Legislature(2001 - 2002)
02/12/2002 01:35 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 263-REAL PROPERTY CONVEYANCES CHAIRMAN BEN STEVENS called the Senate Labor & Commerce Committee meeting to order at 1:35 p.m. and announced SB 263 to be up for consideration. MS. ANNETTE KREITZER, Staff to Senator Leman, sponsor of SB 263, said this bill was requested by Sealaska and attempts to resolve a legal dilemma. She explained: Under the Alaska Native Claims Settlement Act (ANCSA) village corporations own surface estate to lands conveyed under ANCSA, but regional corporations own the subsurface estate. Where estate is passed to a person by a quit claim deed, only the rights the grantor had are passed to the grantee, so the village corporations cannot pass on the right to disturb the surface of the property so that shareholders could build, for instance, a home. To correct this SB 263 amends the conveyance statutes to allow after acquired title for shareholders. There have been some concerns that the legislation as introduced was too broad and would have unintended impacts and for that reason you have a committee substitute in your packets, LS1318\J Bannister 2/12/02. On page 2, lines 3 - 6, subsection (b) - this is the subsection we believe will ameliorate the concerns that the Department of Natural Resources had… SENATOR DAVIS moved to adopt the CS to SB 263. There were no objections and it was so ordered. MR. RICHARD HARRIS, Sr. Vice President, Natural Resources, Sealaska Corp. and MR. JON TILLINGHAST, Counsel to Sealaska, said they appreciated consideration of this bill. MR. HARRIS explained: It [this bill] was driven by a problem that we began to encounter in which village corporations had subdivided their property and conveyed some of their land to shareholders. In doing those transactions, in some cases we had worked with the village corporations and actually gave them a subsurface easement, which allowed people to develop the subsurface in terms of putting in foundation, water lines, sewers and sewer lines, to be able to move sand and gravel around on the estate that belonged to Sealaska. In some circumstances, however, subdivisions were created and the subsurface easement was not completed or transferred to the recipients of the property. We estimate that we have right now about 500 - 600 people who own lots in Southeast Alaska who don't have a clear title. They are currently the subsurface in some way, probably without the appropriate easement. This legislation would enable us to create the easement, pass it to the village corporation who would then, by virtue of that action, would allow the easement, which we are willing to grant to be transferred down to people. The effect is that we clear up their title. SENATOR TORGERSON questioned the wording of the purpose section and asked if they were trying to accomplish more than one purpose. MR. TILLINGHAST replied that they could say "the purpose". SENATOR TORGERSON asked why they referred to "some cases" in the purpose section. MR. TILLINGHAST replied with the exceptions the bill has for state conveyances and municipalities and the University of Alaska, it is probably now more accurate to say "in some cases". CHAIRMAN STEVENS asked if that was (b) on page 2. MR. TILLINGHAST replied yes. SENATOR TORGERSON asked if they needed to mention the Mental Health Trust since it is a trust, not an agency of the state or the executive branch. MR. TILLINGHAST said they would have no objection to that language. SENATOR LEMAN said he supported this legislation. SENATOR TORGERSON moved to adopt amendment #1 on page 1, line 7 delete "one" and insert "the" and on page 2, line 6 insert "Mental Health Trust". There were no objections and it was so ordered. SENATOR LEMAN moved to pass CSSB 263 (L&C) from committee with individual recommendations. There were no objections and it was so ordered.
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