Legislature(2005 - 2006)HOUSE FINANCE 519

02/21/2006 03:00 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SB 236 AK HOUSING FINANCE CORP DIVIDEND
Moved CSSB 236(FIN) Out of Committee
Bills Previously Heard/Scheduled
= HB 150 LICENSING RADIOLOGIC TECHNICIANS
Moved CSHB 150(FIN) Out of Committee
= HB 334 MUNICIPAL PROPERTY TAX DEFERRAL/EXEMPTION
Moved CSHB 334(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 21, 2006                                                                                          
                         3:46 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 3:46:45 PM.                                                                                                          
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Reggie Joule                                                                                                     
Representative Beth Kerttula                                                                                                    
Representative Carl Moses                                                                                                       
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Kelly                                                                                                       
                                                                                                                                
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Jay  Ramras;   Suzanne  Cunningham,   Staff,                                                                   
Representative Kevin Meyer; Jim  Pound, Staff, Representative                                                                   
Jay  Ramras;   Heath  Ledyard,   Staff,  Representative   Tom                                                                   
Anderson;  Laurie  Herman,  Regional  Director,  Governmental                                                                   
Affairs,   Providence   Hospital,  Anchorage;   Rick   Urion,                                                                   
Director Occupational Licensing,  Department of Community and                                                                   
Economic Development                                                                                                            
                                                                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Ed Hall,  Physician  Assistant (PA-C),  Anchorage; Steve  Van                                                                   
Sant, State  Assessor, Department of Commerce,  Community and                                                                   
Economic  Development,   Anchorage;  Dan  Fauske,   Executive                                                                   
Director, Alaska  Housing Finance Corporation,  Department of                                                                   
Revenue, Anchorage;  Joe Dubler, Director of  Finance, Alaska                                                                   
Housing   Finance   Corporation,   Department   of   Revenue,                                                                   
Anchorage;   Bryan  Butcher,   Legislative  Liaison,   Alaska                                                                   
Housing   Finance   Corporation,   Department   of   Revenue,                                                                   
Anchorage                                                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 150    An Act requiring licensure  of occupations relating                                                                   
          to  radiology  technology, radiation  therapy,  and                                                                   
          nuclear medicine  technology; and providing  for an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS HB 150 (FIN) was reported out of Committee with                                                                    
          a "no  recommendation" and  with a new  fiscal note                                                                   
          by   the  Department   of  Commerce,  Community   &                                                                   
          Economic Development.                                                                                                 
                                                                                                                                
HB 334    An Act  relating to an exemption from  and deferral                                                                   
          of  municipal property taxes  for certain  types of                                                                   
          deteriorated property.                                                                                                
                                                                                                                                
          CS HB 334 (FIN) was reported out of Committee with                                                                    
          a "no recommendation"  and with zero note #1 by the                                                                   
          Department   of  Commerce,  Community   &  Economic                                                                   
          Development  and a new zero  note by the  Office of                                                                   
          Management and Budget.                                                                                                
                                                                                                                                
CS SB 236(FIN)                                                                                                                  
          An Act  relating to subsidiary corporations  of the                                                                   
          Alaska  Housing  Finance  Corporation  and  to  the                                                                   
          dividend  paid to the  state by the  Alaska Housing                                                                   
          Finance   Corporation;   and   providing   for   an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CS SB 236 (FIN) was  reported out of Committee with                                                                   
          a "do pass" recommendation  and with fiscal note #1                                                                   
          by   the   Alaska  Housing   Finance   Corporation,                                                                   
          Department of Revenue.                                                                                                
                                                                                                                                
3:48:27 PM                                                                                                                    
CS FOR SENATE BILL NO. 236(FIN)                                                                                               
                                                                                                                                
     An  Act  relating  to  subsidiary  corporations  of  the                                                                   
     Alaska Housing  Finance Corporation and to  the dividend                                                                   
     paid  to  the  state  by   the  Alaska  Housing  Finance                                                                   
     Corporation; and providing for an effective date.                                                                          
                                                                                                                                
Co-Chair Meyer pointed out that  the House companion bill had                                                                   
been heard  in the  House Finance Committee  last year.   The                                                                   
Senate bill was referred back  to the House Finance Committee                                                                   
for approval.  It is basically the same bill.                                                                                   
                                                                                                                                
