Legislature(1999 - 2000)
04/05/2000 03:20 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE RESOURCES COMMITTEE
April 5, 2000
3:20 p.m.
MEMBERS PRESENT
Senator Rick Halford, Chairman
nator Robin Taylor, Vice Chairman
Senator Pete Kelly
Senator Lyda Green
Senator Sean Parnell
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Jerry Mackie
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 235(TRA)
"An Act authorizing the exchange of land between the Alaska
Railroad Corporation and Eklutna, Inc., between the Alaska Railroad
Corporation and the United States Department of the Army and the
United States Department of the Air Force, between the Alaska
Railroad Corporation and Chugach Alaska Corporation, and between
the Alaska Railroad Corporation and the Municipality of Anchorage;
authorizing the transfer of land between Alaska Railroad mileposts
133 and 134 from the Alaska Railroad Corporation to certain named
individuals; and providing for an effective date."
-MOVED CSSB 235(TRA) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 344(FIN)
"An Act authorizing a land exchange between the Department of
Natural Resources and Alaska Hardrock, Inc.; approving a long-term
lease of certain Alaska Railroad Corporation land at Healy; and
providing for an effective date."
-MOVED CSHB 344(FIN) OUT OF COMMITTEE
SENATE CONCURRENT RESOLUTION NO. 3
Relating to the sovereignty of the State of Alaska and the
sovereign right of the State of Alaska to manage the natural
resources of Alaska.
-MOVED SCR 3 OUT OF COMMITTEE
PREVIOUS SENATE COMMITTEE ACTION
SB 235 - See Transportation minutes dated 3/2/00.
HB 344 - No previous action.
SCR 3 - No previous action.
WITNESS REGISTER
Mr. Dale Bondurant
31864 Moonshine Drive
Soldotna, AK 99669
POSITION STATEMENT: Supports SCR 3
Ms. Whitney Highland
Staff to Senator Leman
Alaska State Capitol
Juneau, AK 99801
POSITION STATEMENT: Testified for the sponsor of SB 235
Ms. Carol Carroll, Director
Division of Support Services
Department of Natural Resources
400 Willoughby Ave.
Juneau, AK 99801-1724
POSITION STATEMENT: Answered questions regarding HB 344
Mr. Charlie Green
Usibelli Coal
100 Cushman St., Suite 210
Fairbanks, AK 99701
POSITION STATEMENT: Answered questions regarding HB 344
Mr. Charlie Boddy
Government Relations
Usibelli Coal
100 Cushman St.
Fairbanks, AK 99701
POSITION STATEMENT: Answered questions regarding HB 344
ACTION NARRATIVE
TAPE 00-19, SIDE A
Number 001
CHAIRMAN HALFORD called the Senate Resources Committee meeting to
order at 3:20 p.m. Present at the call to order were Senators Pete
Kelly, Taylor, Green, Parnell, Lincoln and Chairman Halford. The
first order of business to come before the committee was SCR 3.
SCR 3-SOVEREIGNTY OF THE STATE; RESOURCES
SENATOR TAYLOR, sponsor of SCR 3, explained that SCR 3 addresses
where Alaska stands in regard to the federal mandate over fish and
game management on federal lands in Alaska. At present, the
Alaska Department of Fish and Game (ADFG) is negotiating with
federal agencies about fish and game management in rivers. Senator
Taylor said he believes the ADFG negotiations completely violate
the Governor's comment that no Governor should ever barter away the
state's sovereign right to manage its lands, waters and resources.
The federal government is violating the Tenth Amendment and
attempting to treat Alaskans as second class citizens. It is also
violating the 14th Amendment and about 11 different provisions of
the Alaska Constitution according to two different court cases; the
Totemoff case and the McDowell case. SCR 3 tells Congress it has
made a mistake and asks it to remove the federal mandate and to
support the Governor's efforts to overturn the Katie John case.
MR. DALE BONDURANT, representing himself, stated support for SCR 3.
