Legislature(2011 - 2012)HOUSE FINANCE 519

04/13/2012 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 6:45 p.m. Today --
+ SCR 24 COMMISSION ON 100TH ANNIV. OF LEGISLATURE TELECONFERENCED
Moved Out of Committee
+ SB 91 SPORT FISHING GUIDING SERVICES TELECONFERENCED
Moved HCS CSSB 91(FIN) Out of Committee
+ SB 182 PUPIL TRANSPORTATION FUNDING TELECONFERENCED
Scheduled But Not Heard
+ SB 83 TEACHER BOARD CERTIFICATION INCENTIVES TELECONFERENCED
Scheduled But Not Heard
+= SB 23 FILM PRODUCTION TAX CREDIT/AUDITS TELECONFERENCED
Moved HCS CSSB 23(FIN) Out of Committee
+ SB 25 AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE TELECONFERENCED
<Pending Referral>
+= SB 119 ATHLETIC TRAINERS TELECONFERENCED
<Pending Referral>
+ SB 210 CRIMES AGAINST CHILDREN/ SUPPORT/CINA TELECONFERENCED
Moved HCS CSSB 210(JUD) Out of Committee
+ SB 160 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 19 PASSENGER VEHICLE RENTAL TAX TELECONFERENCED
Moved HCS CSSB 19(FIN) Out of Committee
CS FOR SENATE BILL NO. 23(FIN)                                                                                                
                                                                                                                                
     "An Act  relating to  transferable film  production tax                                                                    
     credits  and film  production tax  credit certificates;                                                                    
     requiring the  legislative audit division to  audit the                                                                    
     Alaska   film   production   incentive   program;   and                                                                    
     providing  for  an  effective   date  by  amending  the                                                                    
     effective dates of secs. 3 and 4, ch. 63, SLA 2008."                                                                       
                                                                                                                                
4:43:28 PM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute  for   CSSB  19(FIN),  Work   Draft  27-LS0252\XX                                                                    
(Bullock, 4/13/12).                                                                                                             
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
Representative Costello highlighted the  changes in the work                                                                    
draft. The work draft  incentivizes the Alaska Hire program.                                                                    
The  program  was  separated into  two  main  sections.  One                                                                    
section  referred to  those in  the film  industry who  were                                                                    
considered  "above  the   line",  which  include  producers,                                                                    
directors,  writers,  and  editors; and  the  other  section                                                                    
referred to workers considered "below  the line." The "below                                                                    
the line"  workers referred  to electricians,  caterers, and                                                                    
much  of the  behind the  scenes workers  on film  sets. She                                                                    
stated that the "below the  line" section sustained the base                                                                    
tax rate  at 30  percent overall,  extended the  program for                                                                    
ten years,  and continued the  funding at the  current level                                                                    
at $200 million.  The Alaska Hire bonus was  doubled from 10                                                                    
percent  to  20  percent.  The   House  Labor  and  Commerce                                                                    
incentive  for rural  Alaskans would  be set  at 6  percent,                                                                    
which was  higher than  the current  program. The  2 percent                                                                    
incentive remained the same for  films that were produced in                                                                    
the off-season.                                                                                                                 
                                                                                                                                
Co-Chair Thomas  clarified that the 6  percent incentive was                                                                    
"additional" to the current incentive.                                                                                          
                                                                                                                                
Representative Costello  stated that the work  draft removed                                                                    
the  44  percent cap  on  the  credits. The  first  scripted                                                                    
television   show   to   produce  16   episodes   would   be                                                                    
incentivized, because episodic  television brought more jobs                                                                    
over the  long term.  The "above the  line" credit  had been                                                                    
tied  to  Alaska  Hire,  and  required  spending  on  Alaska                                                                    
businesses. The  base rate for  the "above the  line" credit                                                                    
was 5  percent, so companies  could earn a higher  credit by                                                                    
hiring  Alaskans and  patronizing  Alaska businesses.  Fifty                                                                    
percent  of  the amount  that  is  spent  on the  wages  and                                                                    
benefits to Alaskans and Alaska  business, would be credited                                                                    
in the "above the line" section                                                                                                 
                                                                                                                                
