Legislature(1999 - 2000)

04/05/2000 03:20 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SENATE RESOURCES COMMITTEE                                                                                        
                    April 5, 2000                                                                                               
                      3:20 p.m.                                                                                                 
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Rick Halford, Chairman                                                                                                  
nator Robin Taylor, Vice Chairman                                                                                               
Senator Pete Kelly                                                                                                              
Senator Lyda Green                                                                                                              
Senator Sean Parnell                                                                                                            
Senator Georgianna Lincoln                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Jerry Mackie                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CS FOR SENATE BILL NO. 235(TRA)                                                                                                 
"An Act authorizing the exchange of land between the Alaska                                                                     
Railroad Corporation and Eklutna, Inc., between the Alaska Railroad                                                             
Corporation and the United States Department of the Army and the                                                                
United States Department of the Air Force, between the Alaska                                                                   
Railroad Corporation and Chugach Alaska Corporation, and between                                                                
the Alaska Railroad Corporation and the Municipality of Anchorage;                                                              
authorizing the transfer of land between Alaska Railroad mileposts                                                              
133 and 134 from the Alaska Railroad Corporation to certain named                                                               
individuals; and providing for an effective date."                                                                              
                                                                                                                                
     -MOVED CSSB 235(TRA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 344(FIN)                                                                                                  
"An Act authorizing a land exchange between the Department of                                                                   
Natural Resources and Alaska Hardrock, Inc.; approving a long-term                                                              
lease of certain Alaska Railroad Corporation land at Healy; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     -MOVED CSHB 344(FIN) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE CONCURRENT RESOLUTION NO. 3                                                                                              
Relating to the sovereignty of the State of Alaska and the                                                                      
sovereign right of the State of Alaska to manage the natural                                                                    
resources of Alaska.                                                                                                            
                                                                                                                                
     -MOVED SCR 3 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
SB 235 - See Transportation minutes dated 3/2/00.                                                                               
                                                                                                                                
HB 344 - No previous action.                                                                                                    
                                                                                                                                
SCR 3 - No previous action.                                                                                                     
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Mr. Dale Bondurant                                                                                                              
31864 Moonshine Drive                                                                                                           
Soldotna, AK  99669                                                                                                             
POSITION STATEMENT:  Supports SCR 3                                                                                             
                                                                                                                                
Ms. Whitney Highland                                                                                                            
Staff to Senator Leman                                                                                                          
Alaska State Capitol                                                                                                            
Juneau, AK  99801                                                                                                               
POSITION STATEMENT:  Testified for the sponsor of SB 235                                                                        
                                                                                                                                
Ms. Carol Carroll, Director                                                                                                     
Division of Support Services                                                                                                    
Department of Natural Resources                                                                                                 
400 Willoughby Ave.                                                                                                             
Juneau, AK  99801-1724                                                                                                          
POSITION STATEMENT:  Answered questions regarding HB 344                                                                        
                                                                                                                                
Mr. Charlie Green                                                                                                               
Usibelli Coal                                                                                                                   
100 Cushman St., Suite 210                                                                                                      
Fairbanks, AK  99701                                                                                                            
POSITION STATEMENT:  Answered questions regarding HB 344                                                                        
                                                                                                                                
Mr. Charlie Boddy                                                                                                               
Government Relations                                                                                                            
Usibelli Coal                                                                                                                   
100 Cushman St.                                                                                                                 
Fairbanks, AK  99701                                                                                                            
POSITION STATEMENT:  Answered questions regarding HB 344                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-19, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN HALFORD called the Senate Resources Committee meeting to                                                               
order at 3:20 p.m.  Present at the call to order were Senators Pete                                                             
Kelly, Taylor, Green, Parnell, Lincoln and Chairman Halford.  The                                                               
first order of business to come before the committee was SCR 3.                                                                 
                                                                                                                                
