Legislature(1995 - 1996)
05/16/1995 02:10 PM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 16, 1995
2:10 p.m.
TAPES
SFC-95, #75, Side 1 (000-300)
CALL TO ORDER
Senator Rick Halford, Co-chair, convened the meeting at
approximately 2:10 p.m.
PRESENT
Co-chair Halford, along with Senators Phillips, Sharp,
Rieger, and Zharoff were present. Co-chair Frank and
Senator Donley joined shortly after the meeting began.
Also Attending: Tom Dow, Vice President, Princess Tours;
Dennis Poshard, Charitable Gaming; Tom Wright, Legislative
Aide to Ivan Ivan; Bob Bartholomew, Deputy Director, Income
& Excise Audit Division, Dept of Revenue; Susan Taylor,
Fiscal Analyst, Legislative Finance Division; and Jetta
Whittaker, Fiscal Analyst, Legislative Finance Division.
SUMMARY INFORMATION
HB 10 PAYMENT OF COSTS OF DWI ACCIDENTS
Senator Rieger MOVED to adopt SCHB 10 (STA) am with a
individual recommendations and accompanying fiscal
notes.
SCHB 10 (STA) am was REPORTED OUT of committee with a
"do pass" recommendation and 3 zero fiscal notes from
the
Dept of Law; Dept Commerce & Economic Development; and
Dept Public Safety.
HB 269 TAX CREDIT: GIFTS TO PUBLIC BROADCASTING
Tom Wright, Legislative aide to Ivan Ivan gave
testimony
in support of HB 269. Senator Phillips moved to adopt
CS 1. It failed to pass. HB 269 is held for further
discussion.
HB 286 CRUISE SHIP GAMBLING & PROMOTIONS
Tom Dow, Vice President, Princess Tours spoke in
support
of HB 286. Senator Sharp MOVED to adopt Amendment #1
and
was
REPORTED OUT of committee with individual
recommendations
and a zero fiscal note from the Dept of Revenue with a
projected revenue of $500.0
HOUSE BILL NO. 10
"An Act relating to payment for emergency services
responding to certain motor vehicle accidents."
Senator Rieger MOVED to adopt CSHB 10 (STA) am with
individual recommendations and accompanying fiscal notes.
CSHB 10 (STA) am REPORTED OUT of committee with a "do pass"
recommendation and 3 zero fiscal notes from the Dept of Law,
Dept of Commerce and Economic Development, and Dept of
Public Safety.
HOUSE BILL NO. 269
"An Act relating to credits against certain taxes for
contributions to certain public educational radio
and television networks and stations and to
endowments for public educational radio and television
networks; and providing for an effective date."
Tom Wright was invited to join the committee. Senator
Phillips MOVED CS-1. Senator Sharp OBJECTED. Mr. Wright
stated that the CS-1 makes changes in Section 14 and 16.
These sections speak to the tax revenues collected, one-half
against the state, and one-half collected against the
municipalities, under the original bill. This would allow
for a municipality to include the entire amount credited
against taxes collected at the municipality.
Senator Rieger asked who pays for title insurance? Bob
Bartholomew, Deputy Director, Dept of Revenue, responded
that it is not a tax administered by the Dept of Revenue,
but it is his understanding that the insurance corporations
that pay a percentage of their premiums sold to the state
would be the entities applying for credit. Senator Sharp
asked if the new CS would change the fiscal note? Mr.
Bartholomew responded that the fiscal note would remain the
same. Co-chair Halford asked if there were objections to
the CS as a working draft before the committee. Senator
Sharp OBJECTED. He stated that this bill broadens the
extraordinary granting of special privileged industries and
businesses in this state. They are allowed to divert their
taxes to the areas they choose. No other tax payer has that
right. Raising the amount that each qualifying business can
donate from $150,000.0 per year to $350,000.0 maximum is
going too far. This in effect diverts public funds, before
it even gets to the treasury, at the desires of the business
that owes the tax to their particular interest. He stated
he did not support this action. He suggested legislatively
choosing to appropriate the money, rather than participating
in the deception of allowing tax payers to divert their
payment from the treasury.
Senator Donley stated that he does not support 100% tax
credits. He would support some tax credit, but not 100%.
Co-chair Frank stated his agreement, that there should be a
leverage feature.
Senator Zharoff supports the CS-1. He prefers the five-year
sunset. He stated that this is an attempt to begin an
endowment for funding public broadcasting. He shared his
concern with Section 14 and the raw fish tax that was
collected and reimbursed throughout municipalities in the
original form. The municipalities did not have any say,
whereas in this bill, they have an opportunity to contribute
by resolution.
