Legislature(1993 - 1994)
01/18/1993 08:00 AM House RES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RESOURCES STANDING COMMITTEE January 18, 1993 8:00 a.m. MEMBERS PRESENT Representative Bill Williams, Chairman Representative Bill Hudson, Vice-Chairman Representative Pat Carney Representative John Davies Representative Joe Green Representative Jeannette James Representative Eldon Mulder MEMBERS ABSENT Representative Con Bunde Representative David Finkelstein COMMITTEE CALENDAR Overview: Department of Natural Resources WITNESS REGISTER Glenn A. Olds, Commissioner Department of Natural Resources 400 Willoughby Avenue Juneau, AK 99801-1724 Phone: 907-465-2400 POSITION STATEMENT: Provided information on the Department Anne McCord, Assistant Commissioner Department of Natural Resources 400 Willoughby Avenue Juneau, AK 99801-1724 Phone: 907-465-2400 POSITION STATEMENT: Provided information regarding the mental health lands trust Raga Elim, Special Assistant Department of Natural Resources 400 Willoughby Avenue Juneau, AK 99801-1724 Phone: 907-465-2400 POSITION STATEMENT: Offered his support to the legislature ACTION NARRATIVE TAPE 93-2, SIDE A Number 000 The House Resources Committee was called to order by Chairman Bill Williams at 8:04 a.m. Members present at the call to order were Representatives Williams, Hudson, Carney, Davies, Green, James, and Mulder. CHAIRMAN BILL WILLIAMS announced that an overview by the Department of Natural Resources (DNR), would be the topic for the meeting and that a folder had been provided by the DNR for the members. He said that the DNR had been asked to present a basic overview, including the structure of the DNR, functions and duties of the various divisions, legislative priorities for the session and a brief description of key issues that the DNR was currently involved in. He asked that specific issues be discussed in later meetings. Number 060 (Chairman Williams noted the arrival of Representative Mulder at 8:09 a.m.) GLENN OLDS, COMMISSIONER, DNR, pointed out the DNR had given a pre-session overview in Juneau, Fairbanks and Anchorage for new legislative members and apologized for any repetition. He explained that the DNR accounted for 80% of the state's revenue and had a rippling effect on everyone. COMMISSIONER OLDS provided the committee excerpts from Governor Hickel's book, "Who Owns America?" published in 1971. He felt it would be good background reading and that it addressed the critical character of Alaska, which differed from all other states. Number 160 COMMISSIONER OLDS referenced a map titled "Who Owns Alaska" provided by the DNR which showed the state of Alaska superimposed on the lower 48 states. He said that when Alaska became a state, the federal government wanted to give the state only 23 million acres of land. Since all the other states had developed their resource base through taxation and land given them by the Homestead Act and other acts, and because Alaska had no infrastructure over those years, except for the railroad, which the federal government built in the interest of providing some infrastructure, the state needed a larger resource base for its development. This, he felt formed the thesis for his presentation. Alaska had been given 106 million acres of upland. COMMISSIONER OLDS pointed out Alaska had a longer coastline than the continental United States and that the state owned 62 million acres of tidewater lands. His prediction was that this land was the state's most valuable asset. He pointed out further that Alaska had been placer mining for 200 million years and had dumped that residue on the continental shelf. COMMISSIONER OLDS also pointed out that 59 percent of the land was owned by the Federal government (218 million acres) and 28 percent (104-106 million acres) was owned by the state. In the Native Lands Settlement Act, 12 percent of the land (44 million acres) was given to Native peoples principally through the Native corporations. Slightly less than one percent of the land was owned privately. COMMISSIONER OLDS noted the Native lands, although held privately, were owned collectively. He observed that the state of Alaska was an owner-state unlike any other state, which presented the state with an inordinate responsibility not carried by government in other states. Number 223 COMMISSIONER OLDS pointed out Article VIII of the State Constitution established the DNR and the mandate for the DNR because of the nature of the State's ownership pattern. He said that Alaska's resources had become the primary basis for the generating of revenue unlike most states, whose revenue came from taxation imposed. COMMISSIONER OLDS read: "Section 1. It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with public interest." He stated that in debates the terms "multiple use" and "maximum use" had its roots in Section 1. of the Constitution. COMMISSIONER OLDS read further: "Section 2. The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the state,...for the maximum benefit of its people." He found himself defending the idea that the state should develop its resources. He said that constitutional intent was very clear regarding the development of the state's resources and conservation was a concern