Legislature(2023 - 2024)BELTZ 105 (TSBldg)

02/01/2024 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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Audio Topic
01:30:55 PM Start
01:31:52 PM SB161
01:49:53 PM SJR13
02:14:42 PM Presentation(s): Alaska Broadband Update
02:46:59 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 161 TAX EXEMPTION FOR FARM USE LAND TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Presentation: Alaska Broadband Office Update TELECONFERENCED
*+ SJR 13 AMEND ALASKA NATIVE CLAIMS SETTLEMENT ACT TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        SJR 13-AMEND ALASKA NATIVE CLAIMS SETTLEMENT ACT                                                                    
                                                                                                                                
1:49:53 PM                                                                                                                    
CHAIR   DUNBAR  reconvened   the   meeting   and  announced   the                                                               
consideration of  SENATE JOINT RESOLUTION NO.  13 Encouraging the                                                               
United States Congress and the  President of the United States to                                                               
pass  and  sign legislation  amending  the  Alaska Native  Claims                                                               
Settlement  Act to  release certain  land held  in trust  back to                                                               
affected Alaska Native village corporations.                                                                                    
                                                                                                                                
1:50:23 PM                                                                                                                    
ARIELLE  WIGGIN,  Staff,  Senator Forrest  Dunbar,  Alaska  State                                                               
Legislature, Juneau, Alaska,  introduced SJR 13 on  behalf of the                                                               
sponsor,  stating  this  resolution  recognizes  a  long-standing                                                               
issue and challenge for many  communities across Alaska. With the                                                               
passage  of  the Alaska  Native  Claims  Settlement Act  (ANCSA),                                                               
several villages conveyed land to the  State to be held in trust.                                                               
The expectation was that those  lands would revert to villages as                                                               
they  organized and  assumed  the  responsibilities of  municipal                                                               
governments. The  State continues to  hold these lands  in trust,                                                               
and it  has affected the  ability of certain regions  to develop.                                                               
Federal action  is needed, and Alaska's  congressional delegation                                                               
has proposed legislation  to address this issue.  SJR 13 supports                                                               
this  legislation.  She said  that  the  invited testifiers  will                                                               
provide more details on ANCSA and the federal legislation.                                                                      
                                                                                                                                
1:51:47 PM                                                                                                                    
CHAIR DUNBAR announced Mr. Mallot as an invited testifier.                                                                      
                                                                                                                                
1:52:08 PM                                                                                                                    
BEN MALLOT,  Vice President, External Affairs,  Alaska Federation                                                               
of  Natives (AFN),  Anchorage, Alaska,  gave a  brief history  of                                                               
AFN.  He said  AFN membership  includes 179  federally recognized                                                               
tribes,  154 village  corporations,  nine regional  corporations,                                                               
and ten regional nonprofits. He said AFN supports SJR 13.                                                                       
                                                                                                                                
MR.  MALLOT  said that  sec.  14(c)(3)  of ANCSA  required  every                                                               
Alaska  Native village  corporation to  convey a  portion of  the                                                               
lands  it received  in case  a  municipality or  city was  formed                                                               
around its community. He believed  that only eight ANCSA villages                                                               
have been approved for municipalities.                                                                                          
                                                                                                                                
MR. MALLOT  said that AFN  passed resolution 23-17 in  2023. This                                                               
resolution  urges federal  action  to sunset  the ANCSA  14(c)(3)                                                               
provision and restore Alaska Native  Corporation (ANC) lands that                                                               
the State  holds in  the Municipal Land  Trust (MLT)  program. He                                                               
emphasized that  SJR 13 has  enormous support from  179 federally                                                               
recognized  tribes,  154   village  corporations,  nine  regional                                                               
corporations, and ten regional nonprofits.                                                                                      
                                                                                                                                
