HB 319-REMOTE REC.CABIN SITE SALES/LOTTERY SALE CHAIR WEYHRAUCH announced that the next order of business was 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." 9:36 a.m. JIM POUND, Staff to Representative Hugh Fate, Alaska State Legislature, presented HB 319 on behalf of Representative Fate, sponsor. He told the committee that HB 319 is partly a result of the Alaska Constitution, Article VIII, Section 1, which read as follows: SECTION 1. Statement of Policy. It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest. MR. POUND noted that the State of Alaska has held on to approximately 90 acres. He said that HB 319 relates to the American dream of owning a piece of property. The land being held by the state is essentially nonproductive and is exempt from local taxation. He opined that that land is only an asset when it is passed on to the private sector. MR. POUND said this remote recreational cabin site bill is designed to make it easier for individuals to find a perfect location for a weekend escape, or a hunting or fishing trip, hopefully near their own homes. It means that local residents will be building structures in parts of the state where no one currently lives. MR. POUND noted that a trickle down effect would occur, because building materials, fuel, and remote transportation would be purchased. He also noted that organized boroughs would then be allowed to have property tax bases they currently do not have. Mr. Pound concluded by saying that owning land in Alaska is economic in basis, because land is forever - it is not something that has to do with a "boom or bust." 9:40 a.m. REPRESENTATIVE SEATON referred to page 3, line 5, which read as follows: Sales under this section may be at public or private  sale. REPRESENTATIVE SEATON said that he would like some explanation whether this language refers to private sales that only occur after [land] has gone out to a public sale and is a leftover parcel, or whether it could refer to sales that are not competitively available to all Alaskans. [Regarding the language] he added, "I'm hoping there'll be a little cleanup in there." MR. POUND offered his understanding that, under the current policy, a person can walk in after the open process is closed and say, "Okay, I want that little plot of land right there," and that can be negotiated privately, "without it going back out to public." REPRESENTATIVE SEATON recommended that the word "private" be clarified to mean a private sale after it has been offered for public sale. 9:44 a.m. REPRESENTATIVE GRUENBERG turned to [page 2, line 3] where "38.05.600" shows as new text added to HB 319. He offered his understanding that the State of Alaska retained the mineral rights to virtually everything. He asked, "Now on these remote parcel sales, do they pass the mineral rights away?" MR. POUND answered no. He indicated that [that portion of statute] was added [to the language in the bill] to clarify that there would not be a different set of rules. 9:46 a.m. CHAIR WEYHRAUCH asked Mr. Pound to explain his previous comment regarding land only being an asset when it's in the private sector. He remarked that the University [of Alaska] has land that is not in the private sector, which is certainly considered an asset. MR. POUND noted that the land that makes up the university and the railroad is exempt from local taxation; therefore, there is no tax base. He stated his belief in local taxation, and said that, regarding possession of an appraised value, one finds more of an appraisal in a private sector piece of property than in government owned [property]. [HB 319 was heard and held.]