in regard to sustainability. This he hoped would explain the priorities that DNR had taken. Number 317 COMMISSIONER OLDS referenced the booklet, "A Strategic Plan" and the Governor's Priorities for Alaska as outlined on page 1 (A Strategic Plan, October 1992 by the Department of Natural Resources may be found in the Resources Committee Room, Capitol #124, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) He cited the first priority was to implement the responsibilities of an owner state. COMMISSIONER OLDS said that DNR had been on an accelerated course to get the land given to the state by the federal government and that it was not an easy task. He pointed out that although statehood was received in 1959, the state had not consummated the selection of that land. He provided a map titled "Alaska's Land Selection History" which showed the land owned by the state in 1959, in 1971 (at the time of the Native Lands Settlement Act), in 1980 (at the time of the Alaska National Interest Lands Conservation Act, ANILCA) and then in 1991. COMMISSIONER OLDS explained that when the governor asked him to move from the Department of Commerce to the DNR, he suggested it was the obligation of the DNR to fast track the acquisition of the remaining 23 million acres. He felt it was prudent to tie up the land for the state as fast as possible because Congress could redefine the land from which the state was selecting the final 23 million acres and in that redefinition make it useless to the state. COMMISSIONER OLDS also felt that with all the wilderness that had already been tied up in Alaska, the state did not need any more, especially given the difficulty and expense to get into that wilderness. He informed the committee that on December 31, 1992, the DNR had filed the state's final claim. He alerted the committee to the possibility of overlap of choice or double filing because of Native lands and state lands. COMMISSIONER OLDS stated that if at any time a military base was dismantled, the state would have some land left. The state had the privilege of "over selection" and had "over selected" and now, the state had taken the first stage of filing the claim. He explained the second stage would be to file for patent, a procedure that was proceeding at barely one million acres a year. COMMISSIONER OLDS advised of his meetings with the Bureau of Land Management (BLM) in Washington, D.C., and in Alaska, at which all agreed that the process should proceed at a faster pace. He gave July 1, 1993 as the date for the refinement of the land priorities within that over-selection process. He said that the DNR had initiated talks with Alaska Natives so that the state would recognize the lands Alaska Natives had filed and not duplicate that land selection. Number 378 REPRESENTATIVE JOE GREEN asked when the problem of dual filings would be resolved. COMMISSIONER OLDS responded that the DNR had been encouraging the BLM and Native leaders to accelerate a solution to the dual filings. He pointed out dual filings made both the state and Native people vulnerable because Congress could create another wilderness area and pull that land out of the selection process. For example, he noted that west of Prudhoe Bay the state's geological survey had only mapped 7 percent of the land, but had recognized two geological formations with the same generic geological structure as Prudhoe. It would be possible for the federal government to create a wilderness in that area removing that land from the selection process, he added. COMMISSIONER OLDS felt the DNR was maximizing information in determining top priorities for land that were presumed areas for oil, gas, coal, minerals, timber and so on. He believed as soon as the state gravitated toward a piece of land effort was made by some organizations to tie that land up. As a result, the state's efforts in this area were done openly but quietly. The DNR's technical division and steering commission were doing their best to identify the most promising lands for the state to select. COMMISSIONER OLDS advised the final configuration had not been made public. He believed it was in the state's best interest not to go public until the state filed for patent. He stated that the mental health lands were overlaid on this situation as well. Number 433 REPRESENTATIVE ELDON MULDER noted the Native people as well as the state had a claim if a military base was decommissioned. He asked if Fort Richardson was to close who would have priority over that land. COMMISSIONER OLDS thought military installations were in a different category, and had a different criteria because of the requirement that a military reservation could be reactivated, but believed Native people would have priority. He said there was a list of many priorities with regard to military land, such as non-profit organizations, local community organizations, etc., and that it was a complicated process. REPRESENTATIVE HUDSON said history showed even if military installations were closed the land was held for years until released. COMMISSIONER OLDS believed the Native Lands Settlement Act had priority with regard to military land, but that land would be vulnerable to reactivation. Number 471 REPRESENTATIVE JOHN