Legislature(2015 - 2016)SENATE FINANCE 532

04/06/2016 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 126 SMALL SECURITY OFFERINGS TELECONFERENCED
Moved CSSB 126(L&C) Out of Committee
+= SB 154 BLOOD BANK OF ALASKA LICENSE PLATES TELECONFERENCED
Moved CSSB 154(STA) Out of Committee
+= SB 208 ELIMINATE AK PERFORMANCE SCHOLARSHIP TELECONFERENCED
Heard & Held
+= SB 210 COMM. REV. SHARING;PROP. TAX EXEMPTIONS TELECONFERENCED
Heard & Held
+= SB 91 OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS TELECONFERENCED
Scheduled but Not Heard
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 6, 2016                                                                                            
                         9:06 a.m.                                                                                              
                                                                                                                                
9:06:05 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 9:06 a.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                                                                                                                  
                                                                                                                                
Senator Mia Costello, Sponsor; Brandon Brefczynski, Staff,                                                                      
Representative Bill Stolze; Brett Huber, Staff, Senator                                                                         
Pete Kelly; Laura Cramer, Staff, Senator Anna MacKinnon.                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Amy Erickson, Director, Division of Motor Vehicles,                                                                             
Department of Administration.                                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 91     OMNIBUS CRIM LAW & PROCEDURE; CORRECTIONS                                                                             
                                                                                                                                
          SB 91 was SCHEDULED but not HEARD.                                                                                    
                                                                                                                                
SB 126    SMALL SECURITY OFFERINGS                                                                                              
                                                                                                                                
          SB 126 was REPORTED out of committee with a "do                                                                       
          pass" recommendation and with one previously                                                                          
          published zero fiscal note: FN 1(CED).                                                                                
                                                                                                                                
SB 154    BLOOD BANK OF ALASKA LICENSE PLATES                                                                                   
                                                                                                                                
          SB 154  was REPORTED out  of committee with  a "do                                                                    
          pass" recommendation and with  one new zero fiscal                                                                    
          note  by  the  Senate Finance  Committee  for  the                                                                    
          Department of Administration.                                                                                         
                                                                                                                                
SB 208    ELIMINATE AK PERFORMANCE SCHOLARSHIP                                                                                  
                                                                                                                                
          SB 208 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 210    COMM. REV. SHARING;PROP. TAX EXEMPTIONS                                                                               
                                                                                                                                
          SB 210 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
Co-Chair  MacKinnon discussed  the agenda  for the  day. She                                                                    
relayed  that SB  91  would not  come  before the  committee                                                                    
during the  meeting. She furthered  that she was  working on                                                                    
an amendment to the bill, based  on the fiscal notes she had                                                                    
received  the previous  day. She  would be  advancing a  new                                                                    
proposed fiscal  note and a  spreadsheet after  working with                                                                    
all the departments.                                                                                                            
                                                                                                                                
SENATE BILL NO. 126                                                                                                           
                                                                                                                                
     "An Act establishing an exemption for the offering and                                                                     
     sale of certain securities."                                                                                               
                                                                                                                                
9:07:34 AM                                                                                                                    
                                                                                                                                
SENATOR  MIA COSTELLO,  SPONSOR, mentioned  that there  were                                                                    
people available  for testimony in  the case that  there was                                                                    
questions from the committee members.                                                                                           
                                                                                                                                
Co-Chair  MacKinnon discussed  FN  1  (OMB component  2808),                                                                    
which showed  zero fiscal  impact for FY  17 through  FY 22.                                                                    
There was  no capital appropriation indicated;  but the bill                                                                    
would require  a regulation change,  which would  be drafted                                                                    
by December 1, 2016.                                                                                                            
                                                                                                                                
Vice-Chair Micciche  MOVED to report  CSSB 126 (L&C)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SB  126 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
fiscal note: FN 1(CED).                                                                                                         
                                                                                                                                
9:09:54 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:13:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 154                                                                                                           
                                                                                                                                
     "An Act relating to special registration plates                                                                            
     commemorating the Blood Bank of Alaska."                                                                                   
                                                                                                                                
9:13:30 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Micciche  discussed   the   fiscal  note   (OMB                                                                    
component 2348),  from the Department of  Administration. He                                                                    
conveyed that  it was  essentially a  zero fiscal  note, but                                                                    
reflected  the  revenue  (exceeding  plate  issuance  costs)                                                                    
"that may  be appropriated by  the legislator" to  the Blood                                                                    
Bank  of Alaska.  He  acknowledged  that Co-Chair  MacKinnon                                                                    
intended to zero out the fiscal note.                                                                                           
                                                                                                                                
