Legislature(1993 - 1994)
04/14/1994 02:05 PM House FIN
| Audio | Topic |
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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
April 14, 1994
2:05 P.M.
TAPE HFC 94 - 125, Side 1, #000 - end.
TAPE HFC 94 - 125, Side 2, #000 - #424.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 2:05 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative Jeannette James; Carol Carroll, Staff,
Senator Jay Kerttula; Annette Kreitzer, Staff, Senator Loren
Leman; Dr. Thomas Trolter, President, Alaska Pacific
University, Anchorage; Wendy Redman, Vice President for
University Relations, University of Alaska, Anchorage; Jeff
Morrison, Legislative Liaison, Director, Division of
Administrative Services, Department of Military and Veterans
Affairs; Ervin Martin, (Testified via teleconference),
Director, Alaska Division of Emergency Services, Department
of Military and Veterans Affairs.
SUMMARY
HB 222 An Act relating to landlords and tenants, to
termination of tenancies and recovery of rental
premises, to tenant responsibilities, to the civil
remedies of forcible entry and detainer and
nuisance abatement, and to the duties of peace
officers to notify landlords of arrests involving
certain illegal activity on rental premises.
CS HB 222 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Law and a zero fiscal note by
the Department of Public Safety.
SB 225 An Act relating to credits against certain
insurance taxes for contributions to certain
1
educational institutions; and providing for an
effective date.
CS SB 225 (HES) was reported out of Committee with
a fiscal note by the Department of Commerce and
Economic Development dated 2/04/94 and a zero
fiscal note by the Department of Revenue dated
2/04/94.
SB 33 An Act relating to grants for local emergency
planning committees and emergency response
organizations; and providing for an effective
date.
SB 33 was placed into Subcommittee with
Representative Foster as Chair and with members
Representative Therriault and
Representative Brown.
HOUSE BILL 222
"An Act relating to landlords and tenants, to
termination of tenancies and recovery of rental
premises, to tenant responsibilities, to the civil
remedies of forcible entry and detainer and nuisance
abatement, and to the duties of peace officers to
notify landlords of arrests involving certain illegal
activity on rental premises."
Representative Therriault MOVED to adopt work draft #8-
LS0832\I, Chenoweth, 3/25/94. There being NO OBJECTIONS, it
was adopted.
REPRESENTATIVE JEANNETTE JAMES noted her support of the
committee substitute.
Representative Brown MOVED to adopt Amendment #1 which would
define tenant's rights for a landlord's unlawful ouster,
exclusion or diminution of service. Representative James
stated that she would support Amendment #1. There being NO
OBJECTION, Amendment #1 was adopted.
Representative Brown MOVED to adopt Amendment #2 providing
tenants a tool with which they could enforce a rental
agreement when there is a problem to which the landlord
fails to respond.
Representative Therriault MOVED to divide Amendment #2 into
two sections. Amendment #2B would consist of the second
part of the amendment, subsection (2). Amendment #2A would
consist of the first part, subsection (1) and subsection (3)
of the amendment. There being NO OBJECTION, Amendment #2
2
was divided.
Representative Therriault MOVED to adopt Amendment 2B.
There being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment 2A.
Representative Parnell OBJECTED stating the section would
foster more litigation for the Department of Law and would
allow a tenant to withhold a portion of their rent if they
believed that they were entitled to do so.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman, MacLean.
OPPOSED: Parnell, Therriault, Hanley, Martin,
Larson.
The MOTION PASSED (6-5).
Representative Navarre MOVED to report CS HB 222 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 222 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Law and a zero fiscal note by the Department
of Public Safety.
SENATE BILL 225
"An Act relating to credits against certain insurance
taxes for contributions to certain educational
institutions; and providing for an effective date."
CAROL CARROLL, STAFF, SENATOR JAY KERTTULA, stated that SB
225 would extend the already existing tax credit to
authorized insurance and title insurance companies.
Presently, corporate taxpayers, oil and gas producers, and
mining and fishing companies are able to credit their tax
liability for up to $150,000 dollars if they donate to a
qualified educational institution. She added that insurance
and title insurance companies are unable to take advantage
of this tax credit because they pay a premium tax instead of
a corporate income tax.
