Legislature(2015 - 2016)SENATE FINANCE 532

04/15/2016 05:00 PM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 290 EXTENDING THE REAL ESTATE COMMISSION TELECONFERENCED
<Pending Referral>
+= HB 370 MUNICIPAL TAX EXEMPTIONS TELECONFERENCED
Heard & Held
+= HB 375 ELECTRONIC TAX RETURNS & REPORTS TELECONFERENCED
Heard & Held
+= SB 130 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
<Bill Hearing Canceled>
-- Testimony <Invitation Only> --
+ Janak Mayer, Chairman and Chief Technologist, TELECONFERENCED
enalytica
<Above Item Removed from Agenda>
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 137 HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS TELECONFERENCED
Moved SCS CSHB 137(FIN) AM Out of Committee
+= HB 254 EXTEND BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
Moved SCS HB 254(FIN) Out of Committee
+= HB 156 SCHOOL ACCOUNTABILITY MEASURES; FED. LAW TELECONFERENCED
Heard & Held
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 15, 2016                                                                                            
                         6:16 p.m.                                                                                              
                                                                                                                                
6:16:35 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 6:16 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Erin  Shine, Staff,  Senator Anna  MacKinnon; Joshua  Banks,                                                                    
Staff,   Representative   Talerico;  Representative   Louise                                                                    
Stutes,  Sponsor; Jim  Pound, Staff,  Representative Keller;                                                                    
Konrad Jackson, Staff,  Representative Olson; Jerry Burnett,                                                                    
Deputy  Commissioner,   Treasury  Division,   Department  of                                                                    
Revenue.                                                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Cheryl  Brooking, Department  of Law,  Anchorage; Ron  Long,                                                                    
City of Seward, Seward.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 137    HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS                                                                              
                                                                                                                                
          SCS CSHB  137(FIN) was  REPORTED out  of committee                                                                    
          with a  "do pass" recommendation and  with one new                                                                    
          fiscal  impact note  from the  Department of  Fish                                                                    
          and Game.                                                                                                             
HB 156    SCHOOL ACCOUNTABILITY MEASURES; FED. LAW                                                                              
                                                                                                                                
          HB 156 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 254    EXTEND BIG GAME COMMERCIAL SERVICES BOARD                                                                             
                                                                                                                                
          SCS  HB 254(FIN)  was  REPORTED  out of  committee                                                                    
          with  a  "do  pass" recommendation  and  with  one                                                                    
          previously  published   fiscal  impact   note:  FN                                                                    
          2(CED).                                                                                                               
                                                                                                                                
HB 290    EXTENDING THE REAL ESTATE COMMISSION                                                                                  
                                                                                                                                
          HB 290 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
HB 370    MUNICIPAL TAX EXEMPTIONS                                                                                              
                                                                                                                                
          HB 370 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 375    ELECTRONIC TAX RETURNS & REPORTS                                                                                      
                                                                                                                                
          HB 375 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 137(FIN) am                                                                                             
                                                                                                                                
     "An Act raising certain  fees related to sport fishing,                                                                    
     hunting, and  trapping; relating  to the fish  and game                                                                    
     fund;  providing for  the repeal  of the  sport fishing                                                                    
     surcharge  and sport  fishing  facility revenue  bonds;                                                                    
     replacing  the  permanent  sport fishing,  hunting,  or                                                                    
     trapping  identification  card  for  certain  residents                                                                    
     with  an identification  card  valid  for three  years;                                                                    
     relating to  hunting and fishing by  proxy; relating to                                                                    
     fish and  game conservation decals; raising  the age of                                                                    
     eligibility for  a sport fishing, hunting,  or trapping                                                                    
     license exemption for state  residents; raising the age                                                                    
     at  which a  state  resident is  required  to obtain  a                                                                    
     license for  sport fishing,  hunting, or  trapping; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
6:17:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon recounted  the  hearing  history of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
6:18:16 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:19:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
ERIN  SHINE,  STAFF,  SENATOR ANNA  MACKINNON,  clarified  a                                                                    
remark she  had made  earlier in the  day. She  relayed that                                                                    
the conforming  language pertaining  to the  age discrepancy                                                                    
between  60  and  65  years   old  would  not  be  required,                                                                    
according to the Division of Legislative Legal.                                                                                 
                                                                                                                                
6:20:33 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  discussed the  fiscal note  attached to                                                                    
the bill.                                                                                                                       
                                                                                                                                
6:21:55 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked whether the Department  of Law had                                                                    
any concerns with the CS.                                                                                                       
                                                                                                                                
