03/26/2013 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

        SB  73-PROPERTY TAX EXEMPTION/MILITARY WIDOW(ER)                                                                    
                                                                                                                                
3:33:37 PM                                                                                                                    
CHAIR MICCICHE announced SB 73 to be up for consideration.                                                                      
                                                                                                                                
3:33:53 PM                                                                                                                    
SENATOR  GIESSEL  moved  to  adopt   CSSB  73(CRA),  version  28-                                                               
LS0631\U, as the working document.  There were no objections, and                                                               
it was so ordered.                                                                                                              
                                                                                                                                
3:34:24 PM                                                                                                                    
EDRA MORLEDGE, staff to Senator  Meyer, Alaska State Legislature,                                                               
provided an  overview of version  U. She explained that  the bill                                                               
evolved because a  constituent, Theresa Dayton, who  lost her own                                                               
husband in the  U.S. military service, worked very  hard with the                                                               
Municipality of Anchorage  to pass an ordinance  that would allow                                                               
for the  exemption on  the first  $150,000 of  municipal property                                                               
taxes for a primary residence  belonging to U.S. military service                                                               
members' surviving spouses. That  was Proposition 7, which passed                                                               
with overwhelming support  last April. However, a  caveat to that                                                               
ordinance was  that it  can't take  effect until  the legislature                                                               
amends AS 29.45.030(e).  SB 73 attempts to amend  that statute so                                                               
that  the   ordinance  can   take  effect   and  so   that  other                                                               
municipalities can choose  to do the same with the  will of their                                                               
voters.                                                                                                                         
                                                                                                                                
She said this measure is intended  to support the families of our                                                               
service members  who died  while serving  their country  and help                                                               
them  stay in  the State  of Alaska  where they  have established                                                               
their lives and where their surviving families choose to stay.                                                                  
                                                                                                                                
3:36:15 PM                                                                                                                    
MS. MORLEDGE said the CS removes the  limit of 60 years of age or                                                               
older,   which  was   language   mistakenly   added  from   other                                                               
legislation. They  did not intend to  put the limit in  the bill,                                                               
because  it  is  aimed  at younger  families  who  are  generally                                                               
serving and giving their lives.                                                                                                 
                                                                                                                                
Second, since the  bill was originally introduced  there was some                                                               
question  as to  what  "dying in  the  line of  duty  or while  a                                                               
service  member"  meant.  So, they  used  language  from  another                                                               
section to tighten it up.                                                                                                       
                                                                                                                                
Finally, Ms. Morledge said, while  it is assumed that people know                                                               
what a widow  or widower is, clarifying language  that is already                                                               
in the municipalities' ordinance was added.                                                                                     
                                                                                                                                
3:37:44 PM                                                                                                                    
CHAIR MICCICHE  noted this  bill has the  "may" language  that is                                                               
imperative to municipalities.                                                                                                   
                                                                                                                                
SENATOR EGAN  remarked that meant  it is not an  unfunded mandate                                                               
like they have now.                                                                                                             
                                                                                                                                
CHAIR MICCICHE said that was right.                                                                                             
                                                                                                                                
MS. MORLEDGE  pointed out that  specific language was on  page 1,                                                               
lines 10-13.                                                                                                                    
                                                                                                                                
3:38:59 PM                                                                                                                    
SENATOR EGAN said  that is why it's a zero  fiscal note - because                                                               
it's not costing  the state treasury anything, but  it could cost                                                               
the municipality.                                                                                                               
                                                                                                                                
MS. MORLEDGE responded that was correct.                                                                                        
                                                                                                                                
SENATOR HOFFMAN  said they removed  the 60-year  requirement, but                                                               
line 12 says: "to a widow or  widower under age 60" and he wanted                                                               
to know  if that meant  when they reach the  age of 60  they will                                                               
have to pay the tax.                                                                                                            
                                                                                                                                
MS.  MORLEDGE answered  that is  already  existing language  that                                                               
applies in  section (2) which  is found earlier in  the paragraph                                                               
and  applies to  a widow  or widower  of a  disabled veteran.  It                                                               
doesn't include their folks.                                                                                                    
                                                                                                                                
CHAIR  MICCICHE  noted  that  this   measure  exempts  widows  or                                                               
widowers of any age if the  municipality chooses to do so through                                                               
a popular vote.                                                                                                                 
                                                                                                                                
CHAIR MICCICHE opened public testimony.                                                                                         
                                                                                                                                
3:41:28 PM                                                                                                                    
JEFFREY  MITTMAN, Executive  Director,  American Civil  Liberties                                                               
Union  (ACLU)  of  Alaska,  said their  written  comment  on  the                                                               
original bill  applies to the CS  as well. Briefly, he  wanted to                                                               
draw the  committee's attention  to a  2007 Alaska  Supreme Court                                                               
decision,  ACLU  v. State  of  Alaska,  which ruled  because  the                                                               
Alaska Constitution forbids same  sex couples from being married,                                                               
there is  no way for  same sex  couples to obtain  benefits which                                                               
the state  chooses to provide  to spouses. So, the  Supreme Court                                                               
analyzed  this  differential  treatment  and  said  not  on  just                                                               
heightened  or even  intermediate  scrutiny, but  under the  most                                                               
basic   level    of   constitutional    review,   that    it   is                                                               
unconstitutional  to  treat  same sex  couples  differently  than                                                               
opposite  sex couples.  This was  not an  opinion with  regard to                                                               
same sex marriage or discrimination  in employment or housing. It                                                               
was  simply  recognition  of the  mandate  to  treat  individuals                                                               
fairly and equally under the law.                                                                                               
                                                                                                                                
Under that ruling it is clearly  mandatory that when the State of                                                               
Alaska provides a benefit to  married couples they must make that                                                               
benefit available to same sex  couples as well. In recognition of                                                               
this  fact, Mr.  Mittman said,  a  Senate committee  in the  2006                                                               
legislature amended a similar piece  of legislation that provided                                                               
leave for veterans  and others. So, he asked that  in addition to                                                               
the  constitutional requirement  that mandates  a change,  to ask                                                               
the State  of Alaska  which has a  fine tradition  of recognizing                                                               
and  honoring  the  services  and   sacrifices  of  our  military                                                               
personnel,  to make  a  simple but  important  statement: if  you                                                               
fight  for  your country,  if  you're  willing  to die  for  your                                                               
country and protect the freedoms  and liberties we ascribe to and                                                               
believe in  as Americans, we  in the  State of Alaska  will honor                                                               
your  service.   Everyone can  agree  that a  service member  who                                                               
gives his or her life in  service to their country deserves to be                                                               
treated with dignity and respect.  He concluded by asking them to                                                               
include: this benefit is available  to same-sex domestic partners                                                               
as it is to married spouses.                                                                                                    
                                                                                                                                
3:45:29 PM                                                                                                                    
SENATOR  GIESSEL  moved  to  report  CSSB  73,  version  U,  from                                                               
committee  to  the next  committee  of  referral with  individual                                                               
recommendations  and attached  zero fiscal  notes. There  were no                                                               
objections, and it was so ordered.