Legislature(2011 - 2012)BARNES 124

04/15/2012 09:00 AM RULES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ SB 104 MANUFACTURED HOMES AS REAL PROPERTY TELECONFERENCED
Moved HCS CSSB 104(RLS) Out of Committee
+ SB 25 AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE TELECONFERENCED
Scheduled But Not Heard
+ SB 74 INS. COVERAGE: AUTISM SPECTRUM DISORDER TELECONFERENCED
Moved HCS SB 74(RLS) Out of Committee
+ SB 23 FILM PRODUCTION TAX CREDIT/AUDITS TELECONFERENCED
Moved HCS CSSB 23(RLS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 15, 2012                                                                                         
                           9:04 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Craig Johnson, Chair                                                                                             
Representative Kurt Olson, Vice Chair                                                                                           
Representative Mike Chenault                                                                                                    
Representative Alan Austerman                                                                                                   
Representative Max Gruenberg                                                                                                    
Representative Chris Tuck                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Gatto (deceased - April 10, 2012)                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 104(JUD)                                                                               
"An Act  relating to  manufactured homes,  including manufactured                                                               
homes  permanently   affixed  to  land,  to   the  conversion  of                                                               
manufactured  homes  to  real  property,   to  the  severance  of                                                               
manufactured   homes  from   real  property,   to  the   titling,                                                               
conveyance,  and  encumbrance  of   manufactured  homes,  and  to                                                               
manufacturers'   certificates  of   origin   for  vehicles;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HCS CSSB 104(RLS) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE BILL NO. 74                                                                                                              
"An  Act   requiring  insurance  coverage  for   autism  spectrum                                                               
disorders,  describing  the  method for  establishing  a  covered                                                               
treatment  plan for  those disorders,  and  defining the  covered                                                               
treatment  for those  disorders; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED HCS SB 74(RLS) OUT OF COMMITTEE                                                                                    
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 23(FIN)                                                                                
"An Act relating to transferable  film production tax credits and                                                               
film   production   tax   credit  certificates;   requiring   the                                                               
legislative audit  division to audit  the Alaska  film production                                                               
incentive  program;  and  providing  for  an  effective  date  by                                                               
amending  the effective  dates  of secs.  3 and  4,  ch. 63,  SLA                                                               
2008."                                                                                                                          
                                                                                                                                
     - MOVED HCS CSSB 23(RLS) OUT OF COMMITTEE                                                                                  
                                                                                                                                
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 25(FIN)                                                                           
"An  Act establishing  the  sustainable  energy transmission  and                                                               
supply development  program in the Alaska  Industrial Development                                                               
and  Export Authority;  relating  to the  interest  rates of  the                                                               
Alaska Industrial Development and  Export Authority; and relating                                                               
to  taxes paid  on  interests  in property  owned  by the  Alaska                                                               
Industrial  Development and  Export  Authority and  to the  local                                                               
contribution  for  public  education   funding  related  to  that                                                               
property."                                                                                                                      
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 104                                                                                                                  
SHORT TITLE: MANUFACTURED HOMES AS REAL PROPERTY                                                                                
SPONSOR(s): SENATOR(s) FRENCH                                                                                                   
                                                                                                                                
03/16/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/16/11       (S)       STA, JUD                                                                                               
03/29/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/29/11       (S)       Heard & Held                                                                                           
03/29/11       (S)       MINUTE(STA)                                                                                            
03/31/11       (S)       STA AT 9:00 AM BUTROVICH 205                                                                           
03/31/11       (S)       Moved SB 104 Out of Committee                                                                          
03/31/11       (S)       MINUTE(STA)                                                                                            
04/01/11       (S)       STA RPT  2DP 3NR                                                                                       
04/01/11       (S)       DP: KOOKESH, MEYER                                                                                     
04/01/11       (S)       NR: WIELECHOWSKI, PASKVAN, GIESSEL                                                                     
04/06/11       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/06/11       (S)       Heard & Held                                                                                           
04/06/11       (S)       MINUTE(JUD)                                                                                            
04/15/11       (S)       JUD AT 1:30 PM BUTROVICH 205                                                                           
04/15/11       (S)       Heard & Held                                                                                           
04/15/11       (S)       MINUTE(JUD)                                                                                            
01/18/12       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
01/18/12       (S)       Moved CSSB 104(JUD) Out of Committee                                                                   
01/18/12       (S)       MINUTE(JUD)                                                                                            
01/20/12       (S)       JUD RPT CS  4DP  SAME TITLE                                                                            
01/20/12       (S)       DP:   FRENCH,   COGHILL,   WIELECHOWSKI,                                                               
                         PASKVAN                                                                                                
01/27/12       (S)       TRANSMITTED TO (H)                                                                                     
01/27/12       (S)       VERSION: CSSB 104(JUD)                                                                                 
01/30/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/30/12       (H)       L&C, STA                                                                                               
04/04/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/04/12       (H)       Moved Out of Committee                                                                                 
04/04/12       (H)       MINUTE(L&C)                                                                                            
04/05/12       (H)       L&C RPT 3DP 3NR                                                                                        
04/05/12       (H)       DP: THOMPSON, MILLER, HOLMES                                                                           
04/05/12       (H)       NR: JOHNSON, SADDLER, OLSON                                                                            
04/10/12       (H)       STA RPT 4DP 1NR                                                                                        
04/10/12       (H)       DP:    P.WILSON,   GRUENBERG,    SEATON,                                                               
                         PETERSEN                                                                                               
04/10/12       (H)       NR: KELLER                                                                                             
04/10/12       (H)       STA AT 8:00 AM CAPITOL 106                                                                             
04/10/12       (H)       Moved Out of Committee                                                                                 
04/10/12       (H)       MINUTE(STA)                                                                                            
04/15/12       (H)       RLS AT 9:00 AM BARNES 124                                                                              
                                                                                                                                
