Legislature(2013 - 2014)SENATE FINANCE 532
04/08/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB77 | |
| SB74 | |
| SB85 | |
| SB95 | |
| SB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 85 | TELECONFERENCED | |
| + | SB 95 | TELECONFERENCED | |
| + | SB 96 | TELECONFERENCED | |
| = | SB 74 | ||
| = | HB 77 | ||
CS FOR HOUSE BILL NO. 77(RES)
"An Act relating to the Alaska Land Act, including
certain authorizations, contracts, leases, permits, or
other disposals of state land, resources, property, or
interests; relating to authorization for the use of
state land by general permit; relating to exchange of
state land; relating to procedures for certain
administrative appeals and requests for
reconsideration to the commissioner of natural
resources; relating to the Alaska Water Use Act; and
providing for an effective date."
9:08:19 AM
Co-Chair Meyer noted letters in the committee member's
packet from various corporations, support letters, and
paperwork related to the bill.
9:08:54 AM
Co-Chair Kelly MOVED to ADOPT the proposed committee
substitute for SCS CS HB 77 (FIN), Work Draft 28-GH1524\P
(Bullock 4/7/13).
Co-Chair Meyer OBJECTED for purpose of discussion.
9:09:57 AM
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, noted the
title change on the first page of the CS, which pertained
to material stated on page 18, section 30. The section
allowed for the performance of a feasibility study at
Chikuminuk Lake. Language pertaining to the same subject
was found on page 6 in the transition language. She
mentioned 2 additional substantive changes to the bill, the
first on page 6, section 4 addressed leases. The final
change on page 23, section 47 addressed language related to
transition, pending applications.
9:11:43 AM
Co-Chair Meyer noted that the change in access to the Wood-
Tikchik State Park was previously included in Senator
McGuire's bill, which was the reason for the title change.
He stated that long-term lease sales allowed first
purchasing opportunity to the lessee. Ms. Marasigan
concurred.
9:12:55 AM
Co-Chair Meyer understood that transition language in the
bill required correction in collaboration with the
Department of Natural Resources (DNR). Ms. Marasigan
replied that there had been some discussion regarding
Section 4 pertaining to preference rites.
9:13:17 AM
Ms. Marasigan pointed out that the transition language at
the end of the bill should result in a zero fiscal note.
She stated that DNR representatives were available to
discuss the fiscal note.
9:14:08 AM
Senator Olson objected that the finance CS was considerably
different from the original and he hoped for ample time for
committee consideration.
Co-Chair Meyer explained that the bill's changes were minor
and he did not feel the need to hold the bill.
Senator Olson remarked that the citizens affected by the
changes in the bill did not consider the issues minor.
9:15:08 AM
Co-Chair Kelly queried the page number for Tikchick State
Park and Chikuminuk Lake.
Ms. Marasigan replied that the title change was noted on
page one. Another change noted on page 18, section 30
addressed Chikuminuk Lake. She continued that page 23 had
transition language which also addressed Chikuminuk Lake.
9:15:59 AM
Co-Chair Kelly remarked that the CS would not grant access
to the park, but rather enable a feasibility study.
Co-Chair Meyer agreed, but remarked that funding was
acquired in the FY 13 capital budget for a hydro project,
but access to the park was necessary to perform the
feasibility study.
9:16:46 AM
Co-Chair Kelly reiterated that access would be granted for
the feasibility study alone.
9:17:01 AM
Vice-Chair Fairclough looked at page 6, and noted that
Section 4 was new.
Ms. Marasigan replied that the section was new and related
to preference rights to purchaser lease without competitive
bid for up to five acres of state land. She pointed out
that the change added time for an applicant to purchase the
lease land. The federal permit requirement was also
removed.
9:18:08 AM
Senator Hoffman noted that section 40 from the previous
version was now listed as section 42.
Ms. Marasigan replied that the bill remained the same minus
the three discussed changes.
9:18:42 AM
Co-Chair Meyer addressed Senator Olson's concerns. He
understood that any time bills were combined, public input
was minimized. He noted that the process of combining bills
was expected at the end of a legislative session. He
believed that the bill's impact was similar and that
testimony for HB 77 would remain consistent. He judged the
CS as an appropriate vehicle for the changes.
9:19:31 AM
Senator Olson felt that the bill was deemed controversial
prior to the introduction of the Senate Finance Committee
version. He opined that the judgment of the chairman was
clouded by end-of-session pressure. He suggested holding
the bill in committee for further work in a subcommittee or
special session. He requested testimony from DNR and the
Water Resources Board.
