Legislature(2019 - 2020)BUTROVICH 205

03/18/2020 03:30 PM RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 189 SPORT FISHING ENHANCEMENT SURCHARGE TELECONFERENCED
Moved CSSB 189(RES) Out of Committee
-- Public Testimony --
+= SB 217 STATE LAND VOUCHER; PFDS TELECONFERENCED
Moved CSSB 217(RES) Out of Committee
-- Public Testimony --
*+ SB 204 STATE LAND SALES; PLATS; RIVERS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
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**Streamed live on AKL.tv**
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         March 18, 2020                                                                                         
                           4:01 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Peter Micciche, Chair                                                                                                   
Senator John Coghill, Vice Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Joshua Revak                                                                                                            
Senator Scott Kawasaki                                                                                                          
Senator Jesse Kiehl                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Cathy Giessel                                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 217                                                                                                             
"An Act establishing state land  vouchers; relating to restricted                                                               
land sales for veterans; relating  to the veterans' land purchase                                                               
discount; relating  to the permanent  fund dividend;  relating to                                                               
the  duties  of  the  Department   of  Revenue;  authorizing  the                                                               
Department of  Natural Resources  to accept state  land vouchers;                                                               
relating to eligibility for public  assistance; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSSB 217(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 189                                                                                                             
"An  Act relating  to the  fish and  game fund;  establishing the                                                               
sport fishing  enhancement surcharge;  relating to the  repeal of                                                               
the sport fishing facility surcharge;  providing for an effective                                                               
date  by amending  the effective  date of  sec. 21,  ch. 18,  SLA                                                               
2016; and providing for an effective date."                                                                                     
                                                                                                                                
     - MOVED CSSB 189(RES) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 204                                                                                                             
"An Act  relating to  state lands; relating  to the  authority of                                                               
the  Department  of Natural  Resources  over  state owned  lands;                                                               
relating to the  disposal of state land; relating  to the leasing                                                               
and sale of state land  for commercial or industrial development;                                                               
repealing establishment of recreation rivers and recreation                                                                     
river corridors; and providing for an effective date."                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 217                                                                                                                  
SHORT TITLE: STATE LAND VOUCHER; PFDS                                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/21/20       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/20       (S)       RES, FIN                                                                                               
03/02/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/02/20       (S)       Heard & Held                                                                                           
03/02/20       (S)       MINUTE(RES)                                                                                            
03/18/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 189                                                                                                                  
SHORT TITLE: SPORT FISHING ENHANCEMENT SURCHARGE                                                                                
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/12/20       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/12/20       (S)       RES, FIN                                                                                               
02/28/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
02/28/20       (S)       Heard & Held                                                                                           
02/28/20       (S)       MINUTE(RES)                                                                                            
03/04/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/04/20       (S)       <Bill Hearing Canceled>                                                                                
03/09/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/09/20       (S)       <Bill Hearing Canceled>                                                                                
03/18/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 204                                                                                                                  
SHORT TITLE: STATE LAND SALES; PLATS; RIVERS                                                                                    
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/19/20       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/20       (S)       RES, FIN                                                                                               
03/18/20       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MIKE BARNHILL, Deputy Commissioner                                                                                              
Alaska Department of Revenue                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions regarding SB 217.                                                                      
                                                                                                                                
MARTIN PARSONS, Director                                                                                                        
Division of Mining, Land, and Water                                                                                             
Alaska Department of Natural Resources                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions regarding SB 217.                                                                      
                                                                                                                                
WILLIAM MILKS, Assistant Attorney General                                                                                       
Civil Division                                                                                                                  
Labor and State Affairs Section                                                                                                 
Alaska Department of Law                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered constitutional questions related to                                                              
SB 217.                                                                                                                         
                                                                                                                                
SHAWNDA O'BRIEN, Director                                                                                                       
Division of Public Assistance                                                                                                   
Alaska Department of Health & Social Services                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions regarding SB 217.                                                                      
                                                                                                                                
AUSTIN WILLIAMS, Alaska Director of Law and Policy                                                                              
Government Affairs                                                                                                              
Trout Unlimited Alaska                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition of SB 217.                                                                        
                                                                                                                                
KATIE BOTZ, representing self                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition of SB 217.                                                                        
                                                                                                                                
ED MARTIN, representing self                                                                                                    
Cooper Landing, Alaska                                                                                                          
POSITION STATEMENT: Testified in support of SB 217.                                                                           
                                                                                                                                
DAVID RUTZ, Director                                                                                                            
Division of Sport Fisheries                                                                                                     
Alaska Department of Fish and Game                                                                                              
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 189.                                                                           
                                                                                                                                
FORREST BRADEN, Executive Director                                                                                              
Southeast Alaska Guides Organization                                                                                            
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
DAVID LANDIS, General Manager                                                                                                   
Southern Southeast Regional Aquaculture Association                                                                             
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
MELVIN GROVE, Member                                                                                                            
Prince William Sound Charter Boat Association                                                                                   
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
KONRAD JACKSON, Staff                                                                                                           
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented amendments for SB 189.                                                                          
                                                                                                                                
MARTIN PARSONS, Director                                                                                                        
Division of Mining, Land, and Water                                                                                             
Alaska Department of Natural Resources                                                                                          
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Introduced  SB   204  on  behalf   of  the                                                             
administration.                                                                                                                 
                                                                                                                                
CORRI A. FEIGE, Commissioner                                                                                                    
Alaska Department of Natural Resources                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Provided opening remarks for SB 204.                                                                      
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
4:01:53 PM                                                                                                                    
CHAIR  PETER  MICCICHE  called   the  Senate  Resources  Standing                                                             
Committee meeting  to order at 4:01  p.m. Present at the  call to                                                               
order were Senators Kiehl, Kawasaki,  Revak, Coghill, Bishop, and                                                               
Chair Micciche.                                                                                                                 
                                                                                                                                
                SB 217-STATE LAND VOUCHER; PFDS                                                                             
                                                                                                                                
4:02:52 PM                                                                                                                    
CHAIR MICCICHE announced  that the first order  of business would                                                               
be  SENATE  BILL  NO.  217,   "An  Act  establishing  state  land                                                               
vouchers;  relating  to  restricted   land  sales  for  veterans;                                                               
relating  to the  veterans' land  purchase discount;  relating to                                                               
the  permanent  fund dividend;  relating  to  the duties  of  the                                                               
Department  of Revenue;  authorizing  the  Department of  Natural                                                               
Resources to accept state land  vouchers; relating to eligibility                                                               
for public assistance; and providing for an effective date."                                                                    
                                                                                                                                
He said this is the second hearing and public testimony is open.                                                                
                                                                                                                                
4:03:41 PM                                                                                                                    
MIKE   BARNHILL,  Deputy   Commissioner,  Alaska   Department  of                                                               
Revenue,  Juneau,   Alaska,  reminded  the  committee   that  the                                                               
governor introduced  the legislation to give  people applying for                                                               
their Permanent  Fund Dividend (PFD)  the option of  electing, in                                                               
lieu of a  cash dividend, a land voucher that  is worth two times                                                               
the cash dividend.                                                                                                              
                                                                                                                                
4:05:23 PM                                                                                                                    
He said  there were questions  during the previous  hearing about                                                               
how the  cashflow would  work for the  land voucher.  He directed                                                               
attention  to slide  2, PFD  Land Voucher,  Cashflow Hypothetical                                                               
and provided the following summary:                                                                                             
                                                                                                                                
