Legislature(1993 - 1994)

03/09/1993 09:06 AM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
          SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                        
                          March 9, 1993                                        
                            9:06 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Randy Phillips, Chairman                                             
  Senator Robin Taylor, Vice Chairman                                          
  Senator Rick Halford                                                         
  Senator Fred Zharoff                                                         
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Senator Al Adams                                                             
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HOUSE BILL NO. 73                                                            
  "An Act relating to state and local taxation and other state                 
  regulation  as  affected   by  the   Alaska  Native   Claims                 
  Settlement Act,  as amended,  and related federal  statutes;                 
  and providing for an effective date."                                        
                                                                               
  SENATE BILL NO. 42                                                           
  "An  Act   relating  to  municipal  taxation   of  alcoholic                 
  beverages; and providing for an effective date."                             
                                                                               
  SENATE BILL NO. 88                                                           
  "An   Act  relating  to   grants  to  municipalities,  named                 
  recipients,  and  unincorporated  communities;  establishing                 
  capital project  matching grant programs  for municipalities                 
  and unincorporated  communities; establishing a  local share                 
  requirement for  capital project  grants to  municipalities,                 
  named  recipients,  and   unincorporated  communities;   and                 
  providing for an effective date."                                            
                                                                               
  SENATE BILL NO. 89                                                           
  "An Act  making appropriations for  capital project matching                 
  grant programs; and providing for an effective date."                        
                                                                               
  SENATE BILL NO. 95                                                           
  "An Act relating  to multiple-beneficiary charitable  gaming                 
  permits and door prizes for charitable gaming; and providing                 
  for an effective date."                                                      
                                                                               
  SENATE BILL NO. 102                                                          
  "An Act relating  to municipal  property tax exemptions  for                 
  certain residences and to property  tax equivalency payments                 
  for certain residents; and providing for an effective date."                 
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  HB  73 - No previous action to record.                                       
                                                                               
                                                                               
  SB  42 - See Community & Regional Affairs minutes                            
           dated 2/25/93, 3/2/93, 3/4/93.                                      
                                                                               
  SB  88 - See Community & Regional Affairs minutes                            
           dated 2/16/93, 2/18/93, 2/23/93, 3/2/93,                            
           3/4/9.                                                              
                                                                               
  SB  89 - See Community & Regional Affairs minutes                            
           dated 2/16/93, 2/18/93, 2/23/93, 3/2/93,                            
           3/4/93.                                                             
                                                                               
  SB  95 - No previous action to record.                                       
                                                                               
  SB 102 - See Community & Regional Affairs minutes                            
           dated 2/18/93, 2/25/93, 3/4/93.                                     
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Rena Buckovich, Staff to Representative Eileen                               
    MacLean                                                                    
  State Capitol                                                                
  Juneau, AK 99801-1182                                                        
  POSITION STATEMENT:  Offered information on HB 73                            
                                                                               
  Bryce Edgmon, Staff to Senator George Jacko                                  
  State Capitol                                                                
  Juneau, AK 998-1-1182                                                        
  POSITION STATEMENT:  Offered information on CSSB 42 (CRA)                    
                                                                               
  Shelby Stastny, Director                                                     
  Office of Management & Budget                                                
  P.O. Box 110020                                                              
  Juneau, AK 99811-0020                                                        
  POSITION STATEMENT:  Offered information on SB's 88 & 89                     
                                                                               
  John Hansen, Gaming Manager                                                  
  Division of Occupational Licensing                                           
  Department of Commerce & Economic Development                                
  P.O. Box 110806                                                              
  Juneau, AK 99811-0806                                                        
  POSITION STATEMENT:  Offered information on SB 95                            
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-12, SIDE A                                                           
                                                                               
  Number 001                                                                   
                                                                               
  The Senate Community & Regional Affairs Committee was called                 
  to order by Chairman Randy Phillips at 9:06 a.m.                             
  CHAIRMAN RANDY PHILLIPS  introduced HB  73 (ANCSA STATE  TAX                 
  EXEMPTIONS) as the first order of business.                                  
                                                                               
                                                                               
  RENA BUCKOVICH,  staff  to  Representative  Eileen  MacLean,                 
  explained that the legislation was introduced to bring state                 
  law  into  compliance  regarding  the  exemption  of   ANCSA                 
  property from taxation.  In 1987, federal law was changed to                 
  continue the property  tax exemption from federal,  state or                 
  local taxation on ANCSA land until  development occurs.  The                 
  bill reflects those changes in state law to  avoid confusion                 
  in the application of the state's tax laws.                                  
                                                                               
