Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/20/2023 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| Overview: Ancsa 14(c)(3) and the Municipal Lands Trustee Program | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 79 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 20, 2023
1:41 p.m.
MEMBERS PRESENT
Senator Forrest Dunbar, Chair
Senator Elvi Gray-Jackson
Senator Jesse Bjorkman
Senator Cathy Giessel
MEMBERS ABSENT
Senator Donald Olson, Vice Chair
COMMITTEE CALENDAR
OVERVIEW: ALASKA NATIVE CLAIMS SETTLEMENT ACT 14(C)(3) AND THE
MUNICIPAL LANDS TRUSTEE PROGRAM
- HEARD
SENATE BILL NO. 79
"An Act relating to the reclassification of first class cities
as second class cities; and providing for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SANDRA MOLLER, Director and Municipal Lands Trust Officer
Division of Community and Regional Affairs (DCRA)
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Municipal Lands
Trustee Program and the Alaska Native Claims Settlement Act
14(c)(3).
NATHAN MCCOWAN, Chair
Alaska Native Village Corporation Association
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony pertaining to the
Alaska Native Claims Settlement Act.
BEN MALLOTT, Vice President
Internal Affairs
Alaska Federation of Natives (AFN)
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony pertaining to the
Alaska Native Claims Settlement Act.
CHRIS GRUNDMAN, Program Manager
Municipal Lands Trustee Program
Division of Community and Regional Affairs
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions pertaining to the
Municipal Lands Trustee Program and the Alaska Native Claims
Settlement
ACTION NARRATIVE
1:41:17 PM
CHAIR FORREST DUNBAR called the Senate Community and Regional
Affairs Standing Committee meeting to order at 1:41 p.m. Present
at the call to order were Senators Giessel, Bjorkman, and Chair
Dunbar. Senator Gray-Jackson arrived immediately thereafter.
^OVERVIEW: ANCSA 14(c)(3) and THE MUNICIPAL LANDS TRUSTEE
PROGRAM
OVERVIEW: ALASKA NATIVE CLAIMS SETTLEMENT ACT 14(c)(3) AND THE
MUNICIPAL LANDS TRUSTEE PROGRAM
1:41:51 PM
CHAIR DUNBAR announced an overview of the Alaska Native Claims
Settlement (ANCSA)14(c)(3) and the Municipal Lands Trustee (MLT)
Program.
1:42:27 PM
SENATOR GRAY-JACKSON joined the meeting.
1:43:04 PM
SANDRA MOLLER, Director and Municipal Lands Trust Officer,
Division of Community and Regional Affairs (DCRA), Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
presented an overview of the Municipal Lands Trustee (MLT)
Program and the Alaska Native Claims Settlement (ANCSA) Act
14(c)(3). She began on slide and described how the MLT Program
got started:
History of MLT Program
Section 14(c)(3) of the Alaska Native Claims
Settlement Act (ANCSA) requires all Native village
corporations that receive land under the provisions of
Sections 14(a) and (b) of ANCSA to convey certain
lands to the existing municipality in the village or,
if no municipality exists, to the State in trust for
any municipality that may be established in the
future. Acceptance of the trust responsibility is
found in Alaska Statute (AS) 44.33.755, which defines
"municipality" as "only first or second-class cities
incorporated under the laws of the state." The lands
conveyed to the State in trust are called "municipal
trust lands."
The role of the MLT Program is basically two-fold:
1. Accepting land into trust from Village
Corporations, and
2. Managing and administering municipal trust land
until the village incorporates as a city.
1:45:54 PM
MS. MOLLER summarized slide 3, which listed all the ANCSA
villages in the MLT Program by regional corporation and
geographic area. Village corporations that received land under
ANCSA 14(c)(3) are on this list and in the MLT Program. She
pointed out that not all Alaska communities are ANCSA villages.
She said there were 103 communities in the program initially,
and about 12 to 13 are abandoned communities. For example,
residents no longer live on the island of Unga. However, the
Aleut Corporation still has the land and the requirement to
transfer the property to a public entity. The division calls
these vacant villages; they still have land but nobody to
transfer it to because there is no community.
