Legislature(2009 - 2010)SENATE FINANCE 532
04/16/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB309 | |
| HB168 | |
| HCR22 | |
| HB294 | |
| HB376 | |
| HB73 | |
| HB190 | |
| HB416 | |
| HB126 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 309 | TELECONFERENCED | |
| += | HB 168 | TELECONFERENCED | |
| += | HCR 22 | TELECONFERENCED | |
| += | HB 294 | TELECONFERENCED | |
| += | HB 342 | TELECONFERENCED | |
| += | HB 376 | TELECONFERENCED | |
| + | HB 73 | TELECONFERENCED | |
| + | HB 190 | TELECONFERENCED | |
| + | HB 416 | TELECONFERENCED | |
| + | HB 126 | TELECONFERENCED | |
| + | HB 184 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 16, 2010
9:15 a.m.
9:15:41 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:15 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
Darwin Peterson, Staff, Co-Chair Stedman; Senator Lesil
McGuire, Sponsor; Senator John Coghill, Sponsor; Ward
Hurlburt, Chief Medical Officer, Division of Public Health,
Department of Health and Social Services; James Ellis,
Staff, Representative Mark Neuman; Representative Tammie
Wilson; Liz Clement, Staff, Representative Bob Herron;
Representative Bob Lynn, Sponsor; Representative Anna
Fairclough, Sponsor; Panu Lucier, Executive Director,
Friends of the Alaska Children's Trust & Alaska Children's
Trust; Conrad Jackson, Staff, Representative Kurt Olson;
Representative Les Gara, Sponsor; Allison Elgee, Assistant
Commissioner, Department of Health and Social Services;
Mike Lesman, Office of Children's Services, Department of
Health and Social Services
PRESENT VIA TELECONFERENCE
Susie Koklich, Alaska State Fire Fighters Association,
Valdez; Whitney Brewster, Department of Motor Vehicles,
Department of Administration
SUMMARY
SB 309 GAS EXPLORATION\DEVELOPMENT TAX CREDIT
CSSB 309 (FIN) was REPORTED out of Committee with
a "do pass" recommendation, with indeterminate
FN 1 REV, and with a new zero fiscal note by the
Department of Natural Resources.
HB 168 TRAUMA CARE CENTERS/FUND
SCS HB 168 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with
previously published zero FN 2 REV and a new zero
fiscal note by the Department of Health and
Social Services.
HCR 22 ALASKA NORTHERN WATERS TASK FORCE
CS HCR 22 (FIN) was REPORTED out of Committee
with a "do pass" recommendation and with
previously published FN 2 LEG.
HB 294 USE, REGULATION, AND OPERATION OF BOATS
CSHB 294 (FIN) was REPORTED out of Committee with
a "do pass" recommendation and with previously
published FN 1 DNR.
HB 342 EXTEND BOARD OF REAL ESTATE APPRAISERS
HB 342 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published FN 1 CED.
HB 376 EXTEND BD OF PSYCHOLOGIST & PSYCH. ASSOC.
HB 376 was REPORTED out of Committee with a "do
pass" recommendation and with previously
published FN 1 CED.
HB 73 FIREFIGHTER/EMT LICENSE PLATES
HB 73 was heard and HELD in Committee for further
consideration.
HB 190 CHILDREN'S TRUST
HB 190 was heard and HELD in Committee for
further consideration.
HB 416 PRUDENT MANAGEMENT OF INSTITUTIONAL FUNDS
HB 416 was heard and HELD in Committee for
further consideration.
HB 126 EXTEND/RESUME STATE CUSTODY OF CHILDREN
HB 126 was postponed until the afternoon meeting.
HB 184 DEBT AUTHORIZATION FOR UNIVERSITY
HB 184 was scheduled but not heard.
9:16:00 AM
SENATE BILL NO. 309
"An Act amending and extending the exploration and
development incentive tax credit under the Alaska Net
Income Tax Act for operators and working interest
owners directly engaged in the exploration for and
development of gas from a lease or property in the
state; providing for an effective date by amending the
effective date for sec. 2, ch. 61, SLA 2003; and
providing for an effective date."