BILL: SB  74                                                                                                                  
SHORT TITLE: AUTISM: INS. COVERAGE,  TASK FORCE                                                                                 
SPONSOR(s): SENATOR(s) ELLIS                                                                                                    
                                                                                                                                
01/28/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/28/11       (S)       HSS, L&C                                                                                               
03/30/11       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
03/30/11       (S)       Moved SB  74 Out of Committee                                                                          
03/30/11       (S)       MINUTE(HSS)                                                                                            
04/01/11       (S)       HSS RPT  4DP 1AM                                                                                       
04/01/11       (S)       DP: DAVIS, MEYER, ELLIS, EGAN                                                                          
04/01/11       (S)       AM: DYSON                                                                                              
04/12/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
04/12/11       (S)       Scheduled But Not Heard                                                                                
04/14/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
04/14/11       (S)       Moved SB  74 Out of Committee                                                                          
04/14/11       (S)       MINUTE(L&C)                                                                                            
04/15/11       (S)       L&C RPT  4DP 1DNP                                                                                      
04/15/11       (S)       DP: EGAN, DAVIS, PASKVAN, MENARD                                                                       
04/15/11       (S)       DNP: GIESSEL                                                                                           
02/23/12       (S)       TRANSMITTED TO (H)                                                                                     
02/23/12       (S)       VERSION: SB  74                                                                                        
02/24/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/12       (H)       HSS, L&C                                                                                               
04/10/12       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
04/10/12       (H)       Heard & Held                                                                                           
04/10/12       (H)       MINUTE(HSS)                                                                                            
04/14/12       (H)       HSS RPT 5DP 1NR 1AM                                                                                    
04/14/12       (H)       DP: SEATON, MILLER, HERRON, MILLETT,                                                                   
                         KERTTULA                                                                                               
04/14/12       (H)       NR: DICK                                                                                               
04/14/12       (H)       AM: KELLER                                                                                             
04/14/12       (H)       L&C REFERRAL WAIVED                                                                                    
04/14/12       (H)       HSS AT 9:30 AM CAPITOL 106                                                                             
04/14/12       (H)       Moved Out of Committee                                                                                 
04/14/12       (H)       MINUTE(HSS)                                                                                            
04/15/12       (H)       RLS AT 9:00 AM BARNES 124                                                                              
                                                                                                                                
BILL: SB  23                                                                                                                  
SHORT TITLE: TAXES & CREDIT:FILM/OIL & GAS/GAS STORAGE                                                                          
SPONSOR(s): SENATOR(s) ELLIS                                                                                                    
                                                                                                                                
