01/24/2000 01:10 PM House RES

HB  25-RIVER HABITAT PROTECTION TAX CREDIT                                                                                    
                                                                                                                                
CO-CHAIR MASEK  announced that the  next order of  business before                                                              
the committee  would be HOUSE BILL  NO. 25, "An Act relating  to a                                                              
municipal river habitat protection tax credit."                                                                                 
                                                                                                                                
Number 1303                                                                                                                     
                                                                                                                                
REPRESENTATIVE JOHN  DAVIES, Alaska State Legislature,  sponsor of                                                              
HB 25,  informed the committee  that HB 25  is a simple bill.   He                                                              
explained  that currently  there is  a provision  in statute  that                                                              
offers  a tax credit  to property  owners along  the Kenai  River.                                                              
This  legislation,  HB  25,  merely   extends  that  provision  to                                                              
municipalities along other rivers.   He emphasized that this is an                                                              
opportunity, not a  mandate.  He mentioned that HB  25 was brought                                                              
forward due to requests from his community.                                                                                     
                                                                                                                                
CO-CHAIR  MASEK asked  if Representative  Davies  had spoken  with                                                              
local  governments regarding  this  issue.   She  asked how  local                                                              
governments view  this in the environment of  decreasing municipal                                                              
revenue-sharing.   She  also  asked what  type  of initiative  the                                                              
municipalities would be interested in.                                                                                          
                                                                                                                                
REPRESENTATIVE  DAVIES  answered  that he  was  not aware  of  any                                                              
initiative,  although   there  has  been  some   discussion  since                                                              
introduction of  the bill.  He  informed the committee  that there                                                              
is a lot  of interest in his  area with regard to  the development                                                              
of the Chena River  and the Tanana River.  There  is some interest                                                              
to provide the opportunity for the  private sector to perform some                                                              
work and receive  credit for that work.  He feels  that this issue                                                              
is   relatively  small.     Furthermore,   this  is   up  to   the                                                              
municipalities.                                                                                                                 
                                                                                                                                
CO-CHAIR MASEK voiced  her understanding that this  program on the                                                              
Kenai River has been successful.                                                                                                
                                                                                                                                
REPRESENTATIVE DAVIES  agreed and noted that he had  been in touch                                                              
with some  of the Kenai Assembly  members and other folks,  all of                                                              
whom were in favor of [the opportunity].   Therefore, he expressed                                                              
the need to open that opportunity to the rest of the state.                                                                     
                                                                                                                                
Number 1000                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HARRIS  asked  what  effect  the  municipal  river                                                              
habitat  protection tax  credit  has had  on  the Kenai  Peninsula                                                              
Borough.   Would the  tax credit  provide an  incentive for  other                                                              
areas such as Fairbanks?                                                                                                        
                                                                                                                                
REPRESENTATIVE  DAVIES noted  that some  people in  his area  have                                                              
reviewed  this and  have expressed  interest.   Therefore, he  had                                                              
introduced HB  25.   After talking to  some elected officials  and                                                              
some [Department  of] Fish and Game  folks, he had  the impression                                                              
that  there  are  a  few  projects  which,  without  this  habitat                                                              
protection tax credit, would not  have proceeded.  This has been a                                                              
good marriage between private enterprise and the municipality.                                                                  
                                                                                                                                
Number 0906                                                                                                                     
                                                                                                                                
REPRESENTATIVE  COWDERY  mentioned that  a few  years  ago he  had                                                              
property on the  Kenai, which had erosion problems.   The problems                                                              
that  he encountered  were with  the  Department of  Environmental                                                              
Conservation,  the state government,  and the federal  government,                                                              
not the local government.  He asked:  Is that still the case?                                                                   
                                                                                                                                
REPRESENTATIVE DAVIES reiterated  that HB 25 is a simple bill.  It                                                              
is not primarily  addressing erosion control per se.   The bill is                                                              
mainly  directed   at  the  habitat   protection  issue   and  the                                                              
prevention of erosion  caused by overuse from people.   The active                                                              
erosion  control that Representative  Cowdery  may be involved  in                                                              
probably would not fall under HB 25.                                                                                            
                                                                                                                                
REPRESENTATIVE BARNES commented that  she did not believe that the                                                              
tax credit program  had been a factor in stopping  the problems on                                                              
the  Kenai River.    She believes  that  the Kenai  River  Classic                                                              
raises much money and awareness,  which is used to address erosion                                                              
problems and enhance habitat.                                                                                                   
                                                                                                                                
REPRESENTATIVE  DAVIES agreed that  the Kenai  River Classic  is a                                                              
major piece.   However, HB 25 is  a small way in which  to further                                                              
encourage [habitat protection].                                                                                                 
                                                                                                                                
REPRESENTATIVE  WHITAKER  noted   that  he,  too,  represents  the                                                              
Fairbanks  community.     He  said  everyone  should   review  the                                                              
opportunity to develop  a river.  He agreed that HB  25 is a small                                                              
piece of the puzzle.  He said he  is in support of HB 25, which he                                                              
hopes the chair will consider moving [out of committee].                                                                        
                                                                                                                                
Number 0455                                                                                                                     
                                                                                                                                
REPRESENTATIVE  BARNES  made  a  motion  to  move  HB  25  out  of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
zero fiscal note.  There being no  objection, HB 25 was moved from                                                              
the House Resources Standing Committee.                                                                                         
                                                                                                                                
CO-CHAIR MASEK noted that there were  witnesses on teleconference.                                                              
She conveyed  her understanding  that their  testimony would  have                                                              
been positive.                                                                                                                  
                                                                                                                                
CO-CHAIR  HUDSON  recommended  that   those  witnesses  fax  their                                                              
testimony so  that it could  be forwarded  along with the  bill to                                                              
the next committee of referral. [HB  25 was moved from committee.]