04/24/2025 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB47 | |
| Presentation(s): Power Cost Equalization | |
| HB184 | |
| HB13 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 184 | TELECONFERENCED | |
| += | HB 13 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 47 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 24, 2025
8:05 a.m.
MEMBERS PRESENT
Representative Rebecca Himschoot, Co-Chair
Representative Donna Mears, Co-Chair
Representative Carolyn Hall
Representative Ky Holland
Representative Mike Prax
Representative Justin Ruffridge
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 47
"An Act relating to crime and criminal procedure; relating to
generated obscene child sexual abuse material; relating to the
powers of district judges and magistrates; relating to teaching
certificates; and relating to licensing of school bus drivers."
- HEARD & HELD
PRESENTATION(S): POWER COST EQUALIZATION
- HEARD
HOUSE BILL NO. 184
"An Act relating to the Alaska Industrial Development and Export
Authority; and relating to workforce housing development
projects."
- HEARD & HELD
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 13
"An Act relating to optional municipal property tax exemptions
for certain long-term rental units, certain mobile home parks,
real property rented to low-income families, real property owned
and occupied as a permanent place of abode, and real property
owned by first-time homebuyers."
- MOVED CSSSHB 139(CRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 47
SHORT TITLE: GENERATED OBSCENE CHLD SEX ABUSE MATERIAL
SPONSOR(s): REPRESENTATIVE(s) VANCE
01/22/25 (H) PREFILE RELEASED 1/17/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) CRA, JUD
03/11/25 (H) CRA AT 8:00 AM BARNES 124
03/11/25 (H) Heard & Held
03/11/25 (H) MINUTE(CRA)
03/13/25 (H) CRA AT 8:00 AM BARNES 124
03/13/25 (H) Heard & Held
03/13/25 (H) MINUTE(CRA)
03/18/25 (H) CRA AT 8:00 AM BARNES 124
03/18/25 (H) <Bill Hearing Canceled>
04/24/25 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 184
SHORT TITLE: AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
SPONSOR(s): REPRESENTATIVE(s) STORY
04/11/25 (H) READ THE FIRST TIME - REFERRALS
04/11/25 (H) CRA, L&C
04/24/25 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 13
SHORT TITLE: MUNICIPAL PROPERTY TAX EXEMPTIONS
SPONSOR(s): REPRESENTATIVE(s) GRAY
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) CRA, FIN
03/10/25 (H) SPONSOR SUBSTITUTE INTRODUCED
03/10/25 (H) READ THE FIRST TIME - REFERRALS
03/10/25 (H) CRA, FIN
03/25/25 (H) CRA AT 8:00 AM BARNES 124
03/25/25 (H) Heard & Held
03/25/25 (H) MINUTE(CRA)
03/27/25 (H) CRA AT 8:00 AM BARNES 124
03/27/25 (H) Heard & Held
03/27/25 (H) MINUTE(CRA)
04/10/25 (H) CRA AT 8:00 AM BARNES 124
04/10/25 (H) Heard & Held
04/10/25 (H) MINUTE(CRA)
04/15/25 (H) CRA AT 8:00 AM BARNES 124
04/15/25 (H) -- MEETING CANCELED --
04/22/25 (H) CRA AT 8:00 AM BARNES 124
04/22/25 (H) Heard & Held
04/22/25 (H) MINUTE(CRA)
04/24/25 (H) CRA AT 8:00 AM BARNES 124
WITNESS REGISTER
THATCHER BROWER, Staff
Representative Rebecca Himschoot
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave an explanation of changes to HB 47, on
behalf of Representative Himschoot.
CURTIS THAYER, Executive Director
Alaska Energy Authority
Anchorage, Alaska
POSITION STATEMENT: Co-offered the Power Cost Equalization
presentation.
TIM SANDSTROM, Chief Operating Officer
Alaska Energy Authority
Anchorage, Alaska
POSITION STATEMENT: Co-offered the Power Cost Equalization
presentation.
REPORESENTATIVE ANDI STORY
Alaska State Representative
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 184.
HONOUR MILLER-AUSTIN, Staff
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for HB
184, on behalf of Representative Story, prime sponsor.
STACY BARNES, Director
Governmental Relations & Public Affairs
Alaska Housing Finance Corporation
City & State
POSITION STATEMENT: Answered questions during the hearing on HB
184.
BRANDON BREFCZYNSKI, Deputy Director
Alaska Industrial Development & Export Authority
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
184.
CHRISTINE WOLL, Assembly Member
City and Borough of Juneau
Juneau, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 184.
