Legislature(1993 - 1994)
03/09/1993 09:06 AM Senate CRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
March 9, 1993
9:06 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chairman
Senator Robin Taylor, Vice Chairman
Senator Rick Halford
Senator Fred Zharoff
MEMBERS ABSENT
Senator Al Adams
COMMITTEE CALENDAR
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."
SENATE BILL NO. 42
"An Act relating to municipal taxation of alcoholic
beverages; and providing for an effective date."
SENATE BILL NO. 88
"An Act relating to grants to municipalities, named
recipients, and unincorporated communities; establishing
capital project matching grant programs for municipalities
and unincorporated communities; establishing a local share
requirement for capital project grants to municipalities,
named recipients, and unincorporated communities; and
providing for an effective date."
SENATE BILL NO. 89
"An Act making appropriations for capital project matching
grant programs; and providing for an effective date."
SENATE BILL NO. 95
"An Act relating to multiple-beneficiary charitable gaming
permits and door prizes for charitable gaming; and providing
for an effective date."
SENATE BILL NO. 102
"An Act relating to municipal property tax exemptions for
certain residences and to property tax equivalency payments
for certain residents; and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
HB 73 - No previous action to record.
SB 42 - See Community & Regional Affairs minutes
dated 2/25/93, 3/2/93, 3/4/93.
SB 88 - See Community & Regional Affairs minutes
dated 2/16/93, 2/18/93, 2/23/93, 3/2/93,
3/4/9.
SB 89 - See Community & Regional Affairs minutes
dated 2/16/93, 2/18/93, 2/23/93, 3/2/93,
3/4/93.
SB 95 - No previous action to record.
SB 102 - See Community & Regional Affairs minutes
dated 2/18/93, 2/25/93, 3/4/93.
WITNESS REGISTER
Rena Buckovich, Staff to Representative Eileen
MacLean
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Offered information on HB 73
Bryce Edgmon, Staff to Senator George Jacko
State Capitol
Juneau, AK 998-1-1182
POSITION STATEMENT: Offered information on CSSB 42 (CRA)
Shelby Stastny, Director
Office of Management & Budget
P.O. Box 110020
Juneau, AK 99811-0020
POSITION STATEMENT: Offered information on SB's 88 & 89
John Hansen, Gaming Manager
Division of Occupational Licensing
Department of Commerce & Economic Development
P.O. Box 110806
Juneau, AK 99811-0806
POSITION STATEMENT: Offered information on SB 95
ACTION NARRATIVE
TAPE 93-12, SIDE A
Number 001
The Senate Community & Regional Affairs Committee was called
to order by Chairman Randy Phillips at 9:06 a.m.
CHAIRMAN RANDY PHILLIPS introduced HB 73 (ANCSA STATE TAX
EXEMPTIONS) as the first order of business.
RENA BUCKOVICH, staff to Representative Eileen MacLean,
explained that the legislation was introduced to bring state
law into compliance regarding the exemption of ANCSA
property from taxation. In 1987, federal law was changed to
continue the property tax exemption from federal, state or
local taxation on ANCSA land until development occurs. The
bill reflects those changes in state law to avoid confusion
in the application of the state's tax laws.
Ms. Buckovich said that in the drafting process, the
attorney noted other sections of state law which need to be
updated and has included those changes in HB 73. For the
most part, they represent technical or stylistic wording
changes to update state law to federal law.
HB 73 does not expand or reduce any benefits already
mandated by federal law. It merely cleans up state law, and
ensures that obsolete state statutes do not lead to
misinterpretation by state assessors and others who work
with Alaska's tax law.
Ms. Buckovich said that to her knowledge, there are no
problems or concerns with the legislation and that it is
primarily housekeeping in nature.
There being no other witnesses present to testify on HB 73,
the Chairman asked for the pleasure of the committee.
SENATOR TAYLOR moved that HB 73 be passed out of committee
with individual recommendations. Hearing no objection, it
was so ordered.
Number 095
CHAIRMAN RANDY PHILLIPS introduced SB 42 (LOCAL SALES TAX ON
ALCOHOLIC BEVERAGES) as the next order of business.
