Legislature(2015 - 2016)BELTZ 105 (TSBldg)

02/26/2015 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 15 LIFE INSURANCE POLICY PREMIUM TAX TELECONFERENCED
Heard & Held
*+ SB 47 LIFE INSURANCE/ANNUITY EXEMPTIONS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 39 REPEAL FILM PRODUCTION TAX CREDIT TELECONFERENCED
Heard & Held
            SB  39-REPEAL FILM PRODUCTION TAX CREDIT                                                                        
                                                                                                                                
2:11:22 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 39.  "An Act  repealing the  film production                                                               
tax  credit; providing  for an  effective date  by repealing  the                                                               
effective  dates  of  secs.  31  - 33,  ch.  51,  SLA  2012;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
2:12:15 PM                                                                                                                    
SHARON HAWN, representing herself,  Wasilla, Alaska, testified in                                                               
opposition to SB 39. She  reviewed the history of film production                                                               
in the  state including her  involvement, and offered  her belief                                                               
that the bill intends to eliminate the program altogether.                                                                      
                                                                                                                                
2:19:19 PM                                                                                                                    
JACY   PETERSEN,   representing   herself,   Anchorage,   Alaska,                                                               
testified in  opposition to SB  39. She  explained that she  is a                                                               
CPA who  conducts audits  for the film  tax verification  and she                                                               
has  seen that  the tax  credit  program brings  business to  the                                                               
state and jobs for Alaskans.                                                                                                    
                                                                                                                                
2:21:58 PM                                                                                                                    
TESS WEAVER,  representing herself, Anchorage,  Alaska, testified                                                               
in opposition to SB 39.  She talked about her personal experience                                                               
and  professional  training  in  film  production  and  said  she                                                               
doesn't want  to leave Alaska  to continue to pursue  her career.                                                               
The money she receives is  recycled through local businesses. She                                                               
asked the  committee not to  take away  what she and  others have                                                               
worked so hard to create.                                                                                                       
                                                                                                                                
2:23:33 PM                                                                                                                    
MICHAEL COLLIER, Random Acronym,  Anchorage, Alaska, testified in                                                               
opposition to  SB 39. He spoke  of the all-Alaskan project  he is                                                               
undertaking  and said  that  without the  tax  incentive all  the                                                               
money  has to  be  returned to  investors and  the  70 jobs  will                                                               
disappear. He said that films  could be a billion dollar industry                                                               
for  Alaska and  would  provide security  in  the current  fiscal                                                               
crisis. He cautioned against killing  an industry that could help                                                               
to diversify the economy.                                                                                                       
                                                                                                                                
2:26:10 PM                                                                                                                    
LEVI TAYLOR,  Crooked Pictures,  Anchorage, Alaska,  testified in                                                               
opposition  to SB  39. He  spoke of  wanting to  be an  inspiring                                                               
filmmaker  since middle  school.  His first  successful film  won                                                               
major awards  in Hollywood  and he  was offered  opportunities to                                                               
stay there  and continue  to work. However,  because of  the film                                                               
incentives he  was able to return  to Alaska. What he  noticed is                                                               
that  the industry  has grown  impressively in  a short  time. He                                                               
urged the  committee not  to kill a  rising industry  that offers                                                               
diversity.                                                                                                                      
                                                                                                                                
2:27:27 PM                                                                                                                    
LAURA  LIMKINS,  Epicenter   Productions,  Eagle  River,  Alaska,                                                               
testified  in opposition  to  SB  39. She  reviewed  her 25  year                                                               
history with the  industry in Alaska that  includes developing an                                                               
educational  series  about   perpetuating  Alaska  languages  and                                                               
culture. She  pointed out  that eliminating  the film  tax credit                                                               
won't do  away with the reality  shows, but it will  do away with                                                               
the  large productions  that come  to  the state.  She urged  the                                                               
committee to  think about  how the  film tax  program diversifies                                                               
the economy and strengthens its foundation.                                                                                     
                                                                                                                                
2:29:19 PM                                                                                                                    
MARY   WASCHE,  representing   herself,   Eagle  River,   Alaska,                                                               
testified in  opposition to SB 39.  She recounted her story  as a                                                               
senior citizen who is trying to  become a fiction writer. She was                                                               
at the signing  stage when this legislation  stopped the project.                                                               
She  pointed out  that keeping  the film  incentive program  will                                                               
allow creative writers to present the  state as it really is, not                                                               
as it's  being depicted  by reality shows.  She said  the numbers                                                               
show  that this  program is  a tiny  portion of  Alaska's serious                                                               
budget deficit,  and keeping the  program could bring  growth and                                                               
dollars to the state.                                                                                                           
                                                                                                                                
2:31:57 PM                                                                                                                    
DEBORAH  SCHILDT,   President,  Alaska  Film   Group,  Anchorage,                                                               
Alaska,  testified in  opposition  to  SB 39.  She  said she  has                                                               
worked  in the  industry for  30  years and  the state's  current                                                               
fiscal  crisis is  brought on  in part  by its  lack of  economic                                                               
diversity. It  didn't happen overnight.  She cited data  from the                                                               
2013  Feature   Film  Production  Report  to   refute  the  prior                                                               
testimony  from the  Manhattan Institute  claiming that  Alaska's                                                               
film   program  didn't   pencil  out.   The  figures   show  that                                                               
substantial numbers of jobs and  revenue come to states that have                                                               
a film  incentive program in  place. She emphasized that  the key                                                               
is to have  a program that is  in place and that  is where Alaska                                                               
has to  stay if it wants  to compete. Breathtaking scenery  is no                                                               
longer enough;  locations are trumped by  economic realities. She                                                               
urged the committee  not to shut the door on  diversity the state                                                               
needs today and in the future.                                                                                                  
                                                                                                                                
