05/04/1994 09:15 AM Senate FIN

  HB 73:              An  Act  relating  to  state  and  local                 
                      taxation and other  state regulation  as                 
                      affected  by  the  Alaska Native  Claims                 
                      Settlement Act, as amended,  and related                 
                      federal statutes; and  providing for  an                 
                      effective date.                                          
                                                                               
                      David  Harding,  aide  to Representative                 
                                                                               
                                                                               
                      Eileen  MacLean,  sponsor   of  HB   73,                 
                      testified in support of the bill.  HB 73                 
                      was  REPORTED  out  of   committee  with                 
                      individual  recommendations  and  a zero                 
                      fiscal  note  for   the  Department   of                 
                      Revenue.                                                 
  HOUSE BILL NO. 73:                                                           
                                                                               
       An Act relating  to state and local taxation  and other                 
                                                                               
                                                                               
       state  regulation as  affected  by  the  Alaska  Native                 
       Claims Settlement Act, as amended, and  related federal                 
       statutes; and providing for an effective date.                          
                                                                               
  Co-chair Pearce  announced that  HB 73  had previously  been                 
  heard by the committee in February 1994.  Co-chair Frank had                 
  some questions  regarding federal  law.   She invited  David                 
  Harding to join the members at the table to speak to HB 73.                  
                                                                               
  DAVID HARDING, aide to Representative MacLean, sponsor to HB
, said that the  bill made technical changes to  state law                 
  to bring  it  into compliance  with changes  in the  federal                 
  Alaska  Native  Claims  Settlement  Act  as  it  related  to                 
  exemptions from property  taxation at  the state, local  and                 
  federal level.  He referred the  committee to a memo written                 
  by  Jack  Chenoweth  that  stated   that  federal  law  took                 
  precedence  and at present, state law  did not reflect those                 
  changes.  He drafted HB 73  so that it would now and  in the                 
  future track federal law.  There had been several cases that                 
  had ended up  in court because state law was misread.  HB 73                 
  was drafted to  avoid that  confusion in the  future by  the                 
  state assessor or anyone else reading the law.                               
                                                                               
  In answer to Senator  Sharp, Mr. Harding said the  cases had                 
  taken place  in Cook  Inlet but he  did not  know the  exact                 
  circumstances.                                                               
                                                                               
  Senator Jacko MOVED for passage of HB 73 from committee with                 
  individual recommendations.  No  objection being heard,  the                 
  bill was REPORTED out with a individual recommendations, and                 
  a zero fiscal note for the Department of Revenue.  Co-chairs                 
  Pearce,  and  Frank,  and Senator  Jacko  signed  "do pass."                 
  Senators Rieger and Sharp signed "no recommendation."