal and the survey.  So,                                                                    
     that's where  a lot of  the cost  comes in to  play, is                                                                    
      the amount of staff time that is required to process                                                                      
     each individual application.                                                                                               
                                                                                                                                
REPRESENTATIVE  HOLM asked  if  it would  make  sense that  "that                                                               
would be a part of the cost to the landholder."                                                                                 
                                                                                                                                
MS. WELCH replied that she  doesn't think that [HB 319] addresses                                                               
that the  cost associated  with actually  offering the  parcel is                                                               
attached to the landowner.  She  noted that the state already has                                                               
a  law on  the  books that  says [the  department]  can charge  a                                                               
deposit to individuals  for processing.  In that  case, she said,                                                               
there will  be some  revenues to  the state,  but she  stated she                                                               
thinks the interest in the program would "drop drastically."                                                                    
                                                                                                                                
Number 2000                                                                                                                     
                                                                                                                                
REPRESENTATIVE BERKOWITZ  said he serves on  the DNR subcommittee                                                               
[of the  House Finance  Committee].   He noted  that DNR  "took a                                                               
substantial hit last night," which  he opined seems to compromise                                                               
DNR's  ability to  conduct its  core  businesses.   He asked  Ms.                                                               
Welch  if she  would  consider  that the  bill,  as proposed,  as                                                               
something at the core  of "what you do," or if  she would "put it                                                               
farther down the hierarchy of DNR responsibilities."                                                                            
                                                                                                                                
MS. WELCH  stated her  belief that one  of the  department's core                                                               
responsibilities is to  do land sales.  She said  she thinks [the                                                               
department] will  have to look  for efficiencies, as it  has done                                                               
in the past, to try to  reduce its overhead.  She concluded, "And                                                               
so,  with the  huge budget  crunch  to us  and the  cost ...  per                                                               
parcel to process,  I just don't see this as  being high priority                                                               
for the state."                                                                                                                 
                                                                                                                                
REPRESENTATIVE  BERKOWITZ  thanked the  folks  at  DNR for  their                                                               
continued efforts.                                                                                                              
                                                                                                                                
Number 2087                                                                                                                     
                                                                                                                                
REPRESENTATIVE   FATE   mentioned    historic   data   from   the                                                               
department's  own records.    He expressed  that  that, plus  the                                                               
department's willingness to go to bat, has been helpful.                                                                        
                                                                                                                                
Number 2140                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON   referred  to  Amendment  1,   which  the                                                               
committee had  previously adopted.   He mentioned  page 2  of the                                                               
fiscal note and  asked, "Which one of those  is that incorporated                                                               
into - that geological and geophysical information?"                                                                            
                                                                                                                                
MS. WELCH  answered that the  fiscal note "does not  reflect that                                                               
at all,"  because the  fiscal note was  created for  the original                                                               
bill version.   One of the  reasons the word "or"  [language from                                                               
Amendment 1]  was requested  was to "lower  the standard,  if you                                                               
will,  for  what  would  be  required."   She  explained  that  a                                                               
geophysical  survey   is  a  much  greater   requirement  than  a                                                               
geological  evaluation.   She noted  that  most of  the land  use                                                               
plans reflect a high or low  mineral potential.  She said, "So, I                                                               
don't believe there will be  a substantive cost to determine that                                                               
through ... [a geological] evaluation, as opposed to a survey."                                                                 
                                                                                                                                
Number 2237                                                                                                                     
                                                                                                                                
REPRESENTATIVE WEYHRAUCH  asked if the  term "meander mile"  is a                                                               
term of art.                                                                                                                    
                                                                                                                                
Number 2249                                                                                                                     
                                                                                                                                
MR.  POUND offered  his understanding  that "meander  mile" is  a                                                               
term used in regard to water.                                                                                                   
                                                                                                                                
CHAIR WEYHRAUCH  gave the  example of  a home  that sits  along a                                                               
river and  asked if  the measurement  would be  from the  bank on                                                               
which  the  home  sits.    He asked  if  [the  measurement  would                                                               
involve] the middle  of the river, or the far  side of the river,                                                               
for example.                                                                                                                    
                                                                                                                                
