04/18/2024 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB161 | |
| HB134 | |
| HB30 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 161 | TELECONFERENCED | |
| += | HB 134 | TELECONFERENCED | |
| += | HB 30 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 18, 2024
8:02 a.m.
MEMBERS PRESENT
Representative CJ McCormick, Chair
Representative Kevin McCabe, Vice Chair
Representative Tom McKay
Representative Thomas Baker
Representative Justin Ruffridge
Representative Rebecca Himschoot
Representative Donna Mears
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 161(CRA) AM
"An Act relating to municipal taxation of farm land and farm
structures; and providing for an effective date."
- MOVED HCS CSSB 161(CRA) OUT OF COMMITTEE
HOUSE BILL NO. 134
"An Act prohibiting municipalities from levying a tax on the
transfer of real property; prohibiting the state from levying a
tax on the transfer of real property; and relating to municipal
taxation of mobile telecommunications services."
- HEARD & HELD
HOUSE BILL NO. 30
"An Act relating to daylight saving time; and providing for an
effective date."
- MOVED HB 30 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 161
SHORT TITLE: TAX EXEMPTION FOR FARM LAND/STRUCTURES
SPONSOR(s): SENATOR(s) BJORKMAN
01/16/24 (S) PREFILE RELEASED 1/8/24
01/16/24 (S) READ THE FIRST TIME - REFERRALS
01/16/24 (S) CRA
01/30/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
01/30/24 (S) Heard & Held
01/30/24 (S) MINUTE(CRA)
02/01/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/01/24 (S) Heard & Held
02/01/24 (S) MINUTE(CRA)
02/15/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/15/24 (S) <Above Item Removed from Agenda>
02/15/24 (S) MINUTE(CRA)
02/22/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/22/24 (S) -- Invited & Public Testimony --
02/27/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/27/24 (S) <Bill Hearing Rescheduled to 02/29/24>
02/29/24 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
02/29/24 (S) Moved CSSB 161(CRA) Out of Committee
02/29/24 (S) MINUTE(CRA)
03/01/24 (S) CRA RPT CS 4DP NEW TITLE
03/01/24 (S) DP: DUNBAR, GRAY-JACKSON, GIESSEL,
BJORKMAN
03/18/24 (S) TRANSMITTED TO (H)
03/18/24 (S) VERSION: CSSB 161(CRA) AM
03/18/24 (S) VERSION: CSSB 161(CRA) AM
03/20/24 (H) READ THE FIRST TIME - REFERRALS
03/20/24 (H) CRA
04/02/24 (H) CRA AT 8:00 AM BARNES 124
04/02/24 (H) Heard & Held
04/02/24 (H) MINUTE(CRA)
04/04/24 (H) CRA AT 8:00 AM DAVIS 106
04/04/24 (H) Heard & Held
04/04/24 (H) MINUTE(CRA)
04/11/24 (H) CRA AT 8:00 AM BARNES 124
04/11/24 (H) -- MEETING CANCELED --
04/18/24 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 134
SHORT TITLE: PROPERTY TRANSFER TAX; MUNI TELECOMM TAX
SPONSOR(s): REPRESENTATIVE(s) COULOMBE
03/27/23 (H) READ THE FIRST TIME - REFERRALS
03/27/23 (H) CRA
04/13/23 (H) CRA AT 8:00 AM BARNES 124
04/13/23 (H) Heard & Held
04/13/23 (H) MINUTE(CRA)
04/27/23 (H) CRA AT 8:00 AM BARNES 124
04/27/23 (H) Heard & Held
04/27/23 (H) MINUTE(CRA)
04/18/24 (H) CRA AT 8:00 AM BARNES 124
BILL: HB 30
SHORT TITLE: OBSERVE DAYLIGHT SAVING TIME ALL YEAR
SPONSOR(s): REPRESENTATIVE(s) ORTIZ
01/19/23 (H) PREFILE RELEASED 1/9/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) CRA, STA, L&C, FIN
03/14/23 (H) CRA AT 8:00 AM BARNES 124
03/14/23 (H) Heard & Held
03/14/23 (H) MINUTE(CRA)
04/16/24 (H) CRA AT 8:00 AM BARNES 124
04/16/24 (H) Heard & Held
04/16/24 (H) MINUTE(CRA)
04/18/24 (H) CRA AT 8:00 AM BARNES 124
WITNESS REGISTER
SENATOR JESSE BJORKMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented CSSB 161(CRA)
AM.
