SENATOR AL ADAMS expressed his appreciation to the chairman of the            
 Senate Judiciary Committee for introducing SB 375.                            
                                                                               
 The basic premise of SB 375 is that municipal ownership of up to 10           
 percent of the state lands within the municipal boundaries, when it           
 is available, would promote strong government as provided in                  
 Alaska's Constitution, would provide municipalities with the                  
 opportunity to stimulate their economic development, could                    
 potentially increase tax revenue through an expanded tax base and             
 an overall improved ability to provide quality public services.  By           
 retaining ownership to 90 percent of the state land within                    
 municipal boundaries, the state retains the ability to provide for            
 statewide public interests.                                                   
                                                                               
 The bill sections with most importance are Sections 8 and 10.                 
 Section 8 deletes the words "newly formed" from the policy                    
 statement regarding the 10 percent designation so that the policy             
 applies across the board to all municipalities.  Section 10 changes           
 the designation of VUU land so that it would include land that had            
 been classified as unobtainable for municipal selection.                      
                                                                               
 Senator Adams said he believes the legislation is particularly                
 timely considering the present proposals by the Governor and                  
 certain members of the Alaska Legislature to decrease municipal               
 assistance and revenue sharing.  Increasing the land base available           
 to municipalities would offset the negative effects of diminishing            
 the revenue stream flowing from the state to the local governments.           
                                                                               
 Senator Adams noted that the legislation is supported by the Alaska           
 Municipal League.                                                             
                                                                               
 TAPE 94-32, SIDE B                                                            
 Number 001                                                                    
                                                                               
 KEITH QUINTAVELL, representing the North Slope Borough, said their            
 is conflict in the statutes relating to land areas available to               
 municipalities to fulfill their land entitlements.  He added that             
 he doesn't know if the Legislature anticipated that when planning             
 to give municipalities 10 percent of the state land within their              
 boundaries some boroughs would get actually less than 1 percent of            
 the land within their boundaries.  Section 10 of SB 375 would allow           
 boroughs to get their 10 percent instead of a much smaller amount.            
                                                                               
 Mr. Quintavell said if the state can no longer give municipalities            
 funding, which is in short supply, perhaps they can give them land            
 so that they can use that land to make money and pay for their own            
 municipal public services.  The land will still be public land, and           
 the public will still be able to use most of it.                              
                                                                               
 Number 054                                                                    
                                                                               
 SENATOR RANDY PHILLIPS closed the hearing on SB 375, stating it               
 would back before the committee at its next meeting.