Legislature(2023 - 2024)BARNES 124

03/05/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 234 MISSING/MURDERED INDIGENOUS PEOPLE;REPORT TELECONFERENCED
Moved CSHB 234(CRA) Out of Committee
-- Invited & Public Testimony --
*+ HB 267 MUNICIPAL PROPERTY TAX EXEMPTIONS TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
    HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE                                                                   
                         March 5, 2024                                                                                          
                           8:08 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative CJ McCormick, Chair                                                                                              
Representative Kevin McCabe, Vice Chair                                                                                         
Representative Tom McKay                                                                                                        
Representative Rebecca Himschoot                                                                                                
Representative Donna Mears                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Thomas Baker                                                                                                     
Representative Justin Ruffridge                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 234                                                                                                              
"An  Act relating  to police  officer training;  establishing the                                                               
Missing  and  Murdered   Indigenous  Persons  Review  Commission;                                                               
relating to missing and murdered  indigenous persons; relating to                                                               
the duties of the Department  of Public Safety; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
     - MOVED CSHB 234(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 267                                                                                                              
"An Act relating to property exempt from municipal taxation."                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 234                                                                                                                  
SHORT TITLE: MISSING/MURDERED INDIGENOUS PEOPLE;REPORT                                                                          
SPONSOR(s): REPRESENTATIVE(s) MCCORMICK                                                                                         
                                                                                                                                
01/16/24       (H)       PREFILE RELEASED 1/8/24                                                                                

01/16/24 (H) READ THE FIRST TIME - REFERRALS

01/16/24 (H) CRA, STA 02/20/24 (H) CRA AT 8:00 AM BARNES 124 02/20/24 (H) -- MEETING CANCELED -- 02/27/24 (H) CRA AT 8:00 AM BARNES 124 02/27/24 (H) Heard & Held 02/27/24 (H) MINUTE(CRA) 03/05/24 (H) CRA AT 8:00 AM BARNES 124 BILL: HB 267 SHORT TITLE: MUNICIPAL PROPERTY TAX EXEMPTIONS SPONSOR(s): REPRESENTATIVE(s) TOMASZEWSKI

01/16/24 (H) READ THE FIRST TIME - REFERRALS

01/16/24 (H) CRA, FIN

01/18/24 (H) FIN REFERRAL REMOVED

01/18/24 (H) BILL REPRINTED 03/05/24 (H) CRA AT 8:00 AM BARNES 124 WITNESS REGISTER CALLAN CHYTHLOOK-SIFSOF, Staff Representative CJ McCormick Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Gave an overview of HB 234 and described amendments, on behalf of Representative McCormick, prime sponsor. JAMES COCKRELL, Commissioner Office of the Commissioner Department of Public Safety Juneau, Alaska POSITION STATEMENT: Gave invited testimony during the hearing on HB 234. KACI SCHROEDER, Assistant Attorney General Legal Services Section Criminal Division Department of Law Juneau, Alaska POSITION STATEMENT: Commented on Amendment 3 and answered questions during the hearing on HB 234. REPRESENTATIVE FRANK TOMASZEWSKI Alaska State Legislature Juneau, Alaska POSITION STATEMENT: As prime sponsor, presented HB 267. DAVID GOFF, Staff Representative Frank Tomaszewski Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the sectional analysis for HB 267, on behalf of Representative Tomaszewski, prime sponsor. GENE THERRIAULT, Board President Fairbanks Community Food Bank Juneau, Alaska POSITION STATEMENT: Gave invited testimony and answered questions during the hearing on HB 267. NILS ANDREASSEN, Executive Director Alaska Municipal League Juneau, Alaska POSITION STATEMENT: Testified in during the hearing on HB 267. LORINDA MOFF, State Administrator Alaska SCTP Big Lake, Alaska POSITION STATEMENT: Testified during the hearing on HB 267. ACTION NARRATIVE 8:08:29 AM CHAIR MCCORMICK called the House Community and Regional Affairs Standing Committee meeting to order at 8:08 a.m. Representatives McCabe, McKay, Himschoot, Mears, and McCormick