4:48:45 PM                                                                                                                    
                                                                                                                                
Representative  Costello stressed  that she  wanted Alaskans                                                                    
involved in the  film productions that were  produced in the                                                                    
state. The  bill aimed  to increase  the credibility  of the                                                                    
review process by creating the  Alaska Film Incentive Review                                                                    
Commission, housed  in DOR. Four commissioners  would sit on                                                                    
the commission,  including the commissioners from  DOR, DNR,                                                                    
DOL, and DCCED. A majority  of the members of the commission                                                                    
must approve  the script and  summary of  the pre-qualifying                                                                    
process.                                                                                                                        
                                                                                                                                
Co-Chair Stoltze  wondered if  the commissioners  from those                                                                    
departments  were the  actual  commissioners, or  designees.                                                                    
Representative  Costello  responded that  the  commissioners                                                                    
would be the actual commissioners from those departments.                                                                       
                                                                                                                                
Representative  Costello  stated   that  the  administrative                                                                    
function of  the program was put  into DOR, because it  is a                                                                    
tax program. The  promotion portion of the  program would be                                                                    
kept in  DCCED, which is  the department that  was marketing                                                                    
Alaska's  development.  A  75 cents  on-the-dollar  buy-back                                                                    
option  was  included in  the  work  draft to  provide  some                                                                    
certainty for some smaller productions  that may not be able                                                                    
to find a corporate tax payer  who could buy the credit. The                                                                    
credit was  adjusted to remove competition  with the private                                                                    
sector,  but  also  provide  some  stability.  In  addition,                                                                    
people  were no  longer allowed  to broker  the credit.  She                                                                    
looked at page  13, lines 9 through 11,  "The commission may                                                                    
not approve  an application for  a film production  that the                                                                    
commission  finds  is  contrary   to  the  natural  resource                                                                    
development policy of the state."                                                                                               
                                                                                                                                
4:51:59 PM                                                                                                                    
                                                                                                                                
Representative Doogan  asked for more  information regarding                                                                    
page  13,  lines  9   through  11.  Representative  Costello                                                                    
explained that  currently the program  required a  review of                                                                    
the  script to  ensure that  there was  nothing in  conflict                                                                    
with  Alaska's constitution.  That  portion  of the  program                                                                    
remained the same, but language  was changed from "shall" to                                                                    
"will." By  elevating the review board  to the commissioner-                                                                    
level,  it  added  some  additional  accountability  in  the                                                                    
review of the scripts.                                                                                                          
                                                                                                                                
Representative  Doogan asked  for an  explanation about  why                                                                    
the script could not be  against the natural resource policy                                                                    
of  the  State.  Representative  Costello  replied  that  an                                                                    
example  would  be  that  the  film  could  not  include  an                                                                    
overview  of fracking  and its  damage  to the  environment,                                                                    
when the state was  possibly considering fracking technology                                                                    
in the state.                                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  furthered  that   it  would  be  anything                                                                    
produced by Michael Moore.                                                                                                      
                                                                                                                                
Representative Doogan  wondered if this would  be considered                                                                    
censorship.                                                                                                                     
                                                                                                                                
4:55:15 PM                                                                                                                    
                                                                                                                                
Representative Costello replied that  the only time that the                                                                    
issue  of   censorship  was   brought  to   the  committee's                                                                    
attention, was in  relation to people who  testify in public                                                                    
hearings.  She  stated that  there  was  nothing that  could                                                                    
prevent freedom  of speech. However, in  terms of "censoring                                                                    
scripts",  the  State  had  an  interest  in  reviewing  the                                                                    
scripts  for the  credit. There  were several  items in  the                                                                    
bill that the commission  would be considering, and happened                                                                    
to  include Alaska's  natural resources.  Ninety percent  of                                                                    
Alaska's state  government was  funded from  oil production.                                                                    
The  State had  an  interest in  protecting  its ability  to                                                                    
develop resources responsibly,  without encouraging a public                                                                    
relations  campaign  that  could   be  detrimental  to  that                                                                    
effort.                                                                                                                         
                                                                                                                                
