Legislature(2001 - 2002)

02/27/2002 01:33 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                    
          SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                                                                       
                        February 27, 2002                                                                                       
                            1:33 p.m.                                                                                           
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator John Torgerson, Chair                                                                                                   
Senator Randy Phillips                                                                                                          
Senator Georgianna Lincoln                                                                                                      
Senator Pete Kelly                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Alan Austerman                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 323                                                                                                             
"An Act relating to the mandatory incorporation of certain                                                                      
boroughs in the unorganized borough; and providing for an                                                                       
effective date."                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 264                                                                                                             
"An Act relating to a reimbursement program for municipal bonds,                                                                
notes, or other indebtedness incurred for school construction;                                                                  
and providing for an effective date."                                                                                           
     MOVED SB 264 OUT OF COMMITTEE                                                                                              
                                                                                                                                
SENATE BILL NO. 278                                                                                                             
"An Act requiring a good faith effort to purchase property before                                                               
that property is taken through eminent domain; and providing for                                                                
an effective date."                                                                                                             
     MOVED SB 278 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
SB 323 - No previous action to record.                                                                                          
                                                                                                                                
SB 264 - No previous action to record.                                                                                          
                                                                                                                                
SB 278 - No previous action to record.                                                                                          
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
Senator Gary Wilken                                                                                                             
Alaska State Capitol, Room 514                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT:  Sponsor of SB 323                                                                                        
                                                                                                                                
Jerry Burnett                                                                                                                   
Staff to Senator Lyda Green                                                                                                     
Alaska State Capitol                                                                                                            
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Introduced SB 264                                                                                         
                                                                                                                                
Eddy Jeans                                                                                                                      
Finance Manager                                                                                                                 
Department of Education &                                                                                                       
 Early Development                                                                                                              
801 W 10 St.                                                                                                                    
Juneau, AK  99801-1894                                                                                                          
POSITION STATEMENT: Testified on SB 264                                                                                       
                                                                                                                                
Kim Ognisty                                                                                                                     
Staff to Senator Torgerson                                                                                                      
Alaska State Capitol, Room 427                                                                                                  
Juneau, AK  99801-1182                                                                                                          
POSITION STATEMENT: Introduced SB 278                                                                                         
                                                                                                                                
Phil Evans                                                                                                                      
P.O. Box 85103                                                                                                                  
Fairbanks, AK 99708                                                                                                             
POSITION STATEMENT: Testified on SB 278                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-4, SIDE A                                                                                                             
                                                                                                                                
CHAIRMAN JOHN TORGERSON called the Senate Community & Regional                                                                
Affairs Committee meeting to order at 1:33 p.m. Present were                                                                    
Senators Lincoln, Phillips, Kelly and Chairman Torgerson.                                                                       
                                                                                                                                
           SB 323-MANDATORY INCORPORATION OF BOROUGHS                                                                       
                                                                                                                              
                                                                                                                                
SENATOR GARY WILKEN sponsor of SB 323 read the following sponsor                                                                
statement into the record:                                                                                                      
                                                                                                                                
     The Mandatory Borough Act of  2002 recognizes that there                                                                   
     are six  regions in Alaska that  meet most, if  not all,                                                                   
     the  standards for  borough incorporation,  and sets  in                                                                   
     motion  a  procedure  to  create  six  new  boroughs  by                                                                   
     January   1,  2005.  The   identified  areas  have   the                                                                   
     financial  capability and stable  populations needed  to                                                                   
     provide  a  local government  with  the power  to  plan,                                                                   
     support local schools, and levy and collect taxes.                                                                         
                                                                                                                                
     Senate Bill  323 allows the residents in  the identified                                                                   
     six   locations   to  initiate   borough   incorporation                                                                   
     proposals,  hold  extensive  public hearings,  and  work                                                                   
     closely with the Local Boundary  Commission to determine                                                                   
     the desired borough structure  until the January 1, 2005                                                                   
     deadline.  However,  if a  borough is  not  incorporated                                                                   
     within each of the six regions  by the stated timeframe,                                                                   
     the  following areas  will  be incorporated  as  second-                                                                   
     class boroughs:                                                                                                            
                                                                                                                                
