05/08/1995 02:05 PM Senate FIN

                                                                               
  CS FOR HOUSE BILL NO. 20(FIN) am                                             
                                                                               
       An  Act  relating  to conveyance  of  certain  tide and                 
       submerged land to municipalities;  and providing for an                 
       effect date.                                                            
                                                                               
  Co-chairman Halford  directed that CSHB 20(Fin)am be brought                 
  on for discussion.   REPRESENTATIVE  CARL MOSES came  before                 
  committee accompanied  by his  aide, NANCY  HEMENWAY.   Mrs.                 
  Hemenway explained that  the bill was introduced  to address                 
  concerns  raised by  the  Aleutians  East Borough  regarding                 
  Dept. of Natural Resources leasing  which can be cumbersome,                 
  costly  to  obtain,  and widely  varied  in  terms.   It  is                 
  difficult to obtain general  obligation bonding without  fee                 
  simple title or a 55-year lease on the land.  Certain first-                 
  class and home-rule  cities incorporated  prior to April  of                 
  1964  were conveyed  their tide  and submerged  lands.   The                 
  proposed  bill would  extend  a right  of  conveyance for  a                 
  specific water-front project to  municipalities incorporated                 
  after 1964.   The  legislation  is supported  by the  Alaska                 
  Municipal League and port administrators.                                    
  Senator Rieger asked  if the conveyance contemplated  by the                 
  bill would  count against municipal entitlements  or provide                 
  land  in addition to entitlements.   Mrs. Hemenway said that                 
  conveyance  would be in addition to entitlements.  The Dept.                 
                                                                               
                                                                               
  of  Natural  Resources  can  convey  lands,  providing  that                 
  certain criteria is met.   She then deferred further comment                 
  to department staff.                                                         
                                                                               
  RON SWANSON, Director,  Division of  Land, Dept. of  Natural                 
  Resources,  came before  committee, voicing support  for the                 
  legislation.    He   explained  that  it  would   allow  the                 
  department to  convey improved  tidelands to  municipalities                 
  for local control.   It will also limit state  liability and                 
  management expenses.                                                         
                                                                               
  Co-chairman Halford inquired regarding the maximum amount of                 
  land  a  municipality  might  receive  as  a  result  of the                 
  proposed bill.  Mr. Swanson said it would not be very  much.                 
  It  would be  land  upon which  a  dock, seafood  processing                 
  facility, small boat  harbor, etc. is located.   Co-chairman                 
  Halford  voiced his  understanding that  a municipality  can                 
  only  make application if  there is an  existing or proposed                 
  new lease on  the property to  a third party.   Mr.  Swanson                 
  responded affirmatively.    The  Co-chairman  observed  that                 
  while the  state  would lose  the  small amount  of  revenue                 
  generated  by the  leases,  it  would  also be  absolved  of                 
  liability   and  management  costs.     Mr.   Swanson  again                 
  concurred.                                                                   
                                                                               
  In response  to a question  from Senator Sharp,  Mr. Swanson                 
  reiterated  that  past  legislation  allowed  home-rule  and                 
  first-class  cities  formed   prior  to   1964  to   receive                 
  conveyance of tidelands  in front of their  boundaries.  The                 
  proposed bill would provide equity for municipalities formed                 
  since that time.                                                             
                                                                               
  Senator  Rieger directed  attention to  the top  of page  4,                 
  noted  references  to   the  "public  trust   doctrine"  and                 
  "conveyance  for  shore   fisheries,"  and   asked  for   an                 
  explanation.   Mr. Swanson  advised that  any conveyance  of                 
  land by the department  is made subject to the  public trust                 
  doctrine.    That  ensures   public  access  along  Alaska's                 
  coastline.  The public trust doctrine is a living doctrine--                 
  a   common   law   provision   that   changes   over   time.                 
  Municipalities must be aware  of it at all times.   Speaking                 
  to  conveyance  for shore  fisheries, Mr.  Swanson explained                 
  that provisions retain the shore  fishery program within the                 
  Dept. of  Natural  Resources.   Municipalities cannot  start                 
  their own shore  fish program.  The department  can continue                 
  to issue shore  fishery leases if compatible  with municipal                 
  uses.                                                                        
                                                                               
  Senator  Rieger  next raised  a  question  regarding whether                 
  areas below or  above the high  tide mark would be  conveyed                 
  under the proposed  bill.  Mr. Swanson  responded, "It's the                 
  area below the high tide line."                                              
                                                                               
  Senator  Rieger voiced  his  understanding  that the  public                 
                                                                               
                                                                               
  trust doctrine ensures that there is no difference in public                 
  access, in  terms of  walking along  the shore,  whether the                 
  state  or  municipality  owns  the  property.   Mr.  Swanson                 
  concurred.                                                                   
                                                                               
  Co-chairman  Halford referenced  fiscal note  costs totaling                 
  $40.3  and  a revenue  loss of  ($100.0).   He  then queried                 
  members regarding disposition of the  bill.  Senator Zharoff                 
  MOVED  that  CSHB  20  (Fin)am   pass  from  committee  with                 
  individual  recommendations.    No   objection  having  been                 
  raised, CSHB 20 (Fin)am was REPORTED OUT of committee with a                 
  $6.0  fiscal  note  from  the  Dept.  of  Natural  Resources                 
  (Information Resource  Management), a  $34.3  note from  the                 
  Dept. of  Fish  and Game,  a  zero note  from  the Dept.  of                 
  Natural Resources (Land Development) evidencing revenue loss                 
  of ($100.0), and a zero note from the Dept. of Community and                 
  Regional Affairs.   Co-chairman Halford and  Senator Zharoff                 
  signed the committee report with a "do pass" recommendation.                 
  Senators   Phillips,   Rieger,   and    Sharp   signed   "no                 
  recommendation."