3:49:24 PM                                                                                                                    
                                                                                                                                
DAN  FAUSKE,   (TESTIFIED   VIA  TELECONFERENCE),   EXECUTIVE                                                                   
DIRECTOR, ALASKA  HOUSING FINANCE CORPORATION,  DEPARTMENT OF                                                                   
REVENUE,  acknowledged that  it was the  same bill,  although                                                                   
gotten better with age.  The legislation  provides a transfer                                                                   
plan, which increases the amount  normally given to the State                                                                   
from the Alaska  Housing Finance Corporation  (AHFC) from $40                                                                   
million to $80 million dollars.                                                                                                 
                                                                                                                                
He pointed out that on the first  page, language was added on                                                                   
Line 9,  "harbors or other capital  projects".  That  was due                                                                   
to  change  in the  Government  Accounting  Standards  Board,                                                                   
regarding  how  AHFC determines  net  income  to net  assets.                                                                   
The configuration prompted the adjustment in the amount.                                                                        
                                                                                                                                
3:50:39 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED  to REPORT CS  SB 236 (FIN)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying  fiscal  note  by  the  Alaska  Housing  Finance                                                                   
Corporation,   Department  of  Revenue.     There   being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CS SB  236 (FIN)  was reported  out of  Committee with  a "do                                                                   
pass" recommendation  and with fiscal  note #1 by  the Alaska                                                                   
Housing Finance Corporation, Department of Revenue.                                                                             
                                                                                                                                
3:51:24 PM                                                                                                                    
HOUSE BILL NO. 150                                                                                                            
                                                                                                                                
     An Act  requiring licensure  of occupations  relating to                                                                   
     radiology  technology,  radiation therapy,  and  nuclear                                                                   
     medicine  technology;  and  providing for  an  effective                                                                   
     date.                                                                                                                      
                                                                                                                                
3:52:07 PM                                                                                                                    
                                                                                                                                
ED HALL, (TESTIFIED VIA TELECONFERENCE),  PHYSICIAN ASSISTANT                                                                   
IN FAMILY  PRACTICE (PA-C),  REPRESENTING THE ALASKA  ACADEMY                                                                   
OF  PHYSICIAN  ASSISTANTS, ANCHORAGE,  testified  against  HB
150.   He stated there  has been a  lack of justification  to                                                                   
impose licensing through the bill  and that there are no real                                                                   
facts to support the need for the bill.                                                                                         
                                                                                                                                
Historically, Physician  Assistants (PA) have  been portrayed                                                                   
as the only group against the  bill.  Following a round-table                                                                   
discussion,  some concerns  were addressed  and some  wording                                                                   
was changed.  The final bill was  not supported; that was two                                                                   
years ago.  The bill died in the  House HESS Committee.  Last                                                                   
year,  the  bill was  reintroduced  in  the House  Labor  and                                                                   
Commerce Committee  and then preceded to the  House Judiciary                                                                   
Committee.  That Committee asked  for more objective data and                                                                   
was not moved forward.                                                                                                          
                                                                                                                                
Mr. Hall  reiterated that  the PA's have  not found  any harm                                                                   
resulting from  radiation x-ray;  he questioned why  the bill                                                                   
had not been heard a second time  in the House HESS Committee                                                                   
as it relates to health concerns.                                                                                               
                                                                                                                                
3:55:15 PM                                                                                                                    
                                                                                                                                
Mr.  Hall   acknowledged  that   the  cumulative   affect  of                                                                   
radiation could  cause long-term harm.  However,  x-rays from                                                                   
dentistry  were   excluded.     The  Academy  of   Physicians                                                                   
Assistants supports  training and has discovered  evidence of                                                                   
training  programs in  place.   He  advised  that the  Alaska                                                                   
Native Medical Center in Anchorage receives that training.                                                                      
                                                                                                                                
Mr.  Hall referenced  a handout  demonstrating  irresponsible                                                                   
advertising.  (Copy on File).  He discussed two antidotes:                                                                      
                                                                                                                                