1:54:22 PM                                                                                                                    
MR.  MALLOT said  Congress introduced  two  bills this  Congress:                                                               
S.2615 and  H.R.6489, titled the Alaska  Native Village Municipal                                                               
Lands Restoration  Act of 2023.  He said these pieces  of federal                                                               
legislation  essentially  sunset  the  ANCSA  14(c)(3)  provision                                                               
enacted over 50 years ago.  He expressed appreciation that SJR 13                                                               
encourages   passage  of   this  federal   legislation  and   the                                                               
restoration of land back to Alaska Native Corporations (ANCs).                                                                  
                                                                                                                                
MR. MALLOT said  MLT managed lands has created  problems for many                                                               
ANCs  as the  it has  been  underfunded and  overtasked for  many                                                               
years. He  said that AFN  believes that restoring MLT  held lands                                                               
would allow communities  to make informed decisions  about how to                                                               
best utilize their lands and resources.                                                                                         
                                                                                                                                
MR.   MALLOT  said   that  AFN   has  supported   this  type   of                                                               
congressional  legislation  for  many sessions.  He  thanked  the                                                               
chair  and the  governor for  supporting the  restoration of  ANC                                                               
lands. The  collaboration between the Native  communities and the                                                               
State  demonstrates to  Congress  that all  parties are  aligned.                                                               
This was a major hurdle to overcome and a step forward.                                                                         
                                                                                                                                
1:58:01 PM                                                                                                                    
SENATOR  OLSON  asked  if any  Native  village  corporations  are                                                               
opposed to SJR 13.                                                                                                              
                                                                                                                                
MR. MALLOT replied  that he has not heard of  any that oppose the                                                               
sunset of  ANCSA 14(c)(3).  He pointed out  that AFN  passed this                                                               
resolution unanimously at its convention.                                                                                       
                                                                                                                                
1:58:51 PM                                                                                                                    
SENATOR OLSON asked whether any  cities that surround these lands                                                               
are in opposition.                                                                                                              
                                                                                                                                
MR. MALLOT replied there have  been concerns surrounding conveyed                                                               
lands that are now cities. He  expressed his belief that the work                                                               
of AFN  and the  Alaska delegation to  sunset the  ANCSA 14(c)(3)                                                               
provision and  restore lands  held by  MLT is  the first  step in                                                               
addressing how to make these  communities whole. A provision asks                                                               
for  a resolution  from the  community, usually  the village,  so                                                               
both the  village and tribe  have opportunities to  determine the                                                               
best use  for the land. There  are many details to  consider, and                                                               
further  steps may  be needed  to fully  address the  concerns of                                                               
communities that have already conveyed their land.                                                                              
                                                                                                                                
2:00:28 PM                                                                                                                    
GREGG  RENKES,  Senior   Vice  President,  Government  Relations,                                                               
Chenega Corporation, Washington,  D.C., gave a brief  over of the                                                               
Chenega Corporation,  stating he  serves as  an alternate  on the                                                               
Board  of Directors  for the  Alaska  Native Village  Corporation                                                               
Association   (ANVCA).   ANVCA   and   its   176-member   village                                                               
corporations   uniformly   support  this   legislation.   Chenega                                                               
Corporation is an Alaska Native  village corporation formed under                                                               
the Alaska Native Claims Settlement  Act (ANCSA). Chenega village                                                               
is  located on  Evans Island  in Prince  William Sound,  about 65                                                               
miles from Whittier.                                                                                                            
                                                                                                                                
MR. RENKES stated  that U.S. Senators Murkowski  and Sullivan and                                                               
U.S. Representative  Peltola introduced legislation  in Congress.                                                               
This  legislation  garnered  the  support of  the  governor,  the                                                               
Alaska  Federation  of Natives,  and  the  Alaska Native  Village                                                               
Corporation Association. He said  that the legislature's support,                                                               
embodied  in  the  passage  of  SJR  13,  will  help  boost  this                                                               
important federal legislation over the goal line.                                                                               
                                                                                                                                
