Legislature(2023 - 2024)BARNES 124

02/23/2024 01:00 PM House RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 177 CRITICAL NATURAL MINERALS PLAN AND REPORT TELECONFERENCED
Moved CSHB 177(RES) Out of Committee
+= HB 281 STATE LAND FOR REMOTE REC CABIN SITES TELECONFERENCED
<Bill Hearing Canceled>
+= HB 296 AGRICULTURAL PRODUCTS/LOANS/SALES TELECONFERENCED
Heard & Held
+ Presentation: Options to Address the Cook Inlet TELECONFERENCED
Gas Shortage by Ed King and Trevor Jepsen, Staff
to Representative McKay
<Above Item Removed from Agenda>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 223 TAX & ROYALTY FOR CERTAIN GAS TELECONFERENCED
Heard & Held
+= HB 282 STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT TELECONFERENCED
Heard & Held
*+ HJR 20 NAT'L PETROLEUM RESERVE IN ALASKA TELECONFERENCED
Moved HJR 20 Out of Committee
-- Public Testimony --
        HB 282-STATE LAND: DISPOSAL/SALE/LEASE/RESTRICT                                                                     
                                                                                                                                
2:14:16 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 282, "An  Act relating to access  roads; relating                                                               
to state land; relating to contracts  for the sale of state land;                                                               
relating  to the  authority of  the Department  of Education  and                                                               
Early  Development to  dispose  of state  land;  relating to  the                                                               
authority  of   the  Department  of  Transportation   and  Public                                                               
Facilities to  dispose of state  land; relating to  the authority                                                               
of the Department  of Natural Resources over  certain state land;                                                               
relating to the state land  disposal income fund; relating to the                                                               
sale  and  lease  of  state   land;  relating  to  covenants  and                                                               
restrictions  on   agricultural  land;   and  providing   for  an                                                               
effective date."                                                                                                                
                                                                                                                                
2:14:48 PM                                                                                                                    
                                                                                                                                
BRENT  GOODRUM,   Deputy  Commissioner,  Department   of  Natural                                                               
Resources  (DNR), presented  opening  remarks for  HB 282,  state                                                               
land disposals.  He explained  the state manages over 100 million                                                               
acres of land  within the state and 65 million  acres of tideland                                                               
belonging to citizens  of the state of Alaska.   This legislation                                                               
[HB  282] would  serve to  cut red  tape; create  flexibility and                                                               
responsiveness  within  state  departments; and  open  additional                                                               
opportunities for  everyday Alaskans.  The  bill would streamline                                                               
land  transfer functions  from  the state  that  would allow  the                                                               
Department  of  Transportation  and  Public  Facilities  and  the                                                               
Department  of  Education  and   Early  Development  to  directly                                                               
transfer lands  no longer needed  for their original  purposes to                                                               
private parties.   The  bill would also  work to  create flexible                                                               
leasing requirements;  incorporate adaptable road  standards; and                                                               
provide necessary financial support  for the development of state                                                               
lands  in preparation  for sales  to Alaskans.   The  legislation                                                               
would also help facilitate commercial  sales by introducing a new                                                               
statute  for land  leasing and  sales and  would enable  expanded                                                               
agricultural use to  be inclusive of land activities  such as bed                                                               
and breakfasts  to offset agricultural  costs.  The  result opens                                                               
lands for the use of everyday Alaskans.                                                                                         
                                                                                                                                
2:17:15 PM                                                                                                                    
                                                                                                                                
CHRISTY COLLES,  Director, Division  of Mining, Land,  and Water,                                                               
Alaska  Department  of  Natural   Resources,  on  behalf  of  the                                                               
sponsor,  House  Rules  by  request   of  the  governor,  gave  a                                                               
PowerPoint   presentation,    titled   "HB   282    State   Land:                                                               
Disposal/Sale/Lease/Restrict,"   [hardcopy    included   in   the                                                               
committee  packet].   She presented  slide  1, "Overview,"  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     •  Authorize  the  Department   of  Education  &  Early                                                                    
     Development    (DEED)    and    the    Department    of                                                                    
     Transportation   &   Public  Facilities   (DOT&PF)   to                                                                    
     directly   dispose  of   surface   land,  rather   than                                                                    
     transferring   land  to   the  Department   of  Natural                                                                    
     Resources (DNR) for conveyance                                                                                             
                                                                                                                                
     • Increase  the cap  on the  Land Disposal  Income Fund                                                                    
     (LDIF)                                                                                                                     
                                                                                                                                
