Legislature(1995 - 1996)
04/12/1995 01:40 PM Senate CRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
April 12, 1995
1:40 p.m.
MEMBERS PRESENT
Senator John Torgerson, Chairman
Senator Randy Phillips, Vice Chairman
Senator Tim Kelly
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Fred Zharoff
COMMITTEE CALENDAR
SENATE BILL NO. 79
"An Act relating to errors in surveys of land."
CS FOR HOUSE BILL NO. 86(CRA)(title am)
"An Act relating to municipal flat taxes on personal property and
permitting municipalities to classify and exempt or partially
exempt some or all types of personal property from ad valorem
taxes."
HOUSE BILL NO. 180
"An Act relating to liquor licenses issued to a hotel, motel,
resort, or similar establishment; and providing for an effective
date."
SENATE BILL NO. 124
"An Act relating to the human services community matching grant
program; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SB 79 - No previous action to record.
HB 86 - No previous action to record.
HB 180 - No previous action to record.
SB 124 - See Community & Regional Affairs minutes dated
4/7/95.
WITNESS REGISTER
Senator Steve Rieger, Prime Sponsor of SB 79
State Capitol
Juneau, AK 99801-1182
Bob Kean, Representing the Alaska Society of
Professional Land Surveyors
14510 Ahtena Circle
Anchorage, AK 99516
POSITION STATEMENT: Supports CSSB 79(CRA)
Tom Knox, Municipal Surveyor
Municipality of Anchorage
3500 Tudor Road
Anchorage, AK 99519
POSITION STATEMENT: Supports CSSB 79(CRA)
George Newsham
Municipality of Anchorage
632 W. 6th, Suite 730
Anchorage, AK 99519
POSITION STATEMENT: Supports CSSB 79(CRA)
Mike Horne
7801 E. 36th
Anchorage, AK 99504
POSITION STATEMENT: Testified in support of CSSB 79(CRA)
Craig Savage
P.O. Box 520403
Big Lake, AK 99652
POSITION STATEMENT: Opposes SB 79 in current form
William Mendenhall
1907 Yankovich Road
Fairbanks, AK 99709
POSITION STATEMENT: Supports CSSB 79(CRA)
John Bennett, President
Alaska Society of Professional Land Surveyors
3123 Penguin Lane
Fairbanks, AK 99712
POSITION STATEMENT: No position until review of CSSB 79(CRA)
George Strother, Engineering Division Manager
Matanuska-Susitna Borough
350 E. Dahlia
Palmer, AK 99645
POSITION STATEMENT: Has concerns with CSSB 79(CRA)
Representative Mark Hanley, Prime Sponsor of HB 86
State Capitol
Juneau, AK 99801-1182
Mayor Don Long, President, Alaska Municipal League
P.O. Box 629
Barrow, AK 99723
POSITION STATEMENT: Testified in support of HB 86
Steve Van Sant, State Assessor
Division of Municipal & Regional Assistance
Department of Community & Regional Affairs
333 W. 4th Ave., Suite 319
Anchorage, AK 99501
POSITION STATEMENT: Present to respond to questions on
HB 86
Tom Pitman, Municipal Assessor
Municipality of Anchorage
632 W. 6th Ave., 99519
POSITION STATEMENT: Supports HB 86
Barbara Cotting, Staff to Representative Jeannette James
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 180
Tim Tittle
4107 Wilson
Anchorage, AK 99503
POSITION STATEMENT: Supports HB 180
Pat Sharrock, Director
Alcoholic Beverage Control Board
550 W. 7th Ave., Suite 350
Anchorage, AK 99501-3510
POSITION STATEMENT: Testified in support of HB 180
ACTION NARRATIVE
TAPE 95-12, SIDE A
Number 001
CHAIRMAN TORGERSON called the Senate Community & Regional Affairs
Committee meeting to order at 1:40 p.m.
SB 79 ADJUSTMENTS FOR DEFECTIVE SURVEY
SENATOR TORGERSON introduced SB 79 as the first order of business.
