Legislature(1995 - 1996)
03/27/1995 10:40 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 27, 1995
10:40 a.m.
TAPES
SFC-95, #23, Side 1 (000-352)
CALL TO ORDER
Senator Rick Halford, Co-chairman, convened the meeting at
approximately 10:40 a.m.
PRESENT
All committee members (Co-chairmen Halford and Frank and
Senators Phillips, Rieger, Sharp, and Zharoff) were present
with the exception of Senator Donley.
ALSO ATTENDING: Representative Parnell; Representative
Mackie; Del Smith, Deputy Commissioner, Dept. of Public
Safety; Nico Bus, Acting Director, Division of Support
Services, Dept. of Natural Resources; Mike Greany, Director,
Legislative Finance Division; Ken Bischoff, Director,
Division of Administrative Services, Dept. of Public Safety;
Juanita Hensley, Chief, Driver Services, Dept. of Public
Safety; and aides to committee members and other members of
the legislature.
SUMMARY INFORMATION
SB 16 - INCREASE LAND GRANT TO UNIV. OF ALASKA
Amendments 1 and 2 were adopted for incorporation
within CSSB 16 (Fin) which was then REPORTED OUT
of committee with a zero fiscal note from the
Dept. of Revenue, 24.0 note from Dept. of Natural
Resources (Information Services), 71.0 note from
Dept. of Natural Resources (Land Development),
34.0 note from the Dept. of Fish and Game, and
100.0 note from the University.
HB 26 - DEPOSITIONS IN CRIMINAL CASES
Brief testimony was presented by Representative
Parnell. CSHB 26 (Jud) was then REPORTED OUT of
committee with zero fiscal notes from the Dept. of
Public Safety, Dept. of Law, and Court System.
HB 79 - MUNICIPAL LAND ERROR CORRECTIONS
Discussion was had with Representative Mackie and
Nico Bus. An amendment proposed by Senator Frank
was adopted but then held pending receipt of a
legal opinion
regarding impact of the change on the title.
SENATE BILL NO. 16
An Act relating to the University of Alaska and
university land, authorizing the University of Alaska
to select additional state public domain land, and
defining net income from the University of Alaska's
endowment trust fund as 'university receipts' subject
to prior legislative appropriation.
Co-chairman Halford directed that SB 16 be brought on for
consideration. Co-chairman Frank referenced two amendments
and explained that Senator Sharp worked with the University
to develop an amendment (amendment no. 2) to address his
concerns. Amendment no. 1 is a technical amendment deleting
the word "displaying" at page 10, line 8, and replacing it
with "disposing." Co-chairman Frank than MOVED for adoption
of CSSB 16 (CRA) as a working document. No objection having
been raised, IT WAS SO ORDERED.
Senator Sharp MOVED for adoption of amendment no. 2. Co-
chairman Halford announced that there was OBJECTION for
purposes of an explanation. Senator Sharp advised that the
amendment addresses earlier concerns by members that the
state not get into a "Catch 22" situation similar to the
mental health lands. The committee seeks to ensure that
entry would still be allowed under current Dept. of Natural
Resource regulations for filings, leases, mining claims,
etc. on lands nominated for selection by the University.
Proposed language allows for that under existing Dept. of
Natural Resource authority. Provisions within amendment no.
2 specify that 90% of any leases or proceeds from
transactions that occur after nomination, during the
selection process by the University, would be held in
escrow. If the land is indeed transferred to the
University, the funds would also be transferred to the
University. The 10% would be withheld for processing and
Dept. of Natural Resource costs. Co-chairman Halford called
for objections or questions concerning the amendment. No
objection having been raised, amendment no. 2 was ADOPTED.
Co-chairman Frank MOVED and requested unanimous consent for
adoption of technical amendment no. 1, explaining that it
would correct a typographical error. Senator Zharoff
inquired concerning the difference between "displaying" and
"disposing." Co-chairman Frank remarked that all the land
is on display.
