Legislature(2023 - 2024)BARNES 124
04/18/2023 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB77 | |
| HB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 77 | TELECONFERENCED | |
| += | HB 99 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 77-MUNI PROP TAX EXEMPTION/TAX BLIGHTED PROP
8:05:19 AM
CHAIR MCCORMICK announced that the first order of business would
be CS FOR SENATE BILL NO. 77(CRA) am, "An Act relating to
municipal property tax; and providing for an effective date."
8:05:35 AM
SENATOR FORREST DUNBAR, Alaska State Legislature, as prime
sponsor, presented SB 77, which is the companion to HB 84 from
Representative Sumner that would provide two optional tools to
municipalities for the purposes of (indisc.) construction and
property development. He offered his understanding that there
may be an amendment offered today in reference to defining the
term "blighted".
8:06:58 AM
CHAIR MCCORMICK opened public testimony on CSSB 77(CRA).
8:07:20 AM
MARGARET AUTH, representing self, testified in support of SB 77.
She explained she has lived in Spenard [Anchorage], Alaska, for
35 years and is an active member of the Spenard Community
Council. She described her activity working in code enforcement
to try to get some movement on abandoned and derelict
properties, as well as working with the assembly to make housing
more affordable. She pointed out that the abandoned houses tend
to be used for drug dens and squatters, which in turn can also
become fire hazards and lead to lower property values.
8:10:59 AM
ARI BARGIL, Senior Attorney, Institute for Justice, stated his
concern is that there is no definition of "blight", and his
interest is in finding out what the proposed amendment will
contain.
8:13:17 AM
CHRIS SCHUTTE, representing self, testified in support of SB 77.
He stated the timing of the bill is critical; housing is in dire
need in Alaska, and the costs of construction of new homes are
at all-time highs. He encouraged the committee to pass the bill
and allow the state to help develop neighborhoods and
communities across Alaska.
8:14:35 AM
SAM SPIEGELMAN, Attorney, Pacific Legal Foundation, cautioned
that the lack of definition for any sort of "blight" opens
floodgates for local abuse of the definition.
8:17:54 AM
BETHANY MARCUM, Alaska Policy Forum, testified in opposition to
SB 77. She stated the bill under consideration would give
Alaska's boroughs and municipalities "carte blanche" to call
commercial and some personal properties "blighted," and then
levy taxes on those properties. As written, there are no
guardrails for defining what constitutes "blighted" property to
protect Alaska property owners from this "government overreach."
8:20:51 AM
DENNIS HULL, Americans for Tax Reform, testified in opposition
to SB 77. He stated that it would be one of the broadest
frameworks for local blight tax authorizations in the nation,
and municipalities would have to ability to adopt any definition
of "blight" that they like, as well as impose a very heavy new
tax burden amongst the 60 percent.
8:23:32 AM
CHAIR MCCORMICK, after ascertaining that there was no one else
who wished to testify, closed public testimony on SB 77.
8:23:47 AM
MIKE ROBBINS, Executive Director, Anchorage Community
Development Authority, gave invited testimony in support of SB
77. He explained the first part of the bill is an economic
incentive to help drive housing development across the state.
The second part of the bill he called a "blighted incentive."
He explained that currently, municipalities have no tools
available to encourage redevelopment of blighted properties, and
the blighted section of the bill would give municipalities the
tools they need to help redevelop needed housing and other
commercial property.
8:27:14 AM
REPRESENTATIVE MCCABE asked Mr. Robbins to explain how the bill
would benefit more than just Anchorage.
MR. ROBBINS explained that he had been involved in conversations
as the Community Development Authority contemplated the
legislation, and blighted in Bethel, Alaska, is different than
blighted in Anchorage, Alaska. Local municipalities need to
have some leeway to be able to define what that means within
their jurisdiction. The amendment would provide the right kind
of guardrails for that.
8:29:31 AM
REPRESENTATIVE MCKAY expressed that he is a defender of private
property rights, and asked if there is a mechanism for appeal -
to give the property owner a place to say whether a property is
blighted or not.
MR. ROBBINS replied it is not the intention of the bill to
violate private property rights. He envisioned that for each
locale would be an arduous but complete public process. The
municipality would go through steps to notify the property owner
ahead of time with ample time to submit a plan.
8:31:56 AM
REPRESENTATIVE MCKAY stated his belief that it is important for
a property owner to have a chance to defend themself and not get
"railroaded."
MR. ROBBINS affirmed this is not a punitive measure. The goal
through the bill would be that cities can work with property
owners to encourage redevelopment - not take anything away.
8:33:22 AM
REPRESENTATIVE MEARS observed in the amendment several
opportunities for remediation and working with local governments
to improve things.
MR. ROBBINS agreed and said the intention behind the bill is to
offer multiple opportunities for the property owner to work with
the city for redevelopment.
8:34:26 AM
MR. ROBBINS, in response to a question from Representative
McCabe, reiterated that as the legislation was contemplated,
municipalities would have the ability to create a system of
support. The intention behind the bill is not to collect more
tax, but to encourage redevelopment.