  Ms.  Buckovich  said  that  in  the  drafting  process,  the                 
  attorney noted other sections of state  law which need to be                 
  updated and  has included those  changes in HB 73.   For the                 
  most  part,  they represent  technical or  stylistic wording                 
  changes to update state law to federal law.                                  
                                                                               
  HB  73  does  not  expand  or  reduce  any benefits  already                 
  mandated by federal law.  It merely cleans up state law, and                 
  ensures  that  obsolete  state  statutes   do  not  lead  to                 
  misinterpretation by  state assessors  and  others who  work                 
  with Alaska's tax law.                                                       
                                                                               
  Ms.  Buckovich said  that  to her  knowledge,  there are  no                 
  problems or  concerns with  the legislation  and that  it is                 
  primarily housekeeping in nature.                                            
                                                                               
  There being no other witnesses present  to testify on HB 73,                 
  the Chairman asked for the pleasure of the committee.                        
                                                                               
  SENATOR TAYLOR moved that  HB 73 be passed out  of committee                 
  with individual  recommendations.  Hearing no  objection, it                 
  was so ordered.                                                              
  Number 095                                                                   
  CHAIRMAN RANDY PHILLIPS introduced SB 42 (LOCAL SALES TAX ON                 
  ALCOHOLIC BEVERAGES) as the next order of business.                          
                                                                               
  BRYCE EDGMON, staff to Senator George Jacko, speaking to the                 
  proposed committee substitute, said the  only change is that                 
  it exempts communities  that have  a population larger  than                 
  2,500 from being impacted by the bill.                                       
                                                                               
  SENATOR TAYLOR moved that CSSB 42 (CRA) be adopted.  Hearing                 
  no objection, the motion carried.                                            
                                                                               
  SENATOR TAYLOR moved  that CSSB  42 (CRA) be  passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.                                                
  Number 140                                                                   
  CHAIRMAN  RANDY  PHILLIPS  brought  SB  88  (CAPITAL PROJECT                 
  GRANTS)  before the committee.   He directed  attention to a                 
                                                                               
                                                                               
  proposed  amendment  that  limits  administrative costs  for                 
  capital matching projects to 10 percent.                                     
                                                                               
  SENATOR TAYLOR moved the adoption of the following amendment                 
                                                                               
  AMENDMENT #1                                                                 
                                                                               
  Page 5, after line 7, insert a new bill section to read:                     
     "*Sec.  8.   AS  37.05.321  is  amended by  adding  a new                 
  subsection to read:                                                          
            (b)  No more  than 10 percent of the  total amount                 
  of money  spent on a  capital project funded in  whole or in                 
  part with money granted  under AS 37.05.315 - 37.05.317  may                 
  be used for administrative expenses."                                        
                                                                               
  Renumber the following bill sections accordingly.                            
                                                                               
  Page 7, line  4, after "state."  insert:  "No  more than  10                 
  percent of  the total  amount of  money spent  on a  capital                 
  project funded in whole or  in part with money  appropriated                 
  under  this   subsection  may  be  used  for  administrative                 
  expenses."                                                                   
                                                                               
  Page 9, line 22,  after "state." insert:   "No more than  10                 
  percent of  the total  amount of  money spent  on a  capital                 
  project funded in  whole or in part with  money appropriated                 
  under  this  subsection  may  be   used  for  administrative                 
  expenses."                                                                   
                                                                               
  Page 13, line 10:  Delete "sec. 8" and insert "sec. 9"                       
                                                                               
  Page 13, line 13:  Delete "sec. 8" and insert "sec. 9"                       
                                                                               
  Page 13, line 18:  Delete "sec. 11" and insert "sec. 12"                     
                                                                               
  Hearing no objection  to the amendment, the  Chairman stated                 
  amendment #1 had been adopted and would be incorporated into                 
  a C&RA committee substitute.                                                 
                                                                               
  Number 180                                                                   
                                                                               
  CHAIRMAN  RANDY PHILLIPS  directed attention  to  a proposed                 
  amendment  #2, which  was  suggested by  Mayor  Fink of  the                 
  Municipality  of  Anchorage.    It  would change  the  match                 
  requirement to a 75/25  match as opposed to the  75/30 match                 
  requirement in SB 88.                                                        
                                                                               
