Legislature(2003 - 2004)
04/13/2004 03:25 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 319
An Act relating to the disposal of state land by
lottery; and relating to the disposal, including sale
or lease, of remote recreational cabin sites.
Co-Chair Harris MOVED to ADOPT work draft #23-LS0477\W,
Bullock, 4/2/04, as the version of the legislation before
the Committee. There being NO OBJECTION, it was adopted.
JIM POUND, STAFF, REPRESENTATIVE HUGH FATE, discussed the
committee substitute addressing two primary concerns. The
first change is the 100% penalty clause at the end of the
contract line in Sections 2 and 3; the second change deletes
the authority language. He believed that the changes would
enhance the bill. Mr. Pound noted Amendment #1, #23-
LS0477\W.2, Bullock, 4/13/04. (Copy on File).
Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair
Williams OBJECTED.
PETE ECKLUND, STAFF, REPRESENTATIVE BILL WILLIAMS, reviewed
the amendment, noting that it would clarify, that in order
to nominate a parcel under the program, the person would
need to be a State resident. The amendment defines State
resident to mirror what is already in statute. The
amendment clarifies that only State residents can nominate
parcels. The amendment addresses the concern that
individuals can nominate multiple parcels across the State
and would be limited to every three years, once a lease had
been purchased.
There being NO further OBJECTION, Amendment #1 was adopted.
Representative Croft questioned if there was a limit on the
initial nomination process.
REPRESENTATIVE HUGH FATE, SPONSOR, commented the
commissioner could adopt only one petition. Representative
Croft inquired if that language was located on Page 3, Line
25. Mr. Pound pointed out that the number adopted in the
amendment would change the language, making it more specific
to the commissioner's judicial review.
Representative Fate provided members with a new fiscal note,
dated 3/30/04. (Copy on File). He observed that HB 319
would generate a conservation minimum of $500,000 dollars
annually in land sale revenues. He hoped that an agreement
had been reached regarding the fiscal impact.
Co-Chair Williams asked if the Department was available to
address the fiscal notes.
JANET BURLESON-BAXTER, LEGISLATIVE LIAISON, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, offered to
answer questions for the Department.
JIM DIERINGER, STAFF, REPRESENTATIVE HUGH FATE, pointed out
that the new note dated 3/30/04.
Dick Mylius, (testified via teleconference), Deputy
Director, Division of Mining Land and Water, Department of
Natural Resources, anchorage, stated that he had not seen
that note and was not able to respond. The sponsor and the
Department had reached agreement on the previous note. Co-
Chair Harris clarified it would be $2 million dollars for
the next five years.
Mr. Dieringer advised that the differences between the two
fiscal notes, one dated 3/26/04 and the other dated 3/30/04,
was clerical category changes. He observed that there were
no changes to the numbers only the format.
Co-Chair Williams stated that he would hold the bill in
Committee so that the Department could address the fiscal
concern. Representative Fate interjected that his office
had gone over the notes with the Department and understood
that they had come to an agreement.
Co-Chair Harris commented that the fiscal note adds another
$355 thousand dollars to the FY05Department of Natural
Resources, Land Sales. It is also proposed that the
Department have an additional $481 thousand dollars for
FY06. He understood the funding during the out years would
come from program receipts and/or sale of lands. He
believed that passage of the bill, would generated an
additional $355 thousand dollars, which would be added to
the Department of Natural Resources budget. Mr. Dieringer
stated that was correct. When implementing any type of real
estate program, there is a lag period between the selection,
best interest findings time, the appraisals and the surveys.
When working with the Department, it will take about two
years. The sponsor agreed that between 18 to 24 months
would be reasonable. There would be no sales revenues until
th
up to the 18 month. Present year, would require funding of
$355 thousand dollars.
Co-Chair Harris asked if the fiscal note proposed no funding
for the FY05 budget. He thought that the Department would
have to "eat" the $355 thousand dollars, needing monies to
operate. Mr. Dieringer anticipated that there would be
program receipts to cover costs. In this year's budget, the
Division requested eight new positions and $400 thousand
dollars to develop a land sales program. He did not know if
that had been approved. He believed that there would be
enough money this year to implement the program; then
program receipts would come in by the third year to cover
all the other costs.
Co-Chair Williams requested that the fiscal note be
discussed with the Department.
Ms. Burleson-Baxter pointed out that version "W" will impact
the Department's proposed note.
Co-Chair Williams referenced the comparison document. (Copy
on File). He asked if that had changed. Ms. Burleson-
Baxter responded that it had changed from the side by side
presented of version "V". Co-Chair Williams requested an
amended version comparison. Ms. Burleson-Baxter offered to
provide that information.
HB 319 was HELD in Committee for further consideration.
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