   · His brother has been working at the Providence                                                                             
     Emergency Room for 32-years and has yet heard or                                                                           
     experienced any case of a person suffering from x-ray                                                                      
     or radiation exposure;                                                                                                     
   · He noted that his nurse attended a training program and                                                                    
     shared her notes, indicating that x-ray exposure is                                                                        
     minimal and that it is always important to provide                                                                         
     quality films for reading.                                                                                                 
                                                                                                                                
Mr. Hall  pointed out that the  bill goes "above  and beyond"                                                                   
addressing basic x-ray.  He added  clinicians working in both                                                                   
urban and rural areas do support some sort of training.                                                                         
                                                                                                                                
4:00:02 PM                                                                                                                    
                                                                                                                                
Mr. Hall  discussed the  costs associated  with the  bill and                                                                   
that  the costs  of medical  care  are high  and continue  to                                                                   
rise.  Mr. Hall stressed that  most PA's would not be able to                                                                   
afford the training costs as individuals.   Those clinics are                                                                   
the ones that serve  the outlining areas of the  State.  Many                                                                   
PA's will  opt not  to have x-ray  services because  of costs                                                                   
associated  with  that training.    He believed  that  people                                                                   
would, therefore receive sub-standard care.                                                                                     
                                                                                                                                
4:01:45 PM                                                                                                                    
                                                                                                                                
Mr. Hall acknowledged that PA's  do not totally object to the                                                                   
bill.   They do  support basic  x-ray being  removed.   Other                                                                   
procedures such as  MRI's and CT scans involve  more than the                                                                   
basic  x-ray  skills.   If  that  change  is not  made,  PA's                                                                   
advocate a  40-hour program such as  the one in place  at the                                                                   
Alaska Native  Medical Center instead of the  240 recommended                                                                   
hour  training for  an on-line  education course.   Mr.  Hall                                                                   
stated  that would  be an  adequate  time to  train in  basic                                                                   
radiology and radiation safety.                                                                                                 
                                                                                                                                
4:03:32 PM                                                                                                                    
                                                                                                                                
Mr. Hall  noted that  the "physician  assistant" concept  was                                                                   
created to ease medical care costs.                                                                                             
                                                                                                                                
He pointed out  that originally the bill supported  a 20-hour                                                                   
Continuing Medical Education (CME)  component.  He reiterated                                                                   
for a  basic x-ray  course the time  was excessive  and means                                                                   
that employers would have to compensate  the employee's time-                                                                   
spent training.                                                                                                                 
                                                                                                                                
4:04:55 PM                                                                                                                    
                                                                                                                                
Mr. Hall  concluded that the costs  are going to be  high and                                                                   
passage  of the  bill would  create a  health concern  making                                                                   
access to x-ray unavailable.                                                                                                    
                                                                                                                                
4:05:19 PM                                                                                                                    
                                                                                                                                
LAURIE  HERMAN,  REGIONAL  DIRECTOR,   GOVERNMENTAL  AFFAIRS,                                                                   
PROVIDENCE  HOSPITAL,  ALASKA   STATE  HOSPITAL  AND  NURSING                                                                   
ASSOCIATION (ASHNA),  ANCHORAGE, testified in support  of the                                                                   
bill.  Both Providence  and ASHNA are in support  of the bill                                                                   
and have been involved in working  on compromise legislation.                                                                   
The  goal is  that of  strengthening the  quality of  imaging                                                                   
services  provided   in  Alaska  and  achieving   it  without                                                                   
creating a workforce crisis through legislative passage.                                                                        
                                                                                                                                
4:06:57 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  asked  about Mr.  Hall's  testimony                                                                   
regarding the 40-training hours  versus the 240-hour training                                                                   
program.  Ms. Herman needed to  look at the curriculum to see                                                                   
what would be removed.                                                                                                          
                                                                                                                                
4:07:54 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula  asked  if the  training  was  about                                                                   
quality versus hours.  Mr. Herman thought so.                                                                                   
                                                                                                                                
4:08:09 PM                                                                                                                    
                                                                                                                                
Vice  Chair  Stoltze  mentioned   conversations  with  Palmer                                                                   
doctors  practicing  rural  medicine and  that  they  worried                                                                   
about a  diminished access to health  care.  He asked  if the                                                                   
PA's  were   providing  diagnostic  services.     Ms.  Herman                                                                   
understood  they were  and  has been  debated  over the  past                                                                   
three years.                                                                                                                    
                                                                                                                                