CHAIR  COSTELLO asked  Ms. Schildt  to send  a copy  of the  2013                                                               
Feature Film  Production Report  and she  would distribute  it to                                                               
the committee.                                                                                                                  
                                                                                                                                
2:35:07 PM                                                                                                                    
BOB  CROCKETT,   General  Manager,  Piksik,   Anchorage,  Alaska,                                                               
testified in opposition to SB  39. He talked about recently being                                                               
in the field with a crew  of 20 Alaskans filming in Talkeetna and                                                               
outside Whittier.  He said Piksik  invested millions in  the film                                                               
industry  because they  had a  commitment from  the state  for 10                                                               
years.  Last  session the  time  to  realize  a return  on  those                                                               
investments  was reduced  from  10  years to  4  years. With  the                                                               
introduction of  SB 39  they're looking  at a  sunset on  July 1,                                                               
2015, which is  a daunting challenge for any  business. He opined                                                               
that  the  answer  to  the   state's  current  fiscal  crisis  is                                                               
diversification and  the film industry  is on the right  track to                                                               
provide that.  Governor Walker's  actions suspended  the program,                                                               
but if SB 39 passes it will be permanently closed.                                                                              
                                                                                                                                
2:37:59 PM                                                                                                                    
MAYA SALGANEK, UAF Film Program,  Fairbanks, Alaska, testified in                                                               
opposition  to  SB  39.  She   refuted  the  testimony  from  the                                                               
Manhattan Institute and  talked about the number  of her students                                                               
who are actively  employed in the film industry.  She pointed out                                                               
that film makers prefer to hire  local, trained talent and the UA                                                               
Regents consider  the UA film  program to be of  high importance.                                                               
She said if we want Alaskans  to take the lead in developing 21st                                                               
Century high  tech jobs in media  communication, then maintaining                                                               
the tax incentive program is the first step.                                                                                    
                                                                                                                                
2:41:56 PM                                                                                                                    
NATALIA   LAMONT,   representing  herself,   Anchorage,   Alaska,                                                               
testified  in opposition  to SB  39. She  related her  experience                                                               
writing scripts  and working  on a set,  and expressed  hope that                                                               
she would see  a film produced in the Yupik  language with Native                                                               
actors in her lifetime. She asked  the committee to keep the film                                                               
incentive program alive.                                                                                                        
                                                                                                                                
2:45:10 PM                                                                                                                    
IRENE  BEDARD,  President,  Sleeping   Lady  Films  Waking  Giant                                                               
Productions,  testified in  opposition to  SB 39.  She emphasized                                                               
that  keeping the  film credit  is  an affirmative  move for  the                                                               
state.  She  described  films  that  highlight  Native  life  and                                                               
culture and  opined that it  would be a  shame to export  that to                                                               
Canada.                                                                                                                         
                                                                                                                                
2:49:41 PM                                                                                                                    
KEN LANDFIELD, representing himself,  Homer, Alaska, testified in                                                               
opposition  to  SB 39.  He  questioned  how eliminating  the  tax                                                               
credit program  will help the  state treasury to  any substantial                                                               
amount.   The  Governor   already  suspended   the  program   and                                                               
eliminating it will  do nothing but harm. He  urged the committee                                                               
not to kill the program.                                                                                                        
                                                                                                                                
2:52:02 PM                                                                                                                    
JAMES   WALKER,   Walking   West  Entertainment,   Los   Angeles,                                                               
California, testified  in opposition  to SB  39. He  talked about                                                               
traveling  the  state  in  the  last two  years  to  explore  the                                                               
economic and commercial climate to  better understand how to work                                                               
hand-in-hand  with Alaska  entrepreneurs, educators,  and artists                                                               
to utilize  the tax  incentive program to  generate a  viable and                                                               
profitable motion  picture industry that can  help incubate other                                                               
technology driven  industries. He  said Alaska  can be  more than                                                               
just  a  film  destination  by establishing  jobs  in  the  post-                                                               
production phase  of the motion  picture and  television process.                                                               
These high skill  jobs can last up to two  years and include film                                                               
editing,   visual  effects,   animation,   music  scoring,   data                                                               
management, software development, engineering, and programing.                                                                  
                                                                                                                                
MR. WALKER  said that  contrary to  testimony from  the Manhattan                                                               
Institute, post-production companies  are training local Alaskans                                                               
in permanent jobs that will ensure not only their economic                                                                      
vitality but that of their families, communities, and the state.                                                                
                                                                                                                                
2:57:26 PM                                                                                                                    
CHAIR COSTELLO requested that individuals contact her office                                                                    
before calling from offnet locations to testify on SB 39 on                                                                     
Tuesday 3/3/15.                                                                                                                 
                                                                                                                                
[SB 39 was held in committee.]                                                                                                  

Document Name Date/Time Subjects
SB 15 Sponsor Substitute Research Copy of Life Premium Taxes.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Research Life Insurance Industry.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Research on Revenue.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Research South Dakota Law.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Sectional Analysis.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Sponsor Statement.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
Fiscal Note - SB 15.php.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 47 Fiscal Note DCCED (1).pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 47 Fiscal Note DCCED.pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 47 Research on Insurance Fraud.pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 47 Sectional Analysis.pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 47 Sponsor Statement.pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 47.pdf SL&C 2/26/2015 1:30:00 PM
SB 47
SB 15 Research Alaska Life Insurance Facts.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
SB 15 Sponsor Substitute Letter of Support.pdf SL&C 2/26/2015 1:30:00 PM
SB 15
Fiscal Note - SB 47.php.pdf SL&C 2/26/2015 1:30:00 PM
SB 47