Legislature(1993 - 1994)
05/07/1994 09:45 AM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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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