Legislature(2013 - 2014)BUTROVICH 205
02/25/2014 09:00 AM Senate STATE AFFAIRS
Audio | Topic |
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Start | |
SB106 | |
SB133 | |
SB182 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
*+ | SB 106 | TELECONFERENCED | |
*+ | SB 133 | TELECONFERENCED | |
*+ | SB 182 | TELECONFERENCED | |
SB 106-STATE LAND DISP./LEASEHOLDER PREFERENCE CHAIR DYSON announced the consideration of SB 106. 9:04:02 AM SENATOR KEVIN MEYER, Alaska State Legislature, Juneau, Alaska, said SB 106 provides for certain individuals to receive a preference right to purchase certain state land without a competitive bid. 9:04:33 AM SENATOR GIESSEL moved that the committee adopt the CS for SB 106, labeled 28-LS0864\N. CHAIR DYSON said seeing no objection, version N is the working document. SENATOR MEYER explained that the purpose of SB 106 is to allow state land leaseholders the first opportunity and first right of refusal on land that they have made investments on and depend on for their livelihood. He noted that SB 106 was initiated by a constituent who has invested a substantial amount of his retirement funds in a hunting lodge on some land he had leased from the state for a long period of time. He explained that his constituent requested to be given first opportunity to purchase his leased land before the property was sold or traded to a municipality. He explained that current state statutes allow for an individual to purchase up to five acres of land under certain conditions as follows: · Must have erected a building on the land, · The land must have been used for more than five years for bona fide business purpose, · Must be under a federal permit or without the need for a permit, · For state selection, must be under a state permit or lease, · The business the land is used for must have produced at least 25 percent of an individual's total income for the five years preceding the application. He said SB 106 would extend the first right of refusal to individuals who have state issued leases. He noted that the right of first refusal currently applies only to federal lands. He specified that the municipal entitlement selection also means "borough." He said SB 106 allows for a preference to purchase up to five acres of land without a competitive bid under the following conditions: · Individual must have erected a building, · Individual must have used the building for a bona fide purpose for ten years or more, · Individual has received at least 25 percent of their income for the last ten years preceding the application. He explained that the program's specifics are in the case of an admissible state land entitlement of the state land where an individual meets the conditions previously outlined and applies for preference right within 120 days of notice of a municipal entitlement selection. He specified that an individual will be granted a preference right to purchase land and added that the land will be sold at a fair market value. He noted that SB 106 also provides a mechanism for which a municipality may be compensated for the entitlement land if a leaseholder chooses to purchase the land. He said there is no cost associated with SB 106 and the Department of Natural Resources (DNR) has submitted a zero fiscal note. 9:07:43 AM SENATOR GIESSEL addressed a memorandum attached to the bill from Don Bullock [Legislative Counsel]. She said Mr. Bullock asked questions that pertained to whether the acreage will be credited against a municipal entitlement and where the money ultimately goes. She asked Senator Meyer to address Mr. Bullock's questions. SENATOR MEYER replied that he will have Ms. Morledge answer Senator Giessel's inquiry. 9:08:21 AM EDRA MORLEDGE, Staff, Senator Meyer, Alaska State Legislature, Juneau, Alaska, explained that a committee substitute (CS) was brought forward in response to Mr. Bullock's scrutiny. She said the bill's previous version did not have a mechanism by which the municipalities could be compensated for land that they may have wanted to choose, but the first right of preference goes to the leaseholder. She explained in the CS, lines 26-30, as follows: The amount of land, within an overall municipal entitlement, shall be reduced by the amount of land covered under this section, up to the five acres that an individual can exercise their noncompetitive bid rights; however, subject to appropriation, the revenue from the purchase of the parcel will be given to the municipality if the municipal entitlement land selection is approved. We felt this CS addressed the concerns that the drafter had with the original version. CHAIR DYSON asked to clarify in the previous statement, "Shall be reduced by the amount of land covered under this section." MS. MORLEDGE answered that the land of a leaseholder that exercises their first right of refusal will reduce the land entitled to the municipality. CHAIR DYSON asked to clarify that a municipality is going to have a state owned land as an inholding within a municipality. MS. MORLEDGE responded that theoretically, Chair Dyson's assertion could be correct. She deferred to the DNR on how some of the specifics would work. SENATOR WIELECHOWSKI asked for an explanation on the statement located on page 2, line 9, and "Where there is a valid municipal entitlement selection on state land." 9:11:53 AM WYN MENEFEE, Deputy Director, Division of Mining, Alaska Department of Natural Resources, Anchorage, Alaska, answered that when a municipality has an entitlement they first select their desired acquisition lands and the DNR proceeds with a consideration process. He noted that municipalities inevitably over-select for their entitlement due to a certain percentage being denied. He explained that municipality selections are constrained by legal land classifications. SENATOR WIELECHOWSKI asked for an explanation under what circumstances a municipality would have a right to an entitlement selection on state land. MR. MENEFEE replied that a municipal entitlement occurs when a borough or municipality is formed. He explained that a law dictates that entitlement is calculated on a percentage basis. 