01/19/11       (S)       PREFILE RELEASED 1/7/11                                                                                
01/19/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/11       (S)       L&C, FIN                                                                                               
02/17/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/17/11       (S)       Heard & Held                                                                                           
02/17/11       (S)       MINUTE(L&C)                                                                                            
02/22/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/22/11       (S)       Moved SB  23 Out of Committee                                                                          
02/22/11       (S)       MINUTE(L&C)                                                                                            
02/23/11       (S)       L&C RPT  4DP 1NR                                                                                       
02/23/11       (S)       DP: EGAN, DAVIS, PASKVAN, MENARD                                                                       
02/23/11       (S)       NR: GIESSEL                                                                                            
03/21/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/21/11       (S)       Heard & Held                                                                                           
03/21/11       (S)       MINUTE(FIN)                                                                                            
04/04/11       (S)       FIN RPT CS  7DP    NEW TITLE                                                                           
04/04/11       (S)       DP: HOFFMAN, STEDMAN, THOMAS, EGAN,                                                                    
                         MCGUIRE, OLSON, ELLIS                                                                                  
04/04/11       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/04/11       (S)       Moved CSSB  23(FIN) Out of Committee                                                                   
04/04/11       (S)       MINUTE(FIN)                                                                                            
04/06/11       (S)       TRANSMITTED TO (H)                                                                                     
04/06/11       (S)       VERSION: CSSB 23(FIN)                                                                                  
04/07/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/11       (H)       L&C, FIN                                                                                               
04/08/11       (H)       L&C AT 3:15 PM CAPITOL 106                                                                             
04/08/11       (H)       Heard & Held                                                                                           
04/08/11       (H)       MINUTE(L&C)                                                                                            
04/10/11       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/11       (H)       -- MEETING CANCELED --                                                                                 
04/11/11       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/11/11       (H)       Heard & Held                                                                                           
04/11/11       (H)       MINUTE(L&C)                                                                                            
04/12/11       (H)       L&C AT 4:15 PM BARNES 124                                                                              
04/12/11       (H)       Heard & Held                                                                                           
04/12/11       (H)       MINUTE(L&C)                                                                                            
04/13/11       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/13/11       (H)       Moved HCS CSSB  23(L&C) Out of                                                                         
                         Committee                                                                                              
04/13/11       (H)       MINUTE(L&C)                                                                                            
04/14/11       (H)       L&C RPT HCS(L&C) 4DP 2NR 1AM                                                                           
04/14/11       (H)       DP: THOMPSON, HOLMES, MILLER, OLSON                                                                    
04/14/11       (H)       NR: CHENAULT, SADDLER                                                                                  
04/14/11       (H)       AM: JOHNSON                                                                                            
04/15/11       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/15/11       (H)       -- MEETING CANCELED --                                                                                 
04/16/11       (H)       FIN AT 9:30 AM HOUSE FINANCE 519                                                                       
04/16/11       (H)       Heard & Held                                                                                           
04/16/11       (H)       MINUTE(FIN)                                                                                            
02/23/12       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/23/12       (H)       Heard & Held; Assigned to Subcommittee                                                                 
02/23/12       (H)       MINUTE(FIN)                                                                                            
03/22/12       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
03/22/12       (H)       Work Session on above Bill                                                                             
03/28/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
03/28/12       (H)       -- MEETING CANCELED --                                                                                 
03/29/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
03/29/12       (H)       Work Session on above Bill                                                                             
04/02/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
04/02/12       (H)       Work Session on above Bill                                                                             
04/05/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
04/05/12       (H)       Work Session on above Bill                                                                             
04/06/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
04/06/12       (H)       Work Session on above Bill                                                                             
04/09/12       (H)       FIN AT 8:00 AM HOUSE FINANCE 519                                                                       
04/09/12       (H)       Work Session on above Bill                                                                             
04/11/12       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/11/12       (H)       Scheduled But Not Heard                                                                                
04/12/12       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/12/12       (H)       Scheduled But Not Heard                                                                                
04/13/12       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/13/12       (H)       Moved HCS CSSB  23(FIN) Out of                                                                         
                         Committee                                                                                              
04/13/12       (H)       MINUTE(FIN)                                                                                            
04/14/12       (H)       FIN RPT HCS(FIN) NT 3DP 7NR                                                                            
04/14/12       (H)       DP: T.WILSON, GUTTENBERG, JOULE                                                                        
04/14/12       (H)       NR:   FAIRCLOUGH,    NEUMAN,   COSTELLO,                                                               
                         EDGMON, DOOGAN, STOLTZE, THOMAS                                                                        
04/14/12       (H)       FIN AT 9:30 AM HOUSE FINANCE 519                                                                       
04/14/12       (H)       Moved HCS CSSB  23(FIN) Out of                                                                         
                         Committee                                                                                              
04/14/12       (H)       MINUTE(FIN)                                                                                            
04/15/12       (H)       RLS AT 9:00 AM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE CATHY MUNOZ                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the changes embodied in HCS CSSB                                                               
104, Version T.                                                                                                                 
                                                                                                                                
SENATOR HOLLIS FRENCH                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of SB 104.                                                                          
                                                                                                                                
ERIN SHINE, Staff                                                                                                               
Representative Johnson                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As staff to Representative Johnson, chair                                                                
of the House Rules Standing Committee, presented the changes                                                                    
encompassed in Version E.                                                                                                       
                                                                                                                                
DENNY DEWITT, Lobbyist/Alaska Director                                                                                          
National Federation of Independent Business                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of SB 74, expressed concern                                                               
regarding unfunded mandates.                                                                                                    
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 23.                                                                                         
                                                                                                                                
JANE PIERSON, Staff                                                                                                             
Representative Steve Thompson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Reviewed the changes embodied in HCS CSSB                                                                
23, Version UU.                                                                                                                 
                                                                                                                                
JERRY LAVINE, Owner/Operator                                                                                                    
Connections Film & Video                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Encouraged the committee to table SB 23.                                                                 
                                                                                                                                
MARK BRINSTER, Film Professional                                                                                                
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in opposition to SB 23.                                                                        
                                                                                                                                
LAWRENCE GOLDIN                                                                                                                 
Aurora Films                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Expressed concerns with SB 23.                                                                           
                                                                                                                                
BOB CROCKETT                                                                                                                    
Alaska Film Group                                                                                                               
POSITION  STATEMENT:   Encouraged  the committee  to  move SB  23                                                             
forward.                                                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:04:11 AM                                                                                                                    
                                                                                                                                
CHAIR  CRAIG JOHNSON  called the  House Rules  Standing Committee                                                             
meeting to  order at 9:04  a.m. Representatives  Olson, Chenault,                                                               
Austerman, Gruenberg, Tuck, and Johnson  were present at the call                                                               
to order.                                                                                                                       
                                                                                                                                
           SB 104-MANUFACTURED HOMES AS REAL PROPERTY                                                                       
                                                                                                                                
9:04:38 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  announced that the  first order of  business would                                                               
be  CS  FOR  SENATE  BILL  NO.  104(JUD),  "An  Act  relating  to                                                               
manufactured  homes,  including  manufactured  homes  permanently                                                               
affixed to land, to the  conversion of manufactured homes to real                                                               
property,  to  the  severance of  manufactured  homes  from  real                                                               
property,  to   the  titling,  conveyance,  and   encumbrance  of                                                               
manufactured homes, and to  manufacturers' certificates of origin                                                               
for vehicles; and providing for an effective date."                                                                             
                                                                                                                                
