HOUSE BILL NO. 86                                                       
                                                                               
       "An Act  relating  to the  payments  in lieu  of  taxes                 
  program for    cities  in  the   unorganized  borough;   and                 
  providing for an    effective date."                                         
                                                                               
  (Due  to  teleconference problems  the beginning  portion of                 
  tape #110 was not properly recorded.)                                        
                                                                               
  Senator Torgerson  voiced  his  objection to  HB  86.    Tom                 
  Wright, staff  to Representative  Ivan Ivan  was invited  to                 
  join  the  committee.    He    briefly explained  the  bill.                 
  Senator Adams indicated that the Legislature may not control                 
  these  funds.  Communities  pay a sales  tax and there  is a                 
  dumping fee.                                                                 
                                                                               
  Lamar Cotten,  Deputy Commissioner, Department  of Community                 
  and Regional Affairs was invited to  join the committee.  He                 
  explained the appropriate  code.  All cities  in unorganized                 
  boroughs are treated the same.                                               
                                                                               
  Co-chair  Sharp  at  this  point  appointed  a  subcommittee                 
  consisting  of Senator Pearce,  chair; Senator Torgerson and                 
  Senator  Adams.     He  requested   a  response  from   this                 
  subcommittee by next Friday.  HB 86 was held in committee.