REPRESENTATIVE FATE  explained that the meander  line is actually                                                               
the  shoreline contour.   He  offered an  example of  a peninsula                                                               
with a  base length  of only  200 feet, but  with a  meander mile                                                               
[out along the peninsula and back] that could well be a mile.                                                                   
                                                                                                                                
Number 2287                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BERKOWITZ,  on   that  point,  expressed  concern                                                               
regarding a  mandatory minimum of  a 300-foot waterfront.   In an                                                               
oxbow  situation, he  said, 300  feet may  not be  feasible.   He                                                               
asked what kind  of accommodation would be available  if 300 feet                                                               
were not consistent with the geography.                                                                                         
                                                                                                                                
REPRESENTATIVE FATE said he thinks  in that situation it would be                                                               
up  to the  commissioner to  determine whether  or not  that land                                                               
would be selected.                                                                                                              
                                                                                                                                
Number 2386                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON said  there  currently are  considerations                                                               
for  two timber  sales  - one  for a  laminated  veneer plant  in                                                               
Seward and the other for  a chipping operation that would operate                                                               
in  Point Possession,  near Valdez.    He asked  if remote  cabin                                                               
sites were sprinkled  throughout the area in which  the state was                                                               
trying  to  have  a  timber  sale,  how  complicated  would  that                                                               
[become] in  relation to  the timber sale,  and would  the person                                                               
who reserved  the right to  the pieces  of land be  reserving the                                                               
timber  rights  on  the  land  as well,  until  [that  land]  was                                                               
finalized as private property?                                                                                                  
                                                                                                                                
Number 2438                                                                                                                     
                                                                                                                                
MS.  WELCH  responded that  she  doesn't  believe that  [HB  319]                                                               
actually  changes classifications,  and land  use classifications                                                               
that have  already been determined  to be for timber  or forestry                                                               
as the  primary use would remain  so.  She stated  her assumption                                                               
that  those would  not  be allowed  to be  sold  from the  state.                                                               
Therefore, she  concluded, the lands being  considered for "these                                                               
value-added  type industries"  are those  that have  already been                                                               
classified as forestry, or within the state forest.                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON  asked  Ms.  Welch  to  confirm  that  her                                                               
understanding is that  the bill would not allow any  of the lands                                                               
within either the  forest or the state forestry  timberland to be                                                               
selected for recreational cabin sites.                                                                                          
                                                                                                                                
MS. WELCH answered that's correct.   She said, "It does not refer                                                               
to [AS]  38.04.065, which  is the land  use planning  statute, as                                                               
saying that it doesn't apply to  that.  So, my assumption is that                                                               
it's like any other land program;  ... it has to be classified in                                                               
some  type of  settlement category  in order  to be  sold, or  we                                                               
would have to devise a land use plan in order to do so."                                                                        
                                                                                                                                
Number 2500                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  asked Representative Fate if  that is also                                                               
his understanding.  He continued as follows:                                                                                    
                                                                                                                                
     Basically, if that's the case, then all of the Tanana                                                                      
       Valley and the Mat-Su [Matanuska-Susitna] Valley -                                                                       
        even the west side of the Susitna - would be off-                                                                       
      limits to this program.  Was that the intent of the                                                                       
     bill?                                                                                                                      
                                                                                                                                
Number 2525                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE  replied that  the intent of  the bill  is to                                                               
allow the commissioner and the  director of the Division of Lands                                                               
and Water [in  the Department of Natural  Resources] to designate                                                               
"those areas."   He added, "And  it states in the  bill ... those                                                               
lands  that  are  already  encumbered,   and  that  would  be  an                                                               
encumbrance."  He said, "So, we  want to make land available, but                                                               
we also  want to make sure  that we don't impede  the development                                                               
of the state of Alaska.                                                                                                         
                                                                                                                                
Number 2576                                                                                                                     
                                                                                                                                
MS.  WELCH,  in  response  to   a  question  from  Representative                                                               
Gruenberg,  offered her  understanding that  "meander mile"  is a                                                               
term of  art that makes sense,  but is not defined  in statute or                                                               
regulation.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG asked if that  term should be defined in                                                               
the bill,  or if the  committee should specifically state  on the                                                               
record that it would like [DNR] to define it in regulation.                                                                     
                                                                                                                                