     • Update and improve  provisions relating to DNR's land                                                                    
     disposal procedures in AS 19.30, AS 38.04, AS 38.05                                                                        
                                                                                                                                
     • Amends agricultural use restrictions                                                                                     
                                                                                                                                
     • Add  a new  statute relating to  leases and  sales of                                                                    
     land for commercial development                                                                                            
                                                                                                                                
MS. COLLES  moved to slide  2, "Authority for Direct  Disposal of                                                               
State  Land,"   which  read  as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     •   Proposed  amendments   allow   the  Department   of                                                                    
     Education   and   Early    Development   (amending   AS                                                                    
     14.07.030)  and Department  of Transportation  & Public                                                                    
     Facilities  (amending   AS  35.20.070)  to   sell  land                                                                    
     directly to private parties                                                                                                
                                                                                                                                
        Streamlining land  disposals, reducing  multi-agency                                                                    
     involvement                                                                                                                
                                                                                                                                
      Expanding eligible recipients beyond federal, state                                                                       
     agencies, and political subdivisions                                                                                       
                                                                                                                                
MS. COLLES  said the amendments  would streamline  the conveyance                                                               
of  land by  removing a  duplicative multi-agency  process.   Two                                                               
recent  examples  where the  Department  of  Education and  Early                                                               
Development (DEED)  has transferred  title to DNR  for conveyance                                                               
to a third party are Japonski  Island in Sitka and Telephone Hill                                                               
in  Juneau.   Public notices  and other  regulations would  still                                                               
apply to such conveyances.                                                                                                      
                                                                                                                                
2:19:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS questioned  what  mechanisms  DEED and  the                                                               
Department  of Transportation  & Public  Facilities (DOT&PF)  use                                                               
for taking over and selling land.                                                                                               
                                                                                                                                
MS. COLLES pointed  out that the lands in question  would be very                                                               
specific.    She  deferred  to  Lori Weed  of  DEED  and  Heather                                                               
O'Claray of DOT&PF for additional information.                                                                                  
                                                                                                                                
2:20:40 PM                                                                                                                    
                                                                                                                                
HEATHER  O'CLARAY,  Chief,  State   Right  of  Way,  Division  of                                                               
Statewide   Design  and   Engineering  Services,   Department  of                                                               
Transportation &  Public Facilities, responded  to Representative                                                               
Mears' question  by briefly describing the  department's existing                                                               
authority  for disposing  of properties,  specifically facilities                                                               
properties.                                                                                                                     
                                                                                                                                
REPRESENTATIVE MEARS  questioned whether  a separate  fiscal note                                                               
was needed rather than a line item in the bill's fiscal note.                                                                   
                                                                                                                                
MS.  O'CLARAY  explained  that   currently  DOT&PF  has  existing                                                               
regulations, and this falls withing their purview.                                                                              
                                                                                                                                
2:22:46 PM                                                                                                                    
                                                                                                                                
LORI  WEED,   Acting  Facilities  Manager,  School   Finance  and                                                               
Facilities   Section,   Department   of   Education   and   Early                                                               
Development,  explained  that  DEED  has  existing  authority  to                                                               
dispose of land  parcels to certain entities;  the department has                                                               
someone on staff who deals with conveyance of properties.                                                                       
                                                                                                                                
2:23:38 PM                                                                                                                    
                                                                                                                                
MS. COLLES continued  with the next slide,  "Land Disposal Income                                                               
Fund  (LDIF),"  which  read   as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     • The LDIF holds deposits  from the state land disposal                                                                    
     program                                                                                                                    
                                                                                                                                
     • Under current law, the  portion of the fund in excess                                                                    
     of $5 million  is to be deposited in  the state general                                                                    
     fund                                                                                                                       
                                                                                                                                
     • The bill  raises state land disposal  income fund cap                                                                    
     from $5 million to $12 million                                                                                             
                                                                                                                                
     • Boosts spending authority for larger projects                                                                            
                                                                                                                                
     • Addresses inflation since 2000;  cap unchanged for 20                                                                    
     years                                                                                                                      
                                                                                                                                
     • Adjustment to funding cap, not appropriation                                                                             
                                                                                                                                
     •  Department  can  request limit  increase  in  annual                                                                    
     report                                                                                                                     
                                                                                                                                
2:24:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  clarified that this does  not represent a                                                               
new appropriation  but rather  just a  larger account  that money                                                               
can  go  into.   He  asked  what  the  most immediate  impact  of                                                               
expanding the Land Disposal Income Fund (LDIF) would be.                                                                        
                                                                                                                                