Representative  Doogan  wondered  what  would  happen  if  a                                                                    
person provided a  script to the commission,  and the script                                                                    
was rejected  because it did  not "toe the party  line", and                                                                    
therefore the  film company sued  the State. He  wondered if                                                                    
this would  be defensible in court.  Representative Costello                                                                    
deferred to Co-Chair Stoltze.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze replied  that he  did not  believe it  was                                                                    
considered "free speech" if the State was paying for it.                                                                        
                                                                                                                                
Representative  Doogan   stressed  that  he   was  concerned                                                                    
whether  or not  this change  was "protected  legal ground."                                                                    
Co-Chair Stoltze  replied that  he only  wanted to  pass the                                                                    
bill if it was considered "protected legal ground."                                                                             
                                                                                                                                
Representative Gara believed  the legislation was important,                                                                    
and  shared  the  concerns   of  Representative  Doogan.  He                                                                    
referred  to  a  movie  entitled,  "Salmonberries."  Someone                                                                    
could have made  the case that the movie  made Kotzebue look                                                                    
bad, or  someone could say  that the movie  "opened peoples'                                                                    
eyes" to  a different  part of the  world. He  was concerned                                                                    
about allowing  a State bureaucrat  to determine  whether or                                                                    
not a movie was in the  best interest of the state. He added                                                                    
that  censorship  was  also an  issue  in  this  discussion,                                                                    
because he felt that the commission would be too partisan.                                                                      
                                                                                                                                
4:59:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:59:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Doogan remarked that he  did not want to have                                                                    
a political debate.                                                                                                             
                                                                                                                                
4:59:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
4:59:59 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
MATT MOSER,  STAFF, SENATOR JOHNNY ELLIS,  stressed that the                                                                    
purpose of  the bill  was economic development.  He remarked                                                                    
that there  was a provision in  the bill that did  not allow                                                                    
pornography.                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  remarked that  Senator Ellis  inserted the                                                                    
provision on pornography, and Senator  Ellis did not believe                                                                    
that  the  provision  on   pornography  was  not  considered                                                                    
"censorship." Mr. Moser agreed.                                                                                                 
                                                                                                                                
Representative  Neuman looked  at page  4; lines  16 through                                                                    
19, regarding the  total number of tax  credits in aggregate                                                                    
may not exceed  $100 million for a  qualified production. He                                                                    
wondered  if that  was  $100 for  only  one production.  Mr.                                                                    
Moser replied  that the intention  was that there  were $100                                                                    
million in  credits available  for the  first five  years of                                                                    
the program, and  $200 million in credits in  the second ten                                                                    
years of the program.                                                                                                           
                                                                                                                                
Representative Neuman  wondered if the $100  million was the                                                                    
total amount  of credits the  State would provide, or  if it                                                                    
was for  one individual  production. Mr. Moser  replied that                                                                    
he had not had a chance to  look at the draft, but it should                                                                    
say  $200  million  for  "productions"  qualified  under  AS                                                                    
44.25.120.                                                                                                                      
                                                                                                                                
Representative  Neuman surmised  that  it  was a  cumulative                                                                    
number. Mr. Moser agreed.                                                                                                       
                                                                                                                                
Representative Gara  understood that the side  effect of the                                                                    
"best interest  of the state"  issue would be a  side effect                                                                    
of attracting tourism in the state. Mr. Moser agreed.                                                                           
                                                                                                                                
Representative Gara commented that there  did not have to be                                                                    
an agreement for  every provision of the  bill, and accepted                                                                    
Mr. Moser's response.                                                                                                           
                                                                                                                                
Co-Chair Stoltze would hold the  bill to get an opinion from                                                                    
Department of Law on the censorship issue.                                                                                      
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
5:04:50 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
6:45:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATOR  JOHNNY   ELLIS,  SPONSOR,  addressed   most  recent                                                                    
concern with language in the  bill. The committee substitute                                                                    
elevates   the  script   review  of   television  and   film                                                                    
production  scripts  to  the   commissioner  level,  and  he                                                                    
supported  that   change.  He   stressed  that   the  Alaska                                                                    
Constitution  requires the  development of  Alaska resources                                                                    
for  the maximum  benefit of  the people.  So, if  there was                                                                    
ever a film  or television project that  was antithetical to                                                                    
the Alaska  Constitution and its purpose,  the project could                                                                    
be appropriately prohibited.  The Parnell administration and                                                                    
Alaskans should turn down movies  or documentaries that were                                                                    
not in the best interest of the people.                                                                                         
                                                                                                                                