4:08:51 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze reiterated  concerns with the  diagnostic                                                                   
sections of the bill.                                                                                                           
                                                                                                                                
4:09:16 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED to  ADOPT work draft  #24-LS0470\B,                                                                   
Mischel,  2/20/06, as  the  version of  the  bill before  the                                                                   
Committee.  There being NO OBJECTION, it was adopted.                                                                           
                                                                                                                                
HEATH LEDYARD, STAFF, REPRESENTATIVE TOM ANDERSON, commented                                                                    
on the changes made to work draft \B:                                                                                           
                                                                                                                                
4:10:30 PM                                                                                                                    
                                                                                                                                
     Page  2,  Lines  20-26:   The  sponsor  included                                                                           
     language  exempting  medical  personnel  in  the                                                                           
     military  and United  States (US)  Public Health                                                                           
     Service,  a standard  statutory exemption.   The                                                                           
     language  was   taken  directly  from  the  same                                                                           
     exemption for physicians  found in AS 08.64.370.                                                                           
     Alaska  Legal Services  recommended it  would be                                                                           
     appropriate  to  include  the  language  because                                                                           
     State  statute  cannot  supersede  federal  law.                                                                           
     Further,  the  sponsor  noted  that the  federal                                                                           
     government    has    licensing    and   training                                                                           
     requirements  that exceed those  included in the                                                                           
     bill.   The change  was included  in response to                                                                           
     concerns expressed  by the  Alaska Native Health                                                                           
     Board.                                                                                                                     
                                                                                                                                
4:13:16 PM                                                                                                                    
                                                                                                                                
     Page 5,  Line 31  & Page 6,  Lines 1-12:   A new                                                                           
     section  was included,  detailing  standards for                                                                           
     the  examination   for  a  limited  radiological                                                                           
     imager.     The  section   stipulates  that  the                                                                           
     Department  must  provide  the  exam at  regular                                                                           
     intervals   to   provide   maximum  access   for                                                                           
     applicants;  the  exam  will  be  based  on  the                                                                           
     American  Registry  of  Radiology  Technologists                                                                           
     (ARRT)  examination  in  consultation  with  the                                                                           
     State  Medical  Board,  the  Alaska  Society  of                                                                           
     Radiology    Technologists,   the    office   of                                                                           
     Radiology  Health  in the  Department  of Health                                                                           
     and  Social Services,  and a resident  member of                                                                           
     the  American   College  of   Radiology  with  a                                                                           
     minimum  passing  score  of  75%.    The  change                                                                           
     resulted from discussions  with the Alaska State                                                                           
     Medical Association.                                                                                                       
                                                                                                                                
4:13:23 PM                                                                                                                    
                                                                                                                                
     Page 6,  Lines 27-29:  New  (b) replaces (b) and                                                                           
     (c) of  the previous version-24-LS0470\N.   That                                                                           
     section places one  standard for the issuance of                                                                           
     a  temporary permit.   The  new  language states                                                                           
     that a  temporary permit is valid  for two years                                                                           
     from the date  of issuance.  The change resulted                                                                           
     from  comments made by  the Alaska  Primary Care                                                                           
     Association (APCA).                                                                                                        
                                                                                                                                
                                                                                                                                
4:14:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Chenault asked the affect  the changes would have on                                                                   
the  fiscal note.   Mr.  Ledyard did  not know.   The  change                                                                   
would create  a two-year  delay effective  date and  once the                                                                   
license was obtained, it would  be permanent.  He deferred to                                                                   
Mr.  Urion  from  the Department  of  Commerce,  Community  &                                                                   
Economic Development.                                                                                                           
                                                                                                                                
4:15:05 PM                                                                                                                    
                                                                                                                                
Representative   Kerttula   inquired   about   the   240-hour                                                                   
requirement.   Mr. Ledyard thought that the  Department would                                                                   
measure that  concern.   He added that  had been  included in                                                                   
the  "N" version  as  well and  mentioned  there was  concern                                                                   
regarding that.  The "B" version  on Page 5, Line 16 contains                                                                   
the  program approval  for  the  radiological  imager.   That                                                                   
language  was  included  to alleviate  those  concerns.    He                                                                   
referenced  Line 25.   The intent  of that language  provides                                                                   
that any training under a licensed  practiconer and sponsored                                                                   
by a  medical facility, constitutes  training.   The 240-hour                                                                   
reference is from  the on-line training program only.   It is                                                                   
one option but not a requirement.                                                                                               
                                                                                                                                
