Legislature(2007 - 2008)HOUSE FINANCE 519

03/12/2008 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 338 POWER PROJECT FUND/BULK FUEL LOAN FUND TELECONFERENCED
Moved CSHB 338(FIN) Out of Committee
+ HB 356 MUNICIPAL PROPERTY TAX EXEMPTION TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 357 CLAIMS AGAINST REAL ESTATE LICENSEES TELECONFERENCED
Moved Out of Committee
+= HB 414 CRIME VICTIM COMPENSATION FUND TELECONFERENCED
Moved Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       March 12, 2008                                                                                           
                         1:47 p.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:47:45 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative John Harris                                                                                                      
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Eleanor Wolfe, Staff, Representative  Kurt Olson; Mark Davis,                                                                   
Director,  Division of  Corporations, Business,  Professional                                                                   
Licensing,  Department of  Commerce,  Community and  Economic                                                                   
Development;  Dave Feekan,  Alaska  Association of  Realtors;                                                                   
Gene  Duval,  Chair,  Alaska Real  Estate  Commission;  Sarah                                                                   
Fisher-Goad,  Deputy Director  of  Operations, Alaska  Energy                                                                   
Authority,  Department of  Commerce,  Community and  Economic                                                                   
Development;  Chris  Anderson,  Deputy  Director  of  Credit,                                                                   
Alaska Energy  Authority; Del Conrad, CEO, Rural  Alaska Fuel                                                                   
Services; Jane Pierson, Staff, Representative Jay Ramras.                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Susan  Browne,  Administrator,  Violent  Crimes  Compensation                                                                   
Board.                                                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 338    An Act  relating to the power project  fund and the                                                                   
          bulk  fuel  revolving  loan fund;  authorizing  the                                                                   
          Alaska  Energy Authority to  borrow money  from the                                                                   
          power  project  fund for  the  bulk fuel  revolving                                                                   
          loan  fund   and  to  repay  money   borrowed;  and                                                                   
          providing for an effective date.                                                                                      
                                                                                                                                
          CS HB 338 (FIN) was REPORTED out of Committee with                                                                    
          a "do  pass" recommendation  and with  attached new                                                                   
          zero  fiscal note  by the  Department of  Commerce,                                                                   
          Community  and Economic Development and  new fiscal                                                                   
          note by  the Department of Commerce,  Community and                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 356    An Act relating to an exemption from municipal                                                                        
          property  taxes for certain  real property  that is                                                                   
          exempt  from levy and  collection of real  property                                                                   
          taxes  when conveyed by  the federal government  to                                                                   
          implement  the Alaska Native Claims  Settlement Act                                                                   
          or when  conveyed under a land  exchange authorized                                                                   
          by that  Act involving land or an  interest in land                                                                   
          that  is made exempt  from local property  taxes by                                                                   
          that Act; and providing for an effective date.                                                                        
                                                                                                                                
          CS HB 356 (CRA) was REPORTED out of Committee with                                                                    
          a "do  pass" recommendation and with  attached zero                                                                   
          fiscal   note  by  the   Department  of   Commerce,                                                                   
          Community and Economic Development.                                                                                   
                                                                                                                                
HB 357    An Act requiring errors and omissions insurance                                                                       
          for  real  estate  licensees;   renaming  the  real                                                                   
          estate  surety  fund as  the real  estate  recovery                                                                   
          fund and relating to  that fund, and redefining the                                                                   
          procedures  and criteria  used by  the Real  Estate                                                                   
          Commission  to make  an award  from the  fund to  a                                                                   
          person   suffering   a  loss   caused  by   certain                                                                   
          misconduct  of real  estate licensees; requiring  a                                                                   
          real estate  licensee to maintain an  office in the                                                                   
          state; and providing for an effective date.                                                                           
                                                                                                                                