1:47:13 PM
SENATOR DUNBAR said it is clear why some communities are still
in the MLT Program, but it is unclear why other communities
remain in the program. He asked why fairly well-established and
functioning communities stay in the MLT program.
MS. MOLLER replied that the MLT Program permits DCRA to take two
actions:
- it can accept land from a village corporation, and
- it can transfer land to a new city.
MS. MOLLER said that populations in MLT areas have communities,
but they have not decided to create a city. The program requires
a land transfer to a city, not a community association. This is
the big issue DCRA faces. The division can lease the land to
these communities.
1:48:35 PM
SENATOR GRAY-JACKSON asked about the letters next to community
names on slide 3.
MS. MOLLER directed the committee to the legend in the lower
right corner of the slide. She pointed out that the letter "C"
means the community "Completed 14(c)(3) Reconveyance" and "Z"
means "Completed with no MLT Lands." She said each community
has a back story, and the division can give more details if
members are interested.
1:49:24 PM
MS. MOLLER reviewed slide 4:
Appropriate Village Entity (AVE).
In most villages there is a village organization that
represents local residents in decisions about trust
lands. This may be a village council, a community
association, or some other group established in the
community. The recognized group is called the
"appropriate village entity" (AVE). The role of the
AVE is to speak for village residents.
The AVE is a partner with the MLT Program in
identifying land for conveyance under ANCSA 14(c)(3).
In communities that do not have an AVE, land uses are
voted on by local residents in a village meeting
conducted by MLT staff. Of the 83 communities still
subject to the MLT program, 58 have an identified AVE.
Once land is conveyed into trust, it is only available
for use with the approval of the AVE.
The MLT Program invites each AVE to make long term
plans for trust land. These plans help both the
community and MLT consider what land uses are in the
best interest of residents now and in the future. The
goal of the MLT Program is to work closely with the
AVE to ensure a good faith partnership.
1:50:09 PM
MS. MOLLER advanced to slide 5, which shows a snapshot of the
history of the MLT Program. She noted that ANCSA passed in 1971,
and the first lands the state took into trust as a partial
settlement happened nine years later. She explained some details
about the settlement process, stating communities vary in their
interest and involvement. DCRA works with communities that are
interested in the program. DCRA does not randomly reach out to
communities in the MLT Program; the role of DCRA is not that of
ANCSA 14(c)(3) enforcer. She reviewed slide 5:
Timeline Since Passage of ANCSA
Year Milestone
1971 Passage of ANCSA
1975 Enactment of AS 44.47.150 accepting trust
responsibility
1977 MLT program starts operations
1980 First lands taken into trust as a partial
settlement (Karluk)
1981 Passage of ANILCA, amending total acreage
required for reconveyance Implementation of
MLT regulations Recognition of Appropriate
Village Entities (AVEs) begins Completion of
the first evaluation of tender for land
settlement (Takotna)
1990 First deed for complete settlement (Ugashik)
1991-2022 Work with communities on settlement
agreements and leases
2023 Pending completion of 14(c)(3) reconveyance
to the State in Trust (Cantwell)
1:53:07 PM
MS. MOLLER reviewed slide 6, which shows some of the progress
that has been made:
Summary of MLT Community Status
There were originally 101 communities included as part
of the MLT program. A total of only eight (8)
communities have incorporated into a municipality, the
latest being in 1995. Another six (6) communities have
approved zero-acre settlement agreements as a "vacant
village, and one (1) other settlement with the re-
conveyed lands granted to a borough. All lands were
conveyed out of trust for three (3) other communities.
This leaves 83 communities that are still covered
under the MLT program, with approximately 11,500 acres
currently held in trust.
The status of village corporations (MLT program)
satisfaction of the 14(c)(3) reconveyance obligations.
Complete Incorporated 8
Complete No MLT Acreage 10
Complete With MLT Acreage 30
Partial With MLT Acreage 12
In-Process With no MLT Acreage 4
Not Complete No Progress 37
1:55:10 PM
SENATOR BJORKMAN asked about the unincorporated community of
Ninilchik that transferred a small parcel of land to the State
to be held in trust. He wondered what the benefit is for a
community to do this.
