04/13/2017 03:30 PM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB106 | |
| HB148 | |
| HB78 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 148 | TELECONFERENCED | |
| += | HB 78 | TELECONFERENCED | |
| + | HB 87 | TELECONFERENCED | |
| *+ | SB 106 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
April 13, 2017
3:30 p.m.
MEMBERS PRESENT
Senator Kevin Meyer, Chair
Senator David Wilson
Senator Cathy Giessel
Senator John Coghill
Senator Dennis Egan
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 106
"An Act relating to a municipal tax exemption or deferral for
economic development property; and relating to a municipal tax
exemption for a fire protection system."
- HEARD & HELD
HOUSE BILL NO. 148
"An Act relating to service areas in second class boroughs; and
providing for an effective date."
- MOVED SCS HB 148(STA) OUT OF COMMITTEE
HOUSE BILL NO. 78
"An Act establishing the second Monday of October of each year
as Indigenous Peoples Day."
- MOVED HB 78 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 106
SHORT TITLE: MUNI TAX EXEMPTION: ECON DEVEL PROPERTY
SPONSOR(s): SENATOR(s) COGHILL
04/05/17 (S) READ THE FIRST TIME - REFERRALS
04/05/17 (S) CRA, STA
04/11/17 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
04/11/17 (S) Moved CSSB 106(CRA) Out of Committee
04/11/17 (S) MINUTE(CRA)
04/12/17 (S) CRA RPT CS 3DP 1NR SAME TITLE
04/12/17 (S) DP: BISHOP, GARDNER, HOFFMAN
04/12/17 (S) NR: STEDMAN
04/13/17 (S) STA AT 3:30 PM BUTROVICH 205
BILL: HB 148
SHORT TITLE: SECOND CLASS BOROUGH SERVICE AREAS
SPONSOR(s): REPRESENTATIVE(s) CHENAULT
03/01/17 (H) READ THE FIRST TIME - REFERRALS
03/01/17 (H) CRA
03/07/17 (H) CRA AT 8:00 AM BARNES 124
03/07/17 (H) Heard & Held
03/07/17 (H) MINUTE(CRA)
03/09/17 (H) CRA AT 8:00 AM BARNES 124
03/09/17 (H) Moved HB 148 Out of Committee
03/09/17 (H) MINUTE(CRA)
03/10/17 (H) CRA RPT 7DP
03/10/17 (H) DP: WESTLAKE, SADDLER, TALERICO,
DRUMMOND, RAUSCHER, FANSLER, PARISH
03/31/17 (H) TRANSMITTED TO (S)
03/31/17 (H) VERSION: HB 148
04/03/17 (S) READ THE FIRST TIME - REFERRALS
04/03/17 (S) STA
04/06/17 (S) STA AT 3:30 PM BUTROVICH 205
04/06/17 (S) -- MEETING CANCELED --
04/11/17 (S) STA AT 3:30 PM BUTROVICH 205
04/11/17 (S) -- MEETING CANCELED --
04/13/17 (S) STA AT 3:30 PM BUTROVICH 205
BILL: HB 78
SHORT TITLE: INDIGENOUS PEOPLES DAY
SPONSOR(s): REPRESENTATIVE(s) WESTLAKE
01/25/17 (H) READ THE FIRST TIME - REFERRALS
01/25/17 (H) CRA
01/31/17 (H) CRA AT 8:00 AM BARNES 124
01/31/17 (H) Moved HB 78 Out of Committee
01/31/17 (H) MINUTE(CRA)
02/01/17 (H) CRA RPT 4DP 2NR
02/01/17 (H) DP: WESTLAKE, DRUMMOND, FANSLER, PARISH
02/01/17 (H) NR: TALERICO, RAUSCHER
02/03/17 (H) TRANSMITTED TO (S)
02/03/17 (H) VERSION: HB 78
02/06/17 (S) READ THE FIRST TIME - REFERRALS
02/06/17 (S) CRA, STA
02/21/17 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/21/17 (S) Scheduled but Not Heard
02/23/17 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/23/17 (S) Heard & Held
02/23/17 (S) MINUTE(CRA)
02/28/17 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/28/17 (S) Moved HB 78 Out of Committee
02/28/17 (S) MINUTE(CRA)
03/01/17 (S) CRA RPT 4DP
03/01/17 (S) DP: BISHOP, HOFFMAN, GARDNER, MACKINNON
03/23/17 (S) STA AT 3:30 PM BUTROVICH 205
03/23/17 (S) Bill Hearing Postponed to 3/28/17
03/28/17 (S) STA AT 3:30 PM BUTROVICH 205
03/28/17 (S) Heard & Held
03/28/17 (S) MINUTE(STA)
04/06/17 (S) STA AT 3:30 PM BUTROVICH 205
04/06/17 (S) -- MEETING CANCELED --
04/11/17 (S) STA AT 3:30 PM BUTROVICH 205
04/11/17 (S) -- MEETING CANCELED --
04/13/17 (S) STA AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
RYNNIEVA MOSS, Staff
Senator Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of SB 106.
