02/23/1994 09:15 AM Senate FIN

  HB 73:    An Act relating  to state  and local taxation  and                 
            other state  regulation as affected by  the Alaska                 
            Native Claims  Settlement  Act,  as  amended,  and                 
            related  federal statutes;  and  providing for  an                 
            effective date.                                                    
                                                                               
            David  Harding,  aide  to Representative  Maclean,                 
            sponsor  of  HB 73,  testified  in support  of the                 
            bill.    Discussion  followed   between  Co-chairs                 
            Frank,   Pearce,   Senators   Jacko,  and   Rieger                 
            regarding concerns over  federal statutes.  HB  73                 
            was HELD in committee.                                             
                                                                               
  HOUSE BILL NO. 73:                                                           
                                                                               
                                                                               
       An  Act relating to state  and local taxation and other                 
       state  regulation  as  affected  by  the Alaska  Native                 
       Claims Settlement Act, as  amended, and related federal                 
       statutes; and providing for an effective date.                          
                                                                               
  Co-chair  Pearce  announced  that  HB   73  was  before  the                 
  committee.      She   invited   David   Harding,   aide   to                 
  Representative  Maclean,  sponsor  of  HB  73, to  join  the                 
  members at the table.                                                        
                                                                               
  DAVID HARDING  said HB 73  was simple and  straight forward.                 
  It  would bring state  law into compliance  with federal law                 
  regarding   the  exemption  of  certain  native  lands  from                 
  property  taxation.   Several  years  ago the  Alaska Native                 
  Lands Settlement Act  was amended  to continue an  exemption                 
  from federal, state or  local property taxes on  ANCSA lands                 
  until  development  would  occur  on  those  lands.   HB  73                 
  reflected  those  changes.   The  bill  also  included other                 
  technical changes  pointed out  by the  attorney.  The  bill                 
  would  not  expand  or reduce  any  benefits  or protections                 
  already mandated by federal law.  It simply cleaned up state                 
  law and insured that obsolete state  statutes do not lead to                 
  misinterpretation by assessors or others who might work with                 
  Alaska's tax law.   He said it passed the  House unanimously                 
  and carried a zero fiscal note.                                              
                                                                               
  In answer to Senator Jacko, Mr. Harding said that it did not                 
  pass two years ago.                                                          
                                                                               
  In answer  to  Co-chair Frank,  Mr. Harding  went into  more                 
  detail on the technical changes listed in the bill.                          
                                                                               
  Co-chair  Pearce  referenced   Mr.  Chenoweth's  memo  dated                 
  February  24,  1994.   Discussion  was had  by  Mr. Harding,                 
  Senator Rieger and Co-chair Frank regarding this memo.                       
                                                                               
  Co-chair Pearce  announced  that  HB 73  would  be  HELD  in                 
  committee so the members interested could further pursue the                 
  information in the memo by Mr. Chenoweth.