Legislature(1993 - 1994)

04/21/1994 09:01 AM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE COMMUNITY & REGIONAL AFFAIRS                              
                         April 21, 1994                                        
                           9:01 a.m.                                           
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
 Senator Randy Phillips, Chairman                                              
 Senator Robin Taylor, Vice Chairman                                           
 Senator Loren Leman                                                           
 Senator Al Adams                                                              
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
 Senator Fred Zharoff                                                          
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
 CS FOR HOUSE BILL NO. 543(STA)                                                
 "An Act relating to unvented gas space heaters in residential                 
 buildings."                                                                   
                                                                               
 HOUSE BILL NO. 259 (title am)                                                 
 "An Act relating to general grant land entitlements for the Lake              
 and Peninsula Borough; and providing for an effective date."                  
                                                                               
 SENATE BILL NO. 375                                                           
 "An Act relating to general grant land entitlements."                         
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
 HB 543 - See Community & Regional Affairs minutes                             
          dated 4/19/94.                                                       
                                                                               
 HB 259 - See Community & Regional Affairs minutes                             
          dated 4/19/94.                                                       
                                                                               
 SB 375 - See Community & Regional Affairs minutes dated 4/19/94.              
                                                                               
 WITNESS REGISTER                                                              
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
 Jack McGary, State Fire Marshall                                              
 Division of Fire Prevention                                                   
 Department of Public Safety                                                   
 5700 E. Tudor Road                                                            
 Anchorage, AK 99507-1225                                                      
  POSITION STATEMENT:   Testified in opposition to HB 543                      
                                                                               
 Steve O'Connor, Assistant Chief                                               
 Central Emergency Services                                                    
 231 S. Binkley St.                                                            
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Keith Kettler                                                                 
 Kettler, Enterprises                                                          
 Longmont, Colorado                                                            
 Phone No. (303) 772-2430                                                      
  POSITION STATEMENT:   Supports HB 543                                        
                                                                               
 Ron Smith, Chairman, Direct Heating Division                                  
 Gas Appliance Manufacturers Association                                       
 Kentucky                                                                      
 Phone No. (502) 745-7858                                                      
                                                                               
 Joe Mattingly, Director of Government Affairs                                 
 Gas Appliance Manufacturers Association                                       
 Arlington, VA                                                                 
 Phone No. (703) 525-9565                                                      
  POSITION STATEMENT:   Supports HB 543                                        
                                                                               
 Robert Maxwell, Executive Director                                            
 Interior Weatherization                                                       
 713 15th Ave.                                                                 
 Fairbanks, AK 99701                                                           
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Sue Walker, Chairperson                                                       
 Gas Appliance Manufacturers Association                                       
 Arlington, VA                                                                 
 Phone No. (502) 754-7858                                                      
  POSITION STATEMENT:   Supports HB 543                                        
                                                                               
 Burgain Maeler                                                                
 Tennessee                                                                     
 Phone No. (615) 479-2842                                                      
  POSITION STATEMENT:   Supports HB 543                                        
                                                                               
 Mike Dolph, Alaska Fire Chiefs Association                                    
 811 Will St.                                                                  
 Kodiak, AK 99615                                                              
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Bill Halterman                                                                
 Suburban Propane                                                              
 1200 Whitney Road                                                             
 Anchorage, AK 99501                                                           
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Lee Holmes                                                                    
 2522 Arctic Blvd., #200                                                       
 Anchorage, AK 99503                                                           
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Geoff Feiler                                                                  
 Heat Loss Analysis                                                            
 4128 Wright St.                                                               
 Anchorage, AK 99508                                                           
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Richard Barnes, President                                                     
 Enstar Natural Gas Company                                                    
 401 E. International Airport Road                                             
 Anchorage, AK                                                                 
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Jim Murphy, Executive Director                                                
 American Lung Association of Alaska                                           
 555 W. Northern Lights Blvd.                                                  
 Anchorage, AK                                                                 
  POSITION STATEMENT:   Opposes HB 543                                         
                                                                               
 Jeff Parker                                                                   
 Anchorage Fish & Game Advisory Board                                          
 1201 Hyder                                                                    
 Anchorage, AK 99507                                                           
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Mark Lacrosse                                                                 
 Lake & Peninsula Borough Planning Commission                                  
 Egegik, AK                                                                    
  POSITION STATEMENT:   Supports HB 259                                        
                                                                               