CHRIS SCHUTTE, Director
Economic and Community Development
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 106.
REPRESENTATIVE MIKE CHENAULT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 148, provided an overview.
REPRESENTATIVE GARY KNOPP
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 148.
LARRY PERSILY, Chief of Staff to Borough Mayor
Kenai Peninsula Borough
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 148.
GEORGE PIERCE, representing self
Kasilof, Alaska
POSITION STATEMENT: Testified in opposition of HB 148.
CHRISTINE MARASIGAN, Staff
Senator Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the CS for HB 148.
REPRESENTATIVE DEAN WESTLAKE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 78, provided an overview.
ELIZABETH REXFORD, Staff
Representative Westlake
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of HB 78.
ALBERT NINGEULOOK, representing self
Shishmaref, Alaska
POSITION STATEMENT: Testified in support of HB 78.
MARILYN RUSSELL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 78.
ACTION NARRATIVE
3:30:25 PM
CHAIR KEVIN MEYER called the Senate State Affairs Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Giessel, Coghill, Wilson, and Chair Meyer.
Senator Egan joined the meeting shortly after Chair Meyer's call
to order.
SB 106-MUNI TAX EXEMPTION: ECON DEVEL PROPERTY
3:31:24 PM
CHAIR MEYER announced the consideration of SB 106.
3:31:34 PM
SENATOR COGHILL, sponsor of SB 106, explained that the bill
addresses previous legislation that was narrowly crafted and
allows municipal authority and flexibility for economic
development issues.
3:32:16 PM
RYNNIEVA MOSS, Staff, Senator Coghill, Alaska State Legislature,
Juneau, Alaska, noted that SB 106 was HB 370 during the 29th
Alaska State Legislature. She concurred with Senator Coghill
that SB 106 provides more flexibility to local municipalities on
giving property tax exemptions for economic development
property. She noted that the current statute provides a five-
year limit for a property-tax emption, but SB 106 eliminates the
limitation and allows municipalities to determine what the limit
for the tax emption will be. She added that the bill covers tax
exemptions and deferrals.
MS. MOSS presented a sectional analysis as follows:
Section 1:
· Removes the five-year limitation on economic
development property exemptions and deferrals.
· Removes renewals provision and the limit on
property tax exemptions for renewals.
· Eligibility for economic development property
exemption, (m)(1), is based on one qualifier
instead of multiple qualifiers.
· Adds a qualifier for property development that
enables a significant capital investment in
physical infrastructure that:
1. Expands the tax base of the municipality;
2. Generates property tax revenue after the
exemption expires.
Section 2:
· Makes the mandated tax exemption for a fire-
protection system up to 2 percent of the value of
the structure optional.
Section 3:
· Repeals AS 29.45.030(l) which was the mandated
tax exemption for a fire-protection system.