RICHELLE JOHNSON, Research & Technical Assistance Director
Center for Economic Development
University of Alaska Anchorage
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 184.
REPRESENTATIVE ANDREW GRAY
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Commented on amendments to CSSSHB 13,
Version T, as the prime sponsor.
ACTION NARRATIVE
8:05:56 AM
CHAIR REBECCA HIMSCHOOT called the House Community and Regional
Affairs Standing Committee meeting to order at 8:05 a.m.
Representatives Hall, Holland, Mears, and Himschoot were present
at the call to order. Representatives Ruffridge and Prax
arrived as the meeting was in progress.
HB 47-GENERATED OBSCENE CHLD SEX ABUSE MATERIAL
8:07:03 AM
CO-CHAIR HIMSCHOOT announced that the first order of business
would be HOUSE BILL NO. 47, "An Act relating to crime and
criminal procedure; relating to generated obscene child sexual
abuse material; relating to the powers of district judges and
magistrates; relating to teaching certificates; and relating to
licensing of school bus drivers."
8:07:15 AM
CO-CHAIR MEARS moved to adopt the proposed committee substitute
(CS) for HB 47, Version 34-LS0334\N, C. Radford, 4/18/25, as the
working document.
CO-CHAIR HIMSCHOOT objected for the purpose of discussion.
8:07:38 AM
THATCHER BROWER, Staff, Representative Rebecca Himschoot, Alaska
State Legislature, presented an explanation of changes in
Version N. He explained that "or contractor" was inserted on
page 3, line 14, and page 4, line 9, to ensure that an employee
or contractor doing the work is not liable.
CO-CHAIR HIMSCHOOT removed her objection. There being no
further objection, Version N was adopted as the working
document. She announced that the bill would be held over.
^PRESENTATION(S): Power Cost Equalization
PRESENTATION(S): Power Cost Equalization
8:09:12 AM
CO-CHAIR HIMSCHOOT announced that the next order of business
would be the Power Cost Equalization presentation.
8:09:29 AM
CURTIS THAYER, Executive Director, Alaska Energy Authority
(AEA), directed attention to a PowerPoint presentation, titled
"AEA Power Cost Equalization and Rural Programs" [hard copy
included in the committee packet]. He shared AEA's mission on
slide 2 and a list of AEA's active projects and services on
slide 3. He turned to rural energy on slide 4 and played a
video on slide 5.
8:15:35 AM
CO-CHAIR HIMSCHOOT asked whether transmission lines could have
been installed when laying the fiber optic cables across the
tundra.
MR. THAYER said it would be an expensive proposition.
8:16:12 AM
TIM SANDSTROM, Chief Operating Officer, Alaska Energy Authority
(AEA), continued the presentation on slide 6 with a timeline of
urban and rural energy solutions. Slide 7 showed the
legislative evolution of the Power Cost Equalization (PCE)
program. Slide 8 featured a graph of PCE disbursements and
slide 9 showed a graph of the PCE endowment value. AS 42.05.085
provides that 5 percent of the PCE Endowment Fund 3-year average
market value may be appropriated to the program. Slide 10
described who is eligible to participate in PCE and slide 11
gave a summary of today's PCE program.
8:20:29 AM
MR. SANDSTROM, in response to a question from Co-Chair Himschoot
about public facilities, said streetlights are included, and
greenhouses depending on how they were funded. Clinics and
washeterias are often considered community facilities, as long
as they do not receive state or federal funding. In response to
follow-up questions, he explained that a community store, for
example, would not qualify because it's funded for profit. He
said eligibility is determined by the Regulatory Commission of
Alaska (RCA).
8:21:47 AM
MR. SANDSTROM, in response to a question from Representative
Holland, said theoretically, the amount of available funding
could be surpassed if enough community facilities were
established, but its unlikely. In regulation, if AEA determines
that there's not enough money to make all PCE payments, a pro-
rated system would be utilized.
8:23:22 AM
MR. SANDSTROM resumed the presentation on slide 12 with a
discussion of rural power system upgrades.
MR. THAYER, in response to a question from Co-Chair Himschoot
about whether statute could be amended to allow schools to
receive PCE funding, confirmed that it would be a policy call;
however, PCE is driven off endowment, with the first allocation
of earnings goes to PCE, followed by community assistance in
rural Alaska. He said at some point, adding additional cost to
PCE would remove funding from the community assistance, which
are all designated funds. Essentially raising PCE could be
cutting community assistance from the same community.