were present at the call to order. HB 234-MISSING/MURDERED INDIGENOUS PEOPLE;REPORT 8:09:46 AM CHAIR MCCORMICK announced that the first order of business would be HOUSE BILL NO. 234, "An Act relating to police officer training; establishing the Missing and Murdered Indigenous Persons Review Commission; relating to missing and murdered indigenous persons; relating to the duties of the Department of Public Safety; and providing for an effective date." 8:10:02 AM CALLAN CHYTHLOOK-SIFSOF, Staff, Representative CJ McCormick, Alaska State Legislature, on behalf of Representative McCormick, prime sponsor, gave an overview of HB 234. She said the bill would do four things: mandate cultural training under the Police Standards Council; codify two missing and murdered indigenous persons (MMIP) full-time investigator positions within DPS; establish the Missing and Murdered Indigenous Persons Review Commission in statute; and require the Department of Public Safety (DPS) submit an annual needs assessment report to the legislature. She described three forthcoming amendments. Amendment 1 would incorporate HB 235 in the bill by requiring that all missing person reports be submitted to the National Missing and Unidentified Persons System (NamUs) within 30 days. Amendment 2 would increase the number of MMIP investigators from two to four. Amendment 3 would ensure that sensitive materials reviewed by the commission are allowed in a court of law to prosecute cases. 8:15:49 AM CHAIR MCCORMICK closed public testimony on HB 234, [which was left open from 2/27/24]. 8:17:20 AM JAMES COCKRELL, Commissioner, Office of the Commissioner, Department of Public Safety (DPS), gave invited testimony in support of HB 234. He said DPS has been involved in the MMIP mission for several years and recognized the importance of focusing on this issue. He discussed the need for MMIP investigators and shared his belief that four positions would suffice. He maintained that the department is already meeting the bill's requirements, explaining that all missing persons had been put into the NamUs database, which is similar to Alaska's missing person clearinghouse. Currently, he said, DPS submits names within 60 days, not 30. He discussed a partnership with the Anchorage Police Department (APD) and the Fairbanks Police Department to publish a quarterly report with an updated list of all missing persons in the state. He addressed DPS's budget request, which included $450,000 for the four investigators and $250,000 for outreach and education. 8:24:46 AM REPRESENTATIVE HIMSCHOOT asked about the retire/re-hire process for the investigators who were brought back into service. COMMISSIONER COCKRELL explained that the positions are long-term non-permanent salary positions. In response to a follow up question, he confirmed that the FY 25 budget request included $450,000 for four MMIP investigators. CHAIR MCCORMICK said it spoke volumes to him that the commissioner had apologized for the lack of services in rural Alaska. He thanked the commissioner for his work and accountability on this issue. 8:26:59 AM CHAIR MCCORMICK invited Ms. Schroeder to speak to the proposed amendments. 8:27:33 AM KACI SCHROEDER, Assistant Attorney General, Legal Services Section, Criminal Division, Department of Law (DOL), explained that [Amendment 3] would delete "admissible in" and insert "subject to discovery or subpoena in connection with" because DOL does not want the commission to become a source of information for criminal or civil cases. She shared her belief that the amendment would ensure that the commission is not spending a lot of time responding to discovery requests and subpoenas. In addition, the language in the second part [of Amendment 3] would clarify that prosecutors and peace officers serving on the commission could also work on the cases that the commission reviews. 8:30:12 AM CHAIR MCCORMICK moved to adopt Amendment 1 to HB 234, labeled 33-LS1044\B.1, C. Radford, 2/28/24, which read: Page 1, line 1, following "training;": Insert "relating to the duty of law enforcement agencies to report missing persons;" Page 2, following line 3: Insert new bill sections to read: "* Sec. 2. AS 18.65.620 is amended by adding a new subsection to read: (c) Within 30 days after the first report concerning a missing person was filed with a local or state law enforcement agency, the agency shall submit a missing person report to the National Missing and Unidentified Persons System for a missing person whose location has not been determined. * Sec. 3. AS 18.65.630(a) is amended to read: (a) When a person files a report of a missing person with a law enforcement agency or with the clearinghouse, a form authorizing the release of medical and dental records to the law enforcement agency, [AND] to the clearinghouse, and to the National Missing and Unidentified Persons System shall be supplied to the family, next of kin, or legal guardian of the missing person. The family, next of kin, or legal guardian of the missing person may complete the release form and deliver the release form to the physician or dentist of the missing person. The physician or dentist who