Legislature(2007 - 2008)SENATE FINANCE 532

04/12/2008 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 111 BUSINESS LICENSE FEE TELECONFERENCED
Moved SCS CSHB 111(FIN) Out of Committee
HJR 2 CONST.AM:NO GAMING WITHOUT VOTER APPROVAL
Heard & Held
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 44 VETERAN INFO ON PFD APPLICATIONS
Moved CSHB 44(FIN) Out of Committee
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 12, 2008                                                                                           
                         9:39 a.m.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate  Finance Committee meeting                                                                   
to order at 9:39:47 AM.                                                                                                       
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Kim Elton                                                                                                               
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
Senator Fred Dyson                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Nancy   Dahlstrom;   Kelly   Goode,   Staff,                                                                   
Representative Dahlstrom;  Ted Leonard, Deputy  Commissioner,                                                                   
Department Of  Commerce, Community And Economic  Development;                                                                   
Darwin Peterson, Staff, Senator  Stedman Representative Harry                                                                   
Crawford;  Jennifer Stickler,  Licensing  Chief, Division  of                                                                   
Corporations,   Businesses   and    Professional   Licensing,                                                                   
Department of Commence;                                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CS HJR 2(FIN)                                                                                                                   
                                                                                                                                
          Proposing an  amendment to the Constitution  of the                                                                   
          State  of Alaska requiring  an affirmative  vote of                                                                   
          the people  before any form of gambling  for profit                                                                   
          may  be  authorized  in Alaska  and  setting  other                                                                   
          requirements.                                                                                                         
                                                                                                                                
          CS HJR 2 (FIN) was HEARD and HELD in Committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CS HB 44(FIN)                                                                                                                   
                                                                                                                                
          An Act relating to information from veterans on                                                                       
          the permanent fund dividend application form.                                                                         
                                                                                                                                
          CSHB  44 (FIN) was REPORTED  out of  Committee with                                                                   
          "do  pass"  recommendation  and  accompanying  zero                                                                   
          notes from the Department  of Military and Veterans                                                                   
          Affairs and the House Finance Committee.                                                                              
                                                                                                                                
CS HB 111(FIN)                                                                                                                  
                                                                                                                                
          "An Act decreasing the  fee for a business license;                                                                   
          relating to  a civil fine for not  having a current                                                                   
          business  license,  to business  license  penalties                                                                   
          under   certain   laws    relating   to   financial                                                                   
          institutions,  occupational  licensing,  employment                                                                   
          agencies,  and  taxation, and  to  the duration  of                                                                   
          certain  business licenses;  and  providing for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          SCS CSHB  111 (FIN)  was REPORTED out  of Committee                                                                   
          with  a "do pass"  recommendation and  accompanying                                                                   
          new fiscal  notes from the Department  of Commerce,                                                                   
          Community and Economic Development.                                                                                   
                                                                                                                                
9:39:53 AM                                                                                                                    
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 2(FIN)                                                                                      
                                                                                                                                
     Proposing an amendment to  the Constitution of the State                                                                   
     of Alaska  requiring an affirmative  vote of  the people                                                                   
     before  any   form  of  gambling   for  profit   may  be                                                                   
     authorized in Alaska and setting other requirements.                                                                       
                                                                                                                                
9:40:00 AM                                                                                                                    
                                                                                                                                
AT EASE:       9:40:03 AM                                                                                                     
RECONVENED:    9:40:19 AM                                                                                                     
                                                                                                                                
REPRESENTATIVE NANCY  DAHLSTROM presented an overview  of the                                                                   
house joint  resolution. She explained  that this  bill would                                                                   
create a  constitutional amendment  that places the  question                                                                   
for permitting  for-profit  gaming in  Alaska on the  general                                                                   
election  ballot. The  resolution  states that  in order  for                                                                   
there  to be for-profit  gaming  in Alaska  their must  be an                                                                   
affirmative majority  by the state  voters. In  addition, the                                                                   
local communities  must then approve,  by a majority,  gaming                                                                   
in their  area. The local vote  requirement was added  in the                                                                   
House to assure balance for smaller communities.                                                                                
                                                                                                                                
