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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