4:16:43 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze  asked the health risk  difference between                                                                   
a  dental  hygienist  and the  person  affected  through  the                                                                   
legislation.   Mr. Ledyard stated that his  understanding was                                                                   
based on testimony from one of  the supporting physicians and                                                                   
that on average,  dental x-rays are roughly 1/10  or less the                                                                   
amount of the exposure of medical x-rays.                                                                                       
                                                                                                                                
4:17:27 PM                                                                                                                    
                                                                                                                                
Vice Chair Stoltze wondered why  there were so many lobbyists                                                                   
with  conflicting  views  on  the  legislation.    He  voiced                                                                   
concern how it would affect the  under-represented population                                                                   
of Alaska.                                                                                                                      
                                                                                                                                
4:18:35 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze MOVED to  ADOPT new conceptual  Amendment                                                                   
#1.  Co-Chair Meyer OBJECTED.                                                                                                   
                                                                                                                                
Vice Chair Stoltze addressed the changes:                                                                                       
                                                                                                                                
     Page 6, Lines 17-19, deleting all material.                                                                                
     Page 6, Line 17, inserting:                                                                                                
     (A) Is enrolled in a program for the area approved                                                                         
    under AS 08.89.160 and pays the appropriate fee; or                                                                         
     (B) Demonstrates  to the satisfaction of  the department                                                                   
     that  the applicant  has been  performing limited  scope                                                                   
     radiology diagnostic  imaging under AS  08.89.150(b) for                                                                   
     two years preceding July 1, 2008 and pays the                                                                              
     appropriate fee; or                                                                                                        
                                                                                                                                
SUZANNE  CUNNINGHAM,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                   
explained that  during the review  of the "B"  version, there                                                                   
was concern  with the temporary  permit.  In the  revision of                                                                   
that statute, it  was noticed that a certain  class of people                                                                   
were  being  "caught  in the  middle"  demonstrating  to  the                                                                   
Department, two  years of limited scope  radiology diagnostic                                                                   
imaging.   The  intent with  the amendment  was to  guarantee                                                                   
that those  people would  still be able  to obtain  a limited                                                                   
permit under statute.                                                                                                           
                                                                                                                                
4:20:42 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  asked why the imaging  could not be                                                                   
addressed  under "A  or  B".   Ms. Cunningham  replied  under                                                                   
Section A, the limited permit  would be for a person enrolled                                                                   
in a program,  paying the appropriate  fee.  The  full permit                                                                   
is for a person who has taken  the examination and is waiting                                                                   
for the results.  There was concern  that if the bill passed,                                                                   
it has  a two year  delayed effective  date; hence,  a person                                                                   
with two previous years experience,  who could be eligible to                                                                   
receive a  full permit  after taking the  exam, would  not be                                                                   
able to have a temporary permit to work.                                                                                        
                                                                                                                                
Representative Weyhrauch pointed  out that the language says,                                                                   
"passed the exam".   Ms. Cunningham noted that  they would be                                                                   
waiting  for  the  exam results  under  #2,  Subsection  (A).                                                                   
Representative Weyhrauch pointed out Section 150(B).                                                                            
                                                                                                                                
4:22:03 PM                                                                                                                    
                                                                                                                                
Mr. Ledyard  added that in  version "B" before  the Committee                                                                   
and with  regard to  the temporary  permit, item (1)  applies                                                                   
only  to  those  seeking  a  temporary   permit  for  limited                                                                   
radiological  imaging.    He  noted  that  150(B)  refers  to                                                                   
qualifications  for limited radiology  imagers.   In drafting                                                                   
the  committee  substitute,  the  intent was  not  to  create                                                                   
disparity between  those persons  who had two  years previous                                                                   
experience and those  who did not and was intended  to create                                                                   
a  two-year temporary  partial  permit.   Drafting  that,  an                                                                   
error was  noticed, which  left some  people in "limbo"  that                                                                   
could  have experience.    The amendment  makes  a change  to                                                                   
allow  those people  the opportunity  to  obtain a  temporary                                                                   
permit while waiting for their results.                                                                                         
                                                                                                                                
