Legislature(1995 - 1996)

02/28/1996 01:35 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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        SB 293 CAP PROJ MATCHING GRANT FOR INDIAN RESERV                      
                                                                              
 SENATOR TORGERSON introduced  SB 293  as the next order of business           
 before the committee.                                                         
                                                                               
 Number 305                                                                    
                                                                               
 SENATOR ZHAROFF, Prime Sponsor, explained that SB 293 would clarify           
 an ambiguity in the statute with regard to how Metlakatla is                  
 treated under the Capital Matching Grants program.  Senator Zharoff           
 discussed the following sponsor statement:                                    
                                                                               
 SB 293 would amend the Capital Matching Grants program to clarify             
 that the Metlakatla Indian Community can participate in the program           
 as a municipality rather than as an unincorporated community.                 
                                                                               
 The Capital Matching Grants program became effective in FY 1994.              
 The prior administration adopted regulations to implement the                 
 Capital Matching Grants program that allowed Metlakatla to receive            
 Capital Matching Grants as both a municipality and unincorporated             
 community.  Last year, Legislative Legal Services determined that             
 Metlakatla could not legally receive a Capital Matching Grant as a            
 municipality and without an amendment to the Capital Matching                 
 Grants statutes, could only receive funds under the unincorporated            
 portion of the program.                                                       
                                                                               
 This bill corrects what I believe was an oversight in the original            
 legislation that created the Capital Matching Grants program to               
 specifically allow Metlakatla to receive their Capital Matching               
 Grants under the municipal portion of the program rather than as an           
 unincorporated community.                                                     
                                                                               
 Senator Zharoff said that since Metlakatla was not listed as a                
 municipality, Metlakatla only received $25,000.  As a municipality,           
 Metlakatla would be eligible for $50,000.  In discussions with the            
 Administration and the Department of Community & Regional Affairs,            
 there is no objection to SB 293.  He hoped that SB 293 would be               
 viewed as a housekeeping measure.                                             
                                                                               
 SENATOR RANDY PHILLIPS clarified that SB 293 would be recognized as           
 an incorporated area, as a municipality which would allow                     
 Metlakatla to be eligible for $50,000.  SENATOR ZHAROFF agreed with           
 that assessment.  SENATOR RANDY PHILLIPS asked why Metlakatla was             
 not currently receiving that amount.  SENATOR ZHAROFF explained               
 that Metlakatla was omitted from the legislation that established             
 the Capital Matching Grants Program in 1994; that was an oversight.           
                                                                               
 SENATOR TORGERSON pointed out that the additional money, $14,910,             
 is needed to upgrade Metlakatla.  Perhaps the department could                
 inform the committee from where this money would come.                        
                                                                               
 Number 354                                                                    
                                                                               
 KIM METCALFE-HELMAR, Special Assistant for the Department of                  
 Community & Regional Affairs, supported SB 293 which the department           
 views as a housekeeping measure.  SB 293 would clarify an ambiguity           
 in current law by establishing Metlakatla as a municipality for the           
 purposes of the Municipal Capital Project Matching Grant Program.             
 She requested that Bill Rolfzen from the department to come forward           
 to answer specific questions.                                                 
                                                                               
 SENATOR RANDY PHILLIPS inquired as to how Metlakatla operated.                
                                                                               
 BILL ROLFZEN, State Revenue Sharing for the Department of Community           
 & Regional Affairs, explained that the Metlakatla Indian Community            
 operates similarly to a municipality organized under state law.               
 Metlakatla has a City Council, a Mayor, and it provides basic                 
 community services for Annette Island.  As far as Mr. Rolfzen knew,           
 the Mayor and the City Council are elected by the people in                   
 Metlakatla.  Mr. Rolfzen clarified that the Metlakatla Community              
 Development Corporation must be established as required under the             
 Municipal Assistance Legislation which was amended in 1986 as well            
 as under the National Forest Receipts Program.  The corporation has           
 been formed.  Within the charter of the corporation, the election             
 of the board of directors must be open to all members of the                  
 community regardless of race.  Once the money is received, a                  
 determination regarding how the money would be spent would be made            
 and then the money would be given to the Metlakatla Indian                    
 Community.  The Metlakatla Indian Community is basically the local            
 government that provides all the local services.  The expenditure             
 of the fund would be documented in the financial statements the               
 department receives; those monies are audited and tracked.                    
                                                                               
