Legislature(2015 - 2016)SENATE FINANCE 532

04/17/2015 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 123 Presentation: Overview FY17 Operating Budget
Moved SCS CSHB 123(FIN) Out of Committee
= HB 135 PUBLIC EMPLOYEE ROTH CONTRIBUTIONS
Moved HB 135 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 50 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
+= HB 105 AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT TELECONFERENCED
Scheduled but Not Heard
+= HB 176 REPEAL ST EMPL SALARY INCREASE TELECONFERENCED
Moved CSHB 176(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 17, 2015                                                                                            
                         1:54 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:54:14 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 1:54 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Cynthia  Franklin,  Director,   Alcoholic  Beverage  Control                                                                    
Board,  Department  of   Commerce,  Community  and  Economic                                                                    
Development;  Chris  Hladick,  Commissioner,  Department  of                                                                    
Commerce,   Community,  and   Economic  Development;   Bruce                                                                    
Schulte,  Spokesman,  Coalition   for  Responsible  Cannabis                                                                    
Legislation,  Juneau;  James  Barrett,  Self,  Juneau;  Kate                                                                    
Burkhart,  Executive Director,  Advisor Board  on Alcoholism                                                                    
and Drug  Abuse, Department of  Health and  Social Services,                                                                    
Juneau;  Andy  Mills,  Legislative  Liaison,  Department  of                                                                    
Administration; Kathy  Lea, Chief Pension  Officer, Division                                                                    
of  Retirement and  Benefits, Department  of Administration;                                                                    
Lacey  Sanders,  Legislative  Analyst,  Legislative  Finance                                                                    
Division.                                                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kirsten  Myles,  Vice   President,  Alaska  Cabaret,  Hotel,                                                                    
Restaurant and Retailers Association, Anchorage.                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 105(FIN)                                                                                                                   
          AIDEA: BONDS;PROGRAMS;LOANS;LNG PROJECT                                                                               
                                                                                                                                
          CSHB 105(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
CSHB 123(JUD) am                                                                                                                
          ESTABLISH MARIJUANA CONTROL BOARD                                                                                     
                                                                                                                                
          SCS CSHB  123(FIN) was  REPORTED out  of committee                                                                    
          with a  "do pass" recommendation and  with two new                                                                    
          fiscal  notes  from  the Department  of  Commerce,                                                                    
          Community   and  Economic   Development  and   the                                                                    
          Department of Administration.                                                                                         
                                                                                                                                
          CSHB 213 (JUD) was HEARD and HELD in committee                                                                        
          for further consideration.                                                                                            
                                                                                                                                
HB 135    PUBLIC EMPLOYEE ROTH CONTRIBUTIONS                                                                                    
                                                                                                                                
          HB 135  was REPORTED out  of committee with  a "do                                                                    
          pass"  recommendation  and   with  one  previously                                                                    
          published zero fiscal note: FN1 (ADM).                                                                                
                                                                                                                                
HB 176    REPEAL ST EMPL SALARY INCREASE                                                                                        
                                                                                                                                
          CSHB 176(FIN)  was REPORTED out of  committee with                                                                    
          a   "do  pass"   recommendation  and   with  three                                                                    
          previously  published  fiscal  impact  notes:  FN1                                                                    
          (AJS), FN2 (GOV), and FN3 (LEG).                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 123(JUD) am                                                                                             
                                                                                                                                
     "An  Act  establishing  the  Marijuana  Control  Board;                                                                    
     relating  to the  powers and  duties  of the  Marijuana                                                                    
     Control  Board; relating  to the  appointment, removal,                                                                    
     and  duties of  the director  of the  Marijuana Control                                                                    
     Board;  relating  to  the  Alcoholic  Beverage  Control                                                                    
     Board; and providing for an effective date."                                                                               
                                                                                                                                
