Legislature(1993 - 1994)

05/07/1994 09:45 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
                     HOUSE FINANCE COMMITTEE                                   
                           May 7, 1994                                         
                            9:45 a.m.                                          
                                                                               
  TAPE HFC 94-163, Side 1, #000 - end.                                         
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair Larson called the House Finance Committee to order                  
  at 9:45 a.m.                                                                 
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Larson     Representative Martin                                    
  Vice-Chair Hanley   Representative Navarre                                   
  Representative Brown     Representative Parnell                              
  Representative Foster    Representative Therriault                           
  Representative Grussendorf                                                   
  Representative Hoffman                                                       
                                                                               
  Co-Chair MacLean was not present for the meeting.                            
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Neil Johannsen, Director, Division of Parks and Outdoor                      
  Recreation, Department of Natural Resources; Jerry                           
  Gallagher, Legislative Liaison, Department of Natural                        
  Resources; Tom Boutin, Division of Forestry, Department of                   
  Natural Resources; Angela Chung, Alaska Environmental Lobby;                 
  Mark Hickey, Lobbyist, Alaska Railroad Corporation.                          
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 339 "An Act relating to the management of state land and                  
  resources;         relating to certain remote parcel and                     
  homestead entry land         purchase contracts and patents;                 
  and providing for an effective         date."                                
                                                                               
          HCS CSSB 339 (FIN) was reported out of Committee                     
  with "no         recommendation" and with a fiscal impact                    
  note by the Department         of Natural Resources, dated                   
  2/28/94.                                                                     
                                                                               
  SENATE BILL NO. 339                                                          
                                                                               
  "An Act relating to the management of state land and                         
  resources; relating to certain remote parcel and homestead                   
  entry land purchase contracts and patents; and providing for                 
  an effective date."                                                          
                                                                               
  NEIL JOHANNSEN, DIRECTOR, DIVISION OF PARKS AND OUTDOOR                      
  RECREATION explained that CSSB 339 amends the Alaska Land                    
  Act, Title 38, to increase the delivery of services through                  
                                                                               
                                                                               
  a less cumbersome set of procedures. It speeds and improves                  
  various sections for land actions, mining, forestry and                      
  state parks. Mr. Johannsen observed                                          
  that since 1959, Title 38 has grown long and complicated. He                 
  maintained that the legislation clarifies Title 38, to offer                 
  greater efficiency without sacrificing public involvement.                   
  Further work to improve Title 38 is now underway.                            
                                                                               
  Mr. Johannsen gave a brief sectional analysis of Senate Bill                 
  339 as follows:                                                              
                                                                               
  * Sections 1-8 creates a streamlined land disposal program.                  
                                                                               
  * Section 9-10 designs new land disposal programs more                       
  efficient for   DNR to manage and for the public to                          
  understand.                                                                  
                                                                               
  * Section 11 authorizes the commissioner of DNR to do                        
  certain   reconveyences to trade Native allotments out of                    
  state conservation   units such as state parks.                              
                                                                               
  * Sections 12-14 allows for persons to purchase state lands                  
  without   being present at a lottery or auction, which was                   
  found to violate the   equal protection clause of our                        
  constitution.                                                                
                                                                               
  * Section 15 deals with a technical problem, offering a                      
  definition of   "adjacent" for purposes of disposals and                     
  appraisals.                                                                  
                                                                               
  * Section 16 requires state land leaseholders to return a                    
  property to a marketable condition, by removing personal                     
  property - often buildings  and "junk."                                      
                                                                               
  * Section 17-18 allows the commissioner of DNR to reach a                    
  finding that certain timber stands can loose substantial                     
  value because of insects,   fire and disease and to then                     
  quickly sell that timber, by passing     long, cumbersome                    
  bureaucratic processes.                                                      
                                                                               
  * Section 19 amends 38.05.180(c) to remove restrictions on                   
  DNR's ability to delay an oil and gas sale for more than                     
  90 days after the sale date. Appeals and court action                        
  can cause the 90 day limit to be exceeded.                                   
                                                                               
  * Section 20 amends 38.05 to eliminate overly broad                          
  provisions allowing land to be closed to mining, even                        
  closing land with existing valid mining claim rights.                        
                                                                               
  * Section 21 clarifies mining claim ownership by aliens or                   
  foreign corporations. Now, only foreign corporations or                      
  foreign citizens from countries offering "like                               
  privileges" can own claims in Alaska, yet determinations                     
  on which countries offer this has never been done by the                     
                                                                               
                                                                               
  U.S. Government or the State of Alaska.                                      
                                                                               
  * Section 22 simplifies adjustments to be made in the                        
  annual rental amounts due on mining claims and leases.                       
                                                                               
