04/26/1994 09:02 AM Senate CRA

 The Senate Community & Regional Affairs Committee was called to               
 order by Chairman Randy Phillips at 9:02 a.m.  He brought  HB 259             
 (title am)  (LAND GRANT FOR LAKE & PENINSULA BOROUGH) before the              
 committee and announced testimony would be taken over the                     
 teleconference network.                                                       
                                                                               
 Number 022                                                                    
                                                                               
 JEFF PARKER, Anchorage Fish & Game Advisory Board, testified from             
 Anchorage in opposition to HB 259, stating that the bill is                   
 controversial because it involves lands that are used by citizens             
 from throughout the state and, fundamentally, cannot likely create            
 a significant tax base.  He noted he has forwarded some questions             
 to the committee that he would like to see addressed by the                   
 borough, and he urged that the committee delay passage of the                 
 legislation and to look to public concerns first about lands that             
 should be retained in public ownership.                                       
 Number 062                                                                    
                                                                               
 ALICE RUBY, testifying on behalf of the Bristol Bay CSA Board,                
 reiterated a previous request that HB 259 and SB 375 be held over             
 until the next legislative session so that a good planning process            
 can be established and to come up with a way to keep from causing             
 a detriment to some of their most important critical habitat and              
 recreation subsistence areas.                                                 
                                                                               
 Number 090                                                                    
                                                                               
 LAMAR COTTEN, representing the Lake & Peninsula Borough, responded            
 to a series of questions sent to the committee by Jeff Parker, and            
 stated he thinks the questions are going in the wrong direction.              
 The bill is not about lodges, Mr. Parker's lodge or potential                 
 competitors to his lodge industry.  It is about a municipality that           
 is attempting to diversify their economy and not be as reliant upon           
 the state government for funds to provide basic services.                     
                                                                               
 Number 178                                                                    
                                                                               
 SENATOR TAYLOR asked if it was just an accident of the formula that           
 brings about the large diversity that would exist between various             
 communities on the land entitlement that they have received.  LAMAR           
 COTTEN answered that was his perception.  He said there seems to be           
 no relationship between the size of the borough, the size of the              
 population and what is needed.  SENATOR TAYLOR commented that he is           
 supportive of moving the land ownership to the smallest unit of               
 government we can find, because the closer it gets to the people,             
 the better utilization those people will make of that land.  He               
 would like to see a requirement in the legislation that some of               
 this land eventually make its way into private ownership that will            
 provide a tax base.                                                           
                                                                               
 Number 270                                                                    
                                                                               
 SENATOR RANDY PHILLIPS said in HB 259, the Lake & Peninsula Borough           
 is asking for more lands than is allocated for other boroughs                 
 around the state.  SB 375, which is also in the committee,                    
 provides an equal playing ground for all boroughs in their request            
 for lands to be used the boroughs themselves.  He said Senator                
 Adams has proposed that a subcommittee be formed to work on the two           
 bills and the allocation issues, and bring them back before the               
 committee for final action at its next meeting.                               
                                                                               
 Number 292                                                                    
                                                                               
 REPRESENTATIVE CARL MOSES said his problem with a set formula is              
 that land in different areas of the state varies so much in value.            
 Lands in the Lake & Peninsula Borough are probably one-fiftieth the           
 value of lands in the Mat-Su Valley, so it is hard to make a                  
 equitable basis on a flat standard throughout the state.   He                 
 pointed out that much of the land in the LPB is wet land, marsh               
 land and small lakes.                                                         
                                                                               
 Number 315                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asked Representative Moses if he would be              
 amendable to changing the 187,000 acre figure to the 125,000 acre             
 figure that DNR has identified for selection. REPRESENTATIVE MOSES            
 responded that half a loaf is better than none, but the 187,000               
 figure doesn't mean that they will get that amount because DNR may            
 restrict a lot of the lands that they might want.                             
                                                                               
 Number 345                                                                    
                                                                               
 SENATOR RANDY PHILLIPS stated HB 259 would be held until later in             
 the meeting.                                                                  
 SENATOR RANDY PHILLIPS brought  HB 259 (title am)  (LAND GRANT FOR            
 LAKE & PENINSULA BOROUGH) back before the committee.                          
                                                                               
 TAPE 94-33, SIDE B                                                            
 Number 001                                                                    
                                                                               
 REPRESENTATIVE MOSES urged that HB 259 be passed out of committee.            
                                                                               
 There was discussion by the committee on changing the 187,000                 
 figure to 125,000 acres, which is the figure the borough and state            
 have agreed to.  There were 62,000 acres in question.                         
                                                                               
 Number 098                                                                    
                                                                               
 SENATOR LEMAN moved the adoption of the following amendment to HB
:                                                                          
                                                                               
 Amendment No. 1                                                             
                                                                               
 Page 2, line 2:  Change "187,000" to "125,000"                                
                                                                               
 Hearing no objection, Amendment No. 1 was adopted.                            
                                                                               
 Number 107                                                                    
                                                                               
 SENATOR LEMAN moved that HB 259, as amended, be moved out of                  
 committee with individual recommendations.  Hearing no objection,             
 it was so ordered.