1:55:10 PM                                                                                                                    
                                                                                                                                
CYNTHIA  FRANKLIN,  DIRECTOR,   ALCOHOLIC  BEVERAGE  CONTROL                                                                    
BOARD,  DEPARTMENT  OF   COMMERCE,  COMMUNITY  AND  ECONOMIC                                                                    
DEVELOPMENT,  testified   that  the  bill  would   create  a                                                                    
Marijuana  Control  Board;  the  board would  consist  of  5                                                                    
members  and would  be  served  by the  same  agency as  the                                                                    
Alcoholic Beverage  Control Board  (ABC), with  shared staff                                                                    
and  resources. She  stated that  the fiscal  note reflected                                                                    
the cost  of regulating marijuana  in the state,  the actual                                                                    
money  expended for  the creation  of the  board, and  other                                                                    
costs  associated.  She  asserted  that  the  administration                                                                    
strongly believed  that regulating  marijuana in a  safe and                                                                    
responsible  manner  was   an  accomplishable  goal  through                                                                    
passage of the legislation. She  shared that the board would                                                                    
be  comprised  of  individuals representing  the  areas  of;                                                                    
Public Safety, Public Health,  the marijuana industry, rural                                                                    
representation,  and  an individual  from  the  public or  a                                                                    
second representative  of the  marijuana industry.  She said                                                                    
that the board would be subject to a sunset review.                                                                             
                                                                                                                                
1:57:57 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:59:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CHRIS   HLADICK,  COMMISSIONER,   DEPARTMENT  OF   COMMERCE,                                                                    
COMMUNITY,  AND  ECONOMIC  DEVELOPMENT, testified  that  the                                                                    
department  supported the  legislation. He  believed that  a                                                                    
board needed to  be established quickly in  order to realize                                                                    
the voter's initiative.                                                                                                         
                                                                                                                                
2:00:02 PM                                                                                                                    
                                                                                                                                
Ms.  Franklin  spoke  to the  sectional  analysis  (copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Section 1:  Amends Title 4  naming the director  of the                                                                  
     Alcoholic  Beverage Control  Board as  the director  of                                                                    
     the  Marijuana Control  Board. Establishes  the process                                                                    
     for appointment and removal of the director.                                                                               
                                                                                                                              
     Section 2:  Establishes the 5 member  Marijuana Control                                                                  
     Board  in Title  17  with designated  seats for  public                                                                    
     health, rural, public safety, and industry.                                                                                
                                                                                                                              
     Section  3:  Establishes  terms  of  office  for  board                                                                  
     members  and chair,  sets  out  requirements for  board                                                                    
     meetings  and  provides  for  board  member  per  diem.                                                                    
     Outlines the powers and duties  of the board to propose                                                                    
     and  adopt  regulations, establish  qualifications  for                                                                    
     licensure,  review  applications  for  licensure,  hear                                                                    
     appeals from  the actions of  the director,  reduce the                                                                    
     area of  a licensed  premise, and to  adopt regulations                                                                    
     according   to  AS   44.63.  Establishes   the  board's                                                                    
     enforcement powers as mirroring  those of the Alcoholic                                                                    
     Beverage  Control  Board   outlined  in  AS  04.06.110.                                                                    
     Provides for  appointment and  removal of  the director                                                                    
     and establishes the duties of the director.                                                                                
                                                                                                                              
     Section 4: Adds a  new subsection prohibiting marijuana                                                                  
     establishments  from  being registered  if  individuals                                                                    
     who have  been convicted  of a  felony within  the last                                                                    
     five years  or who  are currently serving  probation or                                                                    
     parole for  a felony fare  an owner, officer,  or agent                                                                    
     of the establishment.                                                                                                      
                                                                                                                              
                                                                                                                                
2:01:31 PM                                                                                                                    
                                                                                                                                
Ms. Franklin continued with the sectional analysis:                                                                             
                                                                                                                                
     Section  5: Defines  board in  AS 17.38.900(1)  to mean                                                                  
     the Marijuana Control Board created by this act.                                                                           
                                                                                                                                
     Section 6:  Defines "director" as  the director  of the                                                                  
     Alcoholic Beverage Control  Board and Marijuana control                                                                    
     board. Defines  "registration" to mean  registration or                                                                    
     licensure as determined by regulation.                                                                                     
                                                                                                                              
     Section  7:  Amends the  duties  of  the Department  of                                                                  
     Commerce,  Community,   and  Economic   Development  to                                                                    
     include providing  clerical and  administrative support                                                                    
     for the Marijuana Control Board.                                                                                           
                                                                                                                              
     Section 8:  Places the Marijuana  Control Board  on the                                                                  
     list of entities whose procedural  hearings are held by                                                                    
     the Office of Administrative Hearings.                                                                                     
                                                                                                                              
     Section 9: Provides for a sunset date.                                                                                   
                                                                                                                              
     Section   10:  Amends   uncodified   law  for   initial                                                                  
     appointment of board members.                                                                                              
                                                                                                                              
