03/17/2015 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing: Commissioner, Alaska Department of Commerce, Community & Economic Development | |
| SB22 | |
| HB70 | |
| SB56 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 22 | TELECONFERENCED | |
| + | HB 70 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 56 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 17, 2015
3:31 p.m.
MEMBERS PRESENT
Senator Click Bishop, Chair
Senator Bert Stedman, Vice Chair
Senator Anna MacKinnon
Senator Dennis Egan
MEMBERS ABSENT
Senator Lyman Hoffman
OTHER MEMBERS PRESENT
Senator Cathy Giessel
COMMITTEE CALENDAR
CONFIRMATION HEARING:
Commissioner-Alaska Department of Commerce, Community, and
Economic Development
Chris Hladick
- CONFIRMATION ADVANCED
SENATE BILL NO. 22
"An Act relating to the collection costs for the municipal motor
vehicle registration tax; and providing for an effective date."
- MOVED SB 22 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 70(RES)
"An Act adding land and water to the Creamer's Field Migratory
Waterfowl Refuge."
- HEARD & HELD
SENATE BILL NO. 56
"An Act adopting the Municipal Property Assessed Clean Energy
Act; authorizing municipalities to establish programs to impose
assessments for energy improvements in regions designated by
municipalities; imposing fees; and providing for an effective
date."
- MOVED SB 56 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 22
SHORT TITLE: MOTOR VEHICLE REG. TAX: COLLECTION COSTS
SPONSOR(s): SENATOR(s) GIESSEL
01/21/15 (S) READ THE FIRST TIME - REFERRALS
01/21/15 (S) CRA, STA, FIN
02/10/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
02/10/15 (S) Heard & Held
02/10/15 (S) MINUTE(CRA)
03/17/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: HB 70
SHORT TITLE: CREAMER'S FIELD REFUGE
SPONSOR(s): REPRESENTATIVE(s) WOOL
01/21/15 (H) READ THE FIRST TIME - REFERRALS
01/21/15 (H) RES
02/11/15 (H) RES AT 1:00 PM BARNES 124
02/11/15 (H) Moved CSHB 70(RES) Out of Committee
02/11/15 (H) MINUTE(RES)
02/13/15 (H) RES RPT CS(RES) 8DP
02/13/15 (H) DP: JOHNSON, JOSEPHSON, HERRON, HAWKER,
SEATON, OLSON, TARR, TALERICO
02/23/15 (H) TRANSMITTED TO (S)
02/23/15 (H) VERSION: CSHB 70(RES)
02/25/15 (S) READ THE FIRST TIME - REFERRALS
02/25/15 (S) CRA, RES
03/17/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
BILL: SB 56
SHORT TITLE: MUNI ENERGY IMPROVEMNT ASSESSEMNTS/BONDS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/18/15 (S) READ THE FIRST TIME - REFERRALS
02/18/15 (S) CRA, FIN
03/12/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
03/12/15 (S) Heard & Held
03/12/15 (S) MINUTE(CRA)
03/17/15 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
CHRIS HLADICK, Commissioner Designee
Alaska Department of Commerce, Community and Economic
Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Addressed questions regarding his
appointment as commissioner.
FORREST WOLFE, Staff
Senator Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview for SB 22.
DANIEL MOORE, City Treasurer
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Supports SB 22. He explained Anchorage's
position on auto taxes going to DMV rather than the
municipality.
AMY ERICKSON, Director
Division of Motor Vehicles (DMV)
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Explained the impact from SB 22 on licensing
fees collected by DMV for municipalities.
REPRESENTATIVE ADAM WOOL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor for HB 70.
DAVID JAMES, Regional Supervisor
Division of Wildlife Conservation
Alaska Department of Fish and Game
Fairbanks, Alaska
POSITION STATEMENT: Announced his availability to answer
questions regarding HB 70.
GENE THERRIAULT, Director
Energy Policy & Outreach
Alaska Energy Authority
Anchorage, Alaska
POSITION STATEMENT: Addressed questions regarding support from
banks for SB 56.
ACTION NARRATIVE
3:31:01 PM
CHAIR CLICK BISHOP called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:31 p.m. Present
at the call to order were Senators Egan, MacKinnon, Stedman, and
Chair Bishop.