MS. MOSS provided an example of what SB 106 will mean to
municipalities as follows:
The Matanuska-Susitna Borough gave us some information
on their sports center. The land that the sports
center is on had an assessed value prior to
construction of $294000, today the land and the
building is assessed at $6.998 million; the
approximate tax bill on that property, today
undeveloped would be $4900 a year, today they are
generating $102500 a year. Since the exemption
expired, they have raised $615000 in revenues; had
that development not occurred, that $600000 would
dwindle down to $31000. So, it's a significant avenue
for municipalities to raise additional revenue which
in today's world is important because they have less
contributions from the state.
3:35:44 PM
CHAIR MEYER opened public testimony.
3:36:20 PM
CHRISTOPHER SCHUTTE, Director, Economic and Community
Development, Municipality of Anchorage, Anchorage, Alaska,
testified in support of SB 106. He commented that Senator
Coghill and his staff have done a great job of capturing the
important need and value in changing the current state statutes.
He set forth that SB 106 will be a useful tool in Anchorage for
encouraging development and redevelopment of all sizes, not only
of the scale that Ms. Mention regarding the sports center in the
Matanuska-Susitna Borough.
He disclosed that Anchorage is running out of available
developable land and the legislation will allow the municipality
to incentivize and encourage the redevelopment of aging-housing
stock. He pointed out that one of the bill's components will
allow the municipal-infrastructure requirement that Anchorage
places upon developers to be eligible for rebate through a
property-tax-abatement tool which will be especially powerful.
He said Anchorage has multiple examples of projects that did not
"pencil out" due to the municipal requirement to provide public
infrastructure or public upgrades, as a result the municipality
is left with undeveloped land; for example, a former gravel site
was purchased by a company looking to build a $40 million
distribution warehouse, but the requirements placed upon the
project would have required $4.5 million to bring public
infrastructure up to code.
MR. SCHUTTE summarized that SB 106 is a very powerful tool that
will provide municipalities across the state with the
flexibility to create incentives that offset mandatory expenses
through decreased tax in the short term.
3:39:47 PM
CHAIR MEYER closed public testimony.
3:39:55 PM
CHAIR MEYER set SB 106 aside for future consideration.
HB 148-SECOND CLASS BOROUGH SERVICE AREAS
3:40:06 PM
CHAIR MEYER announced the consideration of HB 148. He noted that
SB 77, sponsored by Senator Micciche, is the companion bill to
HB 148.
3:40:32 PM
REPRESENTATIVE MIKE CHENAULT, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 148, provided an overview as follows:
HB 148 would expand the authority of the second-class
borough to exercise a local option of creating a non-
taxable service area to provide emergency response
along state-highway corridors that are not currently
covered by any existing emergency-service areas; in
particular, this would allow the Kenai Peninsula
Borough to establish a service area for coordinated
coverage for the almost 90 miles of Sterling and
Seward highways that are not within the current
existing boundaries of any existing emergency-service
areas.
REPRESENTATIVE CHENAULT referenced a map and noted that the
Sterling and Seward highways' area is very highly traveled and
currently is semi-serviced with two-volunteer fire departments.
He remarked that the voluntary staff is aging, and HB 148 is a
good idea on how to fund the noted service area. He explained
that the legislation would be implemented by action of the Kenai
Peninsula Borough Assembly.
3:42:32 PM
REPRESENTATIVE GARY KNOPP, Alaska State Legislature, Juneau,
Alaska, testified in support of HB 148. He detailed his previous
history with the Kenai Peninsula Borough Assembly as follows:
In my time on the Kenai Peninsula Borough Assembly, we
struggled with volunteer service in the area and as
equipment and volunteers aged, we've been running
short. So, we've been struggling to find the way to
provide medical services as most of you know, and
Senator Giessel at one time represented this area, so
she's probably familiar with, but it doesn't allow us
by law to exercise any type of support because it is
outside of the service areas that currently exist, so
our hands are somewhat tied in providing support. From
January 2015 to December 2016, we serviced 123-medical
calls, ambulance calls in that particular area. I'm
sure most people have driven that from Cooper Landing
to Hope, Seward, and then over the pass to Girdwood,
and that's primarily the area we are talking about
servicing.
3:44:32 PM
CHAIR MEYER opened public testimony.
