Legislature(2007 - 2008)BARNES 124

01/31/2008 08:00 AM House COMMUNITY & REGIONAL AFFAIRS


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08:06:05 AM Start
08:07:35 AM HB285
08:35:50 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 285 MUNI TAX EXEMPTION: COMBAT DEATHS TELECONFERENCED
Moved CSHB 285(CRA) Out of Committee
*+ HB 327 ALCOHOL: LOCAL OPTION/LICENSING/MINORS TELECONFERENCED
<Bill Hearing Postponed to 02/05/08>
HB 285-MUNI TAX EXEMPTION: COMBAT DEATHS                                                                                      
                                                                                                                                
8:07:35 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH announced  that the  only order  of business                                                               
would be  HOUSE BILL  NO. 285,  "An Act  relating to  an optional                                                               
exemption from municipal property  taxes for residences of widows                                                               
and  widowers of  certain  members  of the  armed  forces of  the                                                               
United States;  and providing that this  Act may be known  as the                                                               
Sergeant Irving Hernandez, Jr., Act."                                                                                           
                                                                                                                                
8:07:52 AM                                                                                                                    
                                                                                                                                
KAREN LIDSTER,  Staff, Representative John Coghill,  Alaska State                                                               
Legislature,  presented   HB  285  on  behalf   of  the  sponsor,                                                               
Representative  Coghill.     She  explained  that  Representative                                                               
Coghill was approached by the  Fairbanks North Star Borough after                                                               
it was  approached by Sergeant  Hernandez's widow  who questioned                                                               
what  options  [for financial  relief]  are  available for  those                                                               
widows/widowers  whose injured  spouse  died after  serving in  a                                                               
combat situation.   This legislation  allows the  municipality to                                                               
adopt  an  ordinance  allowing  this  proposed  exemption.    The                                                               
specifics of the  ordinance, such as the  qualifying criteria and                                                               
application  procedure,  would be  left  to  the municipality  to                                                               
determine.                                                                                                                      
                                                                                                                                
8:10:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM  opined that  the concept behind  HB 285                                                               
is great.   She then asked if the sponsor  wants the property tax                                                               
exemption   to  stay   in   place  for   the   lifetime  of   the                                                               
widow/widower.  She also asked  if the sponsor would consider the                                                               
legislation not being named after  a specific individual in order                                                               
to acknowledge the many who have fallen.                                                                                        
                                                                                                                                
MS. LIDSTER  related that  the intention of  the sponsor  is that                                                               
the specifics,  such as  eligibility criteria  and the  length of                                                               
the  exemption, would  be determined  by the  municipality.   The                                                               
request  for   the  naming  the  legislation   came  through  the                                                               
conversations with  the Fairbanks  North Star Borough.   However,                                                               
Ms. Lidster  said that the sponsor  is likely open to  not naming                                                               
the legislation  after a specific  individual as many  have given                                                               
their life for this country.                                                                                                    
                                                                                                                                
8:13:31 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN, referring to page  1, line 13, related his                                                               
understanding   that  this   legislation  would   only  cover   a                                                               
widow/widower whose spouse dies within 90 days of the injury.                                                                   
                                                                                                                                
MS. LIDSTER  characterized the  90 days  as a  somewhat arbitrary                                                               
number that  attempts to achieve  balance in  determining whether                                                               
the death is related to the injury on the battle field.                                                                         
                                                                                                                                
8:14:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  remarked that  he would like  to eliminate                                                               
the 90-day stipulation because of  the possibility of death later                                                               
that could be  traced to the injury incurred during  service.  He                                                               
opined that  if the cause of  death can be traced  to the injury,                                                               
the widow/widower should be covered.                                                                                            
                                                                                                                                
8:16:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM  moved to  adopt HB  285 as  the working                                                               
document.  There being no objection, it was so ordered.                                                                         
                                                                                                                                
CO-CHAIR FAIRCLOUGH opened the public hearing.                                                                                  
                                                                                                                                