   • The land voucher calculation is two times the statutory PFD                                                                
     amount.                                                                                                                    
   • The money that moves  from  the  Earnings Reserve  Account                                                                 
     (ERA), to  the General Fund  (GF), to  the PFD Fund,  is the                                                               
     total  number of  applicants multiplied  by the  amount that                                                               
     the legislature has appropriated per person.                                                                               
   • 640,000 eligible applicants at  $1,000  per person  equals                                                                 
     $640 million moving to the PFD Fund.                                                                                       
   • The cash PFD payout to 600,000 people multiplied by $1,000                                                                 
     per  person equals  $600 million,  but $40  million in  cash                                                               
     remains because 40,000 applicants elected the land voucher.                                                                
   • Under the bill, the $40 million in cash lapses back to the                                                                 
     GF.                                                                                                                        
   • The face value of the land vouchers  is $4,600  per person                                                                 
     multiplied  by  the  40,000   elections  which  equals  $184                                                               
     million.                                                                                                                   
   • DNR sells $300 million in land with  $184 million  paid in                                                                 
     land vouchers and $116 million in cash.                                                                                    
   • The $116 million in cash goes into the  GF as cash  on the                                                                 
     land sale,  plus the  $40 million that  lapsed from  the PFD                                                               
     fund which  equals a  total of $156  million going  into the                                                               
     GF.                                                                                                                        
                                                                                                                                
MR. BARNHILL  noted that the  bill provides that DNR  can request                                                               
some of  the money  related to the  land voucher  be appropriated                                                               
back  to  the  department  for   purposes  of  administering  the                                                               
program.                                                                                                                        
                                                                                                                                
SENATOR  KIEHL asked  what  the  average acre  of  state land  is                                                               
selling for.  He said  he assumed that  the statewide  average is                                                               
$3,000 to $4,000 per acre.                                                                                                      
                                                                                                                                
MR. BARNHILL deferred the question to DNR.                                                                                      
                                                                                                                                
CHAIR MICCICHE  said the prices  vary dramatically; the  value of                                                               
an accessible lake  parcel is significantly higher  than a drier,                                                               
less accessible parcel.                                                                                                         
                                                                                                                                
4:10:10 PM                                                                                                                    
MARTIN PARSONS,  Director, Division  of Mining, Land,  and Water,                                                               
Alaska  Department  of   Natural  Resources,  Anchorage,  Alaska,                                                               
answered  that the  average  price  is $3,000  per  acre, but  it                                                               
varies widely.  Lands in Southeast Alaska  with oceanfront access                                                               
will sell  for upwards  of $70,000 for  a 5-acre  parcel, whereas                                                               
land around Tok  or the Richardson Highway may go  for $13,000 to                                                               
$15,000 for a 5-acre parcel.                                                                                                    
                                                                                                                                
SENATOR KIEHL noted that the  hypothetical cashflow example would                                                               
equate to  DNR selling 20,000 to  100,000 acres a year.  He asked                                                               
if DNR has that acreage surveyed and ready to sell.                                                                             
                                                                                                                                
MR.  PARSONS replied  DNR  could make  200,000  to 250,000  acres                                                               
available by auction time.                                                                                                      
                                                                                                                                
SENATOR  KIEHL  said  the  information  indicates  that  DNR  was                                                               
selling  2,000  to  3,000  acres   a  year  so  the  response  is                                                               
surprising but interesting.                                                                                                     
                                                                                                                                
4:12:15 PM                                                                                                                    
MR.   BARNHILL  stated   that  the   purpose   of  the   cashflow                                                               
hypothetical  was to  show  how the  cash moves.  It  was not  to                                                               
suggest the  volume of  land that DNR  would make  available. Any                                                               
similarity between the implied volume  of land in the example and                                                               
what Mr. Parson said is purely coincidental, he said.                                                                           
                                                                                                                                
SENATOR  KIEHL  responded that  the  connection  is cash  to  the                                                               
general  fund from  land sales.  If the  quantity of  land that's                                                               
available  isn't anywhere  near  $300 million,  one can't  assume                                                               
that level of  cash will come in. The bottom  line to the general                                                               
fund changes dramatically depending on what is really for sale.                                                                 
                                                                                                                                
MR. BARNHILL reiterated that his intent  was to show how the cash                                                               
flows, not  the amount of money  that will be raised  in the land                                                               
voucher program.                                                                                                                
                                                                                                                                
CHAIR MICCICHE responded that the  committee understands that and                                                               
Senator Kiehl is satisfied with the answer.                                                                                     
                                                                                                                                
MR.  BARNHILL  said the  discussion  and  comments by  the  Chair                                                               
during the previous hearing persuaded  the department to set up a                                                               
plan  to track  transfers of  land received  through the  voucher                                                               
program as well  as replacement of lost or  stolen land vouchers.                                                               
He  noted the  amendment for  the committee's  consideration that                                                               
would allow that to happen.                                                                                                     
                                                                                                                                
4:14:58 PM                                                                                                                    
CHAIR MICCICHE  remarked that the amendment  strengthens the bill                                                               
and  said   he  appreciates  that  the   department  changed  its                                                               
direction.                                                                                                                      
                                                                                                                                
MR.  BARNHILL  said  his  hope is  that  the  proposed  amendment                                                               
accomplishes the intention of Chair Micciche's recommendation.                                                                  
                                                                                                                                
He  directed attention  to the  land voucher  mockup in  the bill                                                               
packets and detailed  that it looks like a  traditional bond with                                                               
a  serial  number  for identification,  the  $4,600  hypothetical                                                               
value, verbiage  from the bill  about what  it can and  cannot be                                                               
used for,  information on how  to register and transfer  with the                                                               
Alaska Department of  Revenue, a statement that  the land voucher                                                               
does  not expire,  and  the name  of the  person  the voucher  is                                                               
issued  to is  on  the  document. He  added  that the  department                                                               
anticipates adding  some anti-counterfeiting features  to protect                                                               
the authenticity of the document.                                                                                               
                                                                                                                                
MR.  BARNHILL   noted  that  Shawnda  O'Brien   from  the  Alaska                                                               
Department of Health and Social  Services (DHSS) was available to                                                               
answer  questions such  as the  one  Senator Kiehl  posed at  the                                                               
previous hearing  about the  exclusion of  the land  voucher from                                                               
the hold harmless clause.                                                                                                       
                                                                                                                                
CHAIR MICCHICHE  asked Mr.  Milks from  the Alaska  Department of                                                               
Law to first address the  committee's questions from the previous                                                               
hearing on SB 217.                                                                                                              
                                                                                                                                
4:18:51 PM                                                                                                                    
WILLIAM MILKS, Assistant Attorney  General, Civil Division, Labor                                                               
and  State Affairs  Section, Alaska  Department  of Law,  Juneau,                                                               
Alaska, noted  that a  committee member  asked a  question during                                                               
the  previous  meeting  about  the  equal  protection  clause  in                                                               
relation  to  SB 217.  He  explained  that the  equal  protection                                                               
clause  is in  the  United  States Constitution  as  well as  the                                                               
Alaska  Constitution.  It  is often  raised  because  legislation                                                               
frequently makes distinctions between individuals.                                                                              
                                                                                                                                
MR. MILKS  said Department  of Law's  view is  the State  has the                                                               
rational basis  to provide  a land voucher  to its  residents who                                                               
meet the residency requirements in  the bill. The department does                                                               
not see  the land  voucher raising  a constitutional  issue about                                                               
equal protection  because like the PFD,  qualification requires a                                                               
residency period.                                                                                                               
                                                                                                                                
He detailed that the Alaska  Supreme Court at different times has                                                               
reviewed   the  constitutionality   of   the   PFD  program   and                                                               
specifically the eligibility requirements.  It has concluded that                                                               
the PFD eligibility requirements  are constitutional because they                                                               
meet the rational basis test  and focus on ensuring and verifying                                                               
actual bonified residency for the benefit.                                                                                      
                                                                                                                                
MR.  MILKS summarized  that in  the department's  mind, the  land                                                               
voucher  program  passes  constitutional   muster  on  the  equal                                                               
protection  clause  due   to  its  similarity  to   the  PFD  and                                                               
university tuition reduction for residents.                                                                                     
                                                                                                                                
