Legislature(1993 - 1994)

04/26/1994 01:00 PM CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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              HOUSE COMMUNITY AND REGIONAL AFFAIRS                             
                       STANDING COMMITTEE                                      
                         April 26, 1994                                        
                            1:00 p.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Harley Olberg, Chairman                                       
  Representative Jerry Sanders, Vice-Chair                                     
  Representative Ed Willis                                                     
  Representative Bill Williams                                                 
  Representative Cynthia Toohey                                                
  Representative John Davies                                                   
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Bunde                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SCR 14:   Relating to the naming of the Harold Z. Hansen                     
            Hatchery at Main Bay in Prince William Sound.                      
                                                                               
            SSSCR 14 PASSED OUT OF COMMITTEE WITH                              
            INDIVIDUAL RECOMMENDATIONS                                         
                                                                               
  SB 164:   "An Act providing that home rule cities in the                     
            unorganized borough are school districts;                          
            permitting the Local Boundary Commission to amend                  
            petitions for incorporation or proposing municipal                 
            boundary changes; applying existing standards of                   
            incorporation for boroughs to unified                              
            municipalities; applying existing standards of                     
            incorporation for first class cities to                            
            incorporation of a home rule city; and relating to                 
            reclassification of first class or home rule                       
            cities to second class cities, to municipal                        
            reclassification and to public hearings on                         
            reclassification, to formation of home rule cities                 
            and unified municipalities through incorporation,                  
            merger, or consolidation, to organization grants                   
            and transitional assistance for unified                            
            municipalities, to adoption of a home rule charter                 
            by a second class city, to dissolution of                          
            municipalities, to filing copies of an amended                     
            home rule charter, and to regulations of the local                 
            boundary commission dealing with standards and                     
            procedures for municipal incorporation,                            
            annexation, detachment, merger, consolidation,                     
            reclassification, and dissolution."                                
                                                                               
            CSSB 164 PASSED OUT OF COMMITTEE WITH                              
            INDIVIDUAL RECOMMENDATIONS                                         
                                                                               
  SB 240:   "An Act relating to an optional municipal tax                      
            exemption for student housing for the University                   
            of Alaska."                                                        
                                                                               
            HEARD AND HELD                                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  DAN BOCKHORST, Supervisor                                                    
  Local Boundary Commission Staff                                              
  Department of Community and Regional Affairs                                 
  333 W. 4th Avenue, Suite 220                                                 
  Anchorage, AK  99501-2341                                                    
  Phone: 269-4559                                                              
  POSITION STATEMENT:  Supported CSSB 164                                      
                                                                               
  WENDY REDMAN, Vice President, University Relations                           
  University of Alaska                                                         
  910 Yukon Drive                                                              
  Fairbanks, AK  99775-2388                                                    
  Phone: 474-6302                                                              
  POSITION STATEMENT:  Supported CSSB 240                                      
                                                                               
