Legislature(2017 - 2018)BELTZ 105 (TSBldg)

04/11/2017 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 106 MUNI TAX EXEMPTION: ECON DEVEL PROPERTY TELECONFERENCED
Moved CSSB 106(CRA) Out of Committee
+= SB 61 GAME REFUGE/CRIT HABITAT AREA BOUNDARIES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                  
                         April 11, 2017                                                                                         
                           3:44 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Chair                                                                                                     
Senator Lyman Hoffman                                                                                                           
Senator Bert Stedman                                                                                                            
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna MacKinnon                                                                                                          
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 106                                                                                                             
"An Act  relating to  a municipal tax  exemption or  deferral for                                                               
economic development  property; and  relating to a  municipal tax                                                               
exemption for a fire protection system."                                                                                        
                                                                                                                                
     - MOVED CSSB 106(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 61                                                                                                              
"An Act relating to the  Izembek State Game Refuge, Cape Newenham                                                               
State  Game Refuge,  Palmer  Hay Flats  State  Game Refuge,  Port                                                               
Moller  Critical  Habitat  Area, Egegik  Critical  Habitat  Area,                                                               
Pilot  Point  Critical Habitat  Area,  Fox  River Flats  Critical                                                               
Habitat Area, Kachemak Bay Critical  Habitat Area, and Dude Creek                                                               
Critical Habitat Area; and providing for an effective date."                                                                    
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 106                                                                                                                  
SHORT TITLE: MUNI TAX EXEMPTION: ECON DEVEL PROPERTY                                                                            
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
04/05/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/17       (S)       CRA, STA                                                                                               
04/11/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 61                                                                                                                   
SHORT TITLE: GAME REFUGE/CRIT HABITAT AREA BOUNDARIES                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/15/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/17       (S)       CRA, RES                                                                                               
04/06/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
04/06/17       (S)       -- MEETING CANCELED --                                                                                 
04/11/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RYNNIEVA MOSS, staff                                                                                                            
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 106 for the                                                                    
sponsor.                                                                                                                        
                                                                                                                                
MORGAN FOSS, Legislative Liaison                                                                                                
Alaska Department of Fish and Game                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview of SB 61 on behalf of                                                                
the administration.                                                                                                             
                                                                                                                                
TAMMY MASSIE, Habitat Biologist                                                                                                 
Division of Habitat, Southcentral                                                                                               
Department of Fish and Game                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Commented on SB 61.                                                                                       
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:44:06 PM                                                                                                                    
CHAIR  CLICK  BISHOP called  the  Senate  Community and  Regional                                                             
Affairs Standing Committee meeting to  order at 3:44 p.m. Present                                                               
at the  call to  order were  Senators Gardner,  Stedman, Hoffman,                                                               
and Chair Bishop.                                                                                                               
                                                                                                                                
         SB 106-MUNI TAX EXEMPTION: ECON DEVEL PROPERTY                                                                     
                                                                                                                                
3:44:52 PM                                                                                                                    
CHAIR BISHOP announced the consideration of SB 106, sponsored by                                                                
Senator John Coghill.                                                                                                           
                                                                                                                                
3:45:15 PM                                                                                                                    
RYNNIEVA  MOSS,  staff  to Senator  John  Coghill,  Alaska  State                                                               
Legislature, Juneau, Alaska,  provided an overview of  SB 106 for                                                               
the sponsor.  It allows  municipalities to  provide partial  or a                                                               
total  exemption for  a  time period  to  determine property  tax                                                               
exemptions or  deferrals for  economic development  projects. She                                                               
said this  bill has a  committee substitute  (CS) [CSSB 106  ( ),                                                               
version 30-LS0797\D] that corrects the earlier bill's format.                                                                   
                                                                                                                                
3:46:19 PM                                                                                                                    
MS. MOSS provided a sectional analysis.                                                                                         
                                                                                                                                
