Legislature(2019 - 2020)BARNES 124
04/12/2019 01:00 PM House RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| HB3 | |
| Confirmation Hearings(s):|| Board of Game | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 3 | TELECONFERENCED | |
HB 3-STATE LAND SALE; PFD VOUCHER AND ASSIGN.
1:03:20 PM
CO-CHAIR TARR announced that the first 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."
1:04:03 PM
REPRESENTATIVE RAUSCHER, sponsor, specified SSHB 3 would provide
for [Alaska residents] to utilize their permanent fund dividend
(PFD) for the purchase of [state] land. Additionally, he said,
SSHB 3 would provide a 33 percent [discount] to veterans who are
bidding for land in state land disposal sales. He said he would
be proposing an amendment that addresses some of the questions
brought up during prior hearings of the bill.
1:04:56 PM
REPRESENTATIVE TUCK offered his understanding that [SSHB 3]
would provide for a veteran to receive a 25 percent discount on
his/her first purchase of land and a 33 percent discount on a
second purchase. He asked whether [SSHB 3] would also provide a
33 percent discount on any additional land purchases beyond the
second purchase.
REPRESENTATIVE RAUSCHER offered his belief that after looking
over the original bill it was decided that "the first purchase
was still going to be 25 or vice versa and the second purchase
could have been 33 percent." The problem, he said, was that use
of the 33 percent [by a veteran] was tied to [assigning his/her]
PFD. "But they both were in existence," he continued, "giving a
veteran two chances with a big percentage advantage on each one
of the parcels he was bidding on instead of once in a lifetime,
which is where each program tried to be to begin with."
1:06:02 PM
REPRESENTATIVE TUCK offered his understanding that it would be
two purchases at discounts. He said he supports the forthcoming
amendment as a great fix, but suggested the committee discuss
whether there should be a limit of two purchases or an
indefinite number of purchases for the 33 percent discount.
CO-CHAIR TARR directed attention to Section 3, which states, "A
veteran is entitled to [ONLY] one discount under (a) of this
section and one discount under (f) of this section during the
veteran's lifetime." She said she therefore thought the part
about being able to use it once had been addressed.
1:07:21 PM
REPRESENTATIVE RAUSCHER deferred to Mr. Darrell Breese to answer
the question.
CO-CHAIR TARR offered her understanding that the interest is in
ensuring that the language be clear that [a veteran] only gets
to use either the 25 percent or the 33 percent, and that both
can be used but [a veteran] only gets to use each of them once.
DARRELL BREESE, Staff, Representative George Rauscher, Alaska
State Legislature, on behalf of Representative Rauscher,
sponsor, responded that under the bill as currently written
without the amendment [SSHB 3], an individual can get the 25
percent discount on purchases before August 1, 2019, only one
time. If the bill were passed, he explained, then [a veteran]
could get the 33 percent discount after August 1 only one time.
A third purchase is not available with the discount, he
continued, the third sale would be at the full price of the
property.
1:08:27 PM
REPRESENTATIVE TUCK offered his understanding of what he heard:
"From this day forward you get a one chance at 33 percent, but,
however, if you had been able to take advantage of the 25
percent before August 1, 2019, then you get a second stab with
the 33 percent."
MR. BREESE answered that [SSHB 3] would allow [a veteran] to get
both: 25 percent on land purchased beforehand and then 33
percent on land purchased after August 1. However, he noted,
the [forthcoming] amendment would change things a bit and he
doesn't want members to confuse the two.
1:09:43 PM
REPRESENTATIVE RAUSCHER moved to adopt Amendment 1, labeled 31-
LS0028\M.1, Fisher, 4/6/19, which read:
Page 1, line 2:
Delete "and"
Page 1, line 3, following "land":
Insert "; and providing for an effective date"
Page 1, line 6:
Delete "25 percent on"
Insert "one-third of [25 PERCENT ON]"
Page 2, lines 9 - 11:
Delete all material.
Renumber the following bill sections accordingly.
Page 2, line 12:
Delete "new subsections"
Insert "a new subsection"
Page 2, lines 13 - 19:
Delete all material.
Page 2, line 20:
Delete "(g)"
Insert "(f)"
Following "another":
Insert "veterans'"
Page 3, following line 12:
Insert new bill sections to read:
"* Sec. 6. The uncodified law of the State of
Alaska is amended by adding a new section to read:
VETERANS' DISCOUNT; APPLICABILITY.