  SENATOR  TAYLOR  said   he  was   not  satisfied  that   the                 
  percentages in the bill are fair  and equitable.  He said he                 
  appreciates the simplicity of the formula because it applies                 
  readily across the board based merely  on population, but he                 
  still  thinks  that  there should  be  something  within the                 
  formula that adjusts for the wealth factor.                                  
                                                                               
                                                                               
  Number 242                                                                   
                                                                               
  SHELBY  STASTNY, Director,  Office  of Management  & Budget,                 
  Office  of the  Governor, said  that as the  legislation was                 
  drafted the previous year,  it had a wealth factor  based on                 
  DCRA's assessed valuations.   The  formula was lengthy,  and                 
  strictly out of a matter of simplicity, the bill was drafted                 
  in its  current form.   He  said  he agreed  that there  are                 
  circumstances where the formula is not equitable for some of                 
  the  smaller  communities,  but  the  dollars  involved  are                 
  usually fairly small because the amounts allocated  in SB 88                 
  are based strictly on population.   He added that his office                 
  would  be willing  to  work with  the  committee or  Senator                 
  Taylor  on  another formula  that  would be  more equitable.                 
  SENATOR TAYLOR said he  didn't want to hold  the legislation                 
  up and that he would work  with the Finance Committee on his                 
  concern.                                                                     
                                                                               
  CHAIRMAN RANDY PHILLIPS  asked Mr. Stastny for  his comments                 
  on amendment  #2.   SHELBY STASTNY  responded that  Governor                 
  feels strongly that the  50/50 match down the road  is where                 
  we ought to be headed and prefers the 75/30 match.                           
                                                                               
  There being no  motion on amendment  #2, the Chairman  asked                 
  for the pleasure of the committee.                                           
                                                                               
  Number 290                                                                   
                                                                               
  SENATOR TAYLOR moved  that CSSB  88 (CRA) be  passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.                                                
  CHAIRMAN  RANDY  PHILLIPS  brought  SB 89  (APPROP:  CAPITAL                 
  PROJECT  MATCHING  GRANTS) before  the  committee.   He then                 
  asked for the pleasure of the committee.                                     
                                                                               
  Number 320                                                                   
                                                                               
  SENATOR TAYLOR moved that  SB 89 be passed out  of committee                 
  with individual recommendations.   Hearing no objection,  it                 
  was so ordered.                                                              
  Number 325                                                                   
  CHAIRMAN RANDY PHILLIPS introduced SB 95 (MULTIPLE PERMITTEE                 
  GAMING; PRIZE AMOUNTS) as the next order of business.                        
                                                                               
  SENATOR  FRED ZHAROFF,  prime  sponsor of  SB  95, said  the                 
  legislation  is an  attempt to  clarify what  is already  in                 
  statute.    It establishes  a  new charitable  gaming permit                 
  called a multiple-beneficiary permit.                                        
                                                                               
                                                                               
  Senator Zharoff said the terms of the legislation allows two                 
  to six  entities that would  otherwise qualify for  a gaming                 
  permit to join together and apply for a multiple-beneficiary                 
  permit.  It allows the permit  holders to operate without an                 
  operator to give them more control.                                          
                                                                               
  Number 354                                                                   
                                                                               
  JOHN  HANSEN,  Program  Manger,  Department  of  Commerce  &                 
  Economic  Development,  stated  this   is  already  done  by                 
  regulation and this would recognize it in statute.                           
                                                                               
  Mr. Hansen  noted that the department has  prepared a fiscal                 
  note to fund a  position that would actually be  responsible                 
  for issuing these new class of licenses.                                     
                                                                               
  Number 362                                                                   
                                                                               
  SENATOR TAYLOR asked what impact this legislation would have                 
  on the current  permittees that are operating.   JOHN HANSEN                 
  answered that there are approximately seven groups of people                 
  that are doing  this in the state right now.   They would be                 
  recognized as  a separate entity and that would require them                 
  to get licenses and to file  the same reports that operators                 
  do.    In some  instances,  it would  make  their operations                 
  easier because  they could  buy pull-tabs  under one  permit                 
  number,  but  there  will  also  be  an  increase  in  their                 
  reporting  requirements.   The  legislation  will  allow the                 
  permittees to join together at  a single facility, share the                 
  expenses,  and  get  a  single permit  to  operate  that one                 
  facility.                                                                    
                                                                               