REPRESENTATIVE JULIE COULOMBE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 134.
REPRESENTATIVE DAN ORTIZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions
related to HB 30.
TOM WILLIAMS, Financial Officer
Ward Air
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 30.
JAY PEA, President
Save Standard Time
Phoenix, Arizona
POSITION STATEMENT: Testified in opposition to HB 30.
ACTION NARRATIVE
8:02:46 AM
CHAIR MCCORMICK called the House Community and Regional Affairs
Standing Committee meeting to order at 8:02 a.m.
Representatives McKay, Baker, Himschoot, McCabe, and McCormick
were present at the call to order. Representatives Ruffridge
and Mears arrived as the meeting was in progress.
The committee took an at-ease from 8:02 a.m. to 8:05 a.m.
SB 161-TAX EXEMPTION FOR FARM LAND/STRUCTURES
8:06:21 AM
CHAIR MCCORMICK announced that the first order of business would
be CS FOR SENATE BILL NO. 161(CRA) am, "An Act relating to
municipal taxation of farmland and farm structures; and
providing for an effective date."
8:06:42 AM
SENATOR JESSE BJORKMAN, Alaska State Legislature, as prime
sponsor, presented CSSB 161(CRA) AM. He said that the proposed
legislation extends the property tax exemption for farm use
land/buildings and encourages farm use buildings to be assessed
at the farm rate. He said this exemption would keep that land
from being developed or converted to other commercial uses. He
said CSSB 161 (CRA) AM would change the standard for
qualifications for someone seeking to utilize the proposed tax
exemption by lowering the threshold of dollars sold needed to
qualify for a tax exemption.
CHAIR MCCORMICK moved to adopt the proposed House committee
substitute (HCS) for CSSB 161(CRA) AM, Version 33-LS0971\D,
Dunmire, 4/1/24, as the working document. There being no
objection, Version D was before the committee.
8:10:29 AM
REPRESENTATIVE MEARS moved to adopt Amendment 1 to Version D,
labeled 33-LS0971\D.4, Dunmire, 4/15/24, which read:
Page 3, following line 1:
Insert a new bill section to read:
"* Sec. 4. AS 29.45.060(b) is amended to read:
(b) An owner of farm use land shall, to secure
the assessment under this section, apply to the
assessor on or before May 15 of each year in which the
assessment is desired. The application shall be made
on [UPON] forms prescribed by the state assessor for
the use of the local assessor, and must include
information that may reasonably be required to
determine the entitlement of the applicant. If the
land is leased for farm use purposes, the applicant
shall furnish to the assessor a copy of tease bearing
the signatures of both lessee and lessor along with
the completed application. The applicant shall furnish
the assessor a copy of the lease covering the period
for which the exemption is requested. This subsection
does not apply to a person with an interest in land
that is classified by the state for agricultural use
or that is restricted by the state for agricultural
purposes."
Renumber the following bill sections accordingly.
CHAIR MCCORMICK objected.
8:10:35 AM
REPRESENTATIVE MEARS explained Amendment 1, saying it would
allow applicants to apply to the assessor on or before May 15,
rather than only being allowed to be submitted on May 15.
8:11:07 AM
SENATOR BJORKMAN said he is neutral towards Amendment 1.
CHAIR MCCORMICK removed his objection. There being no further
objection, Amendment 1 was adopted.