9:14:12 AM SENATOR WIELECHOWSKI asked if Anchorage, Fairbanks, or Juneau still have opportunities for state land entitlement. MR. MENEFEE answered that most of the main municipalities have already received their entitlement. He said newly formed boroughs have room for additional state land entitlement. SENATOR WIELECHOWSKI asked to clarify that state land entitlement applies to newer forming municipalities. MR. MENEFEE replied correct. He noted that some entitlement lands have not been fulfilled in Petersburg, Lake and Peninsula, and Northwest Arctic boroughs. He said the DNR is wrapping up land entitlement in the Denali Borough. CHAIR DYSON asked to verify that the term "municipality" includes cities and boroughs. MR. MENEFEE answered correct. CHAIR DYSON asked if a qualified citizen would get title to the land or just the improvements. 9:16:48 AM MR. MENEFEE answered that a qualified individual may purchase the land with improvements. He noted that the land acquisition would not apply to subsurface. He added that land sold to an individual will be decremented from the municipality's entitlement. He specified that an individual's land is taxable, but lease revenue will not exist due to the land purchase. He said the municipality would receive the money from the individual's land purchase. 9:19:48 AM SENATOR WIELECHOWSKI asked how many properties would be affected by SB 106. MR. MENEFEE replied that currently there are 8 to 12. SENATOR WIELECHOWSKI asked what specifically occurs when a municipality selects land that has a citizen with a business. MR. MENEFEE answered that the existing lease is transferred to a municipality and the lease's terms are honored. He specified that lease renewal is strictly up to a municipality. 9:22:54 AM CHAIR DYSON asked what happens to private leaseholders on federal land when a transfer occurs to either a municipality or native corporation. MR. MENEFEE answered that he is not sure. He assumed that the federal transaction is similar in nature where valid lease terms are honored. 9:24:31 AM SENATOR WIELECHOWSKI noted his intent to address unintended consequences of the bill. He asked if there is any likelihood for people to start leasing state land for future noncompetitive bid possibilities when new municipalities may be formed or expanded. MR. MENEFEE noted that the qualifications stipulated in SB 106 makes Senator Wielechowski's scenario inconceivable. CHAIR DYSON welcomed the testimony from two citizens. 9:26:52 AM ROGER BURGGRAF, representing self, Fairbanks, Alaska, stated that he supports SB 106 as a means of protecting many individuals and businesses from losing developed property. He said in many cases an individual's primary livelihood and assets have been tied up into leased state properties that were thought to be secure. 9:32:58 AM MEL GILLIS, representing himself, Fairbanks, Alaska, said he is one of the eight or ten that Mr. Menefee noted. He explained that he has a lodge on land that was given to the Lake and Peninsula Borough. He revealed that he has invested over $1 million into his leased land. He asserted that boroughs are specifically selecting the best properties. He said he has been guiding in Alaska for 43 years and is just about out of business because of his leased land situation. He declared that SB 106 is a good first step. CHAIR DYSON recalled that he had spoken to Mr. Gillis regarding his lease situation. MR. GILLIS answered correct. CHAIR DYSON assumed that an attempt was made to see if there was any way to help out people like Mr. Gillis and concluded that there was not. SENATOR MEYER replied that SB 106 does not help Mr. Gillis with his current situation. He set forth that SB 106 will help individuals in the future. 9:36:24 AM SENATOR WIELECHOWSKI asked if more than five acres is involved. MR. MENEFEE replied that SB 106 only allows for up to five acres. He added that an applicant can further negotiate with a municipality for additional land. SENATOR WIELECHOWSKI asked what would stop the DNR from selling the land right now as opposed to leasing. MR. MENEFEE explained that statutes dictate that only settlement land may be sold. CHAIR DYSON asked if DNR in favor of SB 106. MR. MENEFEE replied that the Administration is in favor of SB 106 in the revised version as it stands. CHAIR DYSON commented that he appreciates what seems to be fair consideration the state is doing in protecting Alaskans and landholders. 9:40:44 AM SENATOR GIESSEL moved CS for SB 106, labeled 28-LS0864\N from committee with zero fiscal note and individual recommendations. 9:41:00 AM CHAIR DYSON announced that without objection, [CSSB 106(STA)] moved out of the Senate State Affairs Standing Committee.
Document Name | Date/Time | Subjects |
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SB 106 A.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
SB 106 Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
SB106-DNR-MLW-2-22-14.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
SB 106 Work Draft Version N (2).pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
SB 133 Bill.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 133 Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 133 Supporting Document.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB133-DOA-FAC-02-21-14.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 133 ADN.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 133 AFN Letter to Governor.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 133 AFN Resolution.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 133 |
SB 106 - Summary of Changes to Version N.pdf |
SSTA 2/25/2014 9:00:00 AM |
SB 106 |
SB 182 - Legislation.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
SB 182 - Sponsor Statement.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
SB 182 - Section Analysis.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
SB182-DOT-AMHS-MVO-2-25-14.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
SB 182 - Support Documents - Talking Points.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |
SB 182 - Support Document - 2011 CBA.pdf |
SSTA 2/25/2014 9:00:00 AM SSTA 2/27/2014 9:00:00 AM SSTA 3/4/2014 9:00:00 AM |
SB 182 |