3:45:00 PM
LARRY PERSILY, Chief of Staff to Borough Mayor, Kenai Peninsula
Borough, Soldotna, Alaska, testified in support of HB 148. He
disclosed that approximately 4000 vehicles traverse the Seward
and Sterling highways daily with levels doubling and tripling
during the summer peak that results in a lot of accidents.
MR. PERSILY explained that the Kenai Peninsula Borough does not
have area-wide-emergency-services powers and only in a specific
service area that results in a no-service area on the highway
right-of-way. He said HB 148 would allow a local option to the
six-second-class boroughs around the state via an assembly
approval and public vote the ability to create a service area
for emergency-response services on highway corridors and state
right-of-ways where there are no residents or private property.
He detailed that the Kenai Peninsula Borough's mayor would
propose to the borough assembly that federal payment-in-lieu-of-
taxes (PILT) be used because the highway corridor is mostly
federal property.
MR. PERSILY summarized that HB 148 would allow the borough
assembly a local option to help take care of residents, Alaskans
and visitors that use the Sterling and Seward highways year-
round.
3:47:02 PM
GEORGE PIERCE, representing self, Kasilof, Alaska, testified in
opposition of HB 148. He said the state cannot afford new
projects. He opined that the bill is a "land grab" by the Kenai
Peninsula Borough. He claimed that local-tax dollars outside of
the federal money would have to be used to fund the proposed
service area.
3:51:40 PM
CHAIR MEYER closed public testimony.
SENATOR GIESSEL explained that during her time representing the
Kenai Peninsula Borough that there was a need for equipment. She
asked Representative Chenault if HB 148 would cover the cost of
equipment for the volunteer fire departments.
REPRESENTATIVE CHENAULT noted that Representative Knopp recently
served on the Kenai Peninsula Borough Assembly and could better
address Senator Giessel's question.
REPRESENTATIVE KNOPP replied that the initial intent is not to
purchase any equipment, but conceded that the PILT money could
be used in the future to update an ambulance or replace
antiquated equipment. He noted that the borough annually
receives $2 million to $3 million in PILT dollars and the mayor
plans on spending up to 20 percent on the service area.
SENATOR GIESSEL concurred with the representatives' comments
regarding the aging-volunteer population in the Kenai Peninsula
Borough region. She opined that the area has a crisis due to
long accident-response times during bad-weather-driving
conditions and thanked the two representatives for coming up
with a collaborative solution.
3:57:13 PM
SENATOR GIESSEL moved to adopt the committee substitute for HB
148, version: 30-LS0597\U as the working document of the
committee.
CHAIR MEYER objected for discussion purposes.
3:58:00 PM
CHRISTINE MARASIGAN, Staff, Senator Meyer, Alaska State
Legislature, Juneau, Alaska, explained that the CS combines SB
106 and HB 148. She detailed as follows:
Sections 1-3 of SB 106 has been inserted in HB 148
following Section 1. The subsequent sections have been
renumbered and it was thought that since both bills
deal with local-control issues, that it related to
either municipal-tax exemption or non-taxable
services, that those two things would go well
together; the office did contact the sponsors of both
bills and that seemed amenable.
CHAIR MEYER removed his objection.
SENATOR COGHILL said he appreciated the cooperation of the House
members in looking at the issue addressed in HB 148.
3:59:29 PM
SENATOR GIESSEL moved to report the CS for HB 148, version: 30-
LS0597\U, [SCS HB 148(STA)], from committee with individual
recommendations and attached fiscal note(s).
CHAIR MEYER announced that seeing no objection, the bill moved
out of committee.
3:59:49 PM
At ease.
HB 78-INDIGENOUS PEOPLES DAY
4:01:30 PM
CHAIR MEYER called the committee back to order and announced the
consideration of HB 78.
4:02:49 PM
REPRESENTATIVE DEAN WESTLAKE, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 78, announced that his staff member,
Elizabeth Rexford, will provide the committee with a bill
overview.
