Legislature(2013 - 2014)SENATE FINANCE 532
04/09/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB94 | |
| HB84 | |
| HB99 | |
| HB153 | |
| HB56 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 30 | TELECONFERENCED | |
| += | SB 96 | TELECONFERENCED | |
| + | HB 94 | TELECONFERENCED | |
| + | HB 84 | TELECONFERENCED | |
| + | HB 99 | TELECONFERENCED | |
| + | HB 153 | TELECONFERENCED | |
| + | HB 56 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 9, 2013
9:12 a.m.
9:12:30 AM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 9:12 a.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Representative Doug Isaacson; Darrell Breese, Staff,
Representative Bill Stoltze; Representative Dan Saddler;
Kris Curtis, Auditor, Division of Legislative Audit;
Representative Bob Lynn; James Waldo, Staff, Representative
Lindsey Holmes;
PRESENT VIA TELECONFERENCE
Scott Thomas, Architect, Engineering Division, Department
of Transportation and Public Facilities, Anchorage; Mark
San Souci, Liaison, Department of Self Defense, Tacoma,
Washington; Brandon Spanos, Audit Supervisor, Tax Division,
Department of Revenue; Nancy Hull, Alaska Motorcycle
Adventures, Mat-Su Valley;
SUMMARY
SB 96 OIL AND GAS AND GAS ONLY LEASES
SB 96 was SCHEDULED but not HEARD.
HB 56 PASSENGER VEHICLE RENTAL TAX
HB 56 was REPORTED out of committee with a "do
pass" recommendation and with previously
published fiscal impact note: FN1 (REV).
CS HB 30(FIN)
STATE AGENCY PERFORMANCE AUDITS
CS HB 30(FIN) was SCHEDULED but not HEARD.
CS HB 84(FIN)
MILITARY TRAINING CREDIT/TEMP. LICENSE
CS HB 84(FIN) was REPORTED out of committee with
a "do pass" recommendation and with previously
published zero fiscal notes: FN1 (EED), FN2
(LWF), FN3 (UA), and FN5 (CED).
HB 94 CON AND NELLIE MILLER BRIDGES
HB 94 was REPORTED out of committee with a "do
pass" recommendation and with two new fiscal
impact notes from Department of Transportation
and Public Facilities.
CS HB 99(RES)
EXTEND ALASKA MINERALS COMMISSION
CS HB 99(RES) was REPORTED out of committee with
a "do pass" recommendation and with previously
published fiscal impact note: FN2 (CED).
CS HB 153(TRA)
NAMING WALTER J. HICKEL PARKWAY
CS HB 153(TRA) was REPORTED out of committee with
a "do pass" recommendation and with previously
published fiscal impact note: FN1 (DOT).
HOUSE BILL NO. 94
"An Act naming the northbound Chena Flood Channel
Crossing Bridge the Nellie Miller Bridge and naming
the southbound Chena Flood Channel Crossing Bridge the
Con Miller Bridge."
9:14:19 AM
Co-Chair Kelly MOVED to ADOPT the proposed committee
substitute for HB 94, Work Draft 28-LS0407\N (Martin,
4/8/13).
Co-Chair Meyer OBJECTED for discussion.
9:15:11 AM
REPRESENTATIVE DOUG ISAACSON, explained HB 94. He looked at
the Sponsor Statement (copy on file).
Conrad "Con" and Nellie Miller were some of the early
settlers of the City of North Pole, arriving there in
1950. Con joined the Navy after leaving home at the
age of 15 and served in China from 1927 to 1931. He
worked on the construction of the Hoover Dam after a
brief stint as a sheriff and private investigator. He
later re-enlisted in the Navy during World War II,
serving in the South Pacific. Nellie was one of 15
children raised in Idaho Springs, Colorado and married
Con in 1938 at the age of 15. Like many of Alaska's
early pioneers, Nellie and Con moved to Alaska in 1950
with $1.40 in their pocket and seeking a new beginning
for their small family. Con and Nellie Miller built
their first business, a clothing store, in Fairbanks
and Con travelled to rural communities to sell his
wares. When he travelled, he often donned a red
crushed velvet Santa suit, part of the stock the
couple brought north from a previous business. As they
began to build their store in North Pole in 1952, a
child of a customer from Northway asked Con if he was
building a house for Santa Claus and the name stuck.
