State of Alaska
Fiscal Note
Bill Version: CSSSHB 3(FIN)
2019 Legislative Session
Fiscal Note Number: 4
(H) Publish Date: 5/9/2019
Identifier: HB00CS3SS-DNR-DMLW-05-07-19 Department: Department of Natural Resources
Title: STATE LAND SALE; PFD VOUCHER AND Appropriation: Fire Suppression, Land & Water Resources
ASSIGN. Allocation: Mining, Land & Water
Sponsor: RAUSCHER OMB Component Number: 3002
Requester: House Resources
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2020 Governor's
Appropriation FY2020 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2020 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Personal Services
Capital Outlay
Grants & Benefits
Total Operating 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Fund Source (Operating Only)
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in Revenues
1153 State Land (DGF) (21.4) (21.4) (21.4) (21.4) (21.4) (21.4)
Total (21.4) 0.0 (21.4) (21.4) (21.4) (21.4) (21.4)
Estimated SUPPLEMENTAL (FY2019) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2020) 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)
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed?
Why this fiscal note differs from previous version/comments:
The fiscal note is revised to reflect changes made to the bill in the House Finance Committee, and clarifies the impact on revenue of
increasing the current 25 percent veterans' discount on land sales to a one-third discount.
Prepared By: Marty Parsons, Director Phone: (907)269-8625
Division: Mining, Land & Water Date: 05/07/2019 05:00 PM
Approved By: Fabienne Peter-Contesse, Administrative Services Director Date:
Agency: Office of Management and Budget REPORTED
Printed 5/9/2019 Page 1 of 2 HFC 05/09/2 019
Control Code: zwKTz
CSSSHB 3(FIN) - Fiscal Note 4
Currently, under AS 38.05.940(a), an eligible veteran is entitled to receive a once-in-a-lifetime 25 percent discount on the
purchase price of state land that is classified for other than commercial or industrial use. This legislation revises raises it
to a one-third discount.
On average, DNR sells 84 parcels of state land per year, at an average price of $18.3. DNR receives an annual average of
$1,537.2 revenue from the sale of state land, which is deposited into the Land Disposal Income Fund (LDIF) for future land
sale development.
Veterans have used the 25 percent discount to purchase an average of 14 parcels of state land a year, based on 19 years
of tracking use of this discount. DNR assumes the application rate for purchase of land using the larger veteran's discount
will be approximately the same. Veterans who have previously used the 25 percent discount would not be eligible for the
one-third discount.
The existing veteran's discount currently reduces DNR's LDIF revenue by:
14 parcels per year
x $18.3 average value of land sold per year
x 1/4 discount per parcel sold
$64.00 existing loss of LDIF revenue per year
The increased veteran's discount will reduce DNR's LDIF revenue by:
14 parcels per year
x $18.3 average value of land sold per year
x 1/3 discount per parcel sold
$85.4 forecasted loss of LDIF revenue per year
DNR estimates that adopting the larger veteran's discount would result in a net increased loss of LDIF revenue of $21.4
per year:
($85.4 increased loss of LDIF revenue per year - $64.00 existing loss of LDIF revenue per year =
$21.4 net increased loss of LDIF revenue per year)
(Revised 9/05/18 OMB/LFD) Page 2 of 2
HB00CS3SS-DNR-DMLW-05-07-19 Page 2 of 2 Control Code: zwKTz

Statutes affected:
HB0003A, AM HB 3, introduced 02/20/2019: 38.05.940, 38.05.005, 38.05.270, 43.23.061, 43.23.200, 43.23.210, 38.05.045, 38.05.069
HB0003B, AM SSHB 3, introduced 03/13/2019: 38.05.940, 38.05.005, 38.05.270, 43.23.061, 43.23.200, 43.23.210, 38.05.045, 38.05.069, 38.05.600
HB0003C, AM CSSSHB 3(RES), introduced 04/15/2019: 38.05.940, 38.05.005, 38.05.270, 43.23.200, 43.23.210, 38.05.045, 38.05.069, 38.05.600, 43.23.140, 43.23.160, 43.23.180, 43.23.061
HB0003D, AM CSSSHB 3(FIN), introduced 05/09/2019: 38.05.940, 38.05.005, 38.05.270