 Number 382                                                                    
                                                                               
 SENATOR KELLY asked if SB 293 was site specific to Metlakatla.                
 SENATOR TORGERSON replied yes.                                                
                                                                               
 SENATOR TORGERSON pointed out that the fiscal note is zero,                   
 although the transition would require $14,910.  He assumed that               
 money would be taken from other communities in order to make the              
 transition.                                                                   
                                                                               
 JACK FARGNOLI, Office of Management and Budget for the Office of              
 the Governor, said that the funding issue is before the                       
 legislature.  One option would entail the extra money being added             
 to the total amount of money being appropriated to both programs or           
 money could be taken from one side and moved to the other side.               
 Once the funding decision is made for the municipal program, that             
 money would be spread by formula.  Therefore if money were added to           
 that side, it would come out of the CRA side.  If money were added            
 to the CRA side, the money would come from Community & Regional               
 Affairs.  Including Metlakatla in this funding would be another               
 community for which the municipal funding would have to be spread             
 by formula.  Mr. Fargnoli pointed out that there are two choices,             
 either add more money or let the allocations follow the formula.              
                                                                               
 SENATOR TORGERSON asked if the Administration's position was to               
 leave it to the legislature.  JACK FARGNOLI noted that the Governor           
 has proposed a net cut of the Metlakatla decision.  Mr. Fargnoli              
 assumed that the total funding level would remain the same                    
 and Metlakatla would be included with the municipalities.                     
                                                                               
 Number 415                                                                    
                                                                               
 SENATOR TORGERSON handed out a breakdown of where this money would            
 come from and listing each municipality in the current program.  He           
 assumed that this would create zero impact to the budget.  This               
 report was provided by Municipal Grants in the Administration.                
                                                                               
 JACK FARGNOLI said that original intent was to include Metlakatla             
 as a municipality which was echoed in regulations through a                   
 definition including Metlakatla as a municipality.  The way the               
 local revenue sharing program was written, the unincorporated side            
 of the program, meant that Metlakatla had to be included as an                
 unincorporated entity as well.  Last year, Senator Halford pointed            
 out that a different prevailing statute's definition of                       
 municipality, Metlakatla did not fall under that.  The only                   
 recourse was to allow Metlakatla to remain on the unincorporated              
 side of the program.                                                          
                                                                               
 SENATOR RANDY PHILLIPS asked if there was a tax base in Metlakatla.           
 JACK FARGNOLI replied yes and deferred to Mr. Rolfzen.                        
                                                                               
 Number 449                                                                    
                                                                               
 SAL ATKINSON, member of the Metlakatla City Council, informed the             
 committee that he was present to represent the mayor and the                  
 council.  He thanked Senator Zharoff for introducing SB 293.  Mr.             
 Atkinson explained that last year, Metlakatla missed some matching            
 grant funds through some technical error.  After reviewing the                
 situation, the community discovered that it qualified under the               
 definition of unincorporated community as well as the definition of           
 a municipality.  Metlakatla has its own constitution, law and order           
 code, police force, judicial system, 12 councilmen, judges, and all           
 the services provided by other communities.  Mr. Atkinson                     
 emphasized that Metlakatla wants to build a closer working                    
 relationships with the State of Alaska.  SB 293 would draw                    
 Metlakatla closer to this goal.                                               
                                                                               
 SENATOR RANDY PHILLIPS inquired as to how many members were there             
 on the Metlakatla council.  SAL ATKINSON said there were 12                   
 members.  The town engineer is elected separately.  In response to            
 Senator Randy Phillips' question regarding Metlakatla's tax base,             
 Mr. Atkinson stated that Metlakatla does not have a tax base.                 
 There are some timber lands and that money is used to provide                 
 services to the people.  For instance, services are provided for              
 senior citizens in Metlakatla beyond what is provided in other                
 communities.                                                                  
                                                                               
