SB 339 "An Act relating to the management of state land and resources; relating to certain remote parcel and homestead entry land purchase contracts and patents; and providing for an effective date." HCS CSSB 339 (FIN) was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Natural Resources, dated 2/28/94. SENATE BILL NO. 339 "An Act relating to the management of state land and resources; relating to certain remote parcel and homestead entry land purchase contracts and patents; and providing for an effective date." NEIL JOHANNSEN, DIRECTOR, DIVISION OF PARKS AND OUTDOOR RECREATION explained that CSSB 339 amends the Alaska Land Act, Title 38, to increase the delivery of services through a less cumbersome set of procedures. It speeds and improves various sections for land actions, mining, forestry and state parks. Mr. Johannsen observed that since 1959, Title 38 has grown long and complicated. He maintained that the legislation clarifies Title 38, to offer greater efficiency without sacrificing public involvement. Further work to improve Title 38 is now underway. Mr. Johannsen gave a brief sectional analysis of Senate Bill 339 as follows: * Sections 1-8 creates a streamlined land disposal program. * Section 9-10 designs new land disposal programs more efficient for DNR to manage and for the public to understand. * Section 11 authorizes the commissioner of DNR to do certain reconveyences to trade Native allotments out of state conservation units such as state parks. * Sections 12-14 allows for persons to purchase state lands without being present at a lottery or auction, which was found to violate the equal protection clause of our constitution. * Section 15 deals with a technical problem, offering a definition of "adjacent" for purposes of disposals and appraisals. * Section 16 requires state land leaseholders to return a property to a marketable condition, by removing personal property - often buildings and "junk." * Section 17-18 allows the commissioner of DNR to reach a finding that certain timber stands can loose substantial value because of insects, fire and disease and to then quickly sell that timber, by passing long, cumbersome bureaucratic processes. * Section 19 amends 38.05.180(c) to remove restrictions on DNR's ability to delay an oil and gas sale for more than 90 days after the sale date. Appeals and court action can cause the 90 day limit to be exceeded. * Section 20 amends 38.05 to eliminate overly broad provisions allowing land to be closed to mining, even closing land with existing valid mining claim rights. * Section 21 clarifies mining claim ownership by aliens or foreign corporations. Now, only foreign corporations or foreign citizens from countries offering "like privileges" can own claims in Alaska, yet determinations on which countries offer this has never been done by the U.S. Government or the State of Alaska. * Section 22 simplifies adjustments to be made in the annual rental amounts due on mining claims and leases. This amendment to 38.05.211 more clearly identifies the consumer price index on which changes are to be based. * Sections 23-24 simplifies mining leasing procedures and creates more modern terms for annual rents, leases and restrictions. * Section 25 creates more reasonable terms for miners to file lease paperwork without sudden termination of their claim rights. * Sections 26-34 increases fees for homesites and homesteads before patent, to defray DNR's administrative costs, clarifies homesite entry and lottery procedures. These sections are "housekeeping" amendments on "homesite" laws. Representative Grussendorf addressed section 12. He questioned the change allowing land disposals to take place in urban areas away from the sale community. JERRY GALLAGHER, LEGISLATIVE LIAISON, DEPARTMENT OF NATURAL RESOURCES explained that statutes requiring applicants to be present at the land sale was found to be unconstitutional. He noted that the legislation would give the Department the ability to not hold land sales in the community. Representative Grussendorf emphasized that the change to allow sales to take place outside of the effected community benefits the department not the public. Mr. Gallagher stressed the cost of holding sales in communities. ANGELA CHUNG, ALASKA ENVIRONMENTAL LOBBY testified in regards to SB 339. She stressed that the bill proposes changes in the state's management of lands, wa~ers, forests, mineral deposits, gas and oil. She noted that the Alaska Environmental Lobby is concerned that SB 339 will substantially reduce public involvement and adversely affect state forested lands. Ms. Chung recommended that sections 17 and 18 be deleted. She noted that section 17 would allow the Department of Natural Resources to offer salvage sales of timber on land that will be converted to non-forested uses or timber that the Department determines will lose economic value or perpetuate insects or disease if not salvaged within two years. Section 18 would expand the Department of Natural Resources' power to negotiate timber sales in areas where certain conditions exist or will exist within two years. These conditions include high levels of local unemployment or timber that will lose its economic value due to insects, disease or fire. She pointed out that salvage sales could be offered as negotiated sales that would be exempt from AS 38.05.115. AS 