          CS HB 357 (L&C) was REPORTED out of Committee with                                                                    
          a "do  pass" recommendation and with  attached zero                                                                   
          fiscal   note  #1   by   Department  of   Commerce,                                                                   
          Community and Economic  Development and zero fiscal                                                                   
          note  #2 by Department  of Commerce, Community  and                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 414    An Act relating to the crime victim compensation                                                                      
          fund.                                                                                                                 
                                                                                                                                
          HB  414 was REPORTED  out of  Committee with  a "do                                                                   
          pass" recommendation  and with attached zero fiscal                                                                   
          note #1 by the Department of Administration.                                                                          
                                                                                                                                
HOUSE BILL NO. 357                                                                                                            
                                                                                                                                
     An  Act requiring  errors  and omissions  insurance  for                                                                   
     real estate  licensees; renaming the real  estate surety                                                                   
     fund as  the real estate  recovery fund and  relating to                                                                   
     that fund,  and redefining  the procedures  and criteria                                                                   
     used  by the  Real Estate  Commission to  make an  award                                                                   
     from the  fund to  a person suffering  a loss  caused by                                                                   
     certain misconduct  of real estate licensees;  requiring                                                                   
     a  real estate  licensee to  maintain an  office in  the                                                                   
     state; and providing for an effective date.                                                                                
                                                                                                                                
1:49:12 PM                                                                                                                    
                                                                                                                                
ELEANOR WOLFE,  STAFF, REPRESENTATIVE  KURT OLSON  (SPONSOR),                                                                   
informed  the Committee  that HB  357 was  introduced at  the                                                                   
request the  Alaska Association of Realtors.  The legislation                                                                   
is intended to  mandate errors and omissions  (E&O) insurance                                                                   
for  real  estate agents.  The  bill  would also  change  the                                                                   
nature of  the surety fund to  a recovery fund that  would be                                                                   
used if  there is  fraud or deceit.  The E&O insurance  would                                                                   
cover the majority of the complaints  people now have against                                                                   
the surety fund.                                                                                                                
                                                                                                                                
Representative  Kelly  asked if  anyone  was  opposed to  the                                                                   
bill. Ms. Wolfe said there had  not been a lot of opposition.                                                                   
                                                                                                                                
1:52:57 PM                                                                                                                    
                                                                                                                                
MARK  DAVIS, DIRECTOR,  DIVISION  OF CORPORATIONS,  BUSINESS,                                                                   
PROFESSIONAL  LICENSING,  DEPARTMENT OF  COMMERCE,  COMMUNITY                                                                   
AND  ECONOMIC  DEVELOPMENT,  explained  that  HB  357  is  in                                                                   
response  to a  2007  legislative audit  of  the Alaska  Real                                                                   
Estate Commission. The audit recommended  that the Commission                                                                   
be continued and recommended changes  in the surety fund. The                                                                   
fund has had difficulty providing  consumers with protection.                                                                   
Other states have  moved towards the mandatory  E&O insurance                                                                   
proposed  in  HB  357.  The  policy   would  provide  uniform                                                                   
protection  for  all realtors.  The  bill  does not  go  into                                                                   
effect if a reasonable policy cannot be found.                                                                                  
                                                                                                                                
Representative   Thomas  noticed   that  the  bill   requires                                                                   
realtors  obtaining a  real estate license  to have  physical                                                                   
offices in the state and asked if that had been a problem.                                                                      
                                                                                                                                
DAVE FEEKAN,  ALASKA ASSOCIATION  OF REALTORS, clarified  the                                                                   
reason  for changing  the surety  fund. The  fund was put  in                                                                   
place in 1974 in place of bonding.  The fund is a self-funded                                                                   
program  that covers  fraud, deceit,  misrepresentation,  and                                                                   
conversion  of trust. The  fund has  $250,000 to $500,000  by                                                                   
statute, but has been declining.  In the past two years there                                                                   
have  been an  inordinate number  of  frivolous claims  filed                                                                   
with   resulting   high   administrative   costs.   Mandatory                                                                   
insurance would deal with some of the claims.                                                                                   
                                                                                                                                