4:24:18 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  WITHDREW  his OBJECTION  to  the  amendment.                                                                   
There  being  NO  further OBJECTION,  new  Amendment  #1  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
4:25:08 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if  there were new  fiscal notes.   Mr.                                                                   
Ledyard stated he did not at this  time and that the Division                                                                   
has not yet had an opportunity to prepare the new note.                                                                         
                                                                                                                                
Co-Chair  Chenault asked  if there was  on-line testimony  to                                                                   
speak to the fiscal note.                                                                                                       
                                                                                                                                
RICK URION,  DIRECTOR OCCUPATIONAL  LICENSING, DEPARTMENT  OF                                                                   
COMMUNITY  AND  ECONOMIC  DEVELOPMENT,   said  he  could  not                                                                   
address the new note at this time.                                                                                              
                                                                                                                                
                                                                                                                                
AT EASE:       4:26:05 PM                                                                                                     
RECONVENE:     4:27:58 PM                                                                                                     
                                                                                                                                
                                                                                                                                
4:28:05 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  maintained  concern   with  not  having  the                                                                   
revised fiscal  note in  Committee.  He  advised that  if the                                                                   
bill does pass Committee, it would  not be transmitted to the                                                                   
Clerk's  office   until  the  appropriate  fiscal   note  was                                                                   
available.   He asked the  impact the proposed  changes would                                                                   
have on the note.                                                                                                               
                                                                                                                                
Mr.  Urion stated  that the  law requires  the Department  to                                                                   
charge the  licensees to manage  that program.   Whatever the                                                                   
fiscal note  is would not include  general fund monies.   Mr.                                                                   
Urion directed his  testimony to the collection  of fines, as                                                                   
supported by fees not fines.                                                                                                    
                                                                                                                                
Co-Chair Meyer requested  that issue be discussed  at a later                                                                   
date.                                                                                                                           
                                                                                                                                
4:29:52 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch  questioned how many  complaints the                                                                   
Division  receives  every year  from  radiology  technicians.                                                                   
Mr. Urion  responded that the  Division had never  received a                                                                   
complaint.                                                                                                                      
                                                                                                                                
4:30:31 PM                                                                                                                    
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 150 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  Vice Chair Stoltze OBJECTED.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:      Holm, Joule, Kerttula, Weyhrauch, Foster,                                                                        
               Hawker, Meyer, Chenault                                                                                          
OPPOSED:       Moses, Stoltze                                                                                                   
                                                                                                                                
Representative Kelly was not present for the vote.                                                                              
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
CS HB  150 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and with a new  fiscal note by the Department                                                                   
of Commerce, Community & Economic Development.                                                                                  
                                                                                                                                
4:33:02 PM                                                                                                                    
HOUSE BILL NO. 334                                                                                                            
                                                                                                                                
     An Act relating to an exemption from and deferral of                                                                       
     municipal property taxes for certain types of                                                                              
     deteriorated property.                                                                                                     
                                                                                                                                
Representative  Holm MOVED to  RESCIND previous  action taken                                                                   
on  adopting  Amendment #1,  #24-LS1353\A.3,  Cook,  2/14/06.                                                                   
There being NO OBJECTION, action was rescinded.                                                                                 
                                                                                                                                
Representative  Holm  MOVED  to   ADOPT  Amendment  #2,  #24-                                                                   
LS1353\A.4, Cook, 2/15/04.  Vice Chair Stoltze OBJECTED.                                                                        
                                                                                                                                
JIM POUND,  STAFF, REPRESENTATIVE  JAY  RAMRAS, spoke  to the                                                                   
amendment.  He explained that  following discussions with the                                                                   
municipalities and  other governmental members,  the language                                                                   
of  #1 was  simplified.    Essentially, it  would  accomplish                                                                   
giving  control  to the  municipality  for  what and  how  to                                                                   
accomplish the deferrals, Page  1, Line 12, deleting language                                                                   
and inserting a  new section.  The new language  will provide                                                                   
finality  to  developers  trying  to  restore  the  buildings                                                                   
through the application process.                                                                                                
                                                                                                                                
