SJR 13-AMEND ALASKA NATIVE CLAIMS SETTLEMENT ACT  8:57:46 AM CHAIR MCCORMICK announced that the final order of business would be SENATE JOINT RESOLUTION NO. 13, Encouraging the United States Congress and the President of the United States to pass and sign legislation amending the Alaska Native Claims Settlement Act to release certain land held in trust back to affected Alaska Native village corporations. 8:58:05 AM SENATOR FORREST DUNBAR, Alaska State Legislature, prime sponsor, presented SJR 13. He paraphrased the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: SJR 13 supports the Alaska Native Village Municipal Lands Restoration Act of 2023 introduced in S.2615 by Senators Murkowski and Sullivan and H.R. 6489 by Congresswoman Peltola in response to the desire of the state of Alaska to end the Municipal Lands Trust (MLT). Rural communities across Alaska are facing challenges due to the lack of affordable housing and limited opportunities for economic and community development. One of the contributing factors challenging many communities is a legacy of the Alaska Native Claims Settlement Act (ANCSA). When it was enacted, section 14 (c)(3) of ANCSA required the reservation of lands allotted to Alaska Native Village Corporations for future municipalities. Today, those lands are held in trust by the state of Alaska through the MLT. The architects of ANCSA did not consider that many communities would not incorporate under Alaska state law. Only 8 ANCSA villages have formed a new municipality to date, the last in 1995. Today, the MLT holds approximately 11,500 acres and the state of Alaska is forced by its trust responsibility to manage these lands in way that limits access and opportunity in communities. SJR 13 expresses the Alaska State Legislature's support for the Alaska Native Village Municipal Lands Restoration Act of 2023, joining groups like the Alaska Federation of Natives, Alaska Native Village Corporation Association and State of Alaska in support of dissolving the trust and returning lands to support community development. I urge you to support SJR 13. 9:00:51 AM GREGG RENKES, Senior Vice President for Government Relations, Chenega Corporation, gave invited testimony during the hearing on SJR 13. He said SJR 13, along with the governor's support, would help Alaska's delegation push the [Alaska Native Village Municipal Lands Restoration Act of 223] with the hope of it th becoming law by the end of the 118 United States Congress. The federal legislation addresses a loose end and unintended consequences of the Alaska Native Claims Settlement Act (ANCSA). He highlighted Section 14(c)(3) of ANCSA and explained that for the vast majority of villages, the land is still being managed by the state Municipal Lands Trustee (MLT) Program. Decades after the passage of ANCSA and many years after village corporations turned over land, no new municipalities have been created. In the 50 years that the state has administered the federal program for nearly 50 years, only 8 ANCSA villages have formed a new municipality. Perpetual management of these lands in the state trust was not envisioned by the crafters of ANCSA. He said it's time to return the land to these village corporations so they can own and manage the land for the benefit of their community members and shareholders. He noted the difficulty of developing these lands due to restrictions imposed by the state's fiduciary responsibility to a future, yet unknown, municipality. He reported that 83 communities across Alaska still have their land tied up in the MLT program. In addition to the 83 communities, all village corporations and communities that want to develop their lands but have never participated in the land trust must deal with the cloud on title. He explained that many buildable areas in Chenega that could be future development sites fall within lands held by the trust, undermining the corporation's right to self-determination and self-governance. He asserted that Chenega should control these lands, not the State of Alaska. Most critically, the MLT program prevents Chanega from improving the community with additional housing and creating economic opportunity for the residents. He said the unintended consequences, such as the failure of the land trust to provide a sunset provision, need to be addressed to fulfill the promise of ANCSA and allow for economic opportunity and housing in small communities across the state. 9:09:55 AM REPRESENTATIVE MCCABE asked whether the state is supposed to be managing lands held in the MLT program. MR. RENKES said the state had taken responsibility as the fiduciary to a future municipality not to allow any use of these lands that would predetermine their uses by said municipality. He said the safest legal path forward for the state is to allow limited use of the lands to keep them intact for future use. REPRESENTATIVE MCCABE asked whether the state, as the fiduciary, should be maintaining the land with proper forest management practices. MR. RENKES said proactive measures to protect the lands would be part of the state's fiduciary responsibility; however, most of the 11,550 acres in the trust are vacant lands in the centers of small village communities. 