DAVIES asked what percent of land could the state over-select and what did the July 1, 1993 definement deadline mean. COMMISSIONER OLDS said the state could over-select 25 percent of the land. He advised July 1, 1993 was a self- imposed deadline, at which time the DNR would define the land priorities in preparation for filing patent. He added the process was moving slowly, in part because of the cost of the process, and because the DNR did not have the budget to do the process comprehensively and swiftly. He explained that the fundamental survey for the patent alone was a very expensive project. Number 480 REPRESENTATIVE DAVIES said the state's geological survey had mapped approximately seven percent of the state. He asked if that same percentage was true of the 23 million acres and if so, did the State have enough information at this time for the selection process. COMMISSIONER OLDS agreed the state needed to make its decisions on the basis of the most comprehensive information available, but he felt that was a trade-off with the vulnerability of non-decision. He said three fundamental categories of high, medium and low had been mapped in all the sectors and the mapping division reflected the newest information available. According to COMMISSIONER OLDS, the governor indicated the state should not select everything and crowd the time frame so that the state would not choose land that it knew nothing about. The mapping division indicated they could not do much more than what they were doing at present, and because of the mental health lands, eight million acres of what the Commissioner felt to be the state's best lands had already been tied up. COMMISSIONER OLDS advised that on July 1, 1993, the state would not make a total appeal for patenting. He believed the filing would protect the state against aggressive Congressional action or at least it was the most secure action the state could take. Number 525 REPRESENTATIVE GREEN asked if in the filing process the state and Native people selected the same land, would that land be granted to the Native people rather than the state. COMMISSIONER OLDS agreed that this could happen and a solution was being sought with the Native peoples. Number 562 COMMISSIONER OLDS stated the DNR's first priority was to consummate the Statehood compact, and its second priority was to stimulate resource based economic activity while conserving the state's wild and scenic values. He noted the DNR was not only in the process of mapping and identifying the resources but also insuring corridors were open for access to those lands. He said the state's resources would be of no value if no one could get to them. COMMISSIONER OLDS felt the federal government had locked in many wilderness areas where roads or access were not permitted, and that the selection of corridors was a top priority for the state. He pointed out SR 2477 (U.S. Congress) and all other elements were part of that selection process. On a "Land Ownership" map he pointed out areas owned by the state, the Federal government, and the state's land selection, including the corridors chosen. COMMISSIONER OLDS noted the pipeline corridor would assure access to the Brooks Range and other corridors would insure access to minerals, oil and gas, and timber resources. He said he was working with Acting Commissioner Paul Fuhs to link commerce and economic development and international trade with our resource development because our resource development's inner reference was to enhance the quality of life of our people in land to the municipalities and in the private sector. COMMISSIONER OLDS pointed out the state's economy was driven by the way in which it developed its resources, and that markets for the state's resources were not in Alaska, but in the Pacific Rim. If the state was able to export its products to its best market like every other state in the union, it would mean about $185 million more a year in oil revenue alone. He said the Jones Act was configured when Alaska was still a colony, which meant the state's productivity must go through Seattle. Number 613 COMMISSIONER OLDS stated the third mission for the DNR was to simplify Title 38, its regulatory system. Members were provided an outline for Title 38, which began in 1957 with 14 pages and had been expanded to 183 pages. Commissioner Olds suggested one of the reasons oil companies were taking their business to other companies was because of existing regulatory functions. Number 651 COMMISSIONER OLDS stated the DNR's fourth mission was an educational one. He felt most Alaskans did not understand the ownership compact and the nature of our resource economy. COMMISSIONER OLDS pointed out on a General Land Status map that 40 percent of the fresh water was owned by the state. He believed by the end of the century fresh water would be as valuable as oil, and stated that the state of Alaska might be cash poor but its resources accounted for great value. He pointed out "Capitalizing our Assets in a Leverage Position" on the map, which showed fourteen oil and gas basins, and mineral and timber deposits to which the DNR had assigned a generic value. The low-end of that value was $367 billion with the high-end at $6 trillion and $662 million, he disclosed. TAPE 93-2, SIDE B Number 000 COMMISSIONER OLDS felt Alaska's wealth was in the resources owned by the State and the value was related to our wisdom and effectiveness in its proper and appropriate development. He concluded that the fundamental mission of the DNR was to manage the resources in both the short and long-term to maximize the benefit for all the people of the state's resources with environmental sensitivity and with our children's heritage in mind. Number 059 COMMISSIONER OLDS stated that in each category of responsibility the strategic plan had been dollarized and put in a time frame. He asked the members to turn to the back page of the Strategic Plan so that he might introduce them to the various divisions of DNR. He felt the Division of Agriculture was the most clouded in the public mind, and noted the state at present was farming less than one million acres. He added the cost to government was caused in part by the high cost of living. COMMISSIONER OLDS argued the cost of living could be decreased by providing modern sustainable agriculture even if it was only marketed within Alaska. He had requested that one million acres be moved into the agricultural category. John Cramer, Director of Agriculture, federal and state soil and conservation units, and the University of Alaska have been working together to strengthen the agricultural programs in Alaska, he added. Number 100 COMMISSIONER OLDS pointed out Thomas Smith was the State Geologist and Director of the Geological and Geophysical Surveys Division, whose job was to map, identify and generate information essential for the utilization and development of the resources. He felt the Division was very sophisticated and highly competent. The Division was also responsible for volcanoes and earthquake studies and, with the University, provided state-of-the-art integration of information for the state. He said the mapping for 7-1/2 million acres had been requested to be completed in seven years and this year's budget reflected a restoration of $1 million out of the capitol fund for this task. Number 180 COMMISSIONER OLDS said 29 percent of the United States' forest was in Alaska and the largest forest, the Tongass, was in federal hands. He disclosed the Division faced three main problems, the first being the infestation of bark beetle. The Division had developed a comprehensive task force to address this problem. He explained that March 1, 1993 had been set as the final deadline for the selection of a new director and that Dean Brown was now Acting Director. Secondly, he said the Division was looking at value added development. For instance, instead of shipping round logs overseas the state would look for alternative development in that area. Number 240 COMMISSIONER OLDS stated the Division of Land was the biggest and was heavily driven by statutory priorities. He explained that the DNR was working for the simplification and clarification of the planning process within the Division which, at present, had nine levels with four different statutory requirements at every level. The DNR was also looking for ways to move more land into municipal, school and private areas where it could be developed and taxed at a local level. He felt if the state did not have cash, it could use what it did have to help communities, especially in rural Alaska, become more economically viable. Number 268 COMMISSIONER OLDS pointed out that the Division of Mining represented one of the oldest occupations in Alaska, which had brought some of our early non-Native immigrants. He said mining had not directly created a lot of revenue for the state, but had generated jobs and revenue to local businesses. Fort Knox in Fairbanks would provide 300-500 jobs and its life cycle was predicted to last 15-25 years. The Red Dog Mine had provided 500 jobs in that northern region, developed a cash base for some of the economy and generated the possibility for an infra-structure of roads, he said. COMMISSIONER OLDS pointed out further that Greens Creek Mine on Admiralty Island had provided 15 percent of the jobs in Juneau and was a major player in local economic development. He said the DNR was pressing the international trade group for a new free trade agreement with Mexico and Canada to break down some barriers between those countries and Alaska. COMMISSIONER OLDS felt there was a possibility of building a road out of Juneau through the Taku area and, with the capacity of hydro power in that area in excess of the state's need, a trade could be made between Canada and Alaska for Canada's help in building the road which could access Canada's mine and allow Juneau to connect with the Alcan highway. Number 322 COMMISSIONER OLDS said the Division of Oil and Gas produced the largest revenue for the state. The activity of this Division had generated over $1 billion in royalties in the last two years by past royalty settlements in collaboration with the Attorney General's Office, he added, and suggested a portion of that settlement be used for exploration in this Division. Number 350 COMMISSIONER OLDS added the Division of Water has had much interest with regard to exportation of the state's water. He said the governor had