Legislature(2017 - 2018)BUTROVICH 205

03/22/2017 03:30 PM RESOURCES

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Audio Topic
03:30:14 PM Start
03:30:47 PM SB58
03:34:22 PM Confirmation Hearing: Board of Game
04:49:44 PM SB88
05:05:31 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
Board of Game
- Karen Linnell
- Tom Lamall
-- Public Testimony on Appointees --
*+ SB 88 AK MENTAL HEALTH TRUST LAND EXCHANGE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 58 DEPT OF LAW: ADVOCACY BEFORE FERC TELECONFERENCED
Moved SB 58 Out of Committee
          SB  88-AK MENTAL HEALTH TRUST LAND EXCHANGE                                                                       
                                                                                                                                
4:49:44 PM                                                                                                                    
CHAIR GIESSEL  announced consideration of  SB 88 that  deals with                                                               
land exchanges  related to  the Alaska  Mental Health  Trust Land                                                               
Office.                                                                                                                         
                                                                                                                                
SENATOR  STEDMAN,  Alaska   State  Legislature,  Juneau,  Alaska,                                                               
sponsor  of SB  88, said  this measure  facilitates a  land trade                                                               
between  the  Alaska Mental  Health  Trust  and the  U.S.  Forest                                                               
Service in Southeast. The federal  government will receive 20,000                                                               
acres and will give up 18,000  acres. This land exchange has been                                                               
going on for many years and is a win-win situation.                                                                             
                                                                                                                                
He explained  that some  lands are  adjacent to  communities like                                                               
Petersburg and Ketchikan that the  Mental Health Trust had viewed                                                               
for timber  harvest for revenue,  and both communities  wanted to                                                               
have the  timber harvest  not so close  to their  communities and                                                               
their view sheds. So, that  facilitates some of these parcels; it                                                               
improves the logging productivity  available from Alaska land. It                                                               
has been worked through many  meetings with environmental groups,                                                               
communities, Mental Health, and the Forest Service.                                                                             
                                                                                                                                
WYN MENEFEE,  Deputy Director, Trust  Land Office,  Mental Health                                                               
Trust,  Anchorage, Alaska,  said essentially,  the Alaska  Mental                                                               
Health Trust  is the foundational  purpose for this  exchange. It                                                               
is a perpetual trust that  helps support comprehensive integrated                                                               
mental  health  services  in  Alaska.   He  provided  a  list  of                                                               
beneficiaries.                                                                                                                  
                                                                                                                                
He said the  trust gives about $20 million  annually to projects,                                                               
activities,  state   agencies,  and  non-profits   statewide.  In                                                               
Southeast  they  have  done  capital  grants  like  the  $100,000                                                               
capital grant  to Petersburg Mental  Health Services and  the $10                                                               
million  grant to  help  fund Medicare.  Revenues  are needed  to                                                               
support that  and to  keep the  trust alive. So,  the job  of the                                                               
Trust  Land Office  is basically  as  a contractor  to the  Trust                                                               
Authority.  They  manage  the  non-cash   assets:  the  land  and                                                               
resources,  in  the best  interests  of  the trust.  They  manage                                                               
multiple asset classes and one of those is timber.                                                                              
                                                                                                                                
This  exchange  will  help diversify  their  portfolio;  it  will                                                               
increase timber revenues  over current land holdings  and it will                                                               
protect  the  trust corpus  by  not  devaluing timber  assets  in                                                               
Southeast  by  letting the  timber  industry  fail, because  they                                                               
would end up having no one to purchase their timber.                                                                            
                                                                                                                                
MR.  MENEFEE  showed  them  a  picture  of  trust  land  holdings                                                               
currently  scattered throughout  Southeast  Alaska and  explained                                                               
that  the land  exchange will  take about  18,000 acres  of trust                                                               
lands which  are primarily adjacent  to communities  in Southeast                                                               
Alaska  in exchange  for 20,000  acres that  are more  removed on                                                               
Prince of  Wales Island and  Shelter Cove. He explained  that the                                                               
trust  does subdivisions  and  commercial  transaction leases  as                                                               
well as  timber harvest  on their  lands, but there  is a  lot of                                                               
resistance to  having these activities next  to communities. It's                                                               
basically  an equal  value land  exchange; the  idea is  to allow                                                               
timber   extraction  in   an  area   that  won't   conflict  with                                                               
communities.                                                                                                                    
                                                                                                                                
The exchange  has two phases:  because the timber industry  is at                                                               
real risk of  going under for the lack of  timber, some timber is                                                               
needed immediately  to keep  it going. So,  some parcels  will be                                                               
exchanged within  one year  and the  remaining will  be exchanged                                                               
within two years.  It just gives the Forest Service  more time to                                                               
get the appraisals done for the other parcels.                                                                                  
                                                                                                                                
4:56:45 PM                                                                                                                    
MR.  MENEFEE said  among the  benefits of  the exchange  are that                                                               
fact that  it consolidates  trust land  ownership, which  is good                                                               
for  management; it  replaces lands  adjacent to  the communities                                                               
with ones  that are  more conducive for  timber harvest;  it will                                                               
generate about $40-60 million over  the 20 years; it will protect                                                               
both timber and  tourism industries; it will save  real jobs; and                                                               
it protects the view sheds and certain old growth stands.                                                                       
                                                                                                                                
He  clarified that  the timber  industry impacts  the economy  in                                                               
many ways:  stevedores, equipment rental,  maintenance, purchase,                                                               
transportation,   timber  fellers,   and  cruisers.   Any  timber                                                               
harvested on  trust lands to  be received via the  exchange would                                                               
be done  in an environmentally  responsible manner,  because they                                                               
are required to  follow the Alaska Forest Practices  Act that has                                                               
been demonstrated  to be effective  at protecting  salmon streams                                                               
and water quality.                                                                                                              
                                                                                                                                
