Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                              Bill Version:                     HB 281
 2024 Legislative Session
                                                                                              Fiscal Note Number:               1
                                                                                              (H) Publish Date:                 1/22/2024
 Identifier:        0026-DNR-DMLW-01-11-2024                                   Department:        Department of Natural Resources
 Title:             STATE LAND FOR REMOTE REC CABIN SITES                      Appropriation: Fire Suppression, Land & Water Resources
 Sponsor:           RLS BY REQUEST OF THE GOVERNOR                             Allocation:        Mining, Land & Water
 Requester: Governor                                                           OMB Component Number:               3002
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                 (Thousands of Dollars)
                                                 Included in
                                    FY2025       Governor's
                                Appropriation      FY2025                                            Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2025        FY 2025       FY 2026                      FY 2027           FY 2028             FY 2029         FY 2030
 Personal Services                       631.8                        631.8                       631.8             631.8               631.8           631.8
 Travel
 Services                                 75.0                         75.0                         75.0                 75.0             75.0             75.0
 Commodities                              25.0
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                         731.8            0.0         706.8                        706.8             706.8              706.8             706.8
 Fund Source (Operating Only)
 1004 Gen Fund (UGF)                           731.8                            706.8              706.8             706.8              706.8             706.8
 Total                                         731.8              0.0           706.8              706.8             706.8              706.8             706.8
 Positions
 Full-time                                       5.0                                  5.0             5.0                 5.0              5.0              5.0
 Part-time
 Temporary
 Change in Revenues
 None                                             ***                                 ***             ***                 ***              ***               ***
 Total                                            ***             0.0                 ***             ***                 ***              ***               ***
 Estimated SUPPLEMENTAL (FY2024) cost:                                   0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2025) cost:                                        0.0                (separate capital appropriation required)
 Does the bill create or modify a new fund or account?       No
 (Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
 ASSOCIATED REGULATIONS
 Does the bill direct, or will the bill result in, regulation changes adopted by your agency?                 Yes
 If yes, by what date are the regulations to be adopted, amended or repealed?                                 03/01/25
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:             Christy Colles, Director                                                                  Phone:          (907)269-8532
 Division:                Mining, Land, and Water                                                                   Date:           01/11/2024 04:09 PM
 Approved By:             Theresa Cross, Administrative Services Director                                           Date:           01/12/24
 Agency:                  Department of Natural Resources
Printed 1/22/2024                                                       Page 1 of 2                                                          Control Code: UqPql
                                                                                                                 HB 281 - Fiscal Note 1
                                                 FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                  BILL NO. LL0026
2024 LEGISLATIVE SESSION
Analysis
   This legislation allows Alaska residents to lease or purchase up to 10 acres of vacant state land for recreational purposes.
   The Division of Mining, Land, and Water (DMLW) anticipates the modified program will be very popular, with the ability to
   permit remote recreational cabin sites in addition to the option to lease and purchase the site available under the current
   program in AS 38.05.600.
   Regarding associated regulations: Under proposed AS 38.05.600(i), the commissioner may adopt regulations under AS
   44.62 necessary to implement the purposes of the newly reenacted .600. DMLW would aim to adopt regulations by March
   2025.
   The Division estimates approximately 50 parcels per offering that are successful in completion of sale annually; however,
   increased interest in the new program may increase participation. Remote parcel values vary substantially from
   approximately $650‐$10,000 per acre based on multiple factors such as location, amenities, size, access, waterfrontage,
   etc. Assuming 10 acres each (500 acres annually) at an average sale price of $1,500‐$5,000 per acre, the department
   estimates a yield of $750,000 to $2,500,000 of annual sales. Assuming increased participation and potential for nominated
   lands to have increased value per acre with an increased success to sale rate, revenue could be increased. This revenue is
   land value that could be received incrementally over time through sale contracts or through a lump sum payment.
   Estimating revenue from permitting remote recreational sites is difficult as the department does not have regulations
   developed for this program. This bill requires the department to develop regulations implementing statutes under AS
   38.05.630. Until such time as the regulations are developed any estimate of potential revenue related to permitting
   remote recreational sites is too speculative.
   DMLW assumes high interest in this program. To fully implement this program, DMLW anticipates a total of five positions
   will be needed.
   DMLW Costs:
   Personal Services $631.8
   One Permanent Full‐Time Land Surveyor 1, Range 21, Anchorage: $146.9
   One Permanent Full‐Time Natural Resource Manager 1, Range 18, Anchorage: $127.9
   Two Permanent Full‐Time Natural Resource Specialists 3, Range 18, Anchorage $123.5 each: $247.0
   One Permanent Full‐Time Natural Resource Specialist 2, Range 16, Anchorage: $110.0
   Note: If DMLW determines that the number of applications are outpacing current staff ability to adjudicate applications in
   a timely fashion, the Division will request additional positions necessary to meet the program demand.
   Services $75.0
   Core Costs by PCN ($15.0 each annually)
   Commodities $25.0
   Initial position setup ($5.0 each one time)
(Revised 10/31/2023 OMB/LFD)                                                                                       Page 2 of 2
0026-DNR-DMLW-01-11-2024                                       Page 2 of 2                                              Control Code: UqPql
Statutes affected: 
HB0281A, AM HB 281, introduced 01/22/2024: 38.05.035, 38.05.180, 38.05.115, 38.05.082, 38.05.195, 38.05.205, 38.05.255, 38.05.850, 38.05.600, 38.05.045, 38.05.069, 38.05.300, 38.05.321, 38.05.810, 38.05.870, 38.05.920, 38.05.945, 38.05.946, 38.05.065, 38.05.057, 38.05.078, 38.05.125, 38.05.120, 38.05.825, 38.50.050, 38.04.065, 38.05.073, 38.05.090