04/03/1993 10:00 AM House FIN

  HB 59     An  Act  making  a special  appropriation  to  the                 
            Department  of  Natural Resources  for  refunds to                 
            certain veterans who purchased  state land and for                 
            reimbursement  to the University of Alaska for the                 
            veterans'   land   discount   applied    to   land                 
            transferred  to  the  University  of  Alaska;  and                 
            providing for an effective date.                                   
                                                                               
                                                                               
                                1                                              
                                                                               
                                                                               
            CS HB 59 was reported out  of Committee with a "do                 
  pass"          recommendation.                                               
  HOUSE BILL 59                                                                
                                                                               
       "An  Act  making   a  special   appropriation  to   the                 
       Department of  Natural Resources for refunds to certain                 
       veterans who purchased state land and for reimbursement                 
       to  the  University of  Alaska  for the  veterans' land                 
                                                                               
                                3                                              
                                                                               
                                                                               
       discount applied  to land transferred to the University                 
       of Alaska; and providing for an effective date."                        
                                                                               
  REPRESENTATIVE ELDON MULDER  spoke in  favor of HB  59.   He                 
  stated that in 1978,  the Land Discount Program was  created                 
  by  the  Tenth Legislature.    The program  granted eligible                 
  persons a discount  on the purchase  price of land sold  for                 
  residential  use.  The discount amounted  to a percentage of                 
  the  price of the land for each full year that the purchaser                 
  had been a  resident of the state.  The discount was limited                 
  to 50% or  $25 thousand dollars, whichever was less.   To be                 
  eligible, a person must have been physically  present in the                 
  state for at least 12 months.                                                
                                                                               
  The program was amended in 1979 to increase the discount for                 
  eligible veterans.   Under  the amended  program, a  veteran                 
  could receive a discount  which was limited to 75%  or $37.5                 
  thousand dollars, whichever was less.                                        
                                                                               
  He  noted  that  a  problem  arose  with  veterans  who  had                 
  purchased land from the State between April 1, 1983 and July                 
  6, 1984.  These  veterans had not been granted  any discount                 
  at  all,  due to  the fact  that the  program was  not being                 
  implemented then and the new program  did not go into effect                 
  until July 6, 1984.                                                          
                                                                               
  In  an  effort  to  correct   the  inequity,  the  Sixteenth                 
  Legislature passed CS  HB 134 (RES)  which made the  current                 
  veterans land  benefit effective  retroactively to April  1,                 
  1983  when  DNR  stopped the  implementation  of  the former                 
  discount program.  HB 176 provides an appropriation to cover                 
  previous  legislation.     The  bill   provides  a   special                 
  appropriation  to the  Department of  Natural Resources  for                 
  refunds to veterans  who purchased state land  between April                 
  1, 1983 and July 6, 1984.  It also reimburses the University                 
  of  Alaska for the  veterans' land discount  that applied to                 
  land that was transferred to the University of Alaska.                       
                                                                               
  Co-Chair  MacLean  MOVED to  report CS  HB  59 (MLV)  out of                 
  Committee with  individual recommendations.  There  being NO                 
  OBJECTION, it was so ordered.                                                
                                                                               
  CS  HB 59  (MLV) was  reported out  of Committee with  a "do                 
  pass" recommendation.