9:42:48 AM                                                                                                                    
                                                                                                                                
Senator Dyson  questioned how  this would affect  gambling on                                                                   
Native Alaskan lands.                                                                                                           
                                                                                                                                
Representative  Dahlstrom reported  that she  is not  sure as                                                                   
this is not yet resolved.                                                                                                       
                                                                                                                                
9:43:32 AM                                                                                                                    
                                                                                                                                
Senator  Olson  inquired  how this  would  affect  non-profit                                                                   
gaming in Alaska.                                                                                                               
                                                                                                                                
Representative Dahlstrom reported  this bill would not affect                                                                   
any gaming activity already in law.                                                                                             
                                                                                                                                
Co-Chair Stedman  asked what would  be the affect  on Annette                                                                   
Island, the only native reservation in Alaska.                                                                                  
                                                                                                                                
Representative  Dahlstrom advised  that Annette  Island  is a                                                                   
part of Alaska  and the community would need to  abide by the                                                                   
same regulations as  the rest of the state.  If the residents                                                                   
wished to have  gaming in their area, it would  have to be by                                                                   
majority vote of the community.                                                                                                 
                                                                                                                                
Co-Chair Stedman  pointed out that Annette Island  is treated                                                                   
differently  by other  Alaska departments,  such as fish  and                                                                   
game laws. He wondered if there  had been any research on the                                                                   
special status of Annette Island in regard to gaming.                                                                           
                                                                                                                                
Representative Dahlstrom  responded she could  not comment on                                                                   
the policy for Annette Island.                                                                                                  
                                                                                                                                
9:45:09 AM                                                                                                                    
                                                                                                                                
Senator  Elton asked  if the  state or  municipal vote  would                                                                   
occur first.                                                                                                                    
                                                                                                                                
Representative  Dahlstrom reported  that the state  elections                                                                   
would happen first.                                                                                                             
                                                                                                                                
Senator Elton expressed that some  pull-tabs are on behalf of                                                                   
non-profits. He  questioned if the businesses  that ran these                                                                   
non-profit    pull-tabs     were    considered     for-profit                                                                   
organizations would  they be prohibited from  conducting this                                                                   
service without a vote by the people.                                                                                           
                                                                                                                                
Representative Dahlstrom  specified that pull-tabs  are legal                                                                   
in the state and nothing in existing  state law would change.                                                                   
                                                                                                                                
9:46:29 AM                                                                                                                    
                                                                                                                                
Senator  Elton  asked how  a  new  pull-tab seller  would  be                                                                   
treated.                                                                                                                        
                                                                                                                                
Representative Dahlstrom repeated  that this would not change                                                                   
those gaming businesses already allowed by state law.                                                                           
                                                                                                                                
9:47:20 AM                                                                                                                    
                                                                                                                                
Senator Thomas  questioned where  in the  bill it states  the                                                                   
continuation  of those gaming  activities already  allowed by                                                                   
state law.                                                                                                                      
                                                                                                                                
9:48:13 AM                                                                                                                    
                                                                                                                                
KELLY GOODE, STAFF, REPRESENTATIVE  DALSTROM answered Senator                                                                   
Thomas's  question  by  indicating  Section 2  (b),  page  2,                                                                   
states:                                                                                                                         
                                                                                                                                
     (b) This section does not  prohibit or restrict any form                                                                   
     of  gaming lawfully  conducted under  Alaska law  on the                                                                   
     date of the  ratification of this section  by the people                                                                   
     of Alaska,  nor does this  section affect  the authority                                                                   
     of the  legislature to  authorize or regulate  nonprofit                                                                   
     gaming by organized boroughs  and cities or by nonprofit                                                                   
     organizations.                                                                                                             
                                                                                                                                
AT EASE: 9:49:46 AM                                                                                                           
RECONVENED: 9:53:02 AM                                                                                                        
                                                                                                                                
