SENATE BILL 64                                                               
                                                                               
       "An Act relating to the Shuyak Island State Park."                      
                                                                               
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  SENATOR  JERRY  MACKIE  noted  that  he had  introduced  the                 
  legislation  at the request  of Mayor  Jerome Selby  and the                 
  Kodiak  Island  Borough  Assembly.    The  legislation would                 
  present  one  of the  final actions  of  a long  and complex                 
  effort by the State, federal  authority and locally affected                 
  municipalities to compensate  for the effects of  the Valdez                 
  oil spill.  The bill would add specific land and water areas                 
  to the  Shuyak Island  State Park.   Shuyak  Island was  the                 
  first part of the  borough that was heavily impacted  by the                 
  westward streaming oil  patches and tar balls  from the 1989                 
  accident.                                                                    
                                                                               
  The two large land owners on Shuyak Island are the State and                 
  the  Kodiak  Island  Borough.   Previous  litigation imposed                 
  management restrictions that required the State  to maintain                 
  wildlife  habitat and  public  recreation  values while  the                 
  borough   was  partially   prohibited  from   commercial  or                 
  industrial use on the lands.  In 1984, Shuyak State Park was                 
  established from part of the State's holdings to protect the                 
  area's  fish  and  wildlife  habitat and  public  recreation                 
  opportunities  while  maintaining   customary  hunting   and                 
  fishing uses.                                                                
                                                                               
  Senator  Mackie  concluded  that SB  64  would  complete the                 
  transaction by formally incorporating all State lands on the                 
  island into the Shuyak Island State Park.  The expanded park                 
  retains the management  goals, purposes, and allows  uses of                 
  the original park.                                                           
                                                                               
  Senator   Mackie   pointed  out   that   hunting,  trapping,                 
  commercial fishing  or subsistence would  not be  restricted                 
  through passage of  the proposed legislation.   The only way                 
  hunting  or  trapping could  be  closed would  be  through a                 
  "biological emergency", which would retain it for management                 
  purposes.  At  this time there are two  mining claims on the                 
  island which  will continue  to run  as specified under  the                 
  claim.                                                                       
                                                                               
  Co-Chair  Therriault  referenced the  Department  of Natural                 
  Resources  fiscal  note  and  asked   if  those  funds  were                 
  warranted, suggesting that  the Department absorb that  cost                 
  within their budget.  Senator Mackie noted that would depend                 
  on action taken  by the  Committee.  He  commented that  the                 
  fiscal note  reflected the Department's increased  costs for                 
  updating their management  plan manuals.      Representative                 
  Grussendorf spoke in  support of  the proposed fiscal  note,                 
  reminding  Committee  members   of  the  serious   cuts  the                 
  Department  is  currently  faced  with in  running  projects                 
  already in the system.                                                       
                                                                               
  Co-Chair  Therriault  questioned  the  restrictions  to  the                 
                                                                               
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  Kodiak Borough Lands.   Senator  Mackie clarified that  area                 
  currently is owned in conjunction  with the State of Alaska.                 
  He  pointed  out  that  there   is  no  opposition  to   the                 
  legislation in Kodiak.   The  legislation would provide  the                 
  final  piece of  a purchase  review made by  the Legislative                 
  Budget and Audit Committee (LBA) last year.  It was intended                 
  to be placed into the Department, a decision which currently                 
  will be made by the Legislature.                                             
                                                                               
  Representative Martin MOVED to report CS  SB 64 (FIN) out of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying fiscal notes.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  CS SB 64 (FIN) was reported out of Committee with individual                 
  recommendations and with a fiscal note  by the Department of                 
  Natural Resources dated 2/4/97 and a zero fiscal note by the                 
  Department of Public Safety dated 2/4/97.