Legislature(2005 - 2006)CAPITOL 124

03/31/2005 01:00 PM House MILITARY & VETERANS' AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 208 STATE VETERANS' CEMETERY TELECONFERENCED
Moved CSHB 208(MLV) Out of Committee
*+ HB 212 PROPERTY TAX EXEMPTIONS FOR SENIORS/VETS TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
   HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS                                                                  
                         March 31, 2005                                                                                         
                           1:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Lynn, Chair                                                                                                  
Representative Nancy Dahlstrom                                                                                                  
Representative Jim Elkins                                                                                                       
Representative Bill Thomas                                                                                                      
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lesil McGuire                                                                                                    
Representative Sharon Cissna                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 208                                                                                                              
"An  Act authorizing  the Department  of  Military and  Veterans'                                                               
Affairs to establish and maintain  an Alaskan veterans' cemetery;                                                               
and  establishing  the  Alaska veterans'  cemetery  fund  in  the                                                               
general fund."                                                                                                                  
                                                                                                                                
     - MOVED CSHB 208(MLV) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 212                                                                                                              
"An Act relating to exemptions from municipal property taxes for                                                                
certain primary residences; and providing for an effective                                                                      
date."                                                                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 208                                                                                                                  
SHORT TITLE: STATE VETERANS' CEMETERY                                                                                           
SPONSOR(S): REPRESENTATIVE(S) GUTTENBERG                                                                                        
                                                                                                                                
03/07/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/07/05       (H)       MLV, STA, FIN                                                                                          
03/31/05       (H)       MLV AT 1:00 PM CAPITOL 124                                                                             
                                                                                                                                
BILL: HB 212                                                                                                                  
SHORT TITLE: PROPERTY TAX EXEMPTIONS FOR SENIORS/VETS                                                                           
SPONSOR(S): REPRESENTATIVE(S) THOMAS                                                                                            
                                                                                                                                
03/09/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/09/05       (H)       MLV, CRA                                                                                               
03/31/05       (H)       MLV AT 1:00 PM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DANIELLE BROWN, Staff                                                                                                           
to Representative David Guttenberg                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 208 on behalf of                                                                              
Representative  Guttenberg, sponsor.                                                                                            
                                                                                                                                
REPRESENTATIVE DAVID GUTTENBERG                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 208.                                                                            
                                                                                                                                
JOYCE BROWNLOW                                                                                                                  
Fairbanks Elks Lodge                                                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Urged passage of HB 208.                                                                                   
                                                                                                                                
JOYCE ROETHLER                                                                                                                  
AMVETS, Unit 11;                                                                                                                
American Legion Auxiliary;                                                                                                      
VFW 3629 Auxiliary                                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  During testimony of HB 208, emphasized the                                                                 
importance of taking care of all veterans.                                                                                      
                                                                                                                                
BENNO CLEVELAND, President                                                                                                      
Alaska Native Veterans Association;                                                                                             
Commander, the Military Order of Purple Heart - Chapter 675                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 208.                                                                            
                                                                                                                                
JIMMY LECROY, Commander                                                                                                         
American Legion - Post 11                                                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Related that Post 11 unanimously supports                                                                  
HB 208.                                                                                                                         
                                                                                                                                
DANA NACHTRIEB                                                                                                                  
Marine Corps League - Detachment 674;                                                                                           
Veterans of Foreign War - Chapter 3629                                                                                          
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:   Related  that everyone  with  whom he  has                                                               
spoken is in favor of HB 208.                                                                                                   
                                                                                                                                
GLENN HACKNEY                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 208.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR BOB  LYNN called  the House  Special Committee  on Military                                                             
and   Veterans'  Affairs   meeting  to   order  at   1:03:59  PM.                                                             
Representatives Elkins, Gruenberg, Thomas,  and Lynn were present                                                               
at the  call to order.   Representative Dahlstrom arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
HB 208-STATE VETERANS' CEMETERY                                                                                               
                                                                                                                                
CHAIR LYNN  announced that the  first order of business  would be                                                               
HOUSE  BILL  NO.  208  "An  Act  authorizing  the  Department  of                                                               
Military  and  Veterans' Affairs  to  establish  and maintain  an                                                               
Alaskan   veterans'  cemetery;   and   establishing  the   Alaska                                                               
veterans' cemetery fund in the general fund."                                                                                   
                                                                                                                                
