Legislature(2015 - 2016)SENATE FINANCE 532

04/14/2016 08:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 130 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
Heard & Held
-- Public Testimony <Limited to 2 Minutes> --
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same message, in the interest of time, please
select a spokesperson to testify for the group.
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unable to access it during the specified time
period, you may send written testimony to the
committee at: finance.committee@akleg.gov
+= HB 247 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
<Pending Referral>
+= HB 77 DISABILITY:ID/LICENSE AND TRAINING RQMTS. TELECONFERENCED
Moved CSHB 77(FIN) Out of Committee
+ HCR 4 US COUNTERMAND CONVENTION DELEGATES TELECONFERENCED
Moved CSHCR 4(STA) Out of Committee
+ SB 55 OPTOMETRY & OPTOMETRISTS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 314 AK REG ECON ASSIST. PROGRAM; EXTEND TELECONFERENCED
Heard & Held
+= SB 206 REINSURANCE PROGRAM; HEALTH INS. WAIVERS TELECONFERENCED
Heard & Held
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 14, 2016                                                                                            
                         8:07 a.m.                                                                                              
                                                                                                                                
8:07:31 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Vice-Chair  Micciche  called  the  Senate  Finance  Committee                                                                   
meeting to order at 8:07 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                                                                                                                  
                                                                                                                                
Marleanna  Hall,  Executive  Director,  Resource  Development                                                                   
Council,   Juneau;    Barbara   Huff   Tuckness,    Director,                                                                   
Government  and  Legislative Affairs,  Teamsters  Local  959,                                                                   
Juneau;  Representative   Shelley  Hughes,   Sponsor;  Stuart                                                                   
Krueger,   Staff,  Representative   Shelley  Hughes;   Brodie                                                                   
Anderson,   Staff,   Representative  Steve   Thompson;   Fred                                                                   
Parady,   Deputy   Commissioner,  Department   of   Commerce,                                                                   
Community,   and  Economic   Development;  Lori   Wing-Heier,                                                                   
Director,  Division  of Insurance,  Department  of  Commerce,                                                                   
Community  and Economic Development;  Senator Cathy  Giessel,                                                                   
Sponsor;  Jane Conway,  Staff,  Senator  Cathy Giessel;  Jill                                                                   
Matheson,  Alaska  Optometric   Association;  Sara  Chambers,                                                                   
Administrative     Operations     Manager,    Division     of                                                                   
Corporations,    Business   and    Professional    Licensing,                                                                   
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Brad  Faulkner, Self,  Homer; Dave  Hanson, Self,  Anchorage;                                                                   
Renee  Reeve, Alaska  Support  Industry Alliance,  Anchorage;                                                                   
Michael  Jesperson,  Self,  Anchorage;  Rick  Koch,  City  of                                                                   
Kenai;  Don Laichak,  Self, Anchorage;  Mike Coons,  National                                                                   
Legislative  Director, Citizens  Initiatives, Palmer;  Curtis                                                                   
Thayer,  Alaska   Chamber  of  Commerce,   Anchorage;  Delice                                                                   
Calcope,  Self,  Sutton;  Mike   Coons,  Self,  Palmer;  Jeff                                                                   
Gonnason,  Legislative Chair,  Alaska Optometry  Association;                                                                   
Dr.  Paul Barney,  Chairman, Board  of Optometry,  Anchorage;                                                                   
Dr. Carl Rosen,  Ophthalmologist, Anchorage.  Ben Schoffmann,                                                                   
Kakivik  Asset   Management,  Anchorage;   Reed  Christensen,                                                                   
Dowland-Bach  Corporation,  Anchorage; Terry  Smith,  Unified                                                                   
Operations,   Anchorage;   Chantal    Walsh,   Petrotechnical                                                                   
Resources  of Alaska,  Anchorage;  Tom Walsh,  Petrotechnical                                                                   
Resources  of  Alaska,  Anchorage;  Mike  Heiring,  Udelhoven                                                                   
Oilfield   System   Services,   Anchorage;   Cathy   Duxbury,                                                                   
Udelhoven Oilfield  System Services, Anchorage;  Scott Viera,                                                                   
Northstar  Terminal  &  Stevedore,  Anchorage;  Pete  Stokes,                                                                   
Petrotechnical  Resources   of  Alaska,  Anchorage;   Maynard                                                                   
Tapp,  Hawk  Consultants,  Anchorage;   Patrick  Walsh,  Peak                                                                   
Oilfield   Services,   Anchorage;   Jeff   Bentz,   Northstar                                                                   
Terminal  &  Stevedore, Anchorage;  Dale  Kissee,  President,                                                                   
CONAM   Construction,   Anchorage;    Leah   Talus,   Stantek                                                                   
Consulting,   Anchorage;  Adam   Crum,  Northern   Industrial                                                                   
Training,  Anchorage;   Drema  Fitzhugh,   Hawk  Consultants,                                                                   
Anchorage;  Cari-Ann Carty, Alaska  Process Industry  Careers                                                                   
Consortium,    Anchorage;    Joseph     Colonell,    Colonell                                                                   
Associates,  Anchorage;  Steve  Post, North  Star  Equipment,                                                                   
Anchorage;  Martha  Peck,  Alaska  Process  Industry  Careers                                                                   
Consortium, Anchorage;  Nick Pepperworth,  Udelhoven Oilfield                                                                   
System Services,  Anchorage; Dennis Hebner,  Superior Machine                                                                   
and   Welding,   Anchorage;  Brian   Benson,   Air   Liquide,                                                                   
Anchorage;   Joey   Crum,   Northern   Industrial   Training,                                                                   
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 55     OPTOMETRY & OPTOMETRISTS                                                                                              
                                                                                                                                