Sec 1. Removes  the five year limitation  on economic development                                                             
property  exemptions and  deferrals.  Removes renewals  provision                                                               
and the limit on property tax exemptions for renewals.                                                                          
(m)(1)  Eligibility for  economic development  property exemption                                                               
is based on one qualifier instead of multiple qualifiers.                                                                       
Adds  a  qualifier  for  property  development  that  "enables  a                                                               
significant capital investment in physical infrastructure that:                                                                 
1. Expands the tax base of the municipality; and                                                                                
2.  Will  generate  property  tax  revenue  after  the  exemption                                                               
expires.                                                                                                                        
                                                                                                                                
For example, the  MatSu assessor has provided  information on the                                                               
sports  center that  was built.  The land  had an  assessed value                                                               
prior  to construction  of  $294,000. Today  that  land with  the                                                               
building is assessed  at $6,998,300. The approximate  tax bill on                                                               
the land prior to the exemption  was $4,900. The average tax bill                                                               
on  the land  and building  today  is $102,500.  The total  taxes                                                               
generated on this  land since the exemption is  $615,100. Had the                                                               
improvements not  been made,  that would  have been  about $5,200                                                               
and a  total of $31,500. So,  it's a significant advantage  and a                                                               
tool  for municipalities  to use  to generate  revenues in  times                                                               
when they are losing state funds.                                                                                               
                                                                                                                                
3:48:20 PM                                                                                                                    
Sec.  3. Makes  optional what  is now  a mandated  2 percent  tax                                                             
exemption for a  fire protection systems, and sec.  4 repeals the                                                               
language that mandates that exemption.                                                                                          
                                                                                                                                
3:49:37 PM                                                                                                                    
SENATOR  GARDNER said  she is  familiar with  the context  of the                                                               
bill and it is a priority for her community.                                                                                    
                                                                                                                                
3:50:04 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
3:50:59 PM                                                                                                                    
CHAIR BISHOP called the committee back to order.                                                                                
                                                                                                                                
SENATOR  STEDMAN  moved  to  adopt  the  CSSB  106,  version  30-                                                               
LS0797\D, as the working document.                                                                                              
                                                                                                                                
3:51:08 PM                                                                                                                    
CHAIR BISHOP objected for discussion  purposes. He asked Ms. Moss                                                               
if the repealer  in sec. 3 talks about a  percentage decrease for                                                               
sprinklers.                                                                                                                     
                                                                                                                                
MS. MOSS answered that is correct.                                                                                              
                                                                                                                                
3:51:51 PM                                                                                                                    
SENATOR GARDNER asked  if the repealer of the  mandated 2 percent                                                               
is still in the bill.                                                                                                           
                                                                                                                                
MS. MOSS answered yes, and Sec. 2 makes it optional.                                                                            
                                                                                                                                
3:52:17 PM                                                                                                                    
CHAIR  BISHOP  said  the  next committee  of  referral  is  State                                                               
Affairs.                                                                                                                        
                                                                                                                                
MS. MOSS said that was correct.                                                                                                 
                                                                                                                                
3:52:27 PM                                                                                                                    
CHAIR BISHOP removed his objection and version D was adopted.                                                                   
                                                                                                                                
3:52:33 PM                                                                                                                    
SENATOR  STEDMAN  moved  to  report  the [CS  for]  SB  106  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  BISHOP announced  that  without  objection, CSSB  106(CRA)                                                               
moved  from the  Senate Community  and Regional  Affairs Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:52:50 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB 61-GAME REFUGE/CRIT HABITAT AREA BOUNDARIES                                                                     
                                                                                                                                
3:54:15 PM                                                                                                                    
CHAIR BISHOP announced the consideration of SB 61.                                                                              
                                                                                                                                
3:55:04 PM                                                                                                                    
MORGAN FOSS,  Legislative Liaison, Alaska Department  of Fish and                                                               
Game, Juneau, Alaska, provided an overview  of SB 61 on behalf of                                                               
the  administration. This  legislation  deals with  two types  of                                                               
special  areas: the  first  is critical  habitat  areas (CHA)  of                                                               
which  Alaska has  17. They  are  created by  the legislature  to                                                               
protect land  that is especially  crucial to the  perpetuation of                                                               
fish and  wildlife. These lands  are co-managed by ADF&G  and the                                                               
land  owner,  which  is  typically   the  Department  of  Natural                                                               
Resources (DNR).                                                                                                                
                                                                                                                                
