Legislature(2015 - 2016)SENATE FINANCE 532

03/29/2016 01:00 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 207 TEACHERS RETIRE. EMPLOYER CONTRIBUTIONS TELECONFERENCED
Heard & Held
*+ SB 208 ELIMINATE AK PERFORMANCE SCHOLARSHIP TELECONFERENCED
Heard & Held
*+ SB 209 PERS EMPLOYER CONTRIBUTIONS TELECONFERENCED
Heard & Held
*+ SB 210 COMM. REV. SHARING;PROP. TAX EXEMPTIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 210                                                                                                           
                                                                                                                                
     "An  Act  relating  to  the  community  revenue  sharing                                                                   
     program;  changing  the name  of the  community  revenue                                                                   
     sharing  program to  the  community assistance  program;                                                                   
     and  relating to  the municipal  property tax  exemption                                                                   
     on the  residence of a  senior, a disabled  veteran, and                                                                   
     a widow or widower of a senior or disabled veteran."                                                                       
                                                                                                                                
2:00:20 PM                                                                                                                    
                                                                                                                                
LAURA  CRAMER, STAFF,  SENATOR ANNA  MACKINNON, explained  SB
210:                                                                                                                            
                                                                                                                                
     With a $3.7  billion shortfall for Fiscal  Year 2016 and                                                                   
     a  projected shortfall  of  $4 billion  for Fiscal  Year                                                                   
     2017, the  legislature is  examining programs  that were                                                                   
     created  to  provide  assistance   to  communities  when                                                                   
     Alaska  was experiencing  surplus  revenues  due to  the                                                                   
     high  price of  oil. In  2008,  the legislature  created                                                                   
     the   Community    Revenue   Sharing    program,   which                                                                   
     distributes  funds to communities  to be spent  at their                                                                   
     discretion.  The  program   was  established  under  the                                                                   
     principle that  when oil revenues were high,  the wealth                                                                   
     would be shared with local communities.                                                                                    
                                                                                                                                
     Senate  Bill  210  proposes   changes  to  the  program,                                                                   
     allowing   for  communities   to  continue  to   receive                                                                   
     assistance,  while  establishing  a structure  to  phase                                                                   
     out the program as originally intended when created.                                                                       
                                                                                                                                
     Additionally,  the legislature  has heard concerns  from                                                                   
     communities   throughout   Alaska   about   the   burden                                                                   
     unfunded  mandates, enacted  by the legislature,  places                                                                   
     on  local governments.  At low oil  prices, the  burdens                                                                   
     on  communities  are  enhanced  and  even  limits  local                                                                   
     decision  making. Under SB  210, discretion  is returned                                                                   
     to the local  communities to enact certain  property tax                                                                   
     exemptions.  This would allow  communities to  structure                                                                   
     their tax exemptions  to serve their residents  and meet                                                                   
     the  needs  of the  communities  to the  maximum  extent                                                                   
     possible.                                                                                                                  
                                                                                                                                
     Senate Bill  210, helps  communities transition  to more                                                                   
     local  control, while continuing  to receive  assistance                                                                   
     from  the state  as they  become less  reliant on  state                                                                   
     resources to support local government.                                                                                     
                                                                                                                                
Co-Chair MacKinnon requested a sectional analysis.                                                                              
                                                                                                                                
Ms. Cramer discussed the Sectional Analysis (copy on file):                                                                     
                                                                                                                                
     Section  1:  Updates  AS   28.10.181(d)  reflecting  the                                                                   
     repeal of  AS 29.45.030(i)  and inserts reference  to AS                                                                   
     29.45.050(x)   where   the   definition   of   "disabled                                                                   
     veteran"   is  now   located   as  a   result  of   this                                                                   
     legislation                                                                                                                
                                                                                                                                
     Section  2: Updates the  program name change  "community                                                                   
     assistance" in AS 29.20.640(b)                                                                                             
                                                                                                                                
     Section  3: Updates the  program name change  "community                                                                   
     assistance" in AS 29.45.020                                                                                                
                                                                                                                                
