Legislature(1997 - 1998)
02/03/1997 01:32 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 62 CITIES: PAYMENTS IN LIEU OF TAXES CHAIRMAN MACKIE brought SB 62 before the committee as the next order of business. SENATOR GEORGIANNA LINCOLN , prime sponsor of SB 62, read the following sponsor statement into the record: "SB 62 provides the framework for disbursement of a new source of federal funds to some to some Alaska communities. In the last session of Congress, Senator Stevens was successful in amending the Omnibus Park and Public Lands Management Act of 1996 to make additional Payment in Lieu of Taxes funding (PILT) available to cities in the unorganized borough. These communities are now eligible to receive PILT moneys generated from compensation by the federal government for the acreage of federal lands in their census area. "The inventory of lands is currently underway in order to determine the level of payment available within each of eleven federal census areas. The Alaska Department of Community & Regional Affairs has worked with Senator Stevens office on this legislation, and is the entity within the state that will administer the pass through to the eligible communities. It is the intent of the federal legislation that these funds be provided to the communities for use for "any governmental purpose." "SB 62 provides for annual payments to eligible communities on a per capita basis. The amount available to the respective communities for this fiscal year will not be known until the land inventory is completed by the Bureau of Land Management. Subsequent annual payments will be subject to the amount appropriated for the program by the federal government each fiscal year. Under this legislation, payments to the eligible communities will be made by November 1 of the fiscal year in which the money is received by the state." Senator Lincoln noted that Bill Rolfzen and Kim Metcalf-Helmar from the Department of Community & Regional Affairs were present to respond to questions. Number 485 LAMAR COTTEN , Deputy Commissioner, Department of Community & Regional Affairs, voiced the department's support for SB 62. They believe it will provide assistance to cities in the unorganized borough that currently are not receiving, directly or indirectly, benefits or payments through PILT; that it does comply with the intent of Senator Stevens; and there is no overhead administrative cost to the program. Number 502 SENATOR WILKEN inquired if there is a like program for federal land within an organized borough. BILL ROLFZEN , Program Administrator, Department of Community & Regional Affairs, acknowledged that organized boroughs in the state receive a PILT payment on the same formula as the federal census areas will be receiving their PILT payments. Responding to question from Chairman Mackie as to whether this would have any adverse effect, he explained this is a nationwide program, and by adding these federal census areas it will dilute the nationwide pot slightly. Number 514 CHAIRMAN MACKIE asked for the pleasure of the committee on SB 62. SENATOR DONLEY moved SB 62 and the accompanying fiscal notes be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.
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