Ms. Carroll explained that SB 225 would provide that
authorized insurance companies could take a tax credit of
50% of the first $100,000 dollars and 100% of the next
$100,000 and donate it to a qualified institution. The
maximum credit available is $150,000 or 50% of the tax
3
liability, whichever is less.
Representative Brown asked the amount of lost revenue the
State would experience through the credit extension. Ms.
Carroll responded that the Division of Insurance has
submitted two fiscal notes. The first note was for $900
thousand dollars which would assume that six insurance
companies would take the full credit. She continued that
the second fiscal note for $1 million dollars would indicate
the potential if all fourteen hundred insurance companies
took the credit.
Representative Martin thought the legislation would provide
a "gain" for education rather than a loss for the State.
Ms. Carroll noted that in FY92 a tax credit of $533 thousand
dollars was taken and in FY93 a tax credit of $803 thousand
dollars was taken. Ms. Carroll commented that Senator
Kerttula hopes to get six insurance companies to use the tax
credit provided by the legislation.
DR. THOMAS TROLTER, PRESIDENT, ALASKA PACIFIC UNIVERSITY,
ANCHORAGE, encouraged the Committee to support the proposed
legislation adding the he knew several insurance companies
who would participate in the program. The legislation would
encourage the development of corporate philanthropy in
Alaska and would ease the burden for higher education.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, ANCHORAGE, commented that corporations
have not rushed to donate to the universities as a result of
the tax credits. She added that philanthropy in the
corporate sector depends on public relations and accounting.
Ms. Redman added that the University has found that
corporations more often give to higher education because
they have a commitment to higher education and not because
of the tax credit available. She emphasized that the tax
credit would provide additional opportunities outside of
normal general fund revenues.
Co-Chair MacLean MOVED to report CS SB 225 (HES) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS SB 225 (HES) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Commerce and Economic Development dated
2/04/94 and a zero fiscal note by the Department of Revenue
dated 2/04/94.
(Tape Change, HFC 94-125, Side 2).
SENATE BILL 33
4
"An Act relating to grants for local emergency planning
committees and emergency response organizations; and
providing for an effective date."
ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, commented that
CS SB 33 (FIN) would address emergency planning and
response. The Hazardous Substance Spill Technology Review
Council would transfer to the Department of Environmental
Conservation and the State Emergency Response Commission,
including its duty to designated local emergency planning
districts emergency planning committees to the Department of
Military and Veterans' Affairs. A requirement that the
State and regional oil discharge prevention and contingency
plans be revised annually would be eliminated.
Ms. Kreitzer explained that the intent of the legislation
was to facilitate a better working relationship between the
local emergency planning committees and local governments.
It would efficiently accomplish the goals of emergency
planning and planning for oil and hazardous substance
discharges by reducing the opportunities for duplication of
effort at the state level. Additionally, the abilities of
local communities to plan for disasters would be enhanced.
ERVIN MARTIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALASKA DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS, spoke in support of the
legislation noting that it would provide good public policy
by consolidating functions.
JEFF MORRISON, LEGISLATIVE LIAISON, DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, pointed out the joint support of both the
Department of Environmental Conservation (DEC) and the
Department of Military and Veterans Affairs (DMVA). The
legislation would expand the responsibilities of the State
Emergency Response System (SERS) for all hazards and would
require an additional two planners to be hired by the
Department in order to develop that plan.
Mr. Morrison explained that the legislation would coordinate
all planning activities. Currently, DMVA is charged by
statute to work with communities to prepare plans for
disasters. DEC is charged by statute to work with
communities to prepare plans for hazardous substance and oil
spills. To the extent that those two programs overlap,
there are conflicting statutes. The legislation would place
DMVA in charge of developing these plans.
Discussion followed between Committee members, Ms. Kreitzer
and Mr. Morrison regarding the response plan and the
5
associated timing of the plan.
Co-Chair Larson placed CS SB 33 (FIN) into Subcommittee with
Representative Foster as Chair and with members
Representative Therriault and Representative Brown. CS SB
33 (FIN) was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 3:15 P.M.
HOUSE FINANCE COMMITTEE
April 14, 1994
2:05 P.M.
TAPE HFC 94 - 125, Side 1, #000 - end.
TAPE HFC 94 - 125, Side 2, #000 - #424.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee meeting
to order at 2:05 P.M.
