02/17/2000 09:23 AM Senate FIN

SENATE BILL NO. 6                                                                                                               
"An Act relating to the disposal of state land."                                                                                
                                                                                                                                
                                                                                                                                
DARWIN PETERSON, Finance Committee Aide, Co-Chair Torgerson                                                                     
reviewed the adopted committee substitute, 1-LS0071\H and                                                                       
the proposed committee substitute, Version "M."  He noted                                                                       
that everywhere in Version "H" where the state is required                                                                      
to dispose of land, the word "offer" was included, and he                                                                       
added that the new language would read, "the state shall                                                                        
offer for disposal."  He continued that the number of                                                                           
acreage to be offered was changed from 250,000 acres to                                                                         
100,00 acres.  He offered that the "creation of the Land                                                                        
Disposal Advisory Board," was deleted from Version "H" and                                                                      
replaced by public nominations that are sent to the State                                                                       
Land Commission.  He continued that all the sections in the                                                                     
bill that address lapse dates are changed to June 30, 2009,                                                                     
which is the sunset date of the new Land Commission.  He                                                                        
noted that the previous sunset date was also deleted, so                                                                        
the Land Commission would exist in perpetuity.  He added                                                                        
that Section 7, Section 9, Section 11, that address the                                                                         
powers of the Commissioner, were given to the Commission in                                                                     
order to submit reports to the Legislature for analysis and                                                                     
assessment of market demand.  Mr. Peterson concluded that                                                                       
Version "M" of this bill was much shorter in length than                                                                        
the previous.  He noted that a fiscal note had not yet been                                                                     
requested yet for Version "M."                                                                                                  
                                                                                                                                
Co-Chair Torgerson suspected that this legislation would                                                                        
have a $10 million dollar fiscal note attached.  He noted                                                                       
that the state currently has 50,000 acres of land to be re-                                                                     
offered that was included in this legislation.  He                                                                              
continued that 150,000 acres would be added to this                                                                             
legislation and the fiscal note would reflect the necessary                                                                     
zoning costs, mapping costs, etceteras.                                                                                         
                                                                                                                                
Senator Adams referred to and asked for an explanation of                                                                       
Section Two, which creates the Land Sale Commission, and                                                                        
then to Section 10, which solves disputes between the                                                                           
Commissioner and the State Land Commission when there are                                                                       
problems deciding what lands should be offered in the first                                                                     
place.                                                                                                                          
                                                                                                                                
Co-Chair Torgerson explained how the land would be                                                                              
considered for distribution.                                                                                                    
                                                                                                                                
Senator Phillips referred to page four and asked what the                                                                       
difference was between permanent fund eligibility and                                                                           
living in Alaska for a year.                                                                                                    
                                                                                                                                
SENATOR TAYLOR responded that the primary reason for                                                                            
inserting this section was that a lot of public comment and                                                                     
concern was expressed about how Alaska land-holdings were                                                                       
being offered for sale.  The Department of Natural                                                                              
Resources was posting available land on the Internet.  He                                                                       
noted one example, where some groups of wealthy doctors                                                                         
were outbidding local Juneau residents who had tried                                                                            
obtaining these same offerings for years.  He outlined the                                                                      
legislation that was passed as a result of this situation,                                                                      
with allowances for residents who qualify for the permanent                                                                     
fund dividend.                                                                                                                  
                                                                                                                                
Senator Phillips questioned the current law and its                                                                             
residency requirements that allows for at least one year                                                                        
prior to date of application and pointed out that this new                                                                      
committee substitute proposes something else.  He asked                                                                         
what the differences were between the two.  He generally                                                                        
noted conflicts of using the Permanent Fund Dividend status                                                                     
as a determinant for this program qualification.                                                                                
                                                                                                                                
Senator Taylor responded that they would work on this                                                                           
aspect.                                                                                                                         
                                                                                                                                
Senator Taylor added that included in the first "blush" of                                                                      
this bill, was a requirement that the purchaser would pay                                                                       
for the appraisal and land survey, which would help                                                                             
diminish the attached fiscal note.  He noted that this                                                                          
clause had been taken out of the latest Version.                                                                                
                                                                                                                                
Co-Chair Torgerson responded that this issue would be                                                                           
considered again, but pointed out that the state as                                                                             
property owner is the only entity that can bring action                                                                         
before local planning commissions.  He noted that this did                                                                      
not mean that the Committee could include some type of                                                                          
stipulation to pay costs up front.  He pointed out that if                                                                      
the State were going to sell land, somehow, they would have                                                                     
to come up with the necessary money and establish a solid                                                                       
program to transfer this property.                                                                                              
                                                                                                                                
DAVID SNEED, testified via teleconference from Wrangell.                                                                        
He stated that he had been a resident of Alaska for eleven                                                                      
years.  He noted that he has tried saving money in order to                                                                     
buy land, but added that the he was unable to keep up with                                                                      
rising appraisals.  He recommended that the Committee                                                                           
encourage development of remote sites, while making these                                                                       
areas less dependent upon publicly supplied services.  He                                                                       
added that the Department of Natural Resources makes too                                                                        
much land available for recreation rather than for private                                                                      
residential status.  He outlined his ideas about making                                                                         
land available for agricultural pursuits.  He stated his                                                                        
concern about two real estate members being placed on the                                                                       
Commission.                                                                                                                     
                                                                                                                                
                                                                                                                                
Tape 31, Side A, 11:05 AM.                                                                                                      
                                                                                                                                
                                                                                                                                
Senator Phillips asked Mr. Sneed if he thought applicants                                                                       
under this legislation should pay for the land survey and                                                                       
appraisal.                                                                                                                      
                                                                                                                                
Mr. Sneed did not respond.                                                                                                      
                                                                                                                                
The bill was HELD in Committee.