4:23:04 PM                                                                                                                    
SENATOR  COGHILL specified  that his  question from  the previous                                                               
hearing  related  to possible  inequality  where  DNR deems  cash                                                               
offers  for land  as being  more valuable  than offers  with land                                                               
vouchers.                                                                                                                       
                                                                                                                                
MR. MILKS  replied it is  DOL's view that  the dollar sum  of the                                                               
voucher is equal to cash.                                                                                                       
                                                                                                                                
SENATOR COGHILL said  he would take the answer at  face value and                                                               
think more about how it might be challenged.                                                                                    
                                                                                                                                
SENATOR KIEHL  asked Ms.  O'Brien why, unlike  the PFD,  the bill                                                               
entirely exempts the land voucher  program from the hold harmless                                                               
provisions for asset exclusion testing.                                                                                         
                                                                                                                                
4:27:00 PM                                                                                                                    
SHAWNDA O'BRIEN, Director, Division  of Public Assistance, Alaska                                                               
Department  of   Health  &   Social  Services,   Juneau,  Alaska,                                                               
explained  that  the hold  harmless  provisions  apply to  public                                                               
assistance  eligibility  so that  recipients  do  not lose  their                                                               
benefits.  The  asset  resource  test  allows  up  to  $2,000  as                                                               
countable and anything above that  counts against the eligibility                                                               
criteria. She confirmed  that the State counts the  PFD as income                                                               
against program eligibility criteria.                                                                                           
                                                                                                                                
MS.  O'BRIEN specified  that the  State will  not count  the land                                                               
voucher  against  a  participant's  program  eligibility  if  the                                                               
individual  uses the  voucher for  a primary  residence. However,                                                               
the   State  will   count  the   land  voucher   against  program                                                               
eligibility   if   the   individual    uses   the   voucher   for                                                               
nonresidential   property.   Each    individual   case   requires                                                               
evaluation to assess different parameters or circumstances.                                                                     
                                                                                                                                
MS.  O'BRIEN said  the hold  harmless rules  are federal  and the                                                               
State could  incur significant costs for  maintaining eligibility                                                               
in lieu of following federal rules.                                                                                             
                                                                                                                                
4:30:24 PM                                                                                                                    
SENATOR KIEHL  noted that  the committee  saw stirring  images in                                                               
the  previous hearing  of Alaskans  getting a  piece of  land and                                                               
building self-sufficiency.  He asked  if using the  land vouchers                                                               
makes sense for someone to use towards self-sufficiency.                                                                        
                                                                                                                                
MS. O'BRIEN  replied it depends  on the individual  situation and                                                               
whether  the  land  voucher would  become  the  person's  primary                                                               
residence, or it would be excluded from the asset resource test.                                                                
                                                                                                                                
SENATOR  KIEHL pointed  out that  DHSS did  not provide  a fiscal                                                               
note. He noted that the well-know  principle for over 30 years is                                                               
that a PFD  is not going to  hurt a person's ability  to get help                                                               
feeding  their children.  He  asked what  DHSS  would require  to                                                               
properly educate  clients to avoid family  assistance mistakes in                                                               
electing a land voucher                                                                                                         
                                                                                                                                
MS. O'BRIEN  answered that DHSS  would need to  work considerably                                                               
on informing  people to  make sure they  know what  the potential                                                               
impact would  be. While DHSS is  not in the business  of advising                                                               
people of what they should or  should not do, people need to know                                                               
how  the   land  voucher  would   count  towards   their  program                                                               
eligibility.                                                                                                                    
                                                                                                                                
CHAIR  MICCICHE  announced  that  the  committee  would  move  to                                                               
amendments. He said he considers the amendments as friendly.                                                                    
                                                                                                                                
4:33:55 PM                                                                                                                    
SENATOR COGHILL moved Amendment 1, A.1.                                                                                         
                                                                                                                                
                                                      31-GS2064\A.1                                                             
                                                           Radford                                                              
                                                           3/16/20                                                              
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                              
                                                                                                                              
     OFFERED IN THE SENATE              BY SENATOR MICCICHE                                                                     
          TO: SB 217                                                                                                            
                                                                                                                                
                                                                                                                                
     Page 3, lines 16 - 17:                                                                                                     
          Delete "The department may not approve or deny                                                                        
     any transfer."                                                                                                             
                                                                                                                                
     Page 3, line 17:                                                                                                           
          Delete "may not"                                                                                                      
          Insert "shall"                                                                                                        
                                                                                                                                
     Page 5, line 24, following "voucher":                                                                                      
          Insert "and for replacing a lost, stolen, or                                                                          
     destroyed state land voucher"                                                                                              
                                                                                                                                
     Page 5, line 28, following "issued":                                                                                       
          Insert ";                                                                                                           
             (14) maintain a registry of state land                                                                             
     voucher transfers"                                                                                                         
                                                                                                                                
CHAIR MICCICHE objected for discussion purposes.                                                                                
                                                                                                                                
MR.  BARNHILL explained  that  the first  part  of the  amendment                                                               
deletes the language that says  the department may not approve or                                                               
deny any  transfer and that  change allows the  Alaska Department                                                               
of Revenue  to approve  and deny transfers.  Language on  page 3,                                                               
line 17,  conforms with  that. Lines  8 and  9 authorizes  DOR to                                                               
replace  stolen,  lost, or  destroyed  state  land vouchers,  and                                                               
lines 11-13 authorizes  the department to maintain  a registry of                                                               
voucher transfers.                                                                                                              
                                                                                                                                
4:35:08 PM                                                                                                                    
CHAIR MICCICHE  removed his objection and  announced that without                                                               
further objection Amendment 1 is adopted.                                                                                       
                                                                                                                                
4:35:24 PM                                                                                                                    
SENATOR COGHILL  moved conceptual Amendment 2.  He explained that                                                               
the amendment inserts on page 2,  line 11, the phrase "other than                                                               
Mental Health Trust land" after the word "land."                                                                                
                                                                                                                                
CHAIR  MICCICHE objected  for discussion  purposes. He  asked Mr.                                                               
Barnhill to comment.                                                                                                            
                                                                                                                                
MR. BARNHILL said  his understanding is that  the amendment would                                                               
make  Mental Health  Trust  land  not part  of  the land  voucher                                                               
program. He  asked Senator Coghill  to confirm that that  was his                                                               
intention.                                                                                                                      
                                                                                                                                
SENATOR COGHILL answered  that he was carrying  the amendment for                                                               
Mr. Barnhill.                                                                                                                   
                                                                                                                                
CHAIR  MICCICHE   explained  that   Amendment  2  is   an  Alaska                                                               
Department of  Natural Resources (DNR) amendment  to clarify that                                                               
the  land vouchers  are  not available  for  Mental Health  Trust                                                               
land.                                                                                                                           
                                                                                                                                
4:36:51 PM                                                                                                                    
CHAIR MICCICHE  removed his objection and  announced that without                                                               
further objection, conceptual Amendment 2 is adopted.                                                                           
                                                                                                                                
4:37:08 PM                                                                                                                    
CHAIR MICCICHE opened public testimony.                                                                                         
                                                                                                                                
4:37:18 PM                                                                                                                    
AUSTIN WILLIAMS,  Alaska Director  of Law and  Policy, Government                                                               
Affairs, Trout Unlimited Alaska,  Anchorage, Alaska, testified in                                                               
opposition to  SB 217. He said  SB 217 in its  broader context is                                                               
an important companion to SB 204,  the state land sales bill. For                                                               
many Alaskans, public lands are  an essential part of their daily                                                               
life to  fish, hunt, camp, and  ski. Some state lands  are iconic                                                               
like  the Chugach  or  Denali  state parks,  but  the bill  would                                                               
affect  Alaska's fishing  and  hunting that  takes  place on  DNR                                                               
managed lands outside of the state park system.                                                                                 
                                                                                                                                
