04/15/2024 06:00 PM House WAYS & MEANS
| Audio | Topic |
|---|---|
| Start | |
| HB109 | |
| HB277 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 109 | TELECONFERENCED | |
| += | HB 277 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
April 15, 2024
6:03 p.m.
MEMBERS PRESENT
Representative Ben Carpenter, Chair
Representative Jamie Allard
Representative Tom McKay
Representative Kevin McCabe
Representative Cathy Tilton
Representative Andrew Gray
Representative Cliff Groh
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 109
"An Act reducing the corporate net income tax rate; and
providing for an effective date."
- MOVED CSHB 109(W&M) OUT OF COMMITTEE
HOUSE BILL NO. 277
"An Act relating to occupational licensing; and providing for an
effective date."
- MOVED CSHB 277(W&M) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 109
SHORT TITLE: REDUCE CORP. NET INCOME TAX RATE
SPONSOR(s): REPRESENTATIVE(s) CARPENTER
03/13/23 (H) READ THE FIRST TIME - REFERRALS
03/13/23 (H) W&M, FIN
03/22/23 (H) W&M AT 6:00 PM DAVIS 106
03/22/23 (H) Scheduled but Not Heard
03/27/23 (H) W&M AT 6:00 PM DAVIS 106
03/27/23 (H) Heard & Held
03/27/23 (H) MINUTE(W&M)
04/12/23 (H) W&M AT 6:00 PM DAVIS 106
04/12/23 (H) Heard & Held
04/12/23 (H) MINUTE(W&M)
04/25/23 (H) W&M AT 6:00 PM DAVIS 106
04/25/23 (H) Heard & Held
04/25/23 (H) MINUTE(W&M)
04/26/23 (H) W&M AT 6:00 PM DAVIS 106
04/26/23 (H) <Bill Hearing Canceled>
05/12/23 (H) W&M AT 6:00 PM DAVIS 106
05/12/23 (H) Scheduled but Not Heard
02/26/24 (H) W&M AT 6:00 PM DAVIS 106
02/26/24 (H) Scheduled but Not Heard
04/03/24 (H) W&M AT 6:00 PM DAVIS 106
04/03/24 (H) Heard & Held
04/03/24 (H) MINUTE(W&M)
04/10/24 (H) W&M AT 6:00 PM DAVIS 106
04/10/24 (H) -- MEETING CANCELED --
04/15/24 (H) W&M AT 6:00 PM DAVIS 106
BILL: HB 277
SHORT TITLE: LICENSING RECIPROCITY; FEES
SPONSOR(s): WAYS & MEANS
01/18/24 (H) READ THE FIRST TIME - REFERRALS
01/18/24 (H) W&M, L&C, FIN
03/20/24 (H) W&M AT 6:00 PM DAVIS 106
03/20/24 (H) -- MEETING CANCELED --
03/27/24 (H) W&M AT 6:00 PM DAVIS 106
03/27/24 (H) <Bill Hearing Canceled>
04/03/24 (H) W&M AT 6:00 PM DAVIS 106
04/03/24 (H) Heard & Held
04/03/24 (H) MINUTE(W&M)
04/10/24 (H) W&M AT 6:00 PM DAVIS 106
04/10/24 (H) -- MEETING CANCELED --
04/15/24 (H) W&M AT 6:00 PM DAVIS 106
WITNESS REGISTER
DONNA ARDUIN, Staff
Representative Ben Carpenter
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke to Amendment 2 to HB 277, Version B,
on behalf of the bill sponsor, the House Special Committee on
Ways and Means.
ACTION NARRATIVE
6:03:22 PM
CHAIR BEN CARPENTER called the House Special Committee on Ways
and Means meeting to order at 6:03 p.m. Representatives McKay,
McCabe, Groh, Allard, Gray, and Carpenter were present at the
call to order. Representative Tilton arrived as the meeting was
in progress.
HB 109-REDUCE CORP. NET INCOME TAX RATE
6:04:11 PM
CHAIR CARPENTER announced that the first order of business would
be HOUSE BILL NO. 109, "An Act reducing the corporate net income
tax rate; and providing for an effective date."
