Legislature(2007 - 2008)HOUSE FINANCE 519
05/05/2007 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB111 | |
| HB88 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HCR 8 | TELECONFERENCED | |
| += | HB 111 | TELECONFERENCED | |
| += | HB 88 | TELECONFERENCED | |
HOUSE BILL NO. 111
An Act decreasing the fee for a business license; and
providing for an effective date.
Vice Chair Stoltze MOVED to ADOPT work draft #25-GH1065\M,
Bannister, 5/4/07, as the version of the bill before the
Committee. There being NO OJBECTION, it was adopted.
9:11:38 AM
JOHN BITNEY, DIRECTOR, LEGISLATIVE OFFICE, OFFICE OF THE
GOVERNOR, commented that the bill was written to reduce the
business licenses fees. He noted the reduction to State
revenues. The Governor believes that such issues are
insignificant in relationship to the message sent to small
business throughout the State; there are other options for
revenue generating. Mr. Bitney urged that the Committee
pass the bill.
Representative Gara pointed out that a person is only
required to purchase a business license if they are
regularly engaged in business. He recommended that the bill
offer a provision that clarifies whether a person needs to
purchase that license. Language should be tailored in
statute.
9:15:20 AM
RICK URION, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING,
DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT, advised that
the Administration had introduced the legislation, changing
the cost of a business license from $100 dollars to $50
dollars a year. Additionally, it provides the Department
authority to issue a $300 dollar citation to the person
doing business without a license; in existing law, the fine
is $2,000 dollars and six months in jail and has never been
enforced.
Mr. Urion addressed the new fiscal notes, indicating the
reduced revenue to the State. Representative Hawker asked
how much the bill actually will cost the State. Mr. Urion
replied in excess of $2.9 million dollars a year.
Representative Hawker inquired if all notes were relevant.
Mr. Urion stated that the Department had not yet drafted
notes to the current version. Representative Hawker worried
about passing the bill without knowing the true costs.
Co-Chair Meyer pointed out that revenue from the fee would
be cut in half from last year. He added that new notes
would follow the bill.
9:19:57 AM
Co-Chair Chenault asked if sole proprietor-ship would remain
at $50 dollars.
9:20:38 AM
SUZANNE CUNNINGHAM, STAFF, REPRESENTATIVE MEYER, explained
that all licenses under the proposed legislation would be
$50 dollars; currently, sole proprietors over the age of 65
can apply for a 50-year license.
Representative Gara requested that the Department make a
determination regarding whether a person qualifies for an
exemption for those not regularly engaged in business.
Representative Kelly emphasized that the cost of the license
was being reduced to $50 dollars. He did not agree that the
Department should be required to make a determination.
Representative Nelson inquired the types of business
Representative Gara was referring to. Representative Gara
commented, it affects those who only offer the service maybe
one time a year. He recommended that the Department have a
definition in place of what "regularly engaged in business"
means. He thought that for an honest person, not regularly
engaged in business, such as a craft, the fee is "huge".
Mr. Urion countered, the Administration would not enforce a
business license fee against someone making a one-time small
craft. That is not the intent of the bill, rather, the
Division goes after "substantial businesses".
Representative Gara agreed that most would not be
investigated; however, there are people who want to know
they are not violating the law. Consequently, there should
be clarity in the regulation.
Representative Foster commented on vendor activity in Nome
during the Iditarod, which damages local economy.
Mr. Urion noted that the cost of a business license would be
a write off.
9:28:47 AM
Representative Gara MOVED to ADOPT Amendment #1, inserting
new language on Page 3, Line 17. Co-Chair Meyer OBJECTED.
Representative Gara explained that the amendment adds
language:
© "The Department shall adopt rules or regulations
permitting a person to ascertain from the department
whether they qualify for the exemption under (a) (6) of
this section. There shall be no charge by the
department for this determination."
In referencing the amendment, Representative Thomas asked if
seasonal fishermen & plow truck drivers would be affected.
Representative Kelly reiterated the fine had been reduced;
he spoke against the amendment.
9:31:28 AM
Mr. Urion understood that the amendment would require the
Department to establish guidelines. He thought that the
person referenced by Representative Thomas would have to get
a business license. Representative Gara said that is
precisely the concern; the answer to that question is
currently written into the Department's statute. The
amendment does not say that the Department needs guidelines.
Representative Gara requested that the Department provide a
determination if a person should ask for it. Mr. Urion
advised that he is not the person that would receive those
questions and that there are dedicated employees, employed
at a low range, who would be responsible for making such a
decision.
Representative Gara emphasized the concern, pointing out
that it is in statute and that Mr. Urion should know that.
The guidelines are not indicated and that the amendment only
provides for the determination of guidelines.
Representative Crawford noted he was a range 10 & was
capable of making such a determination.
9:33:24 AM
Co-Chair Chenault indicated frustration with people who do
not purchase a business license. He worried about liability
& tracking if something should happen with their product. A
business is responsible for their actions. He said he was a
no vote on the amendment.
9:35:55 AM
Representative Gara stressed that whether the person is
liable or not, has nothing to do with whether that person
has a business license. The amendment does not attempt to
change the law. He encouraged that the person being
addressed is the one that really does not own a business,
yet is required to pay the $50 dollar business license fee.
Representative Crawford noted that selling anything at a
"Saturday" market demands a business license. He believed
that the statutes are written to provide some leeway & hoped
that the Department would use "common sense". He indicated
support for the amendment.
Mr. Urion acknowledged that there are guidelines, which have
been established within the Division, encouraging the use of
good common sense for the investigators. He reiterated, the
Division goes after "big" business people.
Representative Joule questioned if the concern could be
accomplished through regulation. Mr. Urion said he intended
to do that. Co-Chair Meyer believed the issue could be
addressed without inclusion in actual bill.
Mr. Bitney reiterated that the intent of the bill was to
lower the fee, thus making licensing more affordable.
Currently, the statute indicates the exemption and hoped
that the Department does apply that exemption.
9:40:29 AM
Representative Gara requested that Mr. Urion determine
guidelines for the Division regarding business license
enforcement. He asked to receive those commitments in
writing.
Representative Gara WITHDREW Amendment #1.
Representative Foster MOVED to REPORT CS HB 111 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 111 (FIN) was reported out of Committee with a "do
pass" recommendation and with one new fiscal note by the
Office of the Governor and three new fiscal notes by the
Department of Commerce, Community & Economic Development.
9:42:14 AM
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