Legislature(1997 - 1998)

03/26/1997 10:17 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                         March 26, 1997                                        
                           10:17 A.M.                                          
                                                                               
                                                                               
  TAPES                                                                        
                                                                               
  SFC-97, # 71, Side 1 (000-246)                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  After a brief  recess, Senator  Bert Sharp, Cochair,  Senate                 
  Finance Committee,  reconvened the meeting  at approximately                 
  10:17 A.M.                                                                   
                                                                               
  PRESENT                                                                      
                                                                               
  In  addition  to  COCHAIR SHARP,  COCHAIR  PEARCE,  SENATORS                 
  PHILLIPS, TORGERSON, and ADAMS were present when the meeting                 
  was reconvened.  SENATORS DONLEY and PARNELL  did not attend                 
  the meeting.                                                                 
                                                                               
  Also Attending:                                                              
  SENATOR  LYDA  GREEN;  CAROL  CARROLL,  Division  of Support                 
  Services,  Department of  Natural  Resources;  and aides  to                 
  committee members.                                                           
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
       SB 109  AGRICULTURAL LAND                                               
                                                                               
       SENATOR  GREEN  explained  a  proposed  CS  work  draft                 
       (version B) before the committee.  COCHAIR PEARCE MOVED                 
       to  ADOPT  the   draft  as  CSSB  109(FIN).     Without                 
       objection, it was  ADOPTED.   Testimony was heard  from                 
       CAROL CARROLL.  COCHAIR PEARCE MOVED CSSB 109(FIN) from                 
       committee  with  individual  recommendations   and  the                 
       appropriate fiscal  notes.   There being  no objection,                 
       CSSB  109(FIN) was REPORTED OUT with forthcoming fiscal                 
       notes from the Department of  Law and the Department of                 
       Natural Resources and fiscal notes for  SB 109 from the                 
       Department of Law (138.5) and the Department of Natural                 
       Resources  (25.0/Support   Services,  28.5/Agriculture,                 
       131.5/Land).                                                            
                                                                               
  SENATE BILL NO. 109                                                          
  "An Act  relating to land used for agricultural purposes and                 
  to  state  land  classified  for  agricultural  purposes  or                 
  subject to the restriction of  use for agricultural purposes                 
  only;  and  annulling  certain  program  regulations  of the                 
  Department of  Natural Resources that are  inconsistent with                 
                                                                               
                                                                               
  the amendments made by this Act."                                            
                                                                               
                                                                               
  COCHAIR SHARP summarized the last meeting on SB 109 in which                 
  several amendments had  been discussed.   He noted they  had                 
  been included in a draft CS which was before the committee.                  
                                                                               
  SENATOR LYDA GREEN pointed out she  was working from the "B"                 
  version work draft dated  3/26/97.  She had worked  with the                 
  department  on conceptual  changes and  compromise language.                 
  There were four areas in which the department had  requested                 
  changes.    The  first was  choosing  either  a conservation                 
  easement or  a perpetual covenant  and she chose  the latter                 
  for inclusion  in the  bill.   The second  area concerned  a                 
  limited  liability policy for the small  window of time when                 
  the  land reverts back to the state during conveyances being                 
  made from  agriculture rights  to perpetual  covenant.   The                 
  third request was  for survey  language in Section  2.   The                 
  language was permissive rather than a requirement, therefore                 
  the commissioner had the ability to require cadastral survey                 
  or to allow it to  be done by aliquot parts.   Fourth, was a                 
  provision  for  payment to  the  state  when land  was  sold                 
  outside the family.  There has a  flat fee of $6,000 for the                 
  right to build  a residence or  the dwelling site right,  or                 
  the owner  of  the agriculture  rights  land could  have  an                 
  appraisal.  If it was lower than $6,000, the appraisal would                 
  be the applicable figure.  That was not  to be confused with                 
  impacting the  total  value of  the  land or  a  per-acreage                 
  increase because the  only difference  that was assumed  was                 
  the  right  to  build  a  house   and  to  subdivide.    The                 
  agriculture purpose and use of the land remained the same.                   
                                                                               