  This amendment to 38.05.211 more clearly identifies the                      
  consumer   price index on which changes are to be based.                     
                                                                               
  * Sections 23-24 simplifies mining leasing procedures and                    
  creates more modern terms for annual rents, leases and                       
  restrictions.                                                                
                                                                               
  * Section 25 creates more reasonable terms for miners to                     
  file lease    paperwork without sudden termination of their                  
  claim rights.                                                                
                                                                               
  * Sections 26-34 increases fees for homesites and homesteads                 
  before    patent, to defray DNR's administrative costs,                      
  clarifies homesite    entry and lottery procedures. These                    
  sections are "housekeeping"    amendments on "homesite"                      
  laws.                                                                        
                                                                               
  Representative Grussendorf addressed section 12. He                          
  questioned the change allowing land disposals to take place                  
  in urban areas away from the sale community.                                 
                                                                               
  JERRY GALLAGHER, LEGISLATIVE LIAISON, DEPARTMENT OF NATURAL                  
  RESOURCES explained that statutes requiring applicants to be                 
  present at the land sale was found to be unconstitutional.                   
  He noted that the legislation would give the Department the                  
  ability to not hold land sales in the community.                             
                                                                               
  Representative Grussendorf emphasized that the change to                     
  allow sales to take place outside of the effected community                  
  benefits the department not the public. Mr. Gallagher                        
  stressed the cost of holding sales in communities.                           
                                                                               
  ANGELA CHUNG, ALASKA ENVIRONMENTAL LOBBY testified in                        
  regards to SB 339. She stressed that the bill proposes                       
  changes in the state's management of lands, wa~ers, forests,                 
  mineral deposits, gas and oil. She noted that the Alaska                     
  Environmental Lobby is concerned that SB 339 will                            
  substantially reduce public involvement and adversely affect                 
  state forested lands.                                                        
                                                                               
  Ms. Chung recommended that sections 17 and 18 be deleted.                    
  She noted that section 17 would allow the Department of                      
  Natural Resources to offer salvage sales of timber on land                   
  that will be converted to non-forested uses or timber that                   
  the Department determines will lose economic value or                        
  perpetuate insects or disease if not salvaged within two                     
  years. Section 18 would expand the Department of Natural                     
  Resources' power to negotiate timber sales in areas where                    
  certain conditions exist or will exist within two years.                     
                                                                               
                                                                               
  These conditions include high levels of local unemployment                   
  or timber that will lose its economic value due to insects,                  
  disease or fire. She pointed out that salvage sales could be                 
  offered as negotiated sales that would be exempt from AS                     
  38.05.115.   AS 38.05.114 limits ~   s to no more than                       
  5000,000 board feet in one year.                                             
                                                                               
  Ms. Chung asserted that the legislation would give the                       
  commissioner of the Department of Natural Resources                          
  extraordinary latitude in determining and predicting future                  
  forest health.                                                               
                                                                               
  Ms. Chung emphasized that the department has the authority                   
  to execute emergency sales under AS 38.05.113. She                           
  maintained that salvage sales could be classified as                         
  emergency sales. She alleged that salvage sale provisions in                 
  sections 17 and 18 would create a loophole allowing large                    
  scale, long term, negotiated timber sales of up to 25 years                  
  to occur.                                                                    
                                                                               
  Ms. Chung argued that forest insect epidemics are often self                 
  regulating and can improve habitat for many types of                         
  wildlife. She maintained that few attempts at direct control                 
  of forest insects have been successful.                                      
                                                                               
  Representative Martin maintained that natural forest                         
  reforestation is not as active in Alaska as in other states.                 
                                                                               
  Co-Chair Larson provided members with AMENDMENT 1,                           
  8-GS2023\0.1 (copy on file).                                                 
                                                                               
  MARK HICKEY, ALASKA RAILROAD CORPORATION testified in                        
  support of amendment 1. He noted that section 1 would allow                  
  the commissioner to convey land to the Alaska Railroad                       
  Corporation for the purpose of a new right-of-way within                     
  Chugach State Park, along the Seward Highway. He explained                   
  that the Department of Transportation and Public Facilities                  
  is in the process of reconstructing and realigning the                       
  Seward Highway. The highway will relocate the railroad. The                  
  Department of Transportation and Public Facilities would                     
  also be granted a 300 foot easement for the relocated Seward                 
  Highway. The Chugach Electric Association, Inc. would be                     
  granted a 100 foot utility easement within the Chugach State                 
  Park.                                                                        
                                                                               
  In response to a question by Representative Brown, Mr.                       
  Gallagher explained that agreement has been reached between                  
  park officials and the other parties outlined in the                         
  amendment.                                                                   
                                                                               
