04/10/2010 01:00 PM Senate FINANCE

CS FOR HOUSE BILL NO. 10(FIN)                                                                                                 
                                                                                                                                
     "An  Act authorizing  a borough  to charge  a city  for                                                                    
     costs  of  collecting  certain  taxes;  relating  to  a                                                                    
     mandatory exemption  from municipal property  taxes for                                                                    
     residences  of  certain  widows  or  widowers,  and  to                                                                    
     optional exemptions  from municipal property  taxes for                                                                    
     property  of   certain  fraternal   organizations,  for                                                                    
     certain college  property, and for  certain residential                                                                    
     property; and providing for an effective date."                                                                            
                                                                                                                                
Co-Chair Stedman reported that it was the second hearing on                                                                     
the bill.                                                                                                                       
                                                                                                                                
Senator Egan MOVED to ADOPT Amendment 1:                                                                                        
                                                                                                                                
     Page 3, lines 10 - 13:                                                                                                     
                                                                                                                                
     Delete all material and insert:                                                                                            
                                                                                                                                
     "(10) property not exempt under (3) of this subsection                                                                     
     that (A) is owned by a private or nonprofit college or                                                                     
     university that is accredited by a regional or                                                                             
     national accrediting agency recognized by the Council                                                                      
     for Higher Education Accreditation or the United                                                                           
     States Department of Education, or both; and (B) was                                                                       
    subject to a private leasehold, contract, or other                                                                          
     private interest on January 1, 2010."                                                                                      
                                                                                                                                
     Page 5, lines 2 - 5:                                                                                                       
                                                                                                                                
     Delete all material and insert:                                                                                            
                                                                                                                                
     "(10) property not exempt under  (3) of this subsection                                                                    
     that (A) is owned by  a private or nonprofit college or                                                                    
     university  that   is  accredited  by  a   regional  or                                                                    
     national accrediting  agency recognized by  the Council                                                                    
     for  Higher  Education   Accreditation  or  the  United                                                                    
     States Department  of Education,  or both; and  (B) was                                                                    
     subject  to a  private  leasehold,  contract, or  other                                                                    
     private interest on January 1, 2010."                                                                                      
                                                                                                                                
     Page 6, lines 18 - 23:                                                                                                     
                                                                                                                                
     Delete all material and insert:                                                                                            
                                                                                                                                
     "(10) property not exempt under  (3) of this subsection                                                                    
     that [(A)] is  owned by a private  or nonprofit college                                                                    
     or  university  that is  accredited  by  a regional  or                                                                    
     national accrediting  agency recognized by  the Council                                                                    
     for  Higher  Education   Accreditation  or  the  United                                                                    
     States Department of Education,  or both, except that a                                                                    
     private leasehold,  contract, or other interest  in the                                                                    
     property  is  taxable  to the  extent  of  the  private                                                                    
     interest  [;   and  (B)  WAS   SUBJECT  TO   A  PRIVATE                                                                    
     LEASEHOLD, CONTRACT, OR OTHER PRIVATE INTEREST ON                                                                          
     JANUARY 1, 2010]."                                                                                                         
                                                                                                                                
Co-Chair Stedman OBJECTED.                                                                                                      
                                                                                                                                
Senator Egan  explained that the  amendment tightens  up the                                                                    
private university portion of  the bill. With the amendment,                                                                    
the bill  fixes a problem that  exists and makes sure  a new                                                                    
lease  does  not qualify  for  the  exemption. The  sponsor,                                                                    
Alaska  Pacific University  (APU),  and  the mayor's  office                                                                    
have no opposition to the amendment.                                                                                            
                                                                                                                                
Senator Olson asked  if APU was in favor.  Senator Egan said                                                                    
it was.                                                                                                                         
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION  to Amendment  1.                                                                    
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Stedman noted fiscal notes.                                                                                            
                                                                                                                                
1:21:29 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to  REPORT  SCS  CSHB  10  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 10  (FIN) was REPORTED out of Committee  with a "do                                                                    
pass" recommendation and with a  new zero fiscal note by the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
AT-EASE             1:21:59 PM                                                                                                
                                                                                                                                
RECONVENED          6:43:31 PM