Legislature(2011 - 2012)BARNES 124

04/12/2011 08:30 AM House COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ SB 94 SECOND VERSE OF ALASKA'S STATE SONG TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 170 MUNI TAX EXEMPTION FOR CERTAIN VOLUNTEERS TELECONFERENCED
Heard & Held
        HB 170-MUNI TAX EXEMPTION FOR CERTAIN VOLUNTEERS                                                                    
                                                                                                                                
9:03:28 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ announced  that the final order of  business would be                                                               
HOUSE BILL  NO. 170, "An  Act relating to municipal  property tax                                                               
exemptions on residences of  certain volunteer emergency services                                                               
personnel  and the  widows and  widowers  of volunteer  emergency                                                               
services personnel; and providing for an effective date."                                                                       
                                                                                                                                
9:03:39 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ informed the committee  that the committee substitute                                                               
(CS),  labeled  27-LS0562\I,  Bullard, 4/6/11,  includes  changes                                                               
discussed at the prior meeting.                                                                                                 
                                                                                                                                
9:04:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ERIC FEIGE, Alaska  State Legislature, speaking as                                                               
the sponsor  of HB 170,  directed attention  to page 1,  line 12,                                                               
which  changes the  language to  read: "may  by ordinance".   The                                                               
aforementioned language change  implies that municipalities would                                                               
have to  opt in rather  than opt  out of the  proposed exemption.                                                               
The next  change is  on page  1, lines  12-13, which  reduces the                                                               
exemption  to  "the first  $150,000  of  assessed value".    With                                                               
regard to  the questions concerning  what constitutes  an "active                                                               
volunteer", the language  on page 2, lines 7-15,  was reworded to                                                               
specify what  qualifies as a  volunteer.  The  language specifies                                                               
that  a volunteer  is someone  who has  been a  volunteer for  at                                                               
least two  years and  meets the  standards determined  jointly by                                                               
the local fire department and the municipality.                                                                                 
                                                                                                                                
9:07:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  whether passage  of  [Version  I]                                                               
would   require  an   annual  application   from  the   volunteer                                                               
firefighter  or would  the individual  be grandfathered  in after                                                               
the  initial application.   She  asked if  the application  would                                                               
require  verification of  "active" status  by a  fire department,                                                               
emergency medical services, or rescue services entity.                                                                          
                                                                                                                                
REPRESENTATIVE  FEIGE,   in  response  to  the   first  question,                                                               
confirmed that  a volunteer firefighter  would have to  apply for                                                               
the exemption each  year.  In further  response to Representative                                                               
Gardner, Representative Feige related  his understanding that the                                                               
widow/widower  of a  volunteer firefighter  would  have to  apply                                                               
each year as well.                                                                                                              
                                                                                                                                
REPRESENTATIVE GARDNER  clarified that she's trying  to determine                                                               
if  a widow  would qualify  in perpetuity  or only  for the  year                                                               
following the change in status to a widow.                                                                                      
                                                                                                                                
REPRESENTATIVE   FEIGE   related   his   understanding   that   a                                                               
widow/widower of  an individual  who was a  volunteer firefighter                                                               
at  the  time  of  his/her   death  would  be  eligible  for  the                                                               
exemption.                                                                                                                      
                                                                                                                                
9:09:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  inquired  as  to  the  location  of  the                                                               
language specifying that it's an annual application.                                                                            
                                                                                                                                
REPRESENTATIVE FEIGE answered page  2, lines 22-23.  Furthermore,                                                               
the  municipality sets  terms of  the application,  and thus  the                                                               
municipality   could  require   an  annual   application  or   an                                                               
application that applies indefinitely.                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER surmised then  that there is the potential                                                               
for an  individual to be  a volunteer firefighter for  two years,                                                               
retire, and have the benefit for 20-30 years.                                                                                   
                                                                                                                                
REPRESENTATIVE  FEIGE answered  yes, if  that's the  rule of  the                                                               
municipality.                                                                                                                   
                                                                                                                                
9:11:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  told  the committee  that  seniors  in                                                               
Kodiak have to apply for the senior exemption annually.                                                                         
                                                                                                                                
9:11:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked if  the  sponsor  intends for  the                                                               
widow/widower to  receive the proposed  exemption even  if he/she                                                               
remarries.                                                                                                                      
                                                                                                                                
REPRESENTATIVE FEIGE said that he hadn't considered that.                                                                       
                                                                                                                                
REPRESENTATIVE  SADDLER asked  if the  sponsor would  entertain a                                                               
conceptual amendment such that a  widow/widower would receive the                                                               
proposed exemption while he/she remains unmarried.                                                                              
                                                                                                                                
REPRESENTATIVE FEIGE replied  that he wouldn't object  to such an                                                               
amendment.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER  then clarified  that such a  change would                                                               
mean that  the widow/widower of  an individual who  qualified for                                                               
this  proposed   exemption  would  no  longer   qualify  for  the                                                               
exemption if he/she remarried.                                                                                                  
                                                                                                                                
REPRESENTATIVE FEIGE  remarked that he  wasn't sure if  one loses                                                               
their widow/widower status when one remarries.                                                                                  
                                                                                                                                
9:13:00 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA, drawing  from  her experience,  commented                                                               
that a  widow/widower's situation  changes once  he/she remarries                                                               
and  the widow/widower  has knowledge  of  the impending  change.                                                               
She opined that  the municipalities should have  something to say                                                               
about exemptions that  result in one party bringing  a benefit to                                                               
the marriage.                                                                                                                   
                                                                                                                                