4:35:56 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze asked if  the Fairbanks local  government                                                                   
was in support  of the legislation.   Mr. Pound  thought they                                                                   
were.                                                                                                                           
                                                                                                                                
4:36:12 PM                                                                                                                    
                                                                                                                                
Representative  Hawker acknowledged  that  with the  proposed                                                                   
amendment,   the  bill  could   accomplish  "something"   but                                                                   
questioned  if it  would accomplish  what was  intended.   He                                                                   
explained  that   the  amendment   clarifies  in   Statute  a                                                                   
requirement regarding  when a municipality authorizes  one of                                                                   
the  tax  deferral  activities  that they  must  establish  a                                                                   
schedule of dates certain to trigger a tax payment.                                                                             
                                                                                                                                
Mr. Pound said that was correct.                                                                                                
                                                                                                                                
4:37:21 PM                                                                                                                    
                                                                                                                                
Representative Hawker advised  that this Legislature would be                                                                   
proscribing future  legislatures criteria  that might  not be                                                                   
appropriate when  approaching the  municipality.   He worried                                                                   
about  forcing  a  date  limiting  the  criteria  to  a  date                                                                   
certain,  which   would  compromise  the  abilities   of  the                                                                   
municipalities to  pursue that type transaction.   He thought                                                                   
the  legislation  was  appropriate   for  only  one  specific                                                                   
transaction and not sufficiently  broad.  Mr. Pound said they                                                                   
attempted  to keep the  language as  simple as possible,  but                                                                   
agreed some cases could change that.                                                                                            
                                                                                                                                
4:39:07 PM                                                                                                                    
                                                                                                                                
Representative  Hawker   stated  that  the   amendment  would                                                                   
prohibit  such  latitude, wondering  if  that  was truly  the                                                                   
intent.  Mr. Pound noted the developers  want a date certain.                                                                   
He added  the latitude  would be  available to the  developer                                                                   
and the municipality.                                                                                                           
                                                                                                                                
4:40:02 PM                                                                                                                    
                                                                                                                                
Representative Hawker voiced opposition  with the Legislature                                                                   
dictating  criteria  to  all  municipalities  throughout  the                                                                   
State.                                                                                                                          
                                                                                                                                
4:40:21 PM                                                                                                                    
                                                                                                                                
Representative  Kerttula agreed  with Representative  Hawker.                                                                   
She recommended adding  language to the Amendment  on Line 5,                                                                   
inserting something like "unless  otherwise agreed to by both                                                                   
parties".     She  thought that  language  could provide  the                                                                   
option to negotiate out.  Mr. Pound agreed.                                                                                     
                                                                                                                                
4:41:07 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  asked  if  it  would  accomplish  the                                                                   
sponsor's  goal  and  provide   latitude  preserved  for  the                                                                   
municipalities,  by amending  Line 5  to read, "deferred  tax                                                                   
payments due  as specific  by the  municipality".   With that                                                                   
language,  the date would  not always  be the trigger  point.                                                                   
Other criteria could be appropriate.                                                                                            
                                                                                                                                
4:42:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JAY RAMRAS, SPONSOR,  noted appreciation  for                                                                   
that  perspective.   He  asked  an  example for  a  practical                                                                   
application.                                                                                                                    
                                                                                                                                
4:43:39 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  stressed  that  he was  not  offering                                                                   
advise   as    a   Certified    Public   Accountant    (CPA).                                                                   
Representative  Ramras noted  he would  support the  language                                                                   
offered by Representative Hawker.                                                                                               
                                                                                                                                
Co-Chair   Meyer  requested  that   Ms.  Cunningham   testify                                                                   
regarding the proposed changes.                                                                                                 
                                                                                                                                
