Legislature(2011 - 2012)SENATE FINANCE 532

04/04/2011 09:00 AM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 23 FILM PRODUCTION TAX CREDIT TELECONFERENCED
Moved CSSB 23(FIN) Out of Committee
+= SB 92 DENTISTS/DENTAL HYGIENISTS/ASSISTANTS TELECONFERENCED
Moved CSSB 92(FIN) Out of Committee
+= SB 66 AIDEA: NEW MARKETS TAX CREDIT PROGRAM TELECONFERENCED
<Above Item Removed from Agenda>
+= SB 87 GRANTS FOR SENIORS' MEDICAL CARE TELECONFERENCED
Moved SB 87 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 4, 2011                                                                                            
                         9:20 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:20:25 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee                                                                            
meeting to order at 9:20 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lesil McGuire, Vice-Chair                                                                                               
Senator Johnny Ellis                                                                                                            
Senator Dennis Egan                                                                                                             
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Matt Moser, Staff, Senator Ellis; Dana Owen, Staff, Senator                                                                     
Egan; Senator Hollis French                                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 23     FILM PRODUCTION TAX CREDIT                                                                                            
                                                                                                                                
          CSSB (FIN)  23 was REPORTED out  of Committee with                                                                    
          a  "do  pass"  recommendation and  with  two  zero                                                                    
          fiscal notes  from the  Department of  Revenue Tax                                                                    
          Division and the  Department of Commerce Community                                                                    
          and Economic Development.                                                                                             
                                                                                                                                
SB 87     GRANTS FOR SENIORS' MEDICAL CARE                                                                                      
                                                                                                                                
          SB 87  was REPORTED  out of  Committee with  a "do                                                                    
          pass" recommendation and  with accompanying fiscal                                                                    
          note from the  Senate Finance Committee-Department                                                                    
          of Commerce, Community, and Economic Development.                                                                     
                                                                                                                                
SB 92     DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                                 
                                                                                                                                
          CSSB 92 was  REPORTED out of Committee  with a "do                                                                    
          pass" recommendation and  with accompanying fiscal                                                                    
          note from  Senate Finance  Committee-Department of                                                                    
          Commerce, Community, and Economic Development.                                                                        
                                                                                                                                
SENATE BILL NO. 23                                                                                                            
                                                                                                                                
     "An Act  relating to  transferable film  production tax                                                                    
     credits;  and  providing  for   an  effective  date  by                                                                    
     amending the effective dates of  secs. 3 and 4, ch. 63,                                                                    
     SLA 2008."                                                                                                                 
                                                                                                                                
9:22:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  proposed committee substitute,  work draft                                                                    
#27-LS0252\S.  Co-Chair  Stedman  OBJECTED  for  purpose  of                                                                    
discussion.                                                                                                                     
                                                                                                                                
MATT MOSER,  STAFF, SENATOR ELLIS, discussed  the changes in                                                                    
the  committee   substitute  work  draft,  version   S  from                                                                    
previous version M. He stated  that the changes included the                                                                    
sponsor's efforts to address the  concerns of the public, as                                                                    
well as the concerns of the Senate Finance Committee (SFC).                                                                     
                                                                                                                                
Mr.  Moser stated  that section  1  was a  new section,  and                                                                    
pointed out page lines 27 through  30. This was an update to                                                                    
the powers  and duties  section of  the statutes  related to                                                                    
the Legislative  Audit Division (LAD). It  would require LAD                                                                    
to  conduct  a  series  of  three audits  of  the  film  and                                                                    
television production incentive program.  He stated that the                                                                    
first  audit  would be  completed  in  2013, to  assess  the                                                                    
program  at  the  end  of  the initial  five  years  of  the                                                                    
program. He stressed that a  second audit would be completed                                                                    
with  data  from  the  first  five years  of  the  ten  year                                                                    
extension, to  be available  in 2018.  He remarked  that the                                                                    
section would  provide for  a third and  final audit  at the                                                                    
end of the final five years of the ten year extension.                                                                          
                                                                                                                                
Mr. Moser  stated that section  2 amended the  existing film                                                                    
production incentives statutes to  require the Department of                                                                    
Revenue  (DOR)   to  provide  a   certificate  for   a  film                                                                    
production incentive.  He stated that  section 3 and  4 also                                                                    
added   references   to   the  film   production   incentive                                                                    
certificates.                                                                                                                   
                                                                                                                                
Mr.  Moser looked  at  section 5,  page 3,  on  line 17.  He                                                                    
stated that  the period  that the tax  credit could  be used                                                                    
was changed  from 3 years to  6 years. He remarked  that the                                                                    
change was made to allow  for more flexibility and value for                                                                    
Alaska corporate income  tax payers to use  the credits over                                                                    
additional tax years.                                                                                                           
Mr. Moser  addressed section 6,  and stated that it  was the                                                                    
same as  section 1 of  version M. This section  created $200                                                                    
million  in   additional  film  and   television  production                                                                    
credits  in the  ten year  extension. This  would allow  for                                                                    
$100  million  incentives  for the  first  five  years,  and                                                                    
allowed for $100  million in incentives for  the second five                                                                    
years of the extension.                                                                                                         
                                                                                                                                
