Legislature(2009 - 2010)SENATE FINANCE 532
04/02/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB117 | |
| SB234 | |
| SB239 | |
| SB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 117 | TELECONFERENCED | |
| += | SB 234 | TELECONFERENCED | |
| += | SB 239 | TELECONFERENCED | |
| + | SB 243 | TELECONFERENCED | |
| += | SB 264 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 2, 2010
9:02 a.m.
9:02:10 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Esther Cha, Staff, Senator Lesil McGuire; Darwin Peterson,
Staff, Co-Chair Stedman; Mike Pawlowski, Staff, Senator
Lesil McGuire
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 117 PRICE OF CIGARETTES
CSSB 117 (L&C) was REPORTED out of Committee with
a "do pass" recommendation and with zero FN 1
(REV).
SB 234 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD
SB 234 was heard and HELD in Committee for
further consideration.
SB 239 IGNITION INTERLOCK DEVICES/DUI/CHEM. TEST
CSSB 239 (JUD) was REPORTED out of Committee with
a "do pass" recommendation and with two zero
fiscal notes: FN 1 (LAW) and FN 2 (ADM).
SB 243 NO ROYALTY ON GEOTHERMAL RESOURCE
CSSB 243 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with a new zero
fiscal by the Department of Natural Resources, a
new zero fiscal note by the Department of
Administration, and a previously published zero
FN 2 (REV).
SB 264 COMMERCIAL FISHING & AGRICULTURE BANK
SB 264 was REPORTED out of Committee with a "do
pass" recommendation and with FN 1 (CED).
9:02:52 AM
SENATE BILL NO. 117
"An Act requiring the Department of Revenue to set the
minimum price for cigarettes for sale by wholesalers
and retailers; and prohibiting a wholesaler or
retailer from selling at wholesale or retail
cigarettes at a lower price than the price set by the
Department of Revenue."
Senator Olson asked if there had been any opposition to the
bill from vendors.
ESTHER CHA, STAFF, SENATOR LESIL MCGUIRE, replied that so
far, there has been no opposition. There was some
opposition to the original version of the bill, but a
compromise was reached.
Co-Chair Stedman noted one fiscal note. He stated that
there had been public testimony on the bill.
9:04:18 AM
Co-Chair Hoffman MOVED to REPORT CSSB 117 (L&C) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 117 (L&C) was REPORTED out of Committee with a "do
pass" recommendation and with zero FN 1 (REV).
9:04:44 AM
SENATE BILL NO. 234
"An Act extending the termination date of the
Alcoholic Beverage Control Board; and providing for an
effective date."
Co-Chair Hoffman MOVED to ADOPT the CS for SB 234, labeled
26-LS1350\E, Bullard, 3/31/10.
Co-Chair Stedman OBJECTED.
DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN, explained the
changes in the new CS. The first change is in Section 1 and
deals with the quorum for the board. Previously, the
executive director was allowed to vote in order to break a
tie. Now, the executive director can no longer vote.
Mr. Peterson highlighted a second change found in Section
2, dealing with the statewide database. The board creates
and maintains a statewide database on liquor purchased and
shipped to rural parts of the state. Currently, information
in the database is available to package store licensees,
law enforcement, probation officers, and the board. The
change is found on page 2, line 19-21, where now the person
who is the subject of the information also has access to
that information.
Mr. Peterson detailed the third change, which is found on
page 2, line 25, in Section 4. Two sections in the alcohol
title are being repealed. The board would no longer be
allowed to use minors to access as apprentices if they are
with a law enforcement officer.
9:07:07 AM
Senator Olson reported that initially the executive
director was given the opportunity to vote because the
board only had five members. He asked what was planned to
deal with a 2-2 split. Mr. Peterson replied that the board
would have to wait until they had a quorum. At a previous
hearing the executive director testified that she supported
the change. Senator Olson restated his question to ask what
the mechanism would be to rectify a split vote. Mr.
Peterson explained that the issue before the board would
not pass and the board would have to wait for five members
to be present.
Senator Ellis thought one of the proposed changes would
remove a primary tool of enforcement related to selling
alcohol to underage Alaskans. He questioned the rationale.
Mr. Peterson explained that in a previous hearing the chair
testified that he felt it was unfair for the board to use
minors when the owner of the premises and the employees are
at complete risk and the minor, according to state statute,
is not allowed to access those premises without an adult.
The chair decided to remove those sections from statute so
that the inconsistency was no longer in place. Now, it is
up to the owner of the bar and the bartenders to card
everyone who looks underage.
9:09:27 AM
Senator Ellis asked if law enforcement has expressed an
opinion about the change. Mr. Peterson said that the law
enforcement agency had not been asked about the change.
Senator Ellis suggested that be done.
Co-Chair Stedman WITHDREW his OBJECTION to the adoption of
the new CS.