          SB 55 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 130    TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                                    
                                                                                                                                
          SB 130 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 206    REINSURANCE PROGRAM; HEALTH INS. WAIVERS                                                                              
                                                                                                                                
          SB 206 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 77(FIN)                                                                                                                    
          DISABILITY:ID/LICENSE AND TRAINING RQMTS.                                                                             
                                                                                                                                
          CS HB 77(FIN) was REPORTED out of committee with                                                                      
          "no recommendation" and with one previously                                                                           
          published zero fiscal note: FN3 (ADM).                                                                                
                                                                                                                                
HB 247    TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                                    
                                                                                                                                
          HB 247 was SCHEDULED but not HEARD.                                                                                   
                                                                                                                                
HB 314    AK REG ECON ASSIST. PROGRAM; EXTEND                                                                                   
                                                                                                                                
          HB 314 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHCR 4(STA)                                                                                                                    
          US COUNTERMAND CONVENTION DELEGATES                                                                                   
                                                                                                                                
          CSHCR 4(STA) was REPORTED out of committee with                                                                       
          "no recommendation" and with one previously                                                                           
          published indeterminate fiscal note: FN2 (LEG).                                                                       
                                                                                                                                
SENATE BILL NO. 130                                                                                                           
                                                                                                                                
     "An  Act  relating to  confidential  information  status                                                                   
     and  public   record  status   of  information   in  the                                                                   
     possession  of the  Department of  Revenue; relating  to                                                                   
     interest  applicable  to  delinquent  tax;  relating  to                                                                   
     disclosure  of   oil  and  gas  production   tax  credit                                                                   
     information;  relating to  refunds for  the gas  storage                                                                   
     facility tax  credit, the liquefied natural  gas storage                                                                   
     facility  tax credit,  and  the qualified  in-state  oil                                                                   
     refinery   infrastructure   expenditures   tax   credit;                                                                   
     relating  to the  minimum tax  for certain  oil and  gas                                                                   
     production;  relating  to  the minimum  tax  calculation                                                                   
     for  monthly  installment  payments  of  estimated  tax;                                                                   
     relating  to interest  on  monthly installment  payments                                                                   
     of  estimated  tax;  relating  to  limitations  for  the                                                                   
     application  of tax  credits;  relating to  oil and  gas                                                                   
     production   tax   credits   for  certain   losses   and                                                                   
     expenditures;     relating     to    limitations     for                                                                   
     nontransferable  oil  and  gas  production  tax  credits                                                                   
     based on oil  production and the alternative  tax credit                                                                   
     for  oil and gas  exploration; relating  to purchase  of                                                                   
     tax  credit  certificates  from  the  oil  and  gas  tax                                                                   
     credit fund;  relating to a  minimum for gross  value at                                                                   
     the   point    of   production;   relating    to   lease                                                                   
     expenditures  and tax  credits  for municipal  entities;                                                                   
     adding    a    definition   for    "qualified    capital                                                                   
     expenditure";  adding  a   definition  for  "outstanding                                                                   
     liability   to  the  state";   repealing  oil   and  gas                                                                   
     exploration    incentive    credits;    repealing    the                                                                   
     limitation  on the  application of  credits against  tax                                                                   
     liability   for  lease   expenditures  incurred   before                                                                   
     January  1, 2011;  repealing provisions  related  to the                                                                   
     monthly installment  payments for estimated  tax for oil                                                                   
     and gas produced  before January 1, 2014;  repealing the                                                                   
     oil  and   gas  production  tax  credit   for  qualified                                                                   
     capital  expenditures  and  certain  well  expenditures;                                                                   
     repealing    the   calculation    for   certain    lease                                                                   
     expenditures applicable  before January 1,  2011; making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
8:09:49 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:10:28 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
MARLEANNA  HALL,  EXECUTIVE  DIRECTOR,  RESOURCE  DEVELOPMENT                                                                   
COUNCIL,  JUNEAU, testified  in opposition  to the bill.  She                                                                   
thought  that  raising  taxes   on  the  industry  would  not                                                                   
stimulate  growth.  She  felt  changing the  oil  tax  regime                                                                   
would make Alaska's  oil and gas industry seem  unstable. She                                                                   
discussed  the   recent  increase   in  oil  throughput   and                                                                   
referenced  the tax  credit. She  noted that  the members  of                                                                   
the council  were not  asking for a  tax decrease,  rather to                                                                   
maintain  the current  structure  in  order to  decrease  the                                                                   
possibility of volatility.                                                                                                      
                                                                                                                                
