Legislature(2015 - 2016)SENATE FINANCE 532

03/26/2015 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Presentation: Overview FY17 Operating Budget
= SB 32 TIMBER SALES
Moved CSSB 32(RES) Out of Committee
= SB 33 FEES FOR TIRES
Moved SB 33 Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 26, 2015                                                                                            
                         1:36 p.m.                                                                                              
                                                                                                                                
1:36:13 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 1:36 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                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 32     TIMBER SALES                                                                                                          
                                                                                                                                
          CSSB 32(RES) was REPORTED out of committee with a                                                                     
          "do pass" recommendation and with previously                                                                          
          published zero fiscal note: FN1 (DNR).                                                                                
                                                                                                                                
SB 33     FEES FOR TIRES                                                                                                        
                                                                                                                                
          SB 33 was REPORTED out of committee with a "do                                                                        
          pass" recommendation and with a new fiscal impact                                                                     
          note from the Department of Revenue.                                                                                  
                                                                                                                                
SENATE BILL NO. 32                                                                                                            
                                                                                                                                
     "An Act relating to the sale of timber on state land;                                                                      
     and providing for an effective date."                                                                                      
                                                                                                                                
1:36:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  discussed the attached fiscal  note. He                                                                    
stated that the  fiscal note was from  Department of Natural                                                                    
Resources, appropriated  for Land  and Water  Resources. The                                                                    
allocation was  for Forest  Management and  Development, and                                                                    
the Office  of Management and Budget  (OMB) component number                                                                    
was 435.  The note  reflected zero fiscal  impact for  FY 16                                                                    
through  FY  21. The  estimated  supplemental  for 2015  was                                                                    
zero, and the estimated capital FY 16 cost was zero.                                                                            
                                                                                                                                
Co-Chair MacKinnon asked  that the last paragraph  of page 2                                                                    
of the note be read into the record.                                                                                            
                                                                                                                                
Vice-Chair  Micciche   read  the   last  paragraph   of  the                                                                    
analysis:                                                                                                                       
                                                                                                                                
     There are  no short-term  impacts on revenue,  but over                                                                    
     time,   revenue  should   increase   as  the   industry                                                                    
     diversifies  to address  energy  needs  and demand  for                                                                    
     locally  sourced wood  products  for communities.  This                                                                    
     legislation will  not place  any additional  demands on                                                                    
     the current  operating budget,  unless the  zero fiscal                                                                    
     note.                                                                                                                      
                                                                                                                                
Vice-Chair Micciche MOVED  to REPORT SB 32  out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSSB 32(RES) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and with  previously  published zero  fiscal                                                                    
note: FN1 (DNR).                                                                                                                
                                                                                                                                
1:38:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:41:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 33                                                                                                            
                                                                                                                                
     "An  Act  relating  to remittance  of  tire  fees;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:41:43 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon noted a spreadsheet  attached to the bill                                                                    
outlining a comparison of tire  fees for each state (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
1:41:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:42:45 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:42:51 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  addressed the spreadsheet,  and wondered                                                                    
if there were any questions from committee members.                                                                             
                                                                                                                                
Vice-Chair Micciche  discussed the attached fiscal  note. He                                                                    
stated  that the  fiscal  note was  from  the Department  of                                                                    
Revenue (DOR), Taxation and  Treasury was the appropriation,                                                                    
and the Tax  Division was the allocation.  The OMB component                                                                    
number was 2476. He remarked  that there was zero impact for                                                                    
FY  16 through  FY 21,  but  the FY  16 showed  a change  in                                                                    
revenues of  minus $5,000. The estimated  supplemental FY 15                                                                    
cost  was zero,  and the  estimated  capital for  FY 16  was                                                                    
zero.  The   fiscal  impact  was  intended   to  not  impact                                                                    
taxpayers. The  estimated loss of  general fund  revenue was                                                                    
due to  a decrease in tax  penalty and interest as  a result                                                                    
of filing and  on-time payments. The timely  pay credit loss                                                                    
was estimated at $2,500, and  the estimated penalty loss was                                                                    
estimated at $2,500, with interest less than $50.                                                                               
                                                                                                                                
Vice-Chair Micciche MOVED  to REPORT SB 33  out of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
SB  33  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and  with a new  fiscal impact note  from the                                                                    
Department of Revenue.                                                                                                          
                                                                                                                                
1:44:56 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:46:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the following day's agenda.                                                                        
                                                                                                                                
Co-Chair Kelly queried the session's total fiscal impact.                                                                       
                                                                                                                                
Co-Chair MacKinnon responded that, until the passage of SB                                                                      
33, there had been zero fiscal impact.                                                                                          
                                                                                                                                
Vice-Chair Micciche felt that SB 33 should not be                                                                               
considered of great fiscal impact, because it would                                                                             
streamline payments.                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
1:49:10 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:49 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB32 Supporting Document - Letter of Support Alaska Board of Forestry.pdf SFIN 3/26/2015 1:30:00 PM
SB 32