MS. WELCH  replied that either  would be  fine.  She  offered her                                                               
understanding that  "the meander" would  be on the  ordinary high                                                               
water mark line; therefore, it  would be useful to define "that."                                                               
In  response to  a  question from  Representative Gruenberg,  she                                                               
said  the definition  could be  made  in regulation  if it's  not                                                               
defined [by the legislature] in statute.                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG  stated that he  wants it clear  for the                                                               
record that  it is  the intent  of the  committee that  that term                                                               
specifically be defined in a regulation.                                                                                        
                                                                                                                                
CHAIR WEYHRAUCH,  in response to  a question  from Representative                                                               
Gruenberg, concurred  that a motion  was not necessary  in regard                                                               
to the statement of intent.                                                                                                     
                                                                                                                                
Number 2644                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG   turned  to  the  last   line  of  the                                                               
previously  adopted Amendment  1 [to  Version I],  [regarding the                                                               
department's  identification  of   high  mineral  potential  land                                                               
including  surveys being]  "conducted  within  15 calendar  years                                                               
before  the  year for  which  the  schedule  is prepared;".    He                                                               
referred to  a letter (included  in the committee  packet), which                                                               
is  dated  February 16,  2004,  and  is  from the  Alaska  Miners                                                               
Association, Inc.,  signed by Steven  Borell.  He pointed  to the                                                               
second sentence  in the last paragraph  of page 1 of  the letter,                                                               
which read as follows:                                                                                                          
                                                                                                                                
     Given   that   geophysical  technology   continues   to                                                                    
     improve,  it   is  important  that   relatively  modern                                                                    
     surveys  are utilized  without  the  requirement for  a                                                                    
     survey immediately before a land offering.                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG suggested that  a survey could fall just                                                               
outside of  the 15-year  limit described in  the language  of the                                                               
bill and  still be considered "relatively  modern"; therefore, he                                                               
suggested that the language should be loosened a little bit.                                                                    
                                                                                                                                
Number 2778                                                                                                                     
                                                                                                                                
MS. WELCH responded  that 15 years is probably a  time frame with                                                               
which the  department can work.   She said she would  expect that                                                               
most of  the mineral evaluations  have been done within  the last                                                               
15 years, in regard to land use plans.                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG said he  understands that that may apply                                                               
now, but he  asked if that would always be  accurate.  He stated,                                                               
"I'm  concerned  that  you'll   find  that  -  particularly  with                                                               
budgetary  constraints -  you're not  going to  always be  having                                                               
surveys that are 15 years old, yet they're entirely adequate."                                                                  
                                                                                                                                
MS.  WELCH   said  she  understands   Representative  Gruenberg's                                                               
concern.  She continued as follows:                                                                                             
                                                                                                                                
     I  would  expect  that  -  before  we  would  change  a                                                                    
     classification from something  that had been previously                                                                    
     classified as low mineral potential  to a land disposal                                                                    
     category,  in order  to offer  that for  sale -  ... we                                                                    
     would   have  to   conduct   some   kind  of   geologic                                                                    
     evaluation.  Otherwise, for the  lands that are already                                                                    
     classified as  "settlement" we don't normally  do that,                                                                    
     because we  expect that we've  already gone  through an                                                                    
     analysis  of what's  of highest  and best  use for  the                                                                    
     property.                                                                                                                  
                                                                                                                                
Number 2808                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH noted  that [HB 319] would be heard  by the House                                                               
Resources   Standing  Committee   where  this   issue  could   be                                                               
considered in more detail.                                                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG indicated  that he  was satisfied  with                                                               
that.                                                                                                                           
                                                                                                                                
Number 2814                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON expressed  concern regarding  a [previous]                                                               
statement that  there wouldn't be  automatic public  access along                                                               
streams  and rivers,  unless they  are delineated  "by a  certain                                                               
width and development of those  right-of-ways."  He asked if that                                                               
is incorporated in the fiscal note.                                                                                             
                                                                                                                                