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  SCR 14                                                                
  SHORT TITLE: NAME HATCHERY AT MAIN BAY: H.Z. HANSEN                          
  SPONSOR(S): SENATOR(S)KERTTULA,Lincoln,Duncan,                               
  Zharoff,Frank,Adams,Donley,Kelly,Pearce,Jacko,                               
  Miller,Rieger,Salo,Sharp,Leman                                               
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  02/04/94      2681    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  02/04/94      2682    (S)   CRA, RES                                         
  02/22/94      2911    (S)   SPONSOR SUBSTITUTE                               
                              INTRODUCED-REFERRALS                             
  02/22/94      2911    (S)   CRA, RES                                         
  03/03/94      3054    (S)   CRA RPT  5DP                                     
  03/03/94      3054    (S)   ZERO FISCAL NOTE PUBLISHED(F&G)                  
  03/03/94              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  03/03/94              (S)   MINUTE(CRA)                                      
  04/06/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  04/08/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  04/11/94              (S)   RLS AT 00:00 AM FAHRENKAMP                       
                              ROOM 203                                         
  04/11/94      3548    (S)   RES RPT  3DP 1NR                                 
  04/11/94      3548    (S)   PREVIOUS ZERO FN (F&G)                           
  04/13/94      3628    (S)   RULES RPT 4CAL 1NR 4/13/94                       
  04/13/94      3648    (S)   READ THE SECOND TIME                             
  04/13/94      3648    (S)   PASSED Y19 N- A1                                 
  04/13/94      3651    (S)   TRANSMITTED TO (H)                               
  04/14/94      3423    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/14/94      3423    (H)   COMMUNITY & REGIONAL AFFAIRS                     
  04/26/94              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  SB 164                                                                
  SHORT TITLE: MUN INCORP/RECLASSIFICATION/DISSOLUTION                         
  SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                     
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  03/16/93       825    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  03/16/93       826    (S)   CRA, JUDICIARY                                   
  03/30/93              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  03/30/93              (S)   MINUTE(CRA)                                      
  04/13/93              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  04/13/93              (S)   MINUTE(CRA)                                      
  04/20/93              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  04/20/93              (S)   MINUTE(CRA)                                      
  04/22/93              (S)   MINUTE(CRA)                                      
  04/23/93              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  04/24/93              (S)   CRA AT 9:00 AM BUTROVICH RM 205                  
  04/24/93              (S)   MINUTE(CRA)                                      
  04/26/93      1758    (S)   CRA RPT  CS  2DP 2NR NEW TITLE                   
  04/26/93      1758    (S)   ZERO FISCAL NOTE TO SB & CS                      
                              (DCRA)                                           
  02/23/94              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  03/02/94      3026    (S)   JUD RPT  CS  1DP 3NR NEW TITLE                   
  03/02/94      3026    (S)   ZERO FN TO CS PUBLISHED (DCRA)                   
  03/16/94              (S)   RLS AT 00:00 AM FAHRENKAMP                       
                              ROOM 203                                         
  03/16/94              (S)   MINUTE(RLS)                                      
  04/18/94              (S)   RLS AT 03:15 PM FAHRENKAMP                       
                              ROOM 203                                         
  04/19/94              (S)   RLS AT 12:30 PM FAHRENKAMP                       
                              ROOM 203                                         
  04/20/94      3807    (S)   RLS RPT  CS 4DP & CALENDAR                       
                              4/20/94                                          
  04/20/94      3808    (S)   PREVIOUS ZERO FN APPLIES TO CS                   
  04/20/94      3811    (S)   READ THE SECOND TIME                             
  04/20/94      3811    (S)   RLS  CS ADOPTED UNAN CONSENT                     
  04/20/94      3812    (S)   ADVANCED TO THIRD READING UNAN                   
                              CONSENT                                          
  04/20/94      3812    (S)   READ THE THIRD TIME                              
                              CSSB 164(RLS)                                    
  04/20/94      3813    (S)   PASSED Y16 N2 E2                                 
  04/20/94      3824    (S)   TRANSMITTED TO (H)                               
  04/22/94      3659    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/22/94      3660    (H)   COMMUNITY & REGIONAL AFFAIRS                     
  04/26/94              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  BILL:  SB 240                                                                
  SHORT TITLE: MUNICIPAL TAX CREDIT/STUDENT HOUSING                            
  SPONSOR(S): SENATOR(S):PEARCE,Kelly,Kerttula,                                
  Taylor,Frank,Miller,Sharp,Duncan,Donley                                      
                                                                               
  JRN-DATE     JRN-PG               ACTION                                     
  01/11/94      2469    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  01/11/94      2469    (S)   CRA, RES, FIN                                    
  01/14/94      2515    (S)   CRA REFERRAL WAIVED                              
  02/04/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  02/04/94              (S)   MINUTE(RES)                                      
  02/09/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  02/14/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  02/14/94              (S)   MINUTE(RES)                                      
  02/15/94              (S)   RES AT 3:30 PM BUTROVICH RM 205                  
  02/15/94              (S)   MINUTE(RES)                                      
  02/18/94      2883    (S)   RES RPT  CS  4DP 1NR SAME TITLE                  
  02/18/94      2883    (S)   ZERO FNS TO SB & CS PUBLISHED                    
                              (DNR, F&G)                                       
  02/24/94      2957    (S)   FIN RPT  CS  5DP  SAME TITLE                     
  02/24/94      2958    (S)   PREVIOUS ZERO FNS APPLY                          
                              (DNR, F&G)                                       
  02/24/94              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  02/24/94              (S)   MINUTE(FIN)                                      
  03/01/94              (S)   RLS AT 01:00 PM FAHRENKAMP                       
                              ROOM 203                                         
  03/01/94              (S)   MINUTE(RLS)                                      
  04/08/94      3529    (S)   RETURNED TO FINANCE FROM RULES                   
  04/14/94              (S)   FIN AT 09:00 AM SENATE FIN 518                   
  04/14/94      3663    (S)   FIN RPT 2DCS  5DP NEW TITLE                      
  04/14/94      3664    (S)   ZERO FN TO 2DCS PUBLISHED (UA)                   
  04/18/94              (S)   RLS AT 03:15 PM FAHRENKAMP                       
                              ROOM 203                                         
  04/19/94      3782    (S)   RLS RPT  CS 1DP & CAL 1CAL 2NR                   
                              NEW TITLE                                        
  04/19/94      3782    (S)   PREVIOUS ZERO FN APPLIES (UA)                    
  04/19/94      3784    (S)   READ THE SECOND TIME                             
  04/19/94      3784    (S)   RLS  CS ADOPTED UNAN CONSENT                     
  04/19/94      3784    (S)   ADVANCED TO THIRD READING UNAN                   
                              CONSENT                                          
  04/19/94      3784    (S)   READ THE THIRD TIME                              
                              CSSB 240(RLS)                                    
  04/19/94      3784    (S)   COSPONSOR(S): KELLY, KERTTULA,                   
                              TAYLOR,                                          
  04/19/94      3784    (S)   FRANK, MILLER, SHARP, DUNCAN,                    
                              DONLEY                                           
  04/19/94      3785    (S)   PASSED Y19 N- E1                                 
  04/19/94      3789    (S)   TRANSMITTED TO (H)                               
  04/20/94      3618    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  04/20/94      3618    (H)   COMMUNITY & REGIONAL AFFAIRS                     
  04/26/94              (H)   CRA AT 01:00 PM CAPITOL 124                      
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
                                                                               