SENATOR STEVE RIEGER, prime sponsor of SB 79, said the legislation
was requested by the Municipality of Anchorage and was prompted by
situations in the state where old surveys are so far off that the
standard judicial remedies for clearing up title aren't practical.
SB 79 creates an alternative mechanism for surveys which are
labeled "manifestly defective."
Senator Rieger explained the procedure in SB 79 allows a resurvey
and a replat to be submitted to a judge. The judge reviews the
information, including the objections from people who may object to
the replat, and then can decree an equitable replat of the area.
Because this expands judicial power, there are a number of
protections that are built into the legislation. One protection is
that the area involved pays the cost; there has to be a special
assessment district formed to pay for the resurvey, replat, legal
costs, etc. Also, the municipality has to adopt a resolution
supporting the procedure.
Senator Rieger said in working with the Society of Land Surveyors
and the municipal attorney on the legislation, there has been
concern expressed because this is breaking new ground. The
provision has been put into temporary law and it will apply for
three years so that, in a way, it doesn't sunset if it turns out
that there are problems that come up as a result of it.
Number 075
SENATOR R. PHILLIPS asked what the difference was between last
year's legislation that failed to pass the legislature and SB 79.
SENATOR RIEGER responded that the bill was totally rewritten and
restructured, but he believes that the general procedure being
prescribed is the same.
SENATOR R. PHILLIPS inquired if other areas of the state are having
the same problems as the Municipality of Anchorage. SENATOR RIEGER
replied that he is not aware of any other areas.
Number 107
SENATOR KELLY asked if the Municipality of Anchorage supports the
proposed committee substitute before the committee for its
consideration, and SENATOR RIEGER acknowledged that they do.
Number 118
SENATOR KELLY moved that CSSB 79(CRA) be adopted. Hearing no
objection, the motion carried.
Number 125
BOB KEAN, representing the Alaska Society of Professional Land
Surveyors and testifying from Cordova, stated support for CSSB
79(CRA).
Mr. Kean noted he has surveyed in the Rabbit Creek area of
Anchorage and he is very familiar with the problems there. He does
not believe there is another way of handling a complex problem of
this nature through the existing laws. He pointed out that there
are people who cannot sell their homes; they cannot make clear
title on them. Even with the people who may have taken steps to
resolve some of their property problems, the title companies will
still have difficulty in guaranteeing clear title, granting loans,
or the like.
Number 215
TOM KNOX, Municipal Surveyor for the Municipality of Anchorage,
testifying from Anchorage, said in the nine years he has worked
with the municipality, he has not had one month go by where he
hasn't had at least one property owner from the two plat areas that
the bill has basically been drafted to remedy, call him up and
discuss the survey problems which they have encountered in trying
to either sell their property, or to improve their property, or to
replat their property lines to purchase other lots around them.
Mr. Knox noted that the municipality has received letters from
financial institutions asking them what type of remedy could be
applied in order to rectify the situation.
Mr. Knox stated his support for the committee substitute.
Number 290
GEORGE NEWSHAM, Municipality of Anchorage, testifying from
Anchorage, stated CSSB 79(CRA) is a greatly improved version of the
legislation that was before the legislature last year. He spoke to
major improvements in the legislation such as the requirement that
prior to implementing any action a improvement district be formed,
and it gives a clearer understanding of what the process will be
after an improvement district is formed.
Number 330
MIKE HORNE, a registered land surveyor in Anchorage, voiced his
support for the committee substitute, as well as the comments of
the previous speakers.
Number 340
CRAIG SAVAGE, a registered land surveyor testifying from Anchorage,
stated his strong opposition to the legislation in its present
form. He noted there is not a single similar piece of legislation
anywhere else in the U.S. He said the legislation is an attempt to
establish a process by which owners can find relief from their
impasse, and, so long as they are willing to pay to implement the
process that solution is workable, but funding the process through
a special assessment is unfair, unnecessarily cumbersome, and will
be even more expensive than it needs to be. He added that it is a
well-intentioned bill in an attempt to assist people with economic
difficulties, but it is unfair because it exacts payment of a share
of the cost from owners who may not need help and/or may not want
help.