           SCR  3-SOVEREIGNTY OF THE STATE; RESOURCES                                                                           
                                                                                                                                
SENATOR TAYLOR, sponsor of SCR 3, explained that SCR 3 addresses                                                                
where Alaska stands in regard to the federal mandate over fish and                                                              
game management on federal lands in Alaska.   At present, the                                                                   
Alaska Department of Fish and Game (ADFG) is negotiating with                                                                   
federal agencies about fish and game management in rivers.  Senator                                                             
Taylor said he believes the ADFG negotiations completely violate                                                                
the Governor's comment that no Governor should ever barter away the                                                             
state's sovereign right to manage its lands, waters and resources.                                                              
The federal government is violating the Tenth Amendment and                                                                     
attempting to treat Alaskans as second class citizens.  It is also                                                              
violating the 14th Amendment and about 11 different provisions of                                                               
the Alaska Constitution according to two different court cases; the                                                             
Totemoff case and the McDowell case.  SCR 3 tells Congress it has                                                               
made a mistake and asks it to remove the federal mandate and to                                                                 
support the Governor's efforts to overturn the Katie John case.                                                                 
                                                                                                                                
MR. DALE BONDURANT, representing himself, stated support for SCR 3.                                                             
He recounted a discussion between Senator Stevens and Mr. Mitchell                                                              
at a Congressional hearing in 1978 in which Senator Stevens said,                                                               
                                                                                                                                
     It's another thing to give the Secretary of Interior veto                                                                  
     rights and on the pretext of saying that subsistence                                                                       
     provisions in Alaska law are not adaptable to protect the                                                                  
     Alaska Natives and give them the right to give back to the                                                                 
     Department of Interior the overriding controls of fish and                                                                 
     game on federal lands in Alaska.  It violates the intent of                                                                
     the statute that would deny the states the [inaudible] and, in                                                             
     violation of what I consider to be inherent constitutional                                                                 
     rights, of the State to equality.  We are an equal partner in                                                              
     the Union and we are not to be treated that way.  Now, if we                                                               
     want to go into some cooperative management program where the                                                              
     federal government participates in it and if it appoints the                                                               
     joint board that's one thing, but to leave veto powers and the                                                             
     right to preempt the state is wrong.                                                                                       
                                                                                                                                
Mr. Mitchell responded,                                                                                                         
     The federal government has an interest out there.  They can                                                                
     enforce, and all we do with oversight provision - I can't                                                                  
     expect the Senator to respectfully disagree with me - is to                                                                
     force the Secretary of the Interior to do something positive                                                               
     for a change.  He's got that last right.                                                                                   
                                                                                                                                
Senator Stevens then said,                                                                                                      
     He does not have it today.  The [inaudible] Act does not give                                                              
     him the right.  He has the right to post an area for hunting                                                               
     but he does not have a right to take away from the state the                                                               
     right to manage hunting.  Now, under this bill, he would be                                                                
     entitled again, under the pretext that the state subsistence                                                               
     provision for Natives was not sufficient and to take over the                                                              
     entire management on federal lands, military posts, BLM, park                                                              
     lands, fish and wildlife lands, under the pretext of one                                                                   
     incident, he could take back the whole thing.                                                                              
                                                                                                                                
MR. BONDURANT stated it is time for Alaska to stand up and say it                                                               
has a sovereign right like any other state.                                                                                     
                                                                                                                                
There being no one else wishing to testify on SCR 3, SENATOR TAYLOR                                                             
moved SCR 3 from committee with individual recommendations.  There                                                              
being no objection, the motion carried.                                                                                         
                                                                                                                                
          SB 235-APPROVING LAND TRANSFERS FOR RAILROAD                                                                          
                                                                                                                                
SENATOR LOREN LEMAN, sponsor of SB 235, explained that the measure                                                              
deals with land transfers among the Alaska Railroad Corporation                                                                 
(ARRC), the U.S. Army, the U.S. Air Force, the Municipality of                                                                  
Anchorage (MOA), and Eklutna, Inc.  He asked Ms. Highland to                                                                    
present the sponsor statement and answer questions.                                                                             
                                                                                                                                
MS. WHITNEY HIGHLAND, an intern to Senator Leman, read the                                                                      
following statement.                                                                                                            
                                                                                                                                