1:58:07 PM                                                                                                                    
                                                                                                                                
Mr. Feekan said the goal of the  language is not restraint of                                                                   
business  but supervision  and record-keeping.  A person  can                                                                   
get a real estate license after  only a forty-hour course and                                                                   
passing a test.  This person then handles one  of the largest                                                                   
financial  transactions  of  most people's  lives.  The  bill                                                                   
requires the licensee  to have an office so that  they can be                                                                   
supervised and keep the required records.                                                                                       
                                                                                                                                
Representative Crawford asked  the difference in cost for E&O                                                                   
insurance  and paying into  the surety  fund. Mr. Feekan  did                                                                   
not think  the surety expense  would change from  its current                                                                   
cost of $30 every  two years. Judging from the  cost in other                                                                   
states, the  insurance cost  would be approximately  $150-200                                                                   
per  individual (as  part of  a group  policy), for  $100,000                                                                   
coverage/$1,000  deductible. The majority  of E&O  claims are                                                                   
less than $10,000.                                                                                                              
                                                                                                                                
2:02:49 PM                                                                                                                    
                                                                                                                                
Representative Gara turned to  page 9, line 12, and asked why                                                                   
the  word "misrepresentation"  was  taken out.  He wanted  to                                                                   
make  sure  the legislation  was  not  making it  harder  for                                                                   
someone  who had been  defrauded  by a real  estate agent  to                                                                   
recover.  Mr. Feekan  did  not  know why  it  was taken  out.                                                                   
Representative Gara asked if he  would be comfortable leaving                                                                   
the word  in. Mr. Feekan said  the industry would not  have a                                                                   
problem  with  that.  Ms.  Wolfe  said  she  would  get  more                                                                   
information.                                                                                                                    
                                                                                                                                
GENE DUVAL,  CHAIR, ALASKA REAL  ESTATE COMMISSION,  spoke in                                                                   
support  of the  bill. The  Commission  believes the  changes                                                                   
will  better protect  the public  and  close loopholes.  They                                                                   
thought  the  requirement  of  an office  in  the  state  was                                                                   
important because  of the internet  realtors, which  are hard                                                                   
to supervise.                                                                                                                   
                                                                                                                                
2:05:55 PM                                                                                                                    
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Vice-Chair Stoltze  MOVED to report  HB 357 out  of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
CS HB  357 (L&C)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation  and with  attached zero fiscal  note #1                                                                   
by   Department   of   Commerce,   Community   and   Economic                                                                   
Development  and  zero  fiscal   note  #2  by  Department  of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
HOUSE BILL NO. 338                                                                                                            
                                                                                                                                
     An Act relating  to the power project fund  and the bulk                                                                   
     fuel revolving loan fund;  authorizing the Alaska Energy                                                                   
     Authority  to borrow money  from the power  project fund                                                                   
     for the bulk fuel revolving loan fund and to repay                                                                         
     money borrowed; and providing for an effective date.                                                                       
                                                                                                                                
Vice-Chair  Stoltze MOVED  to ADOPT  work draft  25-LS1332\E,                                                                   
Kane,  2/22/08,  as  the  version  of  the  bill  before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
2:10:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MARY NELSON, SPONSOR,  explained that the bill                                                                   
would allow the Alaska Energy  Authority (AEA) to borrow from                                                                   
the  Power  Project Fund  (PPF)  for  use  in the  Bulk  Fuel                                                                   
Revolving Loan Fund  (BFRLF). The PPF has a  balance of $10.8                                                                   
million.   Due  to   the  ever-increasing   cost  of   energy                                                                   
throughout the  state, especially  in remote rural  villages,                                                                   
the ability of  AEA to offer loans has been  hindered because                                                                   
larger loans are required to buy the same quantity of fuel.                                                                     
                                                                                                                                