Co-Chair Stoltze thanked Senator Ellis.                                                                                         
                                                                                                                                
Representative Neuman MOVED to ADOPT Amendment 1:                                                                               
                                                                                                                                
     On page 4 line 16                                                                                                          
     Delete "a production"                                                                                                      
     Insert "productions"                                                                                                       
                                                                                                                                
     On page 4 line 18                                                                                                          
     Delete "a production"                                                                                                      
     Insert "productions"                                                                                                       
                                                                                                                                
Representative   Neuman   explained   that   the   amendment                                                                    
represented the  money as  a cumulative  amount and  not per                                                                    
production.                                                                                                                     
                                                                                                                                
Senator Ellis approved the amendment.                                                                                           
                                                                                                                                
6:52:19 PM                                                                                                                    
                                                                                                                                
DAN    BRANCH,    SENIOR   ASSISTANT    ATTORNEY    GENERAL,                                                                    
COMMERCIAL/FAIR   BUSINESS  SECTION,   DEPARTMENT  OF   LAW,                                                                    
introduced himself.                                                                                                             
                                                                                                                                
Representative Doogan asked  the way the bill  is drafted in                                                                    
a way that certain people could  make a decision not to fund                                                                    
a production and  wanted to know whether that  is legal. Mr.                                                                    
Branch replied  that the language  was legal. The  reason is                                                                    
because the  bill does not  restrict speech but the  way the                                                                    
state decides to spend its money.                                                                                               
                                                                                                                                
Representative  Neuman MOVED  to  ADOPT  Amendment 1.  There                                                                    
being NO OBJECTION it was so ordered.                                                                                           
                                                                                                                                
6:55:18 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough asked  for clarification pertaining to                                                                    
the fiscal notes attached to  the bill. She pointed out that                                                                    
the  fiscal notes  reflected and  addition of  $100 million;                                                                    
she understood that the intention was to add $200 million.                                                                      
                                                                                                                                
Representative  Costello   replied  that   page  2   of  the                                                                    
Department  of  Revenue  fiscal   note,  under  the  section                                                                    
"revenues," declared that the  bill would increase the total                                                                    
tax credit from $100 million to  $200 million, and was not a                                                                    
correct  reflection  of the  bill.  She  explained that  the                                                                    
legislation  intended  to  increase  the  credit  from  $100                                                                    
million  to $300  million because  of the  addition of  $200                                                                    
million  over the  next ten  years. She  concluded that  the                                                                    
fiscal  note  would  need  to  be  changed  to  reflect  the                                                                    
intended fiscal impact of the bill.                                                                                             
                                                                                                                                
Vice-chair  Fairclough  interjected   that  the  legislation                                                                    
would  affect  the DOR's  taxation  division.  She spoke  to                                                                    
fiscal  note #3,  dated  4/13/2012,  5:45p.m. She  purported                                                                    
that  the projected  spending from  FY14  to FY18  increased                                                                    
funding to  support 4 positions: $460,000  in FY14; $448,400                                                                    
in  FY15 through  FY18.  She noted  that  the bill  language                                                                    
referenced in  the analysis should  be changed to  reflect a                                                                    
$200   million   tax   credit   between   2013   and   2023.                                                                    
Additionally, the  total accumulation  should be  changed to                                                                    
$300 million. She  pointed out that the  revenues section of                                                                    
the analysis should  be changed to reflect  increases in the                                                                    
total tax  credits from  $100 million  to $300  million. She                                                                    
explained that it would allow  for approximately $20 million                                                                    
in  tax  credits,  per  year, over  three  separate  5  year                                                                    
periods. She  relayed that under  expenditures it  should be                                                                    
noted that there were 2  positions that DOR was proposing to                                                                    
be transferred in, and 2 that were additions.                                                                                   
                                                                                                                                