                    Copper River Basin Region                                                                                   
                    Glacier Bay Region                                                                                          
                    Prince of Wales Island Region                                                                               
                    Prince William Sound Region                                                                                 
                    Upper Tanana Basin Region                                                                                   
                   Wrangell/Petersburg Region                                                                                   
                                                                                                                                
     Through  the  formation  of these  six  boroughs,  local                                                                   
     residents,  many for  the first  time, will  be able  to                                                                   
     financially  support  their   neighborhood  schools.  In                                                                   
     addition, several school districts  will be consolidated                                                                   
     to  enhance   efficiencies   and  economies  of   scale.                                                                   
     Alaska's K-12 public education  system will benefit from                                                                   
     the  additional   financial   help  and  thus   Alaska's                                                                   
     students will benefit.                                                                                                     
                                                                                                                                
     The  best government  is the government  closest to  the                                                                   
     people. Senate  Bill 323 continues  what the  framers of                                                                   
     the  Alaska  State  Constitution  commenced  over  forty                                                                   
     years  ago,  and  by  forming  these  six  boroughs,  it                                                                   
     provides  a way for  local area  residents to help  with                                                                   
     their children's education.                                                                                                
                                                                                                                                
     I respectfully  request your  consideration and  support                                                                   
     for this legislation.                                                                                                      
                                                                                                                                
SENATOR WILKEN  called member's  attention to  the chart  in their                                                              
packets titled, "Standards for Borough  Incorporation." [A copy of                                                              
the chart is available in the committee  file.] The chart lists 11                                                              
standards that  need to  be met for  borough incorporation  and he                                                              
believes  the  six  areas  have   already  fulfilled  9  of  those                                                              
standards.  The process  that starts  with  the committee  meeting                                                              
will  answer the  questions  regarding  the final  two  standards,                                                              
which are "Financial/Human Resources" and "Similar Geography."                                                                  
                                                                                                                                
                                                                                                                                
Next he  noted the  "Model Borough  Boundaries" pamphlet  found in                                                              
committee packets.  Maps of  the six areas  referred to  above are                                                              
shown  with   current  Rural  Education  Attendance   Area  (REAA)                                                              
Boundaries and  the model or proposed  boundaries. [A copy  of the                                                              
pamphlet can be found in the bill file.]                                                                                        
                                                                                                                                
For a year  he has been asking  the unorganized area  whether they                                                              
can help with K-12 education thereby  relieving some of the burden                                                              
placed on organized Alaska. Three  areas of the state have stepped                                                              
forward to do just  that, but many areas of the  state have chosen                                                              
to ignore his request. This legislation  asks those areas why they                                                              
can't help. Given the amount of data  available, he believes there                                                              
is no  reason not to  start the process  to analyze  whether these                                                              
six areas have the capability and capacity for government.                                                                      
                                                                                                                                
He asked  members to  examine the State  of Alaska Local  Boundary                                                              
Commission January 2001 booklet titled,  "The Need to Reform State                                                              
Laws  Concerning Borough  Incorporation and  Annexation." [A  copy                                                              
can be found  in the bill  file.] In particular, he  asked members                                                              
to read  pages 7-20  then refer  to page  10 and  match the  seven                                                              
bulleted  paragraphs to  the  appendix. It  says  that since  1963                                                              
Alaska  has grown  in  population and  wealth  and it  is time  to                                                              
revisit the idea  of incorporations of local government  and bring                                                              
back  the concept  that the  best government  is the  one that  is                                                              
closest to the people.                                                                                                          
                                                                                                                                
According  to  their  annual  publication,  the  Alaska  Municipal                                                              
League  supports this  concept and  each year  the Local  Boundary                                                              
Commission  issues  a  report that  talks  about  organization  of                                                              
unincorporated  areas and  how the  Legislature might  be able  to                                                              
eliminate  some of the  disincentives of  incorporation and  bring                                                              
government close to the people.                                                                                                 
                                                                                                                                
                                                                                                                                
He closed by  saying this is the  start of a very  important piece                                                              
of legislation and  his office is ready to work on  it and discuss                                                              
it with all people that are affected.                                                                                           
                                                                                                                                
SENATOR PHILLIPS  said there is  another way of  accomplishing the                                                              
same thing. Instead  of passing bills, the Legislature  can sit in                                                              
joint session and  act as the Assembly for the  unorganized areas.                                                              
Because this bill  has several more committees of  referral and it                                                              
might not pass, he asked whether  they shouldn't pursue this other                                                              
avenue.                                                                                                                         
                                                                                                                                