Mr. Moser  stated that section  7, page  3, lines 24  and 25                                                                    
created two  new subsections. He remarked  that subsection G                                                                    
created  a cap  of 44  percent on  the total  amount of  tax                                                                    
credits available  for a single  production. He  stated that                                                                    
subsection H would authorize the  pooling of film production                                                                    
incentive  credits, which  would clarify  in statute  that a                                                                    
person or entity may buy and pool multiple credits.                                                                             
                                                                                                                                
Mr. Moser  remarked that section  8 would add to  the duties                                                                    
of  the film  office additional  reporting requirements.  He                                                                    
stated that the film office  would be required to report the                                                                    
total amount  paid by productions qualifying  for incentives                                                                    
to Alaskan businesses and Alaskan residents.                                                                                    
                                                                                                                                
Mr. Moser stated  that section 9, lines 22  through 24 would                                                                    
add to the duties of  the film officer requirement to design                                                                    
a logo that would represent  the film office. He stated that                                                                    
the logo  would be  included in films  that qualify  for the                                                                    
incentives.                                                                                                                     
                                                                                                                                
Mr. Moser reported  that section 10 was the  same as section                                                                    
2 of  version M. It  would change the  qualified expenditure                                                                    
period from 24 to 36 months.                                                                                                    
                                                                                                                                
9:27:04 AM                                                                                                                    
                                                                                                                                
Mr. Moser looked at section 11,  page 5, line 11, and stated                                                                    
that it would  add a subsection to  include Natural Resource                                                                    
Development in the state, as  one of the considerations when                                                                    
determining whether  a production  was in the  best interest                                                                    
of the state.                                                                                                                   
                                                                                                                                
Mr. Moser stated  that section 12 was the same  as section 3                                                                    
from previous version M.                                                                                                        
                                                                                                                                
Mr. Moser remarked that section  13 was a conforming statute                                                                    
that  would  deal  with  subsection I,  that  was  added  by                                                                    
section 17.  He stated that  subsection I was  a requirement                                                                    
that a  thank you to the  state of Alaska and  Department of                                                                    
Commerce  be included  to qualify  for  the film  production                                                                    
incentive.                                                                                                                      
                                                                                                                                
Mr.  Moser   stated  that  section   14  changed   the  base                                                                    
production  incentive  for non-fiction  television  programs                                                                    
from 30 to 20 percent.                                                                                                          
                                                                                                                                
Mr.  Moser  remarked  that  section  15,  page  6,  line  2,                                                                    
increased  the credits  available  for qualified  production                                                                    
expenditures made in a rural area from 2 to 6 percent.                                                                          
                                                                                                                                
Mr. Moser  stated that section 16,  page 6, lines 10  and 12                                                                    
added  a   requirement  for   verification  by   an  Alaskan                                                                    
independent    certified     public    accountant    include                                                                    
verification  that there  were no  outstanding balances  for                                                                    
qualified expenditures due to a person in Alaska.                                                                               
                                                                                                                                
Mr. Moser  addressed section  17, page  6, lines  14 through                                                                    
22, and stated that it was the aforementioned subsection I.                                                                     
                                                                                                                                
Mr. Moser stated  that section 18 was the same  as section 4                                                                    
of version M.                                                                                                                   
                                                                                                                                
Mr. Moser  explained that section 19  updated the definition                                                                    
of "rural" to  include communities of a population  of up to                                                                    
10,000 that were not connected  by road or rail to Anchorage                                                                    
or Fairbanks.                                                                                                                   
                                                                                                                                
Mr. Moser stated  that sections 20 through 23  were the same                                                                    
as sections 5 though 8  from version M. It updated statutory                                                                    
references to match the program extension.                                                                                      
                                                                                                                                
Senator Thomas wondered  if there was any  attempt to gather                                                                    
information  about indirect  economic impacts  and activity,                                                                    
outside  of traditional  state audits.  Mr. Moser  responded                                                                    
that some film companies had performed independent audits.                                                                      
                                                                                                                                
Senator Olson wondered the stance  of DOR related to section                                                                    
7 of  the bill. Mr.  Moser replied that DOR  had contributed                                                                    
to the formulation of the language.                                                                                             
                                                                                                                                
Senator  Ellis  supported  the  upgrades  in  the  committee                                                                    
substitute, specifically related to rural definitions.                                                                          
                                                                                                                                
9:33:11 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman noted the two fiscal notes.                                                                                    
                                                                                                                                