Representative  Nelson said that  Rural Alaska Fuel  Services                                                                   
is often  asked to  provide loans  to communities that  would                                                                   
otherwise be unable  to get loans. The payback  rate is 100%.                                                                   
Although the  bridge loan program  has been functioning  well                                                                   
since  2004,  HB  338  is  necessary   because  there  is  no                                                                   
statutory  authorization  for  AEA to  operate  the  program.                                                                   
Communities have  struggled to purchase bulk  fuel because of                                                                   
significant decreases  in or  total elimination  of municipal                                                                   
assistance and  revenue sharing.  The loans help  communities                                                                   
purchase  fuel  at the  beginning  of  the cold  season.  The                                                                   
fiscal  note  is  small and  for  contractual  services.  The                                                                   
Department  of Commerce, Community  and Economic  Development                                                                   
is optimistic that the demand  for the program will fall with                                                                   
the  reinstatement of  state  revenue sharing  (Statement  on                                                                   
File).                                                                                                                          
                                                                                                                                
2:14:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer opened public testimony.                                                                                         
                                                                                                                                
SARAH  FISHER-GOAD,  DEPUTY DIRECTOR  OF  OPERATIONS,  ALASKA                                                                   
ENERGY  AUTHORITY,  DEPARTMENT  OF  COMMERCE,  COMMUNITY  AND                                                                   
ECONOMIC  DEVELOPMENT  (DCCED),  said the  BFRLF  provides  a                                                                   
financing  source  for  communities   of  2,000  or  less  to                                                                   
purchase an annual supply of fuel.  She said AEA only commits                                                                   
to  loans  based  on cash  available.  The  bill  provides  a                                                                   
backstop  source of  funds to  allow AEA to  better meet  the                                                                   
needs of borrowers. There is an  intense demand and repayment                                                                   
cycle.  The bill limits  the lending  ability by  restricting                                                                   
the amount based on the June 30  cash balance for the PPF, to                                                                   
$2 million or 10% of the available  cash balance. The current                                                                   
cash  balance  of the  PPF  is approximately  $10.8  million,                                                                   
limiting loans  to approximately  $1 million. If  the balance                                                                   
goes  below  $5   million,  the  BFRLF  would   be  suspended                                                                   
(Statement on File).                                                                                                            
                                                                                                                                
Representative Thomas asked if  AEA can garnish a community's                                                                   
revenue sharing  if that community has outstanding  debt. Ms.                                                                   
Fisher-Goad  answered that  although AEA  has the ability  to                                                                   
collateralize  the loans  and request  payments, a  community                                                                   
would not eligible for a new loan  until the balance was paid                                                                   
off.                                                                                                                            
                                                                                                                                
Representative  Thomas  pointed out  that  the history  sheet                                                                   
(Copy on File)  shows several communities with  three or four                                                                   
years of unpaid balance.                                                                                                        
                                                                                                                                
Representative Kelly asked if  the interest rate changed over                                                                   
time. Ms. Fisher-Goad  replied that the first  time an entity                                                                   
borrows  the interest  rate is  zero percent.  The rate  then                                                                   
changes to the municipal rate of approximately 4.5%.                                                                            
                                                                                                                                
CHRIS  ANDERSON, DEPUTY  DIRECTOR  OF CREDIT,  ALASKA  ENERGY                                                                   
AUTHORITY, added  that delinquencies are averaging  less than                                                                   
3% and tend to be seasonal.                                                                                                     
                                                                                                                                