CHERYL   BROOKING,  DEPARTMENT   OF   LAW,  ANCHORAGE   (via                                                                    
teleconference), replied no.                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked whether the sponsor  was satisfied                                                                    
with the CS.                                                                                                                    
                                                                                                                                
JOSHUA  BANKS,  STAFF,  REPRESENTATIVE  TALERICO,  responded                                                                    
that  the  sponsor  was  satisfied  with  the  current  bill                                                                    
version.                                                                                                                        
                                                                                                                                
6:22:40 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to report  SCS CSHB  137(FIN) out                                                                    
of  Committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
SCS CSHB 137(FIN)  was REPORTED out of committee  with a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from the Department of Fish and Game.                                                                                           
                                                                                                                                
6:23:19 PM                                                                                                                    
AT EASE                                                                                                                         
6:24:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 254                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Big Game                                                                     
     Commercial Services Board; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon recounted  the  hearing  history of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE LOUISE  STUTES, SPONSOR, stated that  she was                                                                    
satisfied with the current version of the bill.                                                                                 
                                                                                                                                
Vice-Chair Micciche  discussed the  fiscal note  attached to                                                                    
the bill.                                                                                                                       
                                                                                                                                
6:26:25 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche pointed  out  to the  sponsor that  the                                                                    
bill  required the  board  to submit  to  the legislature  a                                                                    
written report that outlined, in  detail, the boards plan to                                                                    
be financially  solvent by  October 31,  2016. He  said that                                                                    
the committee held  the expectation that the  board would be                                                                    
fully solvent by December 31, 2019.                                                                                             
                                                                                                                                
Representative Stutes  replied that the board  was confident                                                                    
in the ability  to resolve the large debt,  and welcomed the                                                                    
legislative oversight.                                                                                                          
                                                                                                                                
6:27:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche MOVED  to report SCS HB  254(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
SCS HB  254(FIN) was  REPORTED out of  committee with  a "do                                                                    
pass"  recommendation  and  with  one  previously  published                                                                    
fiscal impact note: FN 2(CED).                                                                                                  
                                                                                                                                
6:28:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:29:38 PM                                                                                                                    
RECONVENED                                                                                                                      
CS FOR HOUSE BILL NO. 156(EDC) am                                                                                             
                                                                                                                                
     "An Act  relating to the  duties of the State  Board of                                                                    
     Education  and  Early  Development, the  Department  of                                                                    
     Education  and Early  Development,  school boards,  and                                                                    
     school districts; relating  to public school curriculum                                                                    
     and  assessments; relating  to compliance  with federal                                                                    
     education    laws;    relating   to    public    school                                                                    
     accountability;  relating  to  a  statewide  assessment                                                                    
     plan and review of  education laws and regulations; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
6:29:38 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute  for CSHB  156(EDC)  am,  Work Draft  29-LS0566\R                                                                    
(Glover, 4/15/16).                                                                                                              
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
ERIN  SHINE, STAFF,  SENATOR ANNA  MACKINNON,  spoke to  the                                                                    
changes in the current bill version \R.                                                                                         
                                                                                                                                
6:31:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
6:32:06 PM                                                                                                                    
                                                                                                                                
JIM  POUND,  STAFF,   REPRESENTATIVE  KELLER,  informed  the                                                                    
committee  that  the bill  sponsor  was  satisfied with  the                                                                    
current bill version.                                                                                                           
                                                                                                                                
6:32:43 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  explained that  an accurate  fiscal note                                                                    
would be  forthcoming to  accompany the  bill; additionally,                                                                    
she was allowing for a  time extension for amendments to the                                                                    
bill. She stated that it was  her intention to move the bill                                                                    
from committee the following morning.                                                                                           
                                                                                                                                
HB  156  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
6:33:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:34:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 375(FIN)                                                                                                
                                                                                                                                
     "An Act requiring the electronic submission of a tax                                                                       
     return or report with the Department of Revenue; and                                                                       
     providing for an effective date."                                                                                          
                                                                                                                                
6:35:03 PM                                                                                                                    
                                                                                                                                
KONRAD JACKSON, STAFF,  REPRESENTATIVE OLSON, explained that                                                                    
the   legislation  had   been  introduced   to  assist   the                                                                    
Department of  Revenue in  collecting taxes  from businesses                                                                    
licensed under Title 43.                                                                                                        
                                                                                                                                
