Bill Summary – FastDemocracy

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
 Expenditures/Revenues
 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
 Travel
 Services
 Commodities
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                            0.0           0.0          0.0                          0.0              0.0               0.0              0.0
 Fund Source (Operating Only)
 None
 Total                                          0.0             0.0                 0.0             0.0              0.0               0.0              0.0
 Positions
 Full-time
 Part-time
 Temporary
 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)
 ASSOCIATED REGULATIONS
 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:
                                                                                                                           OUT OF
                                                                                                                                05/07/19
 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
                                                  FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                    BILL NO. CSSSHB 3(FIN)
2019 LEGISLATIVE SESSION
Analysis
   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