Legislature(1993 - 1994)

04/13/1993 09:05 AM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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          SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                        
                          April 13, 1993                                       
                            9:05 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Randy Phillips, Chairman                                             
  Senator Robin Taylor, Vice Chairman                                          
  Senator Al Adams                                                             
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Senator Loren Leman                                                          
  Senator Fred Zharoff                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE BILL NO. 164                                                          
  "An    Act    relating    to     municipal    incorporation,                 
  reclassification, and dissolution."                                          
                                                                               
  SENATE BILL NO. 176                                                          
  "An  Act  relating  to  the   municipal  tax  exemption  for                 
  inventories intended for export."                                            
                                                                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  SB 164 - See Community & Regional Affairs minutes                            
           dated 3/30/93.                                                      
                                                                               
  SB 176 - No previous action to record.                                       
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Dan Bockhorst, Local Boundary Commission                                     
    Supervisor                                                                 
  Division of Municipal & Regional Assistance                                  
  Department of Community & Regional Affairs                                   
  333 W. 4th Ave., Suite 220                                                   
  Anchorage, AK 99501-2341                                                     
  POSITION STATEMENT:  Offered information on SB 164                           
                                                                               
  Portia Babcock, Staff to Senate State Affairs                                
    Committee                                                                  
  State Capitol                                                                
  Juneau, AK 99801-1182                                                        
  POSITION STATEMENT:  Offered information on SB 176                           
                                                                               
  Kent Swisher, Executive Director                                             
  Alaska Municipal League                                                      
  217 2nd St.                                                                  
                                                                               
                                                                               
  Juneau, AK 99801                                                             
  POSITION STATEMENT:  Testified on SB 176                                     
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-21, SIDE A                                                           
                                                                               
  Number 001                                                                   
                                                                               
  The Senate Community & Regional Affairs Committee was called                 
  to order by Chairman Randy Phillips at 9:05 a.m.                             
  SENATOR   RANDY   PHILLIPS   brought   SB   164   (MUNICIPAL                 
  INCORPORATION,    RECLASSIFICATION, DISSOLUTION)  before the                 
  committee as the first order of business.                                    
                                                                               
  Number 015                                                                   
                                                                               
  DAN BOCKHORST,  Department of Community &  Regional Affairs,                 
  staff  to Alaska  Local Boundary Commission,  testified from                 
  Anchorage over the  Legislative Teleconference Network.   He                 
  said he has reviewed the proposed committee substitute dated                 
  4/9/93, and that it encompasses  most of the recommendations                 
  made by the department with two exceptions.                                  
                                                                               
  The work  draft retains language the  department recommended                 
  be deleted because  it felt  it was redundant  to the  LBC's                 
  tasks  that  would be  assigned under  the  bill.   It would                 
  retain  the  provision   for  a  city  council   hearing  on                 
  reclassification as well as requiring a hearing  by the LBC.                 
  The department does not have strong objection to keeping the                 
  language in the bill, but they suggest a technical amendment                 
  to AS 29.04.040(c)  to reflect that reclassification  is now                 
  limited only to reclassification of first class cities.                      
                                                                               
  The  second  suggested change  is  of  a  policy nature  and                 
  relates to language  in AS 29.06.500(b) that allows a second                 
  class  city with  a population  of 3,500  or more  permanent                 
  residents  in jurisdictional  boundaries  that encompass  35                 
  square miles or  more to adopt  a home rule  charter.    The                 
  department feels  that  this  proposal  should  be  repealed                 
  because  the  language  is  tantamount  to being  local  and                 
  special legislation.  The provisions would apply only to one                 
  of  Alaska's  116 second  class  cities, and  the department                 
  believes that the statutes, from a policy standpoint, should                 
  be broad and  general and not applicable to single interests                 
  as is the case in this particular situation.                                 
                                                                               
  Mr.  Bockhorst  outlined  three  other  suggested  technical                 
  changes: expanding  the title of the Act; amending the title                 
  of  Section 2; and  on page  8, line  19, change  "shall" to                 
  "may."                                                                       
                                                                               
  Number 155                                                                   
                                                                               
                                                                               
  SENATOR RANDY PHILLIPS requested that Mr.  Bockhorst provide                 
  the  committee with a  letter outlining  the changes  he had                 
  discussed, as well  as providing a  new fiscal note for  the                 
  committee substitute.   He then closed the public hearing on                 
  SB 164.                                                                      
  Number 162                                                                   
  SENATOR  RANDY   PHILLIPS  introduced   SB  176   (MUNICIPAL                 
  INVENTORY  TAX  EXEMPTION:EXPORTS)  as  the  final  order of                 
  business.                                                                    
                                                                               
  PORTIA BABCOCK, staff to the Senate State Affairs Committee,                 
  said the legislation was introduced  by the committee at the                 
  request of the  Anchorage Economic Development  Corporation.                 
  It will allow municipalities the flexibility to partially or                 
  totally  exempt inventories  from taxation,  primarily goods                 
  being held  for shipment  out  of state.   She  said it  was                 
  requested because it  is the general practice  of most other                 
  large export areas that want to encourage their municipality                 
  to be a distribution center for storing large shipments  for                 
  export.                                                                      
                                                                               
  Number 192                                                                   
                                                                               
  SENATOR ADAMS  asked what  the  Anchorage school  district's                 
  position was on  the legislation, because  a portion of  the                 
  taxes received was going to the  school system and by making                 
  the change, all 10 percent can  be exempted.  PORTIA BABCOCK                 
  said the school district has not taken an official  position                 
  on  the bill, but she is not sure if this is even being used                 
  and whether any  revenues currently would be  affected.  She                 
  said she would contact them and ask for a position.  SENATOR                 
  PHILLIPS asked  that information  also be  requested on  how                 
  this tax exemption would affect the public school foundation                 
  formula.                                                                     
                                                                               
  Number 224                                                                   
                                                                               
  KENT SWISHER,  Executive Director, Alaska  Municipal League,                 
  said  the League's position is one of mild support.  He said                 
  the legislation would create an  additional option for local                 
  government; it doesn't  require anyone  to reduce their  tax                 
  revenues, but it  may be  a useful  tool for  those who  are                 
  attempting to do this type of thing.  He said it may be good                 
  policy to  suggest that  this particular  form of  exemption                 
  allow a credit in terms of educational funding.                              
                                                                               
  Number 236                                                                   
                                                                               
  SENATOR RANDY  PHILLIPS asked  that Mr.  Swisher submit  the                 
  League's position in writing for the record.  He then closed                 
  the public  hearing on  SB 176  and said  it  would be  back                 
                                                                               
                                                                               
  before the committee at its next meeting.                                    
  There  being  no   further  business  to  come   before  the                 
  committee, the meeting was adjourned at 9:22 a.m.                            

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