9:20:44 AM
Co-Chair Meyer shared that DNR was available to discuss the
changes. He opined that HB 77 was well vetted between the
two bodies.
Senator Olson felt that the CS was much different than the
version passed to the committee.
Co-Chair Meyer agreed that changes were made, which was
common practice at the end of session.
9:21:20 AM
Senator Olson suggested that bad legislation was often
passed when time was short and legislators were rushed.
9:21:25 AM
AT EASE
9:24:23 AM
RECONVENED
9:24:33 AM
Senator Bishop pointed to Section 4 and requested
clarification from the department.
9:24:54 AM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, introduced himself.
9:25:37 AM
Senator Bishop noted that section 4 stated that "a director
shall grant a preference to right-to-purchase or lease
without competitive bid up to 5 acres...who has erected a
building on the land and use the land for a bona fide
business purposes." He asked if the section would apply to
traditional fish camps on the Yukon River.
Mr. Fogels replied that the intent of the preference was to
provide Alaskans with federal permits on federal land. The
permits allowed Alaskans the opportunity to purchase the
land.
9:26:32 AM
Senator Bishop asked if an Alaskan with a fish camp could
apply for the preference to purchase or lease federal land.
Mr. Fogels pointed out that the amendment stated that an
Alaskan with a state permit or lease who met the
requirements of 10 years and 25 percent would have the
option to purchase the property.
9:27:26 AM
Co-Chair Meyer clarified that the proposed amendment would
not be addressed until the CS was adopted.
9:27:42 AM
Co-Chair Kelly remarked that the changes in the CS were not
significant and were present to protect Alaskans. He did
not think that the subject of a feasibility study was
especially controversial.
9:29:13 AM
Co-Chair Meyer remarked that combining the bills seemed
logical. He noted that access to the park also seemed
logical since the money for the project was appropriated in
the FY 13 capital budget.
Co-Chair Kelly furthered that there were two separate
pieces that the feasibility study could be applied to and
the most applicable option was propagated in the CS.
9:30:09 AM
Co-Chair Kelly restated his original motion, and MOVED to
ADOPT the proposed committee substitute for SCS CS HB 77
(FIN), Work Draft 28-GH1524\P (Bullock 4/7/13).
Senator Olson OBJECTED for discussion.
Senator Olson wondered if Mr. Fogels would explain the
forthcoming amendment upon proposal.
Co-Chair Meyer replied in the affirmative.
9:30:36 AM
Senator Olson removed his objection. There being NO
OBJECTION it was so ordered. Version P was adopted.
9:31:29 AM
AT EASE
9:32:04 AM
RECONVENED
9:32:08 AM
Co-Chair Kelly moved Amendment 1.
DELETE Sec.4
Create a new preference right under AS 38.05.035
(o) Where there is an active municipal entitlement
selection on state land under AS 29.65.010 - 29.65.030
that has a state issued lease and before the decision
to approve the municipal entitlement, the director
shall grant a preference right to purchase without
competitive bid of up to five acres of the state land
to an individual who has erected a building approved
by a lease on the state land and used the land for
bona fide business purposes for 10 or more years under
a state lease, if the business produced no less than
25 percent of the total income of the applicant for
the 10 years preceding the application to purchase the
land. The director shall sell the land at a price
determined by the director to represent the current
fair market value of the unimproved land determined by
appraisal and survey, if not already completed, at the
cost of the applicant. If the director determines in a
written finding that the purchase of the land would
interfere with public use by residents of the area,
the director may condition the purchase to mitigate
the adverse effects on the public or may reject the
application if those effects can not be mitigated. The
revenue from the purchase of the parcel will be given
to the municipality if the municipal entitlement is
approved for that acreage. In this subsection,
"business purposes" means a purpose consistent with
the classification of the land at the time the land
was entered. In this subsection, "building" means a
permanent type of structure with solid walls,
foundation, and roof.
Co-Chair Meyer OBJECTED for discussion.
9:32:27 AM
Ms. Marasigan explained that Amendment 1 deleted Section 4,
and created a new preference right under AS 38.05.035. She
invited the department to discuss the amendment.
9:33:00 AM
Mr. Fogels explained that DNR observed problems with
Section 4 as stated in the finance version. The first issue
was that the CS deleted a preference right deemed necessary
to the department. He proposed focus on the preference
right allowing a leaseholder the option of purchasing that
lease.
Co-Chair Meyer wondered if the department's testimony
addressed Senator Bishop's concerns.
9:33:53 AM
Senator Bishop clarified that a leaseholder could apply for
the lease if the land would revert to a municipality.