PRESENT
Co-Chair Larson Representative Hoffman
Co-Chair MacLean Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Foster
ALSO PRESENT
Representative Jeannette James; Carol Carroll, Staff,
Senator Jay Kerttula; Annette Kreitzer, Staff, Senator Loren
Leman; Dr. Thomas Trolter, President, Alaska Pacific
University, Anchorage; Wendy Redman, Vice President for
University Relations, University of Alaska, Anchorage; Jeff
Morrison, Legislative Liaison, Director, Division of
Administrative Services, Department of Military and Veterans
Affairs; Ervin Martin, (Testified via teleconference),
Director, Alaska Division of Emergency Services, Department
of Military and Veterans Affairs.
SUMMARY
HB 222 An Act relating to landlords and tenants, to
termination of tenancies and recovery of rental
premises, to tenant responsibilities, to the civil
remedies of forcible entry and detainer and
6
nuisance abatement, and to the duties of peace
officers to notify landlords of arrests involving
certain illegal activity on rental premises.
CS HB 222 (FIN) was reported out of Committee with
a "do pass" recommendation and with a fiscal note
by the Department of Law and a zero fiscal note by
the Department of Public Safety.
SB 225 An Act relating to credits against certain
insurance taxes for contributions to certain
educational institutions; and providing for an
effective date.
CS SB 225 (HES) was reported out of Committee with
a fiscal note by the Department of Commerce and
Economic Development dated 2/04/94 and a zero
fiscal note by the Department of Revenue dated
2/04/94.
SB 33 An Act relating to grants for local emergency
planning committees and emergency response
organizations; and providing for an effective
date.
SB 33 was placed into Subcommittee with
Representative Foster as Chair and with members
Representative Therriault and
Representative Brown.
HOUSE BILL 222
"An Act relating to landlords and tenants, to
termination of tenancies and recovery of rental
premises, to tenant responsibilities, to the civil
remedies of forcible entry and detainer and nuisance
abatement, and to the duties of peace officers to
notify landlords of arrests involving certain illegal
activity on rental premises."
Representative Therriault MOVED to adopt work draft #8-
LS0832\I, Chenoweth, 3/25/94. There being NO OBJECTIONS, it
was adopted.
REPRESENTATIVE JEANNETTE JAMES noted her support of the
committee substitute.
Representative Brown MOVED to adopt Amendment #1 which would
define tenant's rights for a landlord's unlawful ouster,
exclusion or diminution of service. Representative James
stated that she would support Amendment #1. There being NO
OBJECTION, Amendment #1 was adopted.
7
Representative Brown MOVED to adopt Amendment #2 providing
tenants a tool with which they could enforce a rental
agreement when there is a problem to which the landlord
fails to respond.
Representative Therriault MOVED to divide Amendment #2 into
two sections. Amendment #2B would consist of the second
part of the amendment, subsection (2). Amendment #2A would
consist of the first part, subsection (1) and subsection (3)
of the amendment. There being NO OBJECTION, Amendment #2
was divided.
Representative Therriault MOVED to adopt Amendment 2B.
There being NO OBJECTION, it was adopted.
Representative Brown MOVED to adopt Amendment 2A.
Representative Parnell OBJECTED stating the section would
foster more litigation for the Department of Law and would
allow a tenant to withhold a portion of their rent if they
believed that they were entitled to do so.
A roll call vote was taken on the MOTION.
IN FAVOR: Navarre, Brown, Foster, Grussendorf,
Hoffman, MacLean.
OPPOSED: Parnell, Therriault, Hanley, Martin,
Larson.
The MOTION PASSED (6-5).
Representative Navarre MOVED to report CS HB 222 (FIN) out
of Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 222 (FIN) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Law and a zero fiscal note by the Department
of Public Safety.
SENATE BILL 225
"An Act relating to credits against certain insurance
taxes for contributions to certain educational
institutions; and providing for an effective date."
CAROL CARROLL, STAFF, SENATOR JAY KERTTULA, stated that SB
225 would extend the already existing tax credit to
authorized insurance and title insurance companies.
Presently, corporate taxpayers, oil and gas producers, and
mining and fishing companies are able to credit their tax
8
liability for up to $150,000 dollars if they donate to a
qualified educational institution. She added that insurance
and title insurance companies are unable to take advantage
of this tax credit because they pay a premium tax instead of
a corporate income tax.