MR. THAYER, in response to committee questions, explained that
the change in formula occurred in FY 22 when the program was
running $30 million, as opposed to 4$48 million currently.
Depending on earnings, there used to be a waterfall effect where
excess earnings could be used for powerhouse upgrades, rural
energy fund, bulk fuel loans, etcetera. Now, however, since the
increase from 500kw to 750kw, that's no longer an option because
the earnings aren't there. In response to Co-Chair Himschoot's
question, explained that slide 9 represents market fluctuations
and specifically in 2021, the move to APFC management.
8:28:58 AM
MR. SANDSTROM shared the rural power system upgrade
prioritization list on slide 13. In response to a series of
committee questions, he said there is a problem with both
funding and capacity because in a perfect world, the life cycle
of a powerhouse would be 20 years but realistically, 10 years is
more accurate. He explained that lack of maintenance is the
primary cause of the reduction in life. In addition, he
discussed retention issues with skilled employees. He defined a
powerhouse as a modular building with three to four [generator]
sets and automated switch gears and controls to manage the power
and allow the integration of renewables. He said reliability is
dependent on the quality and capacity of the community.
8:34:56 AM
MR. THAYER added that that AEA has site control over these
powerhouse buildings, but there's not requirements that the
community maintains it because they are self-governed. He
explained that the EPA awarded AEA with a congressional
exemption that allows rural Alaska to have higher emissions.
One of the primary issues with retention is that communities set
rates for their power, which funds the maintenance improvements
and compensation for workers.
CO-CHAIR HIMSCHOOT added that in her community, 20 percent of
people are doing 80 percent of the work.
8:39:20 AM
MR. SANDSTROM resumed the presentation on slide 14 with a
discussion of bulk fuel upgrades, and slide 15, which displayed
the bulk fuel upgrade prioritization list.
MR. THAYER, in response to a series of committee questions, said
yes, federal receipt authority is often matched by the Denali
Commission - AEA's primary partner. He added that nothing was
set aside for bulk fuel or power houses because they are fossil
fuel.
8:42:21 AM
MR. SANDSTROM, in response to a question from Representative
Holland about hazardous tanks and reducing the number of tanks,
said the integration of renewables does not reduce the need for
storage because "the wind doesn't always blow, and the sun
doesn't always shine." He acknowledged that many places are in
environmental danger and theorized that the increasing
technology would someday lead to a reduction in capacity.
8:44:14 AM
MR. THAYER, in response to a question from Representative Prax,
said there is no insurance policy to cover environmental risk-
it falls on the State of Alaska.
8:44:39 AM
MR. SANDSTROM, in response to questions from Representative
Ruffridge, said varying rates of diesel fuel often depend on the
method of delivery; however, they are not wildly different.
MR. THAYER, in response to a suggestion from Representative
Ruffridge to buy diesel in bulk, said the biggest issue is the
assumption that bulk fuel tanks are new and can handle the fuel.
It's more about the condition of the tanks and the powerhouses,
and less about the price of diesel.
MR. SANDSTROM added that major bulk dispatch would drive down
the cost.
8:50:44 AM
MR. SANDSTROM, in response to question from Representative Mears
about storage times for communities with weather restrictions,
said bulk fuel tanks are designed for one year to accommodate
delayed barge deliveries.
8:51:55 AM
MR. THAYER, in response to Representative Prax's observation
about long-term viability, said AEA has conducted 3D modeling
and inventory assessments and is aware of the problem. The AEA
foresees costs increasing and an inability to maintain state and
federal funding levels.
8:54:23 AM
MR. SANDSTROM resumed the presentation on slide 16 by addressing
the Circuit Rider Program. In response to a question from Co-
Chair Himschoot about funding, confirmed that the program is
funded nearly 100 percent by the Denali Commission.
MR. THAYER explained that with the Denali Commission's current
funding issues, the program's $710,000 in funding has dropped to
$50,000. Now the Circuit Rider Program has been maintained with
maintenance and improvement funds but as that funding decreases,
there's no way to keep circuit riders in Alaska. Consequently,
AEA's proposal in the governor's budget was to shift the funding
source to the PCE Endowment Fund because the program goes to PCE
communities to provide training. Without the Denali Commission,
AEA will not have a funding source to send these people to rural
Alaska for training.
8:57:11 AM
MR. SANDSTROM, in response to further committee questions,
answered yes, Alaskans participate in the Circuit Rider Program
who have "come up through the system." He spoke to the
difficulty of the job.