MS. COLLES  agreed about the  fund and  explained that it  was an                                                               
initial step for growth.                                                                                                        
                                                                                                                                
2:25:52 PM                                                                                                                    
                                                                                                                                
MS.  COLLES returned  to the  PowerPoint  and moved  to slide  5,                                                               
"Agricultural  Land Lease  and Sale  Procedures,"  which read  as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     •  Amendment  to AS  38.05.321  allows  broader use  of                                                                    
     agricultural land and improvements                                                                                         
                                                                                                                                
     • Currently an agricultural  landowner can only use the                                                                    
     land  for  purposes  that are  incidental  to  and  not                                                                    
     inconsistent with agricultural land                                                                                        
                                                                                                                                
     • Proposed  amendment would  now allow  an agricultural                                                                    
     landowner to use land for  purposes that are consistent                                                                    
     with and do not interfere with the primary purpose                                                                         
                                                                                                                                
2:26:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MEARS asked  where the  income from  selling land                                                               
would go  into the LDIF.   She questioned how using  the LDIF met                                                               
the appropriations standards.                                                                                                   
                                                                                                                                
MS. COLLES explained how the LDIF worked.                                                                                       
                                                                                                                                
MR. GOODRUM  provided additional  information regarding  the LDIF                                                               
and appropriations.                                                                                                             
                                                                                                                                
2:28:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked about  the reasons for changing the                                                               
cap from $5 million to $12 million.                                                                                             
                                                                                                                                
MS. COLLES  described the reverse  sweep in fiscal year  2022 (FY                                                               
22) and how the money listed  is an adjustment to the funding cap                                                               
rather than an appropriation.                                                                                                   
                                                                                                                                
REPRESENTATIVE RAUSCHER asked whether  $12 million would be spent                                                               
in a year.                                                                                                                      
                                                                                                                                
MS. COLLES responded  that it would depend and  described how the                                                               
LDIF is similar to a bank account.                                                                                              
                                                                                                                                
2:31:01 PM                                                                                                                    
                                                                                                                                
MS. COLLES presented  slide 6, "Agricultural Land  Lease and Sale                                                               
Procedures,"   which  read   as  follows   [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     •  Amendment  to AS  38.05.321  allows  broader use  of                                                                    
     agricultural land and improvements                                                                                         
                                                                                                                                
     • Currently an agricultural  landowner can only use the                                                                    
     land  for  purposes  that are  incidental  to  and  not                                                                    
     inconsistent with agricultural land                                                                                        
                                                                                                                                
     • Proposed  amendment would  now allow  an agricultural                                                                    
     landowner to use land for  purposes that are consistent                                                                    
     with and do not interfere with the primary purpose                                                                         
                                                                                                                                
MS. COLLES  continued with slide  7, "Access  Road Construction,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     • Amends AS  19.30.080 to specify that  access roads to                                                                    
     surface  disposals  may  be   developed  at  a  pioneer                                                                    
     standard                                                                                                                   
                                                                                                                                
        Clarifying language  on  right-of-way widths  within                                                                    
     municipal boundaries                                                                                                       
                                                                                                                                
       Align with municipal  zoning requirements to the same                                                                    
     extent as private developers                                                                                               
                                                                                                                                
                                                                                                                                
MS. COLLES moved  to slide 8, "Land Sale  Procedures," which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     • Land sale disposal contracts                                                                                             
                                                                                                                                
       Longer purchase terms from 20 years to 30 years                                                                          
                                                                                                                                
         Consistency   in   terms  from   "Foreclosure"   to                                                                    
     "Termination"                                                                                                              
                                                                                                                                
        Allows  for  paid  in full  purchase  when  existing                                                                    
     infrastructure would increase  liability of financing a                                                                    
     land sale purchase contract                                                                                                
                                                                                                                                
2:32:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RAUSCHER   asked  about  the  use   of  the  term                                                               
"termination" rather than "foreclosure"  of contracts and whether                                                               
DNR has terminated contracts.                                                                                                   
                                                                                                                                
MS.  COLLES  explained  how DNR  contracts  differ  from  banking                                                               
contracts  and  confirmed  that  the  department  has  terminated                                                               
contracts.                                                                                                                      
                                                                                                                                
MS.  COLLES  advanced  to  slide   8,  "Survey  Requirements  for                                                               
Leases," which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     • Discretion of cadastral surveys for long-term leases                                                                     
                                                                                                                                
        Survey   could  be  required   where  infrastructure                                                                    
     boundaries or access                                                                                                       
                                                                                                                                
     management is in the best interest of the state                                                                            
                                                                                                                                
       Reduces the financial and administrative burden on                                                                       
     industries                                                                                                                 
                                                                                                                                