MR.  RENKES   gave  a   brief  update  on   the  status   of  the                                                               
congressional  legislation.  He  stated  that  the  Senate  bill,                                                               
S. 2615,  had a  hearing and  was favorably  reported out  of the                                                               
Senate Committee on Energy and  Natural Resources on December 14.                                                               
The House bill  still needs to attract the interest  of the House                                                               
Natural  Resources  Committee and  receive  a  hearing date.  The                                                               
Alaska  legislatures  support  and governors   support of  SJR 13                                                               
will  help Alaska's  congressional delegation  push this  process                                                               
along. He said the hope is  to see federal legislation become law                                                               
by the end of the 118th Congress.                                                                                               
                                                                                                                                
2:02:38 PM                                                                                                                    
MR. RENKES  said that the  federal legislation addresses  a loose                                                               
end  left behind  by  ANCSA.  He stated  that  no legislation  is                                                               
perfect, and ANCSA  has been amended many times over  the last 50                                                               
years to improve its impact  and address unintended consequences.                                                               
This is one  of those cases where unintended  consequences of the                                                               
Act,  only  visible  with  the   passage  of  time,  need  to  be                                                               
addressed.  Section  14(c)(3)  of  ANCSA  required  every  Native                                                               
village corporation  formed under  the Act to  turn a  portion of                                                               
the lands it received  over to the State of Alaska  to be held in                                                               
trust for the  eventual creation of a  municipal government. Many                                                               
village corporations,  but less  than half,  turned land  over to                                                               
the  State as  required, and  in a  few cases,  that land  became                                                               
municipal lands when municipalities were formed.                                                                                
                                                                                                                                
MR. RENKES said  that in the vast majority of  villages, the land                                                               
is  still being  managed, in  apparent perpetuity,  by the  State                                                               
Municipal  Land Trust.  Decades after  the passage  of ANCSA  and                                                               
many years after these village  corporations turned over land, no                                                               
municipalities  have been  formed,  and none  are  in sight.  The                                                               
State has administered this federal  program for nearly 50 years,                                                               
and  only eight  ANCSA villages  formed a  new municipality,  the                                                               
last in  1995. The crafters  of ANCSA did not  envision perpetual                                                               
management of these lands in  a State trust; the provision should                                                               
have included  an expiration date, but  it didn't. It is  time to                                                               
return these lands to those  village corporations so they can own                                                               
and manage the  lands for the benefit of  their community members                                                               
and Native shareholders as ANCSA intended.                                                                                      
                                                                                                                                
2:04:25 PM                                                                                                                    
MR.   RENKES   said  that   the   Municipal   Land  Trust   holds                                                               
approximately 11,550 acres. These  acres are nearly impossible to                                                               
develop  due to  restrictions  imposed by  the State's  fiduciary                                                               
responsibility  to a  future, but  yet unknown  municipality. The                                                               
Act requires these lands to be:                                                                                                 
                                                                                                                                
"improved  land on  which the  Native village  is located  and as                                                               
much  additional land  as is  necessary for  community expansion,                                                               
and  appropriate   rights-of-way  for   public  use,   and  other                                                               
foreseeable community needs." (ANSCA 14(c)(3))                                                                                  
                                                                                                                                
MR.  RENKES said  the lands  are  in villages  where housing  and                                                               
other community  infrastructure should be built.  These lands are                                                               
what villages  need to have available,  but they are tied  up and                                                               
largely  blocked  from  Native  community  development.  This  is                                                               
expected   to   continue   in   perpetuity   unless   the   trust                                                               
responsibilities the federal government imposed  on the State are                                                               
eliminated in federal statute.                                                                                                  
                                                                                                                                
2:05:20 PM                                                                                                                    
MR. RENKES  said that once ANCSA  became law, the Bureau  of Land                                                               
Management (BLM)  pushed to settle  ANSCA 14(c)(3). In  the early                                                               
1980s,  some communities  transferred  deeds in  the momentum  of                                                               
that federal effort to implement  the law. The State received the                                                               
bulk of the land held in trust  during that push. He said that 83                                                               
statewide village communities  still have their lands  tied up in                                                               
the Municipal Land Trust program.                                                                                               
                                                                                                                                
