Legislature(1993 - 1994)
04/26/1994 01:00 PM CRA
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.