 Walt Reede, Manager                                                           
 Lake & Peninsula Borough                                                      
 King Salmon, AK                                                               
  POSITION STATEMENT:   Supports HB 259                                        
                                                                               
 Alice Ruby                                                                    
 Bristol Bay CSA Board                                                         
 Dillingham, AK                                                                
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Ginger Tornes                                                                 
 P.O. Box 2497                                                                 
 Homer, AK 99603                                                               
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Mark Bell                                                                     
 P.O. Box 486                                                                  
 Soldotna, AK 99669                                                            
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Chris Goll                                                                    
 4127 Raspberry Road                                                           
 Anchorage, AK 99502                                                           
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Ray Peterson                                                                  
 4720 Sportsman Drive                                                          
 Anchorage, AK 99502                                                           
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Angie Gerken                                                                  
 P.O. Box 228                                                                  
 Iliamna, AK 99606                                                             
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Fred Nishimura                                                                
 Box 1309                                                                      
 Dillingham, AK                                                                
  POSITION STATEMENT:   Opposes HB 259                                         
                                                                               
 Lamar Cotten                                                                  
 Lake & Peninsula Borough                                                      
 P.O. Box 495                                                                  
 King Salmon, AK 99613                                                         
  POSITION STATEMENT:   Offered information in support of HB 259               
                                                                               
 Tom Green, Chairman                                                           
 Lake & Peninsula Borough Planning Commission                                  
 P.O. Box 495                                                                  
 King Salmon, AK 99613                                                         
  POSITION STATEMENT:   Supports HB 259                                        
                                                                               
 Senator Al Adams                                                              
 State Capitol                                                                 
 Juneau, AK 99801-1182                                                         
  POSITION STATEMENT:   Offered information on SB 375                          
                                                                               
 Keith Quintavell                                                              
 North Slope Borough                                                           
 P.O. Box 69                                                                   
 Barrow, AK 99723                                                              
  POSITION STATEMENT:   Supports SB 375                                        
                                                                               
 TAPE 94-31, SIDE A                                                            
 Number 001                                                                    
 The Senate Community & Regional Affairs Committee was called to               
 order by Chairman Randy Phillips at 9:01 a.m.  He brought  CSHB 543           
 (STA)  (UNVENTED GAS HEATERS IN RESIDENTIAL BLDGS) before the                 
 committee as the first order of business, and opened the hearing to           
 testimony over the teleconference network.                                    
                                                                               
 Number 055                                                                    
 JACK MCGARY, State Fire Marshall, Division of Fire Prevention,                
 Department of Public Safety, Anchorage, said when the legislation             
 was originally introduced, the department did not take a position             
 on it, however, after a lot of research on the bill, he has changed           
 his position and he does not want to see the state code that                  
 affects major residential facilities changed.  There is a lot of              
 concern about the manufacturer's instructions requiring the                   
 combustion air of 15 square inches being made available so that               
 this heater will get its proper oxygen.  In the extreme cold areas,           
 he does not see this happening, so the fire and safety and,                   
 primarily, the health concerns for Alaska, where construction is              
 very tight to try to keep cold weather out, is of major concern to            
 him.                                                                          
                                                                               
 Number 095                                                                    
                                                                               
 STEVE O'CONNOR, Assistant Chief, Central Emergency Services,                  
 Soldotna, stated concern that the legislation presents a large                
 fire/life safety issue.  He questioned why the product is safe                
 enough for single family dwellings, but not safe enough for use in            
 four-plexes or better.  He added that he shares the fire marshall's           
 concerns about the types of construction and the lack of combustion           
 air space around the unvented heater.   He also is concerned about            
 the affect of carbon monoxide, particularly on young children and             
 senior citizens.  He urged the defeat the legislation.                        
                                                                               
 Number 130                                                                    
                                                                               
 KEITH KETTLER, Kettler Enterprises, Longmont, Colorado, said he has           
 heard the concerns, but he has not heard any data or any evidence             
 to support any of it.                                                         
                                                                               