     Section  11: Provides  for transition  regulations such                                                                  
     that  if the  Alcoholic Beverage  Control Board  adopts                                                                    
     any regulations  before the Marijuana Control  Board is                                                                    
     created,   those   regulations  can   be   implemented,                                                                    
     enforced, amended or repealed  by the Marijuana Control                                                                    
     Board  and provides  that  regulations  adopted by  the                                                                    
     board in  any transition  period take effect  after the                                                                    
     effective date of the act.                                                                                               
                                                                                                                              
     Section 12: Provides for an immediate effective date.                                                                    
                                                                                                                                
2:02:48 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:03:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator  Bishop understood  that  four  new law  enforcement                                                                    
positions would be established as a result of the bill.                                                                         
                                                                                                                                
Ms. Franklin  responded that the  fiscal note  reflected the                                                                    
addition of  three additional officers to  the five existing                                                                    
officers currently employed by the ABC Board.                                                                                   
                                                                                                                                
2:04:18 PM                                                                                                                    
                                                                                                                                
Senator   Dunleavy   asked   whether  there   would   be   a                                                                    
representative  of the  federal  government  present on  the                                                                    
board.                                                                                                                          
                                                                                                                                
Ms.  Franklin  replied that  the  guidance  provided by  the                                                                    
federal government in the Coal  Memorandum provided that the                                                                    
state must  strictly regulate marijuana.  She said  that the                                                                    
hope was that a scheme  would be established that was strict                                                                    
enough  to appease  the federal  government. She  added that                                                                    
the federal government would not  be providing assistance in                                                                    
regard to establishing or enforcing the regulations.                                                                            
                                                                                                                                
2:05:07 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche opined  the lack of a seat  on the board                                                                    
for urban representation. He worried  that urban areas might                                                                    
not be properly represented.                                                                                                    
                                                                                                                                
Ms. Franklin  stated that  the rural  area component  of the                                                                    
board had  been inspired by  the current composition  of the                                                                    
ABC Board, which  had the minimum requirement  that there be                                                                    
one representative from  a rural area to  assure bush Alaska                                                                    
had a voice on the statewide  board. She said that the other                                                                    
designations  did  not   have  geographic  components,  only                                                                    
background  components, and  people filling  those positions                                                                    
could be from urban areas of the state.                                                                                         
                                                                                                                                
2:06:53 PM                                                                                                                    
                                                                                                                                
Vice-Chair   Micciche  about   the  five-person   board.  He                                                                    
lamented that  there was not  a requirement that one  of the                                                                    
positions be filled by an urban representative.                                                                                 
                                                                                                                                
Ms. Franklin  stated that  the composition  and size  of the                                                                    
proposed board  was designed  to mirror  the ABC  board. She                                                                    
said that the designated  seats represented changes that had                                                                    
been   negotiated  through   the   stakeholder  process   in                                                                    
reviewing Title 4 and issues  related to alcohol regulation.                                                                    
She  warned  that  solely  designating  seats  for  industry                                                                    
representatives could  lead to an industry  dominated board;                                                                    
the Public Safety  and Public Health seats  were inspired by                                                                    
the Title 4  work, and all of the seats  would be subject to                                                                    
legislative confirmation.                                                                                                       
                                                                                                                                
2:08:50 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon queried the sunset  date of June 30, 2017                                                                    
reflected on  page 6,  section 9.  She wondered  whether the                                                                    
date provided for  enough time for auditors  to collect data                                                                    
to use in evaluating the success of the program.                                                                                
                                                                                                                                
Ms. Franklin responded that the  version that had passed out                                                                    
of the house  had reflected a sunset date of  June 30, 2018;                                                                    
the  change in  the  date  had been  made  in the  committee                                                                    
substitute (CS) out of Senate  Labor and Commerce Committee.                                                                    
She understood  that the  change had  been made  because the                                                                    
board was  new and should  have an earlier review  date. She                                                                    
shared that  HB 116  had just  passed through  the committee                                                                    
and  set the  sunset date  for the  ABC Board  for June  30,                                                                    
2018, which  could result  in the  two boards,  living under                                                                    
one agency, but  being audited a year apart.  She added that                                                                    
auditing work generally began in  advance of the sunset date                                                                    
and that licenses might not be  in place in time of the 2017                                                                    
date.  She asserted  that the  department would  prefer that                                                                    
the dates aligned, but did not  want to see the bill held up                                                                    
over the sunset date.                                                                                                           
                                                                                                                                
Co-Chair MacKinnon  stated that she had  wanted to highlight                                                                    
the difference between the house and senate proposals.                                                                          
                                                                                                                                
