02/24/1994 09:20 AM Senate FIN

                                                                               
  SB 240 - MUNICIPAL TAX CREDIT/HABITAT PROTECTION                             
                                                                               
  Co-chair  Pearce directed  that  SB 240  be  brought on  for                 
  discussion.   She  explained that  it  would provide  for an                 
  optional  municipal  tax credit  for  certain  river habitat                 
  protection improvements.  It pertains to the Kenai River and                 
  will allow local governments to provide a habitat protection                 
  credit that could offset  a portion of property taxes  if an                 
  improvement has been  constructed that aids in  fish habitat                 
  along  the  river.    The Co-chair  pointed  to  the  Senate                 
  Resources Committee  Substitute for  the bill,  accompanying                 
  zero fiscal notes, Dept. of Fish  and Game position paper in                 
  support, Kenai  Borough statement  in support, a  resolution                 
  from the Kenai River Special Management Area Advisory Board,                 
  and correspondence from the Alaska Sportfishing  Association                 
  in support of the bill.                                                      
                                                                               
  Senator Rieger directed attention to page 1, line 5, of CSSB
  (Res) and  asked  if Co-chair  Pearce  would object  to                 
  addition of Unless prohibited  by municipal charter,  before                 
  language in subsection (a).  Co-chair Pearce noted  that the                 
  legislation is limited  to local  governments on the  Kenai.                 
  She added that, to her knowledge, none of the local charters                 
  would prohibit the credit.  Senator Rieger stressed that, as                 
  a general rule, the legislature  should not pass state  laws                 
  that override local charters.  Co-chair Pearce said she  had                 
  no objection  to the amendment.   Senator Rieger  then MOVED                 
  for adoption of the new language.   No objection having been                 
  raised, the language was ADOPTED  for incorporation within a                 
  draft Senate Finance Committee Substitute for the bill.                      
                                                                               
                                                                               
  Co-chair Pearce called for additional testimony on the bill.                 
  None was  forthcoming.   Senator Jacko  MOVED that  CSSB 240                 
  (Fin) pass from committee with individual recommendations.                   
                                                                               
  (At this  point in  the meeting  the teleconference  monitor                 
  advised of an individual in Soldotna who wished to testify.)                 
                                                                               
  Senator Jacko  WITHDREW his motion  for passage of  CSSB 240                 
  (Fin).                                                                       
                                                                               
  THEO MATTHEWS,  administrative assistant, United  Cook Inlet                 
  Drift Association, testified  via teleconference from Kenai.                 
  He said that the Association  supports habitat protection in                 
  all state rivers.   He expressed concern, however, that  the                 
  proposed bill does not  provide a tax credit for  those "who                 
  do  the  best for  habitat protection,  and  that is  to not                 
  develop their land  and stay off of it."   The Kenai Borough                 
  recently formed a task force to  discuss these issues.  Many                 
  land owners are requesting consideration  for doing the best                 
  thing and not developing  their land.  Those issues  will be                 
  discussed on the  Kenai at  the local level.   Mr.  Matthews                 
  acknowledged that  he did not know whether  this issue would                 
  fit within the proposed legislation.                                         
                                                                               
  In his closing remarks, Mr. Matthews applauded the effort to                 
  improve habitat on  the Kenai.   Co-chair Pearce  referenced                 
  the "no development option" and explained that under present                 
  statutes,  conservation  easements  are   allowed  to  local                 
  municipalities.  She then voiced  her understanding that the                 
  task  force  would  examine  whether  opportunity   for  the                 
  easements should be provided  at the local level.   For that                 
  reason, the option was not added to the current bill.                        
                                                                               
  Senator Jacko again MOVED for passage  of CSSB 240 (Fin) and                 
  requested  unanimous  consent.    No objection  having  been                 
  raised,  CSSB 240 (Fin)  was REPORTED OUT  of committee with                 
  zero fiscal notes  from the Dept.  of Natural Resources  and                 
  the Dept. of Fish  and Game.  All members present signed the                 
  committee report with a "do  pass" recommendation.  Senators                 
  Kerttula and Kelly were  not in attendance and did  not sign                 
  the report.                                                                  
                                                                               
  Later in the  meeting, GARY HINKLE  testified in support  of                 
  the bill via teleconference from Kenai.  He noted that there                 
  would be no cost to the state.  Granting of the credit is at                 
  the discretion of the borough and cities involved.  Net gain                 
  to habitat through this  effort will far exceed any  risk of                 
  the bill being pro development.