9:53:45 AM                                                                                                                    
                                                                                                                                
Ms.  Goode   explained  that   the  difference  between   the                                                                   
Judiciary and  Finance version of  the bills was that  if the                                                                   
state   election   votes  affirmatively,   then   the   local                                                                   
communities would get a chance  to vote on allowing gaming in                                                                   
their community.                                                                                                                
                                                                                                                                
9:54:54 AM                                                                                                                    
                                                                                                                                
Senator Elton  asked what happens  when both a borough  and a                                                                   
city is involved.                                                                                                               
                                                                                                                                
9:55:41 AM                                                                                                                    
                                                                                                                                
Ms. Good replied it would depend  on where the gaming occurs.                                                                   
If the gaming was  to be held within the city,  then the vote                                                                   
would be there;  if outside the city but within  the borough,                                                                   
then the borough would vote.                                                                                                    
                                                                                                                                
9:56:27 AM                                                                                                                    
                                                                                                                                
Ms. Goode  remarked that the  House Finance Committee  wanted                                                                   
to ensure  this was  a two-tier  system with  both state  and                                                                   
local voting.                                                                                                                   
                                                                                                                                
Senator  Elton   acknowledged  he  is  not   a  supporter  of                                                                   
legalized  gambling  and  the back-up  material  relates  the                                                                   
negative impacts on families.                                                                                                   
                                                                                                                                
Co-Chair  Stedman noted  that  this new  resolution has  just                                                                   
been seen  by the  Committee and  there has  not been  enough                                                                   
time to thoroughly consider the resolution.                                                                                     
                                                                                                                                
9:58:38 AM                                                                                                                    
                                                                                                                                
Senator Olson suggested that since there would be a state-                                                                      
wide election first, all Alaskans  would have an influence if                                                                   
gambling would be allowed.                                                                                                      
                                                                                                                                
Senator  Elton   recounted  that  the  state   can  authorize                                                                   
gambling but the communities need to feel comfortable.                                                                          
                                                                                                                                
9:59:05 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman stressed  that this  was actually  a three-                                                                   
tier  system. First  there would  be  the vote  to amend  the                                                                   
Alaska Constitution,  followed by a state-wide  vote then the                                                                   
vote  on the  municipal  level.  He  believed the  voters  of                                                                   
Alaska  should decide  whether  they wanted  gambling in  the                                                                   
state. If  the voters approve  gambling then in order  for it                                                                   
to be  implemented, Alaskans would  vote on the  local level.                                                                   
If the  voters vote against gambling  in the state  then this                                                                   
should be a clear message that gambling is not wanted.                                                                          
                                                                                                                                
10:00:52 AM                                                                                                                   
                                                                                                                                
Ms.  Goode  replied that  the  House  felt that  some  larger                                                                   
communities  could  determine  the outcome  by  their  larger                                                                   
populations  which  initiated   the  addition  of  the  local                                                                   
community vote.                                                                                                                 
                                                                                                                                
10:01:57 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HARRY  CRAWFORD  indicated  that it  was  the                                                                   
sponsor's intention  to have a  statewide vote to  settle the                                                                   
question about  gambling. As it  moved through  committees it                                                                   
evolved to also  getting a vote in local communities  and the                                                                   
sponsor's were fine with this idea.                                                                                             
                                                                                                                                
10:02:55 AM                                                                                                                   
                                                                                                                                
Senator  Huggins inquired  if this  would have  an effect  on                                                                   
cruise ship industry.                                                                                                           
                                                                                                                                
Representative  Crawford replied that  there will not  be any                                                                   
effect if they stay in outside waters.                                                                                          
                                                                                                                                
10:03:32 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman reviewed the fiscal note.                                                                                      
                                                                                                                                
Senator Thomas requested more  information on the cruise ship                                                                   
tax.                                                                                                                            
                                                                                                                                
CS HJR 2  (FIN) was HEARD  and HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
AT EASE: 10:05:34 AM                                                                                                          
RECONVENED: 11:17:42 AM                                                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 111(FIN)                                                                                                
                                                                                                                                