He recounted a discussion between Senator Stevens and Mr. Mitchell
at a Congressional hearing in 1978 in which Senator Stevens said,
It's another thing to give the Secretary of Interior veto
rights and on the pretext of saying that subsistence
provisions in Alaska law are not adaptable to protect the
Alaska Natives and give them the right to give back to the
Department of Interior the overriding controls of fish and
game on federal lands in Alaska. It violates the intent of
the statute that would deny the states the [inaudible] and, in
violation of what I consider to be inherent constitutional
rights, of the State to equality. We are an equal partner in
the Union and we are not to be treated that way. Now, if we
want to go into some cooperative management program where the
federal government participates in it and if it appoints the
joint board that's one thing, but to leave veto powers and the
right to preempt the state is wrong.
Mr. Mitchell responded,
The federal government has an interest out there. They can
enforce, and all we do with oversight provision - I can't
expect the Senator to respectfully disagree with me - is to
force the Secretary of the Interior to do something positive
for a change. He's got that last right.
Senator Stevens then said,
He does not have it today. The [inaudible] Act does not give
him the right. He has the right to post an area for hunting
but he does not have a right to take away from the state the
right to manage hunting. Now, under this bill, he would be
entitled again, under the pretext that the state subsistence
provision for Natives was not sufficient and to take over the
entire management on federal lands, military posts, BLM, park
lands, fish and wildlife lands, under the pretext of one
incident, he could take back the whole thing.
MR. BONDURANT stated it is time for Alaska to stand up and say it
has a sovereign right like any other state.
There being no one else wishing to testify on SCR 3, SENATOR TAYLOR
moved SCR 3 from committee with individual recommendations. There
being no objection, the motion carried.
SB 235-APPROVING LAND TRANSFERS FOR RAILROAD
SENATOR LOREN LEMAN, sponsor of SB 235, explained that the measure
deals with land transfers among the Alaska Railroad Corporation
(ARRC), the U.S. Army, the U.S. Air Force, the Municipality of
Anchorage (MOA), and Eklutna, Inc. He asked Ms. Highland to
present the sponsor statement and answer questions.
MS. WHITNEY HIGHLAND, an intern to Senator Leman, read the
following statement.
SB 235 authorizes the ARRC to enter into several land exchange
and transfer agreements needed for a track upgrade and
realignment project. This bill approves exchanges of railroad
land for certain parcels held by five landholders who are the
Army, the Air Force, Eklutna, Inc., Chugach Alaska
Corporation, and the Municipality of Anchorage (MOA). SB 235
also approves the conveyances of 5.1 acres to certain private
landowners in Chugiak who live adjacent to railroad right-of-
way. It is federal law that abandoned railroad land will be
reverted back to the federal government after 18 years. The
federal government would then deed the land out to the adjacent
landowners. SB 235 thus accelerates a land transfer that is
already required to occur under federal law. The exchanges and
transfers will allow the railroad's track realignment project
between Anchorage and Wasilla to proceed and will also allow the
Department of Transportation and Public Facilities to relocate a
portion of the Seward Highway just north of Seward. Upgrading and
realigning the track will increase safety and efficiency. A
straighter track is safer due to reduced track and equipment wear,
consistency in train handling, increased sight distance, and
reduced maintenance requirements.
Another benefit of this project is that the running time
between Anchorage and Wasilla will be decreased from 95
minutes to less than 55 minutes, making commuter service a
more viable option. This would also mean a potential
reduction in the traffic growth and impact on the Glenn and
Parks Highway. Most importantly for the communities
neighboring the railroad, this project includes upgrades to
vehicle crossings and public access amenities that will
enhance safety and access across the tracks.
The railroad plans an investment of between $45 and $60
million for its first phase of improvements and these funds
will come from federal transportation grants as well as the
Alaska Railroad's operating revenues. No general funds will
be used for this project. This project is supported by a
number of organizations including the Alaska Visitors'
Association, the Alaska Chamber of Commerce, Chugiak-Eagle
River Chamber of Commerce, Palmer Chamber of Commerce, Wasilla
Chamber of Commerce, Anchorage Economic Development
Corporation, Matanuska-Susitna Convention and Visitors'
Bureau, Anchorage Convention and Visitors' Bureau, and the
City of Wasilla.