  Representative Hanley MOVED to ADOPT AMENDMENT 1. There                      
  being No OBJECTION, it was so ordered.                                       
                                                                               
  Representative Brown provided members with AMENDMENT 2 (copy                 
                                                                               
                                                                               
  on file). She explained that the amendment would delete                      
  section 17. the amendment would also delete "or will exist                   
  within two years" on page 9, lines 27 - 28.                                  
                                                                               
  TOM BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF                    
  NATURAL RESOURCES noted that section 17 would exempt the                     
  state from provisions requiring compliance with a two year                   
  plan. He maintained that other provisions for land                           
  management would be required. He noted that the Department                   
  of Law advised that an emergency sale, timber sale would                     
  need to be completed within one year. He observed that                       
  logging of spruce bark beetle infected trees would be                        
  difficult to complete in one year due to the need to log                     
  during                                                                       
  months when the ground is frozen.                                            
                                                                               
  In response to a question by Representative Brown, Mr.                       
  Boutin maintained that some sales would best able to be                      
  larger than 500,000 board feet.                                              
                                                                               
  Representative Brown MOVED to ADOPT AMENDMENT 2. A roll call                 
  vote was taken on the MOTION.                                                
                                                                               
  IN FAVOR: Brown, Hoffman                                                     
  OPPOSED: Navarre, Grussendorf, Foster, Hanley, Martin,                       
  Parnell, Therriault, Larson                                                  
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (2-8).                                                     
                                                                               
  Representative Brown provided members with AMENDMENT 3 (copy                 
  on file). She explained that amendment 3 would require a                     
  written finding by the commissioner of Department of Natural                 
  Resources, and insert "and that the loss of substantial                      
  economic value cannot be practicably mitigated by other                      
  means", and delete the exemption of a salvage sale from AS                   
  38.05.115.                                                                   
                                                                               
  Mr. Boutin stressed that section 17 would not exempt the                     
  state from maintaining a "sustained yield". He argued that                   
  public process would be protected under the provisions of AS                 
  38.05.112.   He discussed forest land use plans.                             
                                                                               
  Representative Grussendorf spoke in support of a "written                    
  finding". He MOVED to DIVIDE THE QUESTION. There being NO                    
  OBJECTION, it was so ordered. Amendment 3A would delete                      
  "determination" and insert "written finding" on page 9, line                 
  17.                                                                          
                                                                               
  Mr. Boutin spoke in support of amendment 3A. There being NO                  
  OBJECTION, AMENDMENT 3A was adopted.                                         
                                                                               
  Mr. Boutin acknowledged that controlled burns would be                       
                                                                               
                                                                               
  preferable under some circumstances.                                         
                                                                               
  Representative Therriault MOVED to DIVIDE THE QUESTION.                      
  There being NO OBJECTION, it was so ordered. Amendment 3B(1)                 
  would insert "and that the loss of substantial economic                      
  value cannot be practicably mitigated by other means".                       
  Amendment 3B(2) would delete the exemption of a salvage sale                 
  from AS 38.05.115.                                                           
                                                                               
  Representative Hanley OBJECTED to AMENDMENT 3B(1).                           
  Representative Grussendorf spoke in support of amendment                     
  3B(1). A roll call vote was taken on the MOTION.                             
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED:                      
  Foster, Hanley, Martin, Parnell, Therriault, Larson                          
                                                                               
  Co-Chair MacLean was not present for the vote.                               
  The MOTION FAILED (4-6).                                                     
                                                                               
  A roll call vote was taken on the MOTION to adopt AMENDMENT                  
  3B(2).                                                                       
                                                                               
  IN FAVOR: Brown, Hoffman, Navarre                                            
  OPPOSED: Grussendorf, Foster, Hanley, Martin, Parnell,                       
  Therriault, Larson                                                           
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative Grussendorf MOVED to delete section 12. A                     
  roll call vote was taken on the MOTION.                                      
                                                                               
  Mr. Gallagher suggested that the deletion of section 12                      
  would result in fewer land disposals.                                        
                                                                               
  IN FAVOR: Brown, Grussendorf, Hoffman                                        
  OPPOSED: Navarre, Foster, Hanley, Martin, Parnell,                           
  Therriault, Larson                                                           
                                                                               
  Co-Chair MacLean was not present for the vote.                               
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Representative Hanley MOVED to report HCS CSSB 339 (FIN) out                 
  of Committee with individual recommendations and with the                    
  accompanying fiscal notes. There being NO OBJECTION, it was                  
  so ordered.                                                                  
                                                                               
  HCS CSSB 339 (FIN) was reported out of Committee with "no                    
  recommendation" and with a fiscal impact note by the                         
  Department of Natural Resources, dated 2/28/94.                              
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 10:20 p.m.                                          

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