not suggested damning any rivers, but argued that the state dumped a billion acre feet of water into the ocean each year or 892 billion gallons of water a day. According to the Commissioner, the governor felt the water could be taken at the mouth of the ocean and pipelined south. The state had been given title to all navigable rivers in Alaska. By definition, if a river was navigable, of which the State has 3,000, it also had the possibility of a mining claim, he stated. Number 403 COMMISSIONER OLDS advised the Division of Parks and Outdoor Recreation was the overseer for the largest park system in the United States, and noted this Division serviced visitors for seventy-five cents a visit while the federal parks were spending $15 per visitor. He said that an effort was being made to collaborate with the Department of Transportation to supply funds for the creation of more pull out parking and camp facilities. Number 417 COMMISSIONER OLDS provided a list of DNR's staff and phone numbers for the members' use, and noted all the DNR's division offices were in Anchorage, except the Commissioner's office, the financial operation and human resources which were located in Juneau. Number 450 COMMISSIONER OLDS then introduced Anne McCord, Assistant Commissioner and lawyer, who provided the committee with a "Mental Health Lands Trust Reconstitution Project Overview" for their reference. (This overview may be found in the Resources Committee Room, Capitol #124, and after the adjournment of the second session of the 18th Alaska State Legislature, in the Legislative Reference Library.) ANNE McCORD, ASSISTANT COMMISSIONER, DNR, had five points regarding the mental health litigation. She said she would talk about the creation and dissolution of the trust, the lawsuit that was filed by Vern Weiss, Chapter 66, the settlement agreement, and the mental health project status. MS. McCORD explained that the Mental Health Lands Trust was created by the United States Congress in 1956, which granted to Alaska one million acres of federal land to be held in public trust for those members of society who had some kind of mental illness. In 1959, when Alaska was admitted to the Union, the state assumed the duties of the trustee as well as management of the trust. Subsequent to that time, the State had neglected to perform many of its duties in regard to the trust and much of the land had been transferred to third party private interests when it should have been held in trust, she said. MS. McCORD further explained that in 1978, the Alaska legislature recognized this neglect and transferred what was left of the mental health lands to the general grant lands and directed that one and one-half percent of revenue from all state lands be put in a monetary trust for the provision of mental health services. In 1982, MS. McCORD continued, Vern Weiss filed a lawsuit on behalf of his minor son, which became a class action suit asking the court to order the reconstitution of the trust or some other equitable compensation, as the court deemed appropriate. The suit reached the Alaska Supreme Court in 1985, and the court held that the state had breached its duty as fiduciary of the trust, and that the 1978 redesignation state law was invalid. The Supreme Court ruled that the trust must be reconstituted in as much as possible to its original state given the fact that the state had to look at comparable factors, and that they be of equal and fair value to the original trust land. The parties made numerous attempts to go about that and failed, she added. MS. McCORD advised that the legislature, in 1991, fashioned Chapter 66 which set the parameters to guide the parties as the Court saw fit in reaching a settlement. She pointed out there were a lot of factors incorporated in Chapter 66 such as the parties obligations to work jointly and the DNR's responsibilities to assess the land so both plaintiff and defendants could make the selections. Number 520 MS. McCORD explained that Chapter 66 had a deadline of 1994 for this settlement to be accomplished. She advised a settlement agreement had been signed by three of the four plaintiff groups with the defendant, the state of Alaska, which basically set out more of the process of how the state and plaintiffs could reach an agreement, how the land was to be reconstituted, and also incorporated the list of hypothecated lands. MS. McCORD iterated that the settlement was a joint interactive project between the defendant and plaintiffs. In the event the parties were unable to reach agreement, the Supreme Court had original jurisdiction over the matter and, if by 1994 no agreement had been made, the Court could make the selection and foreclose on properties as they saw fit, she added. Number 546 MS. McCORD stated the mental health project was set up to implement Chapter 66 in the settlement agreement. She explained that Chapter 66 provided a process whereby the DNR and the plaintiffs would look at the technical, legal and administrative work that needed to be accomplished in order to come to a mutual agreement and understanding of what lands should be selected to reconstitute the trust. MS. McCORD explained that the Chief of Land Record Information, Diane Lyles, was