MS. MOLLER sought clarification about the question.
SENATOR BJORKMAN asked why a community would deed land to the
State to be held in trust.
MS. MOLLER replied that the State of Alaska only wants to accept
land into trust if the community has a strategy for its use. The
State is not interested in owning scattered sites around Alaska.
The Bureau of Land Management pushed to get ANSCA 14(c)(3)
settled in the early 1980s, and some communities just
transferred deeds in the momentum of the push. The State
received the bulk of deeds in that push, and it carries this
bureaucratic burden on behalf of future communities. She
expressed her belief that holding the land in trust only
benefits communities with plans for a future city.
1:58:23 PM
CHAIR DUNBAR clarified that the term "land into trust" has a
specific meaning in the federal context, and there are legal
reasons for putting land into a federal trust. He emphasized the
federal meaning differs from land held in trust under ANCSA
14(c)(3). He sought confirmation that communities are no longer
actively seeking this out and that the State does not
particularly want it.
MS. MOLLER replied yes, that is exactly right. She thanked him
for the clear distinction between federal and State trusts. She
said the terminology is often confusing. She reiterated that the
land held in trust to the State is specific to villages that
received land under ANCSA.
1:59:16 PM
MS. MOLLER summarized slide 7:
When the Trustee Role Ends
When a village incorporates as a city, the State will
convey to the city all the municipal trust land it
holds. An accounting will be made for all revenues
received, and these funds may be transferred to the
city.
A village may incorporate into a municipality prior to
the State accepting any reconveyance of municipal
trust lands. The newly formed city would then be
responsible for pursuing the transfer of municipal
trust lands under ANCSA 14(c)(3).
Village Year of Incorporation
Akutan 1979
Atqasuk 1982
Chignik 1983
St. George 1983
Atka 1988
False Pass 1990
Pilot Point 1992
Egegik 1995
1:59:48 PM
MS. MOLLER advanced to a map on slide 8, which showed a snapshot
of where the State owns land in trust. The circles on the map
depict the acreage the State has in full deeds. DCRA is
carefully looking at lands identified for conveyance; the State
only wants to accept more land into trust if a community puts
effort into becoming a city.
2:01:11 PM
MS. MOLLER reviewed slide 9, which identifies how lands held in
trust are used:
Site Control on Municipal Trust Land
Most of the Municipal Trust Land remains vacant where
raw land comprises approximately 9,760 acres. Known
improvements with active site control, such as leases,
easements, or permits, total around 1,750 acres. The
number of residential improvements or occupied acreage
(housing) has not been previously tracked and is
currently being evaluated.
Disposals of municipal trust land by deed is also an
option, however certain covenants must be included in
the conveyance to allow for the transfer of the land
to a city when incorporated. Majority of prior
conveyance by deed have been for residential purposes.
Approximate acreage are shown for the following uses:
990 acres Airport Properties (mostly managed by
ADOT&PF)
75 acres Schools (DEED, Boroughs, or Regional/
Village Corp.)
225 acres Landfills and Sewage Lagoons
105 acres Other Infrastructure
240 acres Easements and ROWs (Public Access and
Utilities)
114 acres Water Facilities/Well Houses/Public
Works Facilities
11 acres Bulk Fuel Storage and Power Plants
2:03:10 PM
MS. MOLLER reviewed slide 10:
(MLT) Program Philosophy
The Municipal Lands Trustee Program is guided by a
Statement of Trust Philosophy. Among other things, the
Statement of Trust Philosophy provides:
1. The State CANNOT acquire title to nor administer
municipal trust lands for its own sovereign use
and benefit.
2. Municipal trust lands are held for a future city
and are for the ultimate general welfare of all
inhabitants, now and in the future.
3. Great weight will be given by the Trustee to the
views of the residents.
4. The Trustee has the duty to be responsive both to
present needs of the village and to foreseeable
needs of any future city.
