HB 59:  APPROP: VETS' LAND DISCOUNT REFUND                                   
                                                                               
  CHAIRMAN MULDER introduced HB 59, which was sponsored by                     
  committee.  He stated this bill was introduced last year but                 
  failed to pass.                                                              
                                                                               
  Number 070                                                                   
                                                                               
  HOWARD JOYCE, AIDE TO REP. MULDER, described the history of                  
  HB 59.  He stated that in 1978, Alaska passed a land                         
  discount program whereby a resident of Alaska could purchase                 
  state land for residential use and receive 5 percent                         
  discount for every year that an individual was a resident of                 
  the state.  He said this discount was extended to veterans.                  
  He stated that in 1979, they increased the discount for                      
  veterans to 75 percent or $37,500, or whichever was the                      
  lowest.  Mr. Joyce noted that the previous figures were 50                   
  percent or $25,000.                                                          
                                                                               
  MR. JOYCE stated that the program ran fine until 1983, when                  
  Gilman vs. Martin came before the Alaska Supreme Court, and                  
  was ruled unconstitutional.  The Department of Law                           
  recommended to the Department of Natural Resources that they                 
  stop the program.  The program was stopped in April 1, 1983.                 
  The  13th Legislature granted the veterans a flat 25 percent                 
  discount on land purchased.  The program went into effect                    
  July 6, 1984.  The problem was between April 1, 1983, to                     
  July 6, 1984, when veterans did not receive a discount.                      
                                                                               
  MR. JOYCE stated legislation was introduced in the 17th                      
  Legislature to make the 25 percent discount retroactive from                 
  April 1, 1983.  He stated that similar legislation failed                    
  last year after passing in the House, but failed during the                  
  last hours of session in the Senate Rules Committee.                         
                                                                               
  Number 130                                                                   
                                                                               
  REP. FOSTER asked about the fiscal note and the $75,000 cost                 
  of the program.                                                              
                                                                               
  Number 132                                                                   
                                                                               
  CHAIRMAN MULDER stated that there was no impact to the                       
  Department of Natural Resources and they can implement it                    
  from their general fund without additional cost.  He stated                  
  that it will cost the state close to $75,000 to refund the                   
  participants and the University of Alaska.                                   
                                                                               
  Number 136                                                                   
  REP. FOSTER asked if that payment was part of HJR 18.                        
                                                                               
  Number 137                                                                   
                                                                               
  CHAIRMAN MULDER stated that the payment was a part of the                    
  bill.  He said there should be a fiscal note with the bill                   
  for $74,600.                                                                 
                                                                               
  Number 138                                                                   
                                                                               
  MR. JOYCE stated that veterans who bought land during that                   
  time would receive their discount when HB 59 is enacted.                     
                                                                               
  Number 146                                                                   
                                                                               
  RON SWANSON, DIRECTOR, DIVISION OF LAND, DEPARTMENT OF                       
  NATURAL RESOURCES, said that during a one year period his                    
  department received 42 applicants, and out of those 36 were                  
  granted.  He stated that nine of those 36 were University of                 
  Alaska contracts.  He stated that the department has                         
  implemented the program that the legislature passed, but                     
  they do not have the appropriation needed to pay the                         
  applicants.                                                                  
                                                                               
  MR. JOYCE commented that he wanted to make some technical                    
  changes to the bill:  on line 9, change the word "qualify"                   
  to "qualified"; and on line 10, eliminate the word "may" and                 
  change the word "apply" to applied.                                          
                                                                               
  Number 171                                                                   
                                                                               
  REP. FOSTER made a motion to adopt the technical amendments                  
  stated by Mr. Swanson.                                                       
                                                                               
  Number 173                                                                   
                                                                               
  CHAIRMAN MULDER asked for any objections.  There were no                     
  objections.  The amendments were so ordered and adopted.                     
                                                                               
  Number 174                                                                   
                                                                               
  REP. WILLIS made a motion to move HJR 18 out of committee                    
  with individual recommendation.                                              
                                                                               
  CHAIRMAN MULDER so ordered the bill out of committee without                 
  any objections.                                                              
                                                                               
  (Chairman Mulder stated for the record that Rep. Navarre                     
  arrived at 5:17 p.m.)                                                        
                                                                               
  CHAIRMAN MULDER adjourned the meeting at 5:19 p.m.