Senator Zharoff referenced the section entitled "CUSTOMARY
AND TRADITIONAL USES TO BE CONTINUED" at page 10, lines 6
through 11, and asked is subsistence and other uses would
continue. Co-chairman Frank responded that they would occur
to the extent it is compatible with the use contemplated by
the University. That is the intent and part of the reason
for tort immunity provisions in the next section of the
legislation. Senator Zharoff voiced concern that much would
depend upon disposal of the land to a third party. As an
example, he voiced his hope that a mining lease or other
arrangement with the University would continue to allow for
customary and traditional uses. He reiterated concern that
disposal to third-party, private ownership would involve
other restrictions. Co-chairman Frank acknowledged that the
issue depends on use and the degree to which use conflicts
with people using the land for customary and traditional
uses. He voiced his belief that most of the time there
would be no conflict, but he acknowledged that there may be
some. It is difficult to lay out every example or
circumstance and treat each differently in law. That is why
the intent is to maintain customary and traditional uses to
the maximum extent practicable. Senator Zharoff asked that
he be allowed to work with the sponsor of the legislation on
a possible letter of intent. Co-chairman Frank concurred.
Co-chairman Halford called for further questions or
objections to amendment no. 1. No objection having been
raised, amendment no. 1 was ADOPTED.
Co-chairman Frank MOVED and requested unanimous consent for
passage of CSSB 16 (Fin) with individual recommendations.
No objection having been raised, CSSB 16 (Fin) was REPORTED
OUT of committee with the following fiscal notes:
Dept. of Revenue 0
Dept. of Natural Resources (Land Dev.) 71.0
Dept. of Natural Resources (Info.Res.) 24.0
Dept. of Fish and Game 34.0
University 100.0
Co-chairman Frank and Senators Rieger and Sharp signed the
committee report with a "do pass" recommendation. Co-
chairman Halford and Senator Zharoff signed "no
recommendation." Senator Randy Phillips signed "Do not pass
unless amended."
CS FOR HOUSE BILL NO. 26(JUD)
An Act amending Rule 15, Alaska Rules of Criminal
Procedure, relating to depositions.
Co-chairman Halford directed that CSHB 26 (Jud) be brought
on for discussion. Representative Parnell, sponsor of the
legislation, came before committee. He explained that the
bill would amend Rule 15 of the Alaska Rules of Criminal
Procedure, governing depositions in criminal cases. At the
present time, Rule 15 allows a deposition to be taken upon a
showing of good cause. The problem is that the rule has
become a tool for aggressive harassment of witnesses,
particularly victims of sexual assault. In federal courts,
instead of showing good cause, a party is required to show
exceptional circumstances for taking the deposition. That
makes sense. The proposed bill attempts to raise the
current state standard for the deposition to "an exceptional
circumstances standard." In the typical case, the victim
has already given a recorded statement to the police and the
grand jury. Those statements are available to the defense.
The bill has broad-based support and is accompanied by zero
fiscal notes.
Senator Randy Phillips inquired concerning the impetus
behind the legislation. Representative Parnell explained
that Mr. McNally, Chief of the Criminal Division, Dept. of
Law, highlighted ten changes to existing criminal rules that
would be of benefit. This is one of those recommendations.
The Representative advised that he worked closely with staff
at the Dept. of Law to develop the proposed legislation. He
further advised that department staff was present to speak
to the bill.
Senator Phillips MOVED for passage of CSHB 26 (Jud) with
individual recommendations and the accompanying zero fiscal
notes. No objection having been raised, CSHB 26 (Jud) was
REPORTED OUT of committee with zero notes from the Alaska
Court System, Dept. of Law, and Dept. of Public Safety. Co-
chairmen Halford and Frank and Senators Phillips, Rieger,
and Sharp signed the committee report with a "do pass"
recommendation. Senator Zharoff signed "no recommendation."
CS FOR HOUSE BILL NO. 79(FIN)
An Act allowing the Department of Natural Resources to
quitclaim land or interests in land, including
submerged or shore land, to a municipality to correct
errors or omissions of the municipality when
inequitable detriment would result to a person due to
that person's reliance upon the errors or omissions of
the municipality.