Why do  it now? Mr.  Menefee answered  that this exchange  is the                                                               
result of  about 10 years of  planning and public input  from the                                                               
Tongass Futures Roundtable conservation  groups which consists of                                                               
35  different parties,  the Forest  Service and  communities. The                                                               
Southeast  Alaska  Conservation  Council (SEACC)  expressed  some                                                               
concern that  one of the parcels,  the No Name Bay  parcel, could                                                               
be exchanged because  it is involved in  litigation. However, the                                                               
Department  of Law  (DOL)  determined that  the  trust has  clear                                                               
title to  that parcel  and the  lawsuit in  no way  prohibits the                                                               
State   Legislature   from   enacting  the   exchange   in   this                                                               
legislation.                                                                                                                    
                                                                                                                                
5:00:06 PM                                                                                                                    
Further, he said  the timber industry with its lack  of timber to                                                               
market will  go under in two  years, and they are  trying to give                                                               
them  timber before  they  leave,  because once  it  is gone,  it                                                               
doesn't' just start  back up. People move and it's  just not easy                                                               
to say  come on up  and cut our timber.  So, Alaska would  lose a                                                               
market.                                                                                                                         
                                                                                                                                
5:01:54 PM                                                                                                                    
He  explained that  the Forest  Service has  the majority  of the                                                               
timber supply in Southeast and  they have withdrawn and locked up                                                               
much of the land. That means  there is a dependency on the Mental                                                               
Health  Trust Land  Office, the  University, the  State Forestry,                                                               
and the Forest Service to all  work together on the transition to                                                               
a  sustainable  young growth  harvest,  but  timber needs  to  be                                                               
provided in the transition period.                                                                                              
                                                                                                                                
MR.  MENEFEE said  that Senator  Murkowski  and Senator  Sullivan                                                               
introduced SB 131  and Representative Young introduced  HR 513 in                                                               
Washington, D.C., that basically direct  the Forest Service to do                                                               
the exchange. They expect things  to start moving very soon (this                                                               
spring) on the  federal side. If it's approved,  they would start                                                               
right  away  on  working  with  the Forest  Service  to  get  the                                                               
appraisals  and surveys  done within  a one-year  timeframe. This                                                               
issue  has a  lot of  support  although most  of it  is for  2016                                                               
federal legislation that is the  same piece of legislation. It is                                                               
a positive revenue generating exchange  and the trust needs those                                                               
revenues  to provide  for its  beneficiaries. He  added that  the                                                               
trust supports those programs without going to the general fund.                                                                
                                                                                                                                
CHAIR GIESSEL said a number of people were on line to testify.                                                                  
                                                                                                                                
SENATOR  STEDMAN said  he would  rather have  another meeting  so                                                               
people could have  ample time to say their piece  than try to run                                                               
them short because the committee is out of time.                                                                                
                                                                                                                                
CHAIR GIESSEL said she would hold SB  88 and bring it back at the                                                               
earliest opportunity.                                                                                                           

Document Name Date/Time Subjects
Agenda-3-22-17.pdf SRES 3/22/2017 3:30:00 PM
1. Board of Game Fact Sheet.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
2. Board of Game - Resume - Tom Lamall.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
3. Board of Game - Resume - Karen Linnell.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
4. Board of Game - Assorted Support for Tom Lamall - 3 - 20 - 17.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
5. Board of Game - Continued Assorted Support for Tom Lamall - 3 - 22 - 17.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
6. Board of Game - Support for Tom Lamall - Resident Hunters of Alaska - 3 - 21 - 17.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
7. Board of Game - Support for Karen Linnell - Maniilaq Assoc - 3 - 22 - 17.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
8. Board of Game - Part III Assorted Support for Tom Lamall.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
1. SB 88 - Version J.pdf SRES 3/22/2017 3:30:00 PM
SB 88
2. SB 88 - Sponsor Statement - Version J.pdf SRES 3/22/2017 3:30:00 PM
SB 88
3. SB 88 - Sectional Analysis - Version J.pdf SRES 3/22/2017 3:30:00 PM
SB 88
4. SB 88 - Fact Sheet - Mental Health Trust Land Office.pdf SRES 3/22/2017 3:30:00 PM
SB 88
5. SB 88 - Maps - Trust Land Exch Act of 2017.pdf SRES 3/22/2017 3:30:00 PM
SB 88
6. SB 88 - Assorted Support.pdf SRES 3/22/2017 3:30:00 PM
SB 88
7. SB 88 - Support - Resource Development Council.pdf SRES 3/22/2017 3:30:00 PM
SB 88
8. SB 88 - Fiscal Note - DNR Mental Health Trust Lands - 3 - 17 - 17.pdf SRES 3/22/2017 3:30:00 PM
SB 88
9. SB 88 - Presentation - Alaska Mental Health Trust - 3 - 22 - 17.pdf SRES 3/22/2017 3:30:00 PM
SB 88
11. SB 88 - Opposition - Rebecca Knight.pdf SRES 3/22/2017 3:30:00 PM
SB 88
9. Board of Game - Support for Tom Lamall - Dick & Mary Bishop.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
10. Board of Game - Support for Karen Linnell - Doyon Ltd - 3 - 23 - 17.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
11. Board of Game - Support for Tom Lamall - Low.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
12. SB 88 - Comments - SEACC.pdf SRES 3/22/2017 3:30:00 PM
SB 88
12. Board of Game - Opposition to Karen Linnell - Richard Bishop.pdf SRES 3/22/2017 3:30:00 PM
Board of Game
13. SB 88 - Support - Alaska Forest Association.pdf SRES 3/22/2017 3:30:00 PM
SB 88