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.