Co-Chair Stedman said it was the second hearing on the
bill.
9:18:12 AM
Co-Chair Hoffman MOVED to ADOPT the CS for SB 309, Version
S, as the working document.
Co-Chair Stedman OBJECTED.
DARWIN PETERSON, STAFF, CO-CHAIR STEDMAN, explained the
changes in the new CS. In this version of the bill,
Sections 8 and 9 were removed from the previous version.
Those were the sections that allowed the credits to be
applied in one year. That results in a return to the status
quo, which is that 50 percent of the credits can be applied
for in the first year and the remainder in the second year.
The next change is found on page 3, Section 3, lines 12 and
13. The previous version allowed the taxpayer to take a
credit up to 100 percent of the taxpayer's liability, as
opposed to the status quo of 50 percent. This CS splits the
difference and the taxpayer can take up to 75 percent of
their liability
Mr. Peterson related that the third change is on page 5,
Section 8, and is an amendment by Senator Huggins that the
committee adopted previously. The amendment dealt with not
incurring penalties on underpayments or overpayments due to
the retroactivity in the legislation. Page 6, Section 9 is
a renumbering of the section.
Mr. Peterson explained that page 7, Section 10, is the
section that deals with jackup rigs. Mr. Peterson read the
new language from the bill.
The first three unaffiliated persons that drill an
offshore explanation well for the purpose of
discovering oil or gas in Cook Inlet that penetrates
at least 3,000 feet below the base of the tertiary age
strata and evaluates a prospect in the pre-tertiary
zone using a jackup drill rig, are eligible for the
credit under this subsection.
9:20:38 AM
Mr. Peterson turned to Section 10, page 7, line 25, to
describe a date change to March 31, 2010 so that the
credits would apply to the entire construction season. Page
8, Section 13, is a continuing conforming amendment.
Sections 14 and 15 are also a part of the conforming
amendment. Section 16 is a new sunset date for the credits,
since that date is now 2016. Sections 17 and 18 also
reflect the conforming amendment.
Senator Ellis asked if it was standard practice to require
a "sharing of the data" when the state provides money. He
wondered if the CS addressed that issue. Mr. Peterson said
he did not receive any orders to make changes to that
policy.
9:22:23 AM
SENATOR LESIL MCGUIRE, SPONSOR, addressed Senator Ellis'
question. She reported that the CS was left alone in order
for the credits to function. She emphasized that this was
an exclusive credit and disallowed companies from taking
other credits.
Senator Ellis asked for the rationale for the state not
requiring data sharing in this bill.
Senator McGuire reported that she met with the companies to
discuss what would make the credit work. The companies felt
that if the data was made public, they would not be
competitive.
Senator Ellis offered to pursue his concerns later.
9:25:03 AM
Senator Thomas noted in a previous CS there was language
that allowed companies to take credits in the same year,
rather than for two years.
Co-Chair Stedman explained that current statutes require
capital credits to be taken over two years, 50 percent each
year. It was to the state's advantage to do so.
Senator Thomas commented that it works well for large
explorers. He suggested a situation where a smaller company
would run into problems applying credits in the second
year. He voiced concern about that.
9:27:05 AM
Co-Chair Stedman WITHDREW his OBJECTION to adopting the CS.
There being NO OBJECTION, it was so ordered.
Senator McGuire related a conversation with a Cook Inlet
company who stated that the scenario would be worse without
the secrecy of data.
Co-Chair Hoffman MOVED to report CSSB 309 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 309 (FIN) was REPORTED out of Committee with a "do
pass" recommendation, with indeterminate FN 1 REV, and with
a new zero fiscal note by the Department of Natural
Resources.
9:28:48 AM
CS FOR HOUSE BILL NO. 168(FIN)
"An Act relating to state certification and
designation of trauma centers; creating the trauma
care fund to offset trauma care provided at certified
and designated trauma centers; and providing for an
effective date."