     SB 235 authorizes the ARRC to enter into several land exchange                                                             
     and transfer agreements needed for a track upgrade and                                                                     
     realignment project.  This bill approves exchanges of railroad                                                             
     land for certain parcels held by five landholders who are the                                                              
     Army, the Air Force, Eklutna, Inc., Chugach Alaska                                                                         
     Corporation, and the Municipality of Anchorage (MOA).  SB 235                                                              
     also approves the conveyances of 5.1 acres to certain private                                                              
     landowners in Chugiak who live adjacent to railroad right-of-                                                              
way.  It is federal law that abandoned railroad land will be                                                                    
reverted back to the federal government after 18 years.  The                                                                    
federal government would then deed the land out to the adjacent                                                                 
landowners.  SB 235 thus accelerates a land transfer that is                                                                    
already required to occur under federal law.  The exchanges and                                                                 
transfers will allow the railroad's track realignment project                                                                   
between Anchorage and Wasilla to proceed and will also allow the                                                                
Department of Transportation and Public Facilities to relocate a                                                                
portion of the Seward Highway just north of Seward.  Upgrading and                                                              
realigning the track will increase safety and efficiency.  A                                                                    
straighter track is safer due to reduced track and equipment wear,                                                              
consistency in train handling, increased sight distance, and                                                                    
reduced maintenance requirements.                                                                                               
                                                                                                                                
     Another benefit of this project is that the running time                                                                   
     between Anchorage and Wasilla will be decreased from 95                                                                    
     minutes to less than 55 minutes, making commuter service a                                                                 
     more viable option.  This would also mean a potential                                                                      
     reduction in the traffic growth and impact on the Glenn and                                                                
     Parks Highway.  Most importantly for the communities                                                                       
     neighboring the railroad, this project includes upgrades to                                                                
     vehicle crossings and public access amenities that will                                                                    
     enhance safety and access across the tracks.                                                                               
                                                                                                                                
     The railroad plans an investment of between $45 and $60                                                                    
     million for its first phase of improvements and these funds                                                                
     will come from federal transportation grants as well as the                                                                
     Alaska Railroad's operating revenues.  No general funds will                                                               
     be used for this project.  This project is supported by a                                                                  
     number of organizations including the Alaska Visitors'                                                                     
     Association, the Alaska Chamber of Commerce, Chugiak-Eagle                                                                 
     River Chamber of Commerce, Palmer Chamber of Commerce, Wasilla                                                             
     Chamber of Commerce, Anchorage Economic Development                                                                        
     Corporation, Matanuska-Susitna Convention and Visitors'                                                                    
     Bureau, Anchorage Convention and Visitors' Bureau, and the                                                                 
     City of Wasilla.                                                                                                           
                                                                                                                                
CHAIRMAN HALFORD noted that, being a member of the Transportation                                                               
Committee, he has reviewed this legislation and therefore has no                                                                
questions.                                                                                                                      
                                                                                                                                
Number 879                                                                                                                      
                                                                                                                                
SENATOR LINCOLN asked if anyone else would be testifying on SB 235.                                                             
                                                                                                                                
CHAIRMAN HALFORD said no one else signed up but that                                                                            
representatives of ARRC are available to answer questions.  He                                                                  
noted a House hearing is being held on the same topic.                                                                          
                                                                                                                                
SENATOR LINCOLN asked whether the realignment will have any effect                                                              
on the Coastal Trail.                                                                                                           
                                                                                                                                
MS. HIGHLAND responded that Senator Leman is aware of that issue                                                                
which is very distinct and separate from SB 235.                                                                                
                                                                                                                                
CHAIRMAN HALFORD asked if SB 235 will have no impact on the Coastal                                                             
Trail.                                                                                                                          
                                                                                                                                
MS. HIGHLAND said that is correct.                                                                                              
                                                                                                                                
SENATOR PARNELL moved SB 235 from committee with individual                                                                     
recommendations and accompanying fiscal notes.  Without objection,                                                              
the motion carried.                                                                                                             
                                                                                                                                
          HB 344-HARDROCK LAND EXCHANGE/HEALY RR LEASE                                                                          
                                                                                                                                
CHAIRMAN HALFORD announced that a Senate version of HB 344 has been                                                             
discussed by the Committee.  The House amended HB 344, which was                                                                
similar to the Senate bill, and added the Alaska Railroad                                                                       
Corporation (ARRC) land in Healy.                                                                                               
                                                                                                                                