8:58:20 AM
MR. THAYER, in response to Co-Chair Himschoot, said communities
do not pay a fee for the Circuit Rider Program because these are
the same communities that receive PCE to lower the cost of
energy and community assistance to keep daily operations. He
noted that there are about 50-60 village that are too small for
Alaska Village Electric Cooperative, Incorporated (AVEC) to
service, for which AEA is their emergency call. The Inside
Passage Electric Cooperative (IPEC) also services a handful of
communities in Southeast Alaska.
9:00:16 AM
MR. THAYER resumed the presentation on slide 18 with a
discussion of the Renewable Energy Fund (REF) grant program.
Slide 19 showed a list of round 17 REF recommended projects to
the legislature. He emphasized that the selection is based on
economics, cost of power, technology, and community need. In
response to a question from Co-Chair Himschoot, confirmed that a
new round would be opening to refresh the list and add
additional communities. An independent review found that the
program has saved these communities 100 million gallons of
diesel fuel. He concluded on slide 19, which listed awards and
pending applications for federal funding.
HB 184-AIDEA FINANCE WORKFORCE HOUSING DEVELOP.
9:07:36 AM
CO-CHAIR HIMSCHOOT announced that the next order of business
would be HOUSE BILL NO. 184, "An Act relating to the Alaska
Industrial Development and Export Authority; and relating to
workforce housing development projects."
9:07:52 AM
REPORESENTATIVE ANDI STORY, Alaska State Representative, as
prime sponsor, presented HB 184. She paraphrased the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
In most of Alaska, there is a severe housing shortage.
This holds true in our communities in Southeast
Alaska. This shortage is causing outmigration of our
younger residents, who are so important in filling our
employment needs and keeping our longtime families
here. Adding more housing units is critical to our
communities. Alaska cannot keep our residents nor
attract key public employees such as police, teachers
and health workers if they cannot find housing.
More rental units are needed. In my home community of
Juneau, the 2023 Alaska Housing Finance Corporation
(AHFC) rental market survey of 1,115 units sees a
rental vacancy rate of four percent. Recent data from
the American Community Survey (ACS), indicates a
similar rental vacancy rate at 3.6 percent. Anything
lower than a five percent vacancy rate indicates that
the housing supply is tight, and demand is outpacing
available units. This indicates that meeting demand
for new housing will require additional housing
construction since there is no extra supply within the
existing housing market to take on this demand.
HB 184 is important because it expands AIDEA's mission
statement, allowing the corporation to use their loan
program for the desperately needed construction of new
workforce housing facilities containing five or more
dwelling units. The bill provides a legal definition
of "workforce housing" based on the Department of
Housing and Urban Development's working definition,
which calculates affordability based on the average
median income of an area.
This bill moves us closer to addressing our housing
demands. It is imperative that we create stronger
communities through more housing options. I urge your
support for HB 184.
9:11:38 AM
HONOUR MILLER-AUSTIN, Staff, Alaska State Legislature, on behalf
of Representative Story, prime sponsor, presented the sectional
analysis for HB 184 [included in the committee packet], which
read as follows [original punctuation provided]:
Section 1: Adds a new subsection 7 to AS 44.88.070
which states the purpose of the authority. Providing
means of financing and facilitating the financing of
construction of new workforce housing facilities with
five or more units will now be part of the mission of
AIDEA.
Section 2: Adds a new subsection 33 to AS 44.88.080
stating the powers of the authority. One of the powers
of AIDEA will now be to provide means of financing and
facilitating the financing of construction of new
workforce housing facilities with five or more units.
Section 3: Extends the definition of "development
project" under AS 44.88.900(6) to include workforce
housing facilities with five or more dwelling units,
as defined in the new subsection J of AS
44.88.900(13).
Section 4: Adds a new subsection J to include
workforce housing in the meaning of "project" under AS
44.88.900(13).
Section 5: Adds a new subsection 22 to AS 44.88.900
defining "workforce housing". Workforce housing will
be defined as residential housing that costs the
occupants less than 30 percent of the income of a
household with 120 percent of the area median family
income, as determined by the United States Department
of Housing and Urban Development.
9:13:42 AM
REPRESENTATIVE RUFFRIDGE questioned the meaning of Section 5.
REPRESENTATIVE STORY said it means that housing would be
developed at fair market value for people who are not low income
but are in need of affordable housing.
REPRESENTATIVE RUFFRIDGE calculated that in Juneau where the
median family income is $120,000, the bill would provide
financing from AIDEA for condo units that cost $3,000 per month.
He opined that $3,000 does not sound affordable.