 Number 140                                                                    
                                                                               
 RON SMITH, Design Engineer and Chairman of the Direct Heating                 
 Division of the Gas Appliance Manufacturers' Association (GAMA),              
 testifying from Virginia, said they meet the same requirements as             
 all vented room heaters and other types of appliances.   They also            
 adopt the requirement as other gas appliances as far as the                   
 adequate combustion for any gas appliance.  He pointed out that the           
 appliance has a Oxygen Depletion Sensing (ODS) System, and if low             
 levels of oxygen are present in the proximity of the ODS system,              
 the flame extinguishes. If the appliance is tampered with, it has             
 a tendency to shut off on a nuisance condition.  Also, the                    
 appliance, as far as its safety, would not be any different in its            
 use in multiple family dwellings and apartments as it would be for            
 a single family dwelling.                                                     
                                                                               
 Number 200                                                                    
                                                                               
 SENATOR TAYLOR asked if in the history of sales and use of this               
 device, has there ever been a fatality, and RON SMITH responded               
 that there has not.                                                           
                                                                               
 Number 250                                                                    
                                                                               
 JOSEPH MATTINGLY, Director of Government Affairs and General                  
 Counsel, GAMA Headquarters, testifying from Arlington, Virginia,              
 stated the safety for the vent-free room heaters has been                     
 excellent, and they do not know of any deaths caused by a ODS                 
 equipped vent-free room heater.  There experience has been that the           
 safety record of the vent-free product is superior to that of the             
 vented product.                                                               
                                                                               
 Number 267                                                                    
                                                                               
 ROBERT MAXWELL, Executive Director, Interior Weatherization,                  
 Fairbanks, said he has done air tightness testing on over 3,000               
 dwellings all across the State of Alaska, and the air tightness of            
 dwellings in Alaska, even low income dwellings and poorly                     
 constructed dwellings, is much higher than dwellings in the Lower             
 48.  He pointed out that carbon monoxide is the number one cause of           
 poisoning in the United States, and Alaska has the highest per                
 capita death rate in the nation.  Many of the poisoning deaths in             
 Alaska can be traced to the use of gas appliances to heat the home            
 during cold weather.  He urged the defeat of HB 543.                          
                                                                               
 Number 333                                                                    
                                                                               
 SUE WALKER, Chairperson, Gas Appliance Manufacturers Association,             
 testifying from Arlington, Virginia, said that since 1980 there               
 have been approximately 2.8 million vent-free gas heaters sold and            
 installed in homes in the United States and there are no documented           
 deaths due to CO poisoning associated with the use of an ODS system           
 appliance.  She added that it is very much a fail safe device and,            
 at this time, 43 of 50 states permit the installation of vent-free            
 heaters.   The real key in the use of vent-free heaters is proper             
 installation and adhering to combustion air requirements, and the             
 National Fuel Gas Code is very specific on how much combustion air            
 is required for all gas appliances.                                           
                                                                               
 Number 395                                                                    
                                                                               
 SENATOR LEMAN asked how many states have adopted the Uniform                  
 Mechanical Code.  SUE WALKER answered that only a few states have             
 adopted a Uniform Mechanical Code, primarily states west of the               
 Rockies.  It is her understanding that most states adopt a primary            
 code and then make all sorts of exceptions and adaptations that               
 take into a lot of special considerations of their environment,               
 building practices, etc.                                                      
                                                                               
 Number 434                                                                    
                                                                               
 KEITH KETTLER agreed that there are several states where various              
 municipalities and counties in the state have made an exception to            
 the code on an individual basis to allow ODS equipped vent-free               
 appliances.  In Alaska, the Municipality of Anchorage and the City            
 of Kenai have provided an exception to the Uniform Mechanical Code            
 to allow the installation of the product.  He expressed his                   
 surprise that the state with the highest per capita fatality rate             
 from carbon monoxide would not pass a bill to allow a product that            
 has a perfect safety record.                                                  
                                                                               
 Number 460                                                                    
                                                                               
 BURGAIN MAELER, representing a company in Tennessee that invented             
 and manufactures the Oxygen Depletion Sensing System, stated that             
 they have well over 12 million of them that have been produced and            
 no reports back to them of any deaths attributable to the ODS.  The           
 system is designed so that it is a fail safe system.  They have               
 seen no problems or issues where the safety of the system has been            
 circumvented.                                                                 
                                                                               
 Number 475                                                                    
                                                                               
 SENATOR TAYLOR asked if in light of the high number of fatalities             
 in Alaska and the testimony before the committee that those are               
 often caused by gas ranges being inappropriately used, would he               
 recommend that the Alaska Legislature mandate that ODS devices be             
 installed on every gas range in the state.  BURGAIN MAELER agreed             
 that it would be a good idea.                                                 
                                                                               