     "An  Act  decreasing the  fee  for a  business  license;                                                                   
     relating  to  a civil  fine  for  not having  a  current                                                                   
     business  license, to business  license penalties  under                                                                   
     certain   laws  relating   to  financial   institutions,                                                                   
     occupational   licensing,   employment   agencies,   and                                                                   
     taxation,  and  to  the  duration  of  certain  business                                                                   
     licenses; and providing for an effective date."                                                                            
                                                                                                                                
11:17:50 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman cited this was  a first hearing for the bill                                                                   
with  the  intent  of  listening   to  public  testimony  and                                                                   
reporting the will of the Committee.                                                                                            
                                                                                                                                
11:18:21 AM                                                                                                                   
                                                                                                                                
TED  LEONARD, DEPUTY  COMMISSIONER,  DEPARTMENT OF  COMMERCE,                                                                   
COMMUNITY AND  ECONOMIC DEVELOPMENT presented an  overview of                                                                   
the  bill.  He  noted  the  bill   proposed  three  important                                                                   
functions: decrease the annual  license fee from $100 to $50,                                                                   
set a  standard civil,  not criminal, fine  for not  having a                                                                   
business license  to $300,  and allow  the department  in the                                                                   
future to  issue a professional  and business license  at the                                                                   
same time so that they would expire at the same time.                                                                           
                                                                                                                                
11:19:49 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT Amendment #1.                                                                                   
                                                                                                                                
Page 3, lines 4-10:                                                                                                             
     Delete "[, EXCEPT THAT THE FEE IS $50 IF                                                                                   
        (1)THE BUSINESS IS A SOLE PROPRIETORSHIP; AND                                                                           
        (2) THE SOLE PROPRIETOR IS 65 YEARS OF AGE OR OLDER                                                                     
     WHEN  THE SOLE  PROPRIETOR  APPLIES FOR  THE LICENSE  OR                                                                   
     WILL REACH 65  YEARS OF AGE AT ANY TIME  DURING THE YEAR                                                                   
     FOR WHICH THE LICENSE IS ISSUED]"                                                                                          
     Insert ", except that the fee is $25 [$50] if                                                                              
        (1) the business is a sole proprietorship; and                                                                          
        (2) the sole proprietor is 65 years of age or older                                                                     
             when  the  sole   proprietor  applies   for  the                                                                   
             license or  will reach  65 years  of age at  any                                                                   
             time during  the year for  which the  license is                                                                   
             issues"                                                                                                            
                                                                                                                                
Page 3, line 14:                                                                                                                
     Delete "2208"                                                                                                              
     Insert "2009"                                                                                                              
                                                                                                                                
Page 3, line 15:                                                                                                                
     Delete "2008 and 2009"                                                                                                     
     Insert "2009 and 2010"                                                                                                     
                                                                                                                                
Page 3, line 16:                                                                                                                
     Delete "2008"                                                                                                              
     Insert "2009"                                                                                                              
                                                                                                                                
Page 3, line 17, following "$200":                                                                                              
     Insert", and a person who is required under AS                                                                             
43.70.030, as that section exists  before October 1, 2009, to                                                                   
pay $50  a year for  the license may  pay $75 for  a two-year                                                                   
license instead of $100.                                                                                                        
                                                                                                                                
Page 3, line 18:                                                                                                                
     Delete "2008"                                                                                                              
     Insert "2009"                                                                                                              
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
11:20:23 AM                                                                                                                   
                                                                                                                                
DARWIN  PETERSON,  STAFF,  SENATOR   STEDMAN  explained  that                                                                   
Amendment  #1  provides  a  fifty  percent  business  license                                                                   
reduction for senior  citizens who are sole  proprietors of a                                                                   
business. It also moves the year forward by one year.                                                                           
                                                                                                                                