SUZANNE  CUNNINGHAM,   STAFF,  REPRESENTATIVE   KEVIN  MEYER,                                                                   
commented   on  the  concern.     The   primary  reason   for                                                                   
introduction of the bill was that  there was vagueness in the                                                                   
statute regarding when the deferrals  and taxes would have to                                                                   
be paid  to the municipality.   Amendment #2  does accomplish                                                                   
the  intent  of  making certain  and  putting  language  into                                                                   
statute that the  tax payments become due on the  date set by                                                                   
the  municipality   at  the  time  of  the   deferral.    The                                                                   
municipalities, ultimately, are  the ones that chose to enact                                                                   
the ordinance  under the authority  of the statute,  so there                                                                   
is flexibility defining when the taxes are do.                                                                                  
                                                                                                                                
4:45:33 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  requested that  the  sponsor and  Ms.                                                                   
Cunningham discuss  the proposed language  amending Amendment                                                                   
#2.                                                                                                                             
                                                                                                                                
Co-Chair Meyer advised  that Amendment #2 would  be set aside                                                                   
and that the Committee move onto Amendment #3.                                                                                  
                                                                                                                                
4:45:54 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer MOVED  to  ADOPT Amendment  #3.   Vice  Chair                                                                   
Stoltze OBJECTED.                                                                                                               
                                                                                                                                
Ms. Cunningham explained that  the amendment would delete the                                                                   
language:   "An  exemption  or deferral  may  not be  granted                                                                   
under this subsection after July  1, 2010", Page 2, Lines 12-                                                                   
13.                                                                                                                             
                                                                                                                                
4:48:01 PM                                                                                                                    
                                                                                                                                
Vice Chair  Stoltze WITHDREW his  OBJECTION.  There  being NO                                                                   
further OBJECTION, Amendment #3 was adopted.                                                                                    
                                                                                                                                
                                                                                                                                
AT EASE:       4:48:27 PM                                                                                                     
RECONVENE:     4:54:10 PM                                                                                                     
                                                                                                                                
4:54:28 PM                                                                                                                    
                                                                                                                                
Representative  Hawker MOVED to  ADOPT a conceptual  language                                                                   
change to Amendment #2, deleting  on Page 1, Line 5, "one the                                                                   
date set" and inserting, "as specified";  Page 1 Line 12, and                                                                   
deleting "include a proposed date  that" and insert, "specify                                                                   
when".   There being NO OBJECTION,  Amendment #2 was amended.                                                                   
                                                                                                                                
Representative  Kerttula pointed  out  that now  there is  no                                                                   
escape clause  for the municipality  and the party  to decide                                                                   
anything different,  other than the date of  the tax payment.                                                                   
She maintained that there are  other mechanisms to enter into                                                                   
some kind  of an agreement over  the properties.   She voiced                                                                   
concern and asked the sponsor if that was what he wanted.                                                                       
                                                                                                                                
Representative Hawker  thought that concern was  addressed in                                                                   
the  conceptual  amendment.    In the  amendment,  the  local                                                                   
authority is  specifying what  the payment triggers  will be.                                                                   
He stressed it does not mean time  or date certain.  When the                                                                   
local authority  provides the "when"  clause, it would  be up                                                                   
to them to determine  it and leave the decision  making power                                                                   
with the municipality.                                                                                                          
                                                                                                                                
4:58:26 PM                                                                                                                    
                                                                                                                                
Representative Ramras agreed.                                                                                                   
                                                                                                                                
Representative Kerttula argued  that it does not really mean,                                                                   
"When something  happens" and  is not necessarily  a specific                                                                   
time.   Additionally,  she was  concerned  about locking  the                                                                   
municipalities into those conditions.                                                                                           
                                                                                                                                
4:59:38 PM                                                                                                                    
                                                                                                                                
Mr. Pound suggested  language, Page 1, Line  5, inserting "or                                                                   
on a date established by an occurrence of the events".                                                                          
                                                                                                                                
Representative  Hawker  advised  that the  original  language                                                                   
change satisfied him.                                                                                                           
                                                                                                                                
There being NO OBJECTION to the  amended Amendment #2, it was                                                                   
adopted.                                                                                                                        
                                                                                                                                
Representative Foster MOVED to  REPORT CS HB 334 (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS HB  334 (FIN)  was reported  out of  Committee with  a "no                                                                   
recommendation" and  with zero note  #1 by the  Department of                                                                   
Commerce,  Community &  Economic Development  and a  new zero                                                                   
note by the Office of Management and Budget.                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 5:01 P.M.                                                                                          

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