Legislature(2011 - 2012)

04/13/2012 01:30 PM FIN


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 13, 2012                                                                                            
                         4:18 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
4:18:23 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 4:18 p.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                                                                                                                  
                                                                                                                                
Representative  Mia  Costello,  Sponsor; Dana  Owen,  Staff,                                                                    
Senator Dennis Egan; Dan  Habeger, Division of Corporations,                                                                    
Business, Licensing,  Department of Commerce,  Community and                                                                    
Economic  Development; Jim  Puckett, Division  of Retirement                                                                    
and   Benefits,   Department    of   Administration;   Aaron                                                                    
Schroeder,  Veterans   Caucus  Staff,   Representative  Bill                                                                    
Thomas.                                                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Barry    Christensen,   Alaska    Pharmacists   Association,                                                                    
Ketchikan; Dirk White, State Board  of Pharmacy, Sitka; Fred                                                                    
Brown,  Executive   Director,  Healthcare   Cost  Management                                                                    
Corporation, Fairbanks.                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 217    PHARMACY AUDITS                                                                                                       
                                                                                                                                
          CSSB 217(FIN)  was REPORTED out of  committee with                                                                    
          a  "do pass"  recommendation  and with  previously                                                                    
          published fiscal notes: FN1 (ADM) and FN2 (CED).                                                                      
                                                                                                                                
CSHB 252(FIN)                                                                                                                   
          SMALL BUSINESS INCOME TAX EXEMPTION                                                                                   
                                                                                                                                
          CS  HB 252  (FIN)  was REPORTED  out of  committee                                                                    
          with   a  "do   pass"   recommendation  and   with                                                                    
          previously  published  fiscal   impact  note:  FN2                                                                    
          (REV).                                                                                                                
                                                                                                                                
CSHB 282(FIN)                                                                                                                   
          MILITARY TRAINING CREDIT/TEMP LICENSE                                                                                 
                                                                                                                                
          CSHB 282(FIN)  was REPORTED out of  committee with                                                                    
          a   "do  pass"   recommendation  and   with  three                                                                    
          previously  published   zero  fiscal   notes:  FN1                                                                    
          (EED),  FN2 (LWD),  FN3 (UA);  and one  previously                                                                    
         published fiscal impact note: FN5 (CED).                                                                               
                                                                                                                                
CSHB 301(FIN)                                                                                                                   
          BOATING REGULATION SUNSET                                                                                             
                                                                                                                                
          CSHB 301(FIN)  was REPORTED out of  committee with                                                                    
          a  "do pass"  recommendation  and with  previously                                                                    
          published fiscal note: FN1 (DNR).                                                                                     
                                                                                                                                
SENATE BILL NO. 217                                                                                                           
                                                                                                                                
     "An Act establishing procedures and guidelines for                                                                         
     auditing pharmacy records; and providing for an                                                                            
     effective date."                                                                                                           
                                                                                                                                
4:19:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman MOVED to ADOPT committee substitute for                                                                        
Senate Bill 217 Work Draft 27-LS1411\E (Martin 4/13/12).                                                                        
                                                                                                                                
Co-Chair Stedman OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
DANA OWEN, STAFF, SENATOR DENNIS EGAN, explained the                                                                            
changes in Version E:                                                                                                           
                                                                                                                                
     Page 2, line 9; after the words "typographical error",                                                                     
     the words "unless the auditor finds proof of intent to                                                                     
     commit fraud" are deleted.                                                                                                 
                                                                                                                                
     Page 2, line 31; after the word "unless" at the end of                                                                     
     the sentence the words "there is proof of intent to                                                                        
     commit fraud" are deleted.                                                                                                 
                                                                                                                                
     Page 3, line 28; before the words "state Medicaid                                                                          
     programs" the words "an investigation or audit by a                                                                        
     governmental agency" have been deleted.                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  no                                                                    
further objection Work Draft 27-LS1411\E was ADOPTED.                                                                           
                                                                                                                                
Senator Egan urged committee support for the legislation.                                                                       
                                                                                                                                
DAN HABEGER, DIVISION  OF CORPORATIONS, BUSINESS, LICENSING,                                                                    
DEPARTMENT OF COMMERCE,  COMMUNITY AND ECONOMIC DEVELOPMENT,                                                                    
testified that the department was neutral on the bill.                                                                          
                                                                                                                                
JIM   PUCKETT,   DIVISION   OF  RETIREMENT   AND   BENEFITS,                                                                    
DEPARTMENT  OF ADMINISTRATION,  expressed that  the division                                                                    
still had concerns with some of the language in the bill.                                                                       
                                                                                                                                
4:23:30 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman noted  the two  previously published  zero                                                                    
fiscal  notes  from  the Department  of  Administration  and                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
4:23:50 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
BARRY    CHRISTENSEN,   ALASKA    PHARMACISTS   ASSOCIATION,                                                                    
KETCHIKAN (via teleconference), urged support for SB 217.                                                                       
                                                                                                                                
