02/13/1995 08:07 AM House RES

 HRES - 02/13/95                                                               
 HB 79 - MUNICIPAL LAND ERROR CORRECTIONS                                    
                                                                               
 Number 117                                                                    
                                                                               
 REPRESENTATIVE JERRY MACKIE, PRIME SPONSOR, said he introduced HB
 at the request of the city of Skagway to correct a longstanding            
 land ownership problem in Skagway.  Fifty years ago, a dike was               
 constructed along the Skagway River to protect the town from                  
 flooding.  Over the years, the area between the original river bank           
 and the dike has been reclaimed and subdivided by the city with               
 lots sold and built upon.  He noted even the high school is located           
 in the area.                                                                  
                                                                               
 REPRESENTATIVE MACKIE stated the problem is the city did not have             
 clear title to this land from the beginning.  Hence, the title for            
 subsequent private property owners is also clouded.  Not only are             
 the owners' investments and improvements at risk, but bank                    
 financing for further improvements or sales is foreclosed.  He                
 pointed out that in the past several years, the city and DNR have             
 unsuccessfully sought an administrative remedy for the problem.               
 While current statute allows DNR administrative discretion in                 
 resolving land ownership errors and omissions for individual                  
 citizens under AS 38.05.035(b)(2) and (b) (3), there is no similar            
 provision for errors and omissions of a municipality.                         
                                                                               
 REPRESENTATIVE MACKIE explained HB 79 would add such a provision.             
 The new proposed subsection AS 35.05.035(b) (11), allows the                  
 director of the division of lands the discretion to quitclaim land            
 to a municipality to correct past errors and omissions.  The                  
 director may also set any terms or conditions that is deemed                  
 appropriate for the transaction.  He stressed that land title                 
 transferred to a municipality in this manner is counted against the           
 municipality's general land grant entitlement from the state.                 
                                                                               
 REPRESENTATIVE MACKIE stated section 2 provides a January 1, 1998,            
 repeal of AS 35.05.035(b) (11).  Thus, the opportunity to correct             
 municipal land ownership errors is limited to a two and one-half              
 year period.  He noted this bill was introduced in the last                   
 session.  It progressed through the House and Senate until it died            
 in the Senate Rules committee.  He told committee members that in             
 their folders there is a map (may be found in the House Resources             
 Committee Room, Capitol Room 124, and after adjournment of the                
 second session of the 19th Alaska State Legislature, in the                   
 Legislative Reference Library) showing the area being discussed               
 which he reviewed.  He said the property affected always has                  
 clouded title problems.  He mentioned that DNR is very supportive             
 of HB 79.                                                                     
                                                                               
 REPRESENTATIVE BARNES made a MOTION to MOVE HB 79 out of committee,           
 with accompanying fiscal notes, with individual recommendations.              
                                                                               
 CO-CHAIRMAN GREEN asked if there were any objections.  Hearing                
 none, the MOTION PASSED.                                                      
                                                                               
 ADJOURNMENT                                                                   
                                                                               
 There being no further business to come before the House Resources            
 Committee, Co-Chairman Green adjourned the meeting at 9:50 a.m.