38.05.114 limits ~ s to no more than 5000,000 board feet in one year. Ms. Chung asserted that the legislation would give the commissioner of the Department of Natural Resources extraordinary latitude in determining and predicting future forest health. Ms. Chung emphasized that the department has the authority to execute emergency sales under AS 38.05.113. She maintained that salvage sales could be classified as emergency sales. She alleged that salvage sale provisions in sections 17 and 18 would create a loophole allowing large scale, long term, negotiated timber sales of up to 25 years to occur. Ms. Chung argued that forest insect epidemics are often self regulating and can improve habitat for many types of wildlife. She maintained that few attempts at direct control of forest insects have been successful. Representative Martin maintained that natural forest reforestation is not as active in Alaska as in other states. Co-Chair Larson provided members with AMENDMENT 1, 8-GS2023\0.1 (copy on file). MARK HICKEY, ALASKA RAILROAD CORPORATION testified in support of amendment 1. He noted that section 1 would allow the commissioner to convey land to the Alaska Railroad Corporation for the purpose of a new right-of-way within Chugach State Park, along the Seward Highway. He explained that the Department of Transportation and Public Facilities is in the process of reconstructing and realigning the Seward Highway. The highway will relocate the railroad. The Department of Transportation and Public Facilities would also be granted a 300 foot easement for the relocated Seward Highway. The Chugach Electric Association, Inc. would be granted a 100 foot utility easement within the Chugach State Park. In response to a question by Representative Brown, Mr. Gallagher explained that agreement has been reached between park officials and the other parties outlined in the amendment. Representative Hanley MOVED to ADOPT AMENDMENT 1. There being No OBJECTION, it was so ordered. Representative Brown provided members with AMENDMENT 2 (copy on file). She explained that the amendment would delete section 17. the amendment would also delete "or will exist within two years" on page 9, lines 27 - 28. TOM BOUTIN, DIRECTOR, DIVISION OF FORESTRY, DEPARTMENT OF NATURAL RESOURCES noted that section 17 would exempt the state from provisions requiring compliance with a two year plan. He maintained that other provisions for land management would be required. He noted that the Department of Law advised that an emergency sale, timber sale would need to be completed within one year. He observed that logging of spruce bark beetle infected trees would be difficult to complete in one year due to the need to log during months when the ground is frozen. In response to a question by Representative Brown, Mr. Boutin maintained that some sales would best able to be larger than 500,000 board feet. Representative Brown MOVED to ADOPT AMENDMENT 2. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Hoffman OPPOSED: Navarre, Grussendorf, Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (2-8). Representative Brown provided members with AMENDMENT 3 (copy on file). She explained that amendment 3 would require a written finding by the commissioner of Department of Natural Resources, and insert "and that the loss of substantial economic value cannot be practicably mitigated by other means", and delete the exemption of a salvage sale from AS 38.05.115. Mr. Boutin stressed that section 17 would not exempt the state from maintaining a "sustained yield". He argued that public process would be protected under the provisions of AS 38.05.112. He discussed forest land use plans. Representative Grussendorf spoke in support of a "written finding". He MOVED to DIVIDE THE QUESTION. There being NO OBJECTION, it was so ordered. Amendment 3A would delete "determination" and insert "written finding" on page 9, line 17. Mr. Boutin spoke in support of amendment 3A. There being NO OBJECTION, AMENDMENT 3A was adopted. Mr. Boutin acknowledged that controlled burns would be preferable under some circumstances. Representative Therriault MOVED to DIVIDE THE QUESTION. There being NO OBJECTION, it was so ordered. Amendment 3B(1) would insert "and that the loss of substantial economic value cannot be practicably mitigated by other means". Amendment 3B(2) would delete the exemption of a salvage sale from AS 38.05.115. Representative Hanley OBJECTED to AMENDMENT 3B(1). Representative Grussendorf spoke in support of amendment 3B(1). A roll call vote was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (4-6). A roll call vote was taken on the MOTION to adopt AMENDMENT 3B(2). IN FAVOR: Brown, Hoffman, Navarre OPPOSED: Grussendorf, Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to delete section 12. A roll call vote was taken on the MOTION. Mr. Gallagher suggested that the deletion of section 12 would result in fewer land disposals. IN FAVOR: Brown, Grussendorf, Hoffman OPPOSED: Navarre, Foster, Hanley, Martin, Parnell, Therriault, Larson Co-Chair MacLean was not present for the vote. The MOTION FAILED (3-7). Representative Hanley MOVED to report HCS CSSB 339 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS CSSB 339 (FIN) was reported out of Committee with "no recommendation" and with a fiscal impact note by the Department of Natural Resources, dated 2/28/94.