9:14:05 AM REPRESENTATIVE HIMSCHOOT asked whether the original intent was to make the land available for a "state function," such as a courthouse. MR. RENKES answered yes. REPRESENTATIVE HIMSCHOOT inquired about the communities' various levels of reconveyance and sought to confirm that [the federal legislation] would remove state ownership and return the lands to the communities. MR. RENKES responded yes, regardless of partial or full re- conveyance, or no conveyance, all village corporations would be put be "put back on the same footing" in control of the lands in these communities. REPRESENTATIVE HIMSCHOOT noted the huge struggle to place Alaska Department of Fish & Game (ADF&G) biologists and teachers in remote places throughout the state. She asked whether the opportunity to house a trooper in a bunk house would be lost if the land is returned. MR. RENKES said even now that is not possible because it violates appropriate use of the land. However, housing is a critical need, so returning land to the village corporation could free up opportunity for workforce housing. 9:19:02 AM MARJORIE MARY, President, Baan O Yeel Kon (BOYK) Corporation, gave invited testimony during the hearing on SJR 13. She provided a brief history of Rampart Village, a federally recognized Tribe located on the banks of the Yukon River approximately 120 air miles north of Fairbanks. She said the formula provided in ANCSA Section 14(c)(3) has proved problematic to the BOYK Corporation since the passage of the law, and as a result, the corporation chose to provide those lands via lease or by quitclaim deed to the Rampart Village council for bonafide municipal use. She explained most recently, the corporation attempted to support the council with 10 acres of land selected with the assistance of the Department of Environmental Conservation (DEC) for the development of a new community landfill and obtained U.S. Environmental Protection Agency (USEPA) grant funds that would build a road to the approved site; however, the MLT program decided not to accept the parcel. Consequently, with no other recourse, the corporation transferred the deed via quitclaim directly to the council, as well as a portion of land adjacent to the airport, that would allow access to a gravel site and the development of a new baseball park. She said while the BOYK corporation wishes to comply with ANCSA's terms, they also have a duty to shareholders and the community. She opined that the management of the municipal trust has been a major impediment to rural Alaska's economic development. She urged full consideration of SJR 13. If the legislation passes, she said the corporation would continue to work to fulfill land requirements of the Tribe without the additional constraints and lackadaisical management of the MLT program thwarting their growth. 9:24:42 AM BENJAMIN MALLOTT, Vice President, Alaska Federation of Natives (AFN), gave invited testimony during the hearing on SJR 13. He said AFN has long supported Section 14(c)(3) legislation and passed multiple resolutions urging congress to restore lands conveyed under ANCSA. He said that having the state unified with Alaska corporations and villages makes a big difference and characterized SJR 13 as a big step forward. CHAIR MCCORMICK invited questions from committee members. 9:27:02 AM REPRESENTATIVE RUFFRIDGE shared his understanding that the provision under Section 14(c)(3) was intended to incentivize incorporation, which 8 communities have accomplished. He questioned the barrier to other villages following suit. SENATOR DUNBAR reiterated that the land was intended for municipal facilities. He spoke to the difficulty of working with the state to build housing, for example, which would spur incorporation. MR. RENKES said the capacity and cost of setting up municipal government makes it "awkward" for small villages, so Tribes or village corporations have taken over some of those responsibilities. 9:30:58 AM REPRESENTATIVE MCKAY referenced a sentence in the governor's letter [included in the committee packet] and asked how SJR 13 would affect the pipeline. SENATOR DUNBAR shared his belief that it would not affect the pipeline and suggested that the governor's words may be a request for a broader revision of ANCSA. MR. RENKES said the issue referenced by Representative McKay has nothing to do with Section 14(c)(3). 9:32:43 AM CHAIR MCCORMICK shared his belief that SJR 13 would address the housing crisis in rural Alaska and for that reason, he intended to move it forwarded as quickly as possible. He announced that SJR 13 would be held over.