SENATOR MILLER announced  SB 240  (MUNICIPAL TAX CREDIT/HABITAT               
 PROTECTION) to be up for consideration.                                       
                                                                               
 SENATOR PEARCE, Sponsor, said there is 80 - 90 acres along the                
 Kenai River that provide the habitat for the salmon fishery.  She             
 hoped to encourage people who owned private land along the Kenai to           
 undertake stream rehabilitation with property tax credit                      
 incentives.                                                                   
                                                                               
 SENATOR ADAMS noted that this could just be special interest                  
 legislation directed only at the Kenai River and asked if the Chena           
 River and other areas could be included.                                      
                                                                               
 SENATOR PEARCE said Tam Cook believed the bill to be                          
 constitutional.                                                               
                                                                               
 SENATOR LEMAN asked if any other municipality had expressed                   
 interest in this type of credit.  SENATOR PEARCE answered not to              
 her.                                                                          
                                                                               
 SENATOR ZHAROFF said he has a policy of staying out of other                  
 district's business and he thought it seemed unusual to have a                
 piece of legislation that affects one area of the state.                      
                                                                               
 Number 472                                                                    
                                                                               
 LEO OBERTS, Kenai, said keeping the river in its natural test is              
 the highest and best use for the river when setting the value.                
                                                                               
 He said this refers to the lower tidal area which is completely               
 different from other areas of the river.  He questioned using the             
 "ordinary high water" language.  SENATOR PEARCE said this language            
 was provided by the Borough attorney.                                         
                                                                               
 SENATOR LITTLE commented that this bill currently involves not only           
 the Kenai River, but all of the tributaries.  She was concerned               
 that it was very far reaching.                                                
                                                                               
 MR. OBERTS pointed out on page 17 that he didn't know what an                 
 "untitled river" meant.                                                       
                                                                               
 DON GILMAN supported Senator Pearce's comments.  He said the                  
 municipalities need this legislation to help deal with problems               
 along the river.                                                              
                                                                               
 SENATOR ZHAROFF commented on the definition of "ordinary high water           
 line."  He asked what kinds of activities would allow for the tax             
 credit to be used.  MR. GILMAN said they are for improvements along           
 the river.  Right now nothing is required above high water.                   
                                                                               
  TAPE 94-5, SIDE B                                                            
 Number 580                                                                    
                                                                               
  SENATOR ZHAROFF asked if the activity would take place within or             
 beyond 150 feet.  MR. GILMAN said it was within 150 feet.                     
                                                                               
 Number 573                                                                    
                                                                               
 JIM RICHARDSON, property owner on the Kenai River, supported SB               
 240.  He hoped that tax incentives would be allowed for people who            
 leave the land in its natural state as well as for those who build            
 some beneficial project.                                                      
                                                                               
 SENATOR MILLER thanked everyone for their testimony and adjourned             
 the meeting at 4:32 p.m.