4:25:52 PM                                                                                                                    
                                                                                                                                
DIRK   WHITE,   STATE   BOARD  OF   PHARMACY,   SITKA   (via                                                                    
teleconference), testified in support of SB 217.                                                                                
                                                                                                                                
4:26:33 PM                                                                                                                    
                                                                                                                                
FRED BROWN,  EXECUTIVE DIRECTOR, HEALTHCARE  COST MANAGEMENT                                                                    
CORPORATION,   FAIRBANKS  (via   teleconference),  expressed                                                                    
concern  with   the  broad   language  in   the  legislation                                                                    
pertaining  to  the reduction  of  the  legal and  fiduciary                                                                    
integrity of the  ability of trustees to  monitor and ensure                                                                    
that the appropriate amounts were  being paid.  He clarified                                                                    
that government agencies  should be referred to  in the bill                                                                    
as  "government  entities"  in order  to  include  boroughs,                                                                    
municipalities, and  school districts.  He suggested  that a                                                                    
workgroup  be  established in  an  attempt  to evaluate  and                                                                    
better understand the issues.                                                                                                   
                                                                                                                                
Co-Chair Stedman CLOSED public testimony.                                                                                       
                                                                                                                                
4:29:37 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSSB  217(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  217(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation  and  with previously  published  zero                                                                    
fiscal notes: FN1 (DOA) and FN2 (CED).                                                                                          
                                                                                                                                
CS FOR HOUSE BILL NO. 282(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating   to  applying  military  education,                                                                    
     training, and service  credit to occupational licensing                                                                    
     and  certain  postsecondary  education  and  employment                                                                    
     training  requirements;   providing  for   a  temporary                                                                    
     occupational  license  for qualified  military  service                                                                    
     members; and providing for an effective date."                                                                             
                                                                                                                                
4:30:47 PM                                                                                                                    
                                                                                                                                
AARON SCHROEDER, VETERANS  CAUCUS STAFF, REPRESENTATIVE BILL                                                                    
THOMAS, testified  that the  legislation asked  the Division                                                                    
of  Professional Licensing,  University of  Alaska, and  the                                                                    
Department of  Labor and  Workforce Development  to evaluate                                                                    
military training  and education and assign  civilian credit                                                                    
where appropriate.                                                                                                              
                                                                                                                                
Co-Chair Stedman  noted the four  fiscal notes.  He detailed                                                                    
the  only note  with fiscal  impact from  the Department  of                                                                    
Commerce,  Community   and  Economic  Development   for  the                                                                    
expedited  regulatory  process as  a  result  of moving  the                                                                    
effective date up one year to December 31, 2012.                                                                                
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  282(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  notes. There being NO  OBJECTION it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  282(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with  three previously  published                                                                    
zero fiscal notes:  FN1 (EED), FN2 (LWD), FN3  (UA); and one                                                                    
previously published fiscal impact note: FN5 (CED).                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 301(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating  to enforcement  of  boating  safety                                                                    
     statutes;  amending  the  termination date  of  certain                                                                    
     statutes   relating   to   the  use,   operation,   and                                                                    
     regulation of  boats, a uniform state  waterway marking                                                                    
     system, and civil liability  for boat owners; providing                                                                    
     for an  effective date by  amending the  effective date                                                                    
     of secs. 3,  5, 7, 9, 11,  14, 16, 18, 20,  23, 26, and                                                                    
     27, ch. 28, SLA 2000,  as amended; and providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
4:32:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman noted the fiscal notes.                                                                                        
                                                                                                                                
Co-Chair  Hoffman  MOVED  to report  CSHB  301(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  301(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
impact note: FN1 (DNR).                                                                                                         
                                                                                                                                
CS FOR HOUSE BILL NO. 252(FIN)                                                                                                
                                                                                                                                
     "An  Act exempting  certain small  businesses from  the                                                                    
     corporate income  tax; and  providing for  an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
4:33:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MIA  COSTELLO,  SPONSOR explained  that  the                                                                    
legislation   would   exempt    certain   small   qualifying                                                                    
businesses from  the state's corporate income  tax until the                                                                    
business reached  $50 million in gross  aggregate assets, or                                                                    
after the  passage of a  period of  10 years. The  intent of                                                                    
the bill was  to attract new corporate income  tax payers in                                                                    
industries that did not currently exist in the state.                                                                           
                                                                                                                                
Co-Chair Stedman  noted the fiscal note  from the Department                                                                    
of Revenue for an additional corporate income tax auditor.                                                                      
                                                                                                                                
Senator  Ellis   MOVED  to  report  CSHB   252(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  252(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
impact note: FN2 (REV).                                                                                                         
                                                                                                                                
4:34:43 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
5:53:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
5:53:35 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 5:53 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects