03/27/2019 06:00 PM Senate STATE AFFAIRS

             SJR  4-CONST. AM: STATE TAX; INTIATIVE                                                                         
                                                                                                                                
6:11:17 PM                                                                                                                    
CHAIR  SHOWER   announced  the  consideration  of   SENATE  JOINT                                                               
RESOLUTION  NO. 4,  Proposing amendments  to the  Constitution of                                                               
the  State  of  Alaska  prohibiting   the  establishment  of,  or                                                               
increase to,  a state tax without  the approval of the  voters of                                                               
the state; and relating to the initiative process.                                                                              
                                                                                                                                
He stated  that the intent  was to  hear public testimony  on the                                                               
bill, which was last heard yesterday.                                                                                           
                                                                                                                                
SENATOR  REINBOLD  reported  that   Senator  Micciche  was  in  a                                                               
judiciary meeting.                                                                                                              
                                                                                                                                
6:12:09 PM                                                                                                                    
CHAIR SHOWER opened public testimony on SJR 4.                                                                                  
                                                                                                                                
6:12:50 PM                                                                                                                    
DAVE  OTNESS,  representing self,  Cordova,  stated  that he  was                                                               
reluctant  to  support  SJR  4  because  the  state  is  in  dire                                                               
financial  straits  and  should  not "jump  too  far  too  fast."                                                               
Instead, he  urged legislators  to take time  to clarify  what is                                                               
happening and explore potential options.                                                                                        
                                                                                                                                
6:14:02 PM                                                                                                                    
JEFF  GUARD,  representing  self,  Cordova,  stated  that  he  is                                                               
vehemently opposed  to SJR 4.  He compared the  Governor's budget                                                               
proposals  to budget  proposals  adopted in  Kansas. "And  Kansas                                                               
ended  up  being  a  train  wreck  that's  still  trying  to  dig                                                               
themselves out  of it," he said.  He described SJR 4,  SJR 5, and                                                               
SJR 6  as handcuffs  on the legislature  that would  preclude any                                                               
options if the state goes over a financial cliff.                                                                               
                                                                                                                                
6:15:17 PM                                                                                                                    
EARL LACKEY,  representing self,  MatSu, stated firm  support for                                                               
SJR 4. He  urged the people who have voiced  support for taxes to                                                               
understand that  the taxes  would apply to  all Alaskans  and all                                                               
Alaskans should therefore be able to vote on the idea.                                                                          
                                                                                                                                
6:16:10 PM                                                                                                                    
MIKE COONS,  President, Greater Alaska  Chapter of  AMAC, Palmer,                                                               
testified  in support  of  SJR  4. He  opined  that the  proposed                                                               
constitutional  amendment goes  to the  core of  why this  nation                                                               
went  to  war with  England  in  1776.  It was  taxation  without                                                               
representation. He acknowledged  that the proposed constitutional                                                               
amendment  would not  stop  sin  taxes or  more  oil or  business                                                               
taxes. However, he said, it will  stop cold the imposition of any                                                               
income  taxes  without a  citizen's  referendum.  He opined  that                                                               
since this is  a republic rather than a  democracy, the threshold                                                               
should be a 2/3 vote rather than a simple majority.                                                                             
                                                                                                                                
6:18:13 PM                                                                                                                    
MICHELLE  HAHN,  representing  self,  Cordova,  stated  that  she                                                               
opposes  SJR   4,  in  part   because  the  people   elect  their                                                               
legislators to  make these hard  decisions. She pointed  out that                                                               
city councils  are elected for the  same reason. She said  she is                                                               
one  who favors  a  state income  tax because  she  wants to  see                                                               
Alaska grow  and thrive rather  than languish because  people are                                                               
unwilling to give up the free ride and pay for needed services.                                                                 
                                                                                                                                
6:19:58 PM                                                                                                                    
CHRISTINE  HUTCHISON,  representing   self,  Kenai,  stated  avid                                                               
support for  SJR 4. She  posited that  it is imperative  to delay                                                               
the tax  obligation until  the people  know exactly  what they're                                                               
paying  for and  what  that costs.  She admitted  she  is not  an                                                               
economist  but she  deduced from  an  earlier presentation  that,                                                               
based  on the  current population,  an income  tax won't  work in                                                               
Alaska. [Testimony indiscernible]                                                                                               
                                                                                                                                
6:21:50 PM                                                                                                                    
WILLIAM TOPEL, representing  self, Anchorage, stated wholehearted                                                               
support for SJR 4. He said he  would prefer it to be a two-thirds                                                               
vote.                                                                                                                           
                                                                                                                                
SENATOR REINBOLD asked if he was on  his cell phone and if it was                                                               
on speaker.  She said the members  were trying to figure  out the                                                               
reason for the excessive static.                                                                                                
                                                                                                                                
MR. TOPEL confirmed he was on his cell phone but not on speaker.                                                                
                                                                                                                                
6:22:48 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
6:26:01 PM                                                                                                                    
CHAIR SHOWER reconvened the meeting.                                                                                            
                                                                                                                                
SENATOR MICCICHE joined the committee.                                                                                          
                                                                                                                                
JOSHUA  MCHOES, representing  self, Wasilla,  [The testimony  was                                                               
indiscernible and then the connection was lost].                                                                                
                                                                                                                                
6:26:56 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
6:44:49 PM                                                                                                                    
CHAIR  SHOWER  reconvened  the meeting.  Finding  no  others  who                                                               
wished  to comment,  he  closed  public testimony  on  SJR 4.  He                                                               
reminded the public that written  testimony could be submitted to                                                               
senate.state.affairs@akleg.gov.