Number 415
WILLIAM MENDENHALL, testifying from Fairbanks, stated his basic
support for the legislation.
Number 425
JOHN BENNETT, President, Alaska Society of Professional Land
Surveyors, testifying from Fairbanks, said in recognizing the
serious nature of the survey problem, a committee was formed to
find out whether or not there were solutions outside of legislative
action that would be appropriate. The committee issued their
findings and came up with a substitute bill. He said he has been
in contact with their board of directors and also the chapters on
this matter, and a head count taken yesterday resulted in a 6-6
split as far as support or opposition to the original proposed
legislation. However, the new committee substitute has not been
reviewed by their committee or any of the their members, so he does
not believe that they can support it until they have had an
opportunity to fully review it.
Number 450
SENATOR TORGERSON asked if the committee substitute adopted by the
committee was the same substitute recommended by the Society's
committee. SENATOR RIEGER answered that it was except that because
of the sunset nature of the bill the drafters were unwilling to put
it into the Earthquake Relief Act with that sunset provision. All
the parts that are elsewhere that apply were put into this
temporary law, so, although the content is the same, the placement
is not.
Number 460
SENATOR R. PHILLIPS asked what was the main concern of the six
people who were opposed to the original legislation and MR. BENNETT
responded that basically his head count was of whether they either
supported or opposed the general concept of a legislative solution.
Number 477
GEORGE STROTHER, Engineering Division Manager, Matanuska-Susitna
Borough, testifying from the Mat-Su LIO, stated the committee
substitute is much better than the original bill, but he cannot
fully support it at this time. He outlined several areas of
concern and suggested the bill needs some fine tuning, which would
make it more workable, but there are still some other concerns. He
reiterated that the committee substitute is better, but he could
not support it at this time.
Number 558
SENATOR TORGERSON requested that Mr. Strother fax his testimony
outlining his areas of concern with the committee substitute, and
stated that because C&RA was the only committee of referral, the
bill would be held over until the following week so that he could
look at his objections to the actual wording in the language of the
bill and share that with the sponsor of the bill. He also invited
others with areas of concern to forward them to the committee.
CSHB 86(CRA) (title am) MUNICIPAL PERSONAL PROPERTY TAXATION
SENATOR TORGERSON introduced CSHB 86(CRA) (title am) as the next
order of business.
REPRESENTATIVE MARK HANLEY, prime sponsor of HB 86, explained that
the legislation allows municipalities to exempt or partially exempt
personal property from ad valorem taxes. It also allows
municipalities to levy a flat tax on personal property that has
been exempted.
Representative Hanley noted that the 18th Alaska State Legislature
passed SSHB 263, which allowed the exemption of certain types of
personal property from taxation, but did not allow for a flat rate
tax to be levied as was intended. The legislation before the
committee is clean-up legislation, and in addition to allowing the
flat tax, wording has been changed to allow exemption of any type
of personal property, as defined in AS 29.71.800 (16), rather than
listing each item.
TAPE 95-12, SIDE B
Number 001
REPRESENTATIVE HANLEY noted that this is an option for the
municipalities and will give them more flexibility in their tax
structure. It does not affect the amount of money that comes to
the state, nor the assessments for any other purposes.
Number 015
SENATOR TORGERSON commented that the only part of the bill that he
had even a little problem with was the procedure for the appeal and
the request that the municipalities would include that procedure in
their flat tax ordinance. His concern was that an appeal procedure
could be substantially different from municipality to municipality,
based on what was adopted by that particular group. However, he
has discussed this with the state assessor and he convinced him
that it is probably something that couldn't be put into statute and
is best left at the local level.
Number 025
MAYOR DON LONG of Barrow, President of the Alaska Municipal League,
testifying from Barrow, stated the Alaska Municipal League's
support for HB 86.
Mayor Long said the bill offers municipalities an alternative that
may significantly reduce the administrative costs of property
valuation. It also allows communities the flexibility to design a
tax on personal property that meets the needs of that community.