2:11:46 PM                                                                                                                    
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:12:25 PM                                                                                                                    
                                                                                                                                
BRUCE   SCHULTE,   SPOKESMAN,  COALITION   FOR   RESPONSIBLE                                                                    
CANNABIS LEGISLATION,  JUNEAU, testified  in support  of the                                                                    
bill. He  believed that a dedicated  marijuana control board                                                                    
would be crucial to the  successful development of marijuana                                                                    
regulations.  He asserted  that the  industry would  pay off                                                                    
the  cost   of  the  legislation  several   times  over.  He                                                                    
discussed  the  fiscal  note  and  suggested  that  the  tax                                                                    
revenue from  the marijuana industry  could be in  the range                                                                    
of $7 million  per year, increasing to  $23 million annually                                                                    
by 2020. He  stated that the ballot measure  established a 9                                                                    
month regulatory  process that  began on February  24, 2015.                                                                    
He said  that no regulations  had been established,  but the                                                                    
timeline had not changed, leaving  only 7 months to complete                                                                    
the  regulatory  work.  He  reiterated  that  the  bill  was                                                                    
critical to the successful  implementation of Ballot Measure                                                                    
2.                                                                                                                              
                                                                                                                                
2:15:59 PM                                                                                                                    
                                                                                                                                
KIRSTEN  MYLES,  VICE   PRESIDENT,  ALASKA  CABARET,  HOTEL,                                                                    
RESTAURANT   AND  RETAILERS   ASSOCIATION,  ANCHORAGE   (via                                                                    
teleconference),  testified  in  support of  the  bill.  She                                                                    
stated  that resources  should  not be  taken  from the  ABC                                                                    
Board in order to regulate marijuana.                                                                                           
                                                                                                                                
2:17:41 PM                                                                                                                    
                                                                                                                                
JAMES  BARRETT, SELF,  JUNEAU, testified  in support  of the                                                                    
bill.  He  said  that  the legislation  would  buy  Alaskans                                                                    
safety  education, industry  direction for  law enforcement,                                                                    
the  ability to  benefit  from a  new international  market,                                                                    
lower  litigation costs,  and put  the  state in  compliance                                                                    
with the  federal government, for  less than $2  per Alaskan                                                                    
resident.                                                                                                                       
                                                                                                                                
2:18:43 PM                                                                                                                    
                                                                                                                                
KATE   BURKHART,  EXECUTIVE   DIRECTOR,  ADVISOR   BOARD  ON                                                                    
ALCOHOLISM AND  DRUG ABUSE, DEPARTMENT OF  HEALTH AND SOCIAL                                                                    
SERVICES, JUNEAU,  testified in support of  the legislation.                                                                    
She  discussed the  importance  of  not diverting  resources                                                                    
from  the  ABC  Board  in order  to  manage  marijuana.  She                                                                    
related that  the state's  investment in  prevention efforts                                                                    
related  to alcohol  had  proven  successful. She  furthered                                                                    
that the "two board, one  staff" model was effective because                                                                    
the Alaska  Mental Health  Board and  the Advisory  Board on                                                                    
Alcoholism and Drug Abuse used  the same model with positive                                                                    
results. She concluded  that the bill met  the Public Safety                                                                    
and  Public Health  concerns  related  to implementation  of                                                                    
Ballot Measure 2 in a fiscally responsible way.                                                                                 
                                                                                                                                
2:21:28 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
HB  123  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 135                                                                                                            
                                                                                                                                
     "An Act establishing a Roth contribution program for                                                                       
     the public employees' deferred compensation program;                                                                       
     and providing for an effective date."                                                                                      
                                                                                                                                
2:22:10 PM                                                                                                                    
                                                                                                                                
ANDY    MILLS,    LEGISLATIVE   LIAISON,    DEPARTMENT    OF                                                                    
ADMINISTRATION, explained  that the legislation  would allow                                                                    
for a Roth  457 contribution option for  state employees. He                                                                    
relayed  that  state  employees  could  currently  pay  into                                                                    
deferred   compensation,   which   allowed  them   to   save                                                                    
additional   money,  for   dispersement  at   the  time   of                                                                    
retirement. The  deferred compensation option was  a pre-tax                                                                    
option, with taxes  being paid at the  time of distribution.                                                                    
He  said  that the  Roth  457  would  allow for  a  post-tax                                                                    
option, giving the  employee the ability to not  be taxed at                                                                    
pay  out.  He  stated  that the  option  would  allowed  for                                                                    
diversification in  retirement choices and was  optional. He                                                                    
explained  that in  January of  2011 the  federal government                                                                    
began offering  the option. He  added that the  option would                                                                    
be  useful given  the uncertainty  of future  taxation rates                                                                    
due to the federal deficit.                                                                                                     
                                                                                                                                
