SENATE BILL NO. 55 "An Act instructing the commissioner of natural resources to issue a patent for the remaining interest in certain state land to the owner of the agricultural rights to that land." AMY SETIZ, STAFF TO SENATOR TOM WAGONER testified regarding the bill. She noted that the bill was similar to HB 57, giving the Commissioner of the Department of Natural Resource the authority to sell remaining rights to certain state-owned land. The land must be not more than 15 acres and used for agricultural purposes. The State must have originally acquired it through the National Forest under the Alaska Statehood Act, and the owner of the parcel must pay the fair market value for the remaining rights. Ms. Seitz explained that the bill was introduced to resolve an issue involving 15 acres in Hope, Alaska. The Miller family had been given partial agricultural rights to these lands after they lost some of their own property in the earthquake of 1964. She noted some controversy as to whether the family should have been given full rights at that time. She maintained that the language in the bill was the only option available to solve the issue. 2:15:08 PM DICK MYLIUS, DEPUTY DIRECTOR, DIVISION OF MINING LAND AND WATER, DEPARTMENT OF NATURAL RESOURCES testified via teleconference in support of the bill. He stated that in most instances State land was sold in a public process. The exception is with a circumstance of preference rights, allowing DNR to only offer a parcel or an interest to one specific individual, usually someone who already legally occupied the land. In this case the preference rights were granted to allow the remaining land to be purchased by a family who already retained partial rights to the land. Ross Miller had obtained a Forest Service permit in 1955. When the State selected the land, the Millers had a grazing permit and had made improvements upon it. Mr. Mylius noted that the Department decided to only sell the family agricultural rights in 1978/9. In order to purchase the property at this time it required the parcel to be subdivided; this is not allowable under current State law because the parcel is too. Mr. Mylius pointed out that the bill was narrowly focused, due to concern that the bill would apply to other parcels. The language only applies to land in the Chugiak/Tongass Forest of a certain size acquired for agricultural purposes. 2:18:22 PM Representative Stoltze asked whether, other than the parcel desired by the Miller family, other parcels existed that would benefit from this legislation. Mr. Mylius replied that there might be a few parcels in Gustavus that might qualify, but reiterated that it would only apply to the Chugak National Forest. 2:19:45 PM ERICA MILLER, HOPE, ALASKA, testified via teleconference in support of the bill. She stated her belief that the bill would provide good resolution to the land issue. 2:20:26 PM CHUCK GRAHAM, HOPE, ALASKA testified via teleconference in strong support of the bill. Co-Chair Meyer closed public testimony on the bill. 2:21:26 PM Co-Chair Meyer asked for clarification on the indeterminate fiscal note. Mr. Mylius noted that the State would earn some revenue from the sale of the land. The appraised market value of the land is currently unknown. Representative Hawker MOVED to REPORT CS SB55 (FIN) out of Committee with individual recommendations and attached fiscal note. Since there was NO OBJECTION, it was So Ordered.