  Number 394                                                                   
                                                                               
  SENATOR  ZHAROFF  raised his  concern  with the  fiscal note                 
  because  he  didn't  think it  would  involve  an additional                 
  person because this is something that is already being done.                 
  JOHN  HANSEN  responded  that the  department  is  issuing a                 
  tremendous  amount  of  licenses  already.   They  have  one                 
  examiner performing this  duty and  right now he  is over  a                 
  five weeks behind.  The bill will probably recognize another                 
  30 to 40 organizations that may want to join together and do                 
  these activities and they will be  required to file separate                 
  applications  for  each  of  those  locations,   which  will                 
  increase the workload  and push the issuance of  the permits                 
  seven or eight weeks behind.                                                 
                                                                               
  Number 410                                                                   
                                                                               
  CHAIRMAN RANDY PHILLIPS directed attention  to a letter from                 
  the Juneau  Soccer Club in  support of the  legislation, but                 
  suggesting some changes.   JOHN HANSEN said he has  seen the                 
  letter,  and  the  concerns  outlined   in  the  letter  are                 
  addressed in the legislation.                                                
                                                                               
                                                                               
  CHAIRMAN PHILLIPS also  directed attention to a  letter from                 
  Pat  Vincent,  Executive  Officer   of  the  Kenai  Builders                 
  Association. JOHN  HANSEN explained that  the bill prohibits                 
  the people that hold  these permits from operating in  other                 
  locations by saying  they can't  have another permit.     He                 
  said  he  can't think  of  a good  reason  why organizations                 
  should be limited to do business at one location.                            
                                                                               
  SENATOR ZHAROFF suggested  that because the  bill now has  a                 
  fiscal note, it  may also need a  Finance referral, although                 
  he disagrees that there is the  need for an additional staff                 
  person.  The  Chairman said he  would request an  additional                 
  referral to the Finance Committee.                                           
                                                                               
  Number 525                                                                   
                                                                               
  CHAIRMAN RANDY  PHILLIPS pointed  out that the  bill has  at                 
  least two more  committees of referral  where some of  these                 
  problems  can be worked out.  He then asked for the pleasure                 
  of the committee.                                                            
                                                                               
  SENATOR TAYLOR moved that  SB 95 be passed out  of committee                 
  with individual  recommendations.  Hearing no  objection, it                 
  was so ordered.                                                              
  Number 545                                                                   
  The final order  of business was SB  102 (MUNICIPAL PROPERTY                 
  TAX EXEMPTIONS).   There was  a committee substitute  before                 
  the committee which includes three changes:  (1)  it exempts                 
  the   optional   taxes  from   the   full  and   true  value                 
  determination by  DCRA in the education  foundation formula;                 
  (2) it changes  the effective date  from January 1, 1993  to                 
  January  1, 1994; and (3) it  retains the mandatory property                 
  tax exemption and renters rebate for disabled veterans.                      
                                                                               
  Number 555                                                                   
                                                                               
  SENATOR ZHAROFF  asked why  the effective  date was  changed                 
  SHIRLEY ARMSTRONG, staff to Senator Phillips, explained that                 
  their office  had been  contacted by  several people  asking                 
  that the effective date not occur this year.  The department                 
  has said  that it  wouldn't affect  tax assessments  because                 
  they couldn't  gear up  fast enough to  deny the  exemption.                 
  She said the  department did suggest  July 1, 1993,  because                 
  that assures that they couldn't  deny the exemption for this                 
  year.                                                                        
                                                                               
  Speaking to  the first  change in  the committee  substitute                 
  whereby it exempts the optional taxes from the full and true                 
  value determination,  SENATOR TAYLOR  said the  modification                 
  makes certain  that if  the municipalities  chose to  exempt                 
  those properties they would still be exempted under DCRA.                    
                                                                               
                                                                               
  CHAIRMAN  RANDY  PHILLIPS  explained  the  third   amendment                 
  eliminates the disabled veterans to both the home owners tax                 
  exemption as well  as the renters  rebate, which amounts  to                 
  approximately $230,0000.                                                     
                                                                               
  TAPE 93-12, SIDE B                                                           
                                                                               
  Number 001                                                                   
                                                                               
  CHAIRMAN  RANDY  PHILLIPS  asked  for  the pleasure  of  the                 
  committee.                                                                   
                                                                               
  SENATOR  TAYLOR  moved  that  CSSB  102  (CRA)  be  adopted.                 
  Hearing no objection, the motion carried.                                    
                                                                               
  SENATOR TAYLOR moved  that CSSB 102  (CRA) be passed out  of                 
  committee  with  individual  recommendations.    Hearing  no                 
  objection, it was so ordered.                                                
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 9:54 a.m.                            

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