Co-Chair MacKinnon  clarified that  the $3,000  in operating                                                                    
expense  listed  on   the  note  would  go   to  zero.  [She                                                                    
incorrectly read $300 to be $3,000.]                                                                                            
                                                                                                                                
BRANDON  BREFCZYNSKI,  STAFF,  REPRESENTATIVE  BILL  STOLZE,                                                                    
clarified that  the actual amount  was $250, and  the fiscal                                                                    
note analysis was written as $300.                                                                                              
                                                                                                                                
Co-Chair MacKinnon  suggested amending the fiscal  note from                                                                    
$300 to $0 for total operating expenditures in FY 17.                                                                           
                                                                                                                                
AMY   ERICKSON,  DIRECTOR,   DIVISION  OF   MOTOR  VEHICLES,                                                                    
DEPARTMENT   OF    ADMINISTRATION,   (via   teleconference),                                                                    
explained  that  the  Division  of  Motor  Vehicles  had  no                                                                    
opposition to the proposed zero fiscal note.                                                                                    
                                                                                                                                
                                                                                                                                
Vice-Chair Micciche  asked for an explanation  regarding the                                                                    
text  on the  draft  fiscal note  which  read, "Fiscal  note                                                                    
updated  to reflect  that revenue  exceeding plate  issuance                                                                    
cost  may be  appropriated by  the legislator  to the  blood                                                                    
bank of Alaska."                                                                                                                
                                                                                                                                
Ms. Erickson thought  the text was due to the  fact that the                                                                    
prior version of the bill  did not allow for the legislature                                                                    
to appropriate the funds to the blood bank.                                                                                     
                                                                                                                                
Vice-Chair Micciche  pondered the zero fiscal  note, and was                                                                    
not certain of the reason for the text.                                                                                         
                                                                                                                                
9:17:21 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:18:42 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  clarified  that  the  committee  had  a                                                                    
discussion  regarding the  language in  the fiscal  note and                                                                    
the financial impact of the bill.                                                                                               
                                                                                                                                
Vice-Chair Micciche  clarified that there was  a zero fiscal                                                                    
note; and some  of the proceeds of the license  plate may be                                                                    
appropriated to the  blood bank, over and above  any cost to                                                                    
the state.  He specified that the  box at the bottom  of the                                                                    
fiscal note should be edited  to state, "Fiscal note updated                                                                    
to reflect  that revenue exceeding plate  issuance costs may                                                                    
be  appropriated by  the legislature  to the  blood bank  of                                                                    
Alaska."                                                                                                                        
                                                                                                                                
Vice-Chair  Micciche MOVED  to report  CSSB 154(STA)  out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
SB  154 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and with  one new  zero fiscal  note by  the                                                                    
Senate   Finance    Committee   for   the    Department   of                                                                    
Administration.                                                                                                                 
                                                                                                                                
9:20:14 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:24:20 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 208                                                                                                           
                                                                                                                                
     "An Act eliminating the Alaska education grant program                                                                     
     and the Alaska performance scholarship program; and                                                                        
     providing for an effective date."                                                                                          
                                                                                                                                
9:24:25 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute  for   CSSB  208(FIN),  Work   Draft  29-LS1581\E                                                                    
(Glover, 4/4/16).                                                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
BRETT  HUBER,  STAFF,  SENATOR  PETE  KELLY,  discussed  the                                                                    
committee   substitute  (CS),   which  contained   technical                                                                    
changes  from  the  original  bill.  He  specified  that  in                                                                    
conversations  with the  Department of  Education and  Early                                                                    
Development,   as  well   as   the   Alaska  Commission   on                                                                    
Postsecondary Education;  the sponsor  had learned  that the                                                                    
practical application  of the program did  not function with                                                                    
the deadline  dates that had  been selected. He  pointed out                                                                    
that the  sponsor had  moved the  deadline dates  to October                                                                    
31, 2016;  and the academic  year-end of 2021 and  2022. The                                                                    
CS maintained the intent of  the original bill, in that both                                                                    
the   Alaska   Performance   Scholarship  and   the   Alaska                                                                    
Educational Grant Program would  be open through the current                                                                    
graduating  high school  class, and  then would  be repealed                                                                    
following the 2021/2022 academic year.                                                                                          
                                                                                                                                