Ms. Carroll explained that SB 225 would provide that
authorized insurance companies could take a tax credit of
50% of the first $100,000 dollars and 100% of the next
$100,000 and donate it to a qualified institution. The
maximum credit available is $150,000 or 50% of the tax
liability, whichever is less.
Representative Brown asked the amount of lost revenue the
State would experience through the credit extension. Ms.
Carroll responded that the Division of Insurance has
submitted two fiscal notes. The first note was for $900
thousand dollars which would assume that six insurance
companies would take the full credit. She continued that
the second fiscal note for $1 million dollars would indicate
the potential if all fourteen hundred insurance companies
took the credit.
Representative Martin thought the legislation would provide
a "gain" for education rather than a loss for the State.
Ms. Carroll noted that in FY92 a tax credit of $533 thousand
dollars was taken and in FY93 a tax credit of $803 thousand
dollars was taken. Ms. Carroll commented that Senator
Kerttula hopes to get six insurance companies to use the tax
credit provided by the legislation.
DR. THOMAS TROLTER, PRESIDENT, ALASKA PACIFIC UNIVERSITY,
ANCHORAGE, encouraged the Committee to support the proposed
legislation adding the he knew several insurance companies
who would participate in the program. The legislation would
encourage the development of corporate philanthropy in
Alaska and would ease the burden for higher education.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, ANCHORAGE, commented that corporations
have not rushed to donate to the universities as a result of
the tax credits. She added that philanthropy in the
corporate sector depends on public relations and accounting.
Ms. Redman added that the University has found that
corporations more often give to higher education because
they have a commitment to higher education and not because
of the tax credit available. She emphasized that the tax
credit would provide additional opportunities outside of
normal general fund revenues.
Co-Chair MacLean MOVED to report CS SB 225 (HES) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
9
so ordered.
CS SB 225 (HES) was reported out of Committee with a "do
pass" recommendation and with a fiscal note by the
Department of Commerce and Economic Development dated
2/04/94 and a zero fiscal note by the Department of Revenue
dated 2/04/94.
(Tape Change, HFC 94-125, Side 2).
SENATE BILL 33
"An Act relating to grants for local emergency planning
committees and emergency response organizations; and
providing for an effective date."
ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, commented that
CS SB 33 (FIN) would address emergency planning and
response. The Hazardous Substance Spill Technology Review
Council would transfer to the Department of Environmental
Conservation and the State Emergency Response Commission,
including its duty to designated local emergency planning
districts emergency planning committees to the Department of
Military and Veterans' Affairs. A requirement that the
State and regional oil discharge prevention and contingency
plans be revised annually would be eliminated.
Ms. Kreitzer explained that the intent of the legislation
was to facilitate a better working relationship between the
local emergency planning committees and local governments.
It would efficiently accomplish the goals of emergency
planning and planning for oil and hazardous substance
discharges by reducing the opportunities for duplication of
effort at the state level. Additionally, the abilities of
local communities to plan for disasters would be enhanced.
ERVIN MARTIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR,
ALASKA DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS, spoke in support of the
legislation noting that it would provide good public policy
by consolidating functions.
JEFF MORRISON, LEGISLATIVE LIAISON, DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS
AFFAIRS, pointed out the joint support of both the
Department of Environmental Conservation (DEC) and the
Department of Military and Veterans Affairs (DMVA). The
legislation would expand the responsibilities of the State
Emergency Response System (SERS) for all hazards and would
require an additional two planners to be hired by the
Department in order to develop that plan.
10
Mr. Morrison explained that the legislation would coordinate
all planning activities. Currently, DMVA is charged by
statute to work with communities to prepare plans for
disasters. DEC is charged by statute to work with
communities to prepare plans for hazardous substance and oil
spills. To the extent that those two programs overlap,
there are conflicting statutes. The legislation would place
DMVA in charge of developing these plans.
Discussion followed between Committee members, Ms. Kreitzer
and Mr. Morrison regarding the response plan and the
associated timing of the plan.
Co-Chair Larson placed CS SB 33 (FIN) into Subcommittee with
Representative Foster as Chair and with members
Representative Therriault and Representative Brown. CS SB
33 (FIN) was HELD in Committee for further consideration.
ADJOURNMENT
The meeting adjourned at 3:15 P.M.
11
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