SENATOR RANDY PHILLIPS brought CSHB 398(RES) (LAND CONVEYED TO & FROM MUNICIPALITIES) before the committee as the final order of business. DAVE KAMRATH, staff to Representative Harley Olberg, said the legislation relates to conveyance of certain lands to municipalities. Mr. Kamrath outlined four conditions that would have to be met in order for municipalities, home rule, first and second class cities and boroughs to be able to apply for tide and submerged land and to have them conveyed. He added that this land would only be conveyed for development purposes and land couldn't be tied up for future projects down the road. Number 118 HARRY WILLIAMS, City Manager of Whittier, testifying from Whittier in support of HB 398, said he believes it meets all of the criteria for good legislation. It not only solves some problems, but also provides potential economic development opportunities for all 16 boroughs of the state and for at least one first class city and 49 second class cities. Number 145 RON SWANSON, Director, Division of Lands, Department of Natural Resources, stated the department's support for HB 398. He said he has worked on the legislation with Bob Walsh of the Department of Community & Regional Affairs and that department supports it as well. Number 173 DAVE KAMRATH informed the committee that Section 1 of the bill deals with a current situation in Skagway. Originally there was a dike built and land was filled inside the dike and developed, with even a school being built on the property. The city did not have clear title to this land to begin with and the title for subsequent private property owners is also clouded. Paragraph 11 in Section 1 allows the director of the Division of Lands the discretion to quitclaim land to a municipality to correct past errors and omissions. Number 195 JOHN JOHNSON of Cordova said he is a private land owner out of Cordova, and when building his home, he encroached a small corner of his house on state tidelands. He was advised that perhaps his problem could be addressed through an amendment in HB 398. Right now there is no solution that addresses any kind of private encroachment on state lands. Number 221 SENATOR TAYLOR commented that the state has the ability to acquire those tidelands, and he asked if there was some reason the state does not wish to convey tidelands to the city. RON SWANSON said this particular piece of legislation will allow them to convey the tidelands to the City of Cordova, or any other city, and then the city can deal with the private owner. They could lease it to the private land owner, but not sell it to him. He said that we are dealing with public trust lands and they specifically made clear that that conveyance could not go on. Number 245 SENATOR TAYLOR said he wanted to amend the bill to provide the cities the ability to sell these parcels of tidelands that have been encroached on by the private land owner so that the owner can get a quitclaim deed rather than just leasing it. He then offered the following amendment to CSHB 398(RES): Page 4, line 27: After the word "may" delete "execute leases" and insert "convey by lease or sale" Number 412 SENATOR LEMAN asked if making this change would be consistent with Title 38. RON SWANSON answered that it would be consistent with Title 38. Right now he cannot convey any tidelands except for municipalities formed previous to 1964. Number 440 After brief discussion on the amendment, SENATOR TAYLOR moved the amendment to page 4, line 27. Hearing no objection, the Chairman stated the amendment was adopted and would be incorporated into a Senate CS. Number 450 SENATOR LEMAN moved that SCS CSHB 398(CRA) be passed out of committee with individual recommendations. Hearing no objection, it was so ordered.