Mr. Huber discussed the changes  to the bill. He highlighted                                                                    
the following sections:  Section  2, page 3, line 4; Section                                                                    
3, page 4,  lines 1 through 3; and Section  4, page 4, lines                                                                    
7  through 8.  He  stated  that there  was  a new  sectional                                                                    
analysis for the committee's review.                                                                                            
                                                                                                                                
Co-Chair  MacKinnon REMOVED  her objection.  There being  NO                                                                    
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
SB  208  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 210                                                                                                           
                                                                                                                                
     "An  Act  relating  to the  community  revenue  sharing                                                                    
     program;  changing the  name of  the community  revenue                                                                    
     sharing  program to  the community  assistance program;                                                                    
     and relating  to the  municipal property  tax exemption                                                                    
     on the residence  of a senior, a  disabled veteran, and                                                                    
     a widow or widower of a senior or disabled veteran."                                                                       
                                                                                                                                
9:27:15 AM                                                                                                                    
                                                                                                                                
9:27:27 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:27:38 AM                                                                                                                    
REVONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Micciche  MOVED   to  ADOPT  proposed  committee                                                                    
substitute  for   CSSB  210(FIN),  Work   Draft  29-LS1593/H                                                                    
(Shutts, 4/4/16).                                                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
LAURA CRAMER, STAFF, SENATOR  ANNA MACKINNON, explained that                                                                    
the CS  had removed  the language  relating to  the property                                                                    
tax  exemption  for  seniors and  disabled  veterans.  As  a                                                                    
result, the bill  was much smaller. There had  been a couple                                                                    
of small  changes to the Community  Revenue Sharing program,                                                                    
which under  the bill would become  the Community Assistance                                                                    
Program. She directed  attention to page 4 of  the bill, and                                                                    
noted the  first changes  started on line  14. The  CS would                                                                    
change the amount  that was deposited into the  fund; to the                                                                    
greater  of $30  million or  the amount,  when added  to the                                                                    
fund  balance  on  June  30 of  the  previous  fiscal  year,                                                                    
equaled $90 million.                                                                                                            
                                                                                                                                
Ms.  Cramer continued  discussing  the CS,  noting that  the                                                                    
second change was on page  5, subsection b, starting on line                                                                    
7. She explained that after  consulting with the Division of                                                                    
Legislative Finance, it  was realized that there  could be a                                                                    
negative balance in the fund  if the revenue sharing payment                                                                    
was not rounded to the nearest dollar.                                                                                          
                                                                                                                                
Senator Hoffman asked  if the program was  in continuance or                                                                    
still had an expiration date.                                                                                                   
                                                                                                                                
Ms. Cramer relayed  that the program would  continue as long                                                                    
as the  legislature continued to appropriate  funds into the                                                                    
fund.                                                                                                                           
                                                                                                                                
Senator Olson asked  if the funding numbers  had changed for                                                                    
communities.                                                                                                                    
                                                                                                                                
Ms. Cramer stated  that because the balance in  the fund was                                                                    
less than what the  legislature had previously appropriated,                                                                    
the amounts to communities would  be reduced. She noted that                                                                    
the  specific  monetary  amounts  had  been  distributed  to                                                                    
committee members.                                                                                                              
                                                                                                                                
Senator  Olson  clarified  that his  question  pertained  to                                                                    
whether the amounts for communities  had changed between the                                                                    
two previous versions of the bill.                                                                                              
                                                                                                                                
Ms. Cramer answered in the negative.                                                                                            
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OJBECTION. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SB  210  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  MacKinnon   reiterated  that  the   committee  was                                                                    
working on  the fiscal  notes and materials  for SB  91, and                                                                    
would bring  the bill back  before the committee at  a later                                                                    
time so the public would  have the opportunity to review the                                                                    
changes.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon  discussed the afternoon  schedule, which                                                                    
would include public testimony for the capital budget.                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:32:08 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:32 a.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 208 CSSB 208 work draft version E.pdf SFIN 4/6/2016 9:00:00 AM
SB 208
SB 208 Sectional Analysis Version E.pdf SFIN 4/6/2016 9:00:00 AM
SB 208
SB 210 CSSB 210(FIN) - Sectional Analysis.pdf SFIN 4/6/2016 9:00:00 AM
SB 210
SB 210 CSSB 210(FIN) Sponsor Statement.pdf SFIN 4/6/2016 9:00:00 AM
SB 210
SB 210 CSSB 210 work draft version H.pdf SFIN 4/6/2016 9:00:00 AM
SB 210