The Senate Community & Regional Affairs Committee was called to order by Chairman Randy Phillips at 9:02 a.m. He brought HB 259 (title am) (LAND GRANT FOR LAKE & PENINSULA BOROUGH) before the committee and announced testimony would be taken over the teleconference network. Number 022 JEFF PARKER, Anchorage Fish & Game Advisory Board, testified from Anchorage in opposition to HB 259, stating that the bill is controversial because it involves lands that are used by citizens from throughout the state and, fundamentally, cannot likely create a significant tax base. He noted he has forwarded some questions to the committee that he would like to see addressed by the borough, and he urged that the committee delay passage of the legislation and to look to public concerns first about lands that should be retained in public ownership. Number 062 ALICE RUBY, testifying on behalf of the Bristol Bay CSA Board, reiterated a previous request that HB 259 and SB 375 be held over until the next legislative session so that a good planning process can be established and to come up with a way to keep from causing a detriment to some of their most important critical habitat and recreation subsistence areas. Number 090 LAMAR COTTEN, representing the Lake & Peninsula Borough, responded to a series of questions sent to the committee by Jeff Parker, and stated he thinks the questions are going in the wrong direction. The bill is not about lodges, Mr. Parker's lodge or potential competitors to his lodge industry. It is about a municipality that is attempting to diversify their economy and not be as reliant upon the state government for funds to provide basic services. Number 178 SENATOR TAYLOR asked if it was just an accident of the formula that brings about the large diversity that would exist between various communities on the land entitlement that they have received. LAMAR COTTEN answered that was his perception. He said there seems to be no relationship between the size of the borough, the size of the population and what is needed. SENATOR TAYLOR commented that he is supportive of moving the land ownership to the smallest unit of government we can find, because the closer it gets to the people, the better utilization those people will make of that land. He would like to see a requirement in the legislation that some of this land eventually make its way into private ownership that will provide a tax base. Number 270 SENATOR RANDY PHILLIPS said in HB 259, the Lake & Peninsula Borough is asking for more lands than is allocated for other boroughs around the state. SB 375, which is also in the committee, provides an equal playing ground for all boroughs in their request for lands to be used the boroughs themselves. He said Senator Adams has proposed that a subcommittee be formed to work on the two bills and the allocation issues, and bring them back before the committee for final action at its next meeting. Number 292 REPRESENTATIVE CARL MOSES said his problem with a set formula is that land in different areas of the state varies so much in value. Lands in the Lake & Peninsula Borough are probably one-fiftieth the value of lands in the Mat-Su Valley, so it is hard to make a equitable basis on a flat standard throughout the state. He pointed out that much of the land in the LPB is wet land, marsh land and small lakes. Number 315 SENATOR RANDY PHILLIPS asked Representative Moses if he would be amendable to changing the 187,000 acre figure to the 125,000 acre figure that DNR has identified for selection. REPRESENTATIVE MOSES responded that half a loaf is better than none, but the 187,000 figure doesn't mean that they will get that amount because DNR may restrict a lot of the lands that they might want. Number 345 SENATOR RANDY PHILLIPS stated HB 259 would be held until later in the meeting. SENATOR RANDY PHILLIPS brought HB 259 (title am) (LAND GRANT FOR LAKE & PENINSULA BOROUGH) back before the committee. TAPE 94-33, SIDE B Number 001 REPRESENTATIVE MOSES urged that HB 259 be passed out of committee. There was discussion by the committee on changing the 187,000 figure to 125,000 acres, which is the figure the borough and state have agreed to. There were 62,000 acres in question. Number 098 SENATOR LEMAN moved the adoption of the following amendment to HB 259: Amendment No. 1 Page 2, line 2: Change "187,000" to "125,000" Hearing no objection, Amendment No. 1 was adopted. Number 107 SENATOR LEMAN moved that HB 259, as amended, be moved out of committee with individual recommendations. Hearing no objection, it was so ordered.