Legislature(1999 - 2000)

04/12/2000 09:07 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
     COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 283(RES)                                                                          
     "An  Act establishing  the shore  fisheries development                                                                    
     lease program account and  the timber receipts account;                                                                    
     relating  to the  accounting for  and appropriation  of                                                                    
     revenue  from  the  state land  disposal  program,  the                                                                    
     shore  fisheries  development  lease program,  and  the                                                                    
     state  timber disposal  program; and  providing for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
BOB LOEFFLER, Director, Division  of Mining, Land and Water,                                                                    
Department  of Natural  Resources  testified  that the  bill                                                                    
provides for a  land disposal income fund  for similar shore                                                                    
fisheries  and for  timber harvests.  He detailed  that this                                                                    
bill provides a  separate accounting system for  a land sale                                                                    
program  to   allow  the  legislature  and   the  public  to                                                                    
understand  the benefits  and the  physical consequences  of                                                                    
the land sales.                                                                                                                 
                                                                                                                                
Mr. Loeffler  continued that the  bill promotes  the concept                                                                    
that state  land sale programs  should return  revenues, not                                                                    
only  for the  sake  of  more land  sales,  but should  also                                                                    
provide a return to the state.  While he did not think these                                                                    
land  sales would  close the  state's budget  gap, he  noted                                                                    
they would provide  revenue above the amount  needed to fund                                                                    
a stable land disposal program.                                                                                                 
                                                                                                                                
Mr. Loeffler  detailed that the  bill allows  the department                                                                    
to use the  income from past and present sales  to fund more                                                                    
land  disposals  up  to  $5   million,  with  the  remaining                                                                    
revenues going to the general fund.                                                                                             
                                                                                                                                
Mr.  Loeffler  addressed  the fiscal  note,  which  he  said                                                                    
contain  the concepts  discussed  during hearings  on SB  6,                                                                    
another  lands  disposal  legislation.  The  amount  of  the                                                                    
fiscal note, he  said is enough to "jump  start" the program                                                                    
and to keep up with new acreage in future years.                                                                                
                                                                                                                                
Mr.  Loeffler spoke  to the  fisheries program,  saying this                                                                    
bill provides a  similar fund in the state  treasury for the                                                                    
shore   fisheries  program.   This  program,   he  explained                                                                    
currently  generates  $360,000  for  1,200  shore  fisheries                                                                    
leases and this  bill would allow a portion  of that revenue                                                                    
be used to fund the program.                                                                                                    
                                                                                                                                
DAN CHALUP,  Representative, Katchemak Bay  Salmon Producers                                                                    
Co-op, testified  via teleconference  from Homer  in support                                                                    
of Section  3 of  the legislation. His  organization thought                                                                    
that a  portion of the  proceeds should go into  the program                                                                    
to protect  it from any  further budget reductions  from the                                                                    
Department of Natural Resources.                                                                                                
                                                                                                                                
KARL  KIRCHER,  Kenai   Peninsula  Fisherman's  Association,                                                                    
testified  via teleconference  from  Kenai in  favor of  the                                                                    
bill  and referred  to written  testimony  submitted to  the                                                                    
Committee.  [Copies  not  provided.] He  also  gave  details                                                                    
about the  organization; its purpose and  the existing shore                                                                    
lease problems.                                                                                                                 
                                                                                                                                
SANDY  UMLAUT, President,  Ugashik Set-netting  Association,                                                                    
testified   via   teleconference   from  Kenai   about   the                                                                    
organization and  to request that  members of  the Committee                                                                    
vote in favor of this bill.  She stated that this bill would                                                                    
continue to provide stability for the set-net industry.                                                                         
                                                                                                                                
PAUL SHADURA,  member of a  family that  set-nets, testified                                                                    
via teleconference  from Kenai telling about  the successful                                                                    
fishing areas. His family supported the bill.                                                                                   
                                                                                                                                
Co-Chair  Torgerson asked  if new  staff would  be hired  to                                                                    
implement the legislation.                                                                                                      
                                                                                                                                
Mr. Loeffler  said approximately eight people  would run the                                                                    
program. He noted that  three title-search positions already                                                                    
existed and would be staffed  by employees whose funding was                                                                    
eliminated in  the operating budget.  He qualified  that two                                                                    
new  positions  would  be needed  for  the  shore  fisheries                                                                    
portion of the  program to offset staff  reductions from the                                                                    
previous year.                                                                                                                  
                                                                                                                                
Senator Phillips  asked how  the legislature  should explain                                                                    
to the public that the state  is adding new positions to the                                                                    
government.                                                                                                                     
                                                                                                                                
Mr. Loeffler said the division  would contract out functions                                                                    
as best  as it can,  but cautioned that  in order to  have a                                                                    
stable lands disposal system, staff are needed.                                                                                 
                                                                                                                                
Senator Phillips  contended that would not  stop people from                                                                    
complaining.                                                                                                                    
                                                                                                                                
Co-Chair Torgerson asked about  the increase of 55,000 acres                                                                    
up from the earlier 50,000.                                                                                                     
                                                                                                                                
Mr. Loeffler referred to discussions  regarding SB 6 and the                                                                    
five scenarios  provided. He detailed that  55,000 acres was                                                                    
one of  those scenarios, which is  made up of 50,000  of re-                                                                    
offered, previously distributed parcels  and 5,000 in remote                                                                    
sales  and   subdivisions.  He   explained  how   the  funds                                                                    
allocated would be used to implement the lands disposal.                                                                        
                                                                                                                                
Co-Chair  Torgerson commented  that  he would  not hold  the                                                                    
bill, but the warned that  the performance measures would be                                                                    
scrutinized  thoroughly. He  did not  have problem  with the                                                                    
additional funding for positions.                                                                                               
                                                                                                                                
Senator  Leman   stated  that  he  holds   a  set-net  shore                                                                    
fisheries lease. He  attested that the personal  cost to him                                                                    
would be the same whether or not this bill passes.                                                                              
                                                                                                                                
Senator Adams  offered a motion  to move from  Committee, CS                                                                    
SB 283  (RES) with  two accompanying  fiscal notes  from the                                                                    
Department of Natural Resources,  Division of Minerals, Land                                                                    
and Water. One fiscal note  is $1,014,300 for the Land Sales                                                                    
and Municipal  Entitlements component  and the  other fiscal                                                                    
note is $200,000 for the Claims, Permits and Leases                                                                             
component.                                                                                                                      
                                                                                                                                
Without objection, the bill MOVED from Committee.                                                                               
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ADJOURNED                                                                                                                   
                                                                                                                                
Senator Torgerson adjourned the meeting at 7:55 PM.                                                                             

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