He said he  understands the immense fiscal pressure  on the State                                                               
and Permanent  Fund, but any solutions  must responsibly consider                                                               
the long-term implications  and future costs. State  land and the                                                               
immense  resources  they  contain   are  Alaska's  most  valuable                                                               
assets.  State  lands  contain   fish  and  wildlife  that  fills                                                               
freezers, provides reliable sources  of income through commercial                                                               
fishing,   guiding,   and   tourism,   and   acts   as   cultural                                                               
centerpieces.                                                                                                                   
                                                                                                                                
MR.   WILLIAMS   concluded   saying   that   SB   217   increases                                                               
privatization  of state  lands at  deeply  discounted rates  that                                                               
will not solve the State's financial woes.                                                                                      
                                                                                                                                
4:40:37 PM                                                                                                                    
KATIE  BOTZ,  representing  self, Juneau,  Alaska,  testified  in                                                               
opposition of  SB 217. She said  her family hunts on  state lands                                                               
to support  a subsistence  way of  living. She  said SB  217 will                                                               
impact subsistence  hunting by privatizing  land. She  noted that                                                               
she  also questioned  whether individuals  would  have access  to                                                               
land offered in the land voucher program.                                                                                       
                                                                                                                                
4:43:25 PM                                                                                                                    
ED MARTIN,  representing self, Cooper Landing,  Alaska, testified                                                               
in support of  SB 217. He said the bill  will benefit the 187,000                                                               
children  that   live  in  the   state  by  providing   them  the                                                               
opportunity  to realize  the American  dream. He  noted that  his                                                               
family benefited from  homesteading in Alaska. He  added that the                                                               
bill  will utilize  funds  held back  from  the Alaska  Permanent                                                               
Fund.                                                                                                                           
                                                                                                                                
He stated that  the idea for land vouchers has  been around for a                                                               
long time. He said he believes  that he has been the catalyst for                                                               
the governor  to bring the  bill forward. He reiterated  that the                                                               
bill  would get  land into  the  hands of  Alaska's children  for                                                               
their future.                                                                                                                   
                                                                                                                                
CHAIR MICCICHE concurred that Mr.  Martin has been a catalyst for                                                               
the  bill. Finding  no further  testimony or  questions from  the                                                               
committee, he solicited the will of the committee.                                                                              
                                                                                                                                
4:47:14 PM                                                                                                                    
SENATOR COGHILL moved to report  CSSB 217, work order 31-GS2064\A                                                               
as amended,  from committee  with individual  recommendations and                                                               
attached fiscal notes.                                                                                                          
                                                                                                                                
CHAIR MICCHICHE asked if there was an objection.                                                                                
                                                                                                                                
SENATOR KIEHL  objected to comment  that the  amendment exempting                                                               
Mental Health  Trust land was  illustrative. He pointed  out that                                                               
the Mental Health Trust must get  the full value of the resource.                                                               
By contrast, the bill generates, at  best, 25 cents on the dollar                                                               
for  Alaska's  land,  which  he  does  not  believe  is  fiscally                                                               
responsible. Also,  the bill raises significant  issues regarding                                                               
access to lands for Alaskans.                                                                                                   
                                                                                                                                
SENATOR KIEHL removed his objection.                                                                                            
                                                                                                                                
SENATOR  COGHILL pointed  out that  about one  percent of  Alaska                                                               
land is private and he applauds  the governor for taking a unique                                                               
way of  addressing private land  ownership. He said  he struggles                                                               
with the land  voucher program, but the bill  should move forward                                                               
for further consideration.                                                                                                      
                                                                                                                                
CHAIR MICCICHE said with all  due respect to those that testified                                                               
against the  bill, the  amount of  private land  in the  state is                                                               
minuscule. He  stated that the  land voucher concept  is valuable                                                               
and important to many Alaskans.                                                                                                 
                                                                                                                                
4:49:53 PM                                                                                                                    
CHAIR MICCICHE found  no further objection and  CSSB 217(RES) was                                                               
reported from the Senate Resources Standing Committee.                                                                          
                                                                                                                                
4:50:01 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
           SB 189-SPORT FISHING ENHANCEMENT SURCHARGE                                                                       
                                                                                                                                
4:52:21 PM                                                                                                                    
CHAIR MICCICHE  announced that the  next order of  business would                                                               
be SENATE  BILL NO. 189,  "An Act relating  to the fish  and game                                                               
fund;  establishing  the  sport  fishing  enhancement  surcharge;                                                               
relating to the  repeal of the sport  fishing facility surcharge;                                                               
providing for  an effective date  by amending the  effective date                                                               
of sec.  21, ch.  18, SLA  2016; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
He  noted that  the  bill  was previously  heard  on 2/28/20  and                                                               
public  testimony  was  heard.  He  asked  Mr.  Rutz  to  briefly                                                               
summarize the bill.                                                                                                             
                                                                                                                                
4:52:55 PM                                                                                                                    
DAVID  RUTZ,  Director,  Division   of  Sport  Fisheries,  Alaska                                                               
Department of Fish  and Game, Palmer, Alaska,  explained that the                                                               
bill  would allow  the department  to keep  a portion  of the  $9                                                               
surcharge added to the sportfish  license fee implemented in 2005                                                               
to repay  the bonds  for building two  sport fish  hatcheries and                                                               
Southeast King salmon enhancements.  The surcharge will disappear                                                               
when the surcharge pays off the bonds in December 2020.                                                                         
                                                                                                                                
MR. RUTZ said the intent of the  bill is to maintain a portion of                                                               
the  surcharge. The  surcharge for  residents would  be $4  and a                                                               
little  higher  for nonresidents.  The  surcharge  would help  to                                                               
continue funding  for hatcheries  and King salmon  enhancement in                                                               
Southeast Alaska.                                                                                                               
                                                                                                                                
4:54:00 PM                                                                                                                    
CHAIR MICCICHE turned to public testimony.                                                                                      
                                                                                                                                
4:54:29 PM                                                                                                                    
FORREST  BRADEN,  Executive  Director,  Southeast  Alaska  Guides                                                               
Organization, Ketchikan, Alaska, testified  in support of SB 189.                                                               
He  said approximately  50 percent  of King  salmon harvested  in                                                               
Southeast Alaska  are hatchery produced. King  salmon enhancement                                                               
is a substantial benefit to  both residents and nonresidents that                                                               
fish the inside waters in Southeast Alaska.                                                                                     
                                                                                                                                
4:56:08 PM                                                                                                                    
DAVID  LANDIS,  General   Manager,  Southern  Southeast  Regional                                                               
Aquaculture Association, Ketchikan,  Alaska, testified in support                                                               
of SB  189. He stated  that most fee revenue  will go to  the two                                                               
large hatcheries in Anchorage and  Fairbanks that the State built                                                               
under the  bond. However,  the State  has three  designated sport                                                               
fishing  hatcheries,  including  the  Crystal  Lake  Hatchery  in                                                               
Petersburg.                                                                                                                     
                                                                                                                                
He  explained that  the Southern  Southeast Regional  Aquaculture                                                               
Association  (SSRAA) operates  the  Crystal  Lake Hatchery  under                                                               
contract with  the State.  A portion  of the  operational funding                                                               
for Crystal  Lake is through  the surcharge.  Continued surcharge                                                               
funding  is  critical  to  the  operation  of  the  Crystal  Lake                                                               
Hatchery, especially for upgrading hatchery raceways.                                                                           
                                                                                                                                