Vice-chair Fairclough  discussed the NEW fiscal  note, which                                                                    
affected the Department of  Commerce, Community and Economic                                                                    
Development  (DCCED). She  shared  that  the department  was                                                                    
proposed to spend  between FY13 and FY 18;  $281.200, with 2                                                                    
full-time positions.                                                                                                            
                                                                                                                                
Vice-chair  Fairclough  stated  that the  NEW  fiscal  note,                                                                    
which  was  allocated  to the  Legislative  Audit  Division,                                                                    
reflected zero fiscal impact.                                                                                                   
                                                                                                                                
Co-Chair Stoltze  wondered if DOR  had been  assisting DCCED                                                                    
with tax auditing.                                                                                                              
                                                                                                                                
CURTIS THAYER, DEPUTY  COMMISSIONER, DEPARTMENT OF COMMERCE,                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT, replied  that DOR  was                                                                    
currently assisting  with the  tax certification  portion of                                                                    
the program.                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  requested further explanation  of the                                                                    
two  additional  auditing  positions discussed  on  the  DOR                                                                    
fiscal note under expenditures.                                                                                                 
                                                                                                                                
Mr. Thayer  responded that the department  currently had two                                                                    
people  helping to  manage the  program that  the department                                                                    
wished  to retain.  The fiscal  note proposed  that the  two                                                                    
positions  remain within  DCCED because  the department  was                                                                    
responsible for the  promotion, follow-up, coordination, and                                                                    
the marketing of the film program.                                                                                              
                                                                                                                                
Co-Chair Stoltze maintained confusion  as to where the extra                                                                    
work was  being generated  that required the  two additional                                                                    
positions.                                                                                                                      
                                                                                                                                
Mr. Thayer deferred the question to DOR.                                                                                        
                                                                                                                                
Co-Chair Stoltze asked if the  new positions would have been                                                                    
necessary if the program were handled exclusively by DCCED.                                                                     
                                                                                                                                
Mr. Thayer responded that the  auditing had been done by the                                                                    
business  development  specialist.  He said  that  when  the                                                                    
program  was originally  designed,  DCCED  handled the  pre-                                                                    
qualifications, the  auditing function of going  through the                                                                    
applications,  and the  final  application.  He stated  that                                                                    
DCCED  had turned  those responsibilities  over  to DOR.  He                                                                    
furthered  that  DCCED had  also  been  responsible for  the                                                                    
marketing  function and  the  coordination functions,  which                                                                    
had  been split  up because  it was  believed that  the same                                                                    
individual  should be  doing the  auditing and  handling the                                                                    
pre-qualifications at the same time.                                                                                            
                                                                                                                                
7:01:57 PM                                                                                                                    
                                                                                                                                
JOHANNA BALES, DEPUTY DIRECTOR,  TAX DIVISION, DEPARTMENT OF                                                                    
REVENUE  (via  teleconference),  understood  that  the  bill                                                                    
created  an executive  director  position to  work with  the                                                                    
newly  created  review  commission. Additionally,  the  bill                                                                    
required an  on-site liaison to  consult producers  on large                                                                    
productions,  which had  necessitated  the  creation of  the                                                                    
second position.                                                                                                                
                                                                                                                                
Representative Costello  commented that  the intent  was not                                                                    
to have a full-time liaison position.                                                                                           
                                                                                                                                
Co-Chair Stoltze  suggested that the fiscal  note would need                                                                    
to be adjusted according to interpretation of the bill.                                                                         
                                                                                                                                
Representative Costello thought that  it would be prudent to                                                                    
reduce   the   number  of   positions,   and   to  keep   in                                                                    
communication  with the  department as  staffing needs  were                                                                    
brought to light.                                                                                                               
                                                                                                                                
7:04:32 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough directed attention  to the fiscal note                                                                    
from DOR,  which suggested the  extraction of  two employees                                                                    
from  DCCED;  however,  the same  two  positions  were  also                                                                    
listed on the  fiscal note for DCCED.  She  stated that from                                                                    
a  legislative perspective,  the additional  two people  had                                                                    
not been anticipated.  She said that she  understood why DOR                                                                    
would   want  one   dedicated   person,  requested   further                                                                    
explanation   of  the   DCCED  request   for  2   additional                                                                    
positions.                                                                                                                      
                                                                                                                                