     Section  4:  Updates  AS   29.46.030(h)  reflecting  the                                                                   
     repeal to 29.46.030(e) - (h) and (j)                                                                                       
     Section   5:   Moves   repealed    language   under   AS                                                                   
     29.45.030(k) to this section                                                                                               
                                                                                                                                
     Section  6:  Updates  AS   29.45.040(f)  reflecting  the                                                                   
     repeal of  AS 29.45.030(i) reference to  AS 29.45.050(x)                                                                   
     where  the  definition  of  "disabled  veteran"  is  now                                                                   
     located as a result of this legislation                                                                                    
                                                                                                                                
     Section   7:   Amends   AS   29.45.050(i)   allowing   a                                                                   
     municipality  to  exempt  real  property  from  taxation                                                                   
     making  it  optional  under  state  statute  and  places                                                                   
    widow or widower as a qualifier under this section                                                                          
                                                                                                                                
     Section  8: Adds  the definition  of "disabled  veteran"                                                                   
     and "widow or widower" to AS 29.45.050(x)                                                                                  
                                                                                                                                
     Section   9:   Moves   repealed    language   under   AS                                                                   
     29.45.030(e) and AS 29.45.030(i) to this section                                                                           
                                                                                                                                
     Section 10:  Updates the program name  change "community                                                                   
     assistance" in AS 29.45.660(b)                                                                                             
                                                                                                                                
     Section 11:  Updates the program name  change "community                                                                   
     assistance" in AS 29.60.810 (A)                                                                                            
                                                                                                                                
     Section 12:  Updates the program name  change "community                                                                   
     assistance"  in  AS 29.60.850  and  reduces the  minimum                                                                   
     balance to $15,000,000                                                                                                     
                                                                                                                                
     Section 13:  Updates the program name  change "community                                                                   
     assistance"  in AS 29.60.855,  changes the  basic amount                                                                   
     to $384,000,  and directs  the department to  reduce the                                                                   
     basic amount  pro rata if the fund balance  is less than                                                                   
     $15,000,000                                                                                                                
                                                                                                                                
     Section 14:  Updates the program name  change "community                                                                   
     assistance" in AS 29.60.860(a)                                                                                             
                                                                                                                                
     Section 15:  Updates the program name  change "community                                                                   
     assistance" in AS 29.60.860(b)                                                                                             
                                                                                                                                
     Section 16:  Updates the program name  change "community                                                                   
     assistance" in AS 29.60.865                                                                                                
                                                                                                                                
     Section  17: Adds  the community  assistance program  to                                                                   
     the definition  of "state  money" in AS  29.71.040(h)(2)                                                                   
     - Procurement Preference                                                                                                   
                                                                                                                                
     Section 18:  Updates the program name  change "community                                                                   
     assistance" in AS 36.10.090(b)                                                                                             
                                                                                                                                
     Section  19: Adds  the community  assistance program  to                                                                   
     AS 36.10.125(c) - employment preferences                                                                                   
                                                                                                                                
     Section  20: Adds  the community  assistance program  to                                                                   
     the definition  of "state  money" in AS  36.15.050(h)(3)                                                                   
     - Alaska Product Preference                                                                                                
                                                                                                                                
     Section  21: Adds  the community  assistance program  to                                                                   
     AS  44.33.020(a)   (20)  requiring  the   Department  of                                                                   
     Commerce,   Community   and  Economic   Development   to                                                                   
     administer the program                                                                                                     
                                                                                                                                
     Section 22:  Updates the program name  change "community                                                                   
     assistance" in AS 46.07.080(2)(iii)                                                                                        
                                                                                                                                
     Section  23:  Repeals AS  29.45.0303(a)(6),  29.45.030¼                                                                  
     29.45.030(f),     29.45.030(g),    29.45.030(i),     and                                                                   
     29.45.030(k)                                                                                                               
                                                                                                                                