receives a release form signed by the family, next of kin, or legal guardian of the missing person shall release to the law enforcement agency, [AND] the clearinghouse, and the National Missing and Unidentified Persons System only that information that is necessary to identify the missing person. * Sec. 4. AS 18.65.630(c) is amended to read: (c) Medical and dental records obtained under this section shall be provided to the clearinghouse and to the National Missing and Unidentified Persons System. * Sec. 5. AS 18.65.630 is amended by adding new subsections to read: (e) If available, a law enforcement agency shall submit fingerprints, photographs, and voluntary DNA samples from family members of the missing person to the National Missing and Unidentified Persons System. (f) In this section, "DNA" has the meaning given in AS 18.13.100." Renumber the following bill sections accordingly. Page 5, line 1: Delete "Section 4" Insert "Section 8" Page 5, line 2: Delete "Section 3" Insert "Section 7" CHAIR MCCORMICK announced that there being no objection, Amendment 1 was adopted. 8:30:33 AM CHAIR MCCORMICK moved to adopt Amendment 2 to HB 234, labeled 33-LS1044\B.2, C. Radford, 2/28/24, which read: Page 2, line 6: Delete "two" Insert "four" CHAIR MCCORMICK announced that there being no objection, Amendment 2 was adopted. 8:30:41 AM CHAIR MCCORMICK moved to adopt Amendment 3 to HB 234, labeled 33-LS1044\B.3, C. Radford, 3/1/24, which read: Page 3, line 25: Delete "admissible in" Insert "subject to discovery or subpoena in connection with" Page 3, line 27, following "proceeding.": Insert "Nothing in this subsection prohibits a member of the commission from prosecuting a criminal case or otherwise participating in a civil or criminal proceeding as part of, or relating to, the member's normal course of employment if the criminal case or civil or criminal proceeding involves a case reviewed by the commission." REPRESENTATIVE MCCABE objected. 8:30:57 AM REPRESENTATIVE MCCABE asked whether the committee was trying to do too much to protect the database from legal discovery or use by criminal prosecutors or defense attorneys. MS. SCHROEDER opined that the language is not too much. She explained that the language is consistent with language used in other areas of law with other commissions that review this type of information. The normal discovery procedures driven by court rule indicate that it's the prosecutor not the commission's role to turn over discovery. She reiterated that the commission should not be the source of this information, which the proposed amendment makes clear. 8:32:38 AM REPRESENTATIVE MCCABE shared his understanding that [Amendment 3] would "immunize" the database. REPRESENTATIVE MCCABE removed his objection. There being no further objection, Amendment 3 was adopted. 8:33:53 AM CHAIR MCCORMICK thanked everyone for their work on the bill. He said small communities have been fighting this issue for a long time and referenced the disappearance of Stella Evon. He reiterated that MMIP is a continent-wide issue. 8:35:23 AM REPRESENTATIVE MCCABE moved to report HB 234, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 234(CRA) was reported from the House Community and Regional Affairs Standing Committee. 8:35:43 AM The committee took an at-ease from 8:35 p.m. to 8:41 p.m. HB 267-MUNICIPAL PROPERTY TAX EXEMPTIONS 8:41:50 AM CHAIR MCCORMICK announced that the final order of business would be HOUSE BILL NO. 267, "An Act relating to property exempt from municipal taxation." 8:42:08 AM REPRESENTATIVE FRANK TOMASZEWSKI, Alaska State Legislature, prime sponsor, presented HB 267. He shared the sponsor statement [included in the committee packet], which read as follows [original punctuation provided]: House Bill 267 changes language exempting non-profits from municipal taxation on certain properties. This includes parking lots owned by non-profits used for parking or other uses free of charge. This also includes property of a store operated by a non-profit that distributes food, shelter, clothes, or health care for below market value or free. Additionally, this maintains a non-profit's tax exemption if they rent out their property to another non-profit. Charitable non-profits are a pillar of our communities. They help our communities' least fortunate when they need basic goods and services. Of course, many non-profits turn to fundraising and facility rentals to keep their lights on and doors open so they can continue to provide their essential services. If these organizations did not provide these services, the burden would fall on the communities they serve. This bill through verbiage change aims to return the exemption status to non-profits to the level that they had prior to 2018. The bill does not increase exemption only clarifies the exemption to allow fundraising and parking under the exemption as previously granted. With revenues being down and permanent fund dividends being cut creating a regressive tax on our least fortunate, we must help those who help those in need. 8:44:06 AM DAVID GOFF, Staff, Representative Frank Tomaszewski, Alaska State Legislature, on behalf of Representative