^CONFIRMATION HEARING: COMMISSIONER, Alaska DEPARTMENT OF
COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT
CONFIRMATION HEARING:
COMMISSIONER-ALASKA DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC
DEVELOPMENT
3:32:25 PM
CHAIR BISHOP welcomed Commissioner Designee Hladick to the
committee hearing.
3:32:35 PM
CHRIS HLADICK, Commissioner Designee, Alaska Department of
Commerce, Community and Economic Development (DCCED), Juneau,
Alaska. He said he has been a city manager in the state since
1990 and has worked in: Galena, Dillingham, and the last 14
years in Unalaska. He noted his broad experience that dealt
with: fisheries, living in Interior Alaska, running water and
sewer departments, various utilities, projects, schools,
swimming pools, marine projects, Arctic Policy Commission, and
the Northern Waters Task Force. He stated that he is looking
forward to applying his skills to the position.
SENATOR STEDMAN noted that Commissioner Hladick previously had
to address some environmental issues dealing with discharge
compliance.
COMMISSIONER HLADICK explained that in 2004, Unalaska had a
discharge permit for a wastewater treatment plant that was
flawed. He pointed out that the Department of Environmental
Conservation and the Environmental Protection Agency both agreed
that the permit was flawed. He revealed that a federal
enforcement agency ultimately accused Unalaska of violating its
permit that resulted in potential multimillion dollar fines and
a suit that involved the Department of Justice.
3:36:04 PM
SENATOR STEDMAN stated that the committee should support any
person that is willing to go to the federal "pokey" on behalf of
their community.
CHAIR BISHOP thanked Senator Stedman for his comments.
SENATOR MACKINNON noted that a DCCED person has been in place to
resolve issues regarding professional licensees. She asked what
Commissioner Hladick will do in his role as commissioner to help
people who are licensed in the Alaska to be charged a fair price
for their professional licensing fees.
COMMISSIONER HLADICK replied that he has met with some of his
staff about licensing fees and he is committed to try and make
that work.
SENATOR MACKINNON noted that Commissioner Hladick has remarkable
experience in communities across Alaska: Unalaska, Dillingham,
and Galena. She asserted that Commissioner Hladick can do a
really good job understanding how different communities are
effected by many different things. She addressed economic
development and asked what management style or guidance
Commissioner Hladick will provide DCCED in looking at
diversifying Alaska's economy or supporting local communities.
3:38:17 PM
COMMISSIONER HLADICK replied that as a city manager he did a lot
of work on economic development. He noted that he recently
worked with a company to ship fish to Norway. He pointed out
that DCCED is getting the word out about Alaska through tourism
or various companies like Lockheed Martin. He said he
understands work in the villages and asserted that planning
needs to occur with the people rather than for the people in
rural Alaska.
3:39:37 PM
SENATOR EGAN commented that he has known Commissioner Hladick
for many years through his involvement with the Alaska Municipal
League and noted that Commissioner Hladick provided input during
his time in Dillingham. He stated that Commissioner Hladick is
an excellent choice.
CHAIR BISHOP commented that Commissioner Hladick has a great
resume with work experience and education. He appreciated
Commissioner Hladick's broad breadth and depth of his personal
work experience that has a great cross section that fits Alaska
and the people of Alaska well. He asserted that Commissioner
Hladick having experience negotiating with the federal
government is a great thing for the state.
3:41:06 PM
CHAIR BISHOP opened public testimony.
3:41:18 PM
CHAIR BISHOP announced that hearing no request, public testimony
is closed.
3:41:27 PM
CHAIR BISHOP read the following statement:
The committee will recommend that the appointment be
forwarded to a joint session for consideration of
Chris Hladick as Commissioner of the Department of
Commerce, Community, and Economic Development; this
does not reflect an intent by any of the members to
vote for or against the confirmation of the individual
during any further sessions.
3:41:44 PM
At ease
SB 22-MOTOR VEHICLE REG. TAX: COLLECTION COSTS
3:44:02 PM
CHAIR BISHOP announced the consideration of SB 22. He asked that
Mr. Wolfe address questions posed at the previous committee
meeting that included costs to the communities and to the
Division of Motor Vehicles (DMV).