Co-Chair  Stedman   MOVED  a  Conceptual  Amendment   to  the                                                                   
Amendment.                                                                                                                      
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
Mr. Peterson  referred to page  2, lines 3-6  explaining this                                                                   
was  transition  language  inserted  into  the  amendment  to                                                                   
comply  to earlier transition  language  by the Governor  but                                                                   
after a discussion with the department,  the Chairman decided                                                                   
to delete lines 3-6.                                                                                                            
                                                                                                                                
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
Senator Olson  inquired if the  addition of lines  14-23 that                                                                   
change the  dates would  still comply  with the business  and                                                                   
professional licenses expiring at the same time.                                                                                
                                                                                                                                
Mr. Leonard responded that it should not affect it.                                                                             
                                                                                                                                
11:23:01 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  requested being  listed as a  co-sponsor to                                                                   
the bill.                                                                                                                       
                                                                                                                                
Co-Chair  Stedman  WITHDREW  his OBJECTION.  There  being  No                                                                   
further OBJECTION, Amendment # 1 was adopted.                                                                                   
                                                                                                                                
11:23:40 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  Conceptual Amendment #2 that                                                                   
deletes  Section 9,  lines 11-17.  There  being NO  OBJECTION                                                                   
Conceptual Amendment #2 was adopted.                                                                                            
                                                                                                                                
11:25:33 AM                                                                                                                   
                                                                                                                                
Senator Elton requested a bill history.                                                                                         
                                                                                                                                
AT EASE: 11:25:54 AM                                                                                                          
RECONVENED: 11:26:27 AM                                                                                                       
                                                                                                                                
11:27:59 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  inquired who would have access  to business                                                                   
license database.                                                                                                               
                                                                                                                                
Mr.  Leonard replied  this would  be  public information  for                                                                   
those who request it.                                                                                                           
                                                                                                                                
11:28:57 AM                                                                                                                   
                                                                                                                                
JENNIFER    STICKLER,    LICENSING   CHIEF,    DIVISION    OF                                                                   
CORPORATIONS,   BUSINESSES   AND    PROFESSIONAL   LICENSING,                                                                   
DEPARTMENT OF COMMENCE replied  that the division is mandated                                                                   
to make  a list of  licensees available  to the public.  This                                                                   
information  can  be  provided  in  several  ways,  including                                                                   
searching the  department web  site or requesting  a complete                                                                   
copy of database on a CD.                                                                                                       
                                                                                                                                
Senator Elton speculated  if he made a request  for addresses                                                                   
could they be put on mailing labels.                                                                                            
                                                                                                                                
Ms.  Stickler  replied  that mailing  labels  with  addresses                                                                   
could be provided for a charge.                                                                                                 
                                                                                                                                
11:30:38 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman  MOVED to REPORT  SCS CSHB 111 (FIN)  out of                                                                   
Committee  with individual  recommendations and  accompanying                                                                   
fiscal notes.                                                                                                                   
                                                                                                                                
SCS CSHB  11 (FIN) was REPORTED  out of Committee with  a "do                                                                   
pass" recommendation  and accompanying new fiscal  notes from                                                                   
the   Department   of  Commerce,   Community   and   Economic                                                                   
Development.                                                                                                                    
                                                                                                                                
AT EASE:       11:31:03 AM                                                                                                    
RECONVENED:    3:36:38 PM                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 44(FIN)                                                                                                 
                                                                                                                                
     An Act relating to information from veterans on the                                                                        
     permanent fund dividend application form.                                                                                  
                                                                                                                                
Senator Hoffman MOVED to REPORT CSHB 44 (FIN) out of                                                                            
Committee with individual recommendations and attached                                                                          
fiscal notes. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
CSHB 44  (FIN) REPORTED  out of  Committee  with a "do  pass"                                                                   
recommendation  and accompanying zero  fiscal notes  from the                                                                   
Department  of Military  and Veterans  Affairs and the  House                                                                   
Finance Committee.                                                                                                              
                                                                                                                                
AT EASE:       3:37:25 PM                                                                                                     
RECONVENED:    7:54:35 PM                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 7:54 PM                                                                                            
                                                                                                                                
                                                                                                                                

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