1:05:05 PM                                                                                                                    
                                                                                                                                
DANIELLE BROWN, Staff to  Representative David Guttenberg, Alaska                                                               
State Legislature,  presented HB 208 on  behalf of Representative                                                               
Guttenberg,  sponsor.    She  explained  that  HB  208  seeks  to                                                               
authorize the  Department of Military &  Veterans' Affairs (DMVA)                                                               
to  establish and  maintain  a state  veterans'  cemetery in  the                                                               
Interior.   The  DMVA  would  apply for  a  grant  from the  U.S.                                                               
Department  of Veterans  Administration  (VA).   The grant  could                                                               
provide  up  to 100  percent  of  the design,  construction,  and                                                               
operating  equipment  [costs] for  the  proposed  cemetery.   Ms.                                                               
Brown  relayed  that  she  has  been told  by  the  VA  that  the                                                               
construction of the cemetery would cost $3.3 - $4 million.                                                                      
                                                                                                                                
MS. BROWN informed  the committee that there  are 11,164 veterans                                                               
in the Fairbanks area and  three adjoining communities.  The VA's                                                               
long-term  goal is  to provide  operational veterans'  cemeteries                                                               
[within] a 75-mile  radius [of 90 percent of the  veterans in the                                                               
country].    She  pointed  out that  [from  Fairbanks]  the  next                                                               
closest veterans'  cemetery is in  Anchorage, which is  350 miles                                                               
away.   Ms. Brown  further informed the  committee that  about 40                                                               
percent of  families in  Fairbanks have a  veteran in  the family                                                               
and  16   percent  have  one   female  veteran  in   the  family.                                                               
Therefore, Fairbanks  would qualify for  a grant through  the VA,                                                               
she stated.                                                                                                                     
                                                                                                                                
1:08:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMAS directed attention  to page 2, lines 23-24,                                                               
of  HB 208,  and  inquired as  to why  the  cemetery would  serve                                                               
spouses and eligible dependents of Alaska veterans.                                                                             
                                                                                                                                
REPRESENTATIVE  DAVID   GUTTENBERG,  Alaska   State  Legislature,                                                               
sponsor,  related  his   understanding  that  the  aforementioned                                                               
language is the [VA's] eligibility [requirements].                                                                              
                                                                                                                                
MS.  BROWN  explained  that veterans  receive  a  [federal]  plot                                                               
allowance of  $300 and "within  that the spouses are  eligible to                                                               
be  buried  in the  national  cemeteries  as  well as  the  state                                                               
cemeteries."                                                                                                                    
                                                                                                                                
CHAIR LYNN said that's correct,  adding that both his parents and                                                               
grandparents, service members and  nonservice members, are buried                                                               
in a military cemetery.                                                                                                         
                                                                                                                                
REPRESENTATIVE THOMAS  said he was  thinking about  Arlington and                                                               
Sitka cemeteries that are for only veterans.                                                                                    
                                                                                                                                
MS.  BROWN  said  that  [spouses  are allowed  to  be  buried  in                                                               
Arlington National Cemetery].  She  explained that the crypts are                                                               
two persons  stacked on top of  each other and usually  there are                                                               
600 crypts per acre.  She  indicated that [spouses are allowed to                                                               
be buried] in the veterans' cemetery in Sitka as well.                                                                          
                                                                                                                                
REPRESENTATIVE ELKINS  expressed concern  that the  federal grant                                                               
program may  award the state up  to 100 percent [for  the cost of                                                               
the  cemetery]  because the  "may"  language  provides a  lot  of                                                               
latitude.    Therefore,   he  expressed  the  need   for  a  more                                                               
definitive federal contribution to be specified.                                                                                
                                                                                                                                
REPRESENTATIVE  GUTTENBERG stated  that  he  didn't believe  this                                                               
legislation would determine what  the federal government will do.                                                               
The  state  will  have  to  apply  for  the  loan  and  see  what                                                               
percentage  the federal  government provides.   Furthermore,  the                                                               
state isn't delineating  a certain plot of land  because the land                                                               
could be donated.                                                                                                               
                                                                                                                                
REPRESENTATIVE ELKINS  highlighted that  there are no  letters of                                                               
support from  any of  the veterans'  organizations in  the state.                                                               
He  suggested informing  these organizations  in order  to obtain                                                               
letters of support.                                                                                                             
                                                                                                                                