The store became Santa Claus House.
Con and Nellie were known as Santa and Mrs. Claus and
their family store brought worldwide attention to the
City of North Pole, Alaska. The store has grown and
evolved over time into the icon that stands today,
including the 42-foot, 900 pound Santa Claus statue
outside that entices visitors from around the globe to
celebrate Christmas year-around. Con was the longest
serving mayor of North Pole, dedicating 19 years of
leadership. In 1952 he carried the city's
incorporation papers to Juneau. He also served as
North Pole's postmaster and civil defense director for
20 years as well as serving as the fire chief. Nellie
served on the local school board, as the postmistress
and as the town's magistrate and marriage
commissioner.
The Millers raised three children: sons, Terry and
Mike; and daughter, Merry Christmas Miller. Their two
sons served in both the Alaska State House and the
Alaska State Senate and hold the distinction of being
the only two siblings in the United States to have
presided as Senate President. Terry Miller also served
as Lt. Governor. For their commitment to Alaska and
their role in developing the City of North Pole, it is
fitting that the Chena Flood Channel Bridges be named
for these two distinguished Alaskans. The Northbound
Bridge #1364 shall be known as the Nellie Miller
Bridge and the Southbound Bridge #1866 shall be known
as the Con Miller Bridge.
Representative Isaacson furthered that he supported the
addition of the Lowell J. Ray Memorial Corridor, in
Wasilla, to the bill.
9:18:32 AM
Co-Chair Meyer queried the changes between version A and
version N of the legislation.
Representative Isaacson explained that the title had been
changed in the N version to accommodate both the Lowell J
Memorial Corridor and the change in the Senate
Transportation Committee to designate the Miller's by their
cultural moniker the "original Mr. and Mrs. Santa Clause."
9:19:10 AM
Co-Chair Meyer REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:19:31 AM
DARRELL BREESE, STAFF, REPRESENTATIVE BILL STOLTZE,
explained the addition of the Lowell J. Ray Memorial
Corridor to the legislation. Mr. Ray served 16 years in the
Navy, 10 years in the Air Force and 20 years as a civil
servant working for the Department of Defense. He improved
the "do line' radar system that served Alaska and Canada
during the Cold War. His work extended the life of the
radar system an additional 10 years and saved approximately
$12 million per radar system. His knowledge of the system
leg him to instruct allies in Germany, Britain, and Canada
in the enhancement of their radar systems. When the
Department of Transportation (DOT) made improvements to the
Parks Highway through Wasilla, through the purchase
agreement of the property for right-of-way, a promise was
made to Ray's family that the section of road would be
named after Ray. The department had dropped the ball on
that promise and so the change was an attempt to fulfill
the promise.
9:22:21 AM
Vice-Chair Fairclough wondered if there were homes adjacent
to the corridor.
Mr. Breese replied that there were homes adjacent to the
corridor. He shared that by naming the small section of
corridor the name of the road would not change. The
addresses of the homes would remain the same.
9:23:06 AM
Senator Dunleavy remarked that he supported the
legislation.
9:23:33 AM
Senator Bishop expressed support for the legislation. He
commented that DOT had made a promise to the family and
hoped that the department could find it within their budget
to zero out the fiscal notes.
9:24:38 AM
Co-Chair Meyer OPENED public testimony. There being none
Co-Chair Meyer CLOSED public testimony. He noted the two
fiscal impact notes.
9:24:51 AM
AT EASE
9:26:02 AM
RECONVENED
SCOTT THOMAS, ARCHITECT, ENGINEERING DIVISION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, ANCHORAGE (via
teleconference), spoke to the promise made to the Ray
family. He stated that DOT did not have the power to
memorialize highways; highway memorials were a legislative
per view. He stated that an effort had been made to
approach the Mat-Su Borough to research how street
addressing would be effected, as well as emergency
response. The department had asked to rename the road in
terms of the green street signs that were found atop stop
signs, but the choice rested with the borough as to how
street addressing, mail delivery and emergency response
should be handled; East Blue Lupine had been chosen by the
borough instead. He said that the department had approached
the legislature on the matter, which was why the bill was
before the committee. He asserted that the department did
not leave the issue unaddressed but pursued it the only way
that it had the authority.
9:27:46 AM
Co-Chair Meyer wondered if the department had the $10,000
it would cost to put up the signs.
