Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/25/2020 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| HB232 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 301 | TELECONFERENCED | |
| + | HB 232 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 232-MUNICIPAL TAX CREDITS
1:44:08 PM
CHAIR BISHOP announced the consideration of CS FOR HOUSE BILL
NO. 232(L&C), "An Act relating to a municipal air quality
improvement tax credit; and relating to a municipal energy
efficient construction tax credit."
1:44:39 PM
REPRESENTATIVE GRIER HOPKINS, Chair, House Labor & Commerce,
Alaska State Legislature, Juneau, Alaska, introduced HB 232
paraphrasing the sponsor statement.
Introduced at the request of the Fairbanks North Star
Borough, HB 232 gives municipalities new tools to
address challenges facing their communities and
stimulate local economies. HB 232 allows local
governments to offer municipal tax credits for home
and business owners who invest in property
improvements which result in increased energy
efficiency or improve local air quality. This bill
does not mandate any action by municipalities it
offers local governments additional avenues for
addressing local challenges and priorities and creates
partnerships with local businesses to stimulate and
diversify local economies.
Relying on the adage that local problems are best
solved through local solutions, HB 232 allows
municipal tax credits to be targeted towards new
construction that results in overall energy
efficiency. Additionally, the bill allows
municipalities facing chronic air quality issues to
offer tax credits to businesses and residents who make
investments that will result in a reduction in PM2.5
pollution.
It is the hope of the sponsor and the requesting
municipality that these tools will result in more
Interior Alaskans choosing to convert their home
heating systems and connect to the expanding Interior
Gas Utility, thereby maximizing the return on the
state's investment in the system. An additional
benefit of this legislation will be streamlining the
efforts of the Fairbanks North Star Borough and the
Department of Environmental Conservation on to improve
air quality in Interior Alaska.
The bill allows for maximum flexibility by
municipalities who choose to offer these credits,
avoiding a "top down" approach to local issues. This
simple "no harm" bill will foster new partnerships
with local contractors, businesses and homeowners.
Unleashing local creativity is critically important,
allowing local governments to harness the power of
private enterprise and address local challenges and
priorities where most effective and appropriate.
He advised that the bill has a zero fiscal note.
1:46:59 PM
REPRESENTATIVE HOPKINS said HB 232 is necessary because some
classes of municipalities cannot put forward property tax
credits unless they have statutory authority to do so. He would
like all municipalities to have this option. He said the bill is
supported by the Alaska Municipal League, the Alaska Miners
Association, the Alaska State Homebuilders Association, the
Usibelli Coal Mine, Aurora Energy, the Fairbanks North Star
Borough, the Interior Gas Utility, and the Cold Climate Housing
Research Center. He said that the bill was a good idea when it
was initially introduced, but it is even more important today
with the current economic situation. He said he envisioned local
government would work to implement tax credits to help put small
construction businesses back to work as this crisis begins to
pass. People can order almost anything online, but they cannot
order an electrician from Amazon or a local contractor on eBay.
These tax credits will provide another tool for local
governments to use to incentivize Alaskans to keep their dollars
local and help small businesses and homeowners. This tax credit
would be available for commercial and residential construction.
New buildings with lower costs, structured in ways that do not
impact the revenue streams of cash strapped municipalities. It
will help banks keep money moving, help new construction, and
provide improvements that do not cost the state or municipality
any money.
1:49:14 PM
REPRESENTATIVE HOPKINS delivered the following sectional
analysis for HB 232:
Section 1: Amends 29.45 to reinstate the Air Quality
Improvement Tax Credit which sunsetted in 2016. This
section applies only to local governments with areas
failing to meet federal or state air quality
standards. Improvements must have been made in the
preceding tax year. The municipality shall be
responsible for developing and implementing
eligibility standards and other criteria.
1:49:42 PM
Section 2: Amends 29.45 to create the Energy Efficient
New Construction Tax Credit, allowing municipalities
across the state to offer property tax credits to
offset the cost of new energy efficient construction
in the prior tax year. Municipalities choosing to
participate in this tax credit shall be responsible
for developing and implementing eligibility standards
and other criteria.
1:50:15 PM
SENATOR STEVENS questioned the necessity of the bill. He said
this is about local property taxes and it seems that
municipalities would have the right to use property taxes to
offer tax credits if that was their desire. He asked if that was
incorrect.