 Number 485                                                                    
                                                                               
 MIKE DOLPH, Alaska Fire Chiefs Association, Anchorage, said the               
 association believes there is a substantial threat to carbon                  
 monoxide poisoning with the use of these appliances, because they             
 will not be properly installed and will not be properly used in               
 accordance with the recommendation of the manufactures.  He said              
 the Alaska Fire Chiefs Association would like to go on record with            
 unanimous strong opposition to the passage of HB 543.                         
                                                                               
 Number 546                                                                    
                                                                               
 SENATOR TAYLOR asked if the Alaska Fire Chiefs Association supports           
 the installation of ODS devices on gas appliances in Alaska.  MIKE            
 DOLPH replied that he does not think the association has taken a              
 particular stand on the issue.                                                
                                                                               
 Number 549                                                                    
                                                                               
 BILL HALTERMAN, Suburban Propane, Anchorage, stated his main                  
 concern is that the units will be installed ignoring the                      
 manufacturer's requirements for free air.  He believes that they              
 will be used in small bush cabins where they will be competing for            
 available oxygen.  Also, he believes the ODS can be defeated and              
 they will become a hazard.                                                    
                                                                               
 Mr. Halterman informed the committee that the Municipality of                 
 Anchorage has approved only one type of gas appliance with an ODS             
 and that is for a decorative fireplace.                                       
                                                                               
 Number 586                                                                    
                                                                               
 LEE HOLMES, a registered mechanical engineer testifying from                  
 Anchorage, said witnesses from GAMA have stated that the key is a             
 proper installation and combustion air requirement.  He has visited           
 over 2,000 homes throughout rural Alaska, and he said he can                  
 guarantee that there is not a proper combustion air requirement in            
 one percent of those houses.                                                  
                                                                               
 TAPE 92-31, SIDE B                                                            
 Number 012                                                                    
                                                                               
 Mr. Holmes said there is a proper procedure for amending the codes,           
 and the manufacturers association would be better of spending their           
 time addressing the Uniform Mechanical Code and should have been              
 talking to the state fire marshall a year ago before the state                
 amendments to the Uniform Mechanical Code were adopted.                       
                                                                               
 Number 048                                                                    
                                                                               
 GEOFF FEILER, representing Heat Loss Analysis in Anchorage, a                 
 business that conducts energy audits in the State of Alaska,                  
 responded to inquiries made by Senator Taylor as to the extent of             
 use of gas refrigerators, gas stoves and gas dryers in residences.            
 He said in all of the homes their company has inspected, he has               
 never seen a gas refrigerator.  Most gas stoves require that there            
 be a range hood over them that vents to outside, and the same holds           
 true for gas dryers.  He voiced his opposition to the use of                  
 unvented gas appliances in homes.                                             
                                                                               
 He disagreed with a previous speaker's comments that there are very           
 few of these unvented heaters installed on an unprofessional basis            
 compared to vented heaters. He said the vented heaters take more              
 expertise for installation.                                                   
                                                                               
 Mr. Feiler related that their company regularly tests homes that              
 have only about 100 CFM natural air leakage, and this is fairly               
 common, especially in new construction.  With a 10,000 Btu unvented           
 space heater, there would have to be 500 CFM according  to the                
 requirement of 50 CFM per thousand Btu, so most of the homes they             
 test would not have the natural air leakage required to do this.              
                                                                               
 Number 155                                                                    
                                                                               
 RON SMITH commented that if the proper ventilation or combustion              
 air is not provided, the ODS is the safety device on the appliance            
 to counter that particular condition and will shut the unit off.              
                                                                               
 Number 190                                                                    
                                                                               
 KEITH KETTLER, responding to the concern of outside combustion air            
 being blocked off, said the simple fact is that with a vented                 
 product, if there is not adequate combustion air because somebody             
 has it blocked off, it causes a negative pressure in a house which            
 causes spillage which means the chimneys don't work and that is how           
 people end up with carbon monoxide poisoning.  With a vent-free               
 appliance, if that were to happen to the unlikely degree that                 
 oxygen were to be depleted at 18 percent, the ODS would simply shut           
 off the gas appliance and there would not be a fatality.                      
                                                                               