Mayor Long pointed out that over the past several years the state
has asked its municipalities to take over and pay for more and more
state programs and services, and he said it is essential that the
state also provide municipalities with more flexible methods of
designing taxes so the cost of new mandates can be fairly
distributed to all residents.
Number 045
STEVE VAN SANT, State Assessor, Department of Community & Regional
Affairs, noted he was present in Anchorage to answer questions on
the legislation.
Number 050
TOM PITMAN, Municipal Assessor, Municipality of Anchorage, stated
his support for the bill and the flexibility it provides,
especially from his perspective of administrating the law.
Number 065
There being no further testimony on the legislation, SENATOR
TORGERSON asked for the will of the committee.
SENATOR R. PHILLIPS moved that CSHB 86(CRA)(title am) be passed out
of committee with individual recommendations. Hearing no
objection, it was so ordered.
HB 180 LIQUOR LICENSES FOR RESORT/LODGES
SENATOR TORGERSON brought HB 180 before the committee.
BARBARA COTTING, staff to Representative Jeannette James, said HB
180 will allow businesses in more remote areas of organized
boroughs to get a liquor license. Presently, a small lodge or
tourist facility in a remote or inaccessible area or an organized
borough has to have 40 rental rooms to obtain a liquor license.
She said the sponsor is trying to make this change so that there
will not be such stringent requirements in those small remote
areas, which will allow some development of tourist facilities.
Number 090
TIM TITTLE, testifying from Anchorage, related that his brother
owns a lodge on the Denali Highway. He said right now, in order to
establish the infrastructure to build a small lodge with 10 to 15
rooms, which would accommodate fishermen, snow machiners, tourists,
etc., the minimum cost would be around $500,000. To require these
individuals who would like to go into this type of a business to
build another 25 or 30 rooms would require an additional investment
of approximately $300,000, and business people that would like to
get into this type of an enterprise will not do it because it
doesn't capitalize out.
Mr. Tittle stated his support for HB 180, saying that it will be
great for economic development in these remote areas.
Number 120
PAT SHARROCK, Director, Alcoholic Beverage Control Board, testified
from Anchorage that the ABC Board supports HB 180.
SENATOR HOFFMAN said there are several lodges out in the Bristol
Bay region, and he asked how many lodges will be impacted as a
result of HB 180. He also noted there has been discussion on
annexing the whole Bristol Bay region into a borough. PAT SHARROCK
did not know the number of lodges that would be impacted. He said
the legislation applies only to those businesses that reside within
the boundaries of a municipality or borough. If a business is
located outside in the unincorporated area, there are different
rules of the road under AS 04.11.400 relating to population
limitations and the number of licenses within a five-mile radius.
Number 140
SENATOR TORGERSON directed attention to a his proposed amendment to
HB 180 and explained that subparagraphs (A), (B) & (C) are
basically the same language currently in HB 180. The new
subparagraph (4) defines "highway" to read more directly to what
the intent of the sponsor was, which was state maintained roads for
public transportation.
SENATOR KELLY moved the adoption of the following amendment:
Amendment No. 1
Page 2, lines 8 thru 13: Delete language in paragraph (3) and
replace with the following language:
"(3) A hotel, motel, resort, or similar business that is inside a
unified municipality or organized borough and
(A) has at least 10 rooms available for the public to
rent;
(B) cannot be reached by highway from the nearest first
or second class city or established village; or
(C) could be reached by highway during no more than 10
months in a calendar year preceding the year in which the issuance
or transfer is requested."
Add new paragraph (4) to read:
"(4) "Highway" for purposes of this section is a road
maintained by the state for public transportation."
Hearing no objection to the adoption of the amendment, the motion
carried.
SENATOR KELLY moved that SCS HB 180(CRA) be passed out of committee
with individual recommendations. Hearing no objection, it was so
ordered.
Number 180
SB 124 HUMAN SERVICES COMMUNITY MATCHING GRANTS
SENATOR TORGERSON brought SB 124 , which had a hearing on April 7,
back before the committee and asked for the pleasure of the
committee.
SENATOR KELLY moved that SB 124 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 2:45 p.m.
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