Senator Donley asked the sponsor to review the difference
between the original bill and the CS-1. Mr. Wright
explained that there are two changes in the CS-1, in Section
14 and 16 which involves the municipality's share of the tax
revenue collected. Essentially, the municipality share of
revenue can be deducted if they pass a resolution or
ordinance stating such. In other words, municipalities can
opt out. Co-chair Halford stated that the CS-1 increases
the potential credit by the municipality share. The
original bill did not allow for the credit of the
municipality share. Mr. Wright responded that the original
bill was a mandate on the fisheries tax and the fisheries
resource landing tax that one-half of the credit would be
deducted against the state's share, and the other one-half
would be deducted against the municipality's share. Mr.
Donley asked if the municipality opts out, the taxpayer does
not get the break? Mr. Wright responded that the taxpayer
will still get the break. It is the revenues that the
municipality would normally receive under the fisheries tax
or fisheries resource landing tax. Mr. Bartholomew said
that the intent is, without the amendment, the municipality
would share in the credit. If a credit was taken by a
taxpayer, one-half of it would be reduced in sharing to the
municipality and the state would loose revenue due to the
credit. This bill allows the municipality to say they do
not want to have their share reduced by the credit, and the
state would then absorb the credit.
Co-chair Halford said that the question before the committee
is the adoption of the CS-1. By a show of hands, CS-1 FAILS
to be adopted. Those for the CS-1 were Senators Zharoff,
Phillips and Rieger. Those opposed were Co-chair Halford,
Sharp and Donley.
Senator Sharp MOVED to adopt amendment #1, which would cap
the total contribution of $150,000.0 and raise it from the
current $100,000.0, and allow a 50/50 credit on the first
$100,000.0 of public broadcasting.
Co-chair Halford suggested further work on this bill and
coming back to it later.
HOUSE BILL NO. 286
"An Act providing an exemption from gambling and
certain alcoholic beverage laws for gambling
conducted by cruise ships for their ticketed
passengers in the offshore water of the state;
relating to promotions on board cruise ships; defining
'cruise ship'; providing for exemption procedures for
certain cruise ships before they can conduct gambling
in the offshore water of the state; providing an
exemption from the coin-operated device tax
for cruise ships exempted from the gambling laws; and
providing for an effective date."
Tom Dow, Vice President, Princess Tours, representing
Princess and Northwest Cruise Association, spoke in support
of HB 286 as amended. Senator Sharp MOVED to adopt
amendment #1, which limits the activities on cruise ships by
eliminating slot machines or any mechanical devices.
Senator Zharoff OBJECTED. He asked what the amendment
disallows? Senator Sharp responded that this precludes the
activities on slot machines or any other mechanical device,
same as Monte Carlo games. Mr. Dow stated that the purpose
of the amendment is to make the types of games available
within the casinos on board the ships, the same as those
that are available on Monte Carlo night, such as roulette
wheels and crap tables, poker, and black jack. It does not
include slot machines or video poker games, which are
legally described as coin operated mechanical gaming
devices. No objection being heard, amendment #1 was ADOPTED.
Senator Sharp MOVED to adopt amendment #2, repealing the
earlier effective date of 90 days after the governor's
signature, or September 30, 1995. Mr. Dow stated that the
reason for the amendment is to remove any possible chance
that the passage of this bill would have any effect on
expanding gaming beyond where it would be otherwise. It is
under those circumstances that the industry has agreed to
support this amendment. Dennis Poshard, Director, Division
of Charitable Gaming, said that having read correspondence
from the attorney general's office, he concurs with Mr.
Dow's statement, that these amendments would make the bill
so that it has no effect on furthering gaming in Alaska.
Mr. Dow noted that if SB 172 never took effect, the last
date this exemption would be available would be September
30, 1995, or sooner than September 30th. Without further
objection, amendment #2 was ADOPTED.
Senator Rieger MOVED to adopt CSHB 286 (FIN) am with
individual recommendations and accompanying fiscal note.
Senator Phillips objected. By a show of hands CSHB 286
(FIN) am was REPORTED OUT with a zero fiscal note from the
Dept of Revenue, bringing in a projected revenue of $500.0.
Senators Rieger and Zharoff recommended a "do pass".
Senators Donley and Zharoff with Co-chair Halford signed "no
recommendation", and Senator Phillips signed "do not pass".
The meeting RECESSED at 2:30 p.m.
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