MS. BROWN pointed out that  there are individuals from the Alaska                                                               
Veterans   Advisory  Committee,   the   Alaska  Native   Veterans                                                               
Association, the American Legion,  the Veterans' of Foreign Wars,                                                               
the  Elks  Club,  the  Disabled   American  Veterans  (DAV),  the                                                               
Military  Order of  Purple Hearts,  and  the Fairbanks  Veterans'                                                               
center already support this and are willing to testify.                                                                         
                                                                                                                                
1:13:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  said the impetus for  this legislation                                                               
is the  wife of  a friend who  was in the  military and  had been                                                               
working on this matter.                                                                                                         
                                                                                                                                
REPRESENTATIVE  THOMAS  inquired  as  to  the  definition  of  an                                                               
"Alaska veteran".                                                                                                               
                                                                                                                                
REPRESENTATIVE GUTTENBERG  said the  legislation doesn't  seek to                                                               
define  anything  new because  eligibility  is  based on  federal                                                               
requirements.  In fact, he  opined that an "Alaska veteran" could                                                               
be  a  veteran   who,  while  visiting  Alaska,   dies  and  it's                                                               
determined  that it  was  that  veteran's wish  to  be buried  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG noted  that the  committee packet  does                                                               
include a resolution  from the North Star  Borough supporting the                                                               
cemetery as well as a hand-printed letter of support.                                                                           
                                                                                                                                
1:16:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said he  supports  HB  208.   He  then                                                               
directed attention to  page 2, lines 2-3, where  the language now                                                               
specifies that  [the balance in  the account for  special request                                                               
license plates] in excess of the  issuing cost is now diverted to                                                               
the  cemetery fund  rather than  for  programs benefiting  Alaska                                                               
veterans.  Therefore, he suggested  keeping the language "for the                                                               
support of  programs benefiting Alaska  veterans" and  adding the                                                               
language "and" so that the  excess funds from the special request                                                               
license  plates could  go to  either support  programs benefiting                                                               
Alaska veterans or the Alaska veterans' cemetery fund.                                                                          
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  said  that  would  be  an  acceptable                                                               
change.                                                                                                                         
                                                                                                                                
REPRESENTATIVE   GRUENBERG  moved   that   the  committee   adopt                                                               
Conceptual Amendment 1,  such that the language on  page 2, lines                                                               
1-3, would read as follows:   "be appropriated by the legislature                                                               
for the  support of  programs benefiting  Alaska veterans  and to                                                               
the Alaska veterans' cemetery fund created under AS 37.05.590".                                                                 
                                                                                                                                
MS. BROWN informed the committee  that this particular aspect was                                                               
created  with  Senate  Bill  146  [from  the  23rd  Alaska  State                                                               
Legislature].   To date  the money,  in the  amount of  $800, has                                                               
just  entered the  general  fund.   Therefore,  if no  particular                                                               
veterans' association requests  these funds, it is  placed in the                                                               
general fund.                                                                                                                   
                                                                                                                                
REPRESENTATIVE GRUENBERG  refuted Ms. Brown's  understanding, and                                                               
clarified  that   constitutionally  funds  can't   be  dedicated.                                                               
Therefore,  funds  are  placed  in   the  general  fund  and  the                                                               
legislature appropriates  the funds.   He further  explained that                                                               
this is a separate accounting  concept.  Representative Gruenberg                                                               
said  that his  amendment will  make  it clear  that legally  the                                                               
funds   can  be   appropriated  for   either  of   the  specified                                                               
[programs], although  ultimately the  funds will go  wherever the                                                               
appropriation says it goes.                                                                                                     
                                                                                                                                
CHAIR LYNN,  upon determining there  was no  objection, announced                                                               
that Conceptual Amendment 1 was adopted.                                                                                        
                                                                                                                                
REPRESENTATIVE DAHLSTROM  related her  understanding that  one of                                                               
the commanding  officers at  Fort Richardson  Air Force  Base had                                                               
sent a letter in support of HB 208.   However, she had not seen a                                                               
copy  of that  letter.   Representative Dahlstrom  said that  she                                                               
supports this  idea, but she  wanted to be sure  her constituents                                                               
are taken care of.                                                                                                              
                                                                                                                                