Notwithstanding the amendment of AS 38.05.940(a) by
sec. 1 of this Act, AS 38.05.940(a), as it read on
July 31, 2019, applies to discounted land sales to
eligible veterans under AS 38.05 that occurred on or
before July 31, 2019.
* Sec. 7. This Act takes effect August 1, 2019."
1:10:56 PM
REPRESENTATIVE RASMUSSEN objected for discussion purposes.
REPRESENTATIVE RAUSCHER explained Amendment 1 would provide that
going forward there would be only one choice. From listening to
Representative Tuck at the last hearing, he continued, [SSHB 3]
is too confusing. He offered his belief that Representative
Tuck was "looking for one option here and getting rid of the 25
and increasing the only option now and letting it be 33
percent," which is what Amendment 1 is chasing.
CO-CHAIR TARR offered her understanding that if Amendment 1 were
incorporated into the bill, the 25 percent [discount] would be
eliminated after August 1, and after August 1 the only option
would be the 33 percent discount and [the veteran] could assign
his/her PFD to make the payment.
MR. BREESE replied correct. First in Amendment 1, he explained,
the 25 percent would be changed to 33 percent and later in the
amendment the 33 percent section would be deleted from the bill
totally so that only a 33 percent discount is offered. He
further explained that Amendment 1 would add a new section to
the bill, Section 6, which would provide that if a veteran had
taken the 25 percent discount before the bill's effective date,
August 1, 2019, the veteran would be ineligible for the 33
percent discount. A veteran would be eligible for only one
discount, he added, the 25 percent if it has already been taken
or the 33 percent moving forward.
1:12:16 PM
REPRESENTATIVE SPOHNHOLZ observed Amendment 1 would delete all
material on page 2, lines 9-11, of the bill, which is Section 3.
She noted Section 3 is the limit on the number of times that a
veteran is eligible to use these discounts. She requested the
section of law be pointed out that allows any limitation on the
number of times this can be used.
MR. BREESE drew attention to the language that is underlined and
bold within Section 3 of the bill, and explained that that is
what the bill is proposing to add to existing statute. By not
adding that language to existing statute, he continued, it is
basically deleting this [proposed new language] from the bill.
He said Section 3 looks at AS 38.05.940(c), which states: "A
veteran is entitled to only one discount under this section
during the veteran's lifetime."
CO-CHAIR TARR observed Amendment 1 would eliminate Section 4 as
well, because the amendment would delete [page 2] lines 13-19,
in the bill that add the 33 percent discount, thereby making the
existing Section 1 the default discount section that gets
updated to 33 percent.
MR. BREESE answered correct and noted Amendment 1 would not
delete all of Section 4, only subsection (f). He explained
Section 4 is the establishment of the 33 percent discount if
[the veteran] uses his/her PFD, and under Amendment 1 this would
go away. Subsection (g) of Section 4, he further explained,
would remain under Amendment 1 and would be re-lettered to
subsection (f), so Section 4 would state, "A discount under this
section may not be combined with another discount under this
section." He said this provision would prevent three veterans
from getting together and purchasing a parcel of land for free.
1:14:29 PM
REPRESENTATIVE RASMUSSEN removed her objection to Amendment 1.
There being no further objection, Amendment 1 was adopted.
CO-CHAIR TARR noted the bill, as amended, was now before the
committee for discussion.
1:14:56 PM
REPRESENTATIVE HANNAN inquired about the length of residency for
a veteran to qualify. She posed a scenario in which [a veteran]
comes to Alaska for one year, gets the discount, buys the land,
and then doesn't remain an Alaska resident.
REPRESENTATIVE RAUSCHER replied that, constitutionally, he
doesn't think this could be stopped. He deferred to Mr. Breese
or Mr. Marty Parsons to answer further.
MARTY PARSONS, Director, Central Office, Division of Mining,
Land and Water, Department of Natural Resources (DNR), confirmed
Representative Rauscher is correct. He said, constitutionally,
[a veteran] must be a resident to qualify to purchase the land.
If [the veteran] then left the state, he continued, it would be
no different than someone purchasing land through the regular
auction which requires that the person be a resident of the
state, and if that person left Alaska the next year, he/she
would still have the land. The bill doesn't change that, he
said.
1:16:41 PM
REPRESENTATIVE RASMUSSEN asked whether there is a clause in
statute or regulation that if a person chooses to purchase the
land with his/her PFD, and then leaves the state and no longer
qualifies for the PFD, that a payment arrangement would be made
when the person no longer qualifies for a PFD.