2:25:06 PM                                                                                                                    
                                                                                                                                
KATHY  LEA, CHIEF  PENSION OFFICER,  DIVISION OF  RETIREMENT                                                                    
AND  BENEFITS, DEPARTMENT  OF  ADMINISTRATION, reviewed  the                                                                    
sectional analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1.  AS 39.45.050  is repealed and  reenacted to                                                                  
     provide for  a post-tax  Roth investment option  in the                                                                    
     public  employees'   deferred  compensation   plan  and                                                                    
     clarifies  that state  and federal  income  tax is  not                                                                    
     deferred under this option.  The section establishes if                                                                    
     no  positive election  is made  for a  Roth investment,                                                                    
     contributions will be deemed to  be on a pre-tax basis.                                                                    
     This  allows   the  pre-tax  target  date   options  to                                                                    
     continue  as the  default option  for the  plan if  the                                                                    
     member  makes  no   investment  election.  The  section                                                                    
     establishes  dollar  limitations   in  accordance  with                                                                    
     Internal   Revenue   Code    rules   and   allows   the                                                                    
     Administrator  of  the  plan  to  establish  rules  and                                                                    
     procedures   governing   the    election   process   by                                                                    
     participating employees.                                                                                                   
                                                                                                                              
     Section  2. AS  39.45.060 adds  a definition  of "Roth"                                                                  
     contributions  to  have  the meaning  under  26  U.S.C.                                                                    
     402A(c)                                                                                                                    
                                                                                                                              
     Section  3. Establishes  an effective  date of  July 1,                                                                  
     2015.                                                                                                                      
                                                                                                                                
2:26:10 PM                                                                                                                    
                                                                                                                                
Senator Bishop asked for more information on how the plan                                                                       
would be taxed.                                                                                                                 
                                                                                                                                
Mr. Mills explained that the bill would allow the                                                                               
investment to be taxed now; at the time of retirement the                                                                       
money set aside, plus earnings, would be tax free.                                                                              
                                                                                                                                
2:26:56 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy understood that the bill would not limit                                                                       
the investment tools that could be used, such as investing                                                                      
in high risk stocks.                                                                                                            
                                                                                                                                
Mr. Mills replied that all of the options currently offered                                                                     
by the state would be available to the plan.                                                                                    
                                                                                                                                
2:27:39 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:28:34 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:29:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping and the suggested                                                                     
a break in the meeting to discuss the course of action                                                                          
pertaining to the legislation on the agenda.                                                                                    
                                                                                                                                
2:31:08 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
3:13:15 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 135                                                                                                            
                                                                                                                                
     "An Act establishing a Roth contribution program for                                                                       
     the public employees' deferred compensation program;                                                                       
     and providing for an effective date."                                                                                      
                                                                                                                                
3:13:40 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche discussed the fiscal note.                                                                                  
                                                                                                                                
Vice-Chair Micciche MOVED to report HB 135 out of Committee                                                                     
with individual recommendations and the accompanying fiscal                                                                     
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB 135 was REPORTED out of committee with a "do pass"                                                                           
recommendation and with one previously published zero                                                                           
fiscal note: FN 1(ADM).                                                                                                         
                                                                                                                                
3:14:51 PM                                                                                                                    
AT EASE.                                                                                                                        
                                                                                                                                
3:16:14 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 176(FIN)                                                                                                
     "An Act repealing state employee salary schedule                                                                           
     increases; and providing for an effective date."                                                                           
                                                                                                                                
3:16:32 PM                                                                                                                    
Vice-Chair Micciche spoke to the three fiscal notes.                                                                            
                                                                                                                                
Co-Chair MacKinnon solicited comments from the committee.                                                                       
                                                                                                                                
3:18:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  said that all  state employees  would forego                                                                    
the  2.5 percent  cost of  living adjustment  (COLA) for  an                                                                    
anticipated savings  of $9.2 million.  He asserted  that the                                                                    
legislature  was  not  breaking  any  promises  through  the                                                                    
passage of  HB 176, or  the budget action the  committee had                                                                    
taken, but  in certain financial situations  the legislature                                                                    
had  to take  action  to protect  the  state's reserves  and                                                                    
spend  less money.  He stressed  that no  employee would  be                                                                    
experience a  reduction in  pay, they  would be  foregoing a                                                                    
raise due to a shortfall of revenue.                                                                                            
                                                                                                                                