8:13:12 AM                                                                                                                    
                                                                                                                                
BRAD FAULKNER,  SELF, HOMER  (via teleconference),  testified                                                                   
in  support of  the  bill. He  related  that  he had  started                                                                   
working on  the pipeline  when he was  18, and had  worked in                                                                   
the  oil   He thought  oil tax  credits in  Cook Inlet  would                                                                   
never  pay themselves  off, and  thought oil  tax credits  on                                                                   
the North  Slope were set  up to boost  the oil  industry. He                                                                   
felt  the  Senate was  controlled  by  the oil  industry.  He                                                                   
thought  it  was long  since  time  to  get  rid of  the  tax                                                                   
credits.                                                                                                                        
                                                                                                                                
8:16:12 AM                                                                                                                    
                                                                                                                                
DAVE   HANSON,   SELF,   ANCHORAGE    (via   teleconference),                                                                   
testified in  favor of  the bill. He  described himself  as a                                                                   
fiscal  conservative, and  felt  the state  could not  afford                                                                   
the  oil  tax   credit  program.  He  discussed   the  fiscal                                                                   
situation  in the  state and  commented that  low oil  prices                                                                   
were the cause  of the oil industry's financial  problems. He                                                                   
highlighted the importance of jobs in the oil industry.                                                                         
                                                                                                                                
8:19:15 AM                                                                                                                    
                                                                                                                                
BARBARA HUFF  TUCKNESS, DIRECTOR, GOVERNMENT  AND LEGISLATIVE                                                                   
AFFAIRS, TEAMSTERS  LOCAL 959, JUNEAU, felt that  the current                                                                   
committee substitute  was better than the original  bill. She                                                                   
stressed  that the legislation  would  impact many jobs.  She                                                                   
felt that previously  passed oil and gas legislation,  SB 21,                                                                   
had  a positive  impact on  the workers  in the  oil and  gas                                                                   
industry.                                                                                                                       
                                                                                                                                
8:21:50 AM                                                                                                                    
                                                                                                                                
RENEE  REEVE,  ALASKA SUPPORT  INDUSTRY  ALLIANCE,  ANCHORAGE                                                                   
(via teleconference);  testified in  opposition to  the bill,                                                                   
and referred  to other members  of the alliance that  were in                                                                   
the room to testify in opposition as well.                                                                                      
                                                                                                                                
[Ms.   Reeve  gave   her   testimony,   then  the   following                                                                   
individuals  read  their  names   and  affiliations  for  the                                                                   
record, also in opposition to the bill.]                                                                                        
                                                                                                                                
8:22:21 AM                                                                                                                    
                                                                                                                                
BEN  SCHOFFMANN,  KAKIVIK ASSET  MANAGEMENT,  ANCHORAGE  (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
REED CHRISTENSEN,  DOWLAND-BACH  CORPORATION, ANCHORAGE  (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
TERRY    SMITH,    UNIFIED   OPERATIONS,    ANCHORAGE    (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
CHANTAL   WALSH,   PETROTECHNICAL    RESOURCES   OF   ALASKA,                                                                   
ANCHORAGE  (via teleconference),  testified in opposition  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
TOM  WALSH,  PETROTECHNICAL RESOURCES  OF  ALASKA,  ANCHORAGE                                                                   
(via teleconference), testified in opposition to the bill.                                                                      
                                                                                                                                
MIKE HEIRING,  UDELHOVEN OILFIELD SYSTEM  SERVICES, ANCHORAGE                                                                   
(via teleconference), testified in opposition to the bill.                                                                      
                                                                                                                                
CATHY   DUXBURY,   UDELHOVEN    OILFIELD   SYSTEM   SERVICES,                                                                   
ANCHORAGE  (via teleconference),  testified in opposition  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
SCOTT VIERA,  NORTHSTAR TERMINAL & STEVEDORE,  ANCHORAGE (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
PETE STOKES,  PETROTECHNICAL RESOURCES  OF ALASKA,  ANCHORAGE                                                                   
(via teleconference), testified in opposition to the bill.                                                                      
                                                                                                                                
MAYNARD    TAPP,    HAWK    CONSULTANTS,    ANCHORAGE    (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
PATRICK  WALSH,   PEAK  OILFIELD  SERVICES,   ANCHORAGE  (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
JEFF BENTZ,  NORTHSTAR TERMINAL  & STEVEDORE, ANCHORAGE  (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
DALE KISSEE,  PRESIDENT, CONAM  CONSTRUCTION, ANCHORAGE  (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
LEAH    TALUS,    STANTEK    CONSULTING,    ANCHORAGE    (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
ADAM  CRUM,  NORTHERN  INDUSTRIAL  TRAINING,  ANCHORAGE  (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
DREMA    FITZHUGH,   HAWK    CONSULTANTS,   ANCHORAGE    (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
CARI-ANN CARTY,  ALASKA PROCESS INDUSTRY  CAREERS CONSORTIUM,                                                                   
ANCHORAGE  (via teleconference),  testified in opposition  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
JOSEPH   COLONELL,   COLONELL  ASSOCIATES,   ANCHORAGE   (via                                                                   
teleconference), testified in  opposition to the bill.                                                                          
                                                                                                                                
STEVE   POST,   NORTH   STAR    EQUIPMENT,   ANCHORAGE   (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
MARTHA  PECK,  ALASKA PROCESS  INDUSTRY  CAREERS  CONSORTIUM,                                                                   
ANCHORAGE  (via teleconference),  testified in opposition  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
NICK   PEPPERWORTH,  UDELHOVEN   OILFIELD  SYSTEM   SERVICES,                                                                   
ANCHORAGE  (via teleconference),  testified in opposition  to                                                                   
the bill.                                                                                                                       
                                                                                                                                
DENNIS HEBNER,  SUPERIOR MACHINE AND WELDING,  ANCHORAGE (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
BRIAN BENSON,  AIR LIQUIDE,  ANCHORAGE (via  teleconference),                                                                   
testified in opposition to the bill.                                                                                            
                                                                                                                                
JOEY  CRUM,  NORTHERN  INDUSTRIAL  TRAINING,  ANCHORAGE  (via                                                                   
teleconference), testified in opposition to the bill.                                                                           
                                                                                                                                
Ms. Reeve stated  that all those introduced  individuals were                                                                   
opposed to the legislation.                                                                                                     
                                                                                                                                
8:24:20 AM                                                                                                                    
                                                                                                                                
MICHAEL  JESPERSON,  SELF,  ANCHORAGE  (via  teleconference),                                                                   
spoke against the  legislation. He stated that he  and no one                                                                   
in his family had ever worked for the oil industry.                                                                             
                                                                                                                                
SB  130  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
8:25:52 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:28:14 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 314                                                                                                            
                                                                                                                                
     "An  Act  relating  to  the   Alaska  regional  economic                                                                   
     assistance  program; extending  the termination  date of                                                                   
     the  Alaska regional  economic  assistance program;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
8:28:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SHELLEY   HUGHES,  SPONSOR,   introduced  the                                                                   
legislation.  She  stated  that  the bill  would  extend  the                                                                   
sunset  date  of  the  Alaska  Regional  Economic  Assistance                                                                   
(ARDOR) program.                                                                                                                
                                                                                                                                
8:31:59 AM                                                                                                                    
                                                                                                                                
STUART KRUEGER, STAFF, REPRESENTATIVE SHELLEY HUGHES,                                                                           
addressed the summary of changes from version N to version                                                                      
P of the bill (copy on file):                                                                                                   
                                                                                                                                
     Page  3,  Line 6-11:  The  Senate  Labor &  Commerce  CS                                                                   
     reinstates  the  requirement   that  the  Department  of                                                                   
     Commerce, Community  & Economic Development  compile and                                                                   
     deliver  a  report to  the  senate secretary  and  chief                                                                   
     clerk on  regional development organization  activities.                                                                   
     It does so  by removing language from  the original bill                                                                   
     starting  on  page 3,  line  9,  stating "that,  in  the                                                                   
     preceding  fiscal year,  received  assistance under  (a)                                                                   
     of  this  10  section  or  a grant  under  (b)  of  this                                                                   
     section"                                                                                                                   
                                                                                                                                
     Page 4, line 9: Repeals the sun set clause.                                                                                
                                                                                                                                
8:33:40 AM                                                                                                                    
                                                                                                                                
Mr. Krueger discussed the sectional analysis (copy on                                                                           
file):                                                                                                                          
                                                                                                                                
     Section  1.  Lists  the  duties  of  the  department  in                                                                   
     providing  assistance to  new and  existing ARDORs.  New                                                                   
     language    added   to    make   duties   "subject    to                                                                   
     appropriation".                                                                                                            
     Section  2. Provides the  department with the  authority                                                                   
     to make  regional development  grants to ARDORs.  Limits                                                                   
     the number  of grants that the department  can make, and                                                                   
     allows  the  department  to  set  procedures  for  grant                                                                   
     applications.                                                                                                              
                                                                                                                                
     Section  3.  Sets  reporting   requirement  deadline  of                                                                   
     February 1  of each year  for the department  to compile                                                                   
     a  report   on  the  activities  of  ARDORs   that  have                                                                   
     received  funding  in the  preceding  fiscal year.  Also                                                                   
     establishes  requirement for  ARDORs that have  received                                                                   
     assistance  or funding in  the preceding fiscal  year to                                                                   
     provide information  to the department to  assist in the                                                                   
     compiling of the department's report.                                                                                      
                                                                                                                                
     Section 4.  Extends the sunset  date of program  to July                                                                   
     1, 2021                                                                                                                    
                                                                                                                                
     Section 5. Retroactivity clause.                                                                                           
                                                                                                                                
     Section 6. Effective date.                                                                                                 
                                                                                                                                
8:34:37 AM                                                                                                                    
                                                                                                                                
Vice-Chair Micciche  asked about FN  1, which had  a $774,100                                                                   
grant, but  had been removed  in the subcommittee  budget. He                                                                   
assumed that  there would be a  new zero fiscal note  for the                                                                   
bill.                                                                                                                           
                                                                                                                                
Representative  Hughes explained that  the second  column was                                                                   
information only.  She remarked that  it was included  in the                                                                   
governor's   original  budget   request   in  December.   The                                                                   
department agreed  to go to  zero, and the subcommittees  had                                                                   
zeroed   out  the  fiscal   note.  She   stressed  that   the                                                                   
Legislative Finance  Division (LFD)  felt that it was  a zero                                                                   
fiscal  note, because  the  column was  strictly  information                                                                   
only.                                                                                                                           
                                                                                                                                
HB  314  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 130                                                                                                           
                                                                                                                                
     "An  Act  relating to  confidential  information  status                                                                   
     and  public   record  status   of  information   in  the                                                                   
     possession  of the  Department of  Revenue; relating  to                                                                   
     interest  applicable  to  delinquent  tax;  relating  to                                                                   
     disclosure  of   oil  and  gas  production   tax  credit                                                                   
     information;  relating to  refunds for  the gas  storage                                                                   
     facility tax  credit, the liquefied natural  gas storage                                                                   
     facility  tax credit,  and  the qualified  in-state  oil                                                                   
     refinery   infrastructure   expenditures   tax   credit;                                                                   
     relating  to the  minimum tax  for certain  oil and  gas                                                                   
     production;  relating  to  the minimum  tax  calculation                                                                   
     for  monthly  installment  payments  of  estimated  tax;                                                                   
     relating  to interest  on  monthly installment  payments                                                                   
     of  estimated  tax;  relating  to  limitations  for  the                                                                   
     application  of tax  credits;  relating to  oil and  gas                                                                   
     production   tax   credits   for  certain   losses   and                                                                   
     expenditures;     relating     to    limitations     for                                                                   
     nontransferable  oil  and  gas  production  tax  credits                                                                   
     based on oil  production and the alternative  tax credit                                                                   
     for  oil and gas  exploration; relating  to purchase  of                                                                   
     tax  credit  certificates  from  the  oil  and  gas  tax                                                                   
     credit fund;  relating to a  minimum for gross  value at                                                                   
     the   point    of   production;   relating    to   lease                                                                   
     expenditures  and tax  credits  for municipal  entities;                                                                   
     adding    a    definition   for    "qualified    capital                                                                   
     expenditure";  adding  a   definition  for  "outstanding                                                                   
     liability   to  the  state";   repealing  oil   and  gas                                                                   
     exploration    incentive    credits;    repealing    the                                                                   
     limitation  on the  application of  credits against  tax                                                                   
     liability   for  lease   expenditures  incurred   before                                                                   
     January  1, 2011;  repealing provisions  related  to the                                                                   
     monthly installment  payments for estimated  tax for oil                                                                   
     and gas produced  before January 1, 2014;  repealing the                                                                   
     oil  and   gas  production  tax  credit   for  qualified                                                                   
     capital  expenditures  and  certain  well  expenditures;                                                                   
     repealing    the   calculation    for   certain    lease                                                                   
     expenditures applicable  before January 1,  2011; making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
8:36:37 AM                                                                                                                    
                                                                                                                                
RICK  KOCH, CITY  OF  KENAI (via  teleconference),  testified                                                                   
against  the  bill.  He thought  it  had  fairly  significant                                                                   
negative  impacts to  the Railbelt.  He thought  there was  a                                                                   
difference in consumers  between Cook Inlet and  North Slope.                                                                   
He  encouraged   the  committee  to  consider   the  ultimate                                                                   
consumer of  the resource, and  who would bear the  burden of                                                                   
the tax credit structure.                                                                                                       
                                                                                                                                