8:16:50 AM                                                                                                                    
                                                                                                                                
JENNIFER YUHAS, Special Assistant,  Mayor Jim Whitaker, Fairbanks                                                               
North   Star  Borough,   began  by   thanking  the   sponsor  for                                                               
introduction  of HB  285 as  the concept  was requested  by Mayor                                                               
Whitaker after meeting  with Susan Hernandez.   Mr. Yuhas related                                                               
that  [the Fairbanks  North  Star Borough]  would  like to  honor                                                               
those who have  served this country.  She  reminded the committee                                                               
that the  legislation leaves  the specifics  of the  ordinance to                                                               
the municipalities,  and therefore the municipality  could decide                                                               
to terminate the exemption after the widow/widower remarries.                                                                   
                                                                                                                                
8:17:34 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN commended the  Fairbanks North Star Borough                                                               
for suggesting  this legislation,  which would  ultimately result                                                               
in one of its residents paying less taxes.                                                                                      
                                                                                                                                
8:18:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON expressed concern  with regard to the open-                                                               
ended ability  of the municipality  with regard to  the specifics                                                               
of  the   ordinance.    He   also  expressed  concern   with  the                                                               
legislation  specifying that  the exemption  would only  apply if                                                               
the  death due  to  the injury  occurred within  90  days of  the                                                               
injury.   The  injured individual  could have  extensive injuries                                                               
that linger  for a year or  more [before dying].   He opined that                                                               
the  determination of  whether the  death was  the result  of the                                                               
injury  sustained   while  serving  on  active   duty  should  be                                                               
determined by a  physician rather than being a  matter of whether                                                               
the death occurred 90 days after the injury.                                                                                    
                                                                                                                                
8:19:41 AM                                                                                                                    
                                                                                                                                
MS. YUHAS remarked  that the request to name the  proposed law on                                                               
behalf  of  Sergeant  Hernandez,  Jr., wasn't  meant  to  exclude                                                               
others  who have  lost their  lives  serving the  country.   With                                                               
regard  to  the  90-day  stipulation,   Ms.  Yuhas  informed  the                                                               
committee that there  is already a military definition  as to who                                                               
qualifies as  having died  in combat.   Therefore,  she suggested                                                               
that perhaps that definition should be utilized.                                                                                
                                                                                                                                
8:20:29 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  asked if the Fairbanks  North Star Borough                                                               
already has manner in which  it recognizes military personnel who                                                               
have been injured or killed in the line of duty.                                                                                
                                                                                                                                
MR.  YUHAS  responded  that  there  are  several  ways  in  which                                                               
communities can  honor military personnel.   She  reiterated that                                                               
Mayor Whitaker  had requested  that the  name on  the legislation                                                               
because of his conversation with Susan Hernandez.                                                                               
                                                                                                                                
8:22:09 AM                                                                                                                    
                                                                                                                                
STEVE  VAN SANT,  State Assessor,  Anchorage Office,  Division of                                                               
Community   and  Regional   Affairs,   Department  of   Commerce,                                                               
Community, &  Economic Development,  informed the  committee that                                                               
currently  statute  includes  the  disabled  veterans  exemption,                                                               
which is  also available to  widows/widowers.   After discussions                                                               
with the attorney general's office,  Mr. Van Sant relayed that as                                                               
soon  as  the widow/widower  remarries,  the  exemption would  be                                                               
removed.    Therefore,  passage  of  HB  285,  which  allows  the                                                               
municipality  the  ability  to   specify  whether  the  remarried                                                               
widow/widower  would continue  to  receive  the exemption,  could                                                               
create a two-tier situation.                                                                                                    
                                                                                                                                
8:23:20 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH asked  if the language in HB  285 creates the                                                               
two-tier situation or  should language be added to  revert to the                                                               
"umbrella provision."                                                                                                           
                                                                                                                                