 SENATOR RANDY PHILLIPS asked if the monies that Metlakatla has for            
 the government comes entirely from timber sales.  SAL ATKINSON                
 informed the committee that Metlakatla does receive grants from the           
 State of Alaska.  At one time, Metlakatla received money from the             
 Bureau of Indian Affairs, but that money is shrinking.  Therefore,            
 Metlakatla wants to diversify its economy.  Currently, Metlakatla             
 does not have a tax base, but eventually that may happen.  Mr.                
 Atkinson noted that research is being done on the possibility of a            
 sales tax.  Metlakatla has a population of 1,826.                             
                                                                               
 In response to Senator Kelly's question regarding the location of             
 Metlakatla, SENATOR RANDY PHILLIPS said that Metlakatla is south of           
 Ketchikan.  SENATOR KELLY asked if all of Annette Island was                  
 Metlakatla, is the community called Metlakatla?  SAL ATKINSON                 
 replied yes.  Mr. Atkinson explained that when the area was set               
 aside by presidential proclamation, the area was set aside for the            
 Indians of Metlakatla living on Annette Islands.                              
                                                                               
 Number 495                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asked if the people of Metlakatla had                  
 decided not to participate in the Native Land Claims in lieu of               
 title to the land and a way of life.  SAL ATKINSON agreed that the            
 people of Metlakatla decided not to participate in the Native Land            
 Claims.  Mr. Atkinson explained that all the land of the Annette              
 Islands belongs to the federal government, a parcel of land can be            
 leased for a maximum of 50 years renewable.                                   
                                                                               
 SENATOR KELLY asked if homes were built on that leased land.  Are             
 homes bought and sold on leased land?  SAL ATKINSON said that homes           
 were built on the leased land, but rarely is a house on leased land           
 sold.  These homes are in private ownership.                                  
 SENATOR RANDY PHILLIPS thought that the tribe decided that the land           
 belongs to the people collectively, but that is not the case.  Why            
 did the tribe opt out of the Native Land Claims Act?  SAL ATKINSON            
 expressed gratitude that the tribe had chosen not to participate in           
 the Native Land Claims Act.  A subsistence lifestyle is still                 
 present and no commercial fishery is allowed within any of the                
 waters surrounding Annette Island.  For instance, if someone                  
 proposes a shellfish harvest or other commercial harvest,                     
 Metlakatla can refuse.                                                        
                                                                               
 SENATOR HOFFMAN asked if members of the tribe could go commercial             
 fish in those waters.  SAL ATKINSON replied yes.                              
                                                                               
 SENATOR KELLY inquired as to how far from the island are commercial           
 fisheries not allowed.  SAL ATKINSON informed the committee that it           
 extended 3,000 feet from the land.                                            
                                                                               
 SENATOR KELLY asked if any of the people in Metlakatla belonged to            
 any of the regional corporations.  SAL ATKINSON said no, they are             
 not allowed; although, the ANSCA amendments would allow the people            
 of Metlakatla to inherit stock, but not a controlling amount.                 
                                                                               
 In response to Senator Randy Phillips, SAL ATKIINSON said that the            
 elders of Metlakatla made the decision not to participate in the              
 Native Land Claims Act.  SENATOR RANDY PHILLIPS asked what the                
 elders of Metlakatla saw that other elders did not with regard to             
 the Native Land Claims Act.  SAL ATKINSON said that the elders of             
 Metlakatla looked at the way of life they had; they did not want to           
 change their lifestyle which still prevails today.                            
                                                                               
 SENATOR TORGERSON asked if anyone else would like to testify.                 
 Hearing none, Senator Torgerson said that he was tempted to hold              
 SB 293 until Wednesday for a corrected fiscal note.  He did not               
 believe that the Administration was being honest with the zero                
 fiscal note when money, $14,000, will be taken from tax based                 
 communities to spread around.  Senator Torgerson explained that his           
 opposition comes from the Administration's opposition to SB 20                
 which is about the same, but with a $900,000 fiscal note because              
 the Administration did not like that bill.  SB 293 was held until             
 Wednesday and a request will be made for a corrected fiscal note.             

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