Legislature(1999 - 2000)

04/12/2000 06:11 PM 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.                                                                               
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Torgerson adjourned the meeting at 7:55 PM.                                                                             
SFC-00 (23) 04/12/00                                                                                                            

Document Name Date/Time Subjects