MS. BROWN said  that she has correspondence with  the director of                                                               
the  national cemeteries  in the  state, but  cannot pass  it out                                                               
until it passes through the proper  channels of the military.  In                                                               
further  response to  Representative  Dahlstrom,  Ms. Brown  said                                                               
that  the   correspondence  states   that  the   Fort  Richardson                                                               
[cemetery]  will be  full in  2025 and  the national  cemetery in                                                               
Sitka will  be full in 2012.   Furthermore, there is  no conflict                                                               
with  regard  to  the  locations  being  Anchorage  or  Fairbanks                                                               
because one  can't predict  where an individual  will want  to be                                                               
buried.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  if  it would  be appropriate  to                                                               
seek the  expansion of the  other two cemeteries,  especially the                                                               
cemetery at Fort Richardson.                                                                                                    
                                                                                                                                
CHAIR LYNN pointed out that  the land surrounding Fort Richardson                                                               
is federal land,  and then questioned what the state  can do with                                                               
federal land.                                                                                                                   
                                                                                                                                
1:23:38 PM                                                                                                                    
                                                                                                                                
JOYCE BROWNLOW, Fairbanks Elks Lodge,  testified in support of HB
208.  She  informed the committee that over  11,000 veterans live                                                               
in  the  Fairbanks  North  Star  Borough.   She  noted  that  she                                                               
recently attended  a meeting discussing the  formation of project                                                               
partnership,  which provides  area  businesses and  organizations                                                               
the opportunity  to support military  members and  their families                                                               
during the  upcoming deployment.   This partnership,  she opined,                                                               
will show appreciation  to area soldiers and  bring the community                                                               
together to help  those family members left behind.   She further                                                               
opined  that  this   project  will  be  fully   embraced  by  the                                                               
[Fairbanks] community.                                                                                                          
                                                                                                                                
MS.  BROWNLOW  turned  to  the   veterans  now  residing  in  the                                                               
[Fairbanks]  community  who  she  said deserve  attention  and  a                                                               
respectful  and  honorable cemetery.    Ms.  Brownlow noted  that                                                               
although the cemetery will be  financed by a grant, about $80,000                                                               
will be financed by  the state as set forth in HB  208.  She then                                                               
informed  the committee  that  the VA  has  estimated 112  deaths                                                               
annually  in the  area,  and therefore  Birch  Hill cemetery  may                                                               
reach its capacity  within a year.  Ms. Brownlow  said that since                                                               
Alaska has  more residents in  the military than any  other state                                                               
and Fairbanks  North Star Borough  has over 11,000  veterans, the                                                               
Interior would  greatly benefit from  a veterans' cemetery.   Ms.                                                               
Brownlow concluded by urging the passage of HB 208.                                                                             
                                                                                                                                
1:26:19 PM                                                                                                                    
                                                                                                                                
JOYCE ROETHLER,  AMVETS, Unit 11; American  Legion Auxiliary; VFW                                                               
3629  Auxiliary, related  the difficulty  with laying  to rest  a                                                               
veteran in  a location that is  far from his or  her residence or                                                               
family's  residence,  but she  highlighted  the  importance of  a                                                               
family being at the internment and  being able to visit the site.                                                               
Gaining access to the Fort  Richardson cemetery, which is located                                                               
on the  base, has proven  to be problematic after  [the terrorist                                                               
attacks  of  September  11,  2001].   Those  without  a  military                                                               
identification  card or  those who  aren't  civil servants,  have                                                               
great difficulty  obtaining the ability to  go on the base.   Ms.                                                               
Roethler highlighted  that there  are many homeless  veterans and                                                               
veterans who  live in the  Bush, all  of which are  veterans with                                                               
the same rights  regarding their burial options.   However, there                                                               
are extreme  limitations regarding where veterans  can be buried,                                                               
not  to mention  the spouses  who want  to be  buried along  side                                                               
them.  Ms.  Roethler emphasized the importance of  taking care of                                                               
living veterans as well as those veterans who have passed on.                                                                   
                                                                                                                                
1:31:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM  acknowledged that since  [the terrorist                                                               
attacks of  September 11, 2001] security  measures have increased                                                               
at Fort Richardson.  She offered  to help those who have problems                                                               
entering the base through the process.                                                                                          
                                                                                                                                
CHAIR  LYNN  noted that  even  with  base identification,  it  is                                                               
burdensome to go through the process to enter the base.                                                                         
                                                                                                                                