6:04:20 PM
CHAIR CARPENTER moved to adopt Amendment 1 to HB 109, labeled
33-LS0376\A.1, Nauman, 3/30/24, which read as follows:
Page 2, line 25:
Delete "2024"
Insert "2025"
Page 2, line 26:
Delete "2024"
Insert "2025"
REPRESENTATIVE MCCABE objected for the purpose of discussion.
CHAIR CARPENTER spoke to Amendment 1. He said it changes the
date of applicability and the effective date. He explained it
is a technical change; the bill was brought forward in 2023, and
Amendment 1 would update it.
REPRESENTATIVE MCCABE removed his objection. There being no
further objection, Amendment 1 was adopted.
6:05:24 PM
REPRESENTATIVE GROH expressed appreciation for the work that the
committee is doing to address the state's deficit. He reviewed
that HB 109, as amended, would reduce the state's revenues by
$128 million. He opined that without any proposals to increase
revenue, the proposed legislation is "irresponsible, misguided,
and shortsighted." He named public services, including
education, transportation, and public safety as those essential
services needed by Alaskans. He said HB 109, as amended, would
go in a direction opposite to the recommendations of the Fiscal
Policy Working Group, as well as "the direction recommended by
... essentially every other expert that has looked at this
problem of what we need," which includes revenues, a spending
cap, further protection of the permanent fund, and
constitutionalization of the permanent fund dividend (PFD). He
spoke about the recommendation of the aforementioned Fiscal
Policy Working Group and about raising the base student
allocation (BSA). He brought up other legislation that he
indicated would have better addressed the state's financial
situation. He concluded that HB 109, as amended, is "exactly
the wrong way to go," and he stated he would vote against moving
the bill out of committee.
6:12:17 PM
REPRESENTATIVE MCCABE posited that [that which was listed by
Representative Groh] is "a whole lot to put on a two-page bill
that deals with corporate tax rate." He spoke about deciding
what to charge corporations based on which decision would
benefit the state most. He talked about the resiliency of
having more corporations charged $50 a piece, maintaining that
that is better than just having one corporation at $100. He
said Alaska is the third-highest in the nation [in taxes charged
corporations], which he indicated means it is "the third-worst
place to ... open up a business." He countered the argument
that leaving the number of businesses as is rather than
[incentivizing more to do business in the state by taxing them
at a lower rate] is nonsensical. Not doing so will increase the
outmigration that has been an issue for a decade, he warned. He
concluded by emphasizing his support of HB 109, as amended.
6:14:49 PM
REPRESENTATIVE GRAY stated he would not support the proposed
legislation. He included in his comments his appreciation that
Chair Carpenter is "a patient, fair, and kind chair" who allows
for disagreement. He opined that the state cannot afford to
lose $300 million in revenue and reiterated that he would be "a
no vote."
6:15:13 PM
REPRESENTATIVE MCKAY expressed his take on HB 109, as amended,
is that if it would promote additional gas production in Cook
Inlet, he would support it. He said the state needs all the
socio-economic, positive benefits that would result from that.
6:15:54 PM
CHAIR CARPENTER said he appreciates the opposition and
recognized that some prevailing thoughts in the legislature
support an increase in taxes and/or taking money from the PFD.
He said he respectfully disagrees. He said stimulating economic
activity and creating jobs through that activity is what matters
to Alaskans - "more outside this building than it matters inside
this building." He said he does not concur with the statement
that every expert agrees that income taxes must remain high in
order for governments to be funded or that corporate income tax
reductions are not good for economic growth. Conversely, he
said the evidence is clear that reducing taxes on businesses
results in economic growth. He said the topic of economic
stimulation is something the legislature needs to consider,
which is why he thinks it is important to move HB 109, as
amended, out of committee so that the rest of the legislative
body can consider it among other plans that are being proposed.
He said while he did his best to adhere to "a fair model of
reform" in response to the Fiscal Policy Working Group
recommendations, he is not limited to those recommendations. He
stated, "I feel that a tax restructuring - a spending
restructuring - that includes tax cuts in one area and new
sources of revenue in a different area is fully in keeping with
recommendations that want to see economic activity." He advised
that HB 109, as amended, could be part of an overall solution.
6:18:31 PM
REPRESENTATIVE MCCABE moved to report HB 109, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes.
6:18:47 PM
REPRESENTATIVE GROH objected.