SENATOR WILKEN thought that was a  good question, but his approach                                                              
has  been  to  have  the  patience   to  do  the  work  correctly.                                                              
Obviously, there are areas of the  state that have the capacity to                                                              
fund education  and have a  minimal second-class borough  level of                                                              
government whereby they are able  to choose the degree to which it                                                              
affects the  population. This hasn't  worked very well so  this is                                                              
another step.  His problem  with the  full Legislature  sitting as                                                              
the  Assembly  is  that  it  doesn't  recognize  the  capacity  of                                                              
different areas of the state and  is therefore an unfair approach.                                                              
He  isn't   after  those  areas   that  aren't  able   to  support                                                              
government,  rather  he wants  those  areas  that are  capable  of                                                              
helping  themselves  to step  forward  and help  themselves.  It's                                                              
better to take  a reasoned analysis, through the  parts of the law                                                              
that  says, "Can  you help  yourselves?"  That is  what this  bill                                                              
suggests.                                                                                                                       
                                                                                                                                
SENATOR LINCOLN  informed Senator  Wilken that the  individuals in                                                              
her  district  don't  necessarily   feel  that  having  a  borough                                                              
actually creates  a government  that is closer  to them  and would                                                              
therefore change  how they  do business in  their area.  She keeps                                                              
hearing people ask,  "How are we going to pay for  that?" When she                                                              
looks at  some of the  six target areas  she doesn't see  how they                                                              
can afford  government. There  is an  ongoing discussion,  and she                                                              
has confidence that the people will  create new boroughs when they                                                              
feel they  have the economy  to support  one. She doesn't  want to                                                              
say, "You shall…" because that isn't  necessarily the best form of                                                              
government either.                                                                                                              
With talk  of budgetary  cuts and  considering the current  fiscal                                                              
gap, she asked how the cost of the bill could be justified.                                                                     
                                                                                                                                
SENATOR WILKEN replied the concept  of saying, "You shall…" is not                                                              
quite correct.  There are  11 standards in  law that an  area must                                                              
qualify under in order to become  a borough. Few people would ever                                                              
vote  to   become  a   borough  but   he  believes  that   borough                                                              
incorporation has increased  the quality of life in  the state. He                                                              
knows Interior Alaska is better off  with the Fairbanks North Star                                                              
Borough  than without  because "Overall,  84% of  the people  have                                                              
benefited by borough incorporation."                                                                                            
                                                                                                                                
The push  for incorporation  began with  education reform.  In his                                                              
area, they ask the  people for a 4-mil tax equivalent  so they can                                                              
get education  dollars  from the  state. This  year the people  in                                                              
organized Alaska  are paying $154  million to have the  benefit of                                                              
incoming  state money  for  their education.  Because  unorganized                                                              
Alaska  is  paying  nothing,  he  can safely  say  the  people  he                                                              
represents are  subsidizing education in the unorganized  areas of                                                              
Alaska. This  is acceptable for those  areas that are not  able to                                                              
pay, but  it is not  acceptable for those  areas that can  pay but                                                              
won't.                                                                                                                          
                                                                                                                                
The fiscal note  is not important when you consider  that this has                                                              
more than a one  or two year focus. It is a  generation issue that                                                              
will, over  time, improve certain  unorganized areas in  the state                                                              
just as it has in the North Star Borough.                                                                                       
                                                                                                                                
SENATOR LINCOLN  had difficulty  with the  criteria used  and took                                                              
issue with  the term "mandatory" that  was used in the  title. She                                                              
said  there  was  a  resources  meeting   the  previous  day  that                                                              
discussed mining  and approximately  90 percent of  the presenters                                                              
presented the development  of resources in Bush Alaska.  That is a                                                              
form  of  payment  for  services  to  education  and  other  state                                                              
programs. The  statement that  they aren't  paying anything  is in                                                              
error.                                                                                                                          
                                                                                                                                
SENATOR WILKEN disagreed  that the resources in  a particular area                                                              
belong to the people that live in  that area. He believes that the                                                              
resources  in the  state are  the property  of all  the people  of                                                              
Alaska. That  the resources come  from a particular  area provides                                                              
no claim  to that area  of the state  when you're talking  about a                                                              
local  contribution to  match people  that are  paying a  property                                                              
tax.                                                                                                                            
                                                                                                                                