MR. LANDIS  pointed out that  the Crystal Lake  Hatchery provides                                                               
an  impressive  amount  of  King   salmon  in  Southeast  Alaska.                                                               
Enhanced King  salmon account for  half of King  salmon harvested                                                               
in Southeast Alaska  and the Crystal Lake  Hatchery produces half                                                               
of those  enhanced fish.  The hatchery  is an  important facility                                                               
when accounting for the Pacific  Salmon Treaty between the United                                                               
States  and   Canada.  The  hatchery   is  critical   for  sport,                                                               
commercial, and charter operators.                                                                                              
                                                                                                                                
MR. LANDIS concluded  his comments saying that  the State's user-                                                               
pays system is fair and appropriate.                                                                                            
                                                                                                                                
4:59:06 PM                                                                                                                    
MELVIN  GROVE,   Member,  Prince   William  Sound   Charter  Boat                                                               
Association, Wasilla, Alaska, testified in  support of SB 189. He                                                               
stated that the average angler does  not know that there is a fee                                                               
added  to their  fishing license  and would  not know  unless the                                                               
State  takes  the  fee  away.  He said  the  association  is  not                                                               
surprised that the fee revenue  will continue to support hatchery                                                               
enhancement and  other possible hatchery uses.  He suggested that                                                               
the bill  include funds  for data  collection to  verify enhanced                                                               
fish harvest.                                                                                                                   
                                                                                                                                
CHAIR MICCICHE turned to the consideration of amendments.                                                                       
                                                                                                                                
5:03:20 PM                                                                                                                    
SENATOR COGHILL moved Amendment 1, A.2.                                                                                         
                                                                                                                                
                                                 31-GS2165\A.2                                                                  
                                                        Klein                                                                   
                                                       3/9/20                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE              BY SENATOR MICICHE                                                                      
          TO: SB 189                                                                                                            
                                                                                                                                
                                                                                                                                
     Page 1, lines 11 - 12:                                                                                                     
          Delete   "to   sport    fishing   facilities   for                                                                    
     maintenance and enhancement of sport fisheries"                                                                            
          Insert "for [TO] sport fishing stock enhancement                                                                      
          and ongoing maintenance and operation of the                                                                          
     department's sport fish hatchery facilities"                                                                               
                                                                                                                                
     Page 2, lines 9 - 10:                                                                                                      
          Delete "to [FOR] sport fishing facilities for                                                                         
     maintenance and enhancement of sport fisheries"                                                                            
          Insert "for sport fishing stock enhancement and                                                                       
     ongoing maintenance and operation of the department's                                                                      
     sport fish hatchery facilities"                                                                                            
                                                                                                                                
5:04:05 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
5:04:46 PM                                                                                                                    
CHAIR MICCICHE called  the committee back to  order and confirmed                                                               
that the version for Amendment 1 is A.2.                                                                                        
                                                                                                                                
5:05:01 PM                                                                                                                    
CHAIR MICCICHE objected for discussion purposes.                                                                                
                                                                                                                                
5:05:05 PM                                                                                                                    
KONRAD  JACKSON,  Staff,  Senator Peter  Micciche,  Alaska  State                                                               
Legislature,  Juneau, Alaska,  explained that  Amendment 1  makes                                                               
two changes.  On page 1, lines  11-12, it deletes the  phrase "to                                                               
sport  fishing  facilities  for maintenance  and  enhancement  of                                                               
sport fisheries" and inserts the  phrase "for sport fishing stock                                                               
enhancement  and   ongoing  maintenance  and  operation   of  the                                                               
department's sport fish hatchery facilities."                                                                                   
                                                                                                                                
He  detailed  that the  second  change  on  page 2,  lines  9-10,                                                               
deletes the  phrase "to sport fishing  facilities for maintenance                                                               
and enhancement of sport fisheries"  and inserts, the phrase "for                                                               
sport  fishing  stock  enhancement and  ongoing  maintenance  and                                                               
operation of the department's sport fish hatchery" facilities.                                                                  
                                                                                                                                
MR.  JACKSON explained  that Amendment  1  would focus  surcharge                                                               
funds more  closely to the  original purpose as expressed  by the                                                               
department at the previous hearing.                                                                                             
                                                                                                                                
CHAIR MICCICHE maintained  his objection to explain  that he felt                                                               
that  the language  was  a little  loose.  The department  talked                                                               
about the promise of the  funding remaining with enhancement, yet                                                               
the language allowed  other spending. He said the  promise of the                                                               
original  fee  on   sport  fishing  licenses  was   in  fact  for                                                               
enhancement and tightening the language was important.                                                                          
                                                                                                                                
5:06:32 PM                                                                                                                    
CHAIR MICCICHE  removed his objection and  announced that without                                                               
further objection, Amendment 1 is adopted.                                                                                      
                                                                                                                                
5:06:43 PM                                                                                                                    
SENATOR COGHILL moved Amendment 2, A.3.                                                                                         
                                                                                                                                
                                                      31-GS2165\A.3                                                             
                                                             Klein                                                              
                                                            3/2/20                                                              
                                                                                                                                
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE              BY SENATOR MICCICHE                                                                     
          TO: SB 189                                                                                                            
                                                                                                                                
                                                                                                                                
     Page  1,  line 2,  following  the  first occurrence  of                                                                    
     "surcharge;":                                                                                                            
          Insert "relating to personal use fishing permits                                                                    
     and fees;"                                                                                                               
                                                                                                                                
     Page 2, following line 4:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec.  2. AS 16.05.340(a)  is amended by  adding a                                                                
     new paragraph to read:                                                                                                     
               (28) Personal use fishing permit  .......... 5                                                                   
     A  recipient of  a $5  resident hunting,  trapping, and                                                                    
     sport fishing  license under (6)(A) of  this subsection                                                                    
     may obtain this permit for $5."                                                                                            
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                              
     Page 3, following line 5:                                                                                                  
     Insert new bill sections to read:                                                                                          
        "* Sec. 4.  AS 16.05.340 is amended by  adding a new                                                                
     subsection to read:                                                                                                        
          (l)  The commissioner shall charge the fee in                                                                         
     (a)(28) of  this section for  personal use  fishing not                                                                  
     otherwise  licensed  or  permitted under  (a)  of  this                                                                    
     section.  Receipts  from  personal use  fishing  permit                                                                    
     fees   shall   be   accounted  for   separately   under                                                                    
     AS 37.05.146(c). The legislature  may appropriate money                                                                    
     in the  account to  the department to  support personal                                                                    
     use  fisheries,  and  to   a  municipality  to  support                                                                    
     personal  use fisheries  based on  the total  number of                                                                    
     days fished  in all  personal use fisheries  divided by                                                                    
     the  number  of personal  use  days  fished within  the                                                                    
     municipality.                                                                                                              
        * Sec. 5. AS 37.05.146(c) is amended by adding a                                                                    
     new paragraph to read:                                                                                                     
                                                                                                                                
               (80)  receipts of the Department of Fish and                                                                     
        Game from personal use fishing permit fees under                                                                        
     AS 16.05.340."                                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, line 20:                                                                                                           
          Delete "2"                                                                                                            
          Insert "3"                                                                                                            
                                                                                                                                
     Page 3, line 23:                                                                                                           
          Delete "2"                                                                                                            
          Insert "3"                                                                                                            
                                                                                                                                
     Page 3, line 29:                                                                                                           
          Delete "sec. 7"                                                                                                       
          Insert "sec. 10"                                                                                                      
                                                                                                                                
     Page 3, line 30:                                                                                                           
          Delete "sec. 7"                                                                                                       
          Insert "sec. 10"                                                                                                      
                                                                                                                                
     Page 3, line 31:                                                                                                           
          Delete "sec. 9"                                                                                                       
          Insert "sec. 12"                                                                                                      
                                                                                                                                
5:06:50 PM                                                                                                                    
CHAIR MICCICHE objected for discussion purposes.                                                                                
                                                                                                                                