MR. VAN  SANT related his  understanding that under  the existing                                                               
language  of HB  285 the  exemption would  be removed  unless the                                                               
municipal ordinance specifies otherwise.                                                                                        
                                                                                                                                
8:24:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked  if the language on page  1, line 14,                                                               
through  page 2,  lines  1-2, addresses  Mr.  Van Sant's  concern                                                               
because the language leaves the  requirements and eligibility for                                                               
the exemption to the municipalities.                                                                                            
                                                                                                                                
MR.  VAN  SANT  reiterated  that under  existing  state  law  the                                                               
exemption  would  be  removed  at  the  point  the  widow/widower                                                               
remarried.   If  the  intent is  otherwise,  the language  should                                                               
specify,  he  opined.   He  related  his understanding  that  the                                                               
aforementioned language  allows the  municipality to  continue or                                                               
discontinue the exemption once a widow/widower remarries.                                                                       
                                                                                                                                
8:27:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH,  upon determining  no  one  else wished  to                                                               
testify, closed the public testimony.                                                                                           
                                                                                                                                
8:27:19 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   DAHLSTROM  moved   that   the  committee   adopt                                                               
Conceptual Amendment 1, as follows:                                                                                             
                                                                                                                                
     Page 1, line 3, following "States":                                                                                        
       Delete "; and providing that this Act may be known                                                                       
     as the Sergeant Irving Hernandez, Jr., Act"                                                                                
                                                                                                                                
          Delete line 7                                                                                                         
                                                                                                                                
     Renumber accordingly.                                                                                                      
                                                                                                                                
     Page 1, lines 12-13:                                                                                                       
        Delete "who, within 90 days after receiving the                                                                         
     injury,"                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN objected for  discussion purposes.  He then                                                               
inquired as to the sponsor's thoughts on Conceptual Amendment 1.                                                                
                                                                                                                                
8:28:38 AM                                                                                                                    
                                                                                                                                
MS. LIDSTER said  that she didn't believe that  the sponsor would                                                               
find removal  of the  name of  Sergeant Hernandez  problematic as                                                               
the borough can  find a way to  honor him.  She  related that the                                                               
sponsor wouldn't have  a problem with the elimination  of the 90-                                                               
day stipulation because the medical  professionals would have the                                                               
knowledge as to whether the injury was the cause of death.                                                                      
                                                                                                                                
8:30:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN removed his objection.                                                                                    
                                                                                                                                
CO-CHAIR  FAIRCLOUGH related  her  understanding  from Ms.  Yuhas                                                               
that not  naming the legislation  after Sergeant  Hernandez isn't                                                               
problematic.                                                                                                                    
                                                                                                                                
There  being no  further  objection, Conceptual  Amendment 1  was                                                               
adopted.                                                                                                                        
                                                                                                                                
8:30:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  characterized HB  285 as  good legislation                                                               
that was made better by the adopted amendment.                                                                                  
                                                                                                                                
8:31:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR FAIRCLOUGH  related her understanding from  Mr. Van Sant                                                               
that unless a municipality specifies  otherwise in its ordinance,                                                               
the state  rules would  be in place  and the  widow/widower won't                                                               
receive the exemption once the widow/widower remarries.                                                                         
                                                                                                                                
8:31:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA related her  experience with remarrying and                                                               
speculated  that many,  particularly seniors,  are merely  living                                                               
together  in order  to avoid  losing the  benefits of  their dead                                                               
spouse.    She  characterized  the [removal  of  exemptions  upon                                                               
remarriage]  as a  disincentive to  marriage.   Although in  this                                                               
case the legislation is a good  idea, this matter will need to be                                                               
addressed at some point, she said.                                                                                              
                                                                                                                                
8:33:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  related that he  would rather leave  it up                                                               
to the municipality to determine the specifics of the ordinance.                                                                
                                                                                                                                
8:35:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN moved to report  HB 285, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  285(CRA)  was                                                               
reported from  the House Community and  Regional Affairs Standing                                                               
Committee.                                                                                                                      

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