Areas that are not incorporated by  2005 will then be incorporated                                                              
as second class  boroughs under this Act but they  must first come                                                              
before  the  Legislature  and  they must  also  satisfy  the  best                                                              
interest standard.  "It is top down,  but it brings people  to the                                                              
table to  talk about  what is  in their  best interest and  today,                                                              
that is very difficult to do."                                                                                                  
                                                                                                                                
CHAIRMAN TORGERSON  asked whether  he thought he  could accomplish                                                              
this by 2005.                                                                                                                   
                                                                                                                                
SENATOR WILKEN  said he  doesn't know.  He's comfortable  with the                                                              
fact that  it will take  time. It's important  to get  the process                                                              
started.                                                                                                                        
                                                                                                                                
CHAIRMAN  TORGERSON  said  his  point  goes  to  ensure  that  due                                                              
diligence is done before the deadline.                                                                                          
                                                                                                                                
There was no further testimony.                                                                                                 
                                                                                                                                
The bill was held in committee.                                                                                                 
                                                                                                                                
               SB 264-MUNICIPAL BOND REIMBURSEMENT                                                                          
                                                                                                                                
JERRY BURNETT,  Staff to Senator  Lyda Green, introduced  the bill                                                              
and read the following sponsor statement into the record:                                                                       
                                                                                                                                
     Senate  Bill  264  would  authorize   70  percent  state                                                                   
     reimbursement  for   $113  million  dollars   of  school                                                                   
     projects  that  are  funded  by  voter  authorized  debt                                                                   
     issued by  local government. The authorization  would be                                                                   
     distributed  among  school districts  in  the  following                                                                   
     manner;  $50  million  for projects  in  Anchorage,  $15                                                                   
     million  for  projects  in Fairbanks,  $13  million  for                                                                   
     projects in  Mat-Su, $10 million  for projects  in Kenai                                                                   
     and  $25   million  for   projects  in  smaller   school                                                                   
     districts in organized Alaska.  The amounts are intended                                                                   
     to equal $1,000  in projects per student  rounded to the                                                                   
     nearest million dollars in each district.                                                                                  
                                                                                                                                
     Debt reimbursement is one of  the methods that have been                                                                   
     used to fund school construction  in Alaska for a number                                                                   
     of  years. Debt  reimbursement  has a  unique  advantage                                                                   
     over  other  financing methods  in  that it  allows  for                                                                   
     maximum local  involvement and input in the  decision of                                                                   
     which  specific  projects should  be  funded.  Municipal                                                                   
     debt reimbursement  insures that the projects  funded in                                                                   
     a  school  district  are the  highest  priority  of  the                                                                   
     voters  in that district.  Projects  need to meet  state                                                                   
     standards for approval  but do not need to  be funded in                                                                   
     the state's priority order.                                                                                                
                                                                                                                                
     SB 264  is not  intended to serve  as a complete  school                                                                   
     funding package. School districts  in unorganized Alaska                                                                   
     cannot   use  debt   reimbursement.  Individual   school                                                                   
     projects are  often larger than the authorization  in SB
     264  for any  school  district. Other  funding  methods,                                                                   
     such as general  obligation debt, must be  used for most                                                                   
     school  construction and  major  maintenance in  Alaska.                                                                   
     Municipal  debt  reimbursement  is,  however,  the  best                                                                   
     method for  many school districts to build  and maintain                                                                   
     the  facilities most  important to  the people in  their                                                                   
     community.                                                                                                                 
                                                                                                                                
EDDY JEANS,  Finance Manager for  the Department of  Education and                                                              
Early Development, said he was available  to answer questions. For                                                              
the record,  he wanted to  state that  the Legislature has  done a                                                              
fine job  at funding  school construction the  last two  years and                                                              
they have  followed the department's  priority list.  He clarified                                                              
that this  bill would  only fund  school construction projects  in                                                              
municipal  school   districts  once   there  is  both   voter  and                                                              
department approval.                                                                                                            
                                                                                                                                
SENATOR LINCOLN  said she realizes  this is for  organized Alaska,                                                              
but wanted  to know how this  affects the Kasayulie Case  in which                                                              
the judge said  that schools in the unorganized  areas are treated                                                              
unfairly  in  terms of  bonding  for  school projects.  She  asked                                                              
specifically what this bill does to correct that discrepancy.                                                                   
                                                                                                                                