6:35:54 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:36:10 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr.  Jackson stated  that the  bill highlighted  the growing                                                                    
practice of  electronic tax filing  of returns  and reports.                                                                    
He   stressed   that   electronic  filing   would   increase                                                                    
efficiency within  the department.  He noted that  Section 1                                                                    
of  the  bill  would  establish  the  electronic  filing  of                                                                    
returns or reports and allowed  for waivers. He related that                                                                    
the house had  amended the bill, changing the  2 year waiver                                                                    
to  a  5  year  waiver.  He  said  that  Section  2  of  the                                                                    
legislation would  allow for civil penalties  for failure to                                                                    
file.  He concluded  that  the  remaining sections  included                                                                    
conforming   amendments,  transitional   language,  and   an                                                                    
effective date.                                                                                                                 
                                                                                                                                
6:37:49 PM                                                                                                                    
                                                                                                                                
JERRY  BURNETT,  DEPUTY   COMMISSIONER,  TREASURY  DIVISION,                                                                    
DEPARTMENT OF REVENUE, related that  71 percent of taxpayers                                                                    
in the state currently used  electronic filing. He felt that                                                                    
increasing  that percentage  would lead  savings within  the                                                                    
department.  He   relayed  that   the  department   had  the                                                                    
capability to receive electronic filings for all tax types.                                                                     
                                                                                                                                
6:39:07 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  asked whether the technical  language in                                                                    
the bill had been accurately drafted.                                                                                           
                                                                                                                                
Mr.  Burnett  replied  that  the   language  would  work  as                                                                    
intended for the department.                                                                                                    
                                                                                                                                
6:39:39 PM                                                                                                                    
                                                                                                                                
Senator  Dunleavy asked  whether there  were incentives  for                                                                    
electronic filing.                                                                                                              
                                                                                                                                
Mr. Burnett stated that  current statute included incentives                                                                    
for  early   filing.  He  said  that   discomfort  had  been                                                                    
expressed  for offering  incentives  for  online filing.  He                                                                    
noted  that  the legislation  offered  a  penalty for  paper                                                                    
filing, rather than an incentive for online filing.                                                                             
                                                                                                                                
6:40:42 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon asked whether  there was extra expense to                                                                    
the business owner for online filing.                                                                                           
                                                                                                                                
Mr.  Burnett replied  that  there should  not  be any  extra                                                                    
expense for business owners for  filing online. He said that                                                                    
most tax payers were capable  of online reporting. He stated                                                                    
that if  online filing  would cost  a business  extra money,                                                                    
the department  could grant an exemption  for filing online.                                                                    
He  thought  that  in  the future  the  language  should  be                                                                    
amended for individual tax payers.                                                                                              
                                                                                                                                
6:41:43 PM                                                                                                                    
                                                                                                                                
Senator Bishop  understood that Section  1 (b)  pertained to                                                                    
the  exemption  for people  living  "off  the grid"  without                                                                    
access to computers.                                                                                                            
                                                                                                                                
Mr. Burnett replied in the affirmative.                                                                                         
                                                                                                                                
6:42:11 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
6:42:37 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
Vice-Chair Micciche discussed FN 1,  noting that // The bill                                                                    
provided  for a  penalty of  one percent  (see back).  // He                                                                    
noted that the only change was the in                                                                                           
                                                                                                                                
6:43:30 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon set aside the bill.                                                                                          
                                                                                                                                
HB  375  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
CS FOR HOUSE BILL NO. 370(CRA) am                                                                                             
                                                                                                                                
     "An Act relating to military facility zones; and                                                                           
     relating to a municipal tax exemption or deferral for                                                                      
     economic development property."                                                                                            
                                                                                                                                
6:44:26 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:45:27 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon OPENEDd the public testimony.                                                                                
                                                                                                                                
6:45:55 PM                                                                                                                    
                                                                                                                                
RON  LONG,  CITY  OF SEWARD,  SEWARD  (via  teleconference),                                                                    
testified  in support  of the  legislation  and the  changes                                                                    
that had  been made to  the bill throughout the  process. He                                                                    
believed   that   ordinances   should   be   carefully   and                                                                    
thoughtfully  drafted  in  order   to  set  out  appropriate                                                                    
protections, performance standards, remedies, and defaults.                                                                     
                                                                                                                                
6:47:23 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
CSHB 370(CRA)am was HEARD and  HELD in committee for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                
6:48:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:48:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon clarified that HB 156 would be on the                                                                        
agenda for the following day.                                                                                                   
                                                                                                                                
HOUSE BILL NO. 290                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Real                                                                         
     Estate Commission; and providing for an effective                                                                          
     date."                                                                                                                     
                                                                                                                                
HB 290 was SCHEDULED but not HEARD.                                                                                             
                                                                                                                                
6:49:35 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 6:49 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

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