BRYCE EDGMON, staff to Senator George Jacko, speaking to the
proposed committee substitute, said the only change is that
it exempts communities that have a population larger than
2,500 from being impacted by the bill.
SENATOR TAYLOR moved that CSSB 42 (CRA) be adopted. Hearing
no objection, the motion carried.
SENATOR TAYLOR moved that CSSB 42 (CRA) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
Number 140
CHAIRMAN RANDY PHILLIPS brought SB 88 (CAPITAL PROJECT
GRANTS) before the committee. He directed attention to a
proposed amendment that limits administrative costs for
capital matching projects to 10 percent.
SENATOR TAYLOR moved the adoption of the following amendment
AMENDMENT #1
Page 5, after line 7, insert a new bill section to read:
"*Sec. 8. AS 37.05.321 is amended by adding a new
subsection to read:
(b) No more than 10 percent of the total amount
of money spent on a capital project funded in whole or in
part with money granted under AS 37.05.315 - 37.05.317 may
be used for administrative expenses."
Renumber the following bill sections accordingly.
Page 7, line 4, after "state." insert: "No more than 10
percent of the total amount of money spent on a capital
project funded in whole or in part with money appropriated
under this subsection may be used for administrative
expenses."
Page 9, line 22, after "state." insert: "No more than 10
percent of the total amount of money spent on a capital
project funded in whole or in part with money appropriated
under this subsection may be used for administrative
expenses."
Page 13, line 10: Delete "sec. 8" and insert "sec. 9"
Page 13, line 13: Delete "sec. 8" and insert "sec. 9"
Page 13, line 18: Delete "sec. 11" and insert "sec. 12"
Hearing no objection to the amendment, the Chairman stated
amendment #1 had been adopted and would be incorporated into
a C&RA committee substitute.
Number 180
CHAIRMAN RANDY PHILLIPS directed attention to a proposed
amendment #2, which was suggested by Mayor Fink of the
Municipality of Anchorage. It would change the match
requirement to a 75/25 match as opposed to the 75/30 match
requirement in SB 88.
SENATOR TAYLOR said he was not satisfied that the
percentages in the bill are fair and equitable. He said he
appreciates the simplicity of the formula because it applies
readily across the board based merely on population, but he
still thinks that there should be something within the
formula that adjusts for the wealth factor.
Number 242
SHELBY STASTNY, Director, Office of Management & Budget,
Office of the Governor, said that as the legislation was
drafted the previous year, it had a wealth factor based on
DCRA's assessed valuations. The formula was lengthy, and
strictly out of a matter of simplicity, the bill was drafted
in its current form. He said he agreed that there are
circumstances where the formula is not equitable for some of
the smaller communities, but the dollars involved are
usually fairly small because the amounts allocated in SB 88
are based strictly on population. He added that his office
would be willing to work with the committee or Senator
Taylor on another formula that would be more equitable.
SENATOR TAYLOR said he didn't want to hold the legislation
up and that he would work with the Finance Committee on his
concern.
CHAIRMAN RANDY PHILLIPS asked Mr. Stastny for his comments
on amendment #2. SHELBY STASTNY responded that Governor
feels strongly that the 50/50 match down the road is where
we ought to be headed and prefers the 75/30 match.
There being no motion on amendment #2, the Chairman asked
for the pleasure of the committee.
Number 290
SENATOR TAYLOR moved that CSSB 88 (CRA) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
CHAIRMAN RANDY PHILLIPS brought SB 89 (APPROP: CAPITAL
PROJECT MATCHING GRANTS) before the committee. He then
asked for the pleasure of the committee.
Number 320
SENATOR TAYLOR moved that SB 89 be passed out of committee
with individual recommendations. Hearing no objection, it
was so ordered.
Number 325
CHAIRMAN RANDY PHILLIPS introduced SB 95 (MULTIPLE PERMITTEE
GAMING; PRIZE AMOUNTS) as the next order of business.
SENATOR FRED ZHAROFF, prime sponsor of SB 95, said the
legislation is an attempt to clarify what is already in
statute. It establishes a new charitable gaming permit
called a multiple-beneficiary permit.
Senator Zharoff said the terms of the legislation allows two
to six entities that would otherwise qualify for a gaming
permit to join together and apply for a multiple-beneficiary
permit. It allows the permit holders to operate without an
operator to give them more control.