8:11:26 AM
REPRESENTATIVE RUFFRIDGE moved to adopt Amendment 2 to Version
D, labeled 33-LS0971\D.8, Dunmire, 4/17/24, which read:
Page 1, line 7:
Delete "[EXCLUSIVELY]"
Insert "exclusively"
Page 1, line 11:
Delete "$1,000"
Insert "$2,500"
Delete "on"
Insert "from"
Page 1, lines 12 - 13:
Delete ", or normally sell at least $1,000 of
agricultural products produced on the land during a
tax year,"
Page 2, following line 19:
Insert a new bill section to read:
"* Sec. 3. AS 29.45.050 is amended by adding a new
subsection to read:
(z) In the event that an owner or lessee of farm
use land does not sell $2,500 of agricultural products
produced from the land during a tax year because of
circumstances beyond the control of the owner or
lessee, the owner may secure the exemption under (t)
of this section if the farm use land qualified for the
exemption under (t) of this section for the three
preceding tax years. In this subsection,
"circumstances beyond the control of the owner or
lessee" includes crop failure or physical injury that
prevents the owner or lessee from conducting farming
activity."
Renumber the following bill sections accordingly.
Page 3, following line 1:
Insert a new bill section to read:
"* Sec. 5. AS 29.45.060(c) is amended to read:
(c) In the event that an owner or lessee of farm
use land does not sell $2,500 of agricultural products
produced from the land during a tax year because of
circumstances beyond the control of the owner or
lessee, the owner may secure the assessment under this
section if the farm use land qualified for the
assessment under this section for the three preceding
tax years. In this subsection, "circumstances beyond
the control of the owner or lessee" includes [OF A]
crop failure or physical injury that prevents the
owner or lessee from conducting farming activity [BY
AN ACT OF GOD THE PREVIOUS YEAR, THE OWNER OR LESSEE
MAY SUBMIT AN AFFIDAVIT AFFIRMING THAT 10 PERCENT OF
GROSS INCOME FOR THE PAST THREE YEARS WAS FROM
FARMING]."
Renumber the following bill sections accordingly.
Page 3, line 20:
Delete "$1,000"
Insert "$2,500"
Page 3, line 21:
Delete "on"
Insert "from"
Page 3, lines 21 - 22:
Delete ", or normally sells at least $1,000 of
agricultural products produced on the land during a
tax year,"
Page 3, line 23:
Delete "the owner or lessee of the land"
Page 4, line 2:
Delete all material.
Renumber the following bill section accordingly.
CHAIR MCCORMICK objected for the purpose of discussion.
8:11:31 AM
REPRESENTATIVE RUFFRIDGE explained Amendment 2, saying it would
allow a municipality to partially or wholly exempt land or
structures that are exclusively used for farming activity and
raise the amount dollars sold to qualify for the exemption from
$1,000 to $2,500. He said if the ordinance were adopted by a
municipality, there would be a slight shift in the amount of tax
exemption that potentially would be passed on to other property
owners. He added that the exemption on page 2, line 19 of the
amendment is meant to qualify an option to have the exemption if
there were an event that would cause the person who qualified
for the exemption not to be able to farm or sell.
8:13:48 AM
REPRESENTATIVE RUFFRIDGE asked for the sponsor's position on
Amendment 2.
8:13:57 AM
SENATOR BJORKMAN said he supports Amendment 2 because it takes
into account public testimony that was heard in a previous bill
hearing to clarify vague language surrounding sales and added
that the raised dollar amount from $1,000 to $2,500 helps to
ease concerns from municipalities that people might abuse the
exemption. He said the amendment would return an optional
portion in the exclusive use provision of the proposed
legislation, making it easier for assessors to have control over
how tax exemptions are distributed.
CHAIR MCCORMICK removed his objection. There being no further
objection, Amendment 2 was adopted.
8:15:47 AM
REPRESENTATIVE RUFFRIDGE said he would not be offering Amendment
3.
8:16:09 AM
The committee took an at-ease from 8:16 a.m. to 8:17 a.m.