Tomaszewski, prime sponsor of HB 267, presented the sectional analysis for HB 267 [included in the committee packet], which read as follows [original punctuation provided]: Section 1: Amends AS 29.45.030(a) Page 2 line 16, Establishes that property is exempt from general taxation when the property is used primarily rather than exclusively for nonprofit religious, charitable, cemetery, hospital, or educational purposes. Page 3 lines 19-20, This section further establishes parking lots that are primarily used to serve real property that is exempt under municipal taxation. Section 2: Amends AS 29.45.030(b) Page 3 line 22-23 Clarifies municipal taxation exemption of religious property as property used primarily versus property used exclusively for religious purposes. Page 4 line 2 The section further clarifies that a structure, its furniture, and its fixtures used primarily rather than solely for qualifying property is also exempted from municipal taxation. Section 3: is repeals and reenacts AS 29.45.030(c)Page 4 lines 8-18 Clarifies Properties described in (a)(3) or (4) of this section that generate income and are used primarily are exempt from general taxation if the income is from use of a property by a nonprofit religious, charitable, hospital group or an educational group; educational group only as classroom space; used for fundraising by these groups is also allowed. Section 4: to add a new subsection. Page 4 lines 20-25 Establishes that property described in (a) (3) of this section that is under construction or reconstruction and is intended used for tax exempt purpose upon completion is exempt from general taxation if completed within two years of permitting. The section clarifies completion as the first day the property is occupied for the mission. Page 4 line 26-30 In addition, the exempt property remains exempt if it is for a purpose that is directly incidental to and vitally necessary for the exempt use of the property, or a nonexempt purpose for an insubstantial period of time. 8:47:30 AM MR. GOFF explained that in 2018, assessors began using the term "exclusively" as a way to tax more property. To mitigate this, Legislative Legal Services suggested replacing "exclusively" with "primarily." CHAIR MCCORMICK sought questions from committee members. 8:49:16 AM REPRESENTATIVE HIMSCHOOT asked what changed in 2018. REPRESENTATIVE TOMASZEWSKI said nothing changed aside from the aggressive nature of tax assessors who started going after previously untaxed properties. REPRESENTATIVE HIMSCHOOT asked how "primarily" is defined in statute. REPRESENTATIVE TOMASZEWSKI deferred to Mr. Therriault. REPRESENTATIVE HIMSCHOOT clarified that she was interested in the unintended consequences, adding that she wanted to prevent for-profit organizations that occasionally hold nonprofit events from becoming primarily nonprofit. REPRESENTATIVE TOMASZEWSKI agreed. He said that is not the intent of the bill. He conveyed that the goal is to revert the clock back to the state of things prior to 2018 and prevent nonprofit organizations, like food banks, who are barely scraping by from having to add a tax assessment burden to their bottom line. 8:53:19 AM GENE THERRIAULT, Board President, Fairbanks Community Food Bank, shared his understanding that the narrow interpretation and application of the word "exclusive" is the source of the problem. He added that the general understanding of "primarily" is "50 percent plus." He shared his belief that if the term "primarily" is chosen, it should be defined [in statute]. 8:54:46 AM REPRESENTATIVE HIMSCHOOT, referencing the memorandum to Senator Meyers [included in the committee packet], concluded that no change is needed because the state or municipality is not required to tax property. She asked whether she was misinterpreting document. MR. THERRIAULT clarified that the drafter was referring to the mandatory tax exemption in the constitution. The primary question is how much tax protection should be extended under the constitutional mandate, he said, so that it's not up to the local government to decide. 8:56:36 AM REPRESENTATIVE HIMSCHOOT said the [tax exemption] seems to be locally determined, as opposed to mandated. She expressed concern about the state setting a standard that local governments would be required to adhere to. 8:57:48 AM REPRESENTATIVE MEARS asked whether local governments could exempt these uses or whether exemptions must be made on the state level. REPRESENTATIVE TOMASZEWSKI said local governments need to follow state law. REPRESENTATIVE MEARS restated her question, asking whether local governments have the ability to create their own exemptions. REPRESENTATIVE TOMASZEWSKI said they can, under the guidance of state law, provide exemptions for properties. 8:58:44 AM REPRESENTATIVE MEARS said that did not answer her question. She questioned how the statewide application of the proposed legislation would financially impact local governments. REPRESENTATIVE TOMASZEWSKI indicated that there could be an increase in revenue; however, maintaining the same tax exempted status would result in no change to municipal revenue. REPRESENTATIVE MEARS expressed concern that there is not a full understanding of how local governments are applying exemptions and how the bill would impact their policies. She emphasized her interest in getting more comfortable with the impact on local governments. 