3:21:29 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon added that  the committee appreciated all                                                                    
of the state employees, but  that the fiscal crisis made the                                                                    
committee action a necessity.                                                                                                   
                                                                                                                                
3:21:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to report  CS HB 176(FIN)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  176 was  REPORTED out  of committee  with a  "do pass"                                                                    
recommendation  and with  three previously  published fiscal                                                                    
notes: FN1 (AJS), FN2 (GOV), and FN3 (LEG).                                                                                     
                                                                                                                                
3:22:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:23:30 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 123(JUD) am                                                                                             
     "An  Act  establishing  the  Marijuana  Control  Board;                                                                    
     relating  to the  powers and  duties  of the  Marijuana                                                                    
     Control  Board; relating  to the  appointment, removal,                                                                    
     and  duties of  the director  of the  Marijuana Control                                                                    
     Board; relating to the Alcoholic Beverage Control                                                                          
     Board; and providing for an effective date."                                                                               
                                                                                                                                
3:24:13 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:25:20 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
LACEY  SANDERS,  LEGISLATIVE  ANALYST,  LEGISLATIVE  FINANCE                                                                    
DIVISION, explained the  two new fiscal notes  that would be                                                                    
attached to  the legislation.  The first  note was  from the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
and  was informational  only; four  full-time positions  and                                                                    
the cost  of $1,574,400  in general  funds reflected  on the                                                                    
note was included in the  governor's FY16 budget. She stated                                                                    
that  funding for  the Alcohol  Beverage  Control Board  was                                                                    
included in the Capital  Budget as a multi-year supplemental                                                                    
item.                                                                                                                           
                                                                                                                                
3:27:04 PM                                                                                                                    
                                                                                                                                
Ms. Sanders  explained the  second new  fiscal note  was for                                                                    
the  Department  of  Administration  and  was  informational                                                                    
only;  the fiscal  note had  originally included  $10,000 of                                                                    
inter-agency receipts and had been  zeroed out for FY16. She                                                                    
explained that  the department  could use  unbudgeted inter-                                                                    
agency receipts for 2016.                                                                                                       
                                                                                                                                
3:27:36 PM                                                                                                                    
                                                                                                                                
Co-Chair   MacKinnon  referred   to   an  earlier   question                                                                    
concerning Page  6, line  21 concerning  the sunset  date of                                                                    
the board.  She related  that the  chairman of  Senate Labor                                                                    
and Commerce supported the change in the sunset date.                                                                           
                                                                                                                                
Vice-Chair  Micciche moved  to MOVED  to ADOPT  Amendment 1,                                                                    
29-GH1110\S.1, (Martin, 4/17/15), (copy on file).                                                                               
                                                                                                                                
     Page 6, line 21:                                                                                                           
               Delete "2017"                                                                                                    
               Insert "2018"                                                                                                    
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
3:28:37 PM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  MOVED to report  SCS CSHB  123(FIN) out                                                                    
of  Committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 123(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation and with two  new fiscal notes from the                                                                    
Department of Commerce,  Community, and Economic Development                                                                    
and the Department of Administration.                                                                                           
                                                                                                                                
3:29:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:30:42 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed housekeeping.                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:31:33 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:31 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 123 Testimony in support of HB 123 - Lindsey.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Opposing Letter - Yoder.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Sponsor Statement.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Barrett.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Berardi.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Kole.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Schulte.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Tacke.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter - Williams.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Support Letter Hollister.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Supporting Documents - ABC Implementation Recommendations.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 - Supporting Documents - Initiative Language.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 handout 4 16 15.docx SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 -Support Letter - Shulte.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 Supporting Documents - Structural Comparison.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB135 Public Employee Roth Contributions Transmittal Letter.pdf SFIN 4/17/2015 1:30:00 PM
HB 135
HB135 - Sectional Analysis.pdf SFIN 4/17/2015 1:30:00 PM
HB 135
HB135 - Supporting Document - Roth 457 FAQs.pdf SFIN 4/17/2015 1:30:00 PM
HB 135
HB 123 SCS CSHB123(L&C) Sectional Analysis.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB123 Explanation of Changes.pdf SFIN 4/17/2015 1:30:00 PM
HB 123
HB 123 Amendment 1.pdf SFIN 4/17/2015 1:30:00 PM
HB 123