HRES - 02/13/95 HB 79 - MUNICIPAL LAND ERROR CORRECTIONS Number 117 REPRESENTATIVE JERRY MACKIE, PRIME SPONSOR, said he introduced HB 79 at the request of the city of Skagway to correct a longstanding land ownership problem in Skagway. Fifty years ago, a dike was constructed along the Skagway River to protect the town from flooding. Over the years, the area between the original river bank and the dike has been reclaimed and subdivided by the city with lots sold and built upon. He noted even the high school is located in the area. REPRESENTATIVE MACKIE stated the problem is the city did not have clear title to this land from the beginning. Hence, the title for subsequent private property owners is also clouded. Not only are the owners' investments and improvements at risk, but bank financing for further improvements or sales is foreclosed. He pointed out that in the past several years, the city and DNR have unsuccessfully sought an administrative remedy for the problem. While current statute allows DNR administrative discretion in resolving land ownership errors and omissions for individual citizens under AS 38.05.035(b)(2) and (b) (3), there is no similar provision for errors and omissions of a municipality. REPRESENTATIVE MACKIE explained HB 79 would add such a provision. The new proposed subsection AS 35.05.035(b) (11), allows the director of the division of lands the discretion to quitclaim land to a municipality to correct past errors and omissions. The director may also set any terms or conditions that is deemed appropriate for the transaction. He stressed that land title transferred to a municipality in this manner is counted against the municipality's general land grant entitlement from the state. REPRESENTATIVE MACKIE stated section 2 provides a January 1, 1998, repeal of AS 35.05.035(b) (11). Thus, the opportunity to correct municipal land ownership errors is limited to a two and one-half year period. He noted this bill was introduced in the last session. It progressed through the House and Senate until it died in the Senate Rules committee. He told committee members that in their folders there is a map (may be found in the House Resources Committee Room, Capitol Room 124, and after adjournment of the second session of the 19th Alaska State Legislature, in the Legislative Reference Library) showing the area being discussed which he reviewed. He said the property affected always has clouded title problems. He mentioned that DNR is very supportive of HB 79. REPRESENTATIVE BARNES made a MOTION to MOVE HB 79 out of committee, with accompanying fiscal notes, with individual recommendations. CO-CHAIRMAN GREEN asked if there were any objections. Hearing none, the MOTION PASSED. ADJOURNMENT There being no further business to come before the House Resources Committee, Co-Chairman Green adjourned the meeting at 9:50 a.m.