04/09/1997 01:38 PM Senate CRA

                                                                               
         SB 98 CONVEY LAND TO MUNICIPALITIES/BOROUGHS                        
                                                                               
                                                                               
  CHAIRMAN MACKIE  brought SB 98 back before the committee.  He said           
 Senator Leman's staff worked on a proposed committee substitute               
 which was before the committee for its consideration.                         
                                                                               
  SENATOR PHILLIPS  moved the adoption of CSSB 98(CRA), version "B."           
 Hearing no objection, it was so ordered.                                      
                                                                               
 Number 065                                                                    
                                                                               
  ANNETTE KREITZER , staff to Senator Leman, explained that at the             
 previous hearing on the legislation there was concern with giving             
 the director additional authority so throughout the committee                 
 substitute the designation has been changed from the director to              
 the commissioner of natural resources.                                        
                                                                               
 At the request of the Fairbanks North Star Borough, the term                  
 "vacant, unappropriated, unreserved land" has been replaced with              
 the term "state land."  The change was requested because the                  
 borough was interested in land that doesn't meet the definition of            
 "vacant, unappropriated, unreserved land."  Also added was a                  
 definition of "isolated land tracts" to help define the request.              
                                                                               
 The words "boroughs and unified" have been deleted throughout the             
 bill because the intent is for the bill to apply to municipalities.           
                                                                               
 Ms. Kreitzer, speaking to the definition of "isolated land tracts,"           
 said the tracts must now be not in a statutorily designated area,             
 and they are not to be selected in fulfillment of the general grant           
 land entitlement under Title 29.  They have to be 640 acres or                
 smaller, and not contiguous to other state land, or they have to be           
 larger than 640 acres and be contiguous to municipal land.                    
                                                                               
 Requirements have been added in the committee substitute that the             
 tracts be conveyed only to a municipality where the general grant             
 land entitlement has bee fulfilled.  Under this program,                      
 municipalities may only receive up to 15 percent more than their              
 general grant land entitlement.                                               
                                                                               
 Number 119                                                                    
                                                                               
  CHAIRMAN MACKIE  asked if the concern raised by the Department of            
 Transportation & Public Facilities relating to airport rights-of-             
 way, as well as a concern by committee members relating to "fair              
 market value" have been addressed in the committee substitute.   MS.          
 KREITZER  replied that it was requested that if DOT has specific              
 concerns that they be conveyed to the sponsor in writing and                  
 explain specifically where the legislation hinders their ability to           
 manage their land, but this has not been received yet.  Relating to           
 the market value question, she said they have not been able to come           
 up with language to address that concern.                                     
                                                                               
 Number 195                                                                    
                                                                               
  GARY GUSTAFSON , Director, Heritage Land Bank, Municipality of               
 Anchorage, testifying from Anchorage, said he has reviewed the                
 committee substitute and believes it is a good attempt to capture             
 concerns that were voiced at the previous hearing on the bill.                
                                                                               
  CHAIRMAN MACKIE  asked Mr. Gustafson for his comments on the fair            
 market value concerns brought up by the committee.   MR. GUSTAFSON            
 replied that the municipality would be responsive to specific                 
 language on fair market value, but he pointed out the bill does               
 include a requirement for a best interest finding, and he suggested           
 that if the Department of Natural Resources decided that there                
 needed to be payment or other kind of evaluation associated with              
 these land transfers, they could make that a condition of the title           
 transfer.                                                                     
                                                                               
 Number 230                                                                    
                                                                               
  JANE ANGVIK , Director, Division of Lands, Department of Natural             
 Resources, testifying from Anchorage, directed attention to page 1,           
 line 6, and said replacing "unified municipalities and boroughs"              
 with "municipalities" would, from a work standpoint, increase the             
 number of municipalities that are eligible from 16 to 44, and there           
 is some concern that this could add to an already significant                 
 backlog with municipal entitlement requests from municipalities               
 that have yet to fulfill their entitlements.                                  
                                                                               
 Ms. Angvik also noted the committee substitute deletes the phrase             
 "vacant, unappropriated, unreserved state land" was deleted, and              
 the concern was that those are the only kinds of land that are                
 currently available for municipal organizations to select from.               
                                                                               
 Ms. Angvik, addressing the requirement that municipalities may only           
 receive up to 15 percent more than their general grant land                   
 entitlement, said the division's concern is that this requirement             
 would set up an expectation on the part of the municipalities that            
 they would be able to automatically get an extra 15 percent over              
 their existing entitlements.  The division would prefer to define             
 the term "isolated land tract" in such a manner that would                    
 specifically describe what it is and delete the reference to the 15           
 percent over selection.  She suggested that the definition for an             
 "isolated land tract" should be "a parcel of vacant,                          
 unappropriated, unreserved state land that is 40 acres or smaller."           
                                                                               
 Number 265                                                                    
                                                                               
  STEVE CYPRA , representing the Matanuska-Susitna Planning Department         
 and testifying from the Mat-Su LIO, voiced their support for SB 98            
 because they believe it will contribute to more efficient land                
 management practices on both the local and state levels.  It is a             
 logical approach to land ownership patterns and an equitable way to           
 solve some persistent problems that their local government has                
 experienced for many years.                                                   
                                                                               
 Number 300                                                                    
                                                                               
  SAM KITO , Legislative Liaison/Special Assistant, Department of              
 Transportation and Public Facilities, stated the department                   
 supports the concerns outlined by Ms. Angvik of the Department of             
 Natural Resources.  He suggested there are mechanisms in place by             
 which land can be transferred to these municipalities should they             
 desire it.                                                                    
                                                                               
 Number 306                                                                    
                                                                               
  CHAIRMAN MACKIE  suggested that Mr. Kito and Ms. Angvik submit their         
 concerns to the sponsor of the legislation and work with his office           
 to see if they can be resolved, and if there was no objection from            
 the committee, moving the bill on to the Resources Committee.  He             
 further suggested to Ms. Kreitzer that the sponsor may want to                
 consider as an option legislation that is just specific to the                
 needs of the Municipality of Anchorage.                                       
                                                                               
  SENATOR WILKEN  moved CSSB 98(CRA) be passed out of committee with           
 individual recommendations.                                                   
                                                                               
 Number 320                                                                    
                                                                               
  SENATOR HOFFMAN  suggested that the work on the legislation should           
 be done in the Community & Regional Affairs Committee because the             
 Resources Committee has a considerable backlog so the bill would              
 have less chance of passage this session.                                     
                                                                               
 After further discussion on the motion to move the bill out of                
 committee and concerns raised by the departments and committee                
 members,  SENATOR WILKEN  withdrew his motion.   CHAIRMAN MACKIE              
 stated the bill would back before the committee at its next                   
 meeting.