5. The village should not find it necessary to
incorporate as a city only for the purpose of
obtaining control of the municipal trust lands.
2:03:48 PM
MS. MOLLER summarized slide 11, which identifies lands that
potentially should or should not go into trust:
Accepting Municipal Trust Land
Reaching a 14(c)(3) agreement is best done by
interaction between the AVE, the village corporation,
and the MLT Program. Sharing of information,
cooperation, and the involvement of local residents
are vital to a successful 14(c)(3) settlement.
MLT asks five questions in deciding to accept a
14(c)(3) proposal:
1. Is acceptance of the 14(c)(3) land in the best
interest of a future city?
2. Does the proposal include all improved land in
the village?
3. Is there enough land included which is clearly
essential to meet all present or foreseeable
community needs?
4. Would future land use patterns created by the
conveyance impair the economic viability of the
village corporation?
5. Is the acceptance of the land consistent with the
views of the village residents?
The end product is a 14(c)(3) agreement that works for
all parties. The 14(c)(3) land will reflect the
community's view of the future.
2:04:19 PM
MS. MOLLER reviewed slide 12:
Management of Municipal Trust Lands
After municipal trust land is identified and conveyed
to the State in trust, the MLT Program takes on the
role of land manager. A land status record and history
of each parcel of land is maintained. The MLT staff
also takes any action necessary to dispose of land or
interest in land such as the issuance of leases,
easements or permits. In regard to disposals, the MLT
Program is guided by some important legal and
regulatory requirements:
1. No disposal may be made without prior public
notice.
2. The AVE or village residents must approve of the
disposal action.
3. Disposals will be for at least fair market value
unless waived.
4. The fair market value requirement may be waived
for public or charitable purposes, village
relocation, equitable interest, or for
residential expansion.
MLT staff are currently tasked with the following
priorities:
• Inventorying all known improvements located on
municipal trust lands.
• Secure site control (leases, easements, or
permits) when and where appropriate.
• Convey by deed, when possible, lands to the
owners of the improvements.
• Update and keep current the status of all lands
in GIS and the MLT dashboard (both under
development).
2:05:44 PM
MS. MOLLER reviewed slide 13:
Current Situation and Next Steps
Reality is
• Villages struggle to, or even resist incorporating
into a municipality.
• Some village corporations and tribes desire for the
lands to be conveyed back to the village corporation
or to the tribe, or be released from the obligation
entirely.
• A cloud on title remains on village corporation
lands subject ANCSA 14(c)(3) to reconvey lands to a
city or the State in Trust. Any use of the land
authorized by the village corporation requires the
State's written disclaimer of interest.
• The State's trust responsibility under ANCSA
requires that "all" municipal trust lands be
transferred to a city when incorporated. This
conflicts with current MLT regulations that provide
for the disposal of lands by deed.
• No deadline to transfer the lands.
• State does not benefit from owning isolated parcels
of land across rural Alaska.
The division supports maximum local self-governance.
2:07:19 PM
MS. MOLLER advanced to slide 14, stating the idea of the MLT
Program was great initially but has probably run its course. The
State requires federal legislation to address this issue
differently, which DCRA supports. The COVID pandemic stalled
legislation introduced that addressed this issue. DCRA is
interested in discussions that sunset the MLT program. She said
the State should retain some lands for airports and rights of
way. She reviewed slide 14:
Issues and Priorities
Issues to be addressed through changes in federal law,
state regulations, and department policy:
• Federal legislation to amend ANCSA would be
required to remove the 14(c)(3) obligation.
• If 14(c)(3) were to be amended, consideration
should be given as to what to do with private
improvements, public airport properties and
schools, as well as preserving public access.
• Changes to State regulations may be needed to
address the conflict with the State's trust
responsibility and the ability to convey land by
deed without requiring overly stringent covenants
such as reversionary clauses to that would
transfer the land and improvements to the city
upon incorporation.
MS. MOLLER advanced to slide 15, which reads:
Need more information?