Senator Ellis OBJECTED.
Senator Olson spoke from the experience of having run a
business and having been wary of sting operations. He
commented in favor of the change in the new CS.
Senator Ellis stated that he preferred to have law
enforcement contacted in order to know if this is the right
policy call.
9:11:33 AM
A roll call vote was taken on the motion.
IN FAVOR: Egan, Huggins, Olson, Thomas, Hoffman, Stedman
OPPOSED: Ellis
The motion to adopt CSSB 234 (FIN) passed (6-1).
SB 234 was heard and HELD in Committee for further
consideration.
9:12:21 AM
SENATE BILL NO. 239
"An Act relating to ignition interlock devices, to
refusal to submit to a chemical test, and to driving
while under the influence."
Senator Thomas asked if the interlock device had a timing
device whereby if a person helped an intoxicated person
start their car it would only run for a certain amount of
time before needing to be restarted.
Ms. Cha said that was correct.
Co-Chair Stedman provided the history of the bill. He noted
two zero fiscal notes.
Co-Chair Hoffman MOVED to REPORT CSSB 239 (JUD) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 239 (JUD) was REPORTED out of Committee with a "do
pass" recommendation and with two zero fiscal notes: FN 1
(LAW) and FN 2 (ADM).
9:14:32 AM
SENATE BILL NO. 243
"An Act removing the royalty obligation for geothermal
resources."
Co-Chair Hoffman MOVED to ADOPT CSSB 243 (FIN), labeled 26-
LS1346\S, Bullock, 3/26/10.
Co-Chair Stedman OBJECTED.
MIKE PAWLOWSKI, STAFF, SENATOR LESIL MCGUIRE, explained
that the changes in Version S of the bill attempt to remedy
problems that the committee identified in a previous
hearing. Geothermal resource, while it is renewable, is
also subject to waste. The CS attempts to delineate the
responsibility for the regulation of geothermal resources
between the Department of Natural Resources (DNR) and the
Alaska Oil and Gas Conservation Commission (AOGCC). The CS
charges AOGCC with regulating drilling and exploration and
waste of geothermal resources. The CS charges DNR with the
regulation of utilization and land management. This is
similar to the structure in place for oil and gas matters.
Mr. Pawlowski detailed the sections of the bill:
Section 1 amends AS 31.05.030 clarifying that the Alaska
Oil and Gas Conservation Commission (AOGCC) has
jurisdiction over the exploration and development
of geothermal resources; except for the
management of leases and units.
Section 2 amends the royalty rate for geothermal resources
in AS 38.05.181(g) to reflect federal royalty
rates; 1.75% of gross income during the first 10
years and 3.5% of gross income thereafter.
Section 3 adds a new section to AS 41.06 delineating
jurisdiction over geothermal resources between
the AOGCC and Department of Natural Resources
(DNR).
Section 4 amends AS 41.06.010 to allow the AOGCC to
investigate the waste of geothermal resources.
Section 5 repeals and reenacts AS 41.06.020 to set out the
jurisdiction of the AOGCC over all land in the
state and to allow for the suspension of the
application of chapter 06 on federal land if
similarly regulated by Federal government and
clarifies the application of the chapter.
Section 6 amends AS 41.06.030(a) to clarify that a plan of
development and operation for a geothermal
resource must be filed with the AOGCC.
Section 7 amends AS 41.06.030(b) to clarify that
unitization by DNR of a geothermal resource
system under AS 41.06.030 when the geothermal
resource system includes state land.
Section 8 amends AS 41.06.030(c) to conform to the changes
made in section 7.
Section 9 amends AS 41.06.030 by inserting a new subsection
(e) that allows the commissioner of DNR to adopt
regulations necessary to implement the purposes
and intent of chapter 6.
Section 10amends AS 41.06 by adding a new section
41.06.035 allowing the AOGCC to issue orders and
impose requirements to prevent waste and protect
correlative rights on any geothermal operation.
This section also allows the AOGCC to adopt
regulations.
Section 11 repeals and reenacts AS 41.06.040(a) governing
the authority of the AOGCC to adopt regulations
governing the safe development of a geothermal
resource.
Section 12 amends AS 41.06.040 (b) to allow the AOGCC to
require a geothermal operator to file a surety
bond.
Section 13 amends AS 41.06.040(c) to require notification
of the AOGCC rather than the DNR is geothermal
exploration encounters hydrocarbons and other
fissionable materials.
Section 14 amends AS 41.06.040(d) to replace the
commissioner of DNR with the AOGCC for the
purposes of authorizing inspection of a
geothermal operation.
Section 15 repeals and reenacts AS 41.06.050 governing the
AOGCC permitting process for geothermal
exploration and development drilling.
Section 16 amends AS 41.06 by adding a new section
41.06.055 authorizing a regulatory cost charge
for geothermal wells.