MS.  WELCH replied  that that  is part  of DNR's  analysis.   She                                                               
clarified that  [DNR] has to  do a best-interest finding  for the                                                               
parcels.    Part  of  that  best-interest  finding  would  be  to                                                               
determine what to reserve along the water bodies.                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON said  he  is concerned  that  there is  no                                                               
requirement  that "foot  traffic by  the public  is automatically                                                               
reserved."    He  asked  if  there is  some  way  that  could  be                                                               
accomplished.                                                                                                                   
                                                                                                                                
Number 2873                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE stated  his understanding  of the  intent of                                                               
the  bill is  that  when  a person  gets  entitled to  fee-simple                                                               
[land], he/she  only gets entitled  to that portion that  goes to                                                               
the  high-water mark.   He  said, "The  rest is  reserved to  the                                                               
public domain  or where that high  water comes from, and  so that                                                               
is  public access."    He explained,  "Being  state ground,  they                                                               
would have  to designate that  as being off-limits to  the public                                                               
for some  reason; it  wouldn't be precluded  because the  new ...                                                               
fee-simple  owner of  that property  in some  way stopped  people                                                               
from going  over that public land.   They don't own  that land up                                                               
to that high-water mark."                                                                                                       
                                                                                                                                
REPRESENTATIVE SEATON clarified  that his concern is  not just in                                                               
regard to where  there is a long distance  between the high-water                                                               
and  low-water marks  in  the  streambeds.   He  noted that  many                                                               
streams have deep banks where the  public would have to [walk] on                                                               
the area adjacent to the stream,  while not walking in the stream                                                               
or  "whatever  the  bank  consideration   is."    He  stated  his                                                               
understanding  that Ms.  Welch had  said that  "unless there's  a                                                               
specific finding  and a  specific designation, and  a width  of a                                                               
right-of-way that  are reserved in these  peaceable transfers, it                                                               
would not be automatically there."  He continued as follows:                                                                    
                                                                                                                                
     I'm  concerned  that  the   legislature  does  not,  by                                                                    
     accident, come in and create  situations where the bank                                                                    
     configuration  is   such  that  the  public   would  be                                                                    
     precluded because all of the  area above the high-water                                                                    
     mark - which is what can be transited - is going to be                                                                     
      private property with a fence down to the high-water                                                                      
     mark.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON said he doesn't  think that's the sponsor's                                                               
intent.                                                                                                                         
                                                                                                                                
TAPE 04-18, SIDE B                                                                                                            
Number 2991                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE  responded that  it is basically  the state's                                                               
option  to make  that  determination.   The proposed  legislation                                                               
simply  deals with  what  happens  to the  fee-simple  land.   He                                                               
stated,   "Once it's  fee simple  - when  it becomes  ownership -                                                               
that does  not extend,  as we've  said, to  that option  that the                                                               
state can  certainly exercise, which  usually is to open  that up                                                               
to public  access."  He  said that by  the very nature  of giving                                                               
fee simple  to the property owners,  it wasn't the intent  of the                                                               
bill to  preclude anyone from  public access to those  areas that                                                               
were not owned by individuals "under fee simple."                                                                               
                                                                                                                                
Number 2912                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  offered an  example  of  an area  with  a                                                               
bluff.   He said a person  could be walking along  the upper part                                                               
of  the bluff  and there  really isn't  a large  distance between                                                               
high water and low water where  he/she can transit.  He suggested                                                               
that unless  there is  a requirement  in the  bill that  says the                                                               
state shall  maintain access for  foot traffic along  the 300-400                                                               
feet  of a  river bank  [where  a person  owns fee-simple  land],                                                               
there  is   the  possibility  of   DNR  not  going   through  and                                                               
designating on each parcel a  certain width and place of passage.                                                               
He said that would mean  possible impact to pedestrian traffic in                                                               
the backcountry.                                                                                                                
                                                                                                                                
REPRESENTATIVE  FATE said  that  issue had  been considered,  but                                                               
"that  curtails options  of  DNR in  the state  of  Alaska."   He                                                               
reiterated that the commissioner still has the final authority.                                                                 
                                                                                                                                
Number 2832                                                                                                                     
                                                                                                                                
REPRESENTATIVE    FATE,   in    response   to    questions   from                                                               
Representative  Holm,  confirmed  that  a person  could  not  own                                                               
contiguous land sites  on a river; the bill is  designed to offer                                                               
remote recreational  sites, not subdivisions.   He also confirmed                                                               
that a  meander mile would  be a mile as  it goes back  and forth                                                               
along a river's edge, for example.                                                                                              
                                                                                                                                