Website:
www.commerce.alaska.gov/web/dcra/PlanningLandManagement
/MunicipalLandTrusteeProgram
The following publications are available:
• An Overview of the Municipal Lands Trustee Program
• Getting Started on ANCSA 14(c)(3)
• Statement of Trust Philosophy
• Municipal Trust Land Regulations
• Program Flyer: What is an "Appropriate Village
Entity?"
2:09:07 PM
SENATOR GRAY-JACKSON asked whether the MLT program manages
unoccupied land.
MS. MOLLER answered the program manages both. It manages vacant
land and about 1,700 acres with a purpose, like a water
treatment plant or a school.
SENATOR GRAY-JACKSON asked about DCRA's relationship with a
village after it becomes a city, like Akutan.
MS. MOLLER replied that DCRA wishes them well and graduates them
from the MLT Program. She said that local government specialists
help graduated cities with elections and setting up policies.
CHAIR DUNBAR moved down the agenda and asked Mr. McCowan to
begin his invited testimony.
2:10:27 PM
NATHAN MCCOWAN, Chair, Alaska Native Village Corporation
Association (ANVCA), Anchorage, Alaska, gave invited testimony
about the Alaska Native Claims Settlement Act. ANVCA is a
nonprofit entity organized to advocate for the specific needs of
village and urban corporations pursuant to ANCSA. He highlighted
the history of ANCSA, stating there were about 220 village
corporations originally. That number has declined to 176 due to
mergers in the late 1970s and 1980s. Some member entities
completed the ANCSA 14(c) process, and others are still in the
process and encountering problems. He said ANCSA was a complex
piece of legislation that involved balancing a State land freeze
with land selections at play, the development of Prudhoe Bay,
and the extinguishment of claims of the Alaska Native people.
One of the questions that arose was what to do with the
individual localities, the individual villages, cities, and the
private property interests of individuals who had created homes
in some of the unincorporated portions of the state.
2:12:20 PM
MR. MCCOWAN briefly described ANCSA 14(c):
- ANCSA 14(c)(1) allowed individuals who had homes or businesses
to receive a quitclaim deed to their property.
- ANCSA 14(c)(2) did the same thing with nonprofits, which
affects mostly churches.
- ANCSA 14(c)(3) and (4) had to do with turning over land,
existenting local city municipalities, future municipalities,
and airstrips and airports.
MR. MCCOWAN said ANSCA has different provisions for different
needs.
2:13:23 PM
MR. MCCOWAN said only eight communities created cities after
ANCSA. He noted that most of them have fisheries as a base of
operations. He pointed out that St. George created a city to
capture a fish tax. The primary reason cities are built is for
the oversight and maintenance expenses of government. He said
that it becomes a difficult proposition for many of these
locales, from a cost-benefit analysis, to justify having a city
government if the locale cannot generate a stable tax regime. He
pointed out that for some of these locales, having a city
government can limit communities from a flexibility standpoint.
MR. MCCOWAN said that ANVCA is seeking a solution to the
cumbersome MLT Program for members challenged with the
development of critical infrastructure, the expansion of
housing, the development of a new cemetery, and other projects.
ANVCA would like to see program improvement akin to the 2004
[Alaska Land Transfer Acceleration Act] to hasten the process of
getting land back in the hands of village corporations. ANVCA
shares some of the concerns DCRA has about rights of access,
private property interests, and other matters. However, member
interests are better served over the long term by returning
lands to village corporations. He said village corporations can
make more productive decisions on the ground than working with
the small but mighty group in the MLT Program.
CHAIR DUNBAR thanked Mr. McCowan and asked Mr. Mallott to begin
his invited testimony.
2:16:57 PM
BEN MALLOTT, Vice-President, Internal Affairs, Alaska Federation
of Natives (AFN), Anchorage, Alaska, gave invited testimony
about the Alaska Native Claims Settlement Act. He gave an
overview of the AFN organization and said that AFN and ANVCA are
closely aligned on this issue and its resolution. AFN affirms
its self-determination and the direct management and interest of
its own lands. ANCSA 14(c)(3) served a purpose decades back, but
now the Act is a relic from the past. He said that he has worked
with Congress to address these issues. The State has offered
limited or no clear direction on what to do about this issue. He
appreciated the director's testimony, which addressed barriers
on a federal level. He said that many communities have no
interest in becoming a city, and there are more efficient routes
to resolve these land issues.
