02/03/1997 01:32 PM Senate CRA

           SB 62 CITIES:  PAYMENTS IN LIEU OF TAXES                          
                                                                               
  CHAIRMAN MACKIE  brought SB 62 before the committee as the next              
 order of business.                                                            
                                                                               
  SENATOR   GEORGIANNA LINCOLN , prime sponsor of SB 62, read the              
 following sponsor statement into the record:                                  
                                                                               
 "SB 62 provides the framework for disbursement of a new source of             
 federal funds to some to some Alaska communities.  In the last                
 session of Congress, Senator Stevens was successful in amending the           
 Omnibus Park and Public Lands Management Act of 1996 to make                  
 additional Payment in Lieu of Taxes funding (PILT) available to               
 cities in the unorganized borough.  These communities are now                 
 eligible to receive PILT moneys generated from compensation by the            
 federal government for the acreage of federal lands in their census           
 area.                                                                         
                                                                               
 "The inventory of lands is currently underway in order to determine           
 the level of payment available within each of eleven federal census           
 areas.  The Alaska Department of Community & Regional Affairs has             
 worked with Senator Stevens office on this legislation, and is the            
 entity within the state that will administer the pass through to              
 the eligible communities.  It is the intent of the federal                    
 legislation that these funds be provided to the communities for use           
 for "any governmental purpose."                                               
                                                                               
 "SB 62 provides for annual payments to eligible communities on a              
 per capita basis.  The amount available to the respective                     
 communities for this fiscal year will not be known until the land             
 inventory is completed by the Bureau of Land Management.                      
 Subsequent annual payments will be subject to the amount                      
 appropriated for the program by the federal government each fiscal            
 year.  Under this legislation, payments to the eligible communities           
 will be made by November 1 of the fiscal year in which the money is           
 received by the state."                                                       
                                                                               
 Senator Lincoln noted that Bill Rolfzen and Kim Metcalf-Helmar from           
 the Department of Community & Regional Affairs were present to                
 respond to questions.                                                         
                                                                               
 Number 485                                                                    
                                                                               
  LAMAR COTTEN , Deputy Commissioner, Department of Community &                
 Regional Affairs, voiced the department's support for SB 62.  They            
 believe it will provide assistance to cities in the unorganized               
 borough that currently are not receiving, directly or indirectly,             
 benefits or payments through PILT; that it does comply with the               
 intent of Senator Stevens; and there is no overhead administrative            
 cost to the program.                                                          
                                                                               
 Number 502                                                                    
                                                                               
  SENATOR WILKEN  inquired if there is a like program for federal land         
 within an organized borough.   BILL ROLFZEN , Program Administrator,          
 Department of Community & Regional Affairs, acknowledged that                 
 organized boroughs in the state receive a PILT payment on the same            
 formula as the federal census areas will be receiving their PILT              
 payments.  Responding to question from Chairman Mackie as to                  
 whether this would have any adverse effect, he explained this is a            
 nationwide program, and by adding these federal census areas it               
 will dilute the nationwide pot slightly.                                      
                                                                               
 Number 514                                                                    
                                                                               
  CHAIRMAN MACKIE  asked for the pleasure of the committee on SB 62.           
                                                                               
  SENATOR DONLEY  moved SB 62 and the accompanying fiscal notes be             
 passed out of committee with individual recommendations.  Hearing             
 no objection, it was so ordered.