3:44:24 PM
FORREST WOLFE, Staff, Senator Giessel, Alaska State Legislature,
Juneau, Alaska, read the following statement:
Since the inception of the motor vehicle registration
and tax system in 1983, the cost to the state in
collecting municipality taxes has been reduced
considerably while the rate taken off the top by the
state has not. The Motor Vehicle Registration Fees &
Taxes (MVRT) Program was created not as a revenue
sharing program, but was intended to piggyback in a
sense on the activities the state was already
conducting in order to produce revenue for the
municipalities; with this understanding in mind, the
state should only be collecting the added cost it
incurs from the operating the program and not sharing
in the revenues the municipalities receive from their
citizens.
SB 22 proposes to reduce the amount that the state
collects from 8 percent to 5.5 percent in order to
more accurately reflect the amount of work and
resources the state provides to the municipality for
performing this service. This does not impose any new
costs or fees on the state or citizens, it simply
reallocates the collected funds to the cities
themselves. By allowing local governments to keep more
of their own taxes, this revenue is kept closer to the
citizens it was enacted to serve and therefore serves
the people better. With revenue sharing posed to be
reduced in these difficult fiscal times, allowing the
municipalities to retain more of their revenue makes
sense.
3:45:56 PM
CHAIR BISHOP welcomed Senator Cathy Giessel, bill sponsor, to
the committee meeting.
3:47:58 PM
DANIEL MOORE, City Treasurer, Municipality of Anchorage,
Anchorage, Alaska, stated that Anchorage has been losing
$500,000 per year in tax revenue. He said when Anchorage
increased its auto tax rates in 2012, DMV's statutory 8 percent
fixed rate for administering the MVRT Program provided DMV with
an additional $500,000. He detailed that Anchorage accounts for
45 percent of all the vehicles in the state, but since the
change in 2012, Anchorage is paying 59 percent of all of the
costs. He declared that changing DMV's fixed rate to 5.1 percent
would put DMV's administrative charge back to parity. He noted
that Senator Giessel's proposal in SB 22 provides for a 5.5
percent fixed rate, a rate that takes into account wage
increases that DMV may have encountered. He remarked that DMV
has noted in their fiscal note that a 5.5 percent rate will have
no impact on their operational costs. He added that not just
Anchorage, but 16 other communities that have MVRT will benefit
by an additional 3 percent in revenue.
3:52:09 PM
SENATOR MACKINNON asked to confirm that Anchorage accounts for
45 percent of the state's transactions.
MR. MOORE answered correct. He noted that the rate is a
percentage that DMV recently quoted.
SENATOR MACKINNON called upon Amy Erickson and asked if she
agreed with Mr. Moore's assertion that Anchorage accounts for 45
percent of DMV's transactions. She also inquired if the proposed
rate reduction to 5.5 percent would fairly allocate costs across
the state.
3:53:20 PM
AMY ERICKSON, Director, Division of Motor Vehicles (DMV),
Department of Administration, Anchorage, Alaska, replied that
based on DMV's statistics, 45 percent of all of the vehicles in
the state are registered in the Municipality of Anchorage. She
commented that she cannot speak to effects on the other
communities.
SENATOR EGAN noted previous discussions regarding the contract
collectors for DMV licensing. He asked if the contract
collectors are being figured into the licensing fee equation.
MS. ERICKSON replied that strictly DMV and commissioned agents
were taken into account.
SENATOR EGAN asked if the Alaska Trucking Association (ATA) is a
commissioned agent.
MS. ERICKSON answered no. She explained that ATA is considered a
contracting processor.
SENATOR EGAN noted previous legislation for ATA and other
organizations that were trying to collect some kind of revenue
and the bill did not pass. He asked if Ms. Erickson is
interesting in talking with ATA and other organizations. He
conceded that the previous bill was different, but remarked that
the bill was trying to get to the same end result.
3:55:07 PM
MS. ERICKSON replied that the legislation Senator Egan referred
to was slightly different. She detailed that ATA was trying
achieve a commission for DMV processing fees. She specified that
SB 22 relates to the MVRT which DMV collects on behalf of 17
municipalities and then redistributes the fees after retaining 8
percent.