8:38:33 AM                                                                                                                    
                                                                                                                                
DON   LAICHAK,   SELF,   ANCHORAGE    (via   teleconference),                                                                   
testified  in  opposition to  the  bill.  He had  worked  for                                                                   
several oil  companies. He believed  that smaller  oil fields                                                                   
were  the future  of  the state.  He  discussed the  numerous                                                                   
costs associated with oil production.                                                                                           
                                                                                                                                
CS FOR HOUSE CONCURRENT RESOLUTION NO. 4(STA)                                                                                 
                                                                                                                                
     Relating  to the  duties  of delegates  selected by  the                                                                   
     legislature  to  attend   a  convention  of  the  states                                                                   
     called  under   art.  V,  Constitution  of   the  United                                                                   
     States,  to  consider  a countermand  amendment  to  the                                                                   
     Constitution  of the  United States;  establishing  as a                                                                   
     joint   committee  of  the   legislature  the   Delegate                                                                   
     Credential Committee  and relating to the  duties of the                                                                   
     committee;  providing  for  an oath  for  delegates  and                                                                   
     alternates  to   a  countermand  amendment   convention;                                                                   
     providing  for  a  chair  and  assistant  chair  of  the                                                                   
     state's  countermand  amendment   delegation;  providing                                                                   
     for  the  duties  of  the  chair  and  assistant  chair;                                                                   
     providing   instructions   for   the  selection   of   a                                                                   
     convention  president; and  providing specific  language                                                                   
     for  the  countermand  amendment  on which  the  state's                                                                   
     convention delegates  are authorized by  the legislature                                                                   
     to vote to approve.                                                                                                        
                                                                                                                                
8:40:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SHELLEY HUGHES, SPONSOR; discussed the bill:                                                                     
                                                                                                                                
     Recent actions  taken by the White House  and Department                                                                   
     of Interior  constitute a new threshold  of overreach in                                                                   
     Alaska unlike anything in recent history.                                                                                  
                                                                                                                                
     HJR14 and  HCR 4  seek to restore  the balance  of power                                                                   
     between  the states  and  federal  government. The  pair                                                                   
     would strengthen  state sovereignty by  providing states                                                                   
     with  veto (countermand)  power  over federal  decisions                                                                   
     not  in  their  best  interest  through  a  precise  and                                                                   
     careful  mechanism established  by an  amendment  to the                                                                   
     U.S. Constitution.  These two resolutions  in tandem are                                                                   
     intended  to  start  the  process  of  amending  the  US                                                                   
     Constitution  via the  powers  granted in  Article V  of                                                                   
     that same document.                                                                                                        
                                                                                                                                
     HJR  14  (The Application)  provides  Alaska's  call  to                                                                   
     Congress   for    a   clearly   defined,    single-issue                                                                   
     Countermand   Amendment   Convention.  The   Countermand                                                                   
     Amendment  to  the  United   States  Constitution,  when                                                                   
     ratified,  will  allow  states  to  propose  Countermand                                                                   
     Initiatives,  which  upon  approval by  three-fifths  of                                                                   
     state  legislatures, will  repeal  any federal  statute,                                                                   
     executive  order,   judicial  decision,   or  regulatory                                                                   
     decision listed in the Initiative.                                                                                         
                                                                                                                                
     HCR  4  (The  Delegate  Resolution)  enables  the  state                                                                   
     legislature  to  institute   tight  parameters  for  the                                                                   
     convention,  to ensure  that a  "runaway convention"  is                                                                   
     not  possible and  provides for a  productive, safe  and                                                                   
     timely  process. The Delegate  Resolution establishes  a                                                                   
     Credential Committee  for selection of delegates  to the                                                                   
     convention, and outlines the duties of the delegates.                                                                      
                                                                                                                                
     HCR  4  also  includes  the   precise  language  of  the                                                                   
     proposed    Countermand    Amendment    to   the    U.S.                                                                   
     Constitution.                                                                                                              
                                                                                                                                
     Passage of  these resolutions is an actionable  step the                                                                   
     Legislature  can take toward  restoration of  the proper                                                                   
     balance   of  state  and   federal  powers.   These  two                                                                   
     resolutions  do  not pertain  to  a conservative  versus                                                                   
     liberal agenda;  this is  a state versus  federal issue.                                                                   
     This  is   OUR  Alaska,   and  it's  time   the  federal                                                                   
     government understands that.                                                                                               
                                                                                                                                
Vice-Chair  Micciche restated  that the  committee had  heard                                                                   
SCR 4, the identical bill, and had taken public testimony.                                                                      
                                                                                                                                
8:44:35 AM                                                                                                                    
                                                                                                                                
MIKE   COONS,   NATIONAL   LEGISLATIVE   DIRECTOR,   CITIZENS                                                                   
INITIATIVES,  PALMER   (via  teleconference),   testified  in                                                                   
support of the legislation.                                                                                                     
                                                                                                                                