  TAPE 94-20, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN HARLEY OLBERG called the meeting to order at 1:05                   
  p.m.  He stated for the record that Representatives Toohey,                  
  Williams, Davies and Sanders were present and noted that a                   
  quorum was present.                                                          
  SCR 14 - NAME HATCHERY AT MAIN BAY: H.Z. HANSEN                              
                                                                               
  CHAIRMAN OLBERG brought forth SSSCR 14.                                      
                                                                               
  Number 025                                                                   
                                                                               
  REPRESENTATIVE CYNTHIA TOOHEY moved to pass SSSCR 14 out of                  
  committee with individual recommendations.                                   
                                                                               
  There were no objections.                                                    
  SB 164 - MUN INCORP/RECLASSIFICATION/DISSOLUTION                             
                                                                               
  Number 033                                                                   
                                                                               
  CHAIRMAN OLBERG brought forth CSSB 164.                                      
                                                                               
  DAN BOCKHORST, SUPERVISOR, LOCAL BOUNDARY COMMISSION STAFF,                  
  DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS (DCRA),                         
  testified in support of CSSB 164.  He said, "Both the DCRA                   
  and the Local Boundary Commission (LBC) strongly support                     
  this bill.  The bill makes fundamental improvements to the                   
  laws that the state of Alaska regarding local government                     
  structure.  In many respects, it accommodates the needs of                   
  Alaskans that have been expressed to the DCRA or to the LBC                  
  over the past many years at various hearings and meetings                    
  throughout the state.  For example, it permits incorporation                 
  of home rule cities and unified municipalities.  It affirms                  
  that home rule cities and boroughs may be permitted through                  
  merger or consolidation.  The bill permits first class                       
  cities and home rule cities to reclassify as second class                    
  cities.  It establishes standards for city reclassification,                 
  provides that the LBC will review city reclassification                      
  proposals.  Additionally, the bill affirms the commission's                  
  (LBC) authority to approve or amend petitions and to adopt                   
  regulations for matters that come before it..."                              
                                                                               
  REPRESENTATIVE ED WILLIS joined the committee at 1:09 p.m.                   
                                                                               
  Number 091                                                                   
                                                                               
  REPRESENTATIVE TOOHEY asked how the Alaska Municipal League                  
  felt about this legislation.                                                 
                                                                               
  CHAIRMAN OLBERG said, "I would say they are neutral, based                   
  on their lack of attendance (here)."                                         
                                                                               
  REPRESENTATIVE WILLIS asked, "On page 4, line 20...what's                    
  the difference between the `must' and the `shall'"?                          
                                                                               
  MR. BOCKHORST said, "This was a preference that was                          
  expressed by Tam Cook."                                                      
                                                                               
  Number 125                                                                   
                                                                               
  REPRESENTATIVE DAVIES asked what the "motivations" and                       
  "implications" are for having home rule cities defined as                    
  school districts.                                                            
                                                                               
  MR. BOCKHORST said, "It doesn't change the law.  Home rule                   
  cities and first class cities are already recognized as                      
  being school districts if they are in the unorganized                        
  borough.  And the purpose of the amendment provision of                      
  Section 1 is simply to make Title 14, Chapter 12 of the                      
  state statutes comply with what is already stated in Title                   
  29, Chapter 35, Section 260.  Section 260 already says, that                 
  home rule cities in an unorganized borough are city school                   
  districts."                                                                  
                                                                               