4:03:22 PM
ELIZABETH REXFORD, Staff, Representative Westlake, Alaska State
Legislature, Juneau, Alaska, explained that quite a few
municipalities and school districts have established their own
Indigenous Peoples Day and the thought was for the state to
adopt the designation as well to instill a positive move
forward.
MS. REXFORD detailed that HB 78 would establish a recognition
day on the second Monday of October, which is also Columbus Day.
She disclosed that the only negative feedback received was the
recognition of was indigenous people on a holiday that was
perceived as negative. She opined that recognizing Indigenous
Peoples Day on Columbus Day would invoke a positive response of
inclusivity, educate Alaskans, and provide a reason for everyone
to celebrate indigenous peoples' positive history.
4:06:19 PM
REPRESENTATIVE WESTLAKE emphasized that native communities have
always been inclusive. He asserted that there is nothing
exclusive about celebrating both Columbus Day and Indigenous
Peoples Day on the second Monday in October. He said the intent
is to move forward as the governor has been doing every year and
to make permanent the recognition of how rich and vibrant
Alaskans are together as the great melting pot in America.
SENATOR COGHILL stated that he appreciated Representative
Westlake's approach. He remarked that some of the bill's support
letters have caused him some concern regarding the replacement
of Columbus Day due to its negative perception by some, but
positive by others, including himself. He asserted that the
Legislature is the place where different focuses in life get to
work together, but the letters of support quite often were
divisive. He said the bill addresses culturally sensitive issues
where sometimes the cultures clash. He reiterated that he
appreciated the sponsor's approach with the idea to celebrate.
MS. REXFORD noted that letters of support from previous years
did have somewhat of a negative undertone, but asserted that
after reaching out to different organizations that they all had
a positive view of the day. She asserted that her explanation of
inclusivity changed the tone a little bit and letters have been
positive.
4:08:43 PM
SENATOR COGHILL asserted that what Ms. Rexford has done is allow
the conversation to take on a new look in a celebration of both
rather than become a culture clash.
MS. REXFORD shared with the committee her native studies
background in addressing rhetoric and negative events; HB 78 is
a very positive movement forward in that area.
CHAIR MEYER asked if other states have passed similar
legislation.
REPRESENTATIVE WESTLAKE answered that several states have passed
legislation that recognizes and includes indigenous peoples. He
noted that half of the nation's tribes are in Alaska.
4:10:34 PM
CHAIR MEYER opened public testimony.
4:11:10 PM
ALBERT NINGEULOOK, representing self, Shishmaref, Alaska,
testified in support of HB 78. He explained that the bill
positively recognizes the original inhabitants as well as people
who have settled in the state from other cultures. He asserted
that the bill is a very positive step in recognizing all the
people and cultures that have settled in the United States.
4:13:52 PM
MARILYN RUSSELL, representing self, Fairbanks, Alaska, testified
in support of HB 78. She said so many wrongs have occurred in
the state that need to be righted and to let the legislation be
one of them. She referenced Elizabeth Peratrovich and demanded
that changes be made to recognize indigenous peoples. She
remarked that indigenous people and their culture make Alaska
culturally rich and diversified. She asked that the second
Monday in October be renamed "Indigenous Peoples Day."
4:15:03 PM
CHAIR MEYER closed public testimony.
SENATOR COGHILL remarked that the previous testimony was an
explanation of why the approach must clearly explain the
difference between joining and replacing. He said "joining" is
great, but "replacing" not so great. He opined that his remark
is the kind of question that will have to be continually dealt
with. He said, "I'm not going to object because what it does is
it begs the question and then we just got to give an answer to
it."
CHAIR MEYER detailed that HB 78 has a zero-fiscal note and was
assigned next to the Senate Rules Committee. He entertained a
motion for HB 78.
4:16:41 PM
SENATOR GIESSEL moved to report HB 78, version: 30-LS0368\A from
committee with attached zero-fiscal note and individual
recommendations.
4:16:50 PM
CHAIR MEYER announced that being no objection, the motion
carried.
4:17:35 PM
There being no further business to come before the committee,
Chair Meyer adjourned the Senate State Affairs Committee at 4:17
p.m.