9:04:44 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  moved to  adopt HCS  CSSB 104,  Version 27-                                                               
LS0467\T, Bannister, 4/14/12, as the working document.                                                                          
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
9:05:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CATHY  MUNOZ, Alaska  State Legislature,  began by                                                               
acknowledging  the presence  of the  sponsor of  SB 104,  Senator                                                               
Hollis French.  She explained  that the language added in Version                                                               
T addresses  the tax  deferral option  to municipalities  for the                                                               
increased value of  property due to its  subdivision.  Currently,                                                               
when a developer subdivides property  and the paperwork is filed,                                                               
the property  assessment is recalculated.   The  recalculation is                                                               
sometimes at a  rate 5-10 times greater  than the pre-application                                                               
amount.    Therefore,  the  language in  Version  T  would  allow                                                               
municipalities  the option  to defer  that additional  tax burden                                                               
for  up  to   10  years  or  when  the  lot   is  sold  or  after                                                               
construction.   This  new language  is included  in the  title as                                                               
well as in  Section 22 on pages  13-14.  Section 32  of Version T                                                               
includes severability language on page 22.                                                                                      
                                                                                                                                
9:06:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ, in  response to  Representative Gruenberg,                                                               
confirmed that the new language in SB  104 is the same as that of                                                               
HB 264, which she sponsored.                                                                                                    
                                                                                                                                
9:08:14 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON invited public testimony.                                                                                         
                                                                                                                                
9:08:27 AM                                                                                                                    
                                                                                                                                
SENATOR HOLLIS FRENCH, Alaska State  Legislature, speaking as the                                                               
sponsor  of  SB  104,  related his  agreement  with  the  changes                                                               
encompassed in Version T.                                                                                                       
                                                                                                                                
9:08:59 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON,  upon determining no  one else wished  to testify,                                                               
closed public  testimony.  He  then announced that HCS  CSSB 104,                                                               
Version T, was before the committee.                                                                                            
                                                                                                                                
[Chair  Johnson's objection  to  the adoption  of  Version T  was                                                               
treated as withdrawn.]                                                                                                          
                                                                                                                                
9:09:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  moved to report  HCS CSSB 104,  Version 27-                                                               
LS0467\T, Bannister,  4/14/12, out  of committee  with individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection, HCS  CSSB  104(RLS) was  reported  from the  House                                                               
Rules Standing Committee.                                                                                                       
                                                                                                                                
            SB  74-AUTISM: INS. COVERAGE, TASK FORCE                                                                        
9:09:37 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  next order of business would be                                                               
SENATE  BILL NO.  74, "An  Act requiring  insurance coverage  for                                                               
autism   spectrum   disorders,    describing   the   method   for                                                               
establishing a  covered treatment  plan for those  disorders, and                                                               
defining  the   covered  treatment   for  those   disorders;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
9:09:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  moved to  adopt  HCS  SB 74,  Version  27-                                                               
LS0443\E, Bailey, 4/14/12, as the working document.                                                                             
                                                                                                                                
CHAIR JOHNSON objected.                                                                                                         
                                                                                                                                
9:10:02 AM                                                                                                                    
                                                                                                                                
ERIN   SHINE,  Staff,   Representative   Johnson,  Alaska   State                                                               
Legislature, reviewed the  changes encompassed in Version  E.  In                                                               
Version   E  on   page   1,  lines   10-11,   the  language   "or                                                               
psychologist," was  replaced with  the language  ", psychologist,                                                               
or  advanced nurse  practitioner,".    On page  1,  line 13,  the                                                               
language "may include" is replaced  with the language "includes".                                                               
On page 2,  line 3, the language "necessary  to develop, restore,                                                               
or  maintain the  functioning  of an  individual  to the  maximum                                                               
extent   practicable"  was   moved   from   following  the   term                                                               
"therapies"   to   following   the    term   "programs".      The                                                               
aforementioned  change clarifies  that  the  standard applies  to                                                               
both   applied  behavior   analysis  and   structural  behavioral                                                               
therapies.   On page 2,  lines 25-28,  a new subsection  (c) that                                                               
exempts a business with 20  employees or less from being required                                                               
to provide autism  insurance coverage is added.  On  page 2, line                                                               
29 through  page 3, line  3, a new  subsection (d) is  added that                                                               
specifies that employers with 21-25  employees may be exempt from                                                               
being  required to  provide autism  insurance coverage  when they                                                               
demonstrate   that  the   increases  to   their  premium   for  a                                                               
consecutive 12-month period is greater than 3 percent.                                                                          
                                                                                                                                
9:12:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG posed a scenario  in which a company has                                                               
health insurance with company A and  it will increase more than 3                                                               
percent,  but the  company could  obtain health  insurance for  a                                                               
cost less than  3 percent from another company.   He asked, "Will                                                               
they be able to  get out under this or is there a  duty to try to                                                               
get insurance that would meet the requirement?"                                                                                 
                                                                                                                                
CHAIR JOHNSON  said there is  no duty to  do so, but  opined that                                                               
any prudent  businessman would seek  a cheaper  insurance policy.                                                               
He  highlighted  that  [the  legislature]   is  trying  to  avoid                                                               
mandates on private businesses.                                                                                                 
                                                                                                                                