MR.  JEANS said  he isn't  a lawyer  and can't  make any  specific                                                              
comments, but  the judge  has been  looking at the  appropriations                                                              
the Legislature  has been  making in  the last  two years  and has                                                              
looked favorably  on the mechanisms. Additionally,  he was pleased                                                              
that  the  Legislature  has followed  the  department's  list.  He                                                              
expected the judge  to continue to watch through  this session and                                                              
that is  why the Governor  introduced his funding  proposal, which                                                              
follows the department's priority  list and includes municipal and                                                              
rural school districts.                                                                                                         
                                                                                                                                
SENATOR LINCOLN said she didn't hear  an answer to her question so                                                              
she restated it.                                                                                                                
                                                                                                                                
MR. JEANS  said this  piece of  legislation does  not provide  any                                                              
funding for rural education attendance  areas that do not have the                                                              
capacity to  bond. It provides  a funding mechanism  for municipal                                                              
school districts that have bonding capacity.                                                                                    
                                                                                                                                
SENATOR  LINCOLN asked  if the  department is  supportive of  this                                                              
legislation knowing about the judge's analysis.                                                                                 
                                                                                                                                
MR.  JEANS  said  he  has  not  had  that  conversation  with  the                                                              
governor's office. The Governor has  submitted his own legislation                                                              
that  funds the  department's  priority list  for  both urban  and                                                              
rural school districts.                                                                                                         
                                                                                                                                
CHAIRMAN  TORGERSON  stated  for  the  record,  "So  it  won't  go                                                              
unchallenged, I do  not agree with the judge's  case on Kasayulie.                                                              
We  proved,  by numbers,  that  he  was  using  the wrong  set  of                                                              
numbers. The  facts in  point are not  correct so, therefore,  his                                                              
ruling is not correct."                                                                                                         
                                                                                                                                
There was no further testimony.                                                                                                 
                                                                                                                                
CHAIRMAN TORGERSON  announced it was  his intent to move  the bill                                                              
since it was largely a finance issue.                                                                                           
                                                                                                                                
SENATOR  KELLY made  a  motion to  move  SB 264  and  accompanying                                                              
fiscal note from committee with individual recommendations.                                                                     
                                                                                                                                
There being no objection, SB 264 moved from committee.                                                                          
                                                                                                                                
                                                                                                                                
            SB 278-TAKING PROPERTY BY EMINENT DOMAIN                                                                        
                                                                                                                                
KIM OGNISTY, Staff to Senator Torgerson, read the following                                                                     
sponsor's statement into the record:                                                                                            
                                                                                                                                
     SB  278  is  concerned  with   the  eminent  domain  and                                                                   
     declaration  of taking  proceedings  in Alaska  statute.                                                                   
     The bill  introduces a "reasonable and  diligent effort"                                                                   
     clause that attempts to place  the condemner of land and                                                                   
     the   private  landholder   in   an  equal   negotiating                                                                   
     position.  The   bill  is  not  trying  to   remove  the                                                                   
     authority  of  the  state to  acquire  land  by  eminent                                                                   
     domain or  in any  way complicate existing  proceedings.                                                                   
     Currently,  Alaska law  does  not require  the state  to                                                                   
     engage in a good faith effort  to negotiate with private                                                                   
     landowners.  Without an  incentive  to negotiate,  state                                                                   
     officials are  free to make  only an unreasonable  offer                                                                   
     or  none  at all.  They  can  end discussions  at  their                                                                   
     caprice  and they are  under no  obligation to take  the                                                                   
     landowner  seriously. Initiating  communication from  an                                                                   
     equitable  bargaining position  will promote  productive                                                                   
     negotiations,   facilitate    dialog   over   reasonable                                                                   
     concerns  and  encourage suggestions  from  all  parties                                                                   
     involved. The  phrase, "reasonable and  diligent effort"                                                                   
     or  similar language  has been  adopted by  at least  23                                                                   
     other  states. This  clause  will reduce  the amount  of                                                                   
     litigation  by encouraging more  cases to be  settled up                                                                   
     front thereby promoting expediency in government.                                                                          
                                                                                                                                