Co-Chair Stedman noted that it was the second hearing on
the bill.
Co-Chair Hoffman MOVED to ADOPT the SCS for CSHB 168 (FIN),
Version T, as the working draft before the committee.
Co-Chair Stedman OBJECTED. He noted the CS incorporates two
amendments, one from Senator Hoffman and one from Senator
Ellis.
Co-Chair Stedman WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman noted three zero fiscal notes.
SENATOR JOHN COGHILL, SPONSOR, explained the changes in
Version T. Section 1, line 7, broadens the wording to say
"any certified trauma center in the state" in order to open
up participation to a broader scope of participation.
Section 2, lines 13 and 14, puts accountability language in
the bill. It says that the trauma center must "achieve or
maintain the highest appropriate level of trauma care
designation". The other sponsor of the bill, Representative
Herron agrees with these changes.
9:31:34 AM
WARD HURLBURT, CHIEF MEDICAL OFFICER, DIVISION OF PUBLIC
HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke of
the need for a Medical Care System and a Trauma Care
Center. He related that the system is found throughout the
Lower 48 and is needed in Alaska. The bill will allow
hospitals to meet trauma care standards.
Co-Chair Stedman asked if the department supports the bill.
Mr. Hurlburt said it did. Co-Chair Stedman asked if there
were any proposed changes to the bill. Mr. Hurlburt said
there were none.
9:34:24 AM
Co-Chair Hoffman MOVED to report SCS CSHB 168 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS HB 168 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published zero FN
2 REV and a new zero fiscal note by the Department of
Health and Social Services.
9:35:09 AM
CS FOR HOUSE CONCURRENT RESOLUTION NO. 22(FIN)
Establishing and relating to the Alaska Northern
Waters Task Force.
Co-Chair Stedman reported that it was the second hearing on
the resolution. He noted one fiscal note from the
Legislature for $150,000 in general funds to cover the cost
of travel and expert witnesses for the task force.
9:35:48 AM
Co-Chair Hoffman MOVED to report CS HCR 22 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HCR 22 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published FN 2
LEG.
9:36:36 AM
CS FOR HOUSE BILL NO. 294(FIN)
"An Act amending the termination date of certain
statutes relating to the use, operation, and
regulation of boats, a uniform state waterway marking
system, and civil liability for boat owners by
extending the termination date by two years; providing
for an effective date by amending the effective date
of secs. 3, 5, 7, 9, 11, 14, 16, 18, 20, 23, 26, and
27, ch. 28, SLA 2000, as amended; and providing for an
effective date."
Senator Egan MOVED to ADOPT Amendment 1:
Page 1, line 3
Delete "two"
Insert "seven"
Page 1, line 11
Delete "2013"
Insert "2018"
Co-Chair Stedman OBJECTED.
Senator Egan explained that the amendment would extend the
sunset date four years. He added that it was a popular
program, especially in coastal communities. He said the
sponsor has no problems with this change.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:38:00 AM
JAMES ELLIS, STAFF, REPRESENTATIVE MARK NEUMAN, agreed with
the amendment.
Co-Chair Stedman noted one fiscal note.
Co-Chair Hoffman MOVED to report SCS CSHB 294 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 294 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with previously published FN 1
DNR.
9:39:25 AM
HOUSE BILL NO. 342
"An Act extending the termination date of the Board of
Certified Real Estate Appraisers; and providing for an
effective date."
Co-Chair Stedman noted it was the second hearing on the
bill. The bill has one fiscal note.
REPRESENTATIVE TAMMIE WILSON, SPONSOR, thanked the
committee.
Co-Chair Hoffman MOVED to report HB 342 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 342 was REPORTED out of Committee with a "do pass"
recommendation and with previously published FN 1 CED.
HOUSE BILL NO. 376
"An Act extending the termination date of the Board of
Psychologist and Psychological Associate Examiners;
and providing for an effective date."
9:40:43 AM
Co-Chair Stedman said it was the second hearing on the
bill. He noted the fiscal note.