CO-CHAIR HIMSCHOOT said the goal is to provide additional multi-
family workforce housing, not necessarily affordable housing.
9:16:41 AM
STACY BARNES, Director, Governmental Relations & Public Affairs,
Alaska Housing Finance Corporation (AHFC), said affordability
refers to U.S. Department of Housing and Urban Development (HUD)
standards, which are updated on an annual basis. She offered to
follow up with the area median income (AMI) in each community.
In response to a follow up question, she confirmed that AHFC
offers loan programs for single and multi-family housing
developments, but the goal is to enable AIDEA to offer something
similar in recognition of the statewide housing challenge.
9:22:16 AM
REPRESENTATIVE RUFFRIDGE asked whether AIDEA had received
requests for multi-family dwelling loans and whether the
definition of area median family income in the bill would
increase affordability.
BRANDON BREFCZYNSKI, Deputy Director, Alaska Industrial
Development & Export Authority (AIDEA), said no, AIDEA has not
received any commercial housing applications through the bank,
but there have been preliminary talks with municipalities about
financing multi-family units. Nonetheless, ADIEA has the
ability to provide commercial housing development.
REPRESENTATIVE RUFFRIDGE said under his estimation, AIDEA
already has the ability do what is being proposed in HB 184, but
the bill would impose artificial limitations by defining
workforce housing with the income requirements. He asked
whether that is correct.
MR. BREFCZYNSKI agreed that in terms of running a loan through
the definition of workforce housing in the bill, it would be
limiting. He confirmed that AIDEA has the ability to finance a
commercial housing development through its various funds and
programs.
9:28:52 AM
REPRESENTATIVE STORY clarified that AIDEA does have the
authority to provide housing loans, which they did primarily in
the 1980s. They have since stopped providing them. The bill
emphasize the importance of these loans in statute and provides
more direction. She said the key problem is that contractors
are not building affordable housing because it's not affordable
for them. She referred to the Ridgeview housing complex in
Juneau, which was intended to offer affordable housing, but is
no longer considered affordable.
9:30:52 AM
CHRISTINE WOLL, Assembly Member, City and Borough of Juneau
(CBJ), gave invited testimony during the hearing on HB 184. She
stated that affordable housing is the assembly's number one
priority. She discussed the dire nature of the housing crisis
in Juneau, due in part to changing demographics and a lack of
multi-unit dwellings that has resulted in less available
housing. The CBJ put together a housing action plan in 2016 and
has implemented property tax abatement for multi-family
buildings over four units, reduced parking requirements, and
built a number of loan and grants programs in addition to
rewriting the housing code. The city is finally starting to see
the fruits of that effort, she said, with several developments
taking advantage of these opportunities. She concluded that
larger projects do not pencil out without flexible financing
options. She said HB 184 would not solve the housing crisis,
but it would add one more tool to the toolbox.
9:35:25 AM
RICHELLE JOHNSON, Research & Technical Assistance Director,
Center for Economic Development, University of Alaska Anchorage
(UAA), gave invited testimony during the hearing on HB 184. She
observed that housing is one of the top barriers to economic
growth in Alaska, which also impact workforce attraction and
th
retention. Alaska ranks 45 in terms of new housing
construction and new development on multi-family housing has
slowed even more. While there's a clear demand in housing, its
not translating to increased development, which indicates that
nontraditional tools are necessary. She spoke to the tie
between housing and workforce, which impacts the state's
economic health. She agreed that the bill would not solve every
challenge for every community, but it would give them access to
a new source of capital and would help improve the margins on
housing development on the cusp of financial feasibility.
9:38:47 AM
REPRESENTATIVE HOLLAND asked why there is a housing crisis in a
stagnant economy that is experiencing an increase in
outmigration and a growth in nonresident workers. He asked how
the data informs the kind of housing strategies that are needed
and how to make new construction attractive.
MS. JOHNSON reported that that there is a trend in smaller
household sizes across the state, in addition to multi-
generational households without enough available or affordable
housing for the younger generation to move out. Further, many
houses were constructed in the 1970s and 1980s, and the aging
houses are leading to an attrition of available units statewide.
So, while there is a decreasing number of people in Alaska,
there is also a decreasing number of available homes.
CO-CHAIR HIMSCHOOT commented that despite adding three new
neighborhoods in Sitka, there is still a housing shortage, which
is related to people aging in place.
9:42:17 AM
REPRESENTATIVE STORY highlighted the letters of support from the
Alaska Municipal League (AML) and Housing Alaskans, as well as
the zero fiscal note attached to the bill.