Mr. Fogels responded that the option would exist for the
lease holder when the land was given to the municipality
through the municipal entitlements program.
9:34:14 AM
Vice-Chair Fairclough queried the impact of the five years
versus ten years and how the time frame either hurt or
helped an individual or municipality. Mr. Fogels responded
that the intent of the extended time period ensured that a
person invested more in their piece of land indicating
seriousness about their presence. He stated that the
department's leases were typically for commercial purposes.
The provision showed that a commercial lease was viable and
that 25 percent of income was derived from the commercial
venture.
9:35:10 AM
Vice-Chair Fairclough wondered if there was a particular
title holder that would be adversely affected by the
legislation.
Mr. Fogels did not know.
Senator Hoffman wondered how the amendment would be viewed
in light of individuals with long-term fish camp sites on
the Yukon River. Mr. Fogels responded that the preference
right was only for state leases. If the person with the
fish camp had a state lease then they would qualify,
otherwise the provision would not apply.
9:36:18 AM
Senator Olson felt that there was no protection for
Alaskans with long-term fish racks if they did not have
leases.
Mr. Fogels responded that a person holding a fish camp with
a state lease was able to purchase the land. He added that
many of the fish camps were on private land, which would
not be affected.
9:37:11 AM
Senator Olson wondered about the Water Resources Board as
established under Alaska statute.
Mr. Fogels responded that the Water Resources Board was
dormant without funding or membership.
Senator Olson found the information troublesome.
9:37:57 AM
Co-Chair Meyer removed his objection. There being NO
OBJECTION, Amendment 1 was ADOPTED.
9:38:26 AM
Co-Chair Meyer asked about fiscal note changes.
Ms. Marasigan responded that a forthcoming new
indeterminate fiscal note would be attached to the bill.
She asked the department to address the fiscal note.
9:38:52 AM
Mr. Fogels responded that the changes to the bill were
without fiscal impact.
Co-Chair Meyer concurred. He understood that both fiscal
notes were without fiscal impact.
9:39:20 AM
Co-Chair Kelly MOVED to REPORT SCS CS HB 77 (FIN) as
amended out of committee with individual recommendations
and the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
Co-Chair Meyer stated that a separate title change
resolution would accompany the bill.
9:41:00 AM
AT EASE
9:41:24 AM
RECONVENED
9:41:30 AM
Co-Chair Kelly REMOVED his PREVIOUS MOTION, for the purpose
of correcting the motion. There being NO OBJECTION, it was
so ordered.
9:41:47 AM
Co-Chair Meyer MOVED to REPORT SCS CS HB 77 (FIN) as
amended out of committee with individual recommendations,
attached SCR Title Change, the accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
SCS CS HB 77(FIN) was REPORTED out of committee with a "do
pass" recommendation and a new zero fiscal note from
Department of Natural Resources, and previously published
zero fiscal note: FN2 (DFG).
9:42:51 AM
Senator Hoffman stressed grave concern about testimony
regarding section 42. He intended to allow the bill to move
from committee, but would sign the report "amend."
9:43:37 AM
AT EASE
9:46:08 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 95 - NEW Sectional Analysis.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 95 |
| SB 95 - Sectional Analysis.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 95 |
| SB 96_SFIN_4-8-13.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 96 |
| SB 96 Sectional.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 96 |
| SB96.Apache letter.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 96 |
| Sponsor Statement SB 96.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 96 |
| SB 85 Alaska Aerofuel Letter of Support.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 85 |
| SB 85 FEDCo Letter of Support.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 85 |
| SB 85 CS Memo.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 85 |
| SB 85 Sponsor Statement.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 85 |
| SB 85 VWGoA Support.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 85 |
| HB 77 Amendment 1.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 |
| SB 74 - Dedicated Fund Question Legal Memo.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 74 |
| CS for SB 95 State Employee Compensation and Benefits.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 95 |
| DOA_SB95-HB195_BillOverview(April2013).pptx |
SFIN 4/8/2013 9:00:00 AM |
HB 195 SB 95 |
| HB77SCSCS(FIN)-DNR-MLW-4-8-13.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 |
| SB95-ACS-000-04-02-13.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 95 |
| SB074-UA-SYSBRA-4-01-13.pdf |
SFIN 4/8/2013 9:00:00 AM |
SB 74 |
| HB 77 Wrangell Resolution Opposition.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 |
| HB 77 Public Testimony - Sandberg.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 |
| HB 77 Publit Testimony Opposition - Hillstrand.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 |
| SB 26 AK Chapter comment 22March2013.pdf |
SFIN 4/8/2013 9:00:00 AM |
HB 77 SB 26 |