MR. BREESE replied that the bill, as restructured with the
adoption of Amendment 1, now says a person can assign his/her
PFD to make the payments. If the person leaves the state and is
no longer eligible for the PFD, the person would have to make
the payments out-of-pocket separately from any PFD funds that
would have been received had the person remained in the state.
REPRESENTATIVE RASMUSSEN asked whether it says that in the bill.
MR. BREESE responded that the way the bill is now amended, the
PFD is the only thing assigned to making the payment. While not
addressed in the bill anywhere, he said, a purchaser loses the
eligibility for PFD payment if he/she is no longer eligible for
the PFD. The purchaser, he continued, is still on the hook for
payment to fulfill his/her contractual obligations with DNR for
the land purchase.
REPRESENTATIVE RAUSCHER added that [assignment of] the PFD is no
longer tied to [a veteran receiving the 33 percent discount] for
the land purchase. An Alaska resident, he said, would be able
to purchase land regardless of whether he/she is a veteran and
if the purchaser wants to put his/her PFD toward the purchase of
this land, it can now be done at any time, even for [previously
purchased land].
1:19:24 PM
CO-CHAIR TARR asked whether it would be a difficulty for DNR to
have a purchaser switch from assignment of his/her PFD to
another form of payment.
MR. PARSONS answered that under DNR's reading of the bill it
wouldn't be any more of a burden. He said the purchaser would
need to notify DNR that he/she is no longer pledging his/her PFD
to make a payment and DNR would continue to process the
purchaser's contractual payments as the department normally
would. If the purchaser failed to notify DNR and payment didn't
come through, he stated, the purchaser would become in arrears
and DNR would have to potentially start default proceedings.
1:20:40 PM
REPRESENTATIVE TUCK inquired where in the bill [the discount] is
limited to a one-time use, given Section 3 is now eliminated.
MR. BREESE replied it is in the current statute, AS 38.05940(c),
which states, "A veteran is entitled to only one discount under
this section during the veteran's lifetime.
REPRESENTATIVE RAUSCHER stated he hopes he took everyone's
concerns into account. He offered his belief that Amendment 1
fixed everyone's concerns, that everyone thought it was a good
bill, and that the bill has been smoothed out for DNR. He asked
for the committee's support of the bill.
1:22:52 PM
REPRESENTATIVE HOPKINS moved to report SSHB 3, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSSSHB
3(RES) was reported out of the House Resources Standing
Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Allen Francis Barrette Resume.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmation |
| Orville Huntington Biographical Sketch.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| BoG Appointees Letters of Support.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Letters of Opposition Combined 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| HB03 ver M amendment M.1.pdf |
HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB 3 Sponsor Statement 3.12.2019.pdf |
HMLV 3/14/2019 2:00:00 PM HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB 3 Ver A 3.12.2019.pdf |
HMLV 3/14/2019 2:00:00 PM HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB 3 Ver M 3.12.2019.pdf |
HMLV 3/14/2019 2:00:00 PM HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB 3 Explanation of Changes 3.12.2019.pdf |
HMLV 3/14/2019 2:00:00 PM HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB 3 DOR Fiscal Note.pdf |
HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| HB3 DNR Fiscal Note.pdf |
HMLV 3/26/2019 1:00:00 PM HRES 4/3/2019 1:00:00 PM HRES 4/5/2019 1:00:00 PM HRES 4/12/2019 1:00:00 PM |
HB 3 |
| Board of Game Supporting Document - RHAK Letter of Support Barrette & Huntington 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game |
| Barrette Supporting Document - Cummings Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Banks Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Faust Letter of Opposition 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Kowalsky Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Lindsey Letter of Opposition 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Nicole Schmitt Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Sarns Letter of Opposition 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Schmitt Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Strickland Letter of Opposition 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| BoG Appointees Letter of Support - Grove 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| BoG Appointees Letter of Support - KRSA 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| BoG Letter of Support - Van Saun 4.11.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrettee Supporting Document - Eckstein Letter of Opposition 4.12.19_Redacted.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Appointments |
| Barrette Supporting Document - Bontempi Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrettee Supporting Document - Taylor Letter of Opposition 4.12.19_Redacted.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Warwick Letter of Opposition 4.12.19_Redacted.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |
| Barrette Supporting Document - Maiellaro Letter of Opposition 4.12.19.pdf |
HRES 4/12/2019 1:00:00 PM |
Board of Game Confirmations |