8:17:32 AM
REPRESENTATIVE MEARS thanked the bill sponsor for bringing the
issue forward. She said she is apprehensive about the
legislature making decisions on behalf of municipalities but
recognizes the larger goal at hand with the proposed
legislation.
8:18:15 AM
REPRESENTATIVE MCCABE moved to report HCS CSSB 161, Version 33-
LS0971\D, Dunmire, 4/1/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
REPRESENTATIVE MCCABE objected.
8:18:36 AM
A roll call vote was taken. Representatives Mears, McKay, Baker,
Ruffridge, and McCormic voted in favor of reporting HCS CSSB
161, as amended, from committee. Representatives McCabe and
Himschoot voted against it. Therefore, HCS CSSB 161(CRA), was
reported out of the House Community and Regional Affairs
Standing Committee by a vote of 5-2.
8:19:15 AM
The committee took an at-ease from 8:19 a.m. to 8:23 a.m.
8:23:24 AM
CHAIR MCCORMICK thanked Senator Bjorkman for presenting to the
committee.
HB 134-PROPERTY TRANSFER TAX; MUNI TELECOMM TAX
8:23:34 AM
CHAIR MCCORMICK announced that the next order of business would
be HOUSE BILL NO. 134, "An Act prohibiting municipalities from
levying a tax on the transfer of real property; prohibiting the
state from levying a tax on the transfer of real property; and
relating to municipal taxation of mobile telecommunications
services."
8:23:55 AM
REPRESENTATIVE JULIE COULOMBE, Alaska State Legislature, as
prime sponsor, presented HB 134. She said that HB 134 would
prohibit municipalities and state government from imposing tax
transfers on the buying or selling of a home. She said tax
rates have been increasing across the country in the past few
years, which has led to higher transfer taxes having a ripple
effect on home ownership in Alaska.
8:25:20 AM
CHAIR MCCORMICK moved to adopt the proposed committee substitute
(CS) for HB 134, Version 33-LS0618\S, Dunmire, 4/16/24, as the
working document. There being no objection, Version S was before
the committee.
8:26:01 AM
CHAIR MCCORMICK announced that HB 134 was held over.
HB 30-OBSERVE DAYLIGHT SAVING TIME ALL YEAR
8:26:18 AM
CHAIR MCCORMICK announced that the final order of business would
be HOUSE BILL NO. 30, "An Act relating to daylight saving time;
and providing for an effective date."
8:26:39 AM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, as prime
sponsor, gave an overview of HB 30. He addressed an unanswered
question Representative McCabe had asked at the previous
committee hearing, noting where daylight saving time (DST) is
observed in other countries and stating that in New York there
are seven bills related to this topic. He reminded the committee
that if Alaska were to adopt standard time, it would put Alaska
on a two-hour difference from western states.
8:29:58 AM
CHAIR MCCORMICK opened public testimony on HB 30.
8:30:25 AM
TOM WILLIAMS, Financial Officer, Ward Air, testified in support
of HB 30. He discussed the benefits of adopting DST year-round.
He said that while total daylight time wouldn't change, it would
only change the time for four months in the year, avoid
inflicting economic damage to the visitor industry in Alaska,
avoid reducing outdoor recreational opportunities during the
spring and fall, add an hour of daylight after school hours
during the winter, reduce the time zone difference between
Alaska and the east coast financial markets to three hours
instead of four during the winter, and provide an economic
benefit with the later daylight hours during the winter months.
He said the significant impact HB 30 would have on the economy
and the general health of the public far outweighs the benefit
of eliminating the twice per year time change that has been law
for decades. He urged the committee to pass HB 30 with "do
pass" recommendations.
8:33:22 AM
REPRESENTATIVE HIMSCHOOT asked how DST is beneficial for
tourists.
MR. WILLIAMS explained that during the summertime there is a lot
of light hours in the evening, providing ample time for
recreational opportunities during that time. He said in the
winter, certain flight operations could provide better service
to those who want to leave later in the morning and return later
in the evening.