9:13:06 AM                                                                                                                    
                                                                                                                                
MS. SHINE,  continuing her review  of the changes  encompassed in                                                               
Version E, directed  attention to page 3, line  8, following "or"                                                               
the  term "has"  was  inserted.   On  page  3,  lines 23-24,  the                                                               
language  ",  psychologist,   or  advanced  nurse  practitioner,"                                                               
replaces the language "or psychologist".   On page 4, line 7, the                                                               
enactment  date  has  been  changed from  "January  1,  2012"  to                                                               
"January 1,  2013".  In  Section 3, the immediate  effective date                                                               
under AS 01.10.070(c) to January 1, 2013.                                                                                       
                                                                                                                                
9:14:12 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON invited public testimony.                                                                                         
                                                                                                                                
9:14:39 AM                                                                                                                    
                                                                                                                                
DENNY  DEWITT, Lobbyist/Alaska  Director, National  Federation of                                                               
Independent Business,  stated that while the  National Federation                                                               
of Independent Business appreciates  the movement the legislation                                                               
makes,  unfunded mandates  are merely  that -  unfunded mandates.                                                               
While the  membership of the  National Federation  of Independent                                                               
Business appreciates  the efforts, particularly that  a number of                                                               
the more fragile  businesses in Alaska are  protected, it remains                                                               
a mandate.   In a corporate sense, the legislature  is a board of                                                               
directors  for   the  Alaska  State  corporation.     Mr.  DeWitt                                                               
highlighted that  the legislature  is ignoring its  own personnel                                                               
policies and mandating them to others.                                                                                          
                                                                                                                                
9:15:54 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON,  upon determining no  one else wished  to testify,                                                               
closed public testimony.  He  then announced that the legislation                                                               
was before the committee.                                                                                                       
                                                                                                                                
[Chair Johnson's earlier objection to  the adoption of HCS SB 74,                                                               
Version E, was treated as withdrawn.]                                                                                           
                                                                                                                                
9:16:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to  report HCS  SB  74, Version  27-                                                               
LS0443\E,  Bailey,  4/14/12,  out of  committee  with  individual                                                               
recommendations and the accompanying fiscal  notes.   There being                                                               
no objection,  HCS SB 74(RLS)  was reported from the  House Rules                                                               
Standing Committee.                                                                                                             
                                                                                                                                
        SB  23-TAXES & CREDIT:FILM/OIL & GAS/GAS STORAGE                                                                    
                                                                                                                                
9:16:49 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  next order of business would be                                                               
CS FOR SENATE BILL NO.  23(FIN), "An Act relating to transferable                                                               
film  production  tax  credits  and film  production  tax  credit                                                               
certificates; requiring  the legislative audit division  to audit                                                               
the Alaska  film production incentive program;  and providing for                                                               
an effective date by amending the  effective dates of secs. 3 and                                                               
4, ch. 63, SLA 2008."                                                                                                           
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
9:17:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to adopt  HCS CSSB  23, Version  27-                                                               
LS0252\UU, Bullock, 4/14/12, as the working document.                                                                           
                                                                                                                                
CHAIR JOHNSON objected for purposes of discussion.                                                                              
                                                                                                                                
9:18:03 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STEVE   THOMPSON,  Alaska   State   Legislature,                                                               
explained that  Version UU  is about  policy and  SB 23  is about                                                               
incenting the issues that are  important to Alaskans and good for                                                               
the state.   These incentives, which are found in  SB 23, HB 289,                                                               
SB 153,  HB 276, and SB  145 have been thoroughly  vetted in both                                                               
bodies  by many  committees.     Furthermore, votes  on both  the                                                               
House and the Senate floors  have been overwhelmingly in favor of                                                               
these  incentives.   Senate Bill  23, he  opined, will  encourage                                                               
commerce  via credits  for the  film  industry, new  oil and  gas                                                               
exploration in  unexplored regions, and the  commercialization of                                                               
natural  gas   to  Alaskans  and  quite   possibly  by  Alaskans.                                                               
Although SB  23 won't answer  all the issues the  legislature set                                                               
out  to  solve  this  year,   it  will  move  Alaska  forward  by                                                               
encouraging  industry,  development,   and  hope  to  communities                                                               
experiencing  the   strain  of   Alaska's  energy  drain.     The                                                               
aforementioned will  open the way for  new resources, exploration                                                               
that will  benefit the bottom  line of the  state as well  as the                                                               
people of Alaska.  In  closing, Representative Thompson expressed                                                               
hope  that next  year  the  same could  be  done  for the  legacy                                                               
fields.                                                                                                                         
                                                                                                                                