MR. RENKES  said that  some village  corporations defied  the law                                                               
and never  transferred land  to the  Municipal Land  Trust. Other                                                               
than the  early push by  BLM, there was no  enforcement mechanism                                                               
at the State level to  require participation. However, a cloud on                                                               
title remains on  lands held by village  corporations that failed                                                               
to participate.  Any development  use of  this land  requires the                                                               
State's  written   disclaimer  of  interest.  This   extends  the                                                               
negative impact of ANCSA 14(c)(3)  beyond the 83 communities with                                                               
lands held in the Municipal Land Trust.                                                                                         
                                                                                                                                
2:06:32 PM                                                                                                                    
MR.  RENKES  said  that  his   village,  Chenega,  currently  has                                                               
approximately 385 acres  of land within the  Municipal Land Trust                                                               
(MLT). The  State holds  most of  the core  lands in  the Chenega                                                               
village  in  trust.  The  topography   and  wetlands  in  Chenega                                                               
severely limit  available developable  lands, making the  lack of                                                               
developable  land  a  severe  problem.  When  looking  at  future                                                               
development sites,  many buildable  areas fall within  lands held                                                               
by the  State trust. Even the  village cemetery is held  in trust                                                               
by  the   State.  This  undermines   Chenega's  right   to  self-                                                               
determination  and self-governance.  While some  of this  land is                                                               
subject   to  MLT   lease   agreements   to  accommodate   public                                                               
facilities,  these   leases  are   subject  to  fees.   They  are                                                               
cumbersome  to update  or amend  to accommodate  community needs.                                                               
Chenega should control  these settlement lands, not  the State of                                                               
Alaska.  Most  critically,  the   Municipal  Land  Trust  program                                                               
prevents  Chenega from  improving  the  community. Chenega  needs                                                               
housing,  particularly  workforce housing,  economic  opportunity                                                               
for village residents, and jobs.                                                                                                
                                                                                                                                
2:07:41 PM                                                                                                                    
MR. RENKES  said the  Alaska congressional  delegation introduced                                                               
legislation that includes the following elements:                                                                               
                                                                                                                                
•  If a  village corporation  conveyed all  required land  to the                                                               
   State, then the property conveyed to the State in trust                                                                      
   reverts to the village corporation.                                                                                          
                                                                                                                                
•  If a village corporation  conveyed only a portion  of required                                                               
   lands to the State in trust, then those lands revert to the                                                                  
   village corporation, and the village corporation is relieved                                                                 
   of any further requirement to convey the remaining lands.                                                                    
                                                                                                                                
•  If the village corporation has not conveyed lands to the State                                                               
   in trust, the conveyance requirement is eliminated.                                                                          
                                                                                                                                
•  Reversion of the lands to the  village corporations is subject                                                               
   to all valid and existing rights created by the Municipal Land                                                               
   Trust, and the village corporations assume all obligations of                                                                
   the State with regard to those valid existing rights.                                                                        
                                                                                                                                
2:08:32 PM                                                                                                                    
MR.  RENKES concluded  his  comments by  stating  that he  cannot                                                               
express  how important  it  is  to have  State  support for  this                                                               
federal legislation.                                                                                                            
                                                                                                                                
2:09:18 PM                                                                                                                    
CHAIR DUNBAR asked about the  village corporation's plans for the                                                               
land should the federal legislation pass.                                                                                       
                                                                                                                                
2:09:52 PM                                                                                                                    
MR. RENKES gave  a brief history of Chenega  before answering. He                                                               
said  Chenega is  one of  the oldest  villages in  Prince William                                                               
Sound  and was  on the  first Russian  census. The  first Russian                                                               
governor  of Alaska  was Lord  Baranov. He  married a  woman from                                                               
Chenega,  and  she  was  the  initial  first  lady.  He  outlined                                                               
Chenega's rich history:                                                                                                         
                                                                                                                                