LIZ CLEMENT, STAFF, REPRESENTATIVE BOB HERRON, offered to
answer questions.
Co-Chair Hoffman MOVED to report HB 376 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 376 was REPORTED out of Committee with a "do pass"
recommendation and with previously published FN 1 CED.
9:42:14 AM
CS FOR HOUSE BILL NO. 73(FIN)
"An Act relating to special fire fighter and emergency
medical service provider license plates; and providing
for an effective date."
Co-Chair Stedman said it was the first hearing of the bill.
Co-Chair Hoffman MOVED to ADOPT the SCS for CSHB 73 (FIN),
Version T, as the working document.
Co-Chair Stedman OBJECTED.
Mr. Peterson explained the two changes in the new SCS. In
the previous version of the bill, commemorative license
plates for firefighters and EMT's were available to anyone
for the price of $100. That option has been removed. Only
active or retired firefighters and EMT's are eligible for
those license plates. The second change is on page 2, line
13, and provides for license plates which are available to
fraternal organizations with a national chapter. The cost
of those plates is $50 for the initial plate and $35
biannually.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:44:26 AM
Co-Chair Stedman noted one zero fiscal note from the
Department of Commerce, Community, and Economic
Development.
REPRESENTATIVE BOB LYNN, SPONSOR, introduced the bill. He
said that HB 73 provides for special recognition plates for
firefighters and EMS personnel. He stated support for the
new SCS.
9:45:34 AM
Senator Olson asked for the reason behind the new license
plates. Representative Lynn explained that the purpose is
for public safety and for recognition of these professions.
SUSIE KOKLICH, ALASKA STATE FIRE FIGHTERS ASSOCIATION,
VALDEZ (via teleconference), spoke in support of the
legislation. She noted that it was also a tool in
recruitment, in addition to recognition.
9:49:05 AM
WHITNEY BREWSTER, DEPARTMENT OF MOTOR VEHICLES, DEPARTMENT
OF ADMINISTRATION (via teleconference), commented on the
zero fiscal note the department has submitted. The cost of
the plates to the state is approximately $10 each. The
remaining fees collected go into the general fund;
therefore, there is a zero fiscal note. She requested
clarification of Version T regarding the definition of
fraternal organization and the renewal fee, which used to
be for commemorative plates. She also needed more
information about the renewal fee on line 13. She pointed
out that there is not typically a renewal fee on license
plates.
Co-Chair Stedman suggested they could work with the sponsor
to tighten up the language.
Ms. Brewster said the DMV does not object to the concepts
in the bill.
Representative Lynn noted that the fraternal organizations
referred to in the bill are not issue advocacy groups such
as Ms. Brewster mentioned.
HB 73 was heard and HELD in Committee for further
consideration.
9:53:26 AM
CS FOR HOUSE BILL NO. 190(FIN)
"An Act amending the Alaska children's trust and
relating to the trust; establishing a children's trust
grant account; relating to birth certificates and
certificates of marriage; relating to special request
Alaska children's trust license plates; and amending
the State Procurement Code to exempt the Alaska
children's trust and the Alaska Children's Trust
Board."
Co-Chair Stedman said it was the first hearing on the bill.
He noted three zero fiscal notes from the Department of
Health and Social Services, the Department of Revenue, and
the Department of Commerce, Community, and Economic
Development.
REPRESENTATIVE ANNA FAIRCLOUGH, SPONSOR, explained that the
purpose of the bill is to help prevent child abuse in
Alaska. She related that almost two years ago the Alaska
Children's Trust (ACT), the ACT Board, and Friends of the
Alaska Children's Trust brought forth issues to
legislators. The problem was developing a public/private
partnership that works and drawing donors in to contribute
to a fund that the legislature capitalized several years
ago with a $6 million appropriation. The Trust currently
has difficulties and restrictions that allow a grantee only
to receive 100 percent funding in the first year, followed
by a 50 percent reduction, followed by a 25 percent
reduction. If the Trust finds someone doing a good job,
they are unable to function because they have to withdraw
funds per state statute.