Section 17 repeals and reenacts AS 41.06.060 providing
definitions for AS 41.06
Section 18 repeals AS 41.06.030(d) governing lease
operations under an approved plan of development
and AS 41.06.040(e) the exemption from AOGCC
authority of geothermal resources.
Section 19 adds a new section to the uncodified law of the
State of Alaska that applies the royalty rates
established by section 2 to leases entered into
or renewed after the effective date of the act
and directs the commissioner of DNR to offer the
royalty rates established by section 2 to an
existing lessee.
Section 20 adds a new section to the uncodified law of the
State of Alaska that governs the transition of
authorities over geothermal resources established
in this act.
Section 21 adds a new section to the uncodified law of the
State of Alaska that gives direction to the
reviser of statutes.
Section 22 immediate effective date for section 20
Section 23 effective date of July 1, 2010
9:19:31 AM
Co-Chair Stedman WITHDREW his OBJECTION to adopting Version
S. There being NO further OBJECTION, it was so ordered.
Senator Huggins inquired if the legislation was "common
practice" for bringing on new sources of energy. He opined
that geothermal energy will be one of the features of the
state's future energy portfolio and will be abundant and
affordable. Mr. Pawlowski agreed. He stated that the intent
of the CS is to adopt a modern framework for geothermal
exploration and development.
Co-Chair Stedman asked for more information about the
percentage of the lease fee, now and after 10 years. Mr.
Pawlowski reported that the royalty rate in current statute
is anywhere between 10 percent and 15 percent of the gross
electricity sales. The commissioner of DNR has the ability
to reduce that. Since geothermal energy is not exportable,
in order to make Alaska competitive for the development of
geothermal resources, the federal rate of 1.75 percent on
gross electricity sales for the first ten years was
adopted. That rate changes to a 3.5 percent of the gross
sales for the following 10 years. Per the committee's
request, Senator McGuire's office submitted an explanation
of the annual rate under a specific project.
9:21:47 AM
Co-Chair Hoffman MOVED to report CSSB 243 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
Co-Chair Stedman noted three fiscal notes.
CSSB 243 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with a new zero fiscal by the
Department of Natural Resources, a new zero fiscal note by
the Department of Administration, and a previously
published zero FN 2 (REV).
9:22:45 AM
SENATE BILL NO. 264
"An Act relating to the board, investigations, and
examinations of the Alaska Commercial Fishing and
Agriculture Bank; and providing for an effective
date."
Co-Chair Stedman asked if there were any questions about
the bill. He noted one fiscal note.
9:23:28 AM
Co-Chair Hoffman MOVED to report SB 264 out of Committee
with individual recommendations and the accompanying fiscal
note.
SB 264 was REPORTED out of Committee with a "do pass"
recommendation and with FN 1 (CED).
ADJOURNMENT
The meeting was adjourned at 9:24.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 00 Sponsor Statement SB 117.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| 03 SB 117 Summary of Changes.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| 04 SB 117 Sectional Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| 05 Costco Letter SB 117.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| 06 Elerding Letter SB 117.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| 07 Elerding Attachment.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| SB117-Stedman.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
| SB 243 Sectional Analysis Version S.docx |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| NCSL Ignition Interlock Device.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
| SB 239 Sponsor Statement.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
| SB 239 Support Letter APOA.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
| CSSB 239 Version S.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 239 |
| SB 239 Sectional version S.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 239 |
| SB 243 Proposed CS SFIN Version S 040210.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| USGS Geothermal Packet.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 243 Sectional Analysis Version S.docx |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 243 Sectional 012810.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 243 Sectional.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 243 Proposed CS SFIN Version S 040210.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB243CS-DOA-AOGCC-03-31-10.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| Ormat SB242 and SB243 for Senate Resouce Hearing 11-Mar-10 ver0 (2).pptx |
SFIN 4/2/2010 9:00:00 AM |
SB 242 SB 243 |
| Geothermal Royalty Rates.docx |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| Changes to SB 243 in Version E.docx |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| Akutan Support Letter.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 234 sponsor statement.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 234 |
| SB 234 Proposed CS SFIN Version E.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 234 |
| SB 243 Royalty Sheet SFIN.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 243 |
| SB 264 Support Letter Huppert 2010.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 264 |
| SB 264 CFAB Mar 2003 Ltr HB 159.pdf |
SFIN 4/2/2010 9:00:00 AM |
HB 159 SB 264 |
| SB 264 2010 Sponsor Statement.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 264 |
| SB 264 2010 Sectional.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 264 |
| SB 264 2010 Payments for Examinations.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 264 |
| SB 264 2010 HB 159 2003 backup.pdf |
SFIN 4/2/2010 9:00:00 AM |
HB 159 SB 264 |
| SB264-CED-BSS-3-17-10.pdf |
SFIN 4/2/2010 9:00:00 AM |
SB 264 |