05/03/1996 10:15 AM Senate FIN

       CS FOR HOUSE BILL NO. 543(FIN)(title am)                                
       "An Act establishing the procedures  and conditions for                 
  lessees   of   land  leases   at  state   airport   and  air                 
  navigational   facilities,  including  leases   in  holdover                 
  status to receive a      new lease  of the  same land  or an                 
  extended term of the existing      lease;  and  relating  to                 
  the title and ownership, and the sale,  removal,  and  other                 
  disposition, of permanent improvements made  to  a leasehold                 
  under an airport or air navigational facility     lease."                    
                                                                               
  Julie Tauriainen, staff aide to  Representative G. Davis was                 
  invited to join  the committee.   She  briefly reviewed  the                 
  bill.   There are several  different groups  that have  been                 
  working  with  the sponsor  on  this bill,  specifically the                 
                                                                               
                                                                               
  Alaska  Air Carrier's  Association  and  the  Department  of                 
  Transportation.                                                              
                                                                               
  Sam Kito,  III, DOT was invited  to join the  committee.  He                 
  said  there  was  a  good  working relationship  with  House                 
  Transportation and others  on this piece of  legislation and                 
  all are in support of this bill.   Senator Rieger asked that                 
  if there were  an opportunity  to renew a  lease would  that                 
  also  be  at  market value?    Mr.  Kito  said that  in  the                 
  constitution they were  required to offer leases at the fair                 
  market value or  whatever value is  in the best interest  of                 
  the  State.    That  is an  implicit  understanding  in this                 
  legislation which would presumably be fair market value.                     
                                                                               
  Senator  Sharp  moved  CSHB 543(FIN)(title  am)  and without                 
  objection   it    was   reported    out   with    individual                 
  recommendations and zero fiscal note  from the Department of                 
  Transportation.