HOUSE BILL NO. 562                                                                                                            
                                                                                                                                
     An Act relating to the establishment of the Interior                                                                       
     Rivers Port Authority; and providing for an effective                                                                      
     date.                                                                                                                      
                                                                                                                                
Co-Chair  Harris  MOVED  to ADOPT  work  draft  version  #23-                                                                   
LS1951\Q,  Utermohle,  5/6/04, as  the  version  of the  bill                                                                   
before  the Committee.    (Copy  on File).    There being  NO                                                                   
OBJECTION, it was adopted.                                                                                                      
                                                                                                                                
CARL MORGAN,  SPONSOR, explained  that the legislation  would                                                                   
create  an  Interior  Rivers   Port  Authority,  which  would                                                                   
regionalize planning  for the small, unorganized  communities                                                                   
in  rural  Alaska.   The  Port  Authority  would  include  25                                                                   
communities.  He added that landowners  of the region with an                                                                   
eleven-member  board would represent  the Authority  with six                                                                   
living physically in the areas  and then three public members                                                                   
including   the   commissioners    of   the   Department   of                                                                   
Transportation  & Public  Facilities  and  the Department  of                                                                   
Community & Economic Development.                                                                                               
                                                                                                                                
Representative  Morgan  explained  that  the  Port  Authority                                                                   
would have  power to  accept private,  municipal, State,  and                                                                   
federal funds, issue tax exempt  revenue bonds and enter into                                                                   
non-lease  acquisitions.    It   is  not  intended  that  the                                                                   
Authority will create a financial obligation to the State.                                                                      
                                                                                                                                
Representative  Morgan acknowledged  skepticism with  the new                                                                   
legislation.  He  listed the many supporters  and pointed out                                                                   
the main  opposition comes from  concerns of eminent  domain.                                                                   
Native tribes in Alaska do not  own land, whether or not, the                                                                   
Native    and   Village    Corporations    own   the    land.                                                                   
Representative Morgan  commented that Native  Corporations in                                                                   
the proposed areas support the bill.                                                                                            
                                                                                                                                
Representative  Fate  noted  support  for the  concept.    He                                                                   
questioned   the   eminent  power   domain   and   safeguards                                                                   
associated with other allotment areas.                                                                                          
                                                                                                                                
PAUL FUHS,  LOBBYIST &  TECHNICAL EXPERT  TO SENATOR  MORGAN,                                                                   
ANCHORAGE,  explained that  the only  property that  could be                                                                   
taken  would  have  to  be  within   the  boundaries  of  the                                                                   
authority itself.   The  language would be  like that  of the                                                                   
Department of Transportation &  Public Facilities, indicating                                                                   
that it  is for a  public purpose.   Native corporations  are                                                                   
primarily the  private landowners and they have  accepted the                                                                   
proposal.   On a regional  level, they  would be giving  up a                                                                   
portion  of autoimmunity.    He commented  that  it has  been                                                                   
specifically  noted that  it could  only be  within the  port                                                                   
authority boundaries.                                                                                                           
                                                                                                                                
Responding to  Representative Fate,  Mr. Fuhs explained  that                                                                   
he did not believe it could be  within the pipeline corridor.                                                                   
Regardless, there  is no way they could use  those properties                                                                   
for any public purpose.                                                                                                         
                                                                                                                                
Representative  Hawker  MOVED   to  ADOPT  Amendment  #1,  as                                                                   
requested  by Senator  Morgan.   (Copy  on  File).   Co-Chair                                                                   
Williams OBJECTED.                                                                                                              
                                                                                                                                
Mr. Fuhs  advised that Amendment  #1 would bring  the bonding                                                                   
authority  in-line with Alaska  Development Export  Authority                                                                   
(ADEA) and  Alaska Energy  Authority (AEA)  in the  amount of                                                                   
ten million dollars.                                                                                                            
                                                                                                                                
Co-Chair  Harris inquired  if it would  affect other  natural                                                                   
gas  projects along  the coast.    Mr. Fuhs  stated that  the                                                                   
"energy is  contemplated for that  area only" and  other than                                                                   
that, it would be a different issue.                                                                                            
                                                                                                                                
Representative  Fate  reminded   members  that  the  new  gas                                                                   
pipeline would come across the  Yukon area, and questioned if                                                                   
$10 million would  be sufficient.  Mr. Fuhs  admitted that it                                                                   
probably would not be enough and  that they would likely have                                                                   
to come for further authorization.                                                                                              
                                                                                                                                
Representative Foster MOVED to  report CS HB 562 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  562 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation  and  with a new  indeterminate  note by                                                                   
the Department of Community & Economic Development.