•  The village was destroyed  in the 1964 earthquake  by a series                                                               
   of tsunamis that hit the village seconds apart, completely                                                                   
   wiping out the village and killing one-third of the                                                                          
   population.                                                                                                                  
                                                                                                                                
• It took 20 years to repopulate the village.                                                                                   
                                                                                                                                
• By 1984, a village site was selected.                                                                                         
                                                                                                                                
•  By 1987,  some  Department of  Housing  and Urban  Development                                                               
  (HUD) housing was built. People moved back into the village.                                                                  
                                                                                                                                
•  In 1989, the Exxon  Valdez Oil spill completely  decimated the                                                               
   village food source, and people had to leave.                                                                                
                                                                                                                                
• The village had to repopulate again.                                                                                          
                                                                                                                                
2:10:48 PM                                                                                                                    
MR. RENKES said  Chenega has faced adversity  through natural and                                                               
human-made disasters.  Yet, the  village continues  to persevere.                                                               
The people are working hard  to preserve their culture, language,                                                               
and history  and provide economic opportunities  in the community                                                               
so the village can continue repopulating.                                                                                       
                                                                                                                                
MR. RENKES  said that  while the village  has a  platted northern                                                               
subdivision complete with  roads and utilities to  the site, one-                                                               
third of  the land is  owned by  the Municipal Land  Trust (MLT).                                                               
MLT has denied  the village's requests for that  land because the                                                               
State  is holding  it in  trust  for a  future municipality.  The                                                               
village cannot  use the  land for  a private  housing development                                                               
until MLT  conveys it. If the  village obtains the land,  it will                                                               
build  out the  northern  subdivision  with much-needed  housing,                                                               
particularly  workforce housing.  He  explained that  one of  the                                                               
challenges is Chenega's remote location.  It is 65 miles by water                                                               
to the  closest community, Whittier.  This makes it  difficult to                                                               
attract  workers  to  the village  without  providing  them  with                                                               
housing.                                                                                                                        
                                                                                                                                
2:12:01 PM                                                                                                                    
MR. RENKES said that a housing plan  is at the top of the village                                                               
corporation's   list  for   these   lands   should  the   federal                                                               
legislation  pass. Another  important issue  is the  village bulk                                                               
fuel system, which is in dire  need of work. The village wants to                                                               
get fuel down to the dock  to provide boat refueling, which could                                                               
expand  recreational  and  commercial  fishing  opportunities  in                                                               
Prince William Sound.  He explained that by the time  a boat gets                                                               
to Chenega  from Whittier,  it needs fuel  to return.  This would                                                               
provide some  economic opportunity for  the community, but  it is                                                               
not possible  without obtaining the  MLT lands. Housing  and fuel                                                               
infrastructure are  just two projects that  would bring essential                                                               
economic  opportunity. The  village  corporation would  undertake                                                               
these two projects first.                                                                                                       
                                                                                                                                
2:13:16 PM                                                                                                                    
CHAIR DUNBAR held SJR 13 in committee.                                                                                          

Document Name Date/Time Subjects
SB 161 - FN DCCED; Community and Regional Affairs.pdf SCRA 2/1/2024 1:30:00 PM
SB 161
SJR 13 Testimony Delivered 11-8-2023.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
SJR 13 Sponsor Statement.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
SJR 13 Support 2023 AFN Resolution.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
SJR 13 Version A.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
AK GOV Letter re AMLT.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
SJR 13 DCCED_DCRA MLT Presentation to SCRA 2023-04-20.pdf SCRA 2/1/2024 1:30:00 PM
SJR 13
Senate Community & Regional Affairs Alaska Broadband Office Presentation 2.1.2024.pdf SCRA 2/1/2024 1:30:00 PM
Alaska Broadband Office - DCCED