REPRESENTATIVE HALL shared that Alaska has a very serious
housing shortage and is in "crisis mode." According to an
Agnew::Beck study, Alaska needs 27,500 new housing units over
the next 10 years. She described the bottleneck taking place
with the housing landscape in Alaska.
9:44:17 AM
REPRESENTATIVE PRAX asked whether there had been input from
bankers, developers, or the real estate industry on HB 184.
REPRESENTATIVE STORY said she had not reached out to developers.
9:46:52 AM
CO-CHAIR HIMSCHOOT announced that HB 184 would be held over.
9:47:07 AM
The committee took a brief at-ease at 9:47 a.m.
HB 13-MUNICIPAL PROPERTY TAX EXEMPTIONS
9:48:36 AM
CO-CHAIR HIMSCHOOT announced that the final order of business
would be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 13, "An Act
relating to optional municipal property tax exemptions for
certain long-term rental units, certain mobile home parks, real
property rented to low-income families, real property owned and
occupied as a permanent place of abode, and real property owned
by first-time homebuyers." [Before the committee, adopted as
the working document on 4/10/25, was the proposed committee
substitute (CS) for SSHB 13, Version 34-LS0194\T, Dunmire,
4/8/25 ("Version T").]
9:48:50 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 1 to Version
T, labeled 34-LS0194\T.3, Dunmire, 4/22/25, which read:
Page 1, line 12:
Delete "31 consecutive days"
Insert "one year"
CO-CHAIR HIMSCHOOT objected.
REPRESENTATIVE RUFFRIDGE explained that Amendment 1 would change
the definition of "long-term rental unit" from a dwelling unit
offered for rent for periods of not less than 31 consecutive
days to one year.
CO-CHAIR HIMSCHOOT asked for input from the bill sponsor.
9:49:54 AM
REPRESENTATIVE ANDREW GRAY, Alaska State Legislature, as prime
sponsor, clarified that the goal is to allow as much flexibility
for municipalities, boroughs, and cities because a long-term
rental may look different in each community. For that reason,
he said he opposed Amendment 1.
CO-CHAIR HIMSCHOOT maintained her objection.
9:51:09 AM
A roll call vote was taken. Representatives Prax and Ruffridge
voted in favor of Amendment 1. Representatives Hall, Holland,
Mears, and Himschoot voted against it. Therefore, Amendment 1
failed by a vote of 2-4.
9:51:34 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 2 to Version
T, labeled 34-LS0194\T.4, Dunmire, 4/22/25, which read:
Page 2, following line 21:
Insert a new subsection to read:
"(ff) A municipality may only adopt an exemption
under (aa) - (ee) of this section after conducting a
fiscal impact study on how tax revenue lost under the
proposed exemption would be addressed without
disproportionately burdening vulnerable homeowners."
CO-CHAIR HIMSCHOOT objected.
9:51:40 AM
REPRESENTATIVE RUFFRIDGE explained that Amendment 2 would add a
new sub-subparagraph (ff) to conduct a fiscal impact study that
shows how lost tax revenue would be made up for before adopting
the proposed exemptions by ordinance.
CO-CHAIR HIMSCHOOT pointed out that in Sitka, the mil rate
cannot be changed without a vote of the people.
9:53:24 AM
REPRESENTATIVE GRAY said he expected municipal governments to
have the fiduciary interest of citizens at heart. He opined
that the proposed amendment would micromanage the bill and said
he opposed Amendment 2.
9:54:45 AM
REPRESENTATIVE PRAX said based on his experience serving on a
municipal assembly, he does not have as much faith in elected
officials. He opined that if assemblies could enact this
without voter approval, there should be tighter sideboards.
CO-CHAIR HIMSCHOOT asked for the definition of "vulnerable
homeowner."
REPRESENTATIVE RUFFRIDGE defined vulnerable homeowner as someone
on the edge of the income limit who qualifies for no exemptions.
9:58:11 AM
A roll call vote was taken. Representatives Prax and Ruffridge
voted in favor of Amendment 2. Representatives Hall, Holland,
Mears, and Himschoot voted against it. Therefore, Amendment 2
failed by a vote of 2-4.