Vice-Chair  Micciche  drew  attention  to  FN  2,  which  was                                                                   
indeterminate.                                                                                                                  
                                                                                                                                
8:45:40 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:46:09 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator  Hoffman  MOVED  to  report  CS  HCR  4(STA)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSHCR  4(STA)  was   REPORTED  out  of  committee   with  "no                                                                   
recommendation"    and   with   one   previously    published                                                                   
indeterminate fiscal note: FN2 (LEG).                                                                                           
                                                                                                                                
8:47:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:50:03 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 77(FIN)                                                                                                 
     "An  Act  relating to  training  regarding  disabilities                                                                   
     for   police   officers,  probation   officers,   parole                                                                   
     officers,  correctional  officers,  and  village  public                                                                   
     safety  officers;  relating  to guidelines  for  drivers                                                                   
     when encountering  or being stopped by a  peace officer;                                                                   
     relating   to   driver's   license   examinations;   and                                                                   
     relating  to a  voluntary  disability  designation on  a                                                                   
    state identification card and a driver's license."                                                                          
                                                                                                                                
8:50:11 AM                                                                                                                    
                                                                                                                                
BRODIE  ANDERSON,   STAFF,  REPRESENTATIVE   STEVE  THOMPSON,                                                                   
explained  that the  goal of HB  77 was  intended to  improve                                                                   
communication  between  law  enforcement   professionals  and                                                                   
other agencies  that may interact  with individuals  who have                                                                   
no apparent disabilities.                                                                                                       
                                                                                                                                
Vice-Chair Micciche discussed the zero fiscal note.                                                                             
                                                                                                                                
Co-Chair  Kelly  MOVED  to  report   CS  HB  77(FIN)  out  of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
CS  HB  77(FIN)  was  REPORTED  out  of  committee  with  "no                                                                   
recommendation"  and  with  one   previously  published  zero                                                                   
fiscal note: FN3 (ADM).                                                                                                         
                                                                                                                                
8:52:40 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:54:17 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 130                                                                                                           
                                                                                                                                
     "An  Act  relating to  confidential  information  status                                                                   
     and  public   record  status   of  information   in  the                                                                   
     possession  of the  Department of  Revenue; relating  to                                                                   
     interest  applicable  to  delinquent  tax;  relating  to                                                                   
     disclosure  of   oil  and  gas  production   tax  credit                                                                   
     information;  relating to  refunds for  the gas  storage                                                                   
     facility tax  credit, the liquefied natural  gas storage                                                                   
     facility  tax credit,  and  the qualified  in-state  oil                                                                   
     refinery   infrastructure   expenditures   tax   credit;                                                                   
     relating  to the  minimum tax  for certain  oil and  gas                                                                   
     production;  relating  to  the minimum  tax  calculation                                                                   
     for  monthly  installment  payments  of  estimated  tax;                                                                   
     relating  to interest  on  monthly installment  payments                                                                   
     of  estimated  tax;  relating  to  limitations  for  the                                                                   
     application  of tax  credits;  relating to  oil and  gas                                                                   
     production   tax   credits   for  certain   losses   and                                                                   
     expenditures;     relating     to    limitations     for                                                                   
     nontransferable  oil  and  gas  production  tax  credits                                                                   
     based on oil  production and the alternative  tax credit                                                                   
     for  oil and gas  exploration; relating  to purchase  of                                                                   
     tax  credit  certificates  from  the  oil  and  gas  tax                                                                   
     credit fund;  relating to a  minimum for gross  value at                                                                   
     the   point    of   production;   relating    to   lease                                                                   
     expenditures  and tax  credits  for municipal  entities;                                                                   
     adding    a    definition   for    "qualified    capital                                                                   
     expenditure";  adding  a   definition  for  "outstanding                                                                   
     liability   to  the  state";   repealing  oil   and  gas                                                                   
     exploration    incentive    credits;    repealing    the                                                                   
     limitation  on the  application of  credits against  tax                                                                   
     liability   for  lease   expenditures  incurred   before                                                                   
     January  1, 2011;  repealing provisions  related  to the                                                                   
     monthly installment  payments for estimated  tax for oil                                                                   
     and gas produced  before January 1, 2014;  repealing the                                                                   
     oil  and   gas  production  tax  credit   for  qualified                                                                   
     capital  expenditures  and  certain  well  expenditures;                                                                   
     repealing    the   calculation    for   certain    lease                                                                   
     expenditures applicable  before January 1,  2011; making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
8:54:17 AM                                                                                                                    
                                                                                                                                
CURTIS THAYER, ALASKA CHAMBER OF COMMERCE, ANCHORAGE (via                                                                       
teleconference), testified in opposition to SB 130. He                                                                          
thought the state budget was not sustainable.                                                                                   
                                                                                                                                