MS. FOSS  said this goes for  state game refuges, as  well. State                                                               
Game  Refuges  are designated  to  protect  and preserve  natural                                                               
habitat and game populations and  are less restrictive than CHAs.                                                               
Alaska has  12. They are also  managed by ADF&G and  DNR; harvest                                                               
is managed by the Board of Game and the Board of Fisheries.                                                                     
                                                                                                                                
3:56:10 PM                                                                                                                    
MS. FOSS  said the first  area in the  map packet is  the Izembek                                                               
State  Game Refuge.  The  Izembek and  Cape  Newenham State  Game                                                               
Refuges both are adjusted in this  bill for the same reason. They                                                               
were created by the legislature  in 1972 and include tideland and                                                               
submerged lands. The intent of  the statute is to incorporate the                                                               
waterbodies within  the National  Wildlife Refuge  watershed. So,                                                               
adding the entire water bodies  including the previously excluded                                                               
areas would keep with the original intent.                                                                                      
                                                                                                                                
She  explained  that  the  errors  in  the  maps  that  they  are                                                               
attempting  to correct  resulted  from imperfect  mapping of  the                                                               
mean  high water  in the  1960s and  1970s. Most  of the  special                                                               
areas have very simple boundary corrections.                                                                                    
                                                                                                                                
MS.  FOSS said  the bill  seeks  to create  consistency for  both                                                               
users and managers.  The exception that will be  discussed at the                                                               
end is  the Dude Creek  Critical Habitat Area in  Gustavus, which                                                               
is an addition.                                                                                                                 
                                                                                                                                
3:57:26 PM                                                                                                                    
MS.  FOSS  said  the  Palmer  Hay Flats  State  Game  Refuge  was                                                               
designated in  1975 and is  around the Matanuska River,  which is                                                               
owned  by the  public  and  the state.  The  plat was  originally                                                               
surveyed  in 1913  with a  fixed river  channel description,  but                                                               
since  then  the river  channel  has  changed  and is  no  longer                                                               
navigable. It runs  in and out of the CHA  and is impractical for                                                               
both  users   and  management.  So,   the  whole  area   will  be                                                               
incorporated.                                                                                                                   
                                                                                                                                
3:58:06 PM                                                                                                                    
MS. FOSS  said the Port  Moller CHA  was established in  1972 and                                                               
the  legal description  referenced USGS  topographical maps  from                                                               
the  1960s in  which  labels were  printed  incorrectly across  a                                                               
range shift  at the northern  portion of the area.  This resulted                                                               
in the northern most portion  description being shifted six miles                                                               
to the west of where it was intended  to be and thus it moved the                                                               
community of  Nelson Lagoon into  the CHA. This  correction would                                                               
move the description to where  the original intent was and remove                                                               
the community of  Nelson Lagoon from the CHA.   This has received                                                               
a lot of support.                                                                                                               
                                                                                                                                
3:59:04 PM                                                                                                                    
MS. FOSS said Egegik and  Pilot Point Critical Habitat Areas have                                                               
boundaries where  typos occurred  in the original  legislation in                                                               
1972.  In  both instances,  one  character  was replaced  in  the                                                               
description:  1 instead  of 2  and  north instead  of south.  So,                                                               
there is a  non-contiguous block that was  originally intended to                                                               
be contiguous  with the  CHA and this  corrects that.  Only state                                                               
lands  are affected,  and the  locations are  not near  any other                                                               
infrastructures or villages.                                                                                                    
                                                                                                                                
3:59:47 PM                                                                                                                    
MS.  FOSS said  the Fox  River  Flats Critical  Habitat Area  was                                                               
established  in  1972  and  is  in  Kachemak  Bay;  it  partially                                                               
overlaps the Kachemak Bay Critical  Habitat Area. The purple line                                                               
on the  map demonstrates  the mean high  water which  divides the                                                               
uplands from  the tidelands  and the  submerged lands.  Along the                                                               
northern and eastern boundaries, four  of the seven sections have                                                               
tide and  submerged lands excluded.  This is not in  keeping with                                                               
the  intent  of  the  rest  of   the  CHA  and  was  not  applied                                                               
consistently. As the mean high water  shifts, it moves in and out                                                               
of those  areas; the  bay was  sinking for some  time and  now is                                                               
rebounding. So, this description  would allow for more consistent                                                               
management. On the  bottom right of the map the  Bradley River is                                                               
the only area that will be affected at this time.                                                                               
                                                                                                                                