REPRESENTATIVE FEIGE  said that  he didn't disagree,  adding that                                                               
the  language   in  Version  I   is  flexible  enough   to  allow                                                               
municipalities to address such situations.                                                                                      
                                                                                                                                
9:14:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER  asked  if [volunteer  firefighters]  who                                                               
receive a  stipend per call  or a pension benefit  are considered                                                               
volunteers under the definition in Version I.                                                                                   
                                                                                                                                
REPRESENTATIVE  FEIGE   explained  that   in  the   fire  service                                                               
[volunteer  firefighters who  receive compensation]  are referred                                                               
to as  paid on-call  volunteers.   Again, the  municipality would                                                               
determine the definition of an "active volunteer."                                                                              
                                                                                                                                
9:14:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  recalled being told that  there are 2,000                                                               
volunteer  firefighters statewide.   However,  the definition  of                                                               
"volunteer"  per AS  18.15.250(d)(1) would  seem to  increase the                                                               
number of  eligible individuals.   The definition  of "volunteer"                                                               
per AS 18.15.250(d)(1) specifies:                                                                                               
                                                                                                                                
          (4) "volunteer" means that the person is an                                                                           
     active  volunteer  of  a  first  responder  service,  a                                                                    
     rescue  service,  an  ambulance   service,  or  a  fire                                                                    
     department  that provides  emergency medical  or rescue                                                                    
     services as part of its duties.                                                                                            
                                                                                                                                
9:15:36 AM                                                                                                                    
                                                                                                                                
MICHAEL PASCHALL, Staff, Representative  Eric Feige, Alaska State                                                               
Legislature, explained  that in Alaska the  majority of emergency                                                               
medical services are  part of a fire department.   Therefore, the                                                               
numbers  used  during  discussions   of  this  legislation  would                                                               
include  most of  the active  emergency  service medical  service                                                               
providers.    Although  [the  definition  of  volunteer  includes                                                               
individuals besides  firefighters] there  is no  way to  obtain a                                                               
good  number, it  would be  a  relatively small  increase in  the                                                               
number of individuals eligible for the proposed exemption.                                                                      
                                                                                                                                
9:16:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN inquired  as to  how many  property tax                                                               
exemptions the  state pays  for, other  than the  senior property                                                               
tax exemption.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  FEIGE  said that  he  isn't  aware of  the  exact                                                               
number.  However, he related his  belief that in recent years the                                                               
state hasn't funded those property tax exemptions.                                                                              
                                                                                                                                
REPRESENTATIVE  AUSTERMAN  asked  if this  legislation  prohibits                                                               
double dipping,  such that an  individual wouldn't be  allowed to                                                               
receive  say both  the  senior property  tax  exemption and  this                                                               
proposed volunteer emergency services personnel exemption.                                                                      
                                                                                                                                
REPRESENTATIVE  FEIGE opined  that that  the legislation  doesn't                                                               
allow such  as the language refers  to "on the first  $150,000 of                                                               
the assessed value of the real property" for both exemptions.                                                                   
                                                                                                                                
9:17:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER recalled  at  the last  hearing that  the                                                               
Alaska Municipal League  (AML) was not excited about HB  170.  He                                                               
expressed interest in AML's reaction to Version I.                                                                              
                                                                                                                                
REPRESENTATIVE FEIGE  pointed out  that the  change in  Version I                                                               
that makes the exemption one  that the municipality would have to                                                               
opt-in  would  place  it  at  the  will  and  discretion  of  the                                                               
municipalities.                                                                                                                 
                                                                                                                                
9:18:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DICK  related his  understanding that  an eligible                                                               
volunteer  would  have to  file  an  annual application  for  the                                                               
proposed exemption.                                                                                                             
                                                                                                                                
REPRESENTATIVE  FEIGE  clarified   that  the  municipality  would                                                               
determine how  often a volunteer seeking  this proposed exemption                                                               
would have to apply.                                                                                                            
                                                                                                                                
REPRESENTATIVE DICK  posed a scenario  in which a  volunteer dies                                                               
in the line of duty or  not, and asked if the widow/widower would                                                               
have to apply for the proposed  exemption every year or would the                                                               
widow/widower be continuously eligible.                                                                                         
                                                                                                                                
REPRESENTATIVE   FEIGE  stated   that  the   legislation  doesn't                                                               
distinguish between  death in the line  of duty or not.   Whether                                                               
the widow/widower would  have to apply every year is  left to the                                                               
municipality to decide.                                                                                                         
                                                                                                                                
9:20:12 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ  announced that since there  are additional questions                                                               
regarding various  aspects of  this legislation,  particularly in                                                               
terms of the widow/widower provision  and the desire to hear from                                                               
AML, additional input is necessary.                                                                                             
                                                                                                                                
9:20:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  AUSTERMAN   lauded  the  idea  proposed   by  the                                                               
sponsor, but expressed concern with  unfunded mandates.  Although                                                               
[Version  I] proposes  an opt-in  situation, he  said he  remains                                                               
nervous,  particularly when  one reviews  the permanent  fund and                                                               
the   exemptions   for    the   military,   mariners,   etcetera.                                                               
Representative  Austerman questioned  where one  would stop  with                                                               
these unfunded  mandates.   Furthermore, firefighters  aren't the                                                               
only volunteers  and thus it  also becomes  an issue in  terms of                                                               
where to draw  the line.  He  said that were HB 170  to reach the                                                               
floor, he suspected he would have to vote against it.                                                                           
                                                                                                                                
9:23:17 AM                                                                                                                    
                                                                                                                                
CHAIR MUNOZ  announced that HB  170 needs  more work and  will be                                                               
held over.                                                                                                                      

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