Bill Summary – FastDemocracy

State of Alaska
                                                            Fiscal Note
                                                                                              Bill Version:                     HB 195
 2021 Legislative Session
                                                                                              Fiscal Note Number:               1
                                                                                              (H) Publish Date:                 4/28/2021
 Identifier:        LL0026-DNR-DMLW-4-27-21                                    Department:        Department of Natural Resources
 Title:             REMOTE RECREATIONAL SITES; SALES;                          Appropriation: Fire Suppression, Land & Water Resources
                    PERMITS                                                    Allocation:        Mining, Land & Water
 Sponsor:           RLS BY REQUEST OF THE GOVERNOR                             OMB Component Number:               3002
 Requester: Governor
 Expenditures/Revenues
 Note: Amounts do not include inflation unless otherwise noted below.                                                                 (Thousands of Dollars)
                                                 Included in
                                    FY2022       Governor's
                                Appropriation      FY2022                                            Out-Year Cost Estimates
                                  Requested       Request
 OPERATING EXPENDITURES               FY 2022        FY 2022       FY 2023                      FY 2024           FY 2025             FY 2026         FY 2027
 Personal Services                       531.9                        531.9                       531.9             531.9               531.9           531.9
 Travel
 Services                                 50.0                         50.0                         50.0                 50.0             50.0             50.0
 Commodities                              15.0                         15.0                         15.0                 15.0             15.0             15.0
 Capital Outlay
 Grants & Benefits
 Miscellaneous
 Total Operating                         596.9            0.0         596.9                        596.9             596.9              596.9             596.9
 Fund Source (Operating Only)
 1153 State Land (DGF)                         596.9                            596.9              596.9             596.9              596.9             596.9
 Total                                         596.9              0.0           596.9              596.9             596.9              596.9             596.9
 Positions
 Full-time                                        5.0                                 5.0             5.0                 5.0              5.0               5.0
 Part-time
 Temporary
 Change in Revenues
 1004 Gen Fund (UGF)                                                            750.0              750.0             750.0              750.0             750.0
 Total                                            0.0             0.0           750.0              750.0             750.0              750.0             750.0
 Estimated SUPPLEMENTAL (FY2021) cost:                                   0.0                (separate supplemental appropriation required)
 Estimated CAPITAL (FY2022) 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?                                 01/01/22
 Why this fiscal note differs from previous version/comments:
 Not applicable, initial version.
 Prepared By:             Marty Parsons, Director                                                                   Phone:          (907)269-8625
 Division:                Mining, Land and Water                                                                    Date:           04/26/2021 12:00 PM
 Approved By:             Cheri Lowenstein, Administrative Services Director                                        Date:           04/26/21
 Agency:                  Office of Management and Budget
Printed 4/28/2021                                                       Page 1 of 2                                                          Control Code: Vslcg
                                                                                                               HB 195 - Fiscal Note 1
                                                FISCAL NOTE ANALYSIS
STATE OF ALASKA                                                                BILL NO. LL0026-5
2021 LEGISLATIVE SESSION
Analysis
   This legislation allows Alaskans to lease or purchase 10 acres of vacant, unappropriated, or unreserved state land for
   recreational purposes. The Division of Mining, Land, and Water (DMLW) anticipates this program will be very popular in its
   current form with the addition of the ability to permit remote recreational cabin sites and the option to lease and
   purchase the site.
   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, water-frontage,
   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. Two positions will be located within Land Sales, one in the Survey Section, one within Resources
   Assessment and Development Section, and one within the Appraisal Unit.
   DMLW positions
   One Permanent Full-Time Land Surveyor I, range 21
   One Permanent Full-Time Natural Resource Manager I, range 18
   One Permanent Full-Time Natural Resource Specialist III, range 18
   One Permanent Full-Time Natural Resource Specialist II, range 16
   One Permanent Full-Time Appraiser II, range 16
(Revised 1/13/2021 OMB/LFD)                                                                                     Page 2 of 2
LL0026-DNR-DMLW-4-27-21                                       Page 2 of 2                                              Control Code: Vslcg
Statutes affected: 
HB0195A, AM HB 195, introduced 04/28/2021: 38.05.035, 38.05.180, 38.05.115, 38.05.082, 38.05.195, 38.05.205, 38.05.255, 38.05.850, 38.05.610, 38.05.620, 38.05.045, 38.05.069, 38.05.300, 38.05.321, 38.05.600, 38.05.690, 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, 29.65.130, 38.04.065