HB 170-MUNI TAX EXEMPTION FOR CERTAIN VOLUNTEERS  9:03:28 AM CHAIR MUNOZ announced that the final order of business would be HOUSE BILL NO. 170, "An Act relating to municipal property tax exemptions on residences of certain volunteer emergency services personnel and the widows and widowers of volunteer emergency services personnel; and providing for an effective date." 9:03:39 AM CHAIR MUNOZ informed the committee that the committee substitute (CS), labeled 27-LS0562\I, Bullard, 4/6/11, includes changes discussed at the prior meeting. 9:04:15 AM REPRESENTATIVE ERIC FEIGE, Alaska State Legislature, speaking as the sponsor of HB 170, directed attention to page 1, line 12, which changes the language to read: "may by ordinance". The aforementioned language change implies that municipalities would have to opt in rather than opt out of the proposed exemption. The next change is on page 1, lines 12-13, which reduces the exemption to "the first $150,000 of assessed value". With regard to the questions concerning what constitutes an "active volunteer", the language on page 2, lines 7-15, was reworded to specify what qualifies as a volunteer. The language specifies that a volunteer is someone who has been a volunteer for at least two years and meets the standards determined jointly by the local fire department and the municipality. 9:07:16 AM REPRESENTATIVE GARDNER asked whether passage of [Version I] would require an annual application from the volunteer firefighter or would the individual be grandfathered in after the initial application. She asked if the application would require verification of "active" status by a fire department, emergency medical services, or rescue services entity. REPRESENTATIVE FEIGE, in response to the first question, confirmed that a volunteer firefighter would have to apply for the exemption each year. In further response to Representative Gardner, Representative Feige related his understanding that the widow/widower of a volunteer firefighter would have to apply each year as well. REPRESENTATIVE GARDNER clarified that she's trying to determine if a widow would qualify in perpetuity or only for the year following the change in status to a widow. REPRESENTATIVE FEIGE related his understanding that a widow/widower of an individual who was a volunteer firefighter at the time of his/her death would be eligible for the exemption. 9:09:13 AM REPRESENTATIVE GARDNER inquired as to the location of the language specifying that it's an annual application. REPRESENTATIVE FEIGE answered page 2, lines 22-23. Furthermore, the municipality sets terms of the application, and thus the municipality could require an annual application or an application that applies indefinitely. REPRESENTATIVE GARDNER surmised then that there is the potential for an individual to be a volunteer firefighter for two years, retire, and have the benefit for 20-30 years. REPRESENTATIVE FEIGE answered yes, if that's the rule of the municipality. 9:11:21 AM REPRESENTATIVE AUSTERMAN told the committee that seniors in Kodiak have to apply for the senior exemption annually. 9:11:39 AM REPRESENTATIVE SADDLER asked if the sponsor intends for the widow/widower to receive the proposed exemption even if he/she remarries. REPRESENTATIVE FEIGE said that he hadn't considered that. REPRESENTATIVE SADDLER asked if the sponsor would entertain a conceptual amendment such that a widow/widower would receive the proposed exemption while he/she remains unmarried. REPRESENTATIVE FEIGE replied that he wouldn't object to such an amendment. REPRESENTATIVE SADDLER then clarified that such a change would mean that the widow/widower of an individual who qualified for this proposed exemption would no longer qualify for the exemption if he/she remarried. REPRESENTATIVE FEIGE remarked that he wasn't sure if one loses their widow/widower status when one remarries. 9:13:00 AM REPRESENTATIVE CISSNA, drawing from her experience, commented that a widow/widower's situation changes once he/she remarries and the widow/widower has knowledge of the impending change. She opined that the municipalities should have something to say about exemptions that result in one party bringing a benefit to the marriage. REPRESENTATIVE FEIGE said that he didn't disagree, adding that the language in Version I is flexible enough to allow municipalities to address such situations. 9:14:03 AM REPRESENTATIVE GARDNER asked if [volunteer firefighters] who receive a stipend per call or a pension benefit are considered volunteers under the definition in Version I. REPRESENTATIVE FEIGE explained that in the fire service [volunteer firefighters who receive compensation] are referred to as paid on-call volunteers. Again, the municipality would determine the definition of an "active volunteer." 9:14:49 AM REPRESENTATIVE GARDNER recalled being told that there are 2,000 volunteer firefighters statewide. However, the definition of "volunteer" per AS 18.15.250(d)(1) would seem to increase the number of eligible individuals. The definition of "volunteer" per AS 18.15.250(d)(1) specifies: (4) "volunteer" means that the person is an active volunteer of a first responder service, a rescue service, an ambulance service, or a fire department that provides emergency medical or rescue services as part of its duties. 9:15:36 AM MICHAEL PASCHALL, Staff, Representative Eric Feige, Alaska State Legislature, explained that in Alaska the majority of emergency medical services are part of a fire department. Therefore, the numbers used during discussions of this legislation would include most of the active emergency service medical service providers. Although [the definition of volunteer includes individuals besides firefighters] there is no way to obtain a good number, it would be a relatively small increase in the number of individuals eligible for the proposed exemption. 9:16:20 AM REPRESENTATIVE AUSTERMAN inquired as to how many property tax exemptions the state pays for, other than the senior property tax exemption. REPRESENTATIVE FEIGE said that he isn't aware of the exact number. However, he related his belief that in recent years the state hasn't funded those property tax exemptions. REPRESENTATIVE AUSTERMAN asked if this legislation prohibits double dipping, such that an individual wouldn't be allowed to receive say both the senior property tax exemption and this proposed volunteer emergency services personnel exemption. REPRESENTATIVE FEIGE opined that that the legislation doesn't allow such as the language refers to "on the first $150,000 of the assessed value of the real property" for both exemptions. 9:17:33 AM REPRESENTATIVE SADDLER recalled at the last hearing that the Alaska Municipal League (AML) was not excited about HB 170. He expressed interest in AML's reaction to Version I. REPRESENTATIVE FEIGE pointed out that the change in Version I that makes the exemption one that the municipality would have to opt-in would place it at the will and discretion of the municipalities. 9:18:24 AM REPRESENTATIVE DICK related his understanding that an eligible volunteer would have to file an annual application for the proposed exemption. REPRESENTATIVE FEIGE clarified that the municipality would determine how often a volunteer seeking this proposed exemption would have to apply. REPRESENTATIVE DICK posed a scenario in which a volunteer dies in the line of duty or not, and asked if the widow/widower would have to apply for the proposed exemption every year or would the widow/widower be continuously eligible. REPRESENTATIVE FEIGE stated that the legislation doesn't distinguish between death in the line of duty or not. Whether the widow/widower would have to apply every year is left to the municipality to decide. 9:20:12 AM CHAIR MUNOZ announced that since there are additional questions regarding various aspects of this legislation, particularly in terms of the widow/widower provision and the desire to hear from AML, additional input is necessary. 9:20:56 AM REPRESENTATIVE AUSTERMAN lauded the idea proposed by the sponsor, but expressed concern with unfunded mandates. Although [Version I] proposes an opt-in situation, he said he remains nervous, particularly when one reviews the permanent fund and the exemptions for the military, mariners, etcetera. Representative Austerman questioned where one would stop with these unfunded mandates. Furthermore, firefighters aren't the only volunteers and thus it also becomes an issue in terms of where to draw the line. He said that were HB 170 to reach the floor, he suspected he would have to vote against it. 9:23:17 AM CHAIR MUNOZ announced that HB 170 needs more work and will be held over.