       Industry is challenged by current requirements                                                                           
                                                                                                                                
     • Ex: Renewable energy projects, grazing leases                                                                            
                                                                                                                                
2:34:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS  commented about  the accuracy  of satellite                                                               
surveys  and  inquired about  setbacks  and  whether there  is  a                                                               
buffer to reduce conflicts.                                                                                                     
                                                                                                                                
MS.  COLLES  answered  that  there is  nothing  in  statute  that                                                               
addresses such a  buffer, but it is something that  could be done                                                               
by  statute  or regulation.    A  description of  commercial  and                                                               
public  development  was  continued   with  slide  9,  "Land  for                                                               
Commercial   Development,"  which   read  as   follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     • Stimulate economic development                                                                                           
                                                                                                                                
       • Offers land for leasing, and sale, by requesting                                                                       
     proposals                                                                                                                  
                                                                                                                                
          For state land identified or nominated as a                                                                           
     Qualified Opportunity Zone                                                                                                 
                                                                                                                                
       For state land nominated by the public                                                                                   
                                                                                                                                
     • Land nominated cannot exceed 640 acres                                                                                   
                                                                                                                                
        For any other state land the commissioner deems                                                                         
     appropriate for commercial development                                                                                     
                                                                                                                                
     • Nominated land may need to be reclassified                                                                               
                                                                                                                                
       Provide additional public notice beyond normal AS                                                                        
     38.05.945                                                                                                                  
                                                                                                                                
2:37:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MEARS inquired about  state land nominated for the                                                               
public and what process private individuals would use.                                                                          
                                                                                                                                
MS. COLLES described how the nomination process for commercial                                                                  
development would work and what would happen if there was                                                                       
competition for a parcel.                                                                                                       
                                                                                                                                
2:39:06 PM                                                                                                                    
                                                                                                                                
MS. COLLES presented the sectional analysis of HB 282, slides 10                                                                
through 13, which read as follows [original punctuation                                                                         
provided]:                                                                                                                      
                                                                                                                                
     • Section  1: Amends  AS 14.07.030 to  expand authority                                                                    
     for  land disposals  for Dept.  of Education  and Early                                                                    
     Development                                                                                                                
                                                                                                                                
     •  Section  2:  Amends  AS 19.30.080  for  access  road                                                                    
     development  related  to  surface  disposals  within  a                                                                    
     municipal boundary                                                                                                         
                                                                                                                                
     •   Section  3:   Reenacted  authority   to  Dept.   of                                                                    
     Transportation & Public  Facilities to expand authority                                                                    
     to vacate and dispose of land                                                                                              
                                                                                                                                
     •  Section 4:  Raises state  land disposal  income fund                                                                    
     cap from $5 million to $12 million                                                                                         
                                                                                                                                
     •  Section 5:  Removes the  requirement of  a cadastral                                                                    
     survey for a long-term lease under AS 38.05.070                                                                            
                                                                                                                                
     •  Section 6:  Grants  the  commissioner discretion  to                                                                    
     require  a  cadastral  survey  for  a  long-term  lease                                                                    
     issued under AS 38.05.070                                                                                                  
                                                                                                                                
     •  Section  7: Repeals  and  reenacts  AS 38.05.055  to                                                                    
     clarify requirements  for public auction or  sealed bid                                                                    
     as the default methods for sale of state land                                                                              
                                                                                                                                
     • Section 8:  Amends AS 38.05.065(a) to  allow a longer                                                                    
     term of 30 years for contracts                                                                                             
                                                                                                                                
     • Section  9-12: Updates AS 38.05.065(c),  (d), and (f)                                                                    
     with consistent industry terms                                                                                             
                                                                                                                                
     • Section  13: Amends  AS 38.05.065(h)  for consistency                                                                    
     in land sale disposals                                                                                                     
                                                                                                                                
     • Section 14: Adds new  section (j) to AS 38.05.065 for                                                                    
     consistency in land sale disposals  and new section (k)                                                                    
     to reduce liability to the state                                                                                           
                                                                                                                                
     •  Section  15:  Adds  new  section  to  AS  38.05  (AS                                                                    
     38.05.086) for nomination, lease,  and sale of land for                                                                    
     commercial development                                                                                                     
                                                                                                                                
     • Section  16: Amends AS 38.05.321  to expand allowable                                                                    
     uses on conveyed agricultural land                                                                                         
                                                                                                                                