2:22:25 PM                                                                                                                    
                                                                                                                                
DEL  CONRAD,  CEO,  RURAL  ALASKA  FUEL  SERVICES,  has  been                                                                   
managing  the Bulk  Fuel  Bridge Loan  Program  on behalf  of                                                                   
DCCED since  its inception. The  bridge loan program  was set                                                                   
up with a $500,000  grant from the Denali Commission  in 2004                                                                   
when the  first price shock  hit rural Alaska.  A significant                                                                   
number of communities had been  turned down for loans by AEA.                                                                   
The Denali Commission  made a grant to the  State. The State,                                                                   
in   conjunction   with   the   Alaska   Village   Electrical                                                                   
Cooperative  (AVEC) and  Rural Alaska  Fuel Services  (RAFS),                                                                   
set up a loan program which has been run by RAFS.                                                                               
                                                                                                                                
Mr.  Conrad  explained  that  in  order  to  be  eligible,  a                                                                   
community or borrowing  entity has to be turned  down by AEA.                                                                   
This  could happen  for  a variety  of  reasons,  such as  an                                                                   
outstanding  debt or an  IRS lien. At  that point  the entity                                                                   
becomes  eligible  for  the  bridge   loan  program.  If  the                                                                   
community repays  on a  timely basis, they  can get  the loan                                                                   
for another two  years at zero percent interest.  The goal is                                                                   
to  help high  risk,  financially  unsustainable  communities                                                                   
move  back into  the regular  borrowing  process. About  $6.5                                                                   
million has been loaned over the past four years.                                                                               
                                                                                                                                
2:27:38 PM                                                                                                                    
                                                                                                                                
Representative Kelly asked if  Mr. Conrad functions primarily                                                                   
as a banker  in relation to the program. Mr.  Conrad answered                                                                   
that  related  to  the  fuel provision,  he  is  primarily  a                                                                   
banker. Related  to the  bridge loan, he  is part  banker and                                                                   
part consultant.  He meets with community  administrators and                                                                   
helps  them  sort   through  costs.  The  largest   issue  is                                                                   
typically that a  community will keep prices too  low and not                                                                   
enforce  collections in  an attempt  to  help its  residents.                                                                   
Representative Kelly  asked if the responsibility  stays with                                                                   
the utility. Mr.  Conrad said yes, but added  that he assists                                                                   
the community in problem-solving.                                                                                               
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Vice-Chair Stoltze  MOVED to  report CS HB  338 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  338 (FIN)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation  and with attached new  zero fiscal note                                                                   
by  the  Department  of  Commerce,   Community  and  Economic                                                                   
Development  and  new  fiscal   note  by  the  Department  of                                                                   
Commerce, Community and Economic Development.                                                                                   
                                                                                                                                
2:31:33 PM                                                                                                                    
                                                                                                                                
HOUSE BILL NO. 414                                                                                                            
                                                                                                                                
     An Act relating to the crime victim compensation fund.                                                                     
                                                                                                                                
JANE  PIERSON, STAFF,  REPRESENTATIVE  JAY RAMRAS,  explained                                                                   
that  HB  414 relates  to  the  Violent  Crimes  Compensation                                                                   
Board,  established under  statute in  1972 to help  mitigate                                                                   
damages  and  financial  hardships  suffered  by  victims  of                                                                   
violent  crime.  The  Board provides  compensation  to  cover                                                                   
reasonable  costs such  as medical  and counseling  expenses,                                                                   
lost  income,  and  relocation  costs. Most  of  the  Board's                                                                   
funding comes from Permanent Fund  Dividend (PFD) monies that                                                                   
are   made  available   through   ineligibility  of   certain                                                                   
criminals. Every  year the  Board generates revenues  through                                                                   
provider refunds,  inmate salaries, restitution  payments and                                                                   
other payments.  The revenue  is deposited  into the  General                                                                   
Fund.  Between   1996  and   2006,  these  revenues   totaled                                                                   
$570,000. Some of  the funds were appropriated  back into the                                                                   
Board in years when the PFD and  federal grant monies did not                                                                   
cover expenditures (Statement on File).                                                                                         
                                                                                                                                
Ms.  Pierson pointed  out that  HB  414 would  create a  non-                                                                   
general fund  program definition  for the Board,  which would                                                                   
generate more federal funds.                                                                                                    
                                                                                                                                
