03/17/2009 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

HB 156-ALLOWING CERTAIN LANDFILL FEE WAIVERS                                                                                  
                                                                                                                              
9:27:44 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced that the  final order of business would                                                               
be  HOUSE  BILL NO.  156,  "An  Act  relating to  municipal  fees                                                               
charged  for  disposal of  waste  material  from the  substantial                                                               
rehabilitation, renovation,  demolition, removal,  or replacement                                                               
of a structure on deteriorated property."                                                                                       
                                                                                                                                
9:27:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BOB  LYNN, Alaska  State Legislature,  speaking as                                                               
the sponsor  of HB  161, explained  that the  legislation permits                                                               
municipalities to waive dumping  fees, tipping fees, for material                                                               
taken to  municipal landfills from deteriorated  properties.  The                                                               
aforementioned doesn't cost the  state anything.  Furthermore, it                                                               
can  make  it  economically feasible  to  renovate  deteriorating                                                               
properties.                                                                                                                     
                                                                                                                                
9:30:06 AM                                                                                                                    
                                                                                                                                
KATHRYN DODGE,  Economic Development Specialist,  Fairbanks North                                                               
Star Borough; Director,  Alaska Regional Development Organization                                                               
(ARDOR), said that she was  sure that each legislator could think                                                               
of a  deteriorated property  in their  community that  they would                                                               
desire to be redeveloped.  She  said she was equally certain that                                                               
legislators recognize the value  of renovating and rehabilitating                                                               
the deteriorated property.   Ms. Dodge pointed  out that adoption                                                               
of this  change requires assembly approval,  and therefore public                                                               
comment  will  be taken  on  the  value  of granting  waivers  to                                                               
deteriorated properties,  presumably for each  waiver considered.                                                               
Therefore, Ms. Dodge encouraged the committee to support HB 156.                                                                
                                                                                                                                
9:31:40 AM                                                                                                                    
                                                                                                                                
MARK MARLOW,  Principal, Marlow Corporation,  opined that  HB 156                                                               
would  provide  local governments  another  tool  with regard  to                                                               
economic development and urban renewal.   Every property eligible                                                               
would have to  go through a local public process  per AS 29.45 to                                                               
identify  and determine  which  properties  meet the  eligibility                                                               
requirements  to be  designated as  deteriorated.   He encouraged                                                               
the committee's favorable vote for HB 156.                                                                                      
                                                                                                                                
9:32:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON inquired as to why HB 156 is necessary.                                                                         
                                                                                                                                
MR.  MARLOW  related  his  understanding   that  without  HB  156                                                               
extending  the waiver  to a  property designated  as deteriorated                                                               
may  raise a  constitutional  challenge with  regard  to a  local                                                               
government's  ability  to  extend  the  benefit  to  address  the                                                               
mitigation of blight  based on an equal protection  clause.  This                                                               
legislation defines deteriorated property  as a class of property                                                               
rather than an individual project  and provides local governments                                                               
that own  a landfill the  authority to extend  the aforementioned                                                               
benefit  to  help with  economic  development  and mitigation  of                                                               
blight.                                                                                                                         
                                                                                                                                
9:34:39 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON   posed  an  example   in  which  there   was  a                                                               
deteriorated 1,200 square feet home,  and inquired as to how much                                                               
money that would be.                                                                                                            
                                                                                                                                
MR. MARLOW  pointed out that  a small  home of 1,200  square feet                                                               
wouldn't meet  the eligibility requirements  of AS 29.45.   To be                                                               
considered deteriorated  the building would  have to be  at least                                                               
an 8-plex,  at least 15 years  of age, or a  commercial property,                                                               
he recalled.   He explained that  the actual amount of  money [in                                                               
terms of  waived tipping fees]  would depend largely on  the size                                                               
of the property because tipping fees are a function of weight.                                                                  
                                                                                                                                
9:35:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN, in  closing, characterized  HB 156  as good                                                               
public  policy,  and  therefore   he  requested  the  committee's                                                               
favorable consideration.                                                                                                        
                                                                                                                                
9:35:54 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON, upon determining no  one else wished to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
9:36:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved to  report HB  156 out  of committee                                                               
with individual recommendations and  the accompanying zero fiscal                                                               
note.  There being no objection, it was so ordered.