4:01:08 PM                                                                                                                    
MS. FOSS said  the Kachemak Bay Critical Habitat  Area is another                                                               
simple mistake.  It was created  in 1974  as a list  of townships                                                               
and ranges. The  list includes the entirety of  Kachemak Bay with                                                               
the exception  of one  small corner  on the  north side  near the                                                               
head  of the  bay. This  was  an inadvertent  omission caused  by                                                               
missing one  township out of  the list  of 22. The  excluded area                                                               
lies seaward  of the switchback  trail, which is well  above mean                                                               
high water and will not be impacted.                                                                                            
                                                                                                                                
4:01:51 PM                                                                                                                    
CHAIR  BISHOP asked  if  the  affected area  is  "dry ground"  or                                                               
"ocean."                                                                                                                        
                                                                                                                                
MS.  FOSS replied  it's  only  the tide  and  submerged land  and                                                               
waters.                                                                                                                         
                                                                                                                                
4:02:14 PM                                                                                                                    
MS. FOSS  said the Dude Creek  Critical Habitat Area (CHA)  is in                                                               
Gustavus, which  is in  Glacier Bay,  and under  this legislation                                                               
would receive  an addition. The  land was purchased  and proposed                                                               
for  an  addition by  the  Nature  Conservancy  in 2004  and  was                                                               
transferred to  the state.  It is a  stopover for  migratory Sand                                                               
Hill Cranes  and other  migratory birds. It  is the  area between                                                               
the  existing CHA  and  mean  high water.  The  City of  Gustavus                                                               
passed a resolution in November 2016 supporting this addition.                                                                  
                                                                                                                                
4:03:07 PM                                                                                                                    
SENATOR STEDMAN  asked if  the uplands were  owned by  the Nature                                                               
Conservatory and deeded over to the state.                                                                                      
                                                                                                                                
MS. FOSS answered that is correct.                                                                                              
                                                                                                                                
4:03:32 PM                                                                                                                    
MS. FOSS said that concluded her presentation.                                                                                  
                                                                                                                                
4:03:41 PM                                                                                                                    
CHAIR BISHOP opened public testimony.                                                                                           
                                                                                                                                
4:04:08 PM                                                                                                                    
CHAIR BISHOP  said that one area,  the Palmer Hay Flats,  had not                                                               
been  surveyed since  1913 and  asked if  a new  survey had  been                                                               
done.                                                                                                                           
                                                                                                                                
4:05:43 PM                                                                                                                    
TAMMY   MASSIE,   Habitat   Biologist,   Division   of   Habitat,                                                               
Southcentral,  Department of  Fish and  Game, Anchorage,  Alaska,                                                               
replied  when   the  survey  was   done  they   were  considering                                                               
subdividing parcels  into private  land. All  that land  has been                                                               
transferred  back to  the state.  The river  channels on  private                                                               
parcels  aren't relevant  anymore  since the  entire  lot is  now                                                               
owned by  the state. No more  recent survey has been  done; there                                                               
really isn't a need for one.                                                                                                    
                                                                                                                                
4:06:22 PM                                                                                                                    
CHAIR  BISHOP  closed   public  testimony  and  held   SB  61  in                                                               
committee.                                                                                                                      
                                                                                                                                
4:06:49 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Bishop adjourned the Senate Community and Regional Affairs                                                                
Committee meeting at 4:06 p.m.                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 106 - Comparison with Existing Statute.pdf SCRA 4/11/2017 3:30:00 PM
SB 106
SB 106 - CRA CS Version D.pdf SCRA 4/11/2017 3:30:00 PM
SB 106
SB 106 - Sectional.pdf SCRA 4/11/2017 3:30:00 PM
SB 106
SB 106 - Sponsor Statement.pdf SCRA 4/11/2017 3:30:00 PM
SB 106
SB 106 - Version A.pdf SCRA 4/11/2017 3:30:00 PM
SB 106