6:18:49 PM
A roll call vote was taken. Representatives McKay, McCabe,
Tilton, Allard, and Carpenter voted in favor of the motion to
report HB 109, as amended, out of committee with individual
recommendations and the accompanying fiscal notes.
Representatives Groh and Gray voted against it. Therefore, CSHB
109(W&M) was reported out of the House Special Committee on Ways
and Means by a vote of 5-2.
6:19:29 PM
The committee took a brief at-ease.
6:19:53 PM
CHAIR CARPENTER noted that with passage of CSHB 109(W&M), the
committee would give Legislative Legal Services the authority to
make any necessary technical and conforming changes.
6:20:02 PM
The committee took an at-ease from 6:20 p.m. to 6:22 p.m.
HB 277-LICENSING RECIPROCITY; FEES
6:22:55 PM
CHAIR CARPENTER announced that the final order of business would
be HOUSE BILL NO. 277, "An Act relating to occupational
licensing; and providing for an effective date." [Before the
committee, adopted as a working document on 4/3/24, was the
proposed committee substitute (CS) for HB 277, Version 33-
LS0905\B, Gunther, 3/7/24 ("Version B").]
6:23:16 PM
CHAIR CARPENTER opened public testimony on HB 277, Version B.
After ascertaining there was no one who wished to testify, he
closed public testimony.
6:23:50 PM
CHAIR CARPENTER announced the committee would entertain
amendments.
6:23:57 PM
REPRESENTATIVE GRAY moved to adopt Amendment 1 to HB 277,
Version B, labeled 33-LS0905\B.2, Gunther, 4/6/24, which read as
follows:
Page 1, lines 3 - 4:
Delete "relating to collection agencies;"
Page 9, line 30, through page 14, line 10:
Delete all material.
Renumber the following bill sections accordingly.
Page 25, line 24, through page 26, line 1:
Delete all material.
Renumber the following bill sections accordingly.
Page 27, lines 13 - 15:
Delete "AS 08.24.045, 08.24.090(b)(7),
08.24.090(c), 08.24.100, 08.24.110, 08.24.120,
08.24.130, 08.24.135, 08.24.140(a), 08.24.150,
08.24.160, 08.24.170, 08.24.190, 08.24.200, 08.24.230,
08.24.240, 08.24.290, 08.24.310, 08.24.370;"
Page 27, line 24:
Delete "AS 12.62.400(a)(4);"
CHAIR CARPENTER objected for the purpose of discussion.
REPRESENTATIVE GRAY spoke to Amendment 1. He explained that it
would delete all language related to collection agencies. He
noted that the fee is "a mild" $175 and the "paperwork burden"
is not too extensive. Not having a collection agency license
can lead to unwanted outcomes. He explained that for most debt
collectors, the motivation to follow the law is the threat of
losing their license. Without that [threat], he warned, they
could misrepresent the nature of debt and/or falsely claim to be
an attorney, among other things. He pointed to New York and
California, both of which he said learned the hard way that
requiring the license of debt collectors is a necessary.
Representative Gray added that the way that the Department of
Commerce, Community & Economic Development (DCCED) funds
investigations of violations is through the license fees it
collects. Without those fees, the department would not have the
budget to be able to "investigate the bad actors." He talked
about the vulnerability of some people to fall for phone call
[scams] perpetrated upon them and the concern of their being no
recourse for those people when they are taken advantage of.
6:26:54 PM
CHAIR CARPENTER removed his objection to Amendment 1.
6:26:56 PM
REPRESENTATIVE MCCABE objected.
6:27:03 PM
A roll call vote was taken. Representatives Groh and Gray voted
in favor of Amendment 1. Representatives Allard, McCabe, McKay,
Tilton, and Carpenter voted against it. Therefore, Amendment 1
failed to be adopted by a vote of 2-5.
6:27:46 PM
CHAIR CARPENTER moved to adopt Amendment 2 to HB 277, Version B,
labeled 33-LS0905\B.1, Gunther, 3/20/24, which read:
Page 6, following line 7:
Insert new bill sections to read:
"* Sec. 4. AS 08.02.130(a) is amended to read:
(a) A health care provider [LICENSED] in this
state may provide health care services within the
health care provider's authorized scope of practice to
a patient in this state through telehealth without
first conducting an in-person visit.