Co-chairman Halford directed that CSHB 79 (Fin) be brought
on for discussion. Representative Jerry Mackie, sponsor,
came before committee. He explained that the bill relates
to a 50-year-old problem that occurred at Skagway
immediately after World War II. The river was eroding the
front portion of the city, and the Army Corps of Engineers
constructed a dike. The city subsequently backfilled behind
the dike and subdivided and sold the property. Owners of
the lots now have clouded title which raises problems when
one attempts to sell or transfer a lot. The community high
school is also located on the property. The Dept. of
Natural Resources has been unable to rectify the problem. A
statutory fix is thus necessary. The bill contains an 18-
month sunset provision which allows a window within which
the Dept. of Natural Resources could fix the problem for
Skagway. That window would then cease to exist.
Representative Mackie referenced a map of the area showing
the 10 to 12 lots impacted by the bill. He reiterated that
the mistake
was made by the community prior to statehood, zoning laws,
etc. Skagway has had perpetual problems with the issue.
Both the Dept. of Natural Resources and the city of Skagway
requested the proposed bill.
Senator Randy Phillips asked that the Dept. of Natural
Resources contact communities to ensure that no others are
experiencing a problem similar to that at Skagway.
Representative Mackie advised that Skagway has not yet
reached its entitlement. Land impacted by the proposed bill
would apply toward that cap.
Senator Zharoff acknowledged that similar legislation had
been before the legislature for a number of years. The
issue was discussed in Senate Resources, and an amendment to
resolve the problem was included in another bill.
Co-chairman Halford asked if the bill would cover other
municipalities. Representative Mackie responded negatively.
Co-chairman Frank noted that his concern at the time Senate
Resources amended Senator Leman's bill was "the broad
application of the opportunity to control submerged or
tidelands." He then voiced his understanding that the
proposed bill reflects a "limited application for
tidelands." Representative Mackie concurred.
In response to an additional question from Co-chairman
Halford, Representative Mackie advised that Skagway is a
first class city which has not received its full entitlement
from the state. Co-chairman Halford said he would feel more
comfortable had Senate Resources reviewed the bill. He
again sought assurance that the legislation would have no
other application than to Skagway.
NICO BUS, Legislative Liaison, Dept. of Natural Resources,
came before committee. He said that the department would
contact the various municipalities. He added that, to the
best of his knowledge, no other municipality qualifies under
the terms of the bill. Co-chairman Frank asked what feature
of the bill limits it to Skagway. Representative Mackie
voiced his understanding that as the bill is drafted, with
the criteria laid out, no other municipalities have brought
similar problems to the department's attention. The
department has attempted to resolve the problem for ten
years. It was determined that the only way to do so was per
the wording in the present bill. Co-chairman Halford voiced
concern that language within the bill would lead people to
believe that if they relied on an error by any municipality,
the Dept. of Natural Resources is authorized to "give them
the state land to make up the problem." The bill only
applies to the entitlement, if an entitlement remains. If
the municipality has no remaining entitlement, the bill
still works. Co-chairman Frank suggested limiting the bill
to first class cities.
Senator Phillips asked how the Dept. of Natural Resources
determined no other communities would be involved. Mr. Bus
explained that the Dept. of Community and Regional Affairs,
Alaska Municipal League, and Dept. of Natural Resources have
all been involved in both the issue and numerous legislative
hearings over a number of years. There has been sufficient
public process but no feedback from "any other
municipalities."
Co-chairman Frank MOVED to delete the word "municipality"
and insert "first class city" in lieu thereof throughout
subsection (11) on pages 3 and 4. Other members raised the
issue of a possible title change to the House legislation.
Co-chairman Frank voiced his belief that the wording change
would be consistent with title language referring to a
municipality. Co-chairman Halford called for objections to
the amendment. None were forthcoming, and the amendment was
ADOPTED for incorporation within a Senate Finance Committee
Substitute.
Senator Randy Phillips MOVED that SCS CSHB 79 (Fin) pass
from committee with individual recommendations and
accompanying zero fiscal notes. Several scenarios for
changing the wording within subsection (11) without
impacting the title were suggested by Co-chairman Frank and
Senator Rieger. Co-chairman Halford subsequently suggested
that a legal opinion be obtained. Senator Phillips withdrew
his motion for passage, and the bill was HELD in committee
pending receipt of the above-noted opinion.
ADJOURNMENT
The meeting was adjourned at approximately 11:05 a.m.
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