8:37:12 AM
MR. ROBBINS, in response to Representative Himschoot, related
that there are at least 18 states that have defined "blighted"
to varying degrees, but it has worked in most of those states.
The first resort would not be to "whack someone with a blighted
tax," he remarked. In response to a follow-up question, he said
the other states have provided a guide for municipalities to
manage their own processes at the local level.
8:39:36 AM
BILL POPP, President & CEO, Anchorage Economic Development
Corporation, testified in support of SB 77, in particular the
tax abatement language in the bill is an important new tool
added to the "limited toolbox" that already exists.
8:41:25 AM
CHAIR MCCORMICK moved to adopt Amendment 1 to CSSB 77(CRA),
labeled 33-LS0416\S.A.3, Dunmire, 4/17/23, which read:
Page 2, line 13, following "blighted;":
Insert "the standards must include the following
requirements:
(A) the condition of the property endangers
public health and safety;
(B) the property has been declared a public
nuisance under a local housing, building, plumbing,
fire, or other related code or ordinance;
(C) the property has been vacant for not
less than one year;
(D) the unsecured, vacant, or deteriorated
state of the property has caused it to become the
subject or center of repeated illegal activity; and
(E) the property is
(i) open to the elements;
(ii) unfit for occupancy; or
(iii) a fire hazard;"
8:41:54 AM
REPRESENTATIVE PATKOTAK objected for the purpose of discussion.
CHAIR MCCORMICK withdrew his motion to adopt Amendment 1, in
response to Representative McCabe pointing out he was the maker
of the amendment.
8:42:06 AM
REPRESENTATIVE MCCABE moved to adopt Amendment 1 to CSSB
77(CRA), labeled 33-LS0416\S.A.3, Dunmire, 4/17/23, [text
previously provided]. He explained Amendment 1 would define
"blighted" and set the controls that are necessary to flesh out
Section 2 of the bill, regarding "blighted tax".
8:43:59 AM
REPRESENTATIVE HIMSCHOOT inquired about the intent of a
conceptual amendment for Amendment 1 [in the committee packet
and not yet offered].
8:44:59 AM
REPRESENTATIVE MCCABE moved to adopt Conceptual Amendment 1 to
Amendment 1. There being no objection, Conceptual Amendment 1
to Amendment 1 was adopted. [Included in the committee packet
is a page from Representative McCabe that describes the intent
of Conceptual Amendment 1 to Amendment 1, and which read as
follows [original punctuation provided]:
This is a conceptual amendment. Legislative Legal is
directed to make any changes or deletions to the
suggested language, including technical, conforming,
or bill title changes, in order accomplish the intent.
INTENT OF AMENDMENT: To add language clarifying that
the definition of "blighted" may include one, some, or
all of the items listed on the amendment. As currently
written, it could be interpreted that all of the
descriptions in the amendment are necessary in order
for a property to be deemed "blighted".
Suggested Language:
Page 1, line 9, following "activity;"
Delete "and"
Insert "or"
8:45:20 AM
REPRESENTATIVE PATKOTAK removed his objection to Amendment 1,
[as amended]. There being no further objection, Amendment 1, as
amended, was adopted.
8:46:03 AM
SENATOR DUNBAR, in closing, expressed appreciation for the
comments heard and the work done by the committee to help
improve the bill. He stated he hoped everyone can move forward
together and increase the amount of housing in the state.
8:47:28 AM
REPRESENTATIVE MCCABE reemphasized that under the proposed
legislation, a municipality would not "take your home from under
you," and the language assures that.
8:48:39 AM
The committee took an at-ease from 8:48 a.m. to 8:51 a.m.
8:51:52 AM
REPRESENTATIVE MCCABE moved to report CSSB 77(CRA), as amended,
out of committee with individual recommendations and the
accompanying fiscal notes, and to authorize Legislative Legal
Services to make any conforming and technical changes necessary
to implement the intent of the committee.
8:52:21 AM
REPRESENTATIVE PATKOTAK objected.
8:52:25 AM
The committee took a brief at-ease at 8:52 a.m.
8:52:30 AM
[The objection by Representative Patkotak was treated as
removed.]
CHAIR MCCORMICK announced there being no objection, HCS CSSB
77(CRA) was reported out of the House Community and Regional
Affairs Standing Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 99 Letters of Opposition as of 0930 4.17.23.pdf |
HCRA 4/18/2023 8:00:00 AM |
HB 99 |
| HB 99 Letters of Support as of 0930 4.17.23.pdf |
HCRA 4/18/2023 8:00:00 AM |
HB 99 |
| SB 77 Letter of Opposition as of 0930 4.17.23.pdf |
HCRA 4/18/2023 8:00:00 AM |
SB 77 |
| SB 77 Letters of Support as of 0930 4.17.23.pdf |
HCRA 4/18/2023 8:00:00 AM |
SB 77 |
| SB 77 Amendment S.A.3.pdf |
HCRA 4/18/2023 8:00:00 AM |
SB 77 |
| HB 99 Amendment B.4.pdf |
HCRA 4/18/2023 8:00:00 AM |
HB 99 |
| SB 77 Conceptual Amendment to Amendment 1.pdf |
HCRA 4/18/2023 8:00:00 AM |
SB 77 |