* Sec. 5. AS 08.02.130(c) is amended to read:
(c) If a physician licensed in another state or
a health care provider determines in the course of a
telehealth encounter with a patient under this section
that some or all of the encounter will extend beyond
the physician's or health care provider's authorized
scope of practice, the physician or health care
provider shall advise the patient that the physician
or health care provider is not authorized to provide
some or all of the services to the patient, recommend
that the patient contact an appropriate provider for
the services the physician or health care provider is
not authorized to provide, and limit the encounter to
only those services the physician or health care
provider is authorized to provide. The physician or
health care provider may not charge for any portion of
an encounter that extends beyond the physician's or
health care provider's authorized scope of practice.
* Sec. 6. AS 08.02.130(g) is amended to read:
(g) Except as authorized under (e) and (f) of
this section, a health care provider [LICENSED UNDER
THIS TITLE] may not prescribe, dispense, or administer
through telehealth under this section a controlled
substance listed in AS 11.71.140 - 11.71.190.
* Sec. 7. AS 08.02.130(h) is amended to read:
(h) A physician licensed in another state or a
health care provider may not be required to document a
barrier to an in-person visit to provide health care
services through telehealth. The department or a board
may not limit the physical setting from which a
physician licensed in another state or a health care
provider may provide health care services through
telehealth.
* Sec. 8. AS 08.02.130(i) is amended to read:
(i) Nothing in this section requires the use of
telehealth when a physician licensed in another state
or a health care provider determines that providing
health care services through telehealth is not
appropriate or when a patient chooses not to receive
health care services through telehealth."
Renumber the following bill sections accordingly.
Page 6, line 10:
Delete "(A)"
Insert "[(A)]"
Page 6, lines 18 - 19:
Delete "[A DISPENSING OPTICIAN LICENSED UNDER
AS 08.71;]"
Insert "a dispensing optician as defined in
AS 08.72.274(c) [LICENSED UNDER AS 08.71];"
Page 6, lines 22 - 23:
Delete "or
(B) a physician licensed in another state;"
Insert "[OR
(B) A PHYSICIAN LICENSED IN ANOTHER
STATE;]"
Page 19, lines 29 - 30:
Delete "[A DISPENSING OPTICIAN LICENSED UNDER
AS 08.71;]"
Insert "a dispensing optician as defined in
AS 08.72.274(c) [LICENSED UNDER AS 08.71];"
Page 22, lines 15 - 16:
Delete "[A DISPENSING OPTICIAN LICENSED UNDER
AS 08.71;]"
Insert "a dispensing optician as defined in
AS 08.72.274(c) [LICENSED UNDER AS 08.71];"
6:27:59 PM
DONNA ARDUIN, Staff, spoke to Amendment 2 to HB 277, Version B,
on behalf of the bill sponsor, the House Special Committee on
Ways and Means. She noted that the amendment was recommended by
Legislative Legal Services. She further noted there are three
places in statute where "health care provider" is defined. She
spoke of ensuring that physicians licensed in other states are
included under the requirements of telehealth. She indicated
that the other part of Amendment 2 includes the definition of
health care provider "for purposes of medical malpractice" and
health care provider "for the purposes of medical review
organizations dispensing optics."
REPRESENTATIVE MCCABE removed his objection. There being no
further objection, Amendment 2 was adopted.
6:29:24 PM
REPRESENTATIVE MCCABE moved to report CSHB 277, Version 33-
LS0905\B, Gunther, 3/7/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSSB 277(W&M) was reported out of the
House Special Committee on Ways and Means.
6:30:08 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Ways and Means meeting was adjourned at
6:30 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB0109A.PDF |
HW&M 3/22/2023 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 109 Bill Sponsor Statement.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 109 Sectional analysis.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 109 Presentation.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 277 Amendment 1 HW&M.pdf |
HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Amendment 2 HW&M.pdf |
HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Ver A.PDF |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| CS HB 277 Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Sectional Analysis Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Sponsor Statement Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Presentation.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277-DCCED-CBPL-03-15-24.pdf |
HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277-DOA-DMV-04-11-24.pdf |
HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 109 Amendment 1.pdf |
HW&M 4/15/2024 6:00:00 PM |
HB 109 |