SB 240 - MUNICIPAL TAX CREDIT/HABITAT PROTECTION Co-chair Pearce directed that SB 240 be brought on for discussion. She explained that it would provide for an optional municipal tax credit for certain river habitat protection improvements. It pertains to the Kenai River and will allow local governments to provide a habitat protection credit that could offset a portion of property taxes if an improvement has been constructed that aids in fish habitat along the river. The Co-chair pointed to the Senate Resources Committee Substitute for the bill, accompanying zero fiscal notes, Dept. of Fish and Game position paper in support, Kenai Borough statement in support, a resolution from the Kenai River Special Management Area Advisory Board, and correspondence from the Alaska Sportfishing Association in support of the bill. Senator Rieger directed attention to page 1, line 5, of CSSB 240 (Res) and asked if Co-chair Pearce would object to addition of Unless prohibited by municipal charter, before language in subsection (a). Co-chair Pearce noted that the legislation is limited to local governments on the Kenai. She added that, to her knowledge, none of the local charters would prohibit the credit. Senator Rieger stressed that, as a general rule, the legislature should not pass state laws that override local charters. Co-chair Pearce said she had no objection to the amendment. Senator Rieger then MOVED for adoption of the new language. No objection having been raised, the language was ADOPTED for incorporation within a draft Senate Finance Committee Substitute for the bill. Co-chair Pearce called for additional testimony on the bill. None was forthcoming. Senator Jacko MOVED that CSSB 240 (Fin) pass from committee with individual recommendations. (At this point in the meeting the teleconference monitor advised of an individual in Soldotna who wished to testify.) Senator Jacko WITHDREW his motion for passage of CSSB 240 (Fin). THEO MATTHEWS, administrative assistant, United Cook Inlet Drift Association, testified via teleconference from Kenai. He said that the Association supports habitat protection in all state rivers. He expressed concern, however, that the proposed bill does not provide a tax credit for those "who do the best for habitat protection, and that is to not develop their land and stay off of it." The Kenai Borough recently formed a task force to discuss these issues. Many land owners are requesting consideration for doing the best thing and not developing their land. Those issues will be discussed on the Kenai at the local level. Mr. Matthews acknowledged that he did not know whether this issue would fit within the proposed legislation. In his closing remarks, Mr. Matthews applauded the effort to improve habitat on the Kenai. Co-chair Pearce referenced the "no development option" and explained that under present statutes, conservation easements are allowed to local municipalities. She then voiced her understanding that the task force would examine whether opportunity for the easements should be provided at the local level. For that reason, the option was not added to the current bill. Senator Jacko again MOVED for passage of CSSB 240 (Fin) and requested unanimous consent. No objection having been raised, CSSB 240 (Fin) was REPORTED OUT of committee with zero fiscal notes from the Dept. of Natural Resources and the Dept. of Fish and Game. All members present signed the committee report with a "do pass" recommendation. Senators Kerttula and Kelly were not in attendance and did not sign the report. Later in the meeting, GARY HINKLE testified in support of the bill via teleconference from Kenai. He noted that there would be no cost to the state. Granting of the credit is at the discretion of the borough and cities involved. Net gain to habitat through this effort will far exceed any risk of the bill being pro development.