9:00:19 AM CHAIR MCCORMICK asked how the bill compares to laws in other states. MR. THERRIAULT shared his understanding that most states in the nation constitutionally mandate a property tax exemption for nonprofits. 9:01:31 AM MR. THERRIAULT gave his invited testimony. He explained that after 40 years of operating in the Fairbanks North Star Borough and many rural locations, the Fairbanks Community Food Bank was stunned to receive a combine property tax bill of over $8,000 in 2022. The reason for the combined tax bill stemmed from a fundraiser that was held at one of the properties. Taxes were also assessed on an additional warehouse space that was being constructed. Lastly, a parking lot dedicated to nonprofit education and charitable tenants was taxed. If the organization disagreed with the tax determination, they were told that the only recourse was to appeal to the court system. Without the resources to undertake expensive and lengthy litigation, the food bank paid the taxes under protest. He relayed that after further investigations, other nonprofits were also receiving unexpected tax bills. The primary reason for the current situation is the lack of clarity in Alaska law, he said, which assessors struggle to interpret and apply. He highlighted the language on page 2, lines 16-17 of the bill, stating "property used exclusively for nonprofit purposes." He discussed the different interpretations of the "exclusive use rule," adding that the bill seeks to move away from the rigidity by replacing "exclusively" with "primarily." He opined that both terms need further definition to solve the problem. He suggested that the path forward involves the legislature using longstanding court determinations to provide policy clarity to existing statute. Favorable action on HB 267 would also allow nonprofit charitable organizations, like the food bank, to fulfill their purpose to meet the critical needs of the community. In response to the committee's discussion, he said the goal is to determine which properties and operations qualify for the constitutionally mandated tax exemptions. 9:09:14 AM CHAIR MCCORMICK asked Mr. Therriault to restate the constitutional mandate. MR. THERRIAULT read the following statement: All or any portion of the property used exclusively for nonprofit, religious, charitable, cemetery, or education purposes, as defined by law, shall be exempt from taxation. MR. THERRIAULT noted that the charitable institutions are up against local interpretation of the law because the tax exemption is lost if the operation is used to generate revenue, which contradicts federal law unless a separate standalone business is created. 9:11:18 AM REPRESENTATIVE MCCABE differentiated between the definition of primarily and exclusively. He asked how much could be provided to the residents of Fairbanks with $8,000. MR. THERRIAULT reiterated his hope that true nonprofits would always be able to avail themselves of the mandatory tax exemption in the constitution despite local choice. He estimated that the food bank could source 30,000 to 40,000 pounds of bycatch salmon from Seattle for $8,000. REPRESENTATIVE MCCABE suggested that the goal was to "soften" the exclusionary language. He opined that nonprofits and food banks do important work and pondered the implications of an $8,000 municipal tax to the people served by these organizations. MR. THERRIAULT said he understood the need for local governments to ensure that ineligible properties are not receiving tax exemptions to avoid abuse. He agreed that [nonprofits] are looking for latitude in the interpretation of the word "exclusively," which, he said, the courts have corroborated. 9:20:18 AM REPRESENTATIVE HIMSCHOOT said she was still trying to wrap her head around a local government that would exercise the option to tax a food bank. She asked how "primarily" would be defined. MR. THERRIAULT restated his understanding that in layman's terms, "primarily" is defined as "50 percent plus." REPRESENTATIVE HIMSCHOOT said "primarily" felt murkier than "exclusively." 9:21:41 AM REPRESENTATIVE MCCABE asked whether the food bank charges a fee for parking or makes any money off the parking lot. MR. THERRIAULT answered no. REPRESENTATIVE MCCABE sought to verify that no revenue is collected from the parking lot and that the organization was taxed on the value of the land. MR. THERRIAULT said, "That's correct." He described the parking lot, indicating that the property was improved and within 300 feet of the property that it serves, which meets local requirements. REPRESENTATIVE MCCABE asked to explore the incident or "bowl auction" that generated [the tax bill]. He asked whether the proceeds from the auction was used for anything other than its stated purpose, which was to serve those in need. MR. THERRIAULT answered no. He explained that bowl auctions are common among nonprofits that partner with pottery guilds. The event, which was held at a warehouse operation, triggered the tax consequence in CY 22. He noted that after citing court cases, the borough relented. He reiterated that the supreme court determined that the interpretation of "exclusively" should not be so narrow as to cause organizations to lose their tax- exempt status [over events like the one in question]. 