9:19:45 AM                                                                                                                    
                                                                                                                                
JANE PIERSON, Staff, Representative  Steve Thompson, Alaska State                                                               
Legislature,  informed  the  committee   that  Version  UU  is  a                                                               
compilation of SB 23, as it  left the House Finance Committee; HB                                                               
289, as it passed  the House; and HB 276, as  it left the Senate.                                                               
She  noted  that  there  is  a  fiscal  note  from  Lennie  Dees,                                                               
Department  of  Revenue,  and an  explanation  from  Roger  Marks                                                               
regarding  what the  Senate did.    She related  that the  Senate                                                               
added  a  new  section,  AS 43.55.162,  entitled  "Adjustment  to                                                             
production  tax value  for increasing  oil  and gas  production."                                                             
This section  incentivizes certain  qualifying new  production by                                                               
reducing the production tax value  for production from a lease or                                                               
property north of the 68th degree  latitude that as of January 1,                                                               
2008,  wasn't within  a unit  or in  commercial production  by 30                                                               
percent of  the gross value  at the  point of production  for the                                                               
first  10   consecutive  years  after  the   start  of  sustained                                                               
production.   The  adjusted production  tax value  is the  amount                                                               
upon  which the  base tax  rate  and progressivity  tax index  is                                                               
applied  to determine  the producer's  production tax  liability.                                                               
The  legislation  also  makes  the   appropriate  changes  to  AS                                                               
43.55.011(e)(1) and (g)  to reflect the change  in production tax                                                               
calculations  for the  reduction in  production tax  value.   Ms.                                                               
Pierson then  related that Mr.  Marks described the  new addition                                                               
by  the Senate  as follows:   "This  proposal uses  the same  tax                                                               
rates  for [Alaska's  Clear and  Equitable Share]  ACES with  the                                                               
gross value  reduced by 30 percent  for new fields for  the first                                                               
10 years.  Thus,  the nominal tax rate is the  same as for ACES."                                                               
She then  highlighted that there is  also a change in  Version UU                                                               
such  that the  new  production allowance  will apply  everywhere                                                               
outside of Cook Inlet.   Therefore, Middle Earth would fall under                                                               
this new tax rate after its own provision expires.                                                                              
                                                                                                                                
9:22:26 AM                                                                                                                    
                                                                                                                                
MS. PIERSON,  in response  to Chair  Johnson, clarified  that the                                                               
legislation  passed  the  Senate  with  the  north  of  the  68th                                                               
latitude language.   The legislation was  changed [within Version                                                               
UU] such  that it  referred to  outside of  Cook Inlet,  and thus                                                               
Middle Earth would also apply.                                                                                                  
                                                                                                                                
9:22:56 AM                                                                                                                    
                                                                                                                                
JERRY LAVINE, Owner/Operator, Connections  Film & Video, informed                                                               
the  committee that  he  testified  against SB  23  in the  House                                                               
Finance Subcommittee.   He related that his main  concern was for                                                               
Alaska businesses and competition.   While he favors the generous                                                               
support for  Alaska hire that  the bill  provides - trading  a $1                                                               
tax  credit for  a $1  of Alaska  resident hire  - Representative                                                               
Costello and the  subcommittee should be praised  for looking out                                                               
for  the  best  interests  of   Alaska  residents.    Mr.  LaVine                                                               
explained that during  his previous testimony he  referred to the                                                               
term  pass-through in  which a  producer may  use a  local Alaska                                                               
vendor to pass-through expenses that are actually made out-of-                                                                  
state  to  non-Alaskan  businesses.    Examples  of  out-of-state                                                               
expenses  include  cameras,  lights,   and  autos  for  catering,                                                               
portable  makeup,  et  cetera.    Further  examples  include  the                                                               
shipping expenses  to and from  the state  as well as  the travel                                                               
expenses for  out-of-state residents.  The  pass-through loophole                                                               
wasn't closed  and makes  it difficult  for Alaska  businesses to                                                               
compete against  non-Alaska business.  He  informed the committee                                                               
that  Washington State  closed its  pass-through loophole  to the                                                               
extent that  they used language  specifying that  even Washington                                                               
vendors may not  rent or purchase supplies outside  the state for                                                               
the purposes of  qualifying for the incentive or tax  nexus.  Mr.                                                               
LaVine  ran  some numbers  using  "The  Big Miracle"  tax  credit                                                               
application that  was approved by  the state.  Under  Version UU,                                                               
he estimated that "The Big  Miracle" production would qualify for                                                               
a $12.5  million estimated tax  credit whereas under  the current                                                               
legislation  they would  qualify  for $9.6  million.   Therefore,                                                               
"The Big  Miracle" would receive  more tax credits  under Version                                                               
UU.  He expressed concern  that the pass-through is a round-about                                                               
way that allows for the salaries  above the line to still qualify                                                               
for large sums of money.   However, he understood that 65 percent                                                               
of Alaskans  didn't want  to pay for  the salaries  of above-the-                                                               
line  directors, actors,  and producers.    Mr. LaVine  requested                                                               
that the  committee consider tabling SB  23 until next year.   He                                                               
informed the  committee that  Legislative Audit  hasn't completed                                                               
its audit and there is no public study of the program.                                                                          
                                                                                                                                
9:27:00 AM                                                                                                                    
                                                                                                                                
MARK BRINSTER, Film Professional,  informed the committee that he                                                               
has been  a film professional  in Alaska for  over 30 years.   He                                                               
then testified in  opposition to SB 23.  While  Mr. Brinster said                                                               
that he  applauds the efforts  of the House  Finance Subcommittee                                                               
on SB 23  to add incentives for local hire,  he felt the language                                                               
regarding above-line  salaries isn't entirely clear  and [doesn't                                                               
provide]  adequate safeguards  to prevent  Hollywood from  taking                                                               
advantage.  The film industry  is fairly well known for "creative                                                               
accounting."   In  fact, one  court in  California described  the                                                               
film  industry  as  having "the  most  unconscionable  accounting                                                               
practices  in  the  world."     Therefore,  Alaska  needs  to  be                                                               
especially careful  when dealing with Hollywood,  particularly in                                                               
terms of a subsidy program.   He opined that the 2008 legislation                                                               
was  rushed and  received  inadequate debate,  which resulted  in                                                               
numerous loopholes, pass-throughs,  and a disproportionate amount                                                               
of subsidies paying  for nonresident wages.  In  2011, 84 percent                                                               
of  the  wages  that  were  subsidized by  the  program  went  to                                                               
nonresidents.  Mr. Brinster recalled  that there is a legislative                                                               
audit underway and the program  sunsets next year.  Therefore, he                                                               
opined  that  the   matter  should  be  tabled   until  the  next                                                               
legislature when more  will be known, which  will assure Alaskans                                                               
that [the  program] doesn't subsidize Hollywood,  California, but                                                               
rather protects the interests of Alaskans.                                                                                      
                                                                                                                                