Number 354
JOHN HANSEN, Program Manger, Department of Commerce &
Economic Development, stated this is already done by
regulation and this would recognize it in statute.
Mr. Hansen noted that the department has prepared a fiscal
note to fund a position that would actually be responsible
for issuing these new class of licenses.
Number 362
SENATOR TAYLOR asked what impact this legislation would have
on the current permittees that are operating. JOHN HANSEN
answered that there are approximately seven groups of people
that are doing this in the state right now. They would be
recognized as a separate entity and that would require them
to get licenses and to file the same reports that operators
do. In some instances, it would make their operations
easier because they could buy pull-tabs under one permit
number, but there will also be an increase in their
reporting requirements. The legislation will allow the
permittees to join together at a single facility, share the
expenses, and get a single permit to operate that one
facility.
Number 394
SENATOR ZHAROFF raised his concern with the fiscal note
because he didn't think it would involve an additional
person because this is something that is already being done.
JOHN HANSEN responded that the department is issuing a
tremendous amount of licenses already. They have one
examiner performing this duty and right now he is over a
five weeks behind. The bill will probably recognize another
30 to 40 organizations that may want to join together and do
these activities and they will be required to file separate
applications for each of those locations, which will
increase the workload and push the issuance of the permits
seven or eight weeks behind.
Number 410
CHAIRMAN RANDY PHILLIPS directed attention to a letter from
the Juneau Soccer Club in support of the legislation, but
suggesting some changes. JOHN HANSEN said he has seen the
letter, and the concerns outlined in the letter are
addressed in the legislation.
CHAIRMAN PHILLIPS also directed attention to a letter from
Pat Vincent, Executive Officer of the Kenai Builders
Association. JOHN HANSEN explained that the bill prohibits
the people that hold these permits from operating in other
locations by saying they can't have another permit. He
said he can't think of a good reason why organizations
should be limited to do business at one location.
SENATOR ZHAROFF suggested that because the bill now has a
fiscal note, it may also need a Finance referral, although
he disagrees that there is the need for an additional staff
person. The Chairman said he would request an additional
referral to the Finance Committee.
Number 525
CHAIRMAN RANDY PHILLIPS pointed out that the bill has at
least two more committees of referral where some of these
problems can be worked out. He then asked for the pleasure
of the committee.
SENATOR TAYLOR moved that SB 95 be passed out of committee
with individual recommendations. Hearing no objection, it
was so ordered.
Number 545
The final order of business was SB 102 (MUNICIPAL PROPERTY
TAX EXEMPTIONS). There was a committee substitute before
the committee which includes three changes: (1) it exempts
the optional taxes from the full and true value
determination by DCRA in the education foundation formula;
(2) it changes the effective date from January 1, 1993 to
January 1, 1994; and (3) it retains the mandatory property
tax exemption and renters rebate for disabled veterans.
Number 555
SENATOR ZHAROFF asked why the effective date was changed
SHIRLEY ARMSTRONG, staff to Senator Phillips, explained that
their office had been contacted by several people asking
that the effective date not occur this year. The department
has said that it wouldn't affect tax assessments because
they couldn't gear up fast enough to deny the exemption.
She said the department did suggest July 1, 1993, because
that assures that they couldn't deny the exemption for this
year.
Speaking to the first change in the committee substitute
whereby it exempts the optional taxes from the full and true
value determination, SENATOR TAYLOR said the modification
makes certain that if the municipalities chose to exempt
those properties they would still be exempted under DCRA.
CHAIRMAN RANDY PHILLIPS explained the third amendment
eliminates the disabled veterans to both the home owners tax
exemption as well as the renters rebate, which amounts to
approximately $230,0000.
TAPE 93-12, SIDE B
Number 001
CHAIRMAN RANDY PHILLIPS asked for the pleasure of the
committee.
SENATOR TAYLOR moved that CSSB 102 (CRA) be adopted.
Hearing no objection, the motion carried.
SENATOR TAYLOR moved that CSSB 102 (CRA) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
There being no further business to come before the
committee, the meeting was adjourned at 9:54 a.m.
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