SENATOR EGAN asked to verify that DMV retains 8 percent.
MS. ERICKSON replied that DMV retains 8 percent.
SENATOR EGAN asked how much ATA would retain.
MS. ERICKSON answered that ATA charges a service fee and does
not receive 8 percent of the Motor Vehicle Registration Tax.
SENATOR EGAN asked if ATA's service charge is market driven.
3:56:14 PM
CHAIR BISHOP announced that public testimony is closed.
3:56:26 PM
SENATOR STEDMAN moved to report SB 22, [29-LS0315\A], from
committee with individual recommendations and attached fiscal
note(s).
3:56:34 PM
CHAIR BISHOP announced that without objection, SB 22 moved out
of the Senate Community and Regional Affairs Standing Committee.
3:56:38 PM
At ease
HB 70-CREAMER'S FIELD REFUGE
3:58:05 PM
CHAIR BISHOP called the committee back to order. He announced
the consideration of HB 70.
3:58:28 PM
REPRESENTATIVE ADAM WOOL, Alaska State Legislature, Juneau,
Alaska, sponsor for HB 70, said the bill did come through both
bodies last year and was vetoed by the governor due to the
having an incorrect land description. He stated that the
decision was made to reintroduce the bill with the right
description.
He explained that Creamer's Field is a migratory waterfowl
refuge located near the center of Fairbanks that consists of
four parcels that were purchased by the state many years ago
with the intent of being added to the refuge. He explained that
HB 70 would simply transfer the four parcels from the Department
of Natural Resources over to the Department of Fish and Game. He
noted that the Friends of Creamer's Field is a nonprofit group
that works with the Department of Fish and manages the land as
part of the refuge.
3:59:32 PM
SENATOR EGAN pointed out that the previous legislation's title
for Creamer's Field Refuge was broadened to include an
appropriation for the House of Wickersham located in Juneau.
4:00:08 PM
At ease
4:00:34 PM
CHAIR BISHOP called the committee back to order and announced
that public comment will be taken.
4:01:14 PM
DAVID JAMES, Regional Supervisor, Division of Wildlife
Conservation, Alaska Department of Fish and Game, Fairbanks,
Alaska, announced that he was available to answer questions.
4:01:30 PM
CHAIR BISHOP announced that HB 70 will be held in committee.
SB 56-MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS
4:01:45 PM
CHAIR BISHOP announced the consideration of SB 56.
4:02:12 PM
GENE THERRIAULT, Energy Policy & Outreach Director, Alaska
Energy Authority, Anchorage, Alaska, noted that at the last
hearing there were some questions from committee members on
whether bankers in the state had a position on the bill. He
noted that he had contacted the Alaska Bankers Association (ABA)
last fall on the pending Property Assessed Clean Energy (PACE)
legislation. He referred to a letter from Steve Lundgren,
current ABA president; that indicated support as long as SB 56
has a provision where the business's current mortgage holder
provides permission for PACE financing.
4:03:26 PM
CHAIR BISHOP thanked Mr. Therriault for getting the letter of
assignment into the committee bill packets.
SENATOR EGAN noted his appreciation for Mr. Therriault's work on
getting the issue regarding PACE financing solved and noted that
previous legislation failed.
MR. THERRIAULT replied that PACE financing strictly applies to
businesses and the previous legislation included financing for
residences. He detailed that secondary lending institutions are
still not willing to purchase loan portfolios for residential
properties that have PACE financing.
4:04:55 PM
CHAIR BISHOP asked if there were further questions from the
committee or public.
4:05:20 PM
CHAIR BISHOP closed public comment.
4:05:29 PM
SENATOR STEDMAN moved to report SB 56, [29-GS1021\A], from
committee with individual recommendations and accompanying
fiscal notes.
4:05:38 PM
CHAIR BISHOP announced that without objection, SB 56 moved out
of the Senate Community and Regional Affairs Standing Committee.
4:05:45 PM
At ease
4:07:00 PM
CHAIR BISHOP called the committee back to order.
4:07:35 PM
There being no further business to come before the committee,
Chair Bishop adjourned the Senate Community and Regional Affairs
Standing Committee hearing at 4:07 p.m.