HB 156-ALLOWING CERTAIN LANDFILL FEE WAIVERS  3:34:22 PM CHAIR OLSON announced consideration of HB 156. REPRESENTATIVE BOB LYNN, Alaska State Legislature, sponsor of HB 156, said the legislation permits, but does not require, municipalities to waive disposal or "tipping" fees for waste materials from deteriorated properties that are under renovation. It's good public policy and doesn't cost the state money. This can make it economically feasible to renovate a deteriorated property to the betterment of the community. 3:36:12 PM SENATOR MENARD asked if this legislation includes minor renovations by a home owner. REPRESENTATIVE LYNN said the statute applies to commercial properties only. DIRK MOFFATT, Staff to Representative Lynn, added that there is a definition in the back of the members' packets and he believes the smallest is an eight unit property. SENATOR MENARD asked if this would apply to a residence that is in a commercially zoned area. REPRESENTATIVE LYNN asked Mr. Moffatt to read the definition. MR. MOFFATT read AS 29.45.050(o) through AS 29.45.050(p). 3:42:09 PM CHAIR OLSON asked what the answer is to Senator Menard's question. REPRESENTATIVE LYNN said his understanding is that a deteriorated property is commercial property that is not used for residential purposes other than properties with at least eight units. Within the last five years it has to have been determined by the municipality to be "deteriorated"; it must be not less than 15 years of age and have undergone substantial renovation, demolition, and removal; and is located in a deteriorated or deteriorating area with boundaries that have been determined by the municipality. CHAIR OLSON queried, "So the answer to her question is no?" REPRESENTATIVE LYNN agreed. CHAIR OLSON recognized that Senators Thomas and Kookesh had joined the meeting. 3:42:58 PM MARK MARLOW, Principal, Marlow Corporation, explained that the Fairbanks North Star Borough in 2005 passed a local ordinance to waive tipping fees to facilitate the renovation of the Polaris Tower in downtown Fairbanks. HB 156 stemmed from a concern that the ordinance could be challenged on a constitutional basis of equal treatment. The fix was to define deteriorated property within AS 29.35 - somewhat like AS 29.45 was amended to define deteriorated property - so that municipalities could implement property tax relief to facilitate redevelopment of deteriorated property. Deteriorated property was defined as a particular class of property so that it met the constitutional test. HB 156 aims to define deteriorated property within AS 29.35 and points back to AS 29.45 so that if a municipality chooses to extend this benefit to help facilitate redevelopment of a property that, through a very public process, has been defined as deteriorated, then it will meet the constitutional test. MR. MARLOW said his firm is involved in an effort to restore the Polaris Tower to usefulness and he would like the legislation to pass. 3:45:21 PM CHAIR OLSON asked if Fairbanks is the only municipality that is having a problem related to this issue. MR. MARLOW said he isn't aware of others. This would be a significant benefit because the Polaris Tower renovation project will produce a great deal of debris. It was a little different when the old MacKay building in downtown Anchorage was renovated because the building had already been stripped. As buildings and infrastructure age these things need to be addressed to mitigate blight. This would be a good tool for local municipalities, he said. REPRESENTATIVE LYNN highlighted a March 10 letter from the Anchorage Downtown Partnership supporting the bill. 3:47:17 PM CHAIR OLSON closed public testimony and asked the will of the committee. SENATOR KOOKESH moved to report HB 156 from committee with individual recommendations and attached fiscal note(s). There being no objection, HB 156 moved from the Senate Community and Regional Affairs Standing Committee.