Legislature(2003 - 2004)
05/05/2003 03:29 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
May 05, 2003
3:29 PM
TAPE HFC 03 - 77, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 3:29 PM.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Rick Urion, Director Occupational Licensing, Department of
Community and Economic Development.
PRESENT VIA TELECONFERENCE
Sharon Young, State Recorder, Department of Natural
Resources.
SUMMARY
HB 162 "An Act increasing the fee for a state business
license; and providing for an effective date."
CS HB 162 (FIN) was REPORTED out of Committee with
"no recommendation" and two new fiscal notes: one
zero note from the Department of Natural Resources
and a fiscal impact note from Department of
Community and Economic Development.
HB 199 "An Act removing the annual adjustment to the
minimum wage based on the rate of inflation; and
providing for an effective date."
HB 199 was REPORTED out of Committee with a "no
recommendation" and one new fiscal note from The
Department of Labor and Workforce Development.
HOUSE BILL NO. 199
"An Act removing the annual adjustment to the minimum
wage based on the rate of inflation; and providing for
an effective date."
Vice-Chair Meyer MOVED to report HB 199 out of Committee
with individual recommendations and the accompanying fiscal
note.
Representative Croft OBJECTED. He suggested that out of
respect to the public process that originated the increase,
the Committee should maintain this small increment. He
suggested it would be easier for employers to provide
workers with a "living wage" by considering this gradual
increase as a part of the cost of doing business.
Co-Chair Williams noted that, in working on the docks for
the past ten years, he himself had not received a pay
increase in that time.
Co-Chair Harris OBJECTED and pointed out that the Consumer
Price Index (CPI) inflationary rate had not yet taken
effect. He suggested that the legislature ought to first
observe the effects of the CPI before taking action. He
also observed that businesses generally protected their own
interests, and he proposed that therefore government should
have some authority in setting minimum wage standards,
whether or not that included a step increase. He stated
that he was not in favor of the bill.
A roll call vote was taken on the motion.
IN FAVOR: Chenault, Foster, Hawker, Meyer, Stoltze,
Whitaker, Williams
OPPOSED: Croft, Harris, Joule, Moses
The motion PASSED on a vote of 4-7.
HB 199 was REPORTED out of Committee with "no
recommendation" and one new fiscal note from The Department
of Labor and Workforce Development.
HOUSE BILL NO. 162
"An Act increasing the fee for a state business
license; and providing for an effective date."
Co-Chair Harris MOVED to ADOPT the Committee Substitute,
Work Draft 23-GH1102\S (5/5/03). There being NO OBJECTION,
the Committee Substitute was ADOPTED.
RICK URION, DIRECTOR OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT provided information on
the changes in the Committee Substitute. He referred to
additional language included in Section 2, which referred to
$100 [license fee] payment for sole proprietors or a $50 fee
payment for a sole proprietor 65 years of age or older.
Representative Croft asked for clarification on the new
language referring to the Department of Natural Resources
contained in Section 1.
SHARON YOUNG, STATE RECORDER, DEPARTMENT OF NATURAL
RESOURCES testified via teleconference. She explained that
the additional language was not intended to raise fees from
the recorders or UCC [Uniform Commercial Code] filing
offices, but pointed out that the user fees were part of the
Governor's proposal to raise revenues. She noted that this
would allow raising the cost of reporting and filing fees
beyond the cost of the services provided. The fee would be
initiated by regulation through the public process. The new
language exempts the Department of Natural Resources from
the statute prohibiting fees from exceeding the cost of
service.
In response to a question by Representative Croft, Ms. Young
noted that AS 44.37.025 & .026 provide authorization for the
recording system operation and the UCC filing operation. In
response to a question by Representative Croft, Ms. Young
confirmed that the UCC recorded land transactions.
Representative Moses expressed his concern over language
pertaining to sole proprietorships. He observed that this
bill would consider small family operations as a corporate
entity and pay a higher fee. Mr. Urion clarified that a
married couple would be the same as a sole proprietor.
Representative Moses noted that other statutes might
override that assumption. Mr. Urion reiterated that the
intent of this bill was to consider married couples at the
lower fee level.
Representative Foster MOVED to report HB 162 out of
Committee with individual recommendations and the
accompanying fiscal note.
Representative Croft OBJECTED. He indicated that he would
offer an amendment on the floor suggesting that all fees be
for $50 only. He pointed out the steep increase in the
business license fee, rising from $25 to as much as $300.
He stated that he runs a small, incorporated business with
his wife, and observed that whereas he formerly paid $25,
and the Governor's bill would have him pay $200, this
version would raise is license fee to $300. He maintained
the concern that a married couple would be considered a
partnership and not a sole proprietorship and would
therefore be required to pay the $300 fee of larger
corporations. He also referred to Section 1 and
maintained that fees should roughly equal what it costs to
run a Department. He pointed out that the statute would
have recording fees no longer be in relation to the cost of
running Department of Natural Resources' land recording
division. He concluded that the increase was excessive.
Representative Whitaker referred to the new language in
Section 1. Co-Chair Williams pointed out that this was a
change in the new Committee Substitute. He asked if
subchapter "s" corporations were included in the statute.
Mr. Lawson responded that "s corps" were included in the
category of "all others".
Representative Foster noted that in 1949, when the business
license fee was first enacted for $25, the price of gold was
only $35 per ounce. He suggested that now, when the price
of gold was $330 an ounce, a $300 fee seemed reasonable.
A roll call vote was taken on the motion.
IN FAVOR: Foster, Hawker, Meyers, Stoltze, Whitaker,
Chenault, Williams, Harris
OPPOSED: Croft; Joule; Moses
The MOTION PASSED, 8-3.
CS HB 162 (FIN) was REPORTED out of Committee with "no
recommendation" and two new fiscal notes: one zero note from
the Department of Natural Resources and a fiscal impact note
from Department of Community and Economic Development.
ADJOURNMENT
The meeting was adjourned at 3:50 PM
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