Number 2760                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HOLM  said   he  shares  Representative  Seaton's                                                               
concern.  He said, "When you're  up against the bank on the other                                                               
side,  there's no  way to  go  down along  the river  bank."   He                                                               
mentioned  taking  the  best  fishing  sites  and  saying  that's                                                               
somebody's remote  site.  He said,  "I want the state  to be able                                                               
to at  least have access for  all the property behind  the river,                                                               
as  well; to  access the  river."   He explained,  "I'm concerned                                                               
that  we don't  have the  contiguous  portion, so  that we  don't                                                               
block,  if you  will,  the  properties behind  the  river or  not                                                               
adjacent  to a  river or  adjacent to  a lake,  so they  can have                                                               
access to that resource."                                                                                                       
                                                                                                                                
REPRESENTATIVE FATE said  he has not concerned  himself with this                                                               
issue as  much as Representative  Holm has, for a  simple reason:                                                               
"Most of those are accessible by boat or float plane."                                                                          
                                                                                                                                
REPRESENTATIVE HOLM said  he is concerned about  rendering in the                                                               
future.                                                                                                                         
                                                                                                                                
REPRESENTATIVE FATE  responded that,  in the future,  if somebody                                                               
built a cabin right on the  cliff, the high-water mark then would                                                               
be   on  the   cliff.     He   stated   his  understanding   that                                                               
Representative Holm  had said that  a person wouldn't be  able to                                                               
access the shoreline because it was so steep.                                                                                   
                                                                                                                                
REPRESENTATIVE HOLM  said most rivers  in the Interior  of Alaska                                                               
have a accreted side and a side  that's being cut out.  He said a                                                               
person  can't get  to  the riverbank  because  the water's  right                                                               
there.   That  is  the bank  that  is used  for  traversing.   He                                                               
clarified  his concern  is that  there is  not a  situation where                                                               
people  go down  the stream  and all  of a  sudden are  unable to                                                               
continue unless they  go all the way around  "some remote parcel"                                                               
to be able to continue down the stream [bank].                                                                                  
                                                                                                                                
REPRESENTATIVE FATE said  it is an historic  high-water mark that                                                               
is  taken at  the time  of a  survey, and  accretion or  flooding                                                               
could change the  area.  He stated that these  are questions that                                                               
really can't  be answered, because  of the very nature  of change                                                               
of those streams.                                                                                                               
                                                                                                                                
REPRESENTATIVE HOLM reiterated  his concern.  He  gave an example                                                               
of someone  moving along a stream  while fishing and coming  to a                                                               
spot where he/she cannot pass  someone's property.  He said, "The                                                               
high-water mark doesn't  fit in here, because when  you're on the                                                               
cutting  side of  the river,  there  is no  high-water mark;  the                                                               
high-water  mark is  maybe underneath  where  the bank  is."   He                                                               
indicated that if a person cannot  get to the bank, he/she cannot                                                               
get to  the high-water mark.   He  synopsized, "We don't  care if                                                               
somebody  owns to  the  bank;  we just  want  to  make sure  that                                                               
somebody has an opportunity to walk along the bank."                                                                            
                                                                                                                                
Number 2582                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE  responded that  the only situation  in which                                                               
he  has actually  seen  a nonexistent  high-water  mark is  where                                                               
there  is an  actually  rock formation  in the  cliff  form.   He                                                               
explained, "When you have alluvial  deposits, ... you will have a                                                               
high-water mark  up on  that bank  where you  have that  cut bank                                                               
that you've described, that keeps cutting into that ...."                                                                       
                                                                                                                                
REPRESENTATIVE HOLM stated that he respectfully disagrees.                                                                      
                                                                                                                                
REPRESENTATIVE  FATE  clarified that  he  was  talking about  the                                                               
high-water  mark.   He  mentioned  taking "setback"  requirements                                                               
into consideration.                                                                                                             
                                                                                                                                