Mr. Thomas responded no. He added that the sign on the
Richardson Highway could not be white letters on a blue
background because federal conditions allowed for white
letters on a brown background only.
9:28:52 AM
Co-Chair Meyer stated that he was not going to wrestle over
$10,000.
9:28:56 AM
Co-Chair Kelly MOVED to REPORT HB 94 out of committee with
individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
HB 94 was REPORTED out of committee with a "do pass"
recommendation and with two new fiscal impact notes from
Department of Transportation and Public Facilities.
CS FOR HOUSE BILL NO. 84(FIN)
"An Act relating to applying military education,
training, and service credit to occupational licensing
and certain postsecondary education and employment
training requirements; providing for a temporary
occupational license for qualified military service
members; and providing for an effective date."
9:30:22 AM
REPRESENTATIVE DAN SADDLER, gave a sponsor statement:
According to the Department of Defense, the September
2012, jobless rate for post-9/11 veterans was 9.9%
with young male Veterans (ages 18 to 24) experiencing
an unemployment rate of 18.1 percent. Last year,
Alaska had over 1200 service members separate from the
military from our posts and bases. These are 1200
potential workers who could contribute to our state's
economy. It is our responsibility to assist their
transition into our work force swiftly and
appropriately.
Our nation's military is one of the most highly
trained in the world. These men and women who
undertake this challenge face unique challenges and
sacrifice many things that the general population does
not. We owe it to our men and women to ensure that
their distinctive set of skills do not go to waste
once they separate from the military. These highly
trained individuals deserve to remain productive
members of society and to be able to provide for their
families.
HB 84 requires the Division of Professional Licensing,
University of Alaska and vocational educational
facilities to examine the credentials of related
military experience. Relevant military experience
would be credited for licensing requirements and
educational credit would be granted for appropriate
training.
In the last 10 years our military has seen record
numbers of deployments. HB 84 is one way we can show
our thanks and allow our service members the
opportunity to create positive and productive futures.
Representative Saddler shared that service members often
experience delays and lost opportunities qualifying for
licenses and academic credit even though they had highly
qualified training and experience. The legislation would
make it more likely that veterans in Alaska could get jobs
and advance their civilian careers by accelerating the
licensing process and the process of gaining educational
credit. The state currently faced forced reductions and
significant budget cuts, coupled by the sequestration,
which could force more veterans to seek civilian jobs. He
said that 19 states had enacted legislation similar to HB
84 as of July 2012, and 30 were considering similar
legislation in 2013. He believed that the state had an
obligation to find ways to give Alaska's veterans every
opportunity to leverage their military experience into
academic credit, job certification or vocational training
credits.
9:32:40 AM
MARK SAN SOUCI, REGIONAL LIAISON FOR MILITARY FAMILIES
NORTHWEST, DEPARTMENT OF DEFENSE, TACOMA, WASHINGTON (via
teleconference), expressed the departments support and
gratitude for the legislation. He noted that the training
that members of the military received was paid for by
federal tax dollars. Additionally, the department supported
the 2014 effective date.
9:33:59 AM
Senator Bishop spoke to Section 4 of the bill. He commented
that the Department of Labor should reach out to
organizations that already accepted military records on
their military discharge papers for application to
apprenticeship programs.
9:35:13 AM
Co-Chair Meyer CLOSED public testimony.
Co-Chair Kelly MOVED to REPORT CS HB 84(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes.
Co-Chair Meyer OBJECTED for the purpose of discussion.
9:35:44 AM
Vice-Chair Fairclough noted the multiple zero fiscal notes.
9:35:59 AM
Representative Saddler noted that former Representative
Bill Thomas had done much of the initial work on the
legislation.
Vice-Chair Fairclough queried fiscal notes.
Co-Chair Meyer REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered.
CS HB 84(FIN) was REPORTED out of committee with a "do
pass" recommendation and with previously published zero
fiscal notes: FN1 (EED), FN2 (LWF), FN3 (UA), and FN5
(CED).
9:37:35 AM
AT EASE
9:38:31 AM
RECONVENED
CS FOR HOUSE BILL NO. 99(RES)
"An Act relating to the membership of the Alaska
Minerals Commission; and extending the termination
date of the Alaska Minerals Commission."
