Legislature(2003 - 2004)
04/19/2004 02:15 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.
Representative Fate MOVED to ADOPT Amendment #2 which
replaces the previous Amendment #2. Co-Chair Williams
OBJECTED for purposes of discussion.
Amendment #2, Version W.5 dated 4-19-04, reads:
Page 1, line 2, following "deeds;":
Delete "and"
Page 1, line 3, following "sites":
Insert "; and providing for an effective date"
Page 3, lines 6 - 7:
Delete "Sales under this section may be at public or
private sale under (g) of this section."
Page 3, lines 25 - 28:
Delete all material and insert:
"(f) A resident may nominate a parcel for
disposal under this section and, if the resident has
not leased or purchased land under this section during
the three-year period preceding the date of nomination,
may apply for a lease for the nominated parcel under
(b) of this section."
Page 3, line 29:
Delete "five"
Insert "10"
Page 4, line 2:
Delete "400"
Insert "700"
Page 4, line 6, following ";":
Insert "and"
Page 4, lines 7 - 9:
Delete all material.
Page 4, line 10:
Delete "(4)"
Insert "(3)"
Page 4, following line 11:
Insert a new bill section to read:
"* Sec. 5. AS 38.05.600(f) as enacted in sec. 4 of
this Act, takes effect January 1, 2005."
JIM POUND, STAFF TO REPRESENTATIVE FATE, explained that
Amendment #2, Version W.5, adds an effective date clause in
the bill title. The language on page 3, lines 6-7 addresses
and eliminates private sales, which had been a concern.
Paragraph (f) in Section 4 eliminates the first right of
refusal clause and allows an individual to file for a lease.
The amendment expands "not to exceed" from five to ten acres
because several organized boroughs have platting rules
requiring a minimum of ten acres for cabin sites. This
change would make more land available within those boroughs.
Representative Chenault asked which of the boroughs require
10-acre parcels. Mr. Pound replied that both the Mat-Su and
North Star Boroughs have 10-acre requirements.
Mr. Pound explained that because of the expansion to 10
acres, the waterfront language has been changed from 400
feet to "may not exceed 700 feet." The meander mile has been
eliminated because it was a buffer zone inadvertently left
in paragraph 3 when the 660-foot buffer zone was removed.
The amendment also adds applicability to be effective
January 1, 2005. Currently the Department of Natural
Resources (DNR) has remote recreational cabin staking in
excess of 13 acres and if the bill takes effect before that
process is completed, it would change the rules in mid-
stream.
Co-Chair Williams removed his objection. Amendment #2
Version W.5 was adopted.
JIM DERRINGER, STAFF TO REPRESENTATIVE FATE, explained that
the sponsor had worked with the DNR on the fiscal note to
arrive at an agreement on the revenues, which the sponsor
set higher than the Department's figures. The revenues
nearly doubled when the parcels changed from 5 acres to 10
acres. The Department's initial cost to implement the
program increased from $300 thousand to $390 thousand, which
is justifiable. He said that the program would begin to
break even after the third year, and would start to generate
revenue for the State thereafter.
NICO BUS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
NATURAL RESOURCES, agreed that the DNR had worked with the
sponsor on the fiscal note. The revenue has increased with
the shift to 10-acre parcels, but he thought that the timing
of the revenue stream was "optimistic."
Representative Chenault asked how Mr. Bus foresaw the two
programs working simultaneously. Mr. Bus deferred to Mr.
Mylius for explanation.
DICK MYLIUS, DEPUTY DIRECTOR, DIVISION OF MINING LAND AND
WATER, DEPARTMENT OF NATURAL RESOURCES, VIA TELECONFERENCE,
ANCHORAGE, said that the DNR hadn't figured out how the two
programs would operate, although the differences between
them aren't as great with the new Amendment #2. The main
change is that under this proposal, individuals would be
nominating specific parcels. Mr. Mylius stated that if
nominations were in an area where more parcels were offered,
the DNR would roll those into the existing program. These
would not be entirely distinct programs.
Representative Chenault pointed out that the fiscal note
reflects 5 full-time and one part-time staff, and expands to
7 full-time and one part-time staff in 2010. He commented
that if the two programs were combined at some point, he
would expect the fiscal note to drop. Mr. Mylius replied
that the DNR initially envisions two separate programs
because many people would apply for the parcels. The largest
initial cost under HB 319 would involve processing
individual applications for specific parcels.
Representative Fate MOVED to report CSHB 319(FIN) out of
Committee with individual recommendations and accompanying
fiscal notes. There being NO OBJECTION, it was so ordered.
CSHB 319(FIN) was REPORTED out of Committee with individual
recommendations and with two new fiscal impact notes.
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