SENATE BILL NO. 210 "An Act relating to the community revenue sharing program; changing the name of the community revenue sharing program to the community assistance program; and relating to the municipal property tax exemption on the residence of a senior, a disabled veteran, and a widow or widower of a senior or disabled veteran." 2:00:20 PM LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, explained SB 210: With a $3.7 billion shortfall for Fiscal Year 2016 and a projected shortfall of $4 billion for Fiscal Year 2017, the legislature is examining programs that were created to provide assistance to communities when Alaska was experiencing surplus revenues due to the high price of oil. In 2008, the legislature created the Community Revenue Sharing program, which distributes funds to communities to be spent at their discretion. The program was established under the principle that when oil revenues were high, the wealth would be shared with local communities. Senate Bill 210 proposes changes to the program, allowing for communities to continue to receive assistance, while establishing a structure to phase out the program as originally intended when created. Additionally, the legislature has heard concerns from communities throughout Alaska about the burden unfunded mandates, enacted by the legislature, places on local governments. At low oil prices, the burdens on communities are enhanced and even limits local decision making. Under SB 210, discretion is returned to the local communities to enact certain property tax exemptions. This would allow communities to structure their tax exemptions to serve their residents and meet the needs of the communities to the maximum extent possible. Senate Bill 210, helps communities transition to more local control, while continuing to receive assistance from the state as they become less reliant on state resources to support local government. Co-Chair MacKinnon requested a sectional analysis. Ms. Cramer discussed the Sectional Analysis (copy on file): Section 1: Updates AS 28.10.181(d) reflecting the repeal of AS 29.45.030(i) and inserts reference to AS 29.45.050(x) where the definition of "disabled veteran" is now located as a result of this legislation Section 2: Updates the program name change "community assistance" in AS 29.20.640(b) Section 3: Updates the program name change "community assistance" in AS 29.45.020 Section 4: Updates AS 29.46.030(h) reflecting the repeal to 29.46.030(e) - (h) and (j) Section 5: Moves repealed language under AS 29.45.030(k) to this section Section 6: Updates AS 29.45.040(f) reflecting the repeal of AS 29.45.030(i) reference to AS 29.45.050(x) where the definition of "disabled veteran" is now located as a result of this legislation Section 7: Amends AS 29.45.050(i) allowing a municipality to exempt real property from taxation making it optional under state statute and places widow or widower as a qualifier under this section Section 8: Adds the definition of "disabled veteran" and "widow or widower" to AS 29.45.050(x) Section 9: Moves repealed language under AS 29.45.030(e) and AS 29.45.030(i) to this section Section 10: Updates the program name change "community assistance" in AS 29.45.660(b) Section 11: Updates the program name change "community assistance" in AS 29.60.810 (A) Section 12: Updates the program name change "community assistance" in AS 29.60.850 and reduces the minimum balance to $15,000,000 Section 13: Updates the program name change "community assistance" in AS 29.60.855, changes the basic amount to $384,000, and directs the department to reduce the basic amount pro rata if the fund balance is less than $15,000,000 Section 14: Updates the program name change "community assistance" in AS 29.60.860(a) Section 15: Updates the program name change "community assistance" in AS 29.60.860(b) Section 16: Updates the program name change "community assistance" in AS 29.60.865 Section 17: Adds the community assistance program to the definition of "state money" in AS 29.71.040(h)(2) - Procurement Preference Section 18: Updates the program name change "community assistance" in AS 36.10.090(b) Section 19: Adds the community assistance program to AS 36.10.125(c) - employment preferences Section 20: Adds the community assistance program to the definition of "state money" in AS 36.15.050(h)(3) - Alaska Product Preference Section 21: Adds the community assistance program to AS 44.33.020(a) (20) requiring the Department of Commerce, Community and Economic Development to administer the program Section 22: Updates the program name change "community assistance" in AS 46.07.080(2)(iii) Section 23: Repeals AS 29.45.0303(a)(6), 29.45.030ΒΌ 29.45.030(f), 29.45.030(g), 29.45.030(i), and 29.45.030(k) 2:06:42 PM Co-Chair MacKinnon queried recommendations from the committee. Co-Chair MacKinnon stressed that the state was in a $4 billion deficit. Co-Chair Kelly shared a history of the state's unfunded liability. Co-Chair MacKinnon stressed that the suite of bills attempted to address the holes in Alaska's budget. She remarked that the bills would provide an opportunity for communities to understand the state's problems. She stressed that the committee was attempting to address the long-term fiscal problem, and the state could not continue to address the major issue with budget. She remarked that the funds were not available to continue to invest in the same way as it had in the past. SB 210 was HEARD and HELD in committee for further consideration.