9:58:47 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 3 to Version
T, labeled 34-LS0194\T.1, Dunmire, 4/22/25, which read:
Page 1, line 4, following "buyers":
Insert "; and relating to annual increases in
property assessments"
Page 2, following line 21:
Insert a new bill section to read:
"* Sec. 2. AS 29.45.110 is amended by adding a new
subsection to read:
(f) A municipality may by ordinance limit to
five percent or less the amount by which the assessed
value of real property may be increased over the
previous year's assessed value. An ordinance adopted
under this section must allow the assessor to increase
the value of real property above the percentage limit
established in the ordinance if the increase is based
on an improvement to the real property or information
about the real property that the assessor did not know
at the time of the previous assessment."
CO-CHAIR HIMSCHOOT objected.
9:59:04 AM
REPRESENTATIVE RUFFRIDGE explained that Amendment 3 would allow
municipalities by ordinance to impose a cap on property
assessments to ensure that taxes are not increasing at a rate
that makes homes unaffordable for the vulnerable population.
The proposed amendment would limit the increase to 5 percent, or
less the amount by which the assessed value of real property may
be increased over the previous year's assessed value. It would
allow for incremental growth but not massive spikes of 20-30
percent, for example.
10:00:56 AM
REPRESENTATIVE GRAY stated that the proposed amendment offers an
optional limit by ordinance and shows a great understanding of
the bill while making it better. He said he is grateful for
Amendment 3.
CO-CHAIR MEARS asked whether Representative Ruffridge had
discussed Amendment 3 with any assessors.
REPRESENTATIVE RUFFRIDGE said the proposed amendment would still
allow the assessors to do their job with certain sideboards.
For example, if property values are increasing by 20 percent, it
would have to be a four-year increase at five percent each year
if this ordinance were enacted by the municipality. In response
to a follow up question, he referred to lines 10-12 of Amendment
3, and explained that the assessor could increase the value past
the percentage limit if it's based on an improvement to the real
property or information about the property that the assessor did
not have at the time of the previous assessment.
CO-CHAIR HIMSCHOOT said she liked the amendment but expressed
concerned about how it would play out if the assessment does not
happen annually.
REPRESENTATIVE RUFFRIDGE stated that Amendment 3 seeks to be a
protector of vulnerable homeowners. He shared an example of a
home with an artificially inflated assessed value and said
Amendment 3 would help keep home prices somewhat protected and
help keep vulnerable homeowners protected from large increases
to property tax.
10:06:07 AM
CO-CHAIR MEARS stated that Amendment 3 is too in depth to
support without further discussion.
REPRESENTATIVE HOLLAND expressed concern that property tax value
would no longer match the value of the property. He said the
disconnect between the assessments versus the mil rate versus
the real market value is a step that he's uncomfortable with.
CO-CHAIR HIMSCHOOT asked how Amendment 3 would impact the local
contribution to school districts.
10:08:05 AM
REPRESENTATIVE RUFFRIDGE said the real question is whether the
mil rate had been reduced in Anchorage over the past three
years, as property values have increased dramatically.
REPRESENTATIVE HOLLAND shared his understanding that the
Municipality of Anchorage is subject to a tax cap, and the mil
rate is readjusted to keep the municipality within that limit.
REPRESENTATIVE GRAY responded yes; the tax rate has decreased.
10:09:33 AM
REPRESENTATIVE RUFFRIDGE, in response to Co-Chair Himschoot,
said Amendment 3 would have no impact on the local contribution
to schools. In response to a follow up question, he explained
that the local contribution amount is set by the local
government.
CO-CHAIR HIMSCHOOT shared her understanding that the amount is
based on the assessed value of real property.
REPRESENTATIVE RUFFRIDGE shared his understanding that the
assessed value sets the floor and the ceiling, and there are
very few municipalities that get close to either.
CO-CHAIR HIMSCHOOT stated that she is aware of two that are
funding completely to the cap. She said she would like to see
Amendment 3 as its own bill, adding that she's uncomfortable
adopting it at this time.
10:10:56 AM
REPRESENTATIVE PRAX [moved to adjourn] because the subject is
complicated and requires more time.
10:12:00 AM
A roll call vote was taken. Representatives Prax and Ruffridge
voted in favor of the motion to adjourn. Representatives Hall,
Holland, Mears, and Himschoot voted against it. Therefore, the
motion to adjourn failed by a vote of 2-4.
10:12:20 AM
A roll call vote was taken. Representatives Prax and Ruffridge
voted in favor of Amendment 3. Representatives Holland, Hall,
Mears, and Himschoot voted against it. Therefore, Amendment 3
failed by a vote of 2-4.
