Legislature(2005 - 2006)CAPITOL 124
03/31/2005 01:00 PM House MILITARY & VETERANS' AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB208 | |
| HB212 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 208 | TELECONFERENCED | |
| *+ | HB 212 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON MILITARY AND VETERANS' AFFAIRS
March 31, 2005
1:03 p.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Nancy Dahlstrom
Representative Jim Elkins
Representative Bill Thomas
Representative Max Gruenberg
MEMBERS ABSENT
Representative Lesil McGuire
Representative Sharon Cissna
COMMITTEE CALENDAR
HOUSE BILL NO. 208
"An Act authorizing the Department of Military and Veterans'
Affairs to establish and maintain an Alaskan veterans' cemetery;
and establishing the Alaska veterans' cemetery fund in the
general fund."
- MOVED CSHB 208(MLV) OUT OF COMMITTEE
HOUSE BILL NO. 212
"An Act relating to exemptions from municipal property taxes for
certain primary residences; and providing for an effective
date."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 208
SHORT TITLE: STATE VETERANS' CEMETERY
SPONSOR(S): REPRESENTATIVE(S) GUTTENBERG
03/07/05 (H) READ THE FIRST TIME - REFERRALS
03/07/05 (H) MLV, STA, FIN
03/31/05 (H) MLV AT 1:00 PM CAPITOL 124
BILL: HB 212
SHORT TITLE: PROPERTY TAX EXEMPTIONS FOR SENIORS/VETS
SPONSOR(S): REPRESENTATIVE(S) THOMAS
03/09/05 (H) READ THE FIRST TIME - REFERRALS
03/09/05 (H) MLV, CRA
03/31/05 (H) MLV AT 1:00 PM CAPITOL 124
WITNESS REGISTER
DANIELLE BROWN, Staff
to Representative David Guttenberg
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 208 on behalf of
Representative Guttenberg, sponsor.
REPRESENTATIVE DAVID GUTTENBERG
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as the sponsor of HB 208.
JOYCE BROWNLOW
Fairbanks Elks Lodge
Fairbanks, Alaska
POSITION STATEMENT: Urged passage of HB 208.
JOYCE ROETHLER
AMVETS, Unit 11;
American Legion Auxiliary;
VFW 3629 Auxiliary
Fairbanks, Alaska
POSITION STATEMENT: During testimony of HB 208, emphasized the
importance of taking care of all veterans.
BENNO CLEVELAND, President
Alaska Native Veterans Association;
Commander, the Military Order of Purple Heart - Chapter 675
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 208.
JIMMY LECROY, Commander
American Legion - Post 11
Fairbanks, Alaska
POSITION STATEMENT: Related that Post 11 unanimously supports
HB 208.
DANA NACHTRIEB
Marine Corps League - Detachment 674;
Veterans of Foreign War - Chapter 3629
Fairbanks, Alaska
POSITION STATEMENT: Related that everyone with whom he has
spoken is in favor of HB 208.
GLENN HACKNEY
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 208.
ACTION NARRATIVE
CHAIR BOB LYNN called the House Special Committee on Military
and Veterans' Affairs meeting to order at 1:03:59 PM.
Representatives Elkins, Gruenberg, Thomas, and Lynn were present
at the call to order. Representative Dahlstrom arrived as the
meeting was in progress.
HB 208-STATE VETERANS' CEMETERY
CHAIR LYNN announced that the first order of business would be
HOUSE BILL NO. 208 "An Act authorizing the Department of
Military and Veterans' Affairs to establish and maintain an
Alaskan veterans' cemetery; and establishing the Alaska
veterans' cemetery fund in the general fund."
1:05:05 PM
DANIELLE BROWN, Staff to Representative David Guttenberg, Alaska
State Legislature, presented HB 208 on behalf of Representative
Guttenberg, sponsor. She explained that HB 208 seeks to
authorize the Department of Military & Veterans' Affairs (DMVA)
to establish and maintain a state veterans' cemetery in the
Interior. The DMVA would apply for a grant from the U.S.
Department of Veterans Administration (VA). The grant could
provide up to 100 percent of the design, construction, and
operating equipment [costs] for the proposed cemetery. Ms.
Brown relayed that she has been told by the VA that the
construction of the cemetery would cost $3.3 - $4 million.