 Mr. Kettler also pointed out that a specific in the ANSI standard             
 is that there cannot be any adjustment to the ODS system in an                
 appliance.  He further pointed out that the combustion air                    
 requirements on gas-fuel appliances are in Chapter 6 of the Uniform           
 Mechanical Code, and it is very clear it requires 50 cubic feet of            
 free air space per thousand Btu per hour.                                     
                                                                               
 SUE WALKER added that GAMA has sent to the committee an extensive             
 table of how combustion air can be calculated, and she clarified              
 that with regard to vent-free heaters, they are not necessarily               
 talking about creating any sort of opening that brings in fresh               
 air.  If there is adequate volume of space in the room or the rooms           
 to be heated, then no outside air source needs to be created.                 
                                                                               
 Number 315                                                                    
                                                                               
 LEE HOLMES clarified that he is on the Municipality of Anchorage's            
 Uniform Mechanical Code Amendment Committee, and that committee did           
 allow decorative fireplaces with the ODS to be installed in the               
 municipality.  The unvented heaters being discussed are not allowed           
 in the Municipality of Anchorage.                                             
                                                                               
 Number 385                                                                    
                                                                               
 RICHARD BARNES, President of Enstar Natural Gas Company, testifying           
 in Juneau, stated that if HB 543 passes, Enstar, along with the               
 propane distributors, would probably pick up some additional                  
 revenues that they otherwise wouldn't get, and they welcome new               
 business, but safety to them is an overriding concern.  They spend            
 a lot of money each year trying to prevent carbon monoxide deaths.            
                                                                               
                                                                               
 Mr. Barnes outlined the following objections to vent-free                     
 appliances:                                                                   
                                                                               
  (1)  Relying on inside ventilation is not realistic.                         
                                                                               
  (2)  The safety device that shuts the heater off when oxygen                 
 is depleted does not shut it off if carbon monoxide is produced.              
                                                                               
  (3)  The heater, if it passes the ANSI standard, would be                    
 nearly six times the amount that OSHA says there should be for                
 maximum allowable concentration.                                              
                                                                               
 Mr. Barnes also demonstrated to the committee how a oxygen                    
 depletion sensor device could easily be impaired with a simple                
 paper clip.                                                                   
                                                                               
 Number 586                                                                    
                                                                               
 JIM MURPHY, Executive Director, American Lung Association of                  
 Alaska, stated that with Alaska having the highest per capita death           
 from CO, they are very concerned about the fact that there will be            
 more CO indoors.  The serious problem they have is that people                
 don't follow directions, they don't pay attention - when it's cold            
 they try to get warm.  Also, the ODS is not a CO detector and does            
 not respond specifically to carbon monoxide.   Further, directions            
 on the devices that he has researched so far talk about the need              
 for a yearly cleaning by a certified person, and the reality in               
 Alaska is that it is not going to happen.  Concluding his comments,           
 he said he thinks these appliances do have a place, but they don't            
 belong in Alaska.                                                             
                                                                               
 Number 675                                                                    
                                                                               
 JOSEPH EASAW, staff to Representative Al Vezey, stated deaths                 
 related to vented gas heaters and appliances can be documented with           
 statistics and facts, and it cannot be documented against the                 
 devices being addressed in HB 543.                                            
                                                                               
 TAPE 94-32, SIDE A                                                            
 Number 001                                                                    
                                                                               
 Mr. Easaw continued to respond to various issues brought up by                
 witnesses testifying in opposition to HB 543.                                 
                                                                               
 Number 086                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the public hearing and stated CSHB
 543(STA) would be held in committee.                                          
 Number 090                                                                    
 SENATOR RANDY PHILLIPS brought  HB 259(title am)  (LAND GRANT FOR             
 LAKE & PENINSULA BOROUGH) before the committee as the next order of           
 business, stating that testimony would be taken over the                      
 Legislative Teleconference Network.                                           
                                                                               
 Number 100                                                                    
 JEFF PARKER, representing the Anchorage Fish & Game Advisory                  
 Committee, Alaska Sport Fishing Association and Trout Unlimited,              
 said the question of what lands should be retained for the public             
 is the first issue that should be decided.  He directed attention             
 to a petition containing over 430 signatures, an economic study by            
 the Hotel-Motel Association, the Alaska Professional Sport Fishing            
 Association and the Alaska Sport Fishing Association and various              
 other pieces of data which he had forwarded to the committee.   He            
 said the borough has no data to support its argument that it is               
 feasible, economic, or practicable to introduce expansion of large            
 industry in this region, and all this data indicates otherwise.  He           
 urged the legislation not be moved out of committee.                          
                                                                               