Representative Fairclough continued to say that the bill
attempts to provide a public/private partnership. It sets a
funding mechanism based on a percent of market value of the
Trust. It would take a 5 percent rolling average and place
it into an established grant account. The fund would be
managed by the Department of Revenue and exempt the Trust
from the procurement process, make grant writing and
processing more efficient, and make the government more
accountable to private sector donations.
9:56:36 AM
PANU LUCIER, EXECUTIVE DIRECTOR, FRIENDS OF THE ALASKA
CHILDREN'S TRUST & ALASKA CHILDREN'S TRUST, urged support
of the bill. She shared her background working with child
abuse prevention and the frustration with current statute.
She shared the benefits of the bill.
HB 190 was heard and HELD in Committee for further
consideration.
9:58:18 AM
HOUSE BILL NO. 416
"An Act adopting and relating to the Uniform Prudent
Management of Institutional Funds Act; relating to the
investment of money for charitable purposes by
institutions, including governmental institutions; and
relating to the University of Alaska."
Co-Chair Stedman said it was the first hearing on the bill.
He noted two zero fiscal notes, one from the Department of
Law and one from the University.
CONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, updated
the committee on the bill which would allow the state to
adopt the Uniform Prudent Management of Institutional Funds
Act (UPMIFA), which builds on almost 35 years of the
institutional fund management program. Almost all states
have adopted UPMIFA; only six states have not. He termed
the bill a definite benefit to Alaska. He called the bill
"default legislation". If a fund is governed by other
provisions such as a donor agreement, if there is a
conflict, UPMIFA takes a back seat.
HB 416 was heard and HELD in Committee for further
consideration.
10:01:39 AM
CS FOR HOUSE BILL NO. 126(FIN)
"An Act relating to extensions and resumptions of
state custody of children; and providing for an
effective date."
Co-Chair Stedman said it was the first hearing on the bill.
REPRESENTATIVE LES GARA, SPONSOR, explained the bill has
two purposes. The first provision is to implement a
national priority to extend foster care to age 21 for youth
who need the help and stability of an adult. That provision
is found on page 1, line 14, to page 2, line 2. There is
some matching federal money available. Studies show that
troubled youth do better with extended foster care. Data
from the Midwest supports this concept.
Representative Gara discussed the second provision in the
bill, which is to correct an inequity in the law.
Currently, if a child opts out of foster care at age 16,
that decision is irrevocable. Under this bill, that is
corrected to allow children to come back under foster care
if conditions warrant and Office of Children's Services
(OCS) approves.
Representative Gara shared how money would be saved by
delaying the effective date of the bill. A one-time
computer cost of $200,000 would be saved. In each of the
next four years, the cost is roughly $470,000 in general
funds.
Co-Chair Stedman noted three fiscal notes from the
Department of Health and Social Services; one for $130,700
in general funds and $73,500 in federal match; one for
$38,000 in general funds and $2,200 in federal match; and
one for $186,000 in general funds and $37,000 in federal
match.
10:05:39 AM
Senator Huggins asked how many children would be affected
by this legislation.
ALLISON ELGEE, ASSISTANT COMMISSIONER, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES, estimated 35 children would be
affected.
MIKE LESMAN, OFFICE OF CHILDREN'S SERVICES, DEPARTMENT OF
HEALTH AND SOCIAL SERVICES, introduced himself.
HB 126 was postponed until the afternoon meeting.
HOUSE BILL NO. 184
"An Act relating to the debt authorization of the
University of Alaska."
HB 184 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 10:06 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 73 Proposed SCS Fin Version T 041610.pdf |
SFIN 4/16/2010 9:00:00 AM |
HB 73 |
| HB 294 Amendment 1 Egan 041610SFIN.pdf |
SFIN 4/16/2010 9:00:00 AM |
HB 294 |
| SB 309 Proposed SCS SFIN Version S 041610.pdf |
SFIN 4/16/2010 9:00:00 AM |
SB 309 |