2:35:16 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze spoke to the dedication of the Board.                                                                        
                                                                                                                                
SUSAN  BROWNE,  ADMINISTRATOR,  VIOLENT  CRIMES  COMPENSATION                                                                   
BOARD   (Testified   via   teleconference),   explained   the                                                                   
functions of the Board. She has  personally viewed and worked                                                                   
many thousands of cases.                                                                                                        
                                                                                                                                
PUBLIC TESTIMONY CLOSED.                                                                                                        
                                                                                                                                
Representative  Kelly asked for  clarification regarding  the                                                                   
fund.  Ms. Browne  thought  the  account could  become  self-                                                                   
sustaining.                                                                                                                     
                                                                                                                                
2:39:26 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referred to the zero fiscal note.                                                                                
                                                                                                                                
Representative  Hawker stated for  the record his  discomfort                                                                   
with designated funds. Representative  Kelly agreed. Co-Chair                                                                   
Meyer  acknowledged the  designated fund  status but  thought                                                                   
the cause worthy.  Representative Gara thought  the Board was                                                                   
different  than   other  dedicated   funds  since   they  are                                                                   
statutorily  mandated  to  pay  compensation  to  victims  of                                                                   
violent crimes.                                                                                                                 
                                                                                                                                
2:43:21 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  MOVED to report  HB 414 out  of Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
HB  414  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation and  with attached zero fiscal note  #1 by the                                                                   
Department of Administration.                                                                                                   
                                                                                                                                
HOUSE BILL NO. 356                                                                                                            
                                                                                                                                
     An Act relating to an exemption  from municipal property                                                                   
     taxes  for certain  real  property that  is exempt  from                                                                   
     levy  and   collection  of  real  property   taxes  when                                                                   
     conveyed  by the  federal  government  to implement  the                                                                   
     Alaska  Native Claims  Settlement Act  or when  conveyed                                                                   
     under a land  exchange authorized by that  Act involving                                                                   
     land or  an interest  in land that  is made  exempt from                                                                   
     local property  taxes by that Act; and  providing for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
Vice-Chair   Stoltze,  Sponsor,   introduced   the  bill   as                                                                   
expanding  the  list  of  property   that  is  exempted  from                                                                   
municipal  taxation   to  include  property  that   has  been                                                                   
conveyed under  the Alaska Native Claims Settlement  Act. The                                                                   
legislation will  provide benefits for all  municipalities in                                                                   
Alaska  who wish  to enter  into land  exchanges with  Native                                                                   
villages and regional corporations.  Currently, land a Native                                                                   
corporation receives  in an exchange with a  municipality may                                                                   
not be exempt.                                                                                                                  
                                                                                                                                
2:47:35 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  clarified  that the  municipality  would                                                                   
have to want to do the land trade,  in response to a question                                                                   
by Representative Kelly.                                                                                                        
                                                                                                                                
Representative  Hawker   commented  that  the   bill  is  re-                                                                   
affirming the over-riding federal  statute and state statute.                                                                   
He  was curious  if municipalities  could tax  land that  was                                                                   
exempt  by federal  statute. Vice-Chair  Stoltze thought  the                                                                   
bill was affirming the intent.                                                                                                  
                                                                                                                                
2:49:48 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer referred to fiscal notes.                                                                                        
                                                                                                                                
Co-Chair Chenault  MOVED to  report HB  356 out of  Committee                                                                   
with  individual recommendations  and  with the  accompanying                                                                   
fiscal notes.  There being NO OBJECTION, it was so ordered.                                                                     
                                                                                                                                
CS HB  356 (CRA)  was REPORTED  out of  Committee with  a "do                                                                   
pass" recommendation  and with  attached zero fiscal  note by                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:51 PM.                                                                                           
                                                                                                                                
                                                                                                                                

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