Legislature(1995 - 1996)
03/27/1995 10:40 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 79(FIN) An Act allowing the Department of Natural Resources to quitclaim land or interests in land, including submerged or shore land, to a municipality to correct errors or omissions of the municipality when inequitable detriment would result to a person due to that person's reliance upon the errors or omissions of the municipality. Co-chairman Halford directed that CSHB 79 (Fin) be brought on for discussion. Representative Jerry Mackie, sponsor, came before committee. He explained that the bill relates to a 50-year-old problem that occurred at Skagway immediately after World War II. The river was eroding the front portion of the city, and the Army Corps of Engineers constructed a dike. The city subsequently backfilled behind the dike and subdivided and sold the property. Owners of the lots now have clouded title which raises problems when one attempts to sell or transfer a lot. The community high school is also located on the property. The Dept. of Natural Resources has been unable to rectify the problem. A statutory fix is thus necessary. The bill contains an 18- month sunset provision which allows a window within which the Dept. of Natural Resources could fix the problem for Skagway. That window would then cease to exist. Representative Mackie referenced a map of the area showing the 10 to 12 lots impacted by the bill. He reiterated that the mistake was made by the community prior to statehood, zoning laws, etc. Skagway has had perpetual problems with the issue. Both the Dept. of Natural Resources and the city of Skagway requested the proposed bill. Senator Randy Phillips asked that the Dept. of Natural Resources contact communities to ensure that no others are experiencing a problem similar to that at Skagway. Representative Mackie advised that Skagway has not yet reached its entitlement. Land impacted by the proposed bill would apply toward that cap. Senator Zharoff acknowledged that similar legislation had been before the legislature for a number of years. The issue was discussed in Senate Resources, and an amendment to resolve the problem was included in another bill. Co-chairman Halford asked if the bill would cover other municipalities. Representative Mackie responded negatively. Co-chairman Frank noted that his concern at the time Senate Resources amended Senator Leman's bill was "the broad application of the opportunity to control submerged or tidelands." He then voiced his understanding that the proposed bill reflects a "limited application for tidelands." Representative Mackie concurred. In response to an additional question from Co-chairman Halford, Representative Mackie advised that Skagway is a first class city which has not received its full entitlement from the state. Co-chairman Halford said he would feel more comfortable had Senate Resources reviewed the bill. He again sought assurance that the legislation would have no other application than to Skagway. NICO BUS, Legislative Liaison, Dept. of Natural Resources, came before committee. He said that the department would contact the various municipalities. He added that, to the best of his knowledge, no other municipality qualifies under the terms of the bill. Co-chairman Frank asked what feature of the bill limits it to Skagway. Representative Mackie voiced his understanding that as the bill is drafted, with the criteria laid out, no other municipalities have brought similar problems to the department's attention. The department has attempted to resolve the problem for ten years. It was determined that the only way to do so was per the wording in the present bill. Co-chairman Halford voiced concern that language within the bill would lead people to believe that if they relied on an error by any municipality, the Dept. of Natural Resources is authorized to "give them the state land to make up the problem." The bill only applies to the entitlement, if an entitlement remains. If the municipality has no remaining entitlement, the bill still works. Co-chairman Frank suggested limiting the bill to first class cities. Senator Phillips asked how the Dept. of Natural Resources determined no other communities would be involved. Mr. Bus explained that the Dept. of Community and Regional Affairs, Alaska Municipal League, and Dept. of Natural Resources have all been involved in both the issue and numerous legislative hearings over a number of years. There has been sufficient public process but no feedback from "any other municipalities." Co-chairman Frank MOVED to delete the word "municipality" and insert "first class city" in lieu thereof throughout subsection (11) on pages 3 and 4. Other members raised the issue of a possible title change to the House legislation. Co-chairman Frank voiced his belief that the wording change would be consistent with title language referring to a municipality. Co-chairman Halford called for objections to the amendment. None were forthcoming, and the amendment was ADOPTED for incorporation within a Senate Finance Committee Substitute. Senator Randy Phillips MOVED that SCS CSHB 79 (Fin) pass from committee with individual recommendations and accompanying zero fiscal notes. Several scenarios for changing the wording within subsection (11) without impacting the title were suggested by Co-chairman Frank and Senator Rieger. Co-chairman Halford subsequently suggested that a legal opinion be obtained. Senator Phillips withdrew his motion for passage, and the bill was HELD in committee pending receipt of the above-noted opinion. ADJOURNMENT The meeting was adjourned at approximately 11:05 a.m.
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