9:38:58 AM
Representative Saddler explained that HB 99 would help to
ensure the growth and sustainability of the minerals
development and mining sector of Alaska's economy by
extending the Alaska Minerals Commission by an additional
10 years. The commission was established by the legislature
in 1986 and has since been reauthorized four times. The
commission is responsible for identifying road blocks to
mineral development in the state and for making
recommendations to the governor and the legislature on how
to clear any obstacles. The commission meets three times
per year in Anchorage, Fairbanks, and Juneau where
commissioners deliver an annual report to the capital
during the first ten days of the legislative session. Since
the commission's last reauthorization in 2003 it had made
several key recommendations which the legislature had since
implemented or was currently working on putting into place:
· Reforming the state's permitting process to make
permitting more timely and efficient
· Funding infrastructure development under the Roads to
Resources program
· Asserting and defending public access to roads, trails
and navigable waters
Representative Saddler reiterated that the commission was a
proven and affordable voice for an important sector of
Alaska's economy; mining employed 4,500 Alaskans and
provided over $600 million in direct and indirect payroll.
The bill provided for three year terms and a limit of two
consecutive terms, in addition to the annual election of a
chair and a vice-chair.
9:41:14 AM
Co-Chair Meyer queried when the commission was last
audited.
Representative Saddler replied that there had never been a
request made to audit the commission.
9:41:33 AM
Co-Chair Meyer understood that the bill would provide for a
10 year sunset date. He wondered if the request was
standard.
Representative Saddler replied in the affirmative. He added
that the commission had previously received several 5 year
extensions and one 10 year extension.
9:42:35 AM
KRIS CURTIS, AUDITOR, DIVISION OF LEGISLATIVE AUDIT,
testified that the division had no opinion on the
legislation because it had not performed an audit on the
commission. She furthered that the commission was an entity
that was not subject to mandatory audits.
9:43:22 AM
Vice-Chair Fairclough asked what the state was currently
spending to operate the commission.
Representative Saddler responded approximately $13,000 per
year, which included travel to meetings, the cost of
printing the annual report and minimal staff support.
Co-Chair Meyer asked if the report on the commission was
available to the public.
Representative said that printed copies had been distributed
earlier in the session and the PDF version could be found
online at the Department of Commerce, Community and Economic
Development website.
Co-Chair Meyer noted the fiscal note for $13,000.
9:44:43 AM
Co-Chair Kelly MOVED to REPORT CS HB 99(RES) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 99(RES) was REPORTED out of committee with a "do
pass" recommendation and with previously published fiscal
impact note: FN2 (CED).
9:45:14 AM
AT EASE
9:48:33 AM
RECONVENED
CS FOR HOUSE BILL NO. 153(TRA)
"An Act designating Minnesota Drive and a portion of
O'Malley Road in Anchorage the Walter J. Hickel
Parkway."
9:49:06 AM
REPRESENTATIVE BOB LYNN, explained that HB 153 would
designate a 7.5 mile portion of Minnesota Drive as the
Walter J. Hickel Parkway. The change would involve the
placement of two road signs. He offered a brief history of
the legacy of Walter J. Hickel.
9:50:31 AM
Co-Chair Meyer wondered why the particular 7.5 miles of
road was chosen.
Representative Lynn responded that the section of road was
chosen in an effort that no addresses would be required to
change.
9:51:42 AM
Co-Chair Meyer wondered about the size of the sign.
Representative Lynn responded that there would be two signs
on each end of the 7.5 mile stretch that would be of similar
size to other existing signs.
9:52:26 AM
Senator Hoffman wondered if there was dedication ceremony
planned.
Representative Lynn replied that once the bill was signed
then the dedication ceremony would be planned.
9:52:50 AM
Senator Bishop thanked Representative Lynn for the
proposal.
Co-Chair Meyer CLOSED public testimony.
9:53:20 AM
Co-Chair Meyer noted the fiscal note for $15,000.
9:53:59 AM
Vice-Chair Fairclough noted that the fiscal note reflected
the use of the 2009 Manual of Uniform Traffic Control
Devices for examining where signs should be positioned on
roadways. She noted that her physical address was in Eagle
River and that she had seen an increasing amount of signs
erected on single posts. She quoted the fiscal note:
"The memorial or dedication signing shall be limited
to one side at an appropriate location in each route
direction, each as an independent sign installation."
Vice-chair Fairclough wondered whether the code should be
modified in an effort to co-locate some informational
signs.