MS. CAROL CARROLL, Director of the Division of Support Services of                                                              
the Department of Natural Resources (DNR), explained that the                                                                   
intent of the House amendment is to fix a problem the community of                                                              
Healy has with leased land.  It allows ARRC to extend the lease so                                                              
that community members can get mortgages on homes on that land.                                                                 
                                                                                                                                
Number 1070                                                                                                                     
                                                                                                                                
SENATOR GREEN asked if that subdivision is already established.                                                                 
                                                                                                                                
MS. CARROLL said it is.                                                                                                         
                                                                                                                                
MR. CHARLIE GREEN, representing Usibelli Coal, concurred with Ms.                                                               
Carroll's statement and explained that the original lease with the                                                              
ARRC, when it was under federal management, was for 55 years.                                                                   
About 25 years have passed.  The subdivision homeowners are buying                                                              
and building homes on subleased land.  Most banks require a minimum                                                             
10 year cushion on mortgages on leased land.  At this time, two                                                                 
families have moved from the subdivision and are unable to sell                                                                 
their homes because of the duration of the lease.  Additionally, a                                                              
number of houses in the subdivision are available for rent                                                                      
primarily because the owners have been unable to sell them.  HB 344                                                             
will give legislative approval for an extension of the lease.  It                                                               
does not require language to be placed in statute giving ARRC                                                                   
unilateral approval to terminate the lease.  In addition, the owner                                                             
will not be able to unilaterally terminate the lease, as banks                                                                  
would not give mortgages in that case.  The subdivision is in the                                                               
heart of the community of Healy.  It contains about 120 residences,                                                             
as well as the community center and volunteer fire department.                                                                  
                                                                                                                                
CHAIRMAN HALFORD asked if the benefit of this extension and any                                                                 
value that is accrued will go to the subleasees.                                                                                
                                                                                                                                
MR. GREEN replied that it would certainly be a benefit because                                                                  
subleases could be extended, satisfying requirements of bankers and                                                             
other lenders.                                                                                                                  
                                                                                                                                
CHAIRMAN HALFORD asked if a profit is being made by anyone in this                                                              
process.                                                                                                                        
                                                                                                                                
MR. GREEN answered, "No, this is definitely a non-profit                                                                        
enterprise."  He explained the ARRC lease held by Usibelli Coal                                                                 
requires that Usibelli sublease to homeowners and commercial                                                                    
businesses that locate within the subdivision.  Usibelli is only                                                                
allowed to recover its original development fees and the rent it                                                                
pays to ARRC, which is calculated on a per acre basis.  From                                                                    
Usibelli's perspective, it is a non-profit project.                                                                             
                                                                                                                                
SENATOR TAYLOR asked why ARRC does not sell the homeowners the land                                                             
instead of continuing to lease.                                                                                                 
                                                                                                                                
CHARLIE BODDY, Vice President of Government Relations with Usibelli                                                             
Coal, explained that Usibelli has been working with the Denali                                                                  
Borough, ARRC, and the homeowners to find a better solution.                                                                    
Usibelli considers CSHB 344(FIN) to be an interim, stop-gap measure                                                             
to allow people who want to sell and build homes to be freed up                                                                 
from the current problem.  The parties involved anticipate that                                                                 
within the next year they will find a way to get that land into                                                                 
private hands.  Usibelli got involved in developing the subdivision                                                             
because it had the equipment needed to lay out the entire                                                                       
subdivision and lay a trunk line.  It then moved all of the "folks"                                                             
out of the Usibelli and Sun Trana mining communities into this new                                                              
area however it was never Usibelli's intention to be a landlord.                                                                
With the creation of the Borough, he believes private ownership can                                                             
be achieved.                                                                                                                    
                                                                                                                                
SENATOR GREEN moved CSHB 344(FIN) from committee with individual                                                                
recommendations. There being no objection, the motion carried.                                                                  
                                                                                                                                
There being no further business to come before the Committee,                                                                   
CHAIRMAN HALFORD adjourned the meeting at 3:45 p.m.                                                                             

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