10:12:45 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 4 to Version
T, labeled 34-LS0194\T.5, Dunmire, 4/23/25, which read:
Page 1, line 7, following "ordinance":
Insert "approved by the voters"
Page 2, line 6, following "ordinance":
Insert "approved by the voters"
Page 2, line 9, following "ordinance":
Insert "approved by the voters"
Page 2, line 17, following "ordinance":
Insert "approved by the voters"
Page 2, line 20, following "ordinance":
Insert "approved by the voters"
CO-CHAIR HIMSCHOOT objected.
10:12:52 AM
REPRESENTATIVE RUFFRIDGE explained that Amendment 4 would
require that the ordinances proposed in HB 184 be approved by
the voters.
10:14:42 AM
REPRESENTATIVE GRAY said he opposed the amendment. He recalled
that last year, the House voted to add an existing exemption and
to remove a voting requirement, which Representative Ruffridge,
Himschoot, Mears, Prax, and himself, all voted to for. He added
that this has been done before.
10:16:11 AM
A roll call vote was taken. Representatives Prax and Ruffridge
voted in favor of Amendment 4. Representatives Hall, Holland,
Mears, and Himschoot voted against it. Therefore, Amendment 4
failed by a vote of 2-4.
10:16:57 AM
CO-CHAIR MEARS moved to report CSSSHB 13, Version 34-LS0194\T,
Dunmire, 4/8/25, out of committee with individual
recommendations and the accompanying fiscal notes.
REPRESENTATIVE RUFFRIDGE objected.
10:17:15 AM
A roll call vote was taken. Representatives Hall, Holland,
Mears, Himschoot voted in favor of reporting Version T out of
committee. Representatives Prax and Ruffridge voted against it.
Therefore, CSSSHB 13(CRA) was reported out of the House
Community and Regional Affairs Standing Committee by a vote of
4-2.
10:17:47 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 10:17 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AEA - PCE and Rural Presentation to HCRA - Final 4.24.25.pdf |
HCRA 4/24/2025 8:00:00 AM |
Power Cost Equalization |
| HB 184 Sponsor Statement 4.17.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 184 Version A 4.17.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 4/29/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 184 Sectional Analysis 4.17.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 184 Fiscal Note - DCCED-AIDEA-04-18-2025.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 184 Testimony Received by 4.23.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 5/8/2025 8:00:00 AM HCRA 5/13/2025 8:00:00 AM |
HB 184 |
| HB 13 Sponsor Statement version N.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 version A.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 version N (SS HB 13).pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Summary of Changes (version A to N to I).pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Sectional Analysis version N.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Summary of Changes - Version N and Version T 4.9.25.pdf |
HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Work Draft CS - Version T 4.8.25.pdf |
HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Testimony - Received by 4.21.25.pdf |
HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Fiscal Note - DCCED-DCRA 3.21.25.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Additional Documents-Dwelling Unit Definition.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Additional Documents-Federal low-income family definition and Link.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 3/27/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Additional Documents-Anchorage Bill of Rights.pdf |
HCRA 3/25/2025 8:00:00 AM HCRA 4/10/2025 8:00:00 AM HCRA 4/22/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 47 (34-LS0334-A) - Sponsor Statement.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Version A.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Work Draft CS - Version N 4.18.25.pdf |
HCRA 4/24/2025 8:00:00 AM HCRA 4/29/2025 8:00:00 AM |
HB 47 |
| HB 47 (34-LS0334-A) - Sectional Analysis.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Fiscal Note - DOA-OPA 3.7.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Fiscal Note - DOA-PDA 3.7.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Fiscal Note - EED-FSS 3.7.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Fiscal Note - JUD-ACS 3.7.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Fiscal Note - LAW-CJL 3.6.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 - Supporting Document, AI-Generated Child Sexual Abuse Materia....pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 - Research, IWF Report Update (What has Changed...).pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 - Research, IWF Report (How AI is being abused to create child sexual abuse imagery).pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 - Article (Army Soldier Arrested for Using AI to Generate Child).pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 47 Presentation - AI CSAM - Rep. Vance 3.11.25.pdf |
HCRA 3/11/2025 8:00:00 AM HCRA 3/13/2025 8:00:00 AM HCRA 4/24/2025 8:00:00 AM |
HB 47 |
| HB 13 Amendment One - Ruffridge 4.22.25.pdf |
HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Amendment Two - Ruffridge 4.22.25.pdf |
HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Amendment Three - Ruffridge 4.22.25.pdf |
HCRA 4/24/2025 8:00:00 AM |
HB 13 |
| HB 13 Amendment Four - Ruffridge 4.23.25.pdf |
HCRA 4/24/2025 8:00:00 AM |
HB 13 |