02/20/2014 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB157 | |
| HB223 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 157 | TELECONFERENCED | |
| + | HB 223 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
February 20, 2014
3:33 p.m.
MEMBERS PRESENT
Senator Peter Micciche, Chair
Senator Cathy Giessel, Vice Chair
Senator Dennis Egan
Senator Click Bishop
Senator Lyman Hoffman
MEMBERS ABSENT
All members present
OTHER LEGISLATORS PRESENT
Representative Steve Thompson
COMMITTEE CALENDAR
SENATE BILL NO. 157
"An Act relating to municipal fire protection service area
boundary changes."
- MOVED SB 157 OUT OF COMMITTEE
HOUSE BILL NO. 223
"An Act authorizing municipalities to exempt or partially exempt
for up to 10 years property in a military facility zone that
creates or supports industry, development, or educational or
training opportunities."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 157
SHORT TITLE: FIRE PROTECTION SERVICE AREAS
SPONSOR(s): SENATOR(s) COGHILL
02/05/14 (S) READ THE FIRST TIME - REFERRALS
02/05/14 (S) CRA
02/18/14 (S) CRA AT 3:30 PM BUTROVICH 205
02/18/14 (S) Heard & Held
02/18/14 (S) MINUTE(CRA)
02/20/14 (S) CRA AT 3:30 PM BUTROVICH 205
BILL: HB 223
SHORT TITLE: MUNI TAX EXEMPTION: MIL. FACILITY ZONE
SPONSOR(s): REPRESENTATIVE(s) THOMPSON, ISAACSON, SADDLER, TARR
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) CRA
02/04/14 (H) CRA AT 8:00 AM BARNES 124
02/04/14 (H) Moved Out of Committee
02/04/14 (H) MINUTE(CRA)
02/05/14 (H) CRA RPT 5DP 1NR
02/05/14 (H) DP: FOSTER, OLSON, REINBOLD, LEDOUX,
NAGEAK
02/05/14 (H) NR: HERRON
02/07/14 (H) TRANSMITTED TO (S)
02/07/14 (H) VERSION: HB 223
02/10/14 (S) READ THE FIRST TIME - REFERRALS
02/10/14 (S) CRA
02/20/14 (S) CRA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
HANS RODVIK, Staff
Senator Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed SB 157.
JANE PIERSON, Staff
Representative Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of HB 223.
MCHUGH PIERRE, Deputy Commissioner
Military & Veterans Affairs
Fort Richardson, Alaska
POSITION STATEMENT: Addressed HB 223 questions.
LUKE HOPKINS, Mayor
Fairbanks North Star Borough
Fairbanks, Alaska
POSITION STATEMENT: Supports HB 223.
JIM DODSON, Director
Fairbanks Economic Development Corporation
Fairbanks, Alaska
POSITION STATEMENT: Supports HB 223.
ACTION NARRATIVE
3:33:43 PM
CHAIR PETER MICCICHE called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:33 p.m. Present
at the call to order were Senators Egan, Bishop, Hoffman,
Giessel, and Chair Micciche.
3:34:25 PM
CHAIR MICCICHE announced that the committee will be hearing two
bills, SB 157 and HB 223. He noted that SB 157 will be heard for
the second time and HB 223 for the first time.
SB 157-FIRE PROTECTION SERVICE AREAS
3:35:02 PM
HANS RODVIK, Staff, Senator Coghill, Alaska State Legislature,
Juneau, Alaska; said SB 157 relates to fire service boundary
changes. He set forth that the goal for SB 157 is to ensure that
the public is receiving the fastest service possible during an
emergency situation, particularly fires. He explained that SB
157 will ensure faster service by streamlining the process for
changing fire service area boundaries. He specified that
property owners will be allowed to request removal of their land
parcels so long as they go through the proper ordinances set out
be municipalities. He noted that another letter of support was
received from the Alaska Municipal League.
SENATOR HOFFMAN thanked Senator Coghill on behalf of his
constituents from District S for introducing SB 157.
CHAIR MICCICHE called attention to SB 157's letters of support.
He asked if anyone would like to testify.
3:37:17 PM
CHAIR MICCICHE closed public testimony.
3:37:27 PM
SENATOR GIESSEL moved to pass SB 157, version 28-LS1329\N from
committee with individual recommendations and accompanying zero
fiscal note.
3:37:40 PM
CHAIR MICCICHE announced that seeing no objections, SB 157 moved
from committee.
3:37:48 PM
CHAIR MICCICHE announced that the committee will stand at ease.
CHAIR MICCICHE called the committee back to order.
HB 223-MUNI TAX EXEMPTION: MIL. FACILITY ZONE
3:39:33 PM
CHAIR MICCICHE announced that HB 223 is before the committee for
the first time. He said it is not his intent to pass HB 223 at
today's committee meeting. He added that HB 223 will be heard
again at the committee's next meeting.
