SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE April 26, 1994 9:02 a.m. MEMBERS PRESENT Senator Randy Phillips, Chairman Senator Robin Taylor, Vice Chairman Senator Loren Leman Senator Al Adams MEMBERS ABSENT Senator Fred Zharoff COMMITTEE CALENDAR HOUSE BILL NO. 259 (title am) "An Act relating to general grant land entitlements for the Lake and Peninsula Borough; and providing for an effective date." SENATE BILL NO. 375 "An Act relating to general grant land entitlements." PREVIOUS SENATE COMMITTEE ACTION HB 259 - See Community & Regional Affairs minutes dated 4/19/94 & 4/21/94. SB 375 - See Community & Regional Affairs minutes dated 4/19/94 & 4/21/94. WITNESS REGISTER Representative Carl Moses State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on HB 259 Jeff Parker Anchorage Fish & Game Advisory Board 1201 Hyder Anchorage, AK 99501 POSITION STATEMENT: Testified in opposition to HB 259 and SB 375 Alice Ruby Box 3330 Dillingham, AK 99576 POSITION STATEMENT: Opposes passage of HB 259 and SB 375 Lamar Cotten Lake & Peninsula Borough P.O. Box 495 King Salmon, AK 99613 POSITION STATEMENT: Supports HB 259 George Wagner Denali Borough Phone (907) 683-1333 POSITION STATEMENT: Testified in support of SB 375 Doug Braddock Fairbanks North Star Borough P.O. Box 71267 Fairbanks, AK 99707 POSITION STATEMENT: Supports SB 375 Keith Quintavell North Slope Borough P.O. Box 69 Barrow, AK 99723 POSITION STATEMENT: Supports SB 375 Ron Swanson, Director Division of Lands Department of Natural Resources P.O. Box 107055 Anchorage, AK 99510-7005 POSITION STATEMENT: Testified in opposition to SB 375 ACTION NARRATIVE TAPE 94-33, SIDE A Number 001 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. The next order of business to come before the committee was SB 375 (GENERAL GRANT LAND ENTITLEMENTS). SENATOR RANDY PHILLIPS stated testimony would be taken over the Legislative Teleconference Network. Number 355 GEORGE WAGNER, Vice Chair, Denali Borough Planning Committee, related that the planning committee has been directed by the borough assembly to formulate a comprehensive land use plan for the borough, as well as to identify specific lands and related criteria for municipal entitlement lands as provided for in statute. He stated the Denali Borough's strong support for SB 375. Number 368 DOUG BRADDOCK, representing the Fairbanks North Star Borough, voiced their support for the passage of SB 375. The borough has been very aggressive in developing a plan to not only increase the local tax base, but also to generate revenue for the borough, which they believe is especially important with the proposed cuts to state revenue sharing and assistance to local governments. Number 380 SENATOR ADAMS asked if the Fairbanks North Star Borough has an economic plan they can utilize if SB 375 passes. DOUG BRADDOCK replied that they are in the process of putting together what they have been calling a business plan for the management of their entitlement lands, but it is not yet complete. However, if the bill passes they would include that 58,000 acres of land in their plan. Number 388 KEITH QUINTAVELL, representing the North Slope Borough, said the borough endorses a proposal that would be the most equitable to Alaska's municipalities. SB 375 would establish a single simple formula for municipal land entitlement which is applicable to all cities, boroughs and unified municipalities; it would return to the Legislature, not the Division of Lands, the authority for designating which lands are of such paramount importance to statewide interest that they should not be made available for economic development by municipalities, but should be designated as state parks; and it would delete the certification deadlines, vesting dates, and application deadlines currently contained in statute. Number 425 JEFF PARKER, Anchorage Fish & Game Advisory Committee, stated the committee opposes SB 375 for the same reasons it opposes HB 259. There is no information that supports the 10 percent figure, or any other figure. There is concern with the redefinition of VUU lands in that it eliminates from the present statutes the provisions that effectively require that if land is classified in the DNR land use planning process as habitat it is not available for selection. With passage of SB 375 the state will give away its most valuable habitat and its most valuable lands for public use. Number 466 RON SWANSON, Director, Division of Land, Department of Natural Resources, stated the department does not support SB 375 because they do not believe it is equitable to grant land entitlements based on a formula. The department also does not support the elimination of the definition of VUU, which, he said, basically throws the land use planning process in chaos. He added that if the committee decides to move the bill, he has some amendments he would like the committee consider. Number 490 SENATOR RANDY PHILLIPS asked if there was any support to combine HB 259 and SB 375. It was agreed to by the members that each bill be dealt with separately. Number 500 RON SWANSON outlined the department's proposed amendments to SB 375: (1) Delete the term "Vacant, Unappropriated, Unreserved" wherever it occurs in the bill and insert "state general grant land" in its place. (2) Delete Section 6 in its entirety. The section basically orders the director to rescind conveyances that were made to land that was not Vacant, Unappropriated, Unreserved. Once land has been conveyed to a municipality, the director has absolutely no authority to rescind that conveyance. (3) Amend Section 7 to eliminate the requirement for the director to approve or disapprove each selection for patent within nine months of its selection by a municipality, because it would create an unreal workload on the Division of Land. (4) If VUU is eliminated, the definition of "general grant land" needs to be changed in Section 10. There being no other witnesses to testify on SB 375, SENATOR RANDY PHILLIPS stated the bill and the proposed amendments would be back before the committee at its next 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. There being no further business to come before the committee, the meeting was adjourned at 10:00 a.m.