Senator  Ellis  MOVED  to  report   CSSB  23  (FIN)  out  of                                                                    
Committee  with  individual   recommendations  and  the  two                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  (FIN) 23  was REPORTED  out  of Committee  with a  "do                                                                    
pass"  recommendation and  with two  zero fiscal  notes from                                                                    
the Department  of Revenue Tax  Division and  the Department                                                                    
of Commerce Community and Economic Development.                                                                                 
                                                                                                                                
                                                                                                                                
SENATE BILL NO. 92                                                                                                            
                                                                                                                                
    "An Act relating to dental hygienists, dentists, dental                                                                     
    assistants, dental hygiene, and dentistry."                                                                                 
                                                                                                                                
9:34:05 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:35:07 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:35:18 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  proposed committee substitute,  work draft                                                                    
27-LS0403\E.  Co-Chair  Stedman   OBJECTED  for  purpose  of                                                                    
discussion.                                                                                                                     
                                                                                                                                
DANA  OWEN, STAFF,  SENATOR EGAN,  explained the  changes in                                                                    
the work draft CSSB 92. He  pointed out page 9, lines 16 and                                                                    
17,  which was  a  correction of  the  federal agency:  "The                                                                    
United States  Indian Health Service." He  stated that lines                                                                    
23 through  28 corrected  the sites to  the federal  law. He                                                                    
explained  that  page  16  showed   a  new  section  31.  He                                                                    
explained  that   the  language  in  the   bill  for  dental                                                                    
hygienists also applied  to dentists. He looked  at page 19,                                                                    
and noted that the language was corrected.                                                                                      
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman explained the fiscal notes.                                                                                    
                                                                                                                                
Senator  Olson  wondered if  there  was  input from  medical                                                                    
corporations,  whose dental  programs would  be affected  by                                                                    
the bill.   Mr. Owen  replied that the Alaska  Native Tribal                                                                    
Health Consortium expressed support of the bill.                                                                                
                                                                                                                                
Senator Olson specifically wondered  if the private practice                                                                    
medical  providers  in rural  Alaska  had  commented on  the                                                                    
bill. Mr.  Owen replied  that there  had been  no individual                                                                    
response  from private  providers, and  only heard  response                                                                    
from the Dental Society.                                                                                                        
                                                                                                                                
Co-Chair Hoffman  MOVED to report  CSSB 92 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSSB  92 was  REPORTED out  of  Committee with  a "do  pass"                                                                    
recommendation  and  with   accompanying  fiscal  note  from                                                                    
Senate Finance Committee-Department  of Commerce, Community,                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
SENATE BILL NO. 87                                                                                                            
                                                                                                                                
     "An  Act establishing  a program  in the  Department of                                                                    
     Commerce,  Community,  and   Economic  Development  for                                                                    
     payment of grants to health  care providers for care of                                                                    
     patients who are 65 years of age or older."                                                                                
                                                                                                                                
9:40:20 AM                                                                                                                    
                                                                                                                                
SENATOR HOLLIS FRENCH,  explained SB 87. He  stated that the                                                                    
bill  was  designed  to  close the  Medicare  gap  that  had                                                                    
emerged over  the few years  prior. There was a  gap between                                                                    
what  Medicare pays  and what  it  actually costs  to see  a                                                                    
doctor. He remarked  that because of that  gap, some doctors                                                                    
had  stopped  seeing patients,  to  the  detriment of  those                                                                    
individuals. The bill  seeks to address the  gap through new                                                                    
grants,  which   were  allowed  in   an  amendment   in  the                                                                    
Affordable Care Act.                                                                                                            
                                                                                                                                
Co-Chair  Stedman   referred  to  the  first   hearing,  and                                                                    
specifically  Senator Olson's  question regarding  access to                                                                    
dental care  and prescription drug coverage.  He stated that                                                                    
Senator French had provided a  written letter in response to                                                                    
that inquiry.                                                                                                                   
                                                                                                                                
Co-Chair Stedman discussed the new fiscal note                                                                                  
                                                                                                                                
Senator  McGuire requested  that the  program be  evaluated,                                                                    
and  a  report  be  provided  to the  committee  as  to  the                                                                    
effectiveness  of the  program.  Senator  French felt  there                                                                    
would be no problem obtaining that report.                                                                                      
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  SB 87  out of  Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  87  was REPORTED  out  of  Committee  with a  "do  pass"                                                                    
recommendation and  with accompanying  fiscal note  from the                                                                    
Senate Finance Committee-Department  of Commerce, Community,                                                                    
and Economic Development.                                                                                                       
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:44:17 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:44 AM.                                                                                           
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
CSSB 23 Version U (FIN).pdf SFIN 4/4/2011 9:00:00 AM
SB 23
SB 23 Additional Support Letters.pdf SFIN 4/4/2011 9:00:00 AM
SB 23
SB 23 Markel Letter of Concern.pdf SFIN 4/4/2011 9:00:00 AM
SB 23
SB 87 Fiscal Note SFIN 040411 .pdf SFIN 4/4/2011 9:00:00 AM
SB 87