 Number 195                                                                    
                                                                               
 MARK LACROSSE, a member of the Lake & Peninsula Borough Assembly              
 and Planning Commission, said there is a perception that the land             
 selection has not involved an intensive public process, when, in              
 fact, borough land selection has been two years in the making and             
 public notices have been issued and posted in all of the                      
 communities.  In these land selections, it is their desire to                 
 ensure the economic viability of the borough as state dollars                 
 continue to shrink.  He noted that they have added the Bristol Bay            
 Coastal Management Plan in the makeup of their own coastal                    
 management plan.                                                              
                                                                               
 Number 226                                                                    
                                                                               
 WALT REEDE, Manager of the Lake & Peninsula Borough, echoed the               
 previous speaker's comments.  He said he knows there has been a               
 fair amount of opposition to HB 253, but they are working with Fish           
 & Game, DNR and some of the villages in trying to work out some of            
 the problems that people perceive with the bill.  He offered his              
 assurance that the people in the borough are very sensitive to                
 habitat values in the region and have no intention of doing                   
 anything that would jeopardize those resources.                               
                                                                               
 Number 252                                                                    
                                                                               
 ALICE RUBY, testifying on behalf of the Bristol Bay CSA Board,                
 reiterated her previous testimony on HB 253 that people in the                
 region had virtually no opportunity to find out about the bill and            
 its implications.  The legislation will have a major affect on                
 their area, and they believe the Legislature needs to consider the            
 bigger picture of what this legislation means, particularly its               
 effect on the commercial fisheries, subsistence and recreational              
 activities.  Concluding her comments, she urged the committee delay           
 its action until next session.                                                
                                                                               
 Number 303                                                                    
                                                                               
 GINGER TORNES, a commercial fisherman in the Bristol Bay area,                
 stated the grant of 187,000 acres is more than 16 times the amount            
 of land the borough is entitled to under current state law, and she           
 expressed her concern that it would set a dangerous precedent.  She           
 is concerned that much of land that has been identified is                    
 important wildlife and recreation land.  She does not believe that            
 the Lake & Peninsula Borough needs to increase their tax base.  She           
 urged defeat of HB 259.                                                       
                                                                               
 Number 335                                                                    
                                                                               
 MARK BELL, a resident of Soldotna, voiced his opposition to HB 259            
 and urged more input by the agencies involved and by the public.              
 He said the area does not need more lodges and public access which            
 would put additional pressure on their resources.                             
                                                                               
 Number 360                                                                    
                                                                               
 CHRIS GOLL, a twenty-eight year Alaska resident residing at Rainbow           
 River Lodge located near Iliamna and a former two-term member of              
 the Alaska Board of Fisheries, voiced his opposition to HB 259.               
 The fisheries resources, as well as the wildlife resources that               
 exist in the area are already totally utilized by the Alaska                  
 peninsula users, the subsistence users and the commercial                     
 businesses that exist there.  Speaking to the priority subsistence            
 issue, he said the federal government has indicated, through Judge            
 Holland, that they are going to be taking over management of                  
 subsistence out there and will be utilizing the resident stocks, as           
 well as the anadromous stocks, thereby further complicating the               
 problem.                                                                      
                                                                               
 Number 404                                                                    
                                                                               
 RAY PETERSON of Anchorage voiced his opposition to HB 259.  He                
 noted he has contacted many of the Alaskan operators of sport                 
 fishing operations that use these lands in question, and they are             
 unanimously opposed to the land grant.  He expressed his concern on           
 whether the borough can be trusted to maintain the free and open              
 access that the residents of the area now enjoy.  He asserted the             
 only people in favor of HB 259 are the ones who run the borough.              
                                                                               
 Number 425                                                                    
                                                                               
 ANGIE GERKEN of Homer stated her support for Mr. Goll's and Mr.               
 Peterson' comments.  She said she does not want to see the state              
 make a short-term decision that will be a detriment to all Alaskans           
 and will have little benefit for the villages in that area.  She              
 urged the legislation be held in committee.                                   
                                                                               
