HOUSE BILL NO. 319 An Act relating to the disposal of state land by lottery; and relating to the disposal, including sale or lease, of remote recreational cabin sites. Co-Chair Harris MOVED to ADOPT work draft #23-LS0477\W, Bullock, 4/2/04, as the version of the legislation before the Committee. There being NO OBJECTION, it was adopted. JIM POUND, STAFF, REPRESENTATIVE HUGH FATE, discussed the committee substitute addressing two primary concerns. The first change is the 100% penalty clause at the end of the contract line in Sections 2 and 3; the second change deletes the authority language. He believed that the changes would enhance the bill. Mr. Pound noted Amendment #1, #23- LS0477\W.2, Bullock, 4/13/04. (Copy on File). Co-Chair Harris MOVED to ADOPT Amendment #1. Co-Chair Williams OBJECTED. PETE ECKLUND, STAFF, REPRESENTATIVE BILL WILLIAMS, reviewed the amendment, noting that it would clarify, that in order to nominate a parcel under the program, the person would need to be a State resident. The amendment defines State resident to mirror what is already in statute. The amendment clarifies that only State residents can nominate parcels. The amendment addresses the concern that individuals can nominate multiple parcels across the State and would be limited to every three years, once a lease had been purchased. There being NO further OBJECTION, Amendment #1 was adopted. Representative Croft questioned if there was a limit on the initial nomination process. REPRESENTATIVE HUGH FATE, SPONSOR, commented the commissioner could adopt only one petition. Representative Croft inquired if that language was located on Page 3, Line 25. Mr. Pound pointed out that the number adopted in the amendment would change the language, making it more specific to the commissioner's judicial review. Representative Fate provided members with a new fiscal note, dated 3/30/04. (Copy on File). He observed that HB 319 would generate a conservation minimum of $500,000 dollars annually in land sale revenues. He hoped that an agreement had been reached regarding the fiscal impact. Co-Chair Williams asked if the Department was available to address the fiscal notes. JANET BURLESON-BAXTER, LEGISLATIVE LIAISON, OFFICE OF THE COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, offered to answer questions for the Department. JIM DIERINGER, STAFF, REPRESENTATIVE HUGH FATE, pointed out that the new note dated 3/30/04. Dick Mylius, (testified via teleconference), Deputy Director, Division of Mining Land and Water, Department of Natural Resources, anchorage, stated that he had not seen that note and was not able to respond. The sponsor and the Department had reached agreement on the previous note. Co- Chair Harris clarified it would be $2 million dollars for the next five years. Mr. Dieringer advised that the differences between the two fiscal notes, one dated 3/26/04 and the other dated 3/30/04, was clerical category changes. He observed that there were no changes to the numbers only the format. Co-Chair Williams stated that he would hold the bill in Committee so that the Department could address the fiscal concern. Representative Fate interjected that his office had gone over the notes with the Department and understood that they had come to an agreement. Co-Chair Harris commented that the fiscal note adds another $355 thousand dollars to the FY05Department of Natural Resources, Land Sales. It is also proposed that the Department have an additional $481 thousand dollars for FY06. He understood the funding during the out years would come from program receipts and/or sale of lands. He believed that passage of the bill, would generated an additional $355 thousand dollars, which would be added to the Department of Natural Resources budget. Mr. Dieringer stated that was correct. When implementing any type of real estate program, there is a lag period between the selection, best interest findings time, the appraisals and the surveys. When working with the Department, it will take about two years. The sponsor agreed that between 18 to 24 months would be reasonable. There would be no sales revenues until th up to the 18 month. Present year, would require funding of $355 thousand dollars. Co-Chair Harris asked if the fiscal note proposed no funding for the FY05 budget. He thought that the Department would have to "eat" the $355 thousand dollars, needing monies to operate. Mr. Dieringer anticipated that there would be program receipts to cover costs. In this year's budget, the Division requested eight new positions and $400 thousand dollars to develop a land sales program. He did not know if that had been approved. He believed that there would be enough money this year to implement the program; then program receipts would come in by the third year to cover all the other costs. Co-Chair Williams requested that the fiscal note be discussed with the Department. Ms. Burleson-Baxter pointed out that version "W" will impact the Department's proposed note. Co-Chair Williams referenced the comparison document. (Copy on File). He asked if that had changed. Ms. Burleson- Baxter responded that it had changed from the side by side presented of version "V". Co-Chair Williams requested an amended version comparison. Ms. Burleson-Baxter offered to provide that information. HB 319 was HELD in Committee for further consideration.