2:06:42 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon   queried   recommendations   from   the                                                                   
committee.                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  stressed  that the  state  was  in a  $4                                                                   
billion deficit.                                                                                                                
                                                                                                                                
Co-Chair  Kelly  shared a  history  of the  state's  unfunded                                                                   
liability.                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon   stressed  that   the  suite   of  bills                                                                   
attempted  to  address  the holes  in  Alaska's  budget.  She                                                                   
remarked  that the  bills would  provide  an opportunity  for                                                                   
communities   to  understand   the   state's  problems.   She                                                                   
stressed  that the committee  was attempting  to address  the                                                                   
long-term fiscal  problem, and  the state could  not continue                                                                   
to address  the major  issue with  budget. She remarked  that                                                                   
the funds  were not  available to continue  to invest  in the                                                                   
same way as it had in the past.                                                                                                 
                                                                                                                                
SB  210  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 207 Sponsor Statement - LHead.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208 Sectional Analysis 032616.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Sponsor Statement 032816.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
PERS Sponsor Statement.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 209 - Sectional Analysis PERS.pdf SFIN 3/29/2016 1:00:00 PM
SB 209
SB 209 Public Testimony Roberts.pdf SFIN 3/29/2016 1:00:00 PM
SB 209
SB 210 Public Testimony - Roberts.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 210 Public Testimony - Somerville.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 208 Public Testimony Packet 1.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 207 - SB 209 ASD Opposition.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 209
SB 207 Public Testimony Opposition Bronson.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 Public Testimony Opposition Homzas.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 Public Testimony Opposition Spalding.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 SB 208 Public Testimony Lelake.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 208 Public Testimony Opposition Krieter.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Public Testimony Opposition Bekeris.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 207 Sb 208 Public Testimony Opposition Stahl.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 207 SB 208 Public Testimony Opposition Richotte.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 207 Sb 208 Public Testimony Opposition Meyn.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 208 Public Testimony Opposition Story.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 207 SB 208 Public Testimony Opposition Rector.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 208 Public Testimony Opposition Stephens.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Public Testimony Opposition Kief.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 207, 208, 209 Public Testimony Opposition Bernard.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 SB 208 Public Testimony Opposition Pausback.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 208 Public Testimony Opposition Leiter.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Public Testimony Opposition Dauenhauer.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Public Testimony Support Pulczinski.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 210 Public Testimony Opposition Sullivan.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 210 Public Testimony - Somerville.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 210 Sponsor Statement.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 210 - Sectional Analysis.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 209 AML Questionnaire.pdf SFIN 3/29/2016 1:00:00 PM
SB 209
SB 207 SB 209 Public Testimony Support Hodges.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 209
SB 208 Public Testimony Opposition LeNorman.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 208 Public Testimony Opposition Dean.pdf SFIN 3/29/2016 1:00:00 PM
SB 208
SB 207 Sb 208 Public Testimony Opposition Gardey.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 207 SB 208 Public Testimony Opposition Wilkas.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 207, 208, 209, 210 Public Testimony Opposition Geroge.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 210 Public Testimony Opposition Pierce.pdf SFIN 3/29/2016 1:00:00 PM
SB 210
SB 207 SB 209 Cordova School District Opposition.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 209
SB 207 SB 208 SB 209 SB 210 3 31 16 PERS TRS CAP Backup Documents.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207, SB 208, SB 209
SB 208
SB 209
SB 210
SB 207 - Actuarial Analysis.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 DOA-TRS-040316.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 207 SB 208 Public Testimony Opposition LaRue.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 208
SB 209 - Actuarial Analysis.pdf SFIN 3/29/2016 1:00:00 PM
SB 209
SB 207 SB 209 Cordova School District Opposition.pdf SFIN 3/29/2016 1:00:00 PM
SB 207
SB 209
SB 209 DOA-PERS 040316.pdf SFIN 3/29/2016 1:00:00 PM
SB 209
SB 209 Public Testimony Opposition Massie.pdf SFIN 3/29/2016 1:00:00 PM
SB 209