Mr. Thomas responded that historically bridge memorial
signs had been co-located with the signs containing the
name of the river. In the case of major highways two posts
were generally used.
9:55:59 AM
Co-Chair Kelly MOVED to REPORT CS HB 153(TRA) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 153(TRA) was REPORTED out of committee with a "do
pass" recommendation and with previously published fiscal
impact note: FN1 (DOT).
9:56:31 AM
AT EASE
10:00:04 AM
RECONVENED
HOUSE BILL NO. 56
"An Act excluding motorcycles and motor-driven cycles
from the passenger vehicle rental tax; and providing
for an effective date."
JAMES WALDO, STAFF, REPRESENTATIVE LINDSEY HOLMES,
explained that the bill would eliminate the passenger
vehicle rental for the purposes of motorcycle rentals. He
noted the motorcycle rentals contributed to a small portion
of the passenger vehicle rental tax. He relayed that when
the tax was originally passed by the legislature
motorcycles had not been considered. The legislature had
exempted recreation vehicles such as RV rentals from the 10
percent tax. He asserted that motorcycles were rented for
recreational tourism only and only during certain times of
the year. He stated that the cost of rental a motorcycle
was significantly higher than renting a car. Motorcycles
were rented for approximately $200 per day, which made the
10 percent tax, over a 10 day excursion, nearly as much as
another day's rental. Travelers that rented motorcycles
stayed in hotels and eat in restaurants, thus already
contributing to the states local sales and bed taxes.
Elimination of the tax would aid people in growing
motorcycle rental businesses in the state and would bring
more independent travelers into the state for extended
visits.
10:03:32 AM
Co-Chair Meyer noted that the bill sponsor had been
amicable to a smaller tax amount, but once the total amount
of the smaller tax was examined it was clear that the cost
to collect the tax would surpass the revenues it would
generate.
10:04:13 AM
Co-Chair Meyer wondered about the impetus for the
legislation.
Mr. Waldo responded that the concept was introduced by the
motorcycle rental businesses. The Department of Revenue had
only decided a few years prior to tax the businesses, which
had been a surprise to the industry. The department had
originally asked for back taxes for the previous 19 years
that they had been collection the passenger vehicle rental
tax, but had decided against the punitive measure.
10:05:48 AM
Senator Bishop wondered if snow machine rentals were taxed.
BRANDON SPANOS, AUDIT SUPERVISOR, TAX DIVISION, DEPARTMENT
OF REVENUE (via teleconference), testified that he was
unsure whether snow machines were taxed. He offered to get
back to the committee with the information.
10:06:52 AM
Co-Chair Meyer though that the tax would pertain to snow
machines.
Mr. Spanos understood that the tax was for highway use
vehicles.
10:07:14 AM
NANCY HULL, ALASKA MOTORCYCLE ADVENTURES, MAT-SU VALLEY
(via teleconference), testified in support of HB 56.
10:09:29 AM
Co-Chair Meyer noted that Ms. Hull had submitted written
testimony as well(copy on file).
10:09:48 AM
Co-Chair Meyer CLOSED public testimony.
10:10:01 AM
Vice-Chair Fairclough noted the fiscal note reflected the
loss of revenue of $12,000 per year from FY15 and into
future years.
10:10:29 AM
Vice-Chair Fairclough MOVED to REPORT HB 56 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 56 was REPORTED out of committee with a "do pass"
recommendation and with previously published fiscal impact
note: FN1 (REV).
10:10:59 AM
Vice-Chair Fairclough wondered if an amendment for HB 30
could be considered at the 1:30pm meeting.
Co-Chair Meyer said yes.
CS FOR HOUSE BILL NO. 30(FIN)
"An Act relating to performance reviews, audits, and
termination of executive and legislative branch
agencies, the University of Alaska, and the Alaska
Court System; and providing for an effective date."
HB 30 was SCHEDULED but not HEARD.
SENATE BILL NO. 96
"An Act relating to the primary period of an oil and
gas or gas only lease and the extension of a lease;
relating to terms to be included in an oil and gas or
gas only lease; relating to rental for an oil and gas
or gas only lease; and providing for an effective
date."
SB 96 was SCHEDULED but not HEARD.
ADJOURNMENT
10:11:54 AM
The meeting was adjourned at 10:11 a.m.