  SENATOR  ADAMS   asked  the  difference   between  perpetual                 
  covenants  and   conservation  easements.     SENATOR  GREEN                 
  explained the reason for addressing the issue was to get the                 
  state off the document.  Currently, with agriculture rights,                 
  the state is first in line in case the land reverts for non-                 
  payment  or  non-performance,  rather  than  an  independent                 
  lender.   Therefore, there  has been  the  inability for  an                 
  agriculture  rights  owner  to  get   private  funding.    A                 
  conservation easement was nearly identical because the state                 
  stays on the title and she didn't want that.  In a perpetual                 
  covenant  the  title  flows to  the  landowner  with certain                 
  restrictions on their ability to subdivide.                                  
                                                                               
  COCHAIR SHARP asked for  a motion to adopt the  proposed CS.                 
  COCHAIR PEARCE so  MOVED.  Without objection,  CSSB 109(FIN)                 
  was ADOPTED.                                                                 
  SENATOR  GREEN  brought  up  an   additional  item  for  the                 
  committee's information.  The department had no objection to                 
  repealing   the   regulations  concerning   the  agriculture                 
  homestead program in the bill.  COCHAIR SHARP asked if there                 
                                                                               
                                                                               
  were  any  new   or  additional  areas  of  concern  by  the                 
  department  in  the   CS  from  what  had   been  previously                 
  discussed.  SENATOR GREEN brought up  page 7, line 4, noting                 
  the department had previously suggested the wording  "single                 
  residence" and "farm employee housing"  but has accepted the                 
  current substitute language.                                                 
                                                                               
  COCHAIR  SHARP  invited  the  department  representative  to                 
  answer questions or offer comments on the proposed CS.                       
                                                                               
  CAROL CARROLL,  Division of Support  Services, Department of                 
  Natural  Resources, testified  that she  received the  draft                 
  moments earlier, faxed a  copy to the Division of  Land, but                 
  there was not  enough time to look at  it.  She acknowledged                 
  they had worked  with the sponsor,  but that they were  "not                 
  quite there yet and we'd like to have time to look at this."                 
  She suggested it was getting closer,  but could not say more                 
  without having the professionals really look at the bill.                    
                                                                               
  SENATOR  GREEN  pointed   out  to   Ms.  Carroll  that   the                 
  information she had yesterday afternoon  was essentially the                 
  same, but there  was some clarification because  the drafter                 
  had misunderstood  her office   "on intent in  conveying and                 
  had constructed it for  one set of rules for  property under                 
  640 acres and then applied that land over 640 acres would be                 
  charged for the  whole thing, and  that's not what this  was                 
  ever  intended  to address  because  that's already  covered                 
  under other statutes."                                                       
                                                                               
  MS. CARROLL reiterated that she had not had a chance to look                 
  at the bill  but was working  closely with Senator Green  on                 
  it.                                                                          
                                                                               
  COCHAIR SHARP brought  up page 8,  line 11, inquiring if  it                 
  was  a  department   request  or   caused  any   significant                 
  "heartburn."  SENATOR GREEN responded  that they deferred to                 
  six years because it referred to a trespass statute versus a                 
  real property statute and it was more realistic.                             
                                                                               
  MS. CARROLL  was uncertain how the  department professionals                 
  would view the language.                                                     
                                                                               
  COCHAIR SHARP called for additional  questions.  There being                 
  none, he asked the pleasure of the committee.                                
                                                                               
  COCHAIR  PEARCE  MOVED  CSSB  109(FIN)  from  committee with                 
  individual recommendations and the appropriate fiscal notes.                 
  There being  no objection,  CSSB 109(FIN)  was REPORTED  OUT                 
  with forthcoming fiscal notes from the Department of Law and                 
  the Department  of Natural Resources and fiscal notes for SB
  109 from the Department of Law (138.5) and the Department of                 
  Natural Resources (25.0/Support  Services, 28.5/Agriculture,                 
  131.5/Land).                                                                 
                                                                               
                                                                               
  COCHAIR SHARP announced the next meeting and agenda.                         
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:31 A.M.                        

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