MR.  POUND noted  that, for  the  most part,  there are  riparian                                                               
standards of 50-100 feet on all  navigable waters in the state of                                                               
Alaska.   That land  cannot be  developed.   He said  he believes                                                               
there  is an  access clause  to navigable  waters in  Alaska that                                                               
"supercedes  its   existing  statute  language,"   and  therefore                                                               
guarantees access to navigable waters  and requires that the land                                                               
right  next  to the  water  cannot  be  developed.   He  said  he                                                               
suspects a fence would be considered development.                                                                               
                                                                                                                                
REPRESENTATIVE HOLM said, "That works for me."                                                                                  
                                                                                                                                
Number 2409                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON said  he is confused by  hearing one person                                                               
say  that there  is  guaranteed public  access  along the  stream                                                               
banks  even if  there is  fee-simple  [land] right  to the  bank,                                                               
while  hearing Ms.  Welch  say  that there  is  no public  access                                                               
unless   each  specific   parcel  is   laid  out   with  [certain                                                               
specifications].  He emphasized  that he needs clarification from                                                               
DNR on the issue.                                                                                                               
                                                                                                                                
[HB  319  was  brought  back   before  the  committee  after  the                                                               
oversight hearing on this same date.]                                                                                           
HB 319-REMOTE REC.CABIN SITE SALES/LOTTERY SALE                                                                               
                                                                                                                                
CHAIR  WEYHRAUCH announced  that  the committee  would return  to                                                               
HOUSE BILL  NO. 319, "An  Act relating  to the disposal  of state                                                               
land by lottery; and relating  to the disposal, including sale or                                                               
lease, of remote recreational cabin sites."                                                                                     
                                                                                                                                
Number 0065                                                                                                                     
                                                                                                                                
MR. POUND noted  that he provided the committee  with a [two-page                                                               
handout included  in the committee  packet], which shows  both AS                                                               
38.05.127,   "Access  to   navigable   or   public  water",   and                                                               
AS 38.05.128, "Obstructions  to navigable water".   He stated his                                                               
belief that  this information should  answer the majority  of the                                                               
concerns of Representatives Seaton and Holm.                                                                                    
                                                                                                                                
Number 0105                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GRUENBERG offered  a  hypothetical  example of  a                                                               
river with one good fishing site on  it that a lot of people use.                                                               
He asked  what would prevent  one person from  basically "locking                                                               
that up and keeping everybody else from using it."                                                                              
                                                                                                                                
MR.  POUND indicated  that, based  upon the  previously mentioned                                                               
statutes, a person may not deny  that access.  He returned to his                                                               
example of  someone putting  up a  fence and  said that  would be                                                               
obstructing access to navigable water, which is a misdemeanor.                                                                  
                                                                                                                                
Number 0252                                                                                                                     
                                                                                                                                
REPRESENTATIVE FATE concurred with Mr. Pound's comments.                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG said that answers his question.                                                                        
                                                                                                                                
Number 0310                                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  asked Ms. Welch  to clarify if,  under the                                                               
terms of  the fee-simple  sales and integral  with the  sales, AS                                                               
38.05.127 would  require that public  access be  maintained along                                                               
all the water bodies [that are between] 300-400 feet.                                                                           
                                                                                                                                
Number 0380                                                                                                                     
                                                                                                                                
MS. WELCH said that's correct.   She reiterated that before [DNR]                                                               
can do  any kind of  land disposal, it has  to do a  finding that                                                               
the waters are public or navigable.                                                                                             
                                                                                                                                
Number 0422                                                                                                                     
                                                                                                                                
REPRESENTATIVE  FATE stated  for the  record his  appreciation of                                                               
the effort his staff has made on behalf of the bill.                                                                            
                                                                                                                                
Number 0470                                                                                                                     
                                                                                                                                
CHAIR WEYHRAUCH closed public testimony.                                                                                        
                                                                                                                                
Number 0490                                                                                                                     
                                                                                                                                
REPRESENTATIVE GRUENBERG  moved to  report CSHB 319,  Version 23-                                                               
LS0477\I,  Bullock, 2/14/04,  as amended,  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no  objection, CSHB 319(STA) was reported  out of the                                                               
House State Affairs Standing Committee.                                                                                         
                                                                                                                                

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