MS. BROWN informed the committee that there are 11,164 veterans
in the Fairbanks area and three adjoining communities. The VA's
long-term goal is to provide operational veterans' cemeteries
[within] a 75-mile radius [of 90 percent of the veterans in the
country]. She pointed out that [from Fairbanks] the next
closest veterans' cemetery is in Anchorage, which is 350 miles
away. Ms. Brown further informed the committee that about 40
percent of families in Fairbanks have a veteran in the family
and 16 percent have one female veteran in the family.
Therefore, Fairbanks would qualify for a grant through the VA,
she stated.
1:08:04 PM
REPRESENTATIVE THOMAS directed attention to page 2, lines 23-24,
of HB 208, and inquired as to why the cemetery would serve
spouses and eligible dependents of Alaska veterans.
REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature,
sponsor, related his understanding that the aforementioned
language is the [VA's] eligibility [requirements].
MS. BROWN explained that veterans receive a [federal] plot
allowance of $300 and "within that the spouses are eligible to
be buried in the national cemeteries as well as the state
cemeteries."
CHAIR LYNN said that's correct, adding that both his parents and
grandparents, service members and nonservice members, are buried
in a military cemetery.
REPRESENTATIVE THOMAS said he was thinking about Arlington and
Sitka cemeteries that are for only veterans.
MS. BROWN said that [spouses are allowed to be buried in
Arlington National Cemetery]. She explained that the crypts are
two persons stacked on top of each other and usually there are
600 crypts per acre. She indicated that [spouses are allowed to
be buried] in the veterans' cemetery in Sitka as well.
REPRESENTATIVE ELKINS expressed concern that the federal grant
program may award the state up to 100 percent [for the cost of
the cemetery] because the "may" language provides a lot of
latitude. Therefore, he expressed the need for a more
definitive federal contribution to be specified.
REPRESENTATIVE GUTTENBERG stated that he didn't believe this
legislation would determine what the federal government will do.
The state will have to apply for the loan and see what
percentage the federal government provides. Furthermore, the
state isn't delineating a certain plot of land because the land
could be donated.
REPRESENTATIVE ELKINS highlighted that there are no letters of
support from any of the veterans' organizations in the state.
He suggested informing these organizations in order to obtain
letters of support.
MS. BROWN pointed out that there are individuals from the Alaska
Veterans Advisory Committee, the Alaska Native Veterans
Association, the American Legion, the Veterans' of Foreign Wars,
the Elks Club, the Disabled American Veterans (DAV), the
Military Order of Purple Hearts, and the Fairbanks Veterans'
center already support this and are willing to testify.
1:13:43 PM
REPRESENTATIVE GUTTENBERG said the impetus for this legislation
is the wife of a friend who was in the military and had been
working on this matter.
REPRESENTATIVE THOMAS inquired as to the definition of an
"Alaska veteran".
REPRESENTATIVE GUTTENBERG said the legislation doesn't seek to
define anything new because eligibility is based on federal
requirements. In fact, he opined that an "Alaska veteran" could
be a veteran who, while visiting Alaska, dies and it's
determined that it was that veteran's wish to be buried in
Alaska.
REPRESENTATIVE GRUENBERG noted that the committee packet does
include a resolution from the North Star Borough supporting the
cemetery as well as a hand-printed letter of support.
1:16:36 PM
REPRESENTATIVE GRUENBERG said he supports HB 208. He then
directed attention to page 2, lines 2-3, where the language now
specifies that [the balance in the account for special request
license plates] in excess of the issuing cost is now diverted to
the cemetery fund rather than for programs benefiting Alaska
veterans. Therefore, he suggested keeping the language "for the
support of programs benefiting Alaska veterans" and adding the
language "and" so that the excess funds from the special request
license plates could go to either support programs benefiting
Alaska veterans or the Alaska veterans' cemetery fund.
REPRESENTATIVE GUTTENBERG said that would be an acceptable
change.
REPRESENTATIVE GRUENBERG moved that the committee adopt
Conceptual Amendment 1, such that the language on page 2, lines
1-3, would read as follows: "be appropriated by the legislature
for the support of programs benefiting Alaska veterans and to
the Alaska veterans' cemetery fund created under AS 37.05.590".
MS. BROWN informed the committee that this particular aspect was
created with Senate Bill 146 [from the 23rd Alaska State
Legislature]. To date the money, in the amount of $800, has
just entered the general fund. Therefore, if no particular
veterans' association requests these funds, it is placed in the
general fund.
