CSHB 319(FIN) am-REC.CABIN SITES/LOTTERY SALE/RTS. RESERV  CHAIR SCOTT OGAN announced CSHB 319(FIN)am to be up for consideration. REPRESENTATIVE HUGH FATE, sponsor of HB 319, said he'd reviewed only some of the amendments. 4:10 - 4:12 - at ease MR. BOB LOEFFLER, Director, Division Mining, Land and Water, Department of Natural Resources (DNR), said he is very proud of the division's remote recreation program, which is continually being improved. The technical amendments are just workability sections so his goal can be accomplished. He informed the committee that surveys are currently taking his department roughly two years from the time a lease is initiated. Individual parcels usually take longer than the batches. The Mat-Su Borough has a 10-month backlog and the proposed legislation would probably put individuals to the end of that line; Fairbanks North Star Borough's situation is similar. This brings about his concern that this program might eliminate a portion of the department's current program to do surveys in the proposed 24 months. Secondly, he was concerned that an individual would go through the process and not be finished in the 24-month timeframe and the department would lose its authorization to convey the surveyed land to them. To protect individual Alaskans, he proposed Amendment 1 that says survey and appraisal shall be completed within 24 months of lease issuance unless an extension is deemed necessary by the commissioner. This directs him very clearly to accomplish the sponsor's intent, but doesn't penalize an individual if it can't be done. MR. LOEFFLER said that Amendment 2 prohibits the department from selling land with high mineral potential by standards adopted by the department in regulations (page 4, section (g). Requiring standards to be put into regulations would eliminate his FY05 sale. However, he can accomplish the sponsor's intent by adopting standards, but not putting them into regulations. MR. POUND refined the amendment saying he would delete only "in regulations". MR. LOEFFLER said that would be fine. The third technical amendment deletes subsection (g). He explained that at least two boroughs require either absolutely or approximately 10 acres as the minimum parcel size, but the bill sets 10 acres as the maximum parcel size. Given his experience with people going out on the ground and trying to figure out the area along curved streams and lakes, he didn't think most of them would get particularly close. It would be odd to send people out knowing they would be unsuccessful in the Mat-Su and Kodiak boroughs. He thought the sponsor's intent could be accomplished by the technical change. MR. POUND replied that it was acceptable. SENATOR WAGONER said he liked line 31 in section (g) that deals with lake and river frontage so one person couldn't go in and develop one-acre lots clear around a lake. MR. LOEFFLER agreed with him in general and said those requirements are typically in all his division's remote sales. He said the third part of (g) says parcels sold under this section are subject to 16 USC 31, the famous no more clause in ANILCA. While he is supportive of the clause, it binds Congress to not do certain things and it's an odd thing to have to put in everybody's patent. CHAIR OGAN summarized that there was agreement by the sponsor on all the technical changes except for Amendment 1. He went on to the policy amendment that would revise (f). MR. LOEFFLER explained that the policy problem he wanted to solve in (f) is that Alaska land needs to be open to all Alaskans. Just because one person nominates a particularly good parcel doesn't mean he is the only one who should be entitled to it as he is currently. However, it has been the department's experience that people don't bid when someone has nominated a parcel and has the right of first refusal. His solution has been to offer enough land so that there are enough choices. SENATOR WAGONER said he has been involved in a couple right of first refusal purchases and that people do bid competitively for them. MR. LOEFFLER responded that the department offers auctions for surveyed parcels without the right of first refusal, but auctions are spirited nevertheless. The publications for those parcels are much more elaborate than mere classifieds. HB 319 is an opportunity to stake land, but the department doesn't know exactly what is included in the offers because the land hasn't been surveyed yet. The problems are operational. SENATOR WAGONER said that a lot of people in Alaska will know better than other people immediately where the prime pieces of property are. I believe what the chairman of this committee said that we're going to create a mini land rush and the best parcels in those areas are going to be taken up by the people that know those areas best.... But I think it's our responsibility to make sure the state gets the largest amount of profit out of this land that we can.... CHAIR OGAN suggested adding "after a best interest finding" on line 3 of the policy amendment. MR. LOEFFLER said that a best interest finding is required for the department to sell all land, but it's not required on land that isn't being sold. 4:40 - 4:48 - at ease SENATOR DYSON arrived at 4:53. CHAIR OGAN said he would hold HB 319 for further work.