Mr. Thayer replied  that the purpose of  the film production                                                                    
promotion  program was  to work  with  organizations in  the                                                                    
private  sector for  expansion and  development of  the film                                                                    
production industry  in the state;  to promote Alaska  as an                                                                    
appropriate  location  of  a  film  production;  to  provide                                                                    
production  assistance  through connecting  film  directors,                                                                    
makers,  and  producers  with  Alaska  location  scouts  and                                                                    
contractors,  including   contractors  providing  assistance                                                                    
with   permit    applications.   He   stated    that   those                                                                    
responsibilities   were  currently   covered  by   DCCED  in                                                                    
addition  to the  pre and  post  application. He  understood                                                                    
that  the fiscal  note requested  2 positions  but that  the                                                                    
department  often had  4  or 5  people  splitting duties  to                                                                    
handle  all of  the aforementioned  activates. He  testified                                                                    
that as deputy  director he had dedicated, at  one point, 20                                                                    
percent of his working day to this program.                                                                                     
                                                                                                                                
Representative   Gara   understood   that   the   department                                                                    
currently  had liaisons  that  promote  Alaska. He  wondered                                                                    
where the  extra work for  the department was going  to come                                                                    
from.  Mr. Thayer replied  that the work would continue with                                                                    
the existing amount of employees.                                                                                               
                                                                                                                                
Representative  Gara  thought  that that  the  fiscal  notes                                                                    
could  be  zeroed  because  most  of  positions  were  being                                                                    
transferred  between agencies.  Mr.  Thayer reiterated  that                                                                    
the  program   had  the   promotional  component,   the  pre                                                                    
application component and the  final application part of the                                                                    
program. He said  that some of the workload  was still being                                                                    
handled by, and would remain in the department by statute.                                                                      
                                                                                                                                
7:07:52 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  moved to  amend the DOR  fiscal note;                                                                    
FY14 through  FY18, $230.200 and  2 positions.  She believed                                                                    
that the  money would  fund one Tax  Auditor III  (Range 20)                                                                    
and one Tax Technician ii (Range 12).                                                                                           
                                                                                                                                
Ms.  Bales  asked  about  the provision  in  the  bill  that                                                                    
expects  an  executive  director consult  the  newly  formed                                                                    
commission and to oversee the staff of the Film Office.                                                                         
                                                                                                                                
Representative   Costello   interjected   that   there   was                                                                    
currently  an individual  within DCCED  that was  serving in                                                                    
the position. She  stressed that it had not  been the intent                                                                    
of the subcommittee to hire a new executive director.                                                                           
                                                                                                                                
Co-Chair Stoltze asked  if the handling of  the position was                                                                    
to be left up to the department.                                                                                                
                                                                                                                                
Representative Costello responded that  the bill stated that                                                                    
the departments  should work together  to determine  how the                                                                    
position was filled.                                                                                                            
                                                                                                                                
Representative  Doogan  understood  that  the  fiscal  notes                                                                    
could be  improved by  requesting two  positions in  DOR and                                                                    
two in  DCCED. Vice-chair  Fairclough replied that  that was                                                                    
the intent of her motion.                                                                                                       
                                                                                                                                
7:10:51 PM                                                                                                                    
                                                                                                                                
Representative  Gara expressed  confusion  as  to why  DCCED                                                                    
needed the  two new positions.  He felt that DOR  needed two                                                                    
new   positions   for   taxes,   and   there   was   obvious                                                                    
coordination.                                                                                                                   
                                                                                                                                
Vice-chair Fairclough explained that  DOR had not been doing                                                                    
audits; Legislative Audit had  been handling audits from the                                                                    
legislative side.  The effort would  now move to  DOR; DCCED                                                                    
would continue  to work with  DOR, as well as  continuing to                                                                    
promote and interface  in a variety of ways to  put the Film                                                                    
Office to  work for the state  of Alaska. She said  that the                                                                    
request  from  DCCED  had  been  that  the  committee  would                                                                    
recognize that if the program  was successful DOR would need                                                                    
to be involved.   She added that the  functionality could be                                                                    
revisited in 2013.                                                                                                              
                                                                                                                                
