HB 156-ALLOWING CERTAIN LANDFILL FEE WAIVERS  CHAIR MENARD announced the consideration of HB 156. 9:39:15 AM REPRESENTATIVE BOB LYNN, Alaska State Legislature, Sponsor, said HB 156 amends Alaska statute to permit -- not require - a municipality to waive the tipping fee at landfills for materials from renovating deteriorated properties. It is good public policy and won't cost the state a dime. It will make it more economically feasible to renovate dilapidated properties to the benefit of communities. MARK MARLOW, Contractor/Developer, Anchorage, said the genesis of HB 156 was a local ordinance in the Fairbanks North Star Borough to assist in a renovation of a deteriorated downtown property. The local assembly passed an ordinance for a tipping fee waiver, but it may have been challengeable. The solution was "to define deteriorated property in AS 29.35 as it's defined in AS 29.45 to create a class of property that is eligible to receive these waivers." Municipalities aren't obligated to extend this benefit but will be able to with this bill. 9:43:37 AM SHAWN EVANS, Realtor, Alaska Commercial Property, Fairbanks, urged the passage of HB 156. It makes projects like this a little more feasible. The Polaris Hotel has been a blight on the city of Fairbanks; it is an eyesore and has vagrants. The bill will help generate a little more life into downtown Fairbanks. It will not cost the state anything. CHAIR MENARD asked if the municipality would lose revenue. REPRESENTATIVE LYNN said obviously they would lose the tipping fee, but they will be renovating property so he assumes, by adding to the tax roll, it will be positive in the end. CHAIR MENARD asked if a homeowner can get a waiver. 9:46:08 AM REPRESENTATIVE LYNN said the bill precludes homeowners; it is limited to deteriorated commercial property. CHAIR MENARD noted that in Canada property taxes are reduced when someone improves their property. It is frustrating that Alaska increases the assessment when improvements are made. REPRESENTATIVE LYNN said the bill includes commercial property and residential buildings with at least eight units, and it must meet one of the following requirements: within the last five years it has been subject to environmental remediation; the property is vacated, condemned, or demolished; the structure is not less than 15 years old; or is located in a deteriorating area as determined by the municipality. CHAIR MENARD said Senator Paskvan provided her with the statute that has a clear definition of deteriorated property. SENATOR FRENCH said he supports the bill, but the definition is somewhat remarkable. "It basically means all commercial property, no matter what its state of construction. It could have been built yesterday." It refers to "real property that is commercial property not used for residential purposes." SENATOR PASKVAN said the language goes on to list certain requirements, [which Representative Lynn just listed.] 9:49:47 AM SENATOR FRENCH said he thinks it refers to all commercial property. Then he said he could read it another way. "I'm tending now to see it Senator Paskvan's way." SENATOR PASKVAN said it defines an eight-plex (or more) as commercial. Within that category of commercial property the building needs to meet those requirements. CHAIR MENARD said she appreciates that a building has to be at least five years old. SENATOR PASKVAN said it refers to having been subject to an order in the last five years - meaning that it is condemned, demolished, or vacated. It can't be less than 15 years old. 9:51:38 AM SENATOR FRENCH moved to report HB 156 from committee with individual recommendations and attached fiscal note(s). There being no objection, HB 156 moved out of committee.