9:29:01 AM                                                                                                                    
                                                                                                                                
LAWRENCE GOLDIN,  Aurora Films, began by  informing the committee                                                               
that he has  been producing/making films in Alaska  for nearly 40                                                               
years.   He noted that he  has worked on feature  films that were                                                               
funded by outside  production companies as well  as feature films                                                               
funded from within  Alaska.  He related that he  is probably most                                                               
well-known for  his historical documentaries, the  most recent of                                                               
which was "Statehood".  With regard  to SB 23, he stated that his                                                               
main interest  is to see  that the Alaska film  industry benefits                                                               
from these  subsidies.  He then  said that much credit  is due to                                                               
Representative  Costello and  the  subcommittee  for inserting  a                                                               
provision   that  would   allow   above-the-line  functions   for                                                               
directors, writers,  principle actors, and producers  who qualify                                                               
as  state residents.    This  legislation would  allow  up to  50                                                               
percent  of the  salaries of  those Alaskans  to qualify  for tax                                                               
incentives, as  it's the  only way in  which Alaskans  will reach                                                               
the ability  to own  media productions so  that the  profits from                                                               
the   media  productions   stay   in  the   state.     When   the                                                               
aforementioned  occurs,   the  private  sector  in   Alaska  will                                                               
increase  its   capital  and   be  able   to  better   invest  in                                                               
infrastructure, crew training, and  future productions.  However,                                                               
he expressed  concern with the  cap on incentives for  those same                                                               
categories  of professionals  if  they  aren't Alaska  residents.                                                               
The  testimony in  prior committees  has related  how that  might                                                               
dampen out-of-state  investments in Alaska.   The 5  percent cap,                                                               
he opined,  is low  and could  have a  detrimental impact  in the                                                               
long-term.  Mr. Goldin explained  that although he wants Alaskans                                                               
to own media productions and  participate as employees as much as                                                               
possible,  it  will take  time  for  that  to  develop.   In  the                                                               
meantime,  the  most  readily available  source  of  capital  for                                                               
improving the film  industry and obtaining more jobs  will be the                                                               
nonresident  producers.    He then  expressed  concern  with  the                                                               
makeup  and  functions  of  the film  commission  that  would  be                                                               
empowered  to evaluate  and pass  judgment on  the worthiness  of                                                               
projects for the tax incentives.   The aspects of SB 23 that have                                                               
to do with  approving projects based on whether  the projects are                                                               
perceived  as  being  in  the  best interest  of  Alaska  can  be                                                               
problematic.     The   film  commission   is  composed   of  four                                                               
commissioners   of  state   departments,   which  are   political                                                               
appointees  who will  be very  cautious.   The interpretation  of                                                               
best  interest, best  financial  interest of  the  state is  very                                                               
nebulous.  In fact, he expressed  concern that some of the recent                                                               
films produced  in Alaska  might not have  passed muster  to that                                                               
type  of  judgment.    For example,  the  film  "Everybody  Loves                                                               
Whales"  includes some  controversial remarks  regarding the  oil                                                               
industry in Alaska.  The  film "On Frozen Ground", which portrays                                                               
the misadventures of  an Alaskan, could have  been determined not                                                               
to  be   appropriate.    He   emphasized  that  people   who  are                                                               
hypersensitive to the  content of films could veto  any number of                                                               
projects.   At the  very least, Mr.  Goldin suggested  that other                                                               
members  be added  to the  proposed film  commission, those  with                                                               
longer term perspectives  or vision such as  individuals from the                                                               
State Council  of the Arts,  the Humanities Forum, or  staff from                                                               
the film  department from  the University  of Alaska  Fairbank or                                                               
the  journalism   department  from   the  University   of  Alaska                                                               
Anchorage.  He  opined that for the artistic  process some leeway                                                               
is required to  allow one to express him/herself and  leave it to                                                               
audiences to make reasonable and informed judgment about Alaska.                                                                
                                                                                                                                
9:36:34 AM                                                                                                                    
                                                                                                                                
BOB CROCKETT, acknowledged that SB  23 isn't perfect, but it does                                                               
allow  the  film  industry  to   move  forward.    Therefore,  he                                                               
encouraged the committee  to allow SB 23 to  move forward because                                                               
it allows a tremendous benefit  to Alaskans as it ties above-the-                                                               
line  to  wages  that  are  spent  on  Alaska  wages  and  Alaska                                                               
business.                                                                                                                       
                                                                                                                                
9:37:10 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON,  upon determining no  one else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
9:37:20 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 9:37 a.m. to 9:40 a.m.                                                                       
                                                                                                                                
9:40:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT  moved Conceptual Amendment 1  that would                                                               
delete Section 18.                                                                                                              
                                                                                                                                