MR. JACKSON  explained that Amendment 2  inserts a $5 fee  on all                                                               
personal use salmon  fishing permits statewide. That  was not the                                                               
intent so the amendment requires  a conceptual amendment to limit                                                               
the $5 fee  specifically to Upper Cook Inlet  personal use salmon                                                               
fishing permits.                                                                                                                
                                                                                                                                
CHAIR MICCICHE maintained  his objection to allow a  motion for a                                                               
conceptual amendment to Amendment 2.                                                                                            
                                                                                                                                
5:08:02 PM                                                                                                                    
SENATOR COGHILL moved conceptual amendment 1 to Amendment 2.                                                                    
                                                                                                                                
CHAIR MICCICHE objected for purposes of an explanation.                                                                         
                                                                                                                                
MR. JACKSON  explained that conceptual  amendment 1  to Amendment                                                               
2, would  focus the personal  use fishing permit fee  strictly on                                                               
the  Upper Cook  Inlet personal  use fisheries.  He detailed  the                                                               
following changes:                                                                                                              
                                                                                                                                
   • Page 1, line 7                                                                                                             
     Insert "Upper Cook Inlet" before the word "personal"                                                                       
   • Page 1, line 7                                                                                                             
     Insert "salmon" following the word "use"                                                                                   
   • Page 1, lines 16-17                                                                                                        
     Delete the two lines except for the subsection letter                                                                      
     "(l)"                                                                                                                      
   • Page 1, line 18                                                                                                            
     Insert "Upper Cook Inlet" following the word "from"                                                                        
   • Page 1, line 18                                                                                                            
     Insert "salmon" following the word "use"                                                                                   
   • Page 1, line 20                                                                                                            
         Insert "Upper Cook Inlet" following [the first                                                                         
     occurrence of] the word "support"                                                                                          
   • Page 1, line 20                                                                                                            
     Insert "salmon" following the word "use"                                                                                   
   • Page 1, line 20                                                                                                            
        Insert "Upper Cook Inlet" following [the second                                                                         
     occurrence of] the word "support"                                                                                          
   • Page 1, line 21                                                                                                            
     Insert "salmon"                                                                                                            
   • Page 2, line 1                                                                                                             
     Insert "Upper Cook Inlet" following the word "from"                                                                        
   • Page 2, line 1                                                                                                             
     Insert the word "salmon" following the word "use"                                                                          
                                                                                                                                
MR.  JACKSON  summarized  that  the  conceptual  amendment  would                                                               
achieve the original intent of Amendment  2, which is to add a $5                                                               
per permit fee for Upper Cook Inlet personal use salmon fishing.                                                                
                                                                                                                                
5:10:14 PM                                                                                                                    
CHAIR MICCICHE removed his objection  to the conceptual amendment                                                               
to Amendment 2.                                                                                                                 
                                                                                                                                
CHAIR MICCICHE  related that the  only opposition his  office had                                                               
heard to  the fee  was that  it would apply  to all  personal use                                                               
fisheries,  which was  not the  intent. Individuals  from Chitina                                                               
expressed concern  that the  fee would be  added to  the existing                                                               
fee for  Chitina but that  is not the case.  It is strictly  a $5                                                               
Upper Cook Inlet personal salmon fishery fee.                                                                                   
                                                                                                                                
5:11:05 PM                                                                                                                    
CHAIR  MICCICHE found  no further  objection to  Amendment 2,  as                                                               
amended, and stated that Amendment 2, [as amended], is adopted.                                                                 
                                                                                                                                
5:11:14 PM                                                                                                                    
SENATOR COGHILL moved to report  CSSB 189, work order 31-GS2165\A                                                               
as amended,  from committee  with individual  recommendations and                                                               
the attached fiscal note(s).                                                                                                    
                                                                                                                                
5:11:28 PM                                                                                                                    
CHAIR MICCICHE found no objection  and CSSB 189(RES) was reported                                                               
from the Senate Resources Standing Committee.                                                                                   
                                                                                                                                
             SB 204-STATE LAND SALES; PLATS; RIVERS                                                                         
                                                                                                                                
5:11:45 PM                                                                                                                    
CHAIR MICCICHE announced  that the final order  of business would                                                               
be  SENATE  BILL  NO.  204,  "An Act  relating  to  state  lands;                                                               
relating to the authority of  the Department of Natural Resources                                                               
over state owned  lands; relating to the disposal  of state land;                                                               
relating to the leasing and sale  of state land for commercial or                                                               
industrial  development;  repealing establishment  of  recreation                                                               
rivers  and  recreation river  corridors;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR MICCICHE noted that this was the first hearing for SB 204.                                                                
                                                                                                                                
5:12:20 PM                                                                                                                    
MARTIN PARSONS,  Director, Division  of Mining, Land,  and Water,                                                               
Alaska  Department  of   Natural  Resources,  Anchorage,  Alaska,                                                               
explained  that  SB  204  is   a  land  sale  bill  the  governor                                                               
introduced  to  help the  Division  of  Mining, Land,  and  Water                                                               
(DMLW) make  lands available to  fulfill the need and  desire for                                                               
Alaskans to own a piece of Alaska.                                                                                              
                                                                                                                                
5:13:02 PM                                                                                                                    
MR. PARSONS commenced his presentation,  SB 204 State Land Sales;                                                               
Plats; Rivers. He displayed slide 2,  Why and How DNR sells State                                                               
land? that made the following points:                                                                                           
                                                                                                                                
   • Alaska Constitution                                                                                                        
        o Article 8, Section 1 -It is the policy of the State to                                                                
          encourage   the  settlement   of  its   land  and   the                                                               
          development of  its resources by making  them available                                                               
          for maximum use consistent with the public interest."                                                                 
        o Article 8, Section 9        requires reservations of                                                                  
          minerals (as required by Section  6(i) of the Statehood                                                               
          Act)  and reservations  for access  to these  resources                                                               
          (implemented by AS 38.05.125).                                                                                        
        o Article 8, Section 10 requires public notice and                                                                      
          "other safeguards of the  public interest" when selling                                                               
          state land.  No disposals or  lease of state  lands, or                                                               
          interests therein,  shall be made without  prior public                                                               
          notice and  other safeguards of the  public interest as                                                               
          may be prescribed by law.                                                                                             
                                                                                                                                
   • Alaska Statute Title 38                                                                                                    
        o AS 38 serves as an "owner's manual" for Alaska's                                                                      
          Statehood   Act   entitlement   lands,   dealing   with                                                               
          management as well as conveyance.                                                                                     
        o Most of the authority of Land Sales is codified within                                                                
          AS Title 38, Chapter 05 The Alaska Land Act.                                                                          
                                                                                                                                
He explained that  slide 2 provides an overview of  why the State                                                               
sells  land, the  authorities, and  the constitutional  framework                                                               
but  not necessarily  the requirements.  One of  the department's                                                               
primary  purposes   is  to  provide   for  the   development  and                                                               
settlement of state land, but  the State reserves the minerals as                                                               
part of Alaska's Statehood Act.                                                                                                 
                                                                                                                                
MR. PARSONS emphasized that land  sales are subject to the public                                                               
interest.  The land  sales program  is not  a land  giveaway. The                                                               
department does  not make  land available  where the  public does                                                               
not have  an opportunity to weigh  in on how the  State sells the                                                               
land.  Land sales  go  through the  normal  public process  under                                                               
Title 38, the statutes the  make lands available under the Alaska                                                               
Land Act.                                                                                                                       
                                                                                                                                
5:14:03 PM                                                                                                                    
MR. PARSONS displayed slide 3,  SB 204 - State Platting Authority                                                               
for  State  Land Managed  by  DNR,  that contains  the  following                                                               
information:                                                                                                                    
                                                                                                                                
