ALASKA STATE LEGISLATURE  HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS  March 26, 2019 1:01 p.m. MEMBERS PRESENT Representative Gabrielle LeDoux, Chair Representative Chris Tuck, Vice Chair Representative Geran Tarr Representative Steve Thompson Representative Sharon Jackson Representative George Rauscher MEMBERS ABSENT  Representative Chuck Kopp COMMITTEE CALENDAR  SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 3 "An Act relating to the purchase and sale of state land; relating to discounts for veterans on state land purchases; and relating to the assignment of permanent fund dividends to purchase state land." - MOVED SSHB 3 OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION  BILL: HB 3 SHORT TITLE: STATE LAND SALE; PFD VOUCHER AND ASSIGN. SPONSOR(s): REPRESENTATIVE(s) RAUSCHER 02/20/19 (H) PREFILE RELEASED 1/7/19 02/20/19 (H) READ THE FIRST TIME - REFERRALS 02/20/19 (H) MLV, RES, FIN 03/13/19 (H) SPONSOR SUBSTITUTE INTRODUCED 03/13/19 (H) READ THE FIRST TIME - REFERRALS 03/13/19 (H) MLV, RES, FIN 03/14/19 (H) MLV AT 2:00 PM GRUENBERG 120 03/14/19 (H) Heard & Held 03/14/19 (H) MINUTE(MLV) 03/26/19 (H) MLV AT 1:00 PM GRUENBERG 120 WITNESS REGISTER DARRELL BREESE, Staff Representative George Rauscher Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Answered questions on the sponsor substitute for HB 3 on behalf of Representative Rauscher, prime sponsor. ACTION NARRATIVE 1:01:56 PM CHAIR GABRIELLE LEDOUX called the House Special Committee on Military and Veterans' Affairs meeting to order at 1:01 p.m. Representatives LeDoux, Thompson, Jackson, and Rauscher were present at the call to order. Representatives Tuck and Tarr arrived as the meeting was in progress. HB 3-STATE LAND SALE; PFD VOUCHER AND ASSIGN.  1:02:42 PM CO-CHAIR LEDOUX announced that the only order of business would be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 3, "An Act relating to the purchase and sale of state land; relating to discounts for veterans on state land purchases; and relating to the assignment of permanent fund dividends to purchase state land." 1:03:41 PM REPRESENTATIVE THOMPSON asked if the proposed bill would potentially cost the state $85,000. REPRESENTATIVE RAUSCHER, prime sponsor of SSHB 3, explained that unless land was monetized through the program there would be no real cost. REPRESENTATIVE THOMPSON surmised that there would be no upfront cost, but rather a reduction in possible revenues similar to an indirect expenditure. 1:04:51 PM DARRELL BREESE, Staff, Representative George Rauscher, Alaska State Legislature, on behalf of Representative Rauscher, prime sponsor of SSHB 3, acknowledged that [the $85,000] would be a deduction that happens if land sales occur. 1:05:02 PM REPRESENTATIVE THOMPSON asked what would happen if the revenue wasn't available to pay for the land due to a reduced permanent fund dividend (PFD). REPRESENTATIVE RAUSCHER explained that if someone were to apply his/her PFD towards the purchase of land, but the sale did not ensue, then that person would still receive a PFD that year. 1:07:23 PM REPRESENTATIVE TUCK expressed his concern that there would be an indirect expenditure and asked for an explanation to the attached Department of Natural Resources fiscal note. REPRESENTATIVE RAUSCHER noted that the numbers on the fiscal note reflect an average. He reiterated that there would be no cost unless land was monetized through the land sale program. 1:09:37 PM REPRESENTATIVE TUCK offered his understanding that the 25 percent discount would be applied to the first purchase of state land and the one-third discount would be applied to the second purchase. He asked if this was correct. REPRESENTATIVE RAUSCHER confirmed that the 25 percent discount is currently provided under existing statute. He added that the one-third discount "could be but doesn't mean that there would be." REPRESENTATIVE TUCK, referencing the fiscal note, observed that the 25 percent and one-third discounts may not be combined for the purchase of one parcel. REPRESENTATIVE RAUSCHER acknowledged that the two discounts may not be combined and explained that the one-third discount would be applied to the second purchase of land if a different bid was won. 1:10:10 PM REPRESENTATIVE TUCK inquired as to who asked for this piece of legislation. 1:10:26 PM REPRESENTATIVE RAUSCHER explained that veterans have expressed a need to get back on their feet after returning home from overseas. He stated that the proposed bill would help them do that, as well as increase the number of parcels they buy through the land sale program each year. 1:11:25 PM CO-CHAIR LEDOUX asked if there was any specific veterans' organization involved. REPRESENTATIVE RAUSCHER replied that there was not. 1:11:49 PM REPRESENTATIVE THOMPSON moved to report SSHB 3, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, SSHB 3 was reported out of the House Special Committee on Military and Veterans' Affairs. 1:12:23 PM ADJOURNMENT  There being no further business before the committee, the House Special Committee on Military and Veterans' Affairs meeting was adjourned at 1:12 p.m.