 Number 465                                                                    
                                                                               
 FRED NISHIMURA of Dillingham, informed the committee that he is the           
 manager of three village corporations in the Nushagak Bay drainage            
 that are also involved in a lawsuit with the Lake & Peninsula                 
 Borough and the Local Boundary Commission over the drawing of the             
 northwest boundary.  He said these villages are very concerned                
 about HB 259, because it disregards the concerns that people have             
 who live outside of the LPB boundary; concerns such as their                  
 lifestyles, their own lands, their use of the land and resources.             
 They believe the bill exemplifies natural resource management at              
 its worst and that it should not be passed.                                   
                                                                               
 Number 506                                                                    
                                                                               
 LAMAR COTTEN, representing the Lake & Peninsula Borough, said the             
 borough has held over 20 meetings on the land grant issue, and they           
 have documentation showing that public notice was given for those             
 meetings.  In addition, all residents received at least three                 
 newsletters concerning this issue, along with a series of other               
 reports that went to interested parties.  He also said the Lake &             
 Peninsula Borough has no interest in obtaining or proposing lands             
 in the disputed area until that issue has been resolved by the                
 court.  The borough has worked with DNR and Fish and Game and                 
 explained that they have no problem with access.  He pointed out              
 these are proposed selections, and they still need to go through a            
 series of public hearings and a public hearing process working with           
 DNR.                                                                          
                                                                               
 Number 533                                                                    
                                                                               
 TOM GREEN, Chairman of the Planning Commission for the Lake and               
 Peninsula Borough, agreed with Mr. Cotten's comments on the                   
 meetings held by the borough.  He said the bill only allows the               
 borough an entitlement and does not allow them any lands they have            
 specified.  They have backed away from obtaining land in the areas            
 of the Mulchatna, the Nushiak, and the northwest boundaries.                  
                                                                               
 Number 567                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the public hearing on HB 259, stating           
 that it would be back before the committee at its next meeting.               
 Number 570                                                                    
 SENATOR AL ADAMS expressed his appreciation to the chairman of the            
 Senate Judiciary Committee for introducing SB 375.                            
                                                                               
 The basic premise of SB 375 is that municipal ownership of up to 10           
 percent of the state lands within the municipal boundaries, when it           
 is available, would promote strong government as provided in                  
 Alaska's Constitution, would provide municipalities with the                  
 opportunity to stimulate their economic development, could                    
 potentially increase tax revenue through an expanded tax base and             
 an overall improved ability to provide quality public services.  By           
 retaining ownership to 90 percent of the state land within                    
 municipal boundaries, the state retains the ability to provide for            
 statewide public interests.                                                   
                                                                               
 The bill sections with most importance are Sections 8 and 10.                 
 Section 8 deletes the words "newly formed" from the policy                    
 statement regarding the 10 percent designation so that the policy             
 applies across the board to all municipalities.  Section 10 changes           
 the designation of VUU land so that it would include land that had            
 been classified as unobtainable for municipal selection.                      
                                                                               
 Senator Adams said he believes the legislation is particularly                
 timely considering the present proposals by the Governor and                  
 certain members of the Alaska Legislature to decrease municipal               
 assistance and revenue sharing.  Increasing the land base available           
 to municipalities would offset the negative effects of diminishing            
 the revenue stream flowing from the state to the local governments.           
                                                                               
 Senator Adams noted that the legislation is supported by the Alaska           
 Municipal League.                                                             
                                                                               
 TAPE 94-32, SIDE B                                                            
 Number 001                                                                    
                                                                               
 KEITH QUINTAVELL, representing the North Slope Borough, said their            
 is conflict in the statutes relating to land areas available to               
 municipalities to fulfill their land entitlements.  He added that             
 he doesn't know if the Legislature anticipated that when planning             
 to give municipalities 10 percent of the state land within their              
 boundaries some boroughs would get actually less than 1 percent of            
 the land within their boundaries.  Section 10 of SB 375 would allow           
 boroughs to get their 10 percent instead of a much smaller amount.            
                                                                               
 Mr. Quintavell said if the state can no longer give municipalities            
 funding, which is in short supply, perhaps they can give them land            
 so that they can use that land to make money and pay for their own            
 municipal public services.  The land will still be public land, and           
 the public will still be able to use most of it.                              
                                                                               
 Number 054                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the hearing on SB 375, stating it               
 would back before the committee at its next meeting.                          
 There being no further business to come before the committee, the             
 meeting was adjourned at 11:32 a.m.                                           
                                                                               

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