Vice-chair Fairclough asked if there  was any reason why the                                                                    
executive director should not reside in the Film Office.                                                                        
                                                                                                                                
Mr. Bales  stated that she  saw no reason why  the executive                                                                    
director could not reside in  the Film Office. She felt that                                                                    
DOR would be  content with two auditor  positions to oversee                                                                    
the applications.                                                                                                               
                                                                                                                                
Vice-chair Fairclough stated that  the subcommittee had been                                                                    
trying  to establish  a  working  arrangement that  provided                                                                    
transparency  for  the film  industry  and  for the  credits                                                                    
being used.                                                                                                                     
                                                                                                                                
Ms.  Bales  explained that  there  was  a provision  in  the                                                                    
legislation  that stated  that the  executive director  must                                                                    
oversee  the  staff. She  thought  that  there should  be  a                                                                    
separation of duties written into legislation.                                                                                  
                                                                                                                                
7:14:10 PM                                                                                                                    
                                                                                                                                
Representative  Wilson thought  that  the  fiscal note  from                                                                    
DCCED would not  add two more positions,  but would maintain                                                                    
an  already  established full-time  development  specialist,                                                                    
and a full-time administrative  assistant II; detailed half-                                                                    
time to  the film  promotion program.  She queried  what the                                                                    
other half-time  duties would include. Mr.  Thayer responded                                                                    
that  the  administrative  assistant to  the  program  would                                                                    
additionally  serve  as  the  administrative  assistant  for                                                                    
DCCED in Anchorage.                                                                                                             
                                                                                                                                
Representative  Wilson  understood  that the  two  positions                                                                    
already  existed  and were  not  being  created. Mr.  Thayer                                                                    
replied that the department remain at the status quo.                                                                           
                                                                                                                                
7:15:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
7:18:03 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative  Costello MOVED  to report  HCS CSSB  23(FIN)                                                                    
out  of committee  with individual  recommendations and  the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered                                                                                                                      
                                                                                                                                
HCS CSSB  23(FIN) was REPORTED  out of committee with  a "do                                                                    
pass" recommendation  and with  two new fiscal  impact notes                                                                    
from  the  Department  of  Revenue  and  the  Department  of                                                                    
Commerce,  Community and  Economic Development  and one  new                                                                    
zero  note  from  the   Legislature.  [Note:  The  committee                                                                    
rescinded  its action  to  report out  HCS  CSSB 23(FIN)  on                                                                    
4/14/12  and  took  corrective  action.  See  House  Finance                                                                    
Committee minutes dated 4/14/12, 10:25 a.m.]                                                                                    
                                                                                                                                
7:19:41 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
7:23:37 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB 91_Sponsor Statement.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 SWLogsheet_2012.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 2012 Freshwater Charter Logbook.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 91 2010 Participation Effort and Harvest in the Sport Fish Business-Guide Licensing and Logbook Programs.pdf HFIN 4/13/2012 9:00:00 AM
SB 91
SB 182 Sectional Analysis.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter on Education Funding (3).pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter on Education Funding (3).pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 182 Letter of Intent.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
Changes to CSSB 182.pdf HFIN 4/13/2012 9:00:00 AM
SB 182
SB 83 sponsor statement.docx HFIN 4/13/2012 9:00:00 AM
SB 83
SB 83 support documents-1.pdf HFIN 4/13/2012 9:00:00 AM
SB 83
State_Profile_2011_AK.pdf HFIN 4/13/2012 9:00:00 AM
SB 83
SB19 CS WORKDRAFT 27-LS0157-I 4.13.12.pdf HFIN 4/13/2012 9:00:00 AM
SB 19
SB160 DRAFT#s_HCS CSSB 160_FIN_.pdf HFIN 4/13/2012 9:00:00 AM
SB 160
SB23 CS WORKDRAFT 27-LS0252-XX.pdf HFIN 4/13/2012 9:00:00 AM
SB 23
SB23 HCS FIN EXPLANATION.pdf HFIN 4/13/2012 9:00:00 AM
SB 23
SB23 AMENDMENT 1- XX version.pdf HFIN 4/13/2012 9:00:00 AM
SB 23