3:39:56 PM
JANE PIERSON, Staff, Representative Thompson, Alaska State
Legislature, Juneau, Alaska; said HB 223 is an act authorizing
municipalities to exempt or partially exempt for up to ten years
property in a Military Facility Zone (MFZ) that creates or
supports industry development or educational training
opportunities. She detailed that HB 223 gives permissive
authority for a local government to seek up to ten years of full
or partial property tax exemptions for a business in a MFZ. She
said the needs of each community with a military installation
are unique. She asserted that HB 223 provides broad authority
for local property tax exemption to be specifically defined by
the individual community to provide the maximum benefit to their
installations and their regions. She explained that MFZs were
established in the 27th Legislature; their designated areas in
close proximity to a military base where industrial or economic
development will directly enhance the base's ability to fulfill
its mission. She detailed that MFZs are used in other states as
vehicles to obtain and administer funds for business development
directly related to the facility by expansion of infrastructure
that benefits both the military facility and civilian
objectives. She said HB 223 was drafted after Representative
Thompson was approached by the Fairbanks North Star Borough
(FNSB). She noted that FNSB is currently working on establishing
MFZs in the Interior. She pointed out that the military industry
in Fairbanks contributes towards 30 percent of the FNSB's gross
community product and 38 percent of FNSB's total labor dollars.
She informed the committee that Fairbank's military base is one
of FNSB's largest economic drivers. She noted that FNSB narrowly
escaped having Eielson Air Force Base closed by the Base Closure
and Realignment Commission (BRAC) in 2005 and recently Eielson
nearly lost the F-16 fighter aircraft basing.
3:42:08 PM
MS. PIERSON continued that HB 223 will expand on the financial
incentives provided by HB 316; it is one more tool for local
governments to create better partnerships with the military
installations in their communities. She said providing tax
exemption authority to communities with the MFZ will provide
added support to the Armed Services' mission to enhance economic
development opportunities, assist in making Alaska's military
installations the best value choice for expansion, and help
defend against potential negative impact from force reduction or
closure.
SENATOR GIESSEL asked if HB 223 was the same bill from the
previous session.
MS. PIERSON stated that HB 223 is an expansion on the previous
bill. She specified that HB 223 will provide the ability for
local communities to give property tax exemptions for businesses
that support the military.
CHAIR MICCICHE asked to verify that HB 223 will allow but does
not require a municipality to provide tax breaks.
MS. PIERSON answered correct.
SENATOR BISHOP asked for an example of a business that might
come into a community and take advantage of HB 223.
MS. PIERSON replied that additional businesses may come into
Fairbanks if Eielson Air Force Base was to get the F-35s. She
noted an example of a business that warehouses and possibly
builds aircraft parts.
3:44:59 PM
SENATOR BISHOP asked if HB 223 will cover the drone program that
is coming to Alaska.
MS. PIERSON answered that she would hope so.
CHAIR MICCICHE asked Deputy Commissioner Pierre to address the
committee.
3:45:34 PM
MCHUGH PIERRE, Deputy Commissioner, Military & Veterans Affairs
(DMVA), Fort Richardson, Alaska; revealed that DMVA will
administer the MFZ application. He explained that DMVA created
the MFZ regulations and will work with communities as they come
forward. He said DMVA's goal is to make sure Alaska has a very
positive environment for the military to do business. He pointed
out that Representative Thompson has addressed community desires
to offer local tax incentives with HB 223.
3:46:48 PM
CHAIR MICCICHE opened public testimony.
3:47:04 PM
LUKE HOPKINS, Mayor, Fairbanks North Star Borough, Fairbanks,
Alaska; explained that HB 223 was somewhat of a germinal idea
from FNSB. He noted the importance in the passage of HB 316
during the 27th Legislature [to establish Military Facility
Zones]. He said FNSB and DMVA have had discussions with
companies and corporations on how to attract businesses to FNSB.
He noted the importance in strengthening Alaska's military
commitment in FNSB and through the state. He called attention to
the positive economic impact when Air Force bases get F-35s and
the businesses that follow. He added Senator Bishop's question
regarding Unmanned Aerial Vehicles and the positive business
impact for FNSB. He noted that HB 223 will assist FNSB in
partnering with the University of Alaska-Fairbanks to reach out
to businesses as fast as possible. He summarized that HB 223
will allow local municipalities with the option to offer MFZ tax
deferments or exemptions.
3:50:04 PM
CHAIR MICCICHE welcomed Representative Thompson to the committee
meeting.
3:50:26 PM
JIM DODSON, Director, Fairbanks Economic Development
Corporation, Fairbanks, Alaska; announced his support for HB
223. He read the following statement:
HB 223 coupled with the previous action of the
legislature passing the MFZs, provides municipalities
with an opportunity to attract private industry to
come to their communities that are co-located with
military bases to do business with the military.
MR. DODSON emphasized that MFZ tax exemptions will be at the
discretion of a municipality. He summarized that MFZ tax
exemptions will allow the state to continue economic
diversification and give communities a chance to grow their tax
base.
3:51:23 PM
CHAIR MICCICHE announced that public testimony will be left open
for the next committee meeting with the intent to pass HB 223
out of committee at that time. [HB 223 is held in committee.]
3:51:56 PM
There being no further business to come before the committee,
Chair Micciche adjourned the Senate Community and Regional
Affairs Standing Committee at 3:51 p.m.