8:35:05 AM
JAY PEA, President, Save Standard Time, testified in opposition
to HB 30. He said Save Standard Time would prefer to make
standard time permanent, as having permanent DST extend into
winter is not desirable. He gave a list of possible effects of
permanent DST, saying it would force earlier waking times,
significantly increase car accidents and depression rates, all
of which he said create an unnecessary risk to public safety.
He said that based on a number of studies, standard time is more
closely reflective of the sun and comes with numerous health and
social benefits. He named several states and countries which
have adopted permanent standard time and gave evidence of how
that positively impacted the health and well-being of the people
of those places. He argued that permanent DST would not lower
crime rates, but actually increase crime rates per a study by
the European Union considering permanent standard time.
8:39:20 AM
REPRESENTATIVE HIMSCHOOT asked whether any studies on the
effects of DST have taken Alaska into account specifically.
MR. PEA said none were specific to Alaska, but Russia tried
permanent DST for three years before reversing that decision and
going to permanent standard time after determining that DST was
the cause of a significant increase in car crashes and
depression.
REPRESENTATIVE HIMSCHOOT asked where she could find the Russian
study Mr. Pea had mentioned.
MR. PEA cited Boris Enkov's 2016 study titled "Seven Year Survey
of Sleep Timing in Russian Children in Adolescence" and offered
to email studies to the committee.
8:40:57 AM
REPRESENTATIVE MEARS said she appreciated any research or
science specifically related to Alaska, because the impacts of
such a decision would not be uniform across the state due to its
size.
8:42:10 AM
CHAIR MCCORMICK, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 30.
8:42:15 AM
The committee took an at-ease from 8:42 a.m. to 8:43 a.m.
8:43:17 AM
REPRESENTATIVE MCCABE moved to report HB 30 out of committee
with individual recommendations and the accompanying fiscal
notes.
REPRESENTATIVE MCCABE objected.
8:43:40 AM
REPRESENTATIVE RUFFRIDGE said he is okay with allowing the bill
to pass, but he is not convinced that DST is the appropriate
time for the entire state of Alaska. He said that the citizens
who live here should be prioritized, not tourists or operators
within those industries. He expressed his "deep reservations
and concerns" related to DST but said he would remain a "yes"
vote.
REPRESENTATIVE MCCABE said he was in favor of keeping standard
time if we were to eliminate the current twice per year time
switch. He cited a decade worth of information related to
fatigue risk management studies in the airline pilot industry
and said it would be a mistake for Alaska to adopt permanent
DST.
REPRESENTATIVE HIMSCHOOT said she doesn't have a firm sense of
which time system is better than the other, she just wants to
choose one or the other.
REPRESENATIVE BAKER commented that he is okay with moving HB 30
out of committee but is apprehensive about uniform DST because
of the potential for harm to northern communities that receive
very little light in the winter.
CHAIR MCCORMICK said he is in agreement with his colleagues and
acknowledged that the twice per year time change needs to be
eliminated.
8:48:12 AM
REPRESENTATIVE MCCABE removed his objection.
8:48:23 AM
REPRESENTATIVE MEARS objected for the purpose of discussion.
REPRESENTATIVE MEARS said she got the sense from the discussion
that standard time is the correct way to move forward and asked
whether changes should be made to HB 30 before moving it out of
committee.
REPRESENTATIVE MCCORMICK reminded committee members that an
amendment deadline for HB 30 had passed.
REPRESENTATIVE MEARS removed her objection. There being no
further objection, HB 30 was reported from the House Community
and Regional Affairs Standing Committee.
8:49:36 AM
The committee took an at-ease from 8:49 a.m. to 8:50 a.m.
8:50:19 AM
The committee took a brief at-ease at 8:50 a.m.
8:50:46 AM
CHAIR MCCORMICK clarified that HB 30 had been reported out of
committee.
8:51:09 AM
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 8:51 a.m.