03/14/2002 08:07 AM House CRA

HB 355-MOBILE TELECOMMUNICATIONS TAX                                                                                          
                                                                                                                              
CO-CHAIR MEYER announced  that the first order  of business would                                                               
be  HOUSE BILL  NO.  355, "An  Act relating  to  the taxation  of                                                               
mobile   telecommunications  services   by  municipalities;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 0222                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI moved  to adopt  CSHB 355,  Version 22-                                                               
LS1208\F, Kurtz,  3/6/02, as the  working document.   There being                                                               
no objection, Version F was before the committee.                                                                               
                                                                                                                                
AMY  ERICKSON, Staff  to Representative  Murkowski, Alaska  State                                                               
Legislature, testified on behalf of  the sponsor, the House Labor                                                               
& Commerce Standing  Committee.  She explained that  Version F is                                                               
much simpler.  Per the  Department of Revenue's request, [Version                                                               
F]   cites  the   federal  act   by   reference.     Furthermore,                                                               
Representative  Kerttula suggested  the deletion  of the  section                                                               
regarding the requirement for the  customer to notify the company                                                               
in  writing of  a  dispute over  a  tax, charge,  or  fee.   That                                                               
section has  been deleted.  Ms.  Erickson recalled Representative                                                               
Guess'  discussion regarding  the primary  place of  use being  a                                                               
street address.   Ms. Erickson said, "I think  that we understand                                                               
now  that the  federal  act defines  place of  primary  use in  a                                                               
manner  that  is sufficient  to  you  [Representative Guess]  and                                                               
Representative Murkowski."                                                                                                      
                                                                                                                                
MS.  ERICKSON informed  the committee  of the  amendment [in  the                                                               
committee packet]  labeled 22-LS1208\F.1,  Kurtz, 3/13/02.   This                                                               
amendment would address  those people in Alaska who  don't have a                                                               
street address, which is common  in Alaska.  This amendment would                                                               
allow  those without  a  street address  to  establish a  primary                                                               
place of use without having their street address listed.                                                                        
                                                                                                                                
Number 0381                                                                                                                     
                                                                                                                                
REPRESENTATIVE   MURKOWSKI   turned   to  the   prior   hearing's                                                               
discussion  regarding  the  fiscal  note   for  HB  355.    As  a                                                               
consequence   of  the   changes   incorporated   in  Version   F,                                                               
Representative  Murkowski  understood   that  the  Department  of                                                               
Revenue's  fiscal note  is now  zero.   Representative  Murkowski                                                               
highlighted that all  of the concerns voiced at  the last hearing                                                               
have been  addressed and thus she  said she feels that  Version F                                                               
follows the intent of the federal act and will work in Alaska.                                                                  
                                                                                                                                
CO-CHAIR MEYER inquired  as to whether this  legislation could be                                                               
passed out with a fiscal note pending.                                                                                          
                                                                                                                                
MS. ERICKSON pointed  out that the original fiscal  note was zero                                                               
[but the analysis had raised  some concerns].  Therefore, the new                                                               
fiscal note is "more civilized."                                                                                                
                                                                                                                                
CHUCK HARLAMERT,  Juneau Section Chief, Tax  Division, Department                                                               
of  Revenue, announced  that all  of the  [department's] concerns                                                               
that were  raised at the last  hearing have been addressed.   "It                                                               
looks like a clean bill from here," he remarked.                                                                                
                                                                                                                                
Number 0598                                                                                                                     
                                                                                                                                
REPRESENTATIVE   MURKOWSKI  moved   that   the  committee   adopt                                                               
Amendment F.1, which reads as follows:                                                                                          
                                                                                                                                
     Page 3, following line 12:                                                                                                 
          Insert a new subsection to read:                                                                                      
               "(d) For the purposes of this section, if a                                                                      
     customer  does  not have  a  street  address, the  home                                                                    
     service provider  may accept  from the customer  as the                                                                    
     customer's place of primary use  an address that is not                                                                    
     a street  address if  the address  gives effect  to the                                                                    
     intent    of   4    U.S.C.    116    -   126    (Mobile                                                                    
     Telecommunications Sourcing Act)."                                                                                         
                                                                                                                                
There being no objection, Amendment F.1 was adopted.                                                                            
                                                                                                                                
Number 0690                                                                                                                     
                                                                                                                                
DAN   YOUMANS,  Director,   External   Affairs,  AT&T   Wireless,                                                               
testified  via  teleconference.    Mr. Youmans  said  that  [AT&T                                                               
Wireless] supports  all of the  proposed changes  [encompassed in                                                               
Version F]  as well as Amendment  F.1.  "I think  we have arrived                                                               
at  a very  good  piece of  legislation now,  and  we're in  full                                                               
support of it," he said.                                                                                                        
                                                                                                                                
Number 0750                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HALCRO  moved to  report  CSHB  355 [Version  22-                                                               
LS1208\F,  Kurtz,  3/6/02]  as  amended  out  of  committee  with                                                               
individual  recommendations  and  the  accompanying  zero  fiscal                                                               
note.  There being no  objection, CSHB 355(CRA) was reported from                                                               
the House Community and Regional Affairs Standing Committee.                                                                    
                                                                                                                                
The committee took a brief at-ease from 8:19 a.m. to 8:21 a.m.