REPRESENTATIVE GRUENBERG refuted Ms. Brown's understanding, and
clarified that constitutionally funds can't be dedicated.
Therefore, funds are placed in the general fund and the
legislature appropriates the funds. He further explained that
this is a separate accounting concept. Representative Gruenberg
said that his amendment will make it clear that legally the
funds can be appropriated for either of the specified
[programs], although ultimately the funds will go wherever the
appropriation says it goes.
CHAIR LYNN, upon determining there was no objection, announced
that Conceptual Amendment 1 was adopted.
REPRESENTATIVE DAHLSTROM related her understanding that one of
the commanding officers at Fort Richardson Air Force Base had
sent a letter in support of HB 208. However, she had not seen a
copy of that letter. Representative Dahlstrom said that she
supports this idea, but she wanted to be sure her constituents
are taken care of.
MS. BROWN said that she has correspondence with the director of
the national cemeteries in the state, but cannot pass it out
until it passes through the proper channels of the military. In
further response to Representative Dahlstrom, Ms. Brown said
that the correspondence states that the Fort Richardson
[cemetery] will be full in 2025 and the national cemetery in
Sitka will be full in 2012. Furthermore, there is no conflict
with regard to the locations being Anchorage or Fairbanks
because one can't predict where an individual will want to be
buried.
REPRESENTATIVE GRUENBERG asked if it would be appropriate to
seek the expansion of the other two cemeteries, especially the
cemetery at Fort Richardson.
CHAIR LYNN pointed out that the land surrounding Fort Richardson
is federal land, and then questioned what the state can do with
federal land.
1:23:38 PM
JOYCE BROWNLOW, Fairbanks Elks Lodge, testified in support of HB
208. She informed the committee that over 11,000 veterans live
in the Fairbanks North Star Borough. She noted that she
recently attended a meeting discussing the formation of project
partnership, which provides area businesses and organizations
the opportunity to support military members and their families
during the upcoming deployment. This partnership, she opined,
will show appreciation to area soldiers and bring the community
together to help those family members left behind. She further
opined that this project will be fully embraced by the
[Fairbanks] community.
MS. BROWNLOW turned to the veterans now residing in the
[Fairbanks] community who she said deserve attention and a
respectful and honorable cemetery. Ms. Brownlow noted that
although the cemetery will be financed by a grant, about $80,000
will be financed by the state as set forth in HB 208. She then
informed the committee that the VA has estimated 112 deaths
annually in the area, and therefore Birch Hill cemetery may
reach its capacity within a year. Ms. Brownlow said that since
Alaska has more residents in the military than any other state
and Fairbanks North Star Borough has over 11,000 veterans, the
Interior would greatly benefit from a veterans' cemetery. Ms.
Brownlow concluded by urging the passage of HB 208.
1:26:19 PM
JOYCE ROETHLER, AMVETS, Unit 11; American Legion Auxiliary; VFW
3629 Auxiliary, related the difficulty with laying to rest a
veteran in a location that is far from his or her residence or
family's residence, but she highlighted the importance of a
family being at the internment and being able to visit the site.
Gaining access to the Fort Richardson cemetery, which is located
on the base, has proven to be problematic after [the terrorist
attacks of September 11, 2001]. Those without a military
identification card or those who aren't civil servants, have
great difficulty obtaining the ability to go on the base. Ms.
Roethler highlighted that there are many homeless veterans and
veterans who live in the Bush, all of which are veterans with
the same rights regarding their burial options. However, there
are extreme limitations regarding where veterans can be buried,
not to mention the spouses who want to be buried along side
them. Ms. Roethler emphasized the importance of taking care of
living veterans as well as those veterans who have passed on.
1:31:08 PM
REPRESENTATIVE DAHLSTROM acknowledged that since [the terrorist
attacks of September 11, 2001] security measures have increased
at Fort Richardson. She offered to help those who have problems
entering the base through the process.
CHAIR LYNN noted that even with base identification, it is
burdensome to go through the process to enter the base.
1:32:25 PM
BENNO CLEVELAND, President, Alaska Native Veterans Association;
Commander, the Military Order of Purple Hearts - Chapter 675,
began by relating support for HB 208. Mr. Cleveland echoed
earlier testimony regarding the number of veterans in the
Fairbanks North Star Borough and the lack of space [in the
existing] cemeteries. Mr. Cleveland expressed the need for
there to be a respectful cemetery where veterans can be laid to
rest. He then reviewed the number of members in the
organizations he is representing.