2:19:54 PM
SENATOR DUNBAR underscored some of the topics discussed, stating
about 10,000 acres are in limbo. These lands are fairly
valuable, near communities or historic communities. He expressed
his belief that these lands should be put to beneficial use back
in the hands of Alaskans. The legislature, administration, and
other stakeholders need to work together on this program; his
aim is for the legislature to speak to Congress with one voice
about this issue.
2:20:50 PM
SENATOR BJORKMAN asked for recent examples of lands placed in
trust to the state.
MS. MOLLER answered that DCRA has not accepted any lands in the
last five years. She directed the question to Mr. Grundman, who
might have the exact date when the last deed occurred.
2:21:27 PM
CHRIS GRUNDMAN, Program Manager, Municipal Lands Trustee
Program, Division of Community and Regional Affairs, Department
of Commerce, Community and Economic Development, Anchorage,
Alaska, answered that the most recent community to have nearly
completed the process was Cantwell. It went through the approval
and selection of lands process, the survey was completed, and
the deed is now under negotiation. DCRA is doing a final review
of the title and addressing two minor encroachment issues. The
deed will be conveyed to the State and held in trust around the
end of the fiscal year.
SENATOR BJORKMAN asked why Cantwell chose to put those lands
into trust.
MR. GRUNDMAN answered that one benefit is that it removes the
encumbrance on the title for that village corporation. The
village corporation's hands are tied; the corporation has to
have the State's concurrence to convey any other land or
authorize third-party land uses until the corporation is clear
of its ANCSA 14(c)(1), (2), and (3) obligations. Once the
obligation is clear and the reconveyance settled, all the
remaining lands are free to use as appropriate.
2:23:25 PM
CHAIR DUNBAR sought clarification that village corporations put
land in trust, not communities.
MR. GRUNDMAN answered correct. The land comes from village
corporations, but communities review, select, and approve which
lands are conveyed to the State. This process requires the
State's concurrent review and approval.
CHAIR DUNBAR asked when the last time was that lands came out of
trust and into the hands of another entity that could use it.
MR. GRUNDMAN expressed his belief that the last city was
incorporated in 1995. He said cities can use one of two methods
to acquire title to ANCSA 14(c)(3) lands:
- The city can negotiate it directly from the village
corporation or
- The State can transfer lands it holds in trust within one
fiscal year, along with all the proceeds from the rent or sale
of the properties.
2:24:40 PM
SENATOR BJORKMAN asked about projects a village corporation
might want to do with land other than land placed into trust for
a potential city.
MR. GRUNDMAN answered that several community projects, like
public services, water treatment facilities, landfills, and
utilities, may benefit the community. These types of services
are done at a local level with state assistance. Corporations
identify and select lands for residential development through
housing authorities for residential purposes.
MR. GRUNDMAN clarified that those lands in trust are available
for those same purposes; however, they must go through the
regulatory process for review and approval. It requires public
notice and a resolution from the AVE or village resident. DCRA
can authorize public service projects through a lease, deed, or
easement.
2:26:46 PM
MS. MOLLER expanded on her comments, stating a community that
graduates out of the MLT Program would work with the Local
Boundary Commission to become a city. DCRA would continue to
work with the community on local government matters regardless
of its municipal status. She expressed appreciation to the
committee for taking the time to hear the ANCSA and MLT Program
presentation.
2:27:34 PM
There being no further business to come before the committee,
Chair Dunbar adjourned the Senate Community and Regional Affairs
Standing Committee meeting at 2:27 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DCCED_DCRA MLT Presentation to SCRA 2023-04-20 VER 3.0 (002).pdf |
SCRA 4/20/2023 1:30:00 PM |
DCCED_DCRA MLT Presentation to SCRA 2023-04-20 VER 3.0 |