     •  Section  17: Amends  AS  38.05.965  to include  term                                                                    
     definitions                                                                                                                
                                                                                                                                
     • Section  18: Repeals AS 38.05.065(b)  to conform with                                                                    
     updates in previous section 13                                                                                             
                                                                                                                                
     • Section 19: Provides immediate effective date                                                                            
                                                                                                                                
2:43:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAUSCHER asked how many land disposal programs                                                                   
the state has currently.                                                                                                        
                                                                                                                                
MS. COLLES replied that there were two land sales currently.  In                                                                
response to a follow-up question, she explained that none of the                                                                
lands for sale were Mental Health Trust Land.                                                                                   
                                                                                                                                
MS. COLLES presented the fiscal note on slide 14, which read as                                                                 
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     • FY 2025 $655.4 (5 positions)                                                                                             
                                                                                                                                
     • Two Permanent  Full-Time Natural Resource Specialists                                                                    
     3                                                                                                                          
                                                                                                                                
     • Two  Permanent Full-Time Natural  Resource Specialist                                                                    
     2                                                                                                                          
                                                                                                                                
     • One Permanent Full-Time Appraiser 1                                                                                      
                                                                                                                                
       These  positions will support timely  adjudication of                                                                    
     the  expanded Land  Sales  with Commercial  Development                                                                    
     program applications                                                                                                       
                                                                                                                                
     • FY 2026-2030 $630.4 annually                                                                                             
                                                                                                                                
2:45:20 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY announced an amendment deadline of February 27.                                                                     
                                                                                                                                
2:45:54 PM                                                                                                                    
                                                                                                                                
CHAIR MCKAY announced that HB 282 was set aside.                                                                                

Document Name Date/Time Subjects
HJR 20 Sponsor Statement.pdf HRES 2/19/2024 1:00:00 PM
HRES 2/23/2024 1:00:00 PM
HJR 20
HB 296 Clean-up CS.pdf HRES 2/23/2024 1:00:00 PM
HB 296
HB282.Ver.A.Sectional Analysis.2.2.24.pdf HRES 2/23/2024 1:00:00 PM
HTRA 2/6/2024 1:00:00 PM
HB 282
HB282.VerA.FiscalNote.DEED.2.2.24.pdf HRES 2/23/2024 1:00:00 PM
HTRA 2/6/2024 1:00:00 PM
HB 282
HB282.VerA.FiscalNote.DNR2.2.24.pdf HRES 2/23/2024 1:00:00 PM
HTRA 2/6/2024 1:00:00 PM
HB 282
HB282.VerA.SponsorStmt.2.2.24.pdf HRES 2/23/2024 1:00:00 PM
HTRA 2/6/2024 1:00:00 PM
HB 282
HB 282, SB 199 State Land_Disposal_Sale_ Briefing Paper 02.06.2024.pdf HRES 2/23/2024 1:00:00 PM
HTRA 2/6/2024 1:00:00 PM
HB 282
SB 199
HB 282 Transmittal Letter State Land Disposal without enclosures 01.22.24.pdf HRES 2/19/2024 1:00:00 PM
HRES 2/23/2024 1:00:00 PM
HB 282
HB 282 DNR State Land_Disposal_Sale_Lease_Restrict Presentation 02.19.24.pdf HRES 2/19/2024 1:00:00 PM
HRES 2/23/2024 1:00:00 PM
HB 282
HB 223 CS.pdf HRES 2/19/2024 1:00:00 PM
HRES 2/23/2024 1:00:00 PM
HB 223
HB 177 Committee Substitute.pdf HRES 2/23/2024 1:00:00 PM
HB 177
HB 296 HRES Amendment Packet.pdf HRES 2/23/2024 1:00:00 PM
HB 296
HB 296 DNR Responses to HRES Questions 02.15.2024.pdf HRES 2/23/2024 1:00:00 PM
HB 296
HB 223 Summary of Changes (B to S).pdf HRES 2/23/2024 1:00:00 PM
HB 223
HJR 20 Alaska Delegation Letter on OIRA NPR-A Review.pdf HRES 2/23/2024 1:00:00 PM
HJR 20
HB 177 Summary of Changes ver. A to ver. B.pdf HRES 2/23/2024 1:00:00 PM
HB 177
HJR 20 Supporting Document NPR-A Working Group Resolution Requesting NEPA Analysis 2.6.24.pdf HRES 2/23/2024 1:00:00 PM
HJR 20
HJR 20 Letter of Support ICAS NSB ASRC Final 02.16.2024.pdf HRES 2/23/2024 1:00:00 PM
HJR 20