02/13/2008 01:30 PM House FINANCE

HOUSE BILL NO. 285                                                                                                            
                                                                                                                                
     "An  Act   relating  to   an  optional  exemption   from                                                                   
     municipal  property taxes for  residences of  widows and                                                                   
     widowers of  certain members of the armed  forces of the                                                                   
     United States; and providing  that this Act may be known                                                                   
     as the Sergeant Irving Hernandez, Jr., Act."                                                                               
                                                                                                                                
KAREN  LIDSTER,  STAFF, REPRESENTATIVE  JOHN  COGHILL,  spoke                                                                   
regarding  HB  285. She  explained  that  the bill  had  been                                                                   
brought  to Representative  Coghill's  office  as a  petition                                                                   
through  Fairbanks  North  Start  Borough.  The  widow  of  a                                                                   
soldier  who   wants  to  stay   in  the  area   was  seeking                                                                   
assistance.  House Bill  285 asks for  an optional  exemption                                                                   
from municipal  property taxes  for residences of  widows and                                                                   
widowers  of  certain members  of  the  armed forces  of  the                                                                   
United States.                                                                                                                  
                                                                                                                                
Ms. Lidster referred  to a sectional that shows a  few of the                                                                   
changes that were  made in the previous committee  (On File).                                                                   
The  specific name  of the  soldier  was removed  as well  as                                                                   
language  limiting time.  The  bill as  it  stands gives  the                                                                   
municipality as  much leeway as  needed to decide  whether to                                                                   
have the exemption and to set up application standards.                                                                         
                                                                                                                                
2:43:12 PM                                                                                                                    
                                                                                                                                
Vice-Chair Stoltze  wondered about the status  of "missing in                                                                   
action  but not  declared dead"  soldiers.  Ms. Lidster  said                                                                   
that had  not been  discussed during  the review by  Military                                                                   
and  Veterans  Affairs. Vice-Chair  Stoltze  voiced  concerns                                                                   
about whether the language was broad enough.                                                                                    
                                                                                                                                
Representative    Hawker    wondered    if    the    language                                                                   
qualifications  "armed  forces  of  the  United  States"  and                                                                   
"eligible for  hostile fire or  imminent danger  pay" include                                                                   
all the  people the sponsor intends  to include. He  asked if                                                                   
there  were organizations  that  could  be perceived  as  not                                                                   
being included. For example, would  it include National Guard                                                                   
units detached and  serving on active duty.  Ms. Lidster said                                                                   
she would have that clarified.                                                                                                  
                                                                                                                                
2:47:15 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  wanted the  language  to include  the                                                                   
exact meaning  and scope intended. Vice-Chair  Stoltze agreed                                                                   
with Representative Hawker regarding  inclusiveness. He cited                                                                   
an example  of a group  that did  not achieve veteran  status                                                                   
until there was an act of Congress.                                                                                             
                                                                                                                                
2:49:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault opened public testimony.                                                                                      
                                                                                                                                
SUSAN FERNANDEZ,  SELF (TESTIFIED VIA TELECONFERENCE),  spoke                                                                   
in support  of HB  285. Ms. Fernandez  identified herself  as                                                                   
the widow of  Sergeant Irving Hernandez, Jr.,  who was killed                                                                   
in  Iraq  on  July 12,  2006.  She  described  her  financial                                                                   
difficulties  after losing  half their  income. She  wants to                                                                   
stay in Alaska with her children.                                                                                               
                                                                                                                                
2:51:12 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer closed public testimony.                                                                                         
                                                                                                                                
Co-Chair  Chenault  wondered  if  the bill  pertains  to  all                                                                   
military members  killed in  the line of  duty going  back to                                                                   
World  War   II,  or  if  there   is  a  cut-off   date.  His                                                                   
understanding  was  that  the municipalities  would  set  the                                                                   
parameters regarding who would qualify.                                                                                         
                                                                                                                                
Representative  Thomas wondered  if  a widow  would lose  the                                                                   
exemption through remarriage.                                                                                                   
                                                                                                                                
2:53:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHN  COGHILL, SPONSOR, answered  that details                                                                   
could  be  worked  out  in  each  community.  He  anticipated                                                                   
different communities  would and should make  different rules                                                                   
depending on local circumstances.                                                                                               
                                                                                                                                
Representative  Thomas referred  to  the case  of a  national                                                                   
guardsman who was  killed in Iraq who had been  living with a                                                                   
woman and  their children and  wondered if she would  also be                                                                   
considered a widow. Representative  Coghill answered that his                                                                   
intent in the  bill was that whoever is entitled  to survivor                                                                   
benefits  under  the  law  would   be  entitled  to  the  tax                                                                   
exemption. Representative Thomas  thought the point should be                                                                   
made on the floor.                                                                                                              
                                                                                                                                
Vice-Chair Stoltze reiterated that the program is optional.                                                                     
                                                                                                                                
2:56:06 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault  MOVED to report CSHB 285  out of Committee                                                                   
with individual recommendations  and accompanying fiscal note                                                                   
#1. There being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
CSHB  285 (CRA)  was REPORTED  out  of Committee  with a  "do                                                                   
pass" recommendation and with  zero note #1 by the Department                                                                   
of Commerce, Community and Economic Development.                                                                                
                                                                                                                                
2:58:07 PM