Legislature(1999 - 2000)

03/24/2000 01:55 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HOUSE BILL NO. 418                                                                                                              
                                                                                                                                
"An Act relating to program receipts collected by the                                                                           
division of insurance and to program receipts collected                                                                         
by the Department of Community and Economic Development                                                                         
for occupational licenses; and providing for an                                                                                 
effective date."                                                                                                                
                                                                                                                                
Vice Chair Bunde MOVED to adopt work draft, 1-LS1500\I,                                                                         
Utermohle, 3/24/00 (copy on file.) There being NO                                                                               
OBJECTIONS, it was so ordered.                                                                                                  
                                                                                                                                
JANET SEITZ, STAFF, REPRESENTATIVE ROKEBERG spoke in support                                                                    
of the legislation on behalf of the sponsor. She explained                                                                      
that the legislation would add two new areas to the program                                                                     
receipts statute. A correction was made under the Division                                                                      
of Occupational Licensing to exclude business license                                                                           
receipts and Alaska Seafood Marketing Institute (ASMI)                                                                          
receipts were added. She observed that the sponsor supports                                                                     
the committee substitute, but is concerned that pioneer home                                                                    
receipts were excluded.                                                                                                         
                                                                                                                                
Co-Chair Therriault observed that individual licensing                                                                          
groups within the Division of Occupational Licensing would                                                                      
like to contribute funds that could be used for                                                                                 
participation in national training. He noted that ASMI                                                                          
receipts are collected specifically for ASMI marketing. He                                                                      
explained that Co-Chair Mulder expressed the desire to keep                                                                     
the legislation limited in scope.                                                                                               
                                                                                                                                
Co-Chair Therriault clarified that a previous proposed                                                                          
committee substitute was not offered because it would have                                                                      
swept in business licenses. Business licenses generate more                                                                     
than they consume for operation. The excess currently goes                                                                      
to the General Fund. There was no desire to take these funds                                                                    
off budget; therefore they were excluded from the                                                                               
legislation.                                                                                                                    
                                                                                                                                
JEFF, BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND                                                                    
ECONOMIC DEVELOPMENT spoke in support of the legislation. He                                                                    
expressed concern that the Division of Insurance was deleted                                                                    
from the legislation. He observed that the Division of                                                                          
Insurance generates fees in the same manner as the Division                                                                     
of Occupational Licensing. He made assurances to the                                                                            
industry that the legislation is not an attempt to raise                                                                        
insurance fees. Insurance fees currently pay for their                                                                          
services. He pointed out that the legislation does not take                                                                     
the fee structure away from legislative oversight. He                                                                           
maintained that any fears by industry were unfounded.                                                                           
                                                                                                                                
Mr. Bush referred to section (Y). He pointed out that the                                                                       
receipts that go to ASMI are tax receipts, which are                                                                            
collected by the Department of Revenue and appropriated to                                                                      
ASMI. He suggested that the term "receipts" may not be                                                                          
appropriate.                                                                                                                    
                                                                                                                                
Mr. Bush spoke in support of an immediate effective date. He                                                                    
noted that an immediate effective date could ease pressure                                                                      
on the supplemental appropriation bill.                                                                                         
                                                                                                                                
Co-Chair Therriault proposed that the bill be held to allow                                                                     
research regarding subsection (Y). He stated that he                                                                            
preferred that the legislation be matched to the new fiscal                                                                     
year. He observed that the title would not prevent the                                                                          
effective date from being changed later.                                                                                        
                                                                                                                                
Representative Grussendorf asked why pioneer home receipts                                                                      
were not included.                                                                                                              
                                                                                                                                
ALISON ELGEE, REVENUE COMMISSINER, DEPARTMENT OF                                                                                
ADMINISTRATION stated that the department supports the                                                                          
inclusion of pioneer home receipts and observed that                                                                            
legislation in the Senate would address pioneer home                                                                            
receipts. She spoke in support of recognizing resident                                                                          
revenues as specific to the pioneer home program.                                                                               
                                                                                                                                
Representative Grussendorf asked why pioneer home receipts                                                                      
and Division of Insurance receipts were excluded from HB
418. Co-Chair Mulder explained that the intent was to keep                                                                      
the legislation narrow in order to hurry its advancement. He                                                                    
stressed that there would be little objection to the two                                                                        
program receipts in the legislation. He observed that others                                                                    
could be added later.                                                                                                           
                                                                                                                                
HB 418 was HEARD and HELD in Committee for further                                                                              
deliberation.                                                                                                                   
HOUSE BILL NO. 418                                                                                                              
                                                                                                                                
"An Act relating to program receipts collected by the                                                                           
division of insurance and to program receipts collected                                                                         
by the Department of Community and Economic Development                                                                         
for occupational licenses; and providing for an                                                                                 
effective date."                                                                                                                
                                                                                                                                
Co-Chair Therriault observed that discussions with the                                                                          
department clarified that the taxes to the Alaska Seafood                                                                       
Marketing Institute (ASMI) come from two sources. The tax                                                                       
sources need to be identified.                                                                                                  
                                                                                                                                
JOE BALASH, STAFF, REPRESENTATIVE THERRIAULT provided                                                                           
information on HB 418. He explained that the legislative                                                                        
legal staff confirmed that the previous language would only                                                                     
apply to the minimal amount of materials and information                                                                        
brochures sold by ASMI. The taxes did need to be referenced.                                                                    
The legal counsel recommended adding the following language:                                                                    
                                                                                                                                
receipts from the seafood marketing assessment (AS                                                                              
16.51.120), the salmon marketing tax (AS 43.76.110)                                                                             
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT a conceptional amendment                                                                     
to replace the language on line 8, page 1 to specifically                                                                       
reference receipts from the seafood marketing assessment (AS                                                                    
16.51.120), the salmon marketing tax under (AS 43.76.110)                                                                       
and other receipts of the Alaska Seafood Marketing Institute                                                                    
(ASMI). There being NO OBJECTION, it was so ordered.                                                                            
                                                                                                                                
Co-Chair Mulder MOVED to report CSHB 418 (FIN) out of                                                                           
Committee with the accompanying fiscal notes. There being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB 418 (FIN) was REPORTED out of Committee with a "do                                                                         
pass" recommendation and with two fiscal impact notes: one                                                                      
by the Department of Community and Economic Development,                                                                        
Occupational Licensing, published date 3/1/00; and one by                                                                       
the Department of Community and Economic Development, Alaska                                                                    
Seafood Marketing Institute (ASMI).                                                                                             

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