   • State assumes platting responsibilities for state lands                                                                    
     within and outside of municipal boundaries.                                                                                
   • Consolidation  of   platting    requirements   will    add                                                                 
     efficiencies to  the development of state  land for disposal                                                               
     to  Alaskans; reducing  costs and  time  necessary to  bring                                                               
     state lands  onto the market  helping to fulfill  the demand                                                               
     for state land parcels.                                                                                                    
        o Where appropriate the state will be consistent with                                                                   
          municipal construction and subdivision stipulations                                                                   
          into the subdivision designs to the maximum extent                                                                    
        o Road Rights of Ways will be platted consistent with                                                                   
          DOT&PF requirements                                                                                                   
             square4 Access to subdivisions will meet "Collector road"                                                          
               standards                                                                                                        
        o Reduces development costs making projects economically                                                                
          feasible                                                                                                              
        o Provides predictability in development costs and                                                                      
          timelines                                                                                                             
        o Reduces rework of plats                                                                                               
                                                                                                                                
He  said  platting  and  land   sale  development  would  all  be                                                               
consistent with AS  38.04.065. The State would  work closely with                                                               
municipalities and boroughs throughout the planning process.                                                                    
                                                                                                                                
MR. PARSONS explained  that the portion of the bill  that slide 3                                                               
addresses  also  deals  with  the  effects  on  the  Division  of                                                               
Forestry,  the   Alaska  Trust  Land   Office,  and   the  Alaska                                                               
Department  of Military  Affairs (DMVA)  where the  State accepts                                                               
opportunities to plat roads into  certain areas. For example, the                                                               
Division of  Forestry could access  a burnt stand of  timber that                                                               
was dried and would be  excellent firewood; the division would be                                                               
able to bring that online in  a very quick and predictable manner                                                               
while taking municipal concerns into account.                                                                                   
                                                                                                                                
He said  one of the things  that DMLW would look  at is reserving                                                               
rights-of-way  for roads  within a  subdivision. DMLW  would work                                                               
with  the   Alaska  Department   of  Transportation   and  Public                                                               
Facilities (DOT&PF) to  make sure that there would not  be a need                                                               
to come  back at a  later date to  purchase or widen  a right-of-                                                               
way.   DMLW  would   also  work   with  the   boroughs  and   the                                                               
municipalities to  make sure  the width  of the  right-of-way was                                                               
correct for any future land development.                                                                                        
                                                                                                                                
MR.  PARSONS highlighted  that lands  developed within  a borough                                                               
would go  on their tax  rolls for  tax collection. He  added that                                                               
boroughs take responsibility  of the roads once  the State brings                                                               
the roads up to standards.                                                                                                      
                                                                                                                                
CHAIR MICCICHE  apologized and  asked him  pause his  overview so                                                               
Commissioner  Feige would  provide her  opening statement  for SB
204.                                                                                                                            
                                                                                                                                
5:18:17 PM                                                                                                                    
CORRI  A.  FEIGE,  Commissioner,  Alaska  Department  of  Natural                                                               
Resources, Anchorage,  Alaska, stated  that Article 8,  Section 1                                                               
of the  Alaska Constitution states that  it is the policy  of the                                                               
State  to  encourage   the  settlement  of  its   lands  and  the                                                               
development  of  its  resources  by  making  them  available  for                                                               
maximum use consistent with the public interest.                                                                                
                                                                                                                                
She detailed that  SB 204 focuses on state  land availability for                                                               
sale and development to drive  the state's economy. The bill aims                                                               
to  make   more  land  available   to  Alaskans   and  commercial                                                               
activities to directly impact municipal  tax bases, jobs, and the                                                               
state's economic growth.                                                                                                        
                                                                                                                                
COMMISSIONER FEIGE said she believes  SB 204 will increase demand                                                               
for  state  land  parcels.  The   Alaska  Department  of  Natural                                                               
Resources  (DNR)  will meet  increased  demand  by creating  more                                                               
efficient ways for  subdividing and offering state  land for sale                                                               
to increase  the supply  of land  parcels available  for purchase                                                               
and development.                                                                                                                
                                                                                                                                
She stated  that SB 204 would  increase the supply of  state land                                                               
parcels through the following four key actions:                                                                                 
                                                                                                                                
   1. Extension of state platting authority to all state                                                                        
         land managed by DNR to allow for lower cost of                                                                         
       subdivision and faster conversion of state land to                                                                       
     sale-ready parcels.                                                                                                        
   2. An increase in the cap on the land disposal income                                                                        
     fund  from  $5  million   to  $7.5  million  to  offset                                                                    
     inflation,  which has  never been  done since  the fund                                                                    
     came into  existence, and further to  make more funding                                                                    
       available for land subdivision and construction of                                                                       
     access.                                                                                                                    
   3. The bill aims to create a new commercial land use                                                                         
       program that allows the public to nominate parcels                                                                       
     within economic opportunity zones or state determined                                                                      
     commercial development areas.                                                                                              
   4. The bill will repeal the unenforceable management                                                                         
      restrictions on certain state land parcels that have                                                                      
      actually hindered the very activities that they were                                                                      
     originally intended to encourage.                                                                                          
                                                                                                                                
COMMISSIONER  FEIGE summarized  that growing  the economy  of the                                                               
state and building  stronger municipal tax bases  have one common                                                               
denominator and  that is land.  Getting more land  into Alaskans'                                                               
hands,  while   still  protecting   access  for   recreation,  is                                                               
essential for diversifying Alaska's  economy that is less reliant                                                               
upon oil  and gas  jobs for  individual employment  and financial                                                               
security.                                                                                                                       
                                                                                                                                
5:22:22 PM                                                                                                                    
MR. PARSONS  displayed slide 4,  SB 204 - Increase  Land Disposal                                                               
Income Fund Cap, that contains the following information:                                                                       
                                                                                                                                
   • Increase spending authority from the Land Disposal Income                                                                  
     Fund for project.                                                                                                          
                                                                                                                                
   • The cap on the Land Disposal Income Fund is proposed to be                                                                 
     increased  from  $5.0 million  to  $7.5  million to  provide                                                               
     additional  capital  for  the   department  to  develop  and                                                               
     dispose of  state lands  and to  offset inflation  since the                                                               
     fund was established in 2000.                                                                                              
        o $5 million cap has not adjusted in 20 years                                                                           
        o Personnel and Development costs have increased                                                                        
          significantly,   reducing    the   available   "working                                                               
          capital"                                                                                                              
        o Will result in more acreage available for sale and                                                                    
          construction of access.                                                                                               
                                                                                                                                
He detailed that the Land  Disposal Income Fund, enacted in 2000,                                                               
revitalized the  department's land  sale program. The  $5 million                                                               
cap allows the  department to spend up to $5  million on surveys,                                                               
design, appraisal  hiring, road construction, and  other types of                                                               
amenities that are necessary for land sales.                                                                                    
                                                                                                                                
He said costs have increased over  the course of 20 years and the                                                               
department  estimates that  increasing  the cap  to $7.5  million                                                               
takes inflation into  account. He emphasized that the  cap is not                                                               
an  appropriation. The  $7.5 million  cap would  simply authorize                                                               
the  program to  receive the  money and  allow the  department to                                                               
build more access roads to make more land available.                                                                            
                                                                                                                                
5:24:59 PM                                                                                                                    
MR. PARSONS  displayed slide 5, Land  Sales Competitive Programs,                                                               
and discussed the following bullet points:                                                                                      
                                                                                                                                
   • Sealed-Bid Auction Sales                                                                                                   
        o Available to Alaskan residents                                                                                        
        o Online/Paper Bid system during set bidding period                                                                     
   • Over-the-Counter Purchase                                                                                                  
        o Open to the public world-wide throughout the year                                                                     
   • Remote Recreational Cabin Sites                                                                                            
        o Stake it yourself program                                                                                             
        o Lease to sale conversion                                                                                              
                                                                                                                                