1:32:25 PM                                                                                                                    
                                                                                                                                
BENNO CLEVELAND,  President, Alaska Native  Veterans Association;                                                               
Commander, the  Military Order  of Purple  Hearts -  Chapter 675,                                                               
began  by relating  support for  HB  208.   Mr. Cleveland  echoed                                                               
earlier  testimony  regarding  the  number  of  veterans  in  the                                                               
Fairbanks  North Star  Borough  and  the lack  of  space [in  the                                                               
existing]  cemeteries.   Mr.  Cleveland  expressed  the need  for                                                               
there to be  a respectful cemetery where veterans can  be laid to                                                               
rest.     He  then  reviewed   the  number  of  members   in  the                                                               
organizations he is representing.                                                                                               
                                                                                                                                
1:36:03 PM                                                                                                                    
                                                                                                                                
JIMMY LECROY, Commander, American Legion  - Post 11, related that                                                               
Post 11  unanimously supports  HB 208.   Furthermore,  he assured                                                               
the  committee that  there  will be  a  resolution from  Alaska's                                                               
American Legion in support of this legislation.                                                                                 
                                                                                                                                
1:37:32 PM                                                                                                                    
                                                                                                                                
DANA NACHTRIEB,  Marine Corps League  - Detachment  674; Veterans                                                               
of Foreign War - Chapter 3629,  said everyone he has talked to is                                                               
in favor  of HB 208.   He highlighted  the long distance  many of                                                               
those  in the  Interior have  to  travel to  visit the  veterans'                                                               
cemeteries.   He  highlighted that  veterans'  cemeteries in  the                                                               
Interior have families visiting daily.                                                                                          
                                                                                                                                
1:38:51 PM                                                                                                                    
                                                                                                                                
GLENN HACKNEY  began his testimony  by characterizing  the figure                                                               
of   11,000  veterans   in  the   Fairbanks  area   as  a   gross                                                               
understatement.   Mr. Hackney then encouraged  the legislature to                                                               
pass  HB  208,  which  he   viewed  as  an  opportunity  for  the                                                               
legislature  to do  something nonpartisan.   He  highlighted that                                                               
the  blood spilled  for this  country was  from citizens  of this                                                               
country  and  those  citizens should  be  recognized  in  Alaska.                                                               
Again, he urged passage of HB 208.                                                                                              
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  highlighted  that Mr.  Hackney  is  a                                                               
former member of the Alaska State Legislature.                                                                                  
                                                                                                                                
1:41:45 PM                                                                                                                    
                                                                                                                                
CHAIR LYNN, upon determining there was  no one else who wished to                                                               
testify, closed public testimony.                                                                                               
                                                                                                                                
REPRESENTATIVE  THOMAS moved  that  the  committee the  following                                                               
amendment:                                                                                                                      
                                                                                                                                
     Page 2, line 23, following "Fairbanks",                                                                                    
     Insert "and anywhere else that qualifies"                                                                                  
                                                                                                                                
REPRESENTATIVE DAHLSTROM objected for discussion purposes.                                                                      
                                                                                                                                
REPRESENTATIVE  GRUENBERG offered  a technical  amendment to  the                                                               
aforementioned amendment  such that  the amendment would  read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, line 23,                                                                                                           
     Delete "an"                                                                                                                
                                                                                                                                
     Page 2, line 23                                                                                                            
     Delete "cemetery"                                                                                                          
     Insert "cemeteries"                                                                                                        
                                                                                                                                
     Page 2, line 23, following "Fairbanks"                                                                                     
     Insert "and elsewhere in Alaska"                                                                                           
                                                                                                                                
REPRESENTATIVE DAHLSTROM  removed her objection.   There being no                                                               
further objection, the amendment, as amended, was adopted.                                                                      
                                                                                                                                
REPRESENTATIVE DAHLSTROM moved to report  HB 208, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB
208(MLV)  was  reported  from  the  House  Special  Committee  on                                                               
Military and Veterans' Affairs.                                                                                                 
                                                                                                                                
