HOUSE BILL NO. 272 "An Act relating to the tax assessment by a home rule or general law municipality of housing that qualifies for the low-income housing credit under the Internal Revenue Code; and providing for an effective date." Senator Leman MOVED that the Committee adopt work draft 1- LS1148\B, Chenoweth, 4/14/00, as the version of the bill before the Committee. Senator Adams OBJECTED for the purpose of discussion. He pointed out that the "grandfather clause" had been removed in the work draft. Co-Chair Torgerson commented that a community could still be "grandfathered", however, the local assembly would also be responsible to take action. The language would give local governments the authority to pass an ordinance authorizing the resolution. Senator Adams WITHDREW his OBJECTION to adopt the "B" version. Senator Leman referenced Page 2, Line 1, "the value of the property and the actual income derived from the property". He asked if that was the correct standard. JONATHAN LACK, Staff, Representative Rick Halford, stated that the question of income derived had not yet come into discussion. The uniform property standard adopted by the property assessors now indicates that the income approach does not address what has been received. He clarified that the income approach is what could be received. Senator Leman explained given that understanding he no longer questioned that section. He inquired if this was a current accounting standard. Mr. Lack stated that it is and that the uniform assessors group uses it. He interjected that the assessor in Anchorage does not obey the established standard. Senator Leman countered that if that assessor does not obey the standard, what assurance does the State have that he will obey the proposed law. Mr. Lack replied that there are working drafts addressing the assessor establishing the standard. The work draft before the Committee, has the standard adopted by the local governing body. Senator Donley reinforced that point and the possibility of leaving it empty. The language references the maximum of what could be derived. Senator Leman recommended language indicating it could be from income derived from property at full occupancy. Senator Donley MOVED the changes recommended by Senator Leman, Page 2, Line 2, following "property" inserting "at full occupancy" as Amendment #1. Mr. Lack acknowledged that there are some questions that Senator Halford has about the proposed committee substitute. He was not confident to answer the question. There being NO OBJECTION, Amendment #1 was adopted. Senator Green asked if the amendment would apply on Line 14. She MOVED that language be added to Line 14 following "property". There being NO OBJECTION, the change was made. Senator Leman MOVED a text change to Page 2, Line 17, deleting "relating" and inserting "related". There being NO OBJECTION, it was adopted. Senator Leman MOVED to report SCS HB 272 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. Senator Phillips OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Donley, Leman, Adams, Wilken, Green, Parnell, Torgerson OPPOSED: Phillips Senator P. Kelly was not present for the vote. The MOTION PASSED (7-1). SCS HB 272 (FIN) was reported out of Committee with "individual recommendations" and with a fiscal note by the House C&RA Committee.