Legislature(2019 - 2020)BUTROVICH 205
03/18/2020 03:30 PM Senate RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB217 | |
| SB189 | |
| SB204 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 189 | TELECONFERENCED | |
| += | SB 217 | TELECONFERENCED | |
| *+ | SB 204 | TELECONFERENCED | |
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.