CHAIRMAN HALFORD noted that, being a member of the Transportation
Committee, he has reviewed this legislation and therefore has no
questions.
Number 879
SENATOR LINCOLN asked if anyone else would be testifying on SB 235.
CHAIRMAN HALFORD said no one else signed up but that
representatives of ARRC are available to answer questions. He
noted a House hearing is being held on the same topic.
SENATOR LINCOLN asked whether the realignment will have any effect
on the Coastal Trail.
MS. HIGHLAND responded that Senator Leman is aware of that issue
which is very distinct and separate from SB 235.
CHAIRMAN HALFORD asked if SB 235 will have no impact on the Coastal
Trail.
MS. HIGHLAND said that is correct.
SENATOR PARNELL moved SB 235 from committee with individual
recommendations and accompanying fiscal notes. Without objection,
the motion carried.
HB 344-HARDROCK LAND EXCHANGE/HEALY RR LEASE
CHAIRMAN HALFORD announced that a Senate version of HB 344 has been
discussed by the Committee. The House amended HB 344, which was
similar to the Senate bill, and added the Alaska Railroad
Corporation (ARRC) land in Healy.
MS. CAROL CARROLL, Director of the Division of Support Services of
the Department of Natural Resources (DNR), explained that the
intent of the House amendment is to fix a problem the community of
Healy has with leased land. It allows ARRC to extend the lease so
that community members can get mortgages on homes on that land.
Number 1070
SENATOR GREEN asked if that subdivision is already established.
MS. CARROLL said it is.
MR. CHARLIE GREEN, representing Usibelli Coal, concurred with Ms.
Carroll's statement and explained that the original lease with the
ARRC, when it was under federal management, was for 55 years.
About 25 years have passed. The subdivision homeowners are buying
and building homes on subleased land. Most banks require a minimum
10 year cushion on mortgages on leased land. At this time, two
families have moved from the subdivision and are unable to sell
their homes because of the duration of the lease. Additionally, a
number of houses in the subdivision are available for rent
primarily because the owners have been unable to sell them. HB 344
will give legislative approval for an extension of the lease. It
does not require language to be placed in statute giving ARRC
unilateral approval to terminate the lease. In addition, the owner
will not be able to unilaterally terminate the lease, as banks
would not give mortgages in that case. The subdivision is in the
heart of the community of Healy. It contains about 120 residences,
as well as the community center and volunteer fire department.
CHAIRMAN HALFORD asked if the benefit of this extension and any
value that is accrued will go to the subleasees.
MR. GREEN replied that it would certainly be a benefit because
subleases could be extended, satisfying requirements of bankers and
other lenders.
CHAIRMAN HALFORD asked if a profit is being made by anyone in this
process.
MR. GREEN answered, "No, this is definitely a non-profit
enterprise." He explained the ARRC lease held by Usibelli Coal
requires that Usibelli sublease to homeowners and commercial
businesses that locate within the subdivision. Usibelli is only
allowed to recover its original development fees and the rent it
pays to ARRC, which is calculated on a per acre basis. From
Usibelli's perspective, it is a non-profit project.
SENATOR TAYLOR asked why ARRC does not sell the homeowners the land
instead of continuing to lease.
CHARLIE BODDY, Vice President of Government Relations with Usibelli
Coal, explained that Usibelli has been working with the Denali
Borough, ARRC, and the homeowners to find a better solution.
Usibelli considers CSHB 344(FIN) to be an interim, stop-gap measure
to allow people who want to sell and build homes to be freed up
from the current problem. The parties involved anticipate that
within the next year they will find a way to get that land into
private hands. Usibelli got involved in developing the subdivision
because it had the equipment needed to lay out the entire
subdivision and lay a trunk line. It then moved all of the "folks"
out of the Usibelli and Sun Trana mining communities into this new
area however it was never Usibelli's intention to be a landlord.
With the creation of the Borough, he believes private ownership can
be achieved.
SENATOR GREEN moved CSHB 344(FIN) from committee with individual
recommendations. There being no objection, the motion carried.
There being no further business to come before the Committee,
CHAIRMAN HALFORD adjourned the meeting at 3:45 p.m.
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