He  said  the  sealed-bid  auction is  the  department's  initial                                                               
offering of land  that is only open to Alaskans.  Parcels that do                                                               
not sell go into the over-the counter purchase program.                                                                         
                                                                                                                                
MR. PARSONS  said the Remote  Recreational Cabin  Staking Program                                                               
is very  popular. In an identified  area, people can stake  up to                                                               
20 acres, clear the land, and  start to build a cabin while under                                                               
lease.  After a  period of  time the  program converts  the lease                                                               
into a sale. This land is typically more remote.                                                                                
                                                                                                                                
He  clarified  that  the  land sales  program  does  not  include                                                               
agriculture.                                                                                                                    
                                                                                                                                
MR.  PARSONS  displayed  slide  6,   SB  204  -  Additional  Sale                                                               
Authorities, and discussed the following bullet points:                                                                         
                                                                                                                                
   • Provides for ease of Land Sales purchase contracts                                                                         
        o Modifies     auction     requirements    for     easier                                                               
          administration of land offerings                                                                                      
             square4 Allows for more modern sale options, including                                                             
               online auctions                                                                                                  
        o Increase max contract term to 30 years                                                                                
             square4 Currently capped at 20 years                                                                               
             square4 Allows for longer financing of higher value                                                                
               parcels                                                                                                          
                                                                                                                                
He explained  that the department  would like to change  the ways                                                               
it offers,  contracts, and  finances land.  Currently DNR  is not                                                               
able to  offer online land  auctions like an eBay.  The requested                                                               
changes  to the  program include  extending the  maximum contract                                                               
length from  20 years to  30 years. Extending the  payment period                                                               
would open lands up for more Alaskans to participate.                                                                           
                                                                                                                                
5:27:31 PM                                                                                                                    
MR.  PARSONS displayed  slide 7,  SB  204 -  Commercial Use  Land                                                               
Sales, and discussed the following points:                                                                                      
                                                                                                                                
   • This new statute governing the leasing and sale of state                                                                   
     lands deemed suitable for commercial development, within                                                                   
     Qualified Opportunity Zones or in state determined                                                                         
     commercial development areas.                                                                                              
        o Land can be nominated by the public                                                                                   
        o Leasing option to complete requirements for sale and                                                                  
          allow immediate commercial activity                                                                                   
        o After conclusion of the lease requirements a sale will                                                                
          occur                                                                                                                 
        o Individuals have requested a program to allow for such                                                                
          sales                                                                                                                 
        o The   number   of   acres   identified   for   proposed                                                               
          development will be significant and the number of                                                                     
          acres conveyed will depend on the proposals received                                                                  
                                                                                                                                
He  explained  that  individuals  who had  ideas  about  creating                                                               
remote lodges  for hunting or  eco-tourism fostered the  idea for                                                               
the  commercial land  sale program.  The idea  is to  develop the                                                               
program in Qualified Opportunity Zones  designated by the IRS for                                                               
economically depressed areas.                                                                                                   
                                                                                                                                
MR.  PARSONS  detailed that  an  individual  or the  State  could                                                               
identify  a 5  to 20-acre  parcel and  submit a  development plan                                                               
that  describes   structures,  the  workforce,  and   the  skills                                                               
required   to  develop   the  project.   The  participant   would                                                               
ultimately pay for surveying and appraisal costs.                                                                               
                                                                                                                                
He said program  participants would receive a  five-year lease to                                                               
show the  land is  being developed according  to plan.  The State                                                               
would convert the  lease to a sale if the  participant is meeting                                                               
their   plan   requirements.   Initial  leasing   prevents   land                                                               
speculation.  The  department's intent  with  the  program is  to                                                               
create economic diversity.                                                                                                      
                                                                                                                                
5:29:44 PM                                                                                                                    
MR. PARSONS  displayed slide 8,  SB 204 - Repeal  of Recreational                                                               
Rivers Statutes, and discussed the following points:                                                                            
                                                                                                                                
   • The bill repeals statutes relating to the designation of                                                                   
     certain rivers in southcentral Alaska as recreation rivers,                                                                
     in order to allow for more effective management of state                                                                   
     land.                                                                                                                      
        o Reduction of current limitations on land management                                                                   
        o Repeal will end unenforceable management issues and                                                                   
          restrictions on recreational and commercial use on                                                                    
          over 260,000 acres                                                                                                    
             square4 Provides for generally allowed uses                                                                        
             square4 Allows expansion of Land Use opportunities                                                                 
        o May increase acreage available for inclusion in the                                                                   
          Land Sales program or new commercial development                                                                      
          program                                                                                                               
                                                                                                                                
MR. PARSONS  detailed that the  Susitna Recreational  Rivers Plan                                                               
and  accompanying  statutes set  aside  lands  in the  1980s  and                                                               
'90sfor  access along  certain riverways  like  Kroto Creek,  the                                                               
Deshka  River,  and  the  Little   Susitna  River.  However,  the                                                               
statutory  stipulations within  the  plan  are unenforceable  and                                                               
restrictive for commercial recreation development.                                                                              
                                                                                                                                
He  said the  notion of  repealing the  recreational plan  raised                                                               
concerns about  access. The  department would have  to do  a plan                                                               
amendment for  reclassifying lands contained within  the area and                                                               
initiate a public process to address concerns.                                                                                  
                                                                                                                                
SENATOR KIEHL  said he had  questions for the department  that he                                                               
would hold for the next hearing due to time constraints.                                                                        
                                                                                                                                
CHAIR MICCICHE suggested the members  submit any questions to his                                                               
office and he  would forward them to the department  so they will                                                               
be prepared  to answer them  at the  next hearing. He  noted that                                                               
the sectional analysis would not be heard today.                                                                                
                                                                                                                                
5:33:38 PM                                                                                                                    
CHAIR   MICCICHE   held  SB   204   in   committee  for   further                                                               
consideration.                                                                                                                  
                                                                                                                                
5:34:12 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Micciche adjourned the  Senate Resources Standing Committee                                                               
meeting at 5:34 p.m.                                                                                                            

Document Name Date/Time Subjects
SB 217 DNR Land Sales Averages 3.06.20.pdf SRES 3/18/2020 3:30:00 PM
SB 217
SB 217 DOR Presentation 03.18.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 217
SB 217 DRAFT Land Voucher layout (2).PDF SRES 3/18/2020 3:30:00 PM
SB 217
SB 217 Draft Amendment v. A.1.pdf SRES 3/18/2020 3:30:00 PM
SB 217
SB 204 v. A.PDF SRES 3/18/2020 3:30:00 PM
SB 204
SB 204 Sponsor Statement 2.25.20.pdf SRES 3/18/2020 3:30:00 PM
SB 204
SB 204 Sectional Analysis 2.25.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 204
SB 204 Fiscal Note DOT-COM 02.18.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 204
SB 204 Fiscal Note DNR-MLW 02.18.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 204
SB 204 DNR Presentation 03.18.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 204
SB 189 ADF&G Followup answers to committee questions.pdf SRES 3/9/2020 3:30:00 PM
SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Support Document - Stocking FAQ 02.29.2020.pdf SRES 3/9/2020 3:30:00 PM
SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Support Document - ADFG Response 3.4.20.pdf SRES 3/9/2020 3:30:00 PM
SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Support Document - Surcharge Revenue Breakdown revised- 03.04.2020.pdf SRES 3/9/2020 3:30:00 PM
SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Draft Amendment A.2.pdf SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Draft Amendment A.3.pdf SRES 3/18/2020 3:30:00 PM
SB 189
SB 189 Written Testimony SEAGO 03.18.2020.pdf SRES 3/18/2020 3:30:00 PM
SB 189
SB 217 Draft amendment A.2.pdf SRES 3/18/2020 3:30:00 PM
SB 217
SB 189 Conceptual Amendment #1 to amendment #2 A.3.docx SRES 3/18/2020 3:30:00 PM
SB 189