HB 212-PROPERTY TAX EXEMPTIONS FOR SENIORS/VETS                                                                               
                                                                                                                                
1:43:57 PM                                                                                                                    
                                                                                                                                
CHAIR LYNN  announced that the  final order of business  would be                                                               
HOUSE  BILL  NO.  212,  "An   Act  relating  to  exemptions  from                                                               
municipal  property taxes  for  certain  primary residences;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
REPRESENTATIVE  THOMAS  moved  to  adopt CSHB  212,  Version  24-                                                               
LS0684\F, Cook,  3/31/05, as the  working document.   There being                                                               
no objection, Version F was before the committee.                                                                               
                                                                                                                                
REPRESENTATIVE  THOMAS,  speaking  as  the  sponsor  of  HB  212,                                                               
explained  that current  law mandates  that  senior citizens  and                                                               
disabled veterans  are exempt  from the  first $150,000  of their                                                               
assessed  property value.   In  a community  with 12  mills, that                                                               
amounts to about $1,800 a  year, he specified.  However, revenues                                                               
[from the  state] going  to communities  have been  suspended for                                                               
several  years, which  has cost  many  communities a  significant                                                               
amount.   For instance, since  [the state] has  stopped providing                                                               
funds  for [the  senior  citizens property  tax exemption],  [the                                                               
program]  has cost  Haines over  $  1 million.   Therefore,  this                                                               
legislation  places the  senior citizen  tax exemption  under the                                                               
local municipalities'  jurisdiction.  The effective  date of 2008                                                               
provides the municipalities two years  to decide how to deal with                                                               
this  exemption.   Representative  Thomas also  pointed out  that                                                               
Version  F allows  the  municipalities the  ability  to base  the                                                               
eligibility for the exemption on  financial resources.  Version F                                                               
also includes  a description  of the  term "disabled  veteran" in                                                               
this section of statutes.                                                                                                       
                                                                                                                                
REPRESENTATIVE THOMAS  informed the committee that  the statewide                                                               
revenue loss [for  this exemption] is about 6  percent.  However,                                                               
in Wrangell it's  about 16 percent of the tax  base while it's 13                                                               
percent  of Ketchikan's  tax base  and  9 percent  of the  Mat-Su                                                               
[Borough's]  and Petersburg's  tax base.   Representative  Thomas                                                               
clarified that  the idea  behind this  legislation is  to provide                                                               
the local  municipalities the authority  to phase out  the senior                                                               
tax  exemption  if  they  so   choose.    He  characterized  this                                                               
legislation  as providing  municipalities another  tool [to  deal                                                               
with diminishing revenue sharing].                                                                                              
                                                                                                                                
1:47:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM said  she thinks HB 212 is  a good bill,                                                               
but asked whether the word "veteran" needs to be in the title.                                                                  
                                                                                                                                
REPRESENTATIVE GRUENBERG  pointed out that this  legislation also                                                               
affects the  senior citizen property  tax exemption.   Therefore,                                                               
he opined that  the language "veterans" shouldn't  be included in                                                               
the title.                                                                                                                      
                                                                                                                                
REPRESENTATIVE THOMAS  offered to research  the need for  a title                                                               
change  and address  it in  the next  committee of  referral, the                                                               
House Community and Regional Affairs Standing Committee.                                                                        
                                                                                                                                
REPRESENTATIVE  ELKINS expressed  concern  with this  legislation                                                               
because [the senior property tax  exemption] program was mandated                                                               
by  the   legislature.    "For  us   to  opt  out  and   put  the                                                               
responsibilities on the  municipalities is wrong.   And we should                                                               
try to do what's right,"  he stressed.  Therefore, Representative                                                               
Elkins stated  that the  legislature should  either do  away with                                                               
the  program or  help fund  it.   Representative  Elkins said  he                                                               
wouldn't support  this legislation, although  he has served  on a                                                               
municipal   government  and   sympathizes   with  the   sponsor's                                                               
position.                                                                                                                       
                                                                                                                                
1:50:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  agreed with Representative Elkins.   He                                                               
highlighted  programs, such  as the  longevity bonus  and revenue                                                               
sharing,  for   which  the   burden  has   been  placed   on  the                                                               
municipalities.       He    related   his    understanding   that                                                               
Representative Elkins has introduced  legislation that would fund                                                               
the [revenue sharing and municipal assistance] programs.                                                                        
                                                                                                                                