in the process of performing the base mapping for the state, compiling the data, doing title work, analyzing land for comparable characteristics and value, and that this information was being shared with the plaintiffs and their attorneys to the extent allowed under federal and state law so that a mutual decision could be reached regarding the lands to reconstitute the trust. MS. McCORD stated that some environmental and industrial groups opposed the settlement. For example, some oil and gas groups feared that the settlement could cloud land titles which would place the state under a different fiduciary obligation under which they would have to operate. She stated further that based on the mental health project status report, the goal was to convey all the conveyable original trust and much of the conveyable land with encumbrances by January and June, 1993. Number 573 REPRESENTATIVE PAT CARNEY asked the status of the availability to the public of the hypothecated lands, and what direction or authority Director Ron Swanson of the Division of Land had to dispose of those lands. MS. McCORD answered that the land was available for public use, but that it could not be tied up. She said that a one year permit for grazing, for example, could be allowed, but long-term leases or obligations would not be imposed on those properties. COMMISSIONERS OLDS said it was not right to tie up seven million acres to hypothecate 600,000 acres. He felt the DNR's obligation was to insure comparability in the land pool, but that the pool had been made too large to insure flexibility of selection and that the state had tied up every developmental feature. He advised that he was pressing for the attitude that one million acres would be a sufficient pool to guarantee comparability for 600,000 acres. Number 595 REPRESENTATIVE CARNEY said Director Swanson in Anchorage, approximately a month and half ago, indicated to him that he had full authority to dispose of most of the six million acres. COMMISSIONER OLDS agreed with that statement. MS. McCORD referred the committee to the Mental Health Lands Trust Reconstitution Project Overview, page 8, where it stated: "Original Trust land; all departmental actions on such land must be reviewed by the Plaintiffs and there must be written concurrence to any proposed action...Hypothecated land; all departmental actions on such land must be reviewed by the Plaintiffs, although they have only the right to review and comment on proposed actions; they do not have concurrence authority." Number 603 REPRESENTATIVE JEANNETTE JAMES said she understood Chapter 66 was not effective until the lawsuit had been settled and all time had expired for appeal. She questioned whether Chapter 66 could have any binding authority, such as authority to foreclose on any of the hypothecated lands, and felt the mental health people would want 6.7 acres to support 600,000 acres. She asked if lands could be identified that were not in the hypothecated lands as a selection. Number 613 COMMISSIONER OLDS answered that the lands outside the hypothecated lands could be nominated, but the final decision would be made by the DNR with final review by the Court. If the Court viewed the decision as being equitable, it would stand. He stated it was in the state's best interest to insure the lands were as valuable as possible because under the law, the income from any mental health lands not required for mental health responsibilities would go into the state's general funds. He felt the plaintiff who had not signed the settlement, had not wanted development of the land and if the state would come to a settlement those lands would be developed to maximize their income. Number 628 REPRESENTATIVE JAMES understood the plaintiff was concerned that all the Mental Health Trust Authority had to support mental health issues was land and that would not necessarily guarantee a cash flow, and wanted to be insured there would be cash to take care of the mentally ill that the plaintiff represented. She felt the state should be working harder for the settlement, and appealed to the administration and legislators to realize how important it was for the mental health issue to be settled and to work for a quick settlement. COMMISSIONER OLDS said that was the DNR had the same concern. Number 640 REPRESENTATIVE GREEN pointed out that if a settlement was not achieved by 1994, it would go to court and then on to appeals, all the while creating havoc for potential development. He asked if there was any solution other than the exchange of lands to achieve a settlement. Number 648 MS. McCORD preferred this question be referred to the Department of Law, but based on her knowledge said that since all parties had signed the settlement agreement except for one plaintiff, the parties would have to go before the Alaska Supreme Court and ask that the settlement agreement be set aside and the Court would have to concur with that request. The parties would then have to propose another settlement agreement to the Court, she concluded. REPRESENTATIVE GREEN believed that still might be a faster track than the one on which the State was presently. MS. McCORD agreed with that statement. REPRESENTATIVE JAMES stated the