HB 25-RIVER HABITAT PROTECTION TAX CREDIT CO-CHAIR MASEK announced that the next order of business before the committee would be HOUSE BILL NO. 25, "An Act relating to a municipal river habitat protection tax credit." Number 1303 REPRESENTATIVE JOHN DAVIES, Alaska State Legislature, sponsor of HB 25, informed the committee that HB 25 is a simple bill. He explained that currently there is a provision in statute that offers a tax credit to property owners along the Kenai River. This legislation, HB 25, merely extends that provision to municipalities along other rivers. He emphasized that this is an opportunity, not a mandate. He mentioned that HB 25 was brought forward due to requests from his community. CO-CHAIR MASEK asked if Representative Davies had spoken with local governments regarding this issue. She asked how local governments view this in the environment of decreasing municipal revenue-sharing. She also asked what type of initiative the municipalities would be interested in. REPRESENTATIVE DAVIES answered that he was not aware of any initiative, although there has been some discussion since introduction of the bill. He informed the committee that there is a lot of interest in his area with regard to the development of the Chena River and the Tanana River. There is some interest to provide the opportunity for the private sector to perform some work and receive credit for that work. He feels that this issue is relatively small. Furthermore, this is up to the municipalities. CO-CHAIR MASEK voiced her understanding that this program on the Kenai River has been successful. REPRESENTATIVE DAVIES agreed and noted that he had been in touch with some of the Kenai Assembly members and other folks, all of whom were in favor of [the opportunity]. Therefore, he expressed the need to open that opportunity to the rest of the state. Number 1000 REPRESENTATIVE HARRIS asked what effect the municipal river habitat protection tax credit has had on the Kenai Peninsula Borough. Would the tax credit provide an incentive for other areas such as Fairbanks? REPRESENTATIVE DAVIES noted that some people in his area have reviewed this and have expressed interest. Therefore, he had introduced HB 25. After talking to some elected officials and some [Department of] Fish and Game folks, he had the impression that there are a few projects which, without this habitat protection tax credit, would not have proceeded. This has been a good marriage between private enterprise and the municipality. Number 0906 REPRESENTATIVE COWDERY mentioned that a few years ago he had property on the Kenai, which had erosion problems. The problems that he encountered were with the Department of Environmental Conservation, the state government, and the federal government, not the local government. He asked: Is that still the case? REPRESENTATIVE DAVIES reiterated that HB 25 is a simple bill. It is not primarily addressing erosion control per se. The bill is mainly directed at the habitat protection issue and the prevention of erosion caused by overuse from people. The active erosion control that Representative Cowdery may be involved in probably would not fall under HB 25. REPRESENTATIVE BARNES commented that she did not believe that the tax credit program had been a factor in stopping the problems on the Kenai River. She believes that the Kenai River Classic raises much money and awareness, which is used to address erosion problems and enhance habitat. REPRESENTATIVE DAVIES agreed that the Kenai River Classic is a major piece. However, HB 25 is a small way in which to further encourage [habitat protection]. REPRESENTATIVE WHITAKER noted that he, too, represents the Fairbanks community. He said everyone should review the opportunity to develop a river. He agreed that HB 25 is a small piece of the puzzle. He said he is in support of HB 25, which he hopes the chair will consider moving [out of committee]. Number 0455 REPRESENTATIVE BARNES made a motion to move HB 25 out of committee with individual recommendations and the accompanying zero fiscal note. There being no objection, HB 25 was moved from the House Resources Standing Committee. CO-CHAIR MASEK noted that there were witnesses on teleconference. She conveyed her understanding that their testimony would have been positive. CO-CHAIR HUDSON recommended that those witnesses fax their testimony so that it could be forwarded along with the bill to the next committee of referral. [HB 25 was moved from committee.]