PHIL EVANS testified via teleconference  as the representative and                                                              
president of the Northgate Square  Mall in Fairbanks. He wanted to                                                              
tell about his  experience with land taking and  then his reaction                                                              
to SB 278. He read the following into the record:                                                                               
                                                                                                                                
     The  State  of  Alaska,  Department   of  Transportation                                                                   
     recently  took a portion  of my  commercial property  to                                                                   
     use for  a road  construction project.  I would like  to                                                                   
     make you aware of the experience  I had with them. Prior                                                                   
     to  condemnation being  filed,  the person  representing                                                                   
     the state was courteous but  misleading in attempting to                                                                   
     convince   me  to   accept  the   settlement  that   was                                                                   
     completely unfair. Also prior  to the condemnation being                                                                   
     filed,  the  state  appraiser   provided  no  meaningful                                                                   
     information.   She  was   quite   insistent  about   her                                                                   
     authority to be  on my property and utilized  a space in                                                                   
     a  business  in  the  mall   for  her  office.  She  was                                                                   
     deceptively courteous  and misleading in her  attempt to                                                                   
     promote an unfair evaluation of the property.                                                                              
                                                                                                                                
     The  state  did  not  provide  me with  a  copy  of  her                                                                   
     completed appraisal  record and market data  book. I was                                                                   
     unable  to   settle  with  the  state,  based   on  that                                                                   
     appraisal, because of the compensation  being inadequate                                                                   
     and unfair. The  appraisal did not fairly  set forth the                                                                   
     value  of  the  taking  and   the  consequences  to  the                                                                   
     remainder  property. In  the appraisal  of my  property,                                                                   
     the "before the  taking" value was based  on the current                                                                   
     use of  the property  rather than  the highest and  best                                                                   
     use  of that  property.  The  following items  were  not                                                                   
     fairly  considered  when analyzing  the  affects of  the                                                                   
     right-of-way  taking on  my property:  loss of  parking,                                                                   
     change  in  highest  and best  use,  decline  in  market                                                                   
     appeal, change in business use  of the property, decline                                                                   
     in market value.  But when it became apparent  the state                                                                   
     was  misleading and  unfair in their  attempts to  reach                                                                   
     settlement,  I hired  an attorney  and  an appraiser  to                                                                   
     provide  me   accurate  and  fair  counsel.   The  state                                                                   
     appraiser  concluded  that  just  compensation  for  the                                                                   
     property  taken and damages  was $80,000. The  appraiser                                                                   
     for  Northgate  Square  and myself  concluded  the  just                                                                   
     compensation  for  the property  taken  and damages  was                                                                   
     $676,000, eight  times more than the  state's appraisal.                                                                   
     As a consequence,  we proceeded to hearing.  Frank King,                                                                   
     an  appraiser, was  appointed  by the  state to  preside                                                                   
     over  the  masters hearing.  At  the conclusion  of  the                                                                   
     hearing, Mr. King rendered a  decision awarding $324,000                                                                   
     for  property  taken  and  damages.  Although  this  was                                                                   
     approximately  half  of  the amount  sought,  I  decided                                                                   
     rather than  continue with  litigation, I would  settle.                                                                   
     The state  subsequently appealed.  The  state's decision                                                                   
     to  appeal will  significantly increase  costs not  only                                                                   
     for me, but also for the state.                                                                                            
                                                                                                                                
2:05 p.m.                                                                                                                       
                                                                                                                                
He said SB 278 is encouraging, but he would like to see more                                                                    
change. He feels the state is able to totally take over private                                                                 
property with no respect or concern for the rights of the owner.                                                                
                                                                                                                                
RON WOLF,  Sealaska Corporation  Corporate Forester,  testified in                                                              
favor  of the  bill. They  had some  suggestions  on the  language                                                              
concerning how  the bill defines "reasonable and  diligent effort"                                                              
but it could be brought up in the Judiciary Committee.                                                                          
                                                                                                                                
CHAIRMAN TORGERSON agreed.                                                                                                      
                                                                                                                                
There was no further testimony.                                                                                                 
                                                                                                                                
SENATOR KELLY made a motion to move SB 278 from committee with                                                                  
individual recommendations.                                                                                                     
                                                                                                                                
There being no objection, SB 278 moved from committee.                                                                          
CHAIRMAN TORGERSON adjourned the meeting at 2:11 p.m.                                                                           

Document Name Date/Time Subjects