1:36:03 PM
JIMMY LECROY, Commander, American Legion - Post 11, related that
Post 11 unanimously supports HB 208. Furthermore, he assured
the committee that there will be a resolution from Alaska's
American Legion in support of this legislation.
1:37:32 PM
DANA NACHTRIEB, Marine Corps League - Detachment 674; Veterans
of Foreign War - Chapter 3629, said everyone he has talked to is
in favor of HB 208. He highlighted the long distance many of
those in the Interior have to travel to visit the veterans'
cemeteries. He highlighted that veterans' cemeteries in the
Interior have families visiting daily.
1:38:51 PM
GLENN HACKNEY began his testimony by characterizing the figure
of 11,000 veterans in the Fairbanks area as a gross
understatement. Mr. Hackney then encouraged the legislature to
pass HB 208, which he viewed as an opportunity for the
legislature to do something nonpartisan. He highlighted that
the blood spilled for this country was from citizens of this
country and those citizens should be recognized in Alaska.
Again, he urged passage of HB 208.
REPRESENTATIVE GUTTENBERG highlighted that Mr. Hackney is a
former member of the Alaska State Legislature.
1:41:45 PM
CHAIR LYNN, upon determining there was no one else who wished to
testify, closed public testimony.
REPRESENTATIVE THOMAS moved that the committee the following
amendment:
Page 2, line 23, following "Fairbanks",
Insert "and anywhere else that qualifies"
REPRESENTATIVE DAHLSTROM objected for discussion purposes.
REPRESENTATIVE GRUENBERG offered a technical amendment to the
aforementioned amendment such that the amendment would read as
follows:
Page 2, line 23,
Delete "an"
Page 2, line 23
Delete "cemetery"
Insert "cemeteries"
Page 2, line 23, following "Fairbanks"
Insert "and elsewhere in Alaska"
REPRESENTATIVE DAHLSTROM removed her objection. There being no
further objection, the amendment, as amended, was adopted.
REPRESENTATIVE DAHLSTROM moved to report HB 208, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, CSHB
208(MLV) was reported from the House Special Committee on
Military and Veterans' Affairs.
HB 212-PROPERTY TAX EXEMPTIONS FOR SENIORS/VETS
1:43:57 PM
CHAIR LYNN announced that the final order of business would be
HOUSE BILL NO. 212, "An Act relating to exemptions from
municipal property taxes for certain primary residences; and
providing for an effective date."
REPRESENTATIVE THOMAS moved to adopt CSHB 212, Version 24-
LS0684\F, Cook, 3/31/05, as the working document. There being
no objection, Version F was before the committee.
REPRESENTATIVE THOMAS, speaking as the sponsor of HB 212,
explained that current law mandates that senior citizens and
disabled veterans are exempt from the first $150,000 of their
assessed property value. In a community with 12 mills, that
amounts to about $1,800 a year, he specified. However, revenues
[from the state] going to communities have been suspended for
several years, which has cost many communities a significant
amount. For instance, since [the state] has stopped providing
funds for [the senior citizens property tax exemption], [the
program] has cost Haines over $ 1 million. Therefore, this
legislation places the senior citizen tax exemption under the
local municipalities' jurisdiction. The effective date of 2008
provides the municipalities two years to decide how to deal with
this exemption. Representative Thomas also pointed out that
Version F allows the municipalities the ability to base the
eligibility for the exemption on financial resources. Version F
also includes a description of the term "disabled veteran" in
this section of statutes.
REPRESENTATIVE THOMAS informed the committee that the statewide
revenue loss [for this exemption] is about 6 percent. However,
in Wrangell it's about 16 percent of the tax base while it's 13
percent of Ketchikan's tax base and 9 percent of the Mat-Su
[Borough's] and Petersburg's tax base. Representative Thomas
clarified that the idea behind this legislation is to provide
the local municipalities the authority to phase out the senior
tax exemption if they so choose. He characterized this
legislation as providing municipalities another tool [to deal
with diminishing revenue sharing].
1:47:56 PM
REPRESENTATIVE DAHLSTROM said she thinks HB 212 is a good bill,
but asked whether the word "veteran" needs to be in the title.