Court would find it very difficult not to accept the settlement if all plaintiffs were in agreement. MS. McCORD said that was probably true. Number 659 REPRESENTATIVE HUDSON stated a cash settlement from the general fund could be used to settle the mental health trust lawsuit, but demand for settlement had reached the billions of dollars so the solution was not an easy one. He felt that all competing interests, with the mental health recipients considered as a number one priority, should be represented and somehow a solution found. TAPE 93-3, SIDE A Number 000 REPRESENTATIVE JAMES understood that providing the trust was established and the funds were then available for handling the mental health issues in the state, money still would have to be appropriated by the legislature and the legislature would have the authority to appropriate more money into or out of the fund for other purposes. She believed settlement of the mental health lands lawsuit was imminent and a push should be made to make it happen. Number 021 REPRESENTATIVE DAVIES asked if the DNR had considered making available lands that clearly identified revenue streams. COMMISSIONER OLDS felt it was in everyone's interest to include those lands, because anything in excess of the mental health needs would go into the general fund. He also felt that six percent of the state's revenue for mental health needs was high and if it came to a judgement of equity before the Supreme Court in terms of dollar volume, it would be hard to sustain that amount which was three times the amount used to generate resources to pay for mental health. Number 072 COMMISSIONER OLDS referred members to the one page outline of Title 38. MS. McCORD explained that the original document, enacted in 1957, basically established the laws for the territory of Alaska in regard to natural resources and land. She said the original 14 page Title 38 had grown into an 183 page document and in addition, there were over 400 pages of regulations. She disclosed Commissioner Olds had asked her to rework Title 38, a final draft of which would be reviewed by her by Friday (January 22), then given to the governor and the Department of Law for their review. She invited the committee to have a special hearing on the rework of Title 38. Number 160 COMMISSIONER OLDS introduced Raga Elim, Special Assistant and Legislative Liaison to the Resource Committee. He said the DNR would bring only a few bills to the legislature this year and the revision of Title 38 would be one of those. Number 191 REPRESENTATIVE HUDSON pointed out that since he and Representative Mulder served on the Regulatory Review Commission, and since he chaired the Labor and Commerce Economic Development Committee he hoped these committees would be a part of the process of the revision of Title 38. He stated the Speaker of the House had appointed a task force on economic development which would also be involved in the revision of Title 38. He then asked for an appointment with Asst. Commissioner McCord in order to review the status of the revision and how it might impact the committees. Number 216 RAGA ELIM, SPECIAL ASSISTANT AND LEGISLATIVE LIAISON said he looked forward to working with the committee and their staffs and offered himself as a facilitator between the DNR and the legislature. He said further that there would be a number of bills that would impact the DNR and promised to work with the legislature to provide information as needed. COMMISSIONER OLDS requested some lead time in providing information since most of his staff was in Anchorage. REPRESENTATIVE GREEN asked if the DNR would continue to operate as if new legislation had been enacted. His experience was that the permitting process, for example, was guided by what would be enacted as well as what was in place, so certain things had to be accomplished even if there was no statutory requirement to that effect. MS. McCORD said the DNR was looking at that process in its overview of Title 38 to see what steps could be legally recommended and sensibly deleted from existing statute to streamline the process. The requirements had to be observed as set up by case law and the Constitution, which gave the department some latitude, but the department would stay mindful of the responsibility to the public interest and for future generations, she added. Number 275 COMMISSIONER OLDS said the DNR's goal was to simplify and clarify the process and legislation must be started early in the session to be successful. Number 320 REPRESENTATIVE JAMES asked if the Title 38 revision would be seen by this year's session. COMMISSIONER OLDS said it was hoped the revision would be before the legislature this session. Number 355 CHAIRMAN WILLIAMS said the committee would request a separate hearing for the mental health trust lands. He noted Thursday's meeting had been changed to Wednesday, January 20, for an overview by the Department of Environmental Conservation, and on Friday, January 22, there would be an overview of the Department of Fish and Game. ADJOURNMENT There being no further business to come before the House Resources Committee, Chairman Williams adjourned the meeting at 9:55 a.m.
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