HOUSE SPECIAL COMMITTEE MILITARY & VETERANS AFFAIRS February 24, 1993 5:00 p.m. MEMBERS PRESENT Rep. Eldon Mulder, Co-Chairman Rep. Richard Foster, Co-Chairman Rep. Pete Kott Rep. Mike Navarre Rep. Ed Willis MEMBERS ABSENT None COMMITTEE CALENDAR *HJR 18: Relating to establishment of a fishing community at Adak. MOVED FROM COMMITTEE *HB 59: "An Act making a special appropriation to the Department of Natural Resources for refunds to certain veterans who purchased state land and for reimbursement to the University of Alaska for the veterans' land discount applied to land transferred to the University of Alaska; and providing for an effective date." MOVED FROM COMMITTEE (* First public hearing.) WITNESS REGISTER REP. CARL MOSES Alaska State Legislature State Capitol Juneau, AK 99801-1182 465-4451 Position Statement: Prime Sponsor of HJR 18 HOWARD JOYCE, Aide Rep. Eldon Mulder Alaska State Legislature Juneau, AK 99801-1182 465-2647 Position Statement: Described HB 59 RON SWANSON, Director Division of Land Department of Natural Resources P.0. Box 107005 Anchorage, AK 99510 762-2692 Position Statement: Spoke on HB 59 PREVIOUS ACTION BILL: HJR 18 SHORT TITLE: ESTABLISH FISHING COMMUNITY AT ADAK BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MOSES TITLE: Relating to establishment of a fishing community at Adak. JRN-DATE JRN-PG ACTION 01/22/93 126 (H) READ THE FIRST TIME/REFERRAL(S) 01/22/93 126 (H) MIL & VET AFF, FISHERIES, STATE AFFAIRS 02/18/93 (H) MLV AT 10:00 AM CAPITOL 17 02/24/93 (H) MLV AT 05:00 PM CAPITOL 17 BILL: HB 59 SHORT TITLE: APPROP: VETS' LAND DISCOUNT REFUND BILL VERSION: SPONSOR(S): SPECIAL CMTE MILITARY & VETERANS AFFAIRS TITLE: "An Act making a special appropriation to the Department of Natural Resources for refunds to certain veterans who purchased state land and for reimbursement to the University of Alaska for the veterans' land discount applied to land transferred to the University of Alaska; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/15/93 72 (H) READ THE FIRST TIME/REFERRAL(S) 01/15/93 72 (H) MIL & VET AFF, STATE AFFAIRS, FINANCE 02/18/93 (H) MLV AT 10:00 AM CAPITOL 17 02/24/93 (H) MLV AT 05:00 PM CAPITOL 17 ACTION NARRATIVE TAPE 93-2, SIDE A Number 000 CHAIRMAN ELDON MULDER called the House Military and Veterans Affairs Committee to order at 5:06 p.m. Members present were Rep. Willis and Rep. Foster. HJR 18: ESTABLISH FISHING COMMUNITY AT ADAK Number 007 CHAIRMAN MULDER introduced HJR 18 and invited Rep. Moses to address the committee. Number 011 REP. CARL MOSES, SPONSOR OF HJR 18, gave brief a history of Adak and the advantages of Adak as a fishing community. He said the resolution asks the Department of Defense to release some of the naval reserve for commercial fishing. Number 026 CHAIRMAN MULDER asked if there were any questions. Number 027 REP. WILLIS asked, If the land is turned over, would there be any environmental problems? REP. MOSES replied that there could be the possibility of environmental problems in the future. (Rep. Kott arrived at 5:07 p.m.) Number 044 CHAIRMAN MULDER asked Rep. Moses what prompted the bill. REP. MOSES responded it was because the Navy is going to cut back in the region. Number 053 REP. FOSTER made a motion to move the resolution out of committee. No objections were heard, it was so ordered. 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.