REPRESENTATIVE GRUENBERG pointed out that this legislation also
affects the senior citizen property tax exemption. Therefore,
he opined that the language "veterans" shouldn't be included in
the title.
REPRESENTATIVE THOMAS offered to research the need for a title
change and address it in the next committee of referral, the
House Community and Regional Affairs Standing Committee.
REPRESENTATIVE ELKINS expressed concern with this legislation
because [the senior property tax exemption] program was mandated
by the legislature. "For us to opt out and put the
responsibilities on the municipalities is wrong. And we should
try to do what's right," he stressed. Therefore, Representative
Elkins stated that the legislature should either do away with
the program or help fund it. Representative Elkins said he
wouldn't support this legislation, although he has served on a
municipal government and sympathizes with the sponsor's
position.
1:50:55 PM
REPRESENTATIVE GRUENBERG agreed with Representative Elkins. He
highlighted programs, such as the longevity bonus and revenue
sharing, for which the burden has been placed on the
municipalities. He related his understanding that
Representative Elkins has introduced legislation that would fund
the [revenue sharing and municipal assistance] programs.
REPRESENTATIVE THOMAS said he introduced this legislation per
the request of several communities and the Southeast Conference.
He informed the committee that he reviewed the possibility of
eliminating the program and phasing it out over time. However,
he relayed that he was told that the program couldn't be phased
out over time and that the best option was to transfer the
authority to the local municipalities. Representative Thomas
expressed concern that when the Baby Boomers, of which he is a
member, reaches the tax base at the same time, it will be a big
problem statewide. Representative Thomas noted that he, too,
has served at the local government level, but that local
government wished it had the tool to hold local meetings on the
option of phasing out the program. Furthermore, allowing the
aforementioned to be done via ordinance versus an election would
save the local government the cost of holding an election.
Representative Thomas related his understanding that the Alaska
Municipal League (AML) is in support of this as a tool to
address the large problem that will arise in about five years.
He then reminded the committee that the legislation does provide
individuals with a means for relief from the municipality.
1:54:48 PM
REPRESENTATIVE ELKINS confirmed that he has introduced
legislation to reimburse municipalities up to 25 percent. He
noted that the aforementioned legislation carries an
approximately $29 million fiscal note. Returning to HB 212,
Representative Elkins opined that when looking at seniors, in
general, they should be viewed in a different light than HB 212
provides. He suggested that seniors should be viewed as an
economic engine, and offered that in his community seniors, as
an economic engine, provide over $3 million dollars annually and
that dollar is estimated to turn three to five times in the
community. Furthermore, the tax exempt dollars turn three to
five times in a community. Representative Elkins related his
belief that it's shortsighted to not view seniors as an economic
engine.
1:56:07 PM
REPRESENTATIVE DAHLSTROM said she would like to do more research
on this issue, and related her preference for holding HB 212.
REPRESENTATIVE THOMAS highlighted that HB 212 does not eliminate
the senior citizen tax exemption. The legislation merely
provides a local option. He then added that the [Baby Boomer]
generation has had the benefit of inflation and thus should have
built up enough money and not be a burden on society. In fact,
some people receiving the exemption can afford to pay.
Representative Thomas specified that he's not trying to cripple
anyone, but merely wants to provide municipalities a tool.
1:57:35 PM
CHAIR LYNN noted that he is a senior and a veteran, and would
hate for the existence of the exemption to be dependent on where
one lives. He opined that there should be some form of
municipal sharing. In fact, he informed the committee of his
proposal to fund municipal governments with some of the Amerada
Hess funds. Chair Lynn reiterated his concern with regard to
this exemption being dependent upon where one lives in the
state. Therefore, he said he would like to table HB 212.
1:59:59 PM
REPRESENTATIVE THOMAS informed the committee that he introduced
HB 144, which would provide $150 million of the permanent fund
earnings reserve, by a vote, to be distributed to
municipalities. The aforementioned [and HB 212] are steps to
better the health of communities.
REPRESENTATIVE GRUENBERG said that his legislation, HB 52,
requiring the state to adopt a fiscal plan should include this
issue before the committee today.
2:02:38 PM
CHAIR LYNN announced that HB 212 would be tabled for further
discussion and study.
2:03:22 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Military and Veterans' Affairs meeting was
adjourned at 2:04 p.m.
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