9:26:29 AM The committee took a brief at-ease. 9:27:01 AM CHAIR MCCORMICK opened public testimony on HB 267. 9:28:08 AM NILS ANDREASSEN, Executive Director, Alaska Municipal League (AML), testified during the hearing on HB 267. He emphasized the importance of ensuring that there are no unintended consequences and that the bill brings clarity to assessors without restricting their ability to do their job. He said AML's suggested edits center on the need to provide clarity on spatial apportionment relative to the use of a property. Spatial apportionment is used to determine the amount of property used for purposes other than the nonprofit's purpose. With Alaska's limited tax base, he said mandatory exemptions should be applied cautiously and specifically with parameters to preserve local tax bases as much as possible. He highlighted Section 1, paragraph (11) of the bill, which adds parking lots to the list of exemptions, and suggested that the language would not capture the intended purpose of exempting specifically nonprofit parking lots. Instead, he suggested that it would encompass all parking lots described in the exemptions. He opined that Section 3 is unnecessary and shared his belief that the shift from "exclusively" to "primarily" would increase uncertainty for local assessors. He reported that local governments already exempted nonprofit property for community purposes at a value of $261 million in 2022. He welcomed the potential for collaboration with the bill sponsor to work through these issues and seek maximum benefit to the state and communities. 9:36:53 AM REPRESENTATIVE MCCABE asked whether AML conducted a financial analysis on the impact to local communities. MR. ANDREASSEN said that work needs to be done. He explained that the senior citizen and disabled veteran property tax exemption is tracked by the assessor each year and referenced by AML to see how the exemption was applied. REPRESENTATIVE MCCABE asked how AML expects nonprofits, like the food bank, to pay property taxes without it impacting the services they offer. MR. ANDREASSEN said he was not prepared to talk about food banks' financials specifically. He pointed out that taxes, like any other expense, are regularly built into budgets. He shared his belief that the discussion is not nonprofits versus local governments and emphasized that AML's goal is to strengthen local governments. 9:41:44 AM REPRESENTATIVE HIMSCHOOT said her district tends to have a high ratio of nonprofits. She asked whether Alaska, as a result of its islanded communities, has a higher number of nonprofits compared to other states. MR. ANDREASSEN reported that Alaska has the highest per capital rate of nonprofits in the nation. REPRESENTATIVE HIMSCHOOT opined that the nonprofit sector adds a nonmonetary quality of life that no one wants to diminish. 9:44:44 AM LORINDA MOFF, State Administrator, Alaska SCTP, testified during the hearing on HB 267. She shared that Alaska SCTP was given 200 acres by the borough to build a facility for youth training and education. She said she knew nonprofits do not pay property taxes; however, she was not aware that it must be applied for, and subsequently received a bill for over $4,000, which Alaska SCTIP paid. She noted that eventually, her nonprofit was granted the exemption because the borough was well informed. She pointed out that many nonprofits provide critical and educational services that the government would not want to pay for itself. 9:50:56 AM REPRESENTATIVE MEARS acknowledged the challenges of running a nonprofit. She sought to confirm that Alaska SCTP is no longer paying property taxes on that parcel. MS. MOFF answered, "That's correct." REPRESENTATIVE MCCABE asked how many kids Ms. Moff had served in total. MS. MOFF estimated around 7,000 to 8,000. 9:52:24 AM CHAIR MCCORMICK closed public testimony on HB 267. He invited closing comments from the bill sponsor. REPRESENTATIVE TOMASZEWSKI said he looked forward to drafting a more perfect bill to get this issue cleared up for all nonprofits throughout Alaska. 9:53:56 AM CHAIR MCCORMICK announced that HB 267 would be held over. 9:54:18 AM ADJOURNMENT There being no further business before the committee, the House Community and Regional Affairs Standing Committee meeting was adjourned at 9:54 p.m.

Document Name Date/Time Subjects
HB 267 Sponsor Staterment.pdf HCRA 3/5/2024 8:00:00 AM
HB 267
HB 267 Sectional Analysis.pdf HCRA 3/5/2024 8:00:00 AM
HB 267
HB 267 Supporting Document - Legal Memo.pdf HCRA 3/5/2024 8:00:00 AM
HB 267
HB 267 Version A.pdf HCRA 3/5/2024 8:00:00 AM
HB 267
HB 234 Amendment B.1 - 2.28.24.pdf HCRA 3/5/2024 8:00:00 AM
HB 234
HB 234 Amendment B.2 - 2.28.24.pdf HCRA 3/5/2024 8:00:00 AM
HB 234
HB 234 Amendment B.3 - 3.1.24.pdf HCRA 3/5/2024 8:00:00 AM
HB 234