  Number 165                                                                   
                                                                               
  REPRESENTATIVE TOOHEY moved to pass CSSB 164 out of                          
  committee with individual recommendations.                                   
                                                                               
  There were no objections.                                                    
  SB 240 - MUNICIPAL TAX CREDIT/STUDENT HOUSING                                
                                                                               
  CHAIRMAN OLBERG brought forth CSSB 240.                                      
                                                                               
  Number 160                                                                   
                                                                               
  WENDY REDMAN, VICE PRESIDENT, UNIVERSITY RELATIONS,                          
  UNIVERSITY OF ALASKA, said, "SB 240 is legislation which                     
  amends the current tax statutes which would provide                          
  municipalities the option of passing local ordinance to                      
  provide a property tax exemption for the development of                      
  student housing projects at the University of Alaska.  It's                  
  sort of a new trend around the country.  There are now 13                    
  states that are moving into this area of turning over their                  
  student housing to private entities.  I think that they can                  
  build and operate it more efficiently, in most cases, than                   
  the universities themselves can.  We don't currently have an                 
  option that we're ready to jump on but we have several                       
  parties that have been interested in pursuing the option in                  
  Anchorage and Fairbanks.  Particularly in Fairbanks right                    
  now.  So we would like to get this legislation passed.  It                   
  certainly enhances our ability to go forward with this kind                  
  of a proposal.  It makes it much more attractive if we're                    
  able to work with the municipality to see if they would be                   
  willing to give the tax exemption while there is a private                   
  leasehold, private interest in the university property."                     
                                                                               
  Number 186                                                                   
                                                                               
  REPRESENTATIVE DAVIES said, "I've been in communication with                 
  the Mayor of Fairbanks and he's a little bit concerned about                 
  some of the issues here.  I don't think anybody objects to                   
  the intent here of trying to provide the option for                          
  municipalities to provide some tax exempt status for                         
  buildings that are designed exclusively for university                       
  housing, but there are some dueling lawyers in the wings                     
  here about exactly how this should be worded."  He then                      
  asked if this bill could be held over until the following                    
  day, for the next Community and Regional Affairs Committee,                  
  when some new "consensus language" might be presented.                       
                                                                               
  CHAIRMAN OLBERG asked, "Who's involved in the consensus?"                    
                                                                               
  REPRESENTATIVE DAVIES said, "The Fairbanks North Star                        
  Borough and the University of Alaska."                                       
                                                                               
  CHAIRMAN OLBERG asked, "Is that an accurate depiction of the                 
  University's wishes at this point?"                                          
                                                                               
  MS. REDMAN replied, "We have language which we think                         
  resolves the issue for the municipality, or for the borough.                 
  We have not been able to get a hold of their attorney with                   
  our attorney to reach some closure on it.  Their concern is                  
  a legitimate concern.  Part of the problem is that they're                   
  concerned that somebody doesn't have a duplex in town and                    
  just because the duplex happens to be housing at that                        
  particular time exclusively university students, that                        
  suddenly that person says we get to be tax exempt.  And we                   
  clearly don't intend that to happen either.  So we're trying                 
  to get some language in here which indicates that it has to                  
  be on a contractual basis with the University of Alaska."                    
                                                                               
  Number 222                                                                   
                                                                               
  CHAIRMAN OLBERG asked, "Is this something that we think that                 
  we can resolve in 24 hours to everybody's mutual agreement?"                 
                                                                               
  REPRESENTATIVE TOOHEY asked how many committees SB 240 was                   
  referred to in the Senate and if this concern was brought                    
  forth previously.                                                            
                                                                               
  MS. REDMAN said, "It was in the Finance Committee and then                   
  it had a substantive hearing in the Rules Committee because                  
  of a change that was added in the Rules Committee, which                     
  limited the municipalities to 30 year segments for the tax                   
  exemption and allows them to do a second 30 years if they                    
  wish...  It did not come up and, in fact the way the bill is                 
  currently written, we feel, our attorneys feel it would in                   
  fact prevent exactly what the borough is concerned about.                    
  However, to allay any fears with the borough, we're willing                  
  to put in an amendment which will address their concern more                 
  specifically."                                                               
                                                                               
  Number 245                                                                   
                                                                               
  CHAIRMAN OLBERG said, "It will be preferable to do it here                   
  than on the floor," and indicated that he would hold the                     
  bill in committee until the following day's committee                        
  meeting.  He then adjourned the meeting at 1:17 p.m.                         
                                                                               

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