03/26/2019 01:00 PM House MILITARY & VETERANS' AFFAIRS

         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.