REPRESENTATIVE HOPKINS explained that the Fairbanks North Star
Borough does not have the authority to implement these tax
credits. First class and home rule cities have the authority,
but second class boroughs do not have that authority. The
authority must be in statute for the Fairbanks North Star
Borough to implement the tax credits. It would be helpful for
the local Interior gas utility this spring, he said.
SENATOR STEVENS summarized the answer.
1:51:49 PM
SENATOR REVAK said he liked that the bill incentivizes
businesses, does not cost the state anything, and assists the
Interior energy issue.
1:52:14 PM
SENATOR GRAY-JACKSON thanked him for bringing this forward.
1:52:28 PM
CHAIR BISHOP opened public testimony on HB 232.
1:52:51 PM
BRITTANY SMART, Special Assistant, Mayor Bryce Ward, Fairbanks
North Star Borough (FNSB), Fairbanks, Alaska, stated that HB 232
will give the FNSB the authority to establish programs to issue
tax credits. It will incentivize the community, help the
construction industry be more energy efficient, and help
projects that address air quality in the community.
1:53:41 PM
CHAIR BISHOP asked if the borough assembly would have to
implement the credit, should this bill become law.
MS. SMART answered yes; the assembly would ultimately need to
authorize the tax credit program.
1:54:17 PM
SENATOR STEVENS asked if the borough could essentially provide a
tax credit by making an exception to who it taxed.
MS. SMART replied she believes that the authority to decide who
to tax is limited in scope, so this legislation is needed for
the borough to implement the tax credit program it is proposing.
1:55:21 PM
AARON WELTERLEN, Alaska State Home Building Association (ASHA),
Fairbanks, Alaska, stated that both ASHA and the Interior Alaska
Building Association fully support HB 232. appreciate the
committee hearing this bill. It can incentivize construction and
provide opportunities for certain projects to be built. This
legislation at this uncertain time provides hope for a quicker
recovery.
1:56:09 PM
CHAIR BISHOP noted the conversations they'd had since the 2008
recession on lending to builders and suggested he look into a
bill on that point that is awaiting House concurrence.
MR. WELTERLEN answered that the association was following the
bill and was interested in what it could do to promote a ust
housing market.
1:58:01 PM
CHAIR BISHOP said he reviewed the letters of support and they
represent a great cross section of the Interior. He asked
Representative Hopkins if there had been any negative testimony
on the bill.
REPRESENTATIVE HOPKINS replied there was initial concern about
mandating action, but the bill would only provide the option.
Thus far there has been no opposition, he said. He noted there
was also interest from various Chambers of Commerce and the
hospitality industry association.
1:59:21 PM
CHAIR BISHOP summarized that the bill provides an option, 2nd
class boroughs need this authority to take advantage of the
option, and the package must be passed by the assembly.
REPRESENTATIVE HOPKINS agreed with the summary.
CHAIR BISHOP added that there is no fiscal impact to the state
treasury.
2:00:05 PM
CHAIR BISHOP solicited a motion.
2:00:07 PM
SENATOR STEVENS moved to report HB 232, work order 31-LS1355\E,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR BISHOP found no objection and CSHB 232(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 301 Draft L&C CS ver. O.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM SL&C 3/26/2020 1:30:00 PM |
HB 301 |
| HB 301 Public Comment received 03-24-20.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM SL&C 3/26/2020 1:30:00 PM |
HB 301 |
| HB 232 Sponsor Statement.pdf |
SL&C 3/25/2020 1:30:00 PM |
HB 232 |
| HB 232 Sectional Analysis ver. E.pdf |
SL&C 3/25/2020 1:30:00 PM |
HB 232 |
| HB 232 Testimony Received by 3-25-2020.pdf |
SL&C 3/25/2020 1:30:00 PM |
HB 232 |
| L&C Massage Theraspists Tri #6.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM |
Confirmations |
| L&C Real Estate Appraisers Lawrence #1.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM |
Confirmations |
| L&C Professional Counselors Patin #2.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM |
Confirmations |
| L&C Labor Relations Agency Burley #6.pdf |
SL&C 3/24/2020 1:30:00 PM SL&C 3/25/2020 1:30:00 PM |
Confirmations |