Legislature(2019 - 2020)BUTROVICH 205
03/18/2020 03:30 PM Senate RESOURCES
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| 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 | |
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.