REPRESENTATIVE  THOMAS said  he introduced  this legislation  per                                                               
the request of several communities  and the Southeast Conference.                                                               
He informed  the committee  that he  reviewed the  possibility of                                                               
eliminating the program  and phasing it out over  time.  However,                                                               
he relayed that  he was told that the program  couldn't be phased                                                               
out  over time  and  that the  best option  was  to transfer  the                                                               
authority  to the  local municipalities.   Representative  Thomas                                                               
expressed concern  that when the Baby  Boomers, of which he  is a                                                               
member, reaches the tax  base at the same time, it  will be a big                                                               
problem  statewide.   Representative Thomas  noted that  he, too,                                                               
has  served  at  the  local  government  level,  but  that  local                                                               
government wished it  had the tool to hold local  meetings on the                                                               
option of  phasing out  the program.   Furthermore,  allowing the                                                               
aforementioned to be done via  ordinance versus an election would                                                               
save  the  local government  the  cost  of holding  an  election.                                                               
Representative Thomas  related his understanding that  the Alaska                                                               
Municipal  League (AML)  is  in  support of  this  as  a tool  to                                                               
address the  large problem that  will arise in about  five years.                                                               
He then reminded the committee  that the legislation does provide                                                               
individuals with a means for relief from the municipality.                                                                      
                                                                                                                                
1:54:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ELKINS   confirmed   that  he   has   introduced                                                               
legislation to  reimburse municipalities  up to  25 percent.   He                                                               
noted   that   the    aforementioned   legislation   carries   an                                                               
approximately  $29 million  fiscal note.   Returning  to HB  212,                                                               
Representative  Elkins opined  that when  looking at  seniors, in                                                               
general, they should  be viewed in a different light  than HB 212                                                               
provides.   He  suggested that  seniors  should be  viewed as  an                                                               
economic engine,  and offered that  in his community  seniors, as                                                               
an economic engine, provide over  $3 million dollars annually and                                                               
that  dollar is  estimated to  turn three  to five  times in  the                                                               
community.   Furthermore, the  tax exempt  dollars turn  three to                                                               
five times  in a  community.   Representative Elkins  related his                                                               
belief that it's shortsighted to  not view seniors as an economic                                                               
engine.                                                                                                                         
                                                                                                                                
1:56:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM said she would  like to do more research                                                               
on this issue, and related her preference for holding HB 212.                                                                   
                                                                                                                                
REPRESENTATIVE THOMAS highlighted that  HB 212 does not eliminate                                                               
the  senior  citizen  tax  exemption.    The  legislation  merely                                                               
provides a  local option.  He  then added that the  [Baby Boomer]                                                               
generation has had the benefit  of inflation and thus should have                                                               
built up enough money  and not be a burden on  society.  In fact,                                                               
some  people   receiving  the  exemption   can  afford   to  pay.                                                               
Representative Thomas  specified that he's not  trying to cripple                                                               
anyone, but merely wants to provide municipalities a tool.                                                                      
                                                                                                                                
1:57:35 PM                                                                                                                    
                                                                                                                                
CHAIR LYNN  noted that he  is a senior  and a veteran,  and would                                                               
hate for the existence of the  exemption to be dependent on where                                                               
one  lives.    He  opined  that there  should  be  some  form  of                                                               
municipal sharing.   In  fact, he informed  the committee  of his                                                               
proposal to fund  municipal governments with some  of the Amerada                                                               
Hess funds.   Chair  Lynn reiterated his  concern with  regard to                                                               
this  exemption  being dependent  upon  where  one lives  in  the                                                               
state.  Therefore, he said he would like to table HB 212.                                                                       
                                                                                                                                
1:59:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMAS  informed the committee that  he introduced                                                               
HB 144,  which would provide  $150 million of the  permanent fund                                                               
earnings   reserve,   by   a   vote,   to   be   distributed   to                                                               
municipalities.   The aforementioned  [and HB  212] are  steps to                                                               
better the health of communities.                                                                                               
                                                                                                                                
REPRESENTATIVE  GRUENBERG  said  that  his  legislation,  HB  52,                                                               
requiring the  state to adopt  a fiscal plan should  include this                                                               
issue before the committee today.                                                                                               
                                                                                                                                
2:02:38 PM                                                                                                                    
                                                                                                                                
CHAIR  LYNN announced  that HB  212 would  be tabled  for further                                                               
discussion and study.                                                                                                           
                                                                                                                                
2:03:22 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee  on Military and Veterans'  Affairs meeting was                                                               
adjourned at 2:04 p.m.                                                                                                          
                                                                                                                                

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