CHAIR JOHNSON objected for purposes of discussion.                                                                              
                                                                                                                                
REPRESENTATIVE  CHENAULT clarified  that  Conceptual Amendment  1                                                               
would remove Section 18 and any references to it.                                                                               
                                                                                                                                
9:41:06 AM                                                                                                                    
                                                                                                                                
MS. PIERSON  explained that Conceptual  Amendment 1  would remove                                                               
the 30  percent gross tax  allowance that was  put into SB  23 by                                                               
the  Senate.   That allowance  applies to  above the  68th degree                                                               
parallel.   Therefore, the [adoption  of Conceptual  Amendment 1]                                                               
would only leave  an oil and gas tax advantage  for Middle Earth.                                                               
In response  to Chair Johnson,  Ms. Pierson explained  that above                                                               
the 68th parallel refers to the North Slope.                                                                                    
                                                                                                                                
9:41:51 AM                                                                                                                    
                                                                                                                                
CHAIR  JOHNSON surmised  then that  [the  adoption of  Conceptual                                                               
Amendment 1] would result in the  removal of the North Slope from                                                               
the proposed tax exemption.                                                                                                     
                                                                                                                                
MS. PIERSON  pointed out that the  tax allowance can be  found in                                                               
the proposed AS 43.55.162, Section 18.                                                                                          
                                                                                                                                
CHAIR JOHNSON  related his understanding  that the  [inclusion of                                                               
Section  18] was  an  oversight  and was  never  intended by  the                                                               
sponsor.  He  then thanked Representative Chenault  and his staff                                                               
for catching the mistake.                                                                                                       
                                                                                                                                
9:42:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK   asked  if  [the  adoption   of  Conceptual                                                               
Amendment 1] would  remove the North Slope from  the proposed tax                                                               
exemptions.                                                                                                                     
                                                                                                                                
MS. PIERSON replied yes.                                                                                                        
                                                                                                                                
9:42:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  surmised then,  "If we didn't  have it,                                                               
then all Middle Earth would be  removed.  You just want to remove                                                               
the North Slope."                                                                                                               
                                                                                                                                
MS. PIERSON  replied no, and  added that there are  two different                                                               
issues.  This adjustment on the  North Slope was directed just to                                                               
the North Slope and Middle Earth was addressed as Middle Earth.                                                                 
                                                                                                                                
9:43:16 AM                                                                                                                    
                                                                                                                                
CHAIR  JOHNSON related  his understanding  that [the  adoption of                                                               
Conceptual Amendment  1] will  remove the  North Slope  [from the                                                               
proposed tax exemptions].                                                                                                       
                                                                                                                                
9:43:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TUCK  recalled   that  Ms.   Pierson  originally                                                               
specified that Version UU included HB  289, HB 276 as passed from                                                               
the Senate, and Section 18.  He asked if that's correct.                                                                        
                                                                                                                                
MS.  PIERSON responded  yes,  but stated  that  the inclusion  of                                                               
Section 18 was a drafting error.                                                                                                
                                                                                                                                
9:44:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  recalled  that  Ms. Pierson  did  speak  on                                                               
behalf  of Section  18 as  if Representative  Thompson added  the                                                               
language.                                                                                                                       
                                                                                                                                
MS. PIERSON  acknowledged that she  did speak to Section  18, but                                                               
didn't  realize  that it  was  actually  in the  legislation  and                                                               
should be removed.                                                                                                              
                                                                                                                                
CHAIR JOHNSON  interjected that any complaints  regarding why and                                                               
how  Section 18  was included  should be  directed to  him as  he                                                               
introduced [Version UU].                                                                                                        
                                                                                                                                
REPRESENTATIVE  TUCK clarified  that he  was trying  to determine                                                               
whether the inclusion of Section 18 was really a mistake.                                                                       
                                                                                                                                
CHAIR JOHNSON further  interjected that it was  clearly a mistake                                                               
and again thanked Representative Chenault for catching it.                                                                      
                                                                                                                                
9:44:59 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  withdrew his objection to  Conceptual Amendment 1.                                                               
There  being no  further  objection, Conceptual  Amendment 1  was                                                               
adopted.                                                                                                                        
                                                                                                                                
9:45:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GRUENBERG  informed   the  committee   that  his                                                               
recommendation  will  be  to  amend   for  reasons  that  he  has                                                               
discussed with the chair.                                                                                                       
                                                                                                                                
CHAIR JOHNSON withdrew  his objection to the  adoption of Version                                                               
UU, as amended.                                                                                                                 
                                                                                                                                
9:46:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to report  HCS CSSB 23, Version UU, as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the accompanying  fiscal notes.   There  being no  objection, HCS                                                               
CSSB  23(RLS)   was  reported  from  the   House  Rules  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
9:46:20 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
CHAIR  JOHNSON recessed  to  a call  of the  chair  at 9:46  a.m.                                                               
[This meeting did not reconvene.]                                                                                               

Document Name Date/Time Subjects
SB 23 Version UU.pdf HRLS 4/15/2012 9:00:00 AM
SB 23
SB 74 Version E.pdf HRLS 4/15/2012 9:00:00 AM
SB 74
SB 104 Version T.pdf HRLS 4/15/2012 9:00:00 AM
SB 104
SB 104 v.T Leg Legal Memo 4.14.12.pdf HRLS 4/15/2012 9:00:00 AM
SB 104