                                                                                                                                
Vice-Chair Micciche noted that there may be additional                                                                          
testimony for the bill.                                                                                                         
                                                                                                                                
SENATE BILL NO. 206                                                                                                           
                                                                                                                                
     "An   Act  relating   to  a   reinsurance  program   for                                                                   
     residents  who are  high risks  and insurer  assessments                                                                   
     to  cover   the  costs   of  the  reinsurance   program;                                                                   
     relating  to application  for  state innovation  waivers                                                                   
     for health  care insurance;  relating to definitions  of                                                                   
     'residents  who  are high  risks'  and 'covered  lives';                                                                   
     and providing for an effective date."                                                                                      
                                                                                                                                
8:57:27 AM                                                                                                                    
                                                                                                                                
FRED  PARADY, DEPUTY  COMMISSIONER,  DEPARTMENT OF  COMMERCE,                                                                   
COMMUNITY, AND  ECONOMIC DEVELOPMENT,  discussed SB  206. The                                                                   
individual  insurance  market  for health  insurance  in  the                                                                   
state was  in crisis.  He remarked that  there were  only two                                                                   
carriers,  and   one  carrier   was  currently   in  weakened                                                                   
financial  condition.  He stressed  that  both carriers  were                                                                   
losing money  in the individual  market. He pointed  out that                                                                   
the pool was too small and the costs were two high.                                                                             
                                                                                                                                
Senator  Dunleavy   queried  the  factors  the   Division  of                                                                   
Insurance considered when requesting a waiver.                                                                                  
                                                                                                                                
LORI   WING-HEIER,    DIRECTOR,   DIVISION    OF   INSURANCE,                                                                   
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT,                                                                   
explained  that  the  application process  was  intense,  and                                                                   
required  public hearings.  She  remarked that  there was  an                                                                   
examination   of   the   individual  mandate   as   to   when                                                                   
individuals  should be  allowed  to participate.  She  stated                                                                   
that there would  be a determination to eliminate  the tax or                                                                   
penalty for not  participating in the employer  or individual                                                                   
mandate.  She   remarked  that   there  would  be   point  of                                                                   
restrictive  or too  great  a burden  to  participate in  the                                                                   
individual  plans.   She  shared  that  there   was  also  an                                                                   
examination  of  the subsidies  to  "smooth the  curve."  She                                                                   
remarked  that the  current curve  for  subsidies was  stark,                                                                   
with a "line in the sand" for subsidy qualification.                                                                            
                                                                                                                                
Senator Dunleavy  asked what type  of opposition to  the bill                                                                   
the department had encountered.                                                                                                 
                                                                                                                                
Mr.  Parady relayed  that the  bill had  two key  components:                                                                   
the  assessment process;  and  the Section  13.32  innovation                                                                   
waiver.  He  stated  that  there was  no  opposition  to  the                                                                   
waiver  process.  He  furthered   that  AETNA  had  expressed                                                                   
opposition to the assessment plan.                                                                                              
                                                                                                                                
Senator Dunleavy asked  to hear the pros and  cons of leaving                                                                   
the federal plan.                                                                                                               
                                                                                                                                
Mr. Parady  believed the  pros outweighed  the cons,  because                                                                   
there  were  22,000  insured  lives  in  Alaska's  individual                                                                   
insurance market  who generated  financial losses due  to the                                                                   
requirement to cover all individuals.                                                                                           
                                                                                                                                
9:04:19 AM                                                                                                                    
                                                                                                                                
Senator  Olson  queried the  benefits  of  those in  the  IHS                                                                   
system.                                                                                                                         
                                                                                                                                
Mr. Parady deferred to Ms. Wing-Heier.                                                                                          
                                                                                                                                
Ms.  Wing-Heier  replied  that  it  had  not  impact  on  IHS                                                                   
beneficiaries.                                                                                                                  
                                                                                                                                
9:04:48 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Micciche  referred   to  page  2  of  a  document                                                                   
entitled  "SB 206 -  Best Estimate  Consumer Impacts,"  (copy                                                                   
on file),  and noted that the  cost would be spread  to other                                                                   
covered.                                                                                                                        
                                                                                                                                
Ms. Wing-Heier agreed                                                                                                           
                                                                                                                                
Vice-Chair  Micciche queried  the  15 to  18 percent  premium                                                                   
impact.                                                                                                                         
                                                                                                                                
Mr.  Parady  shared  that  the   bill  allowed  the  division                                                                   
authority to set  premiums, and work through  the process. He                                                                   
remarked that there  would be a $55 million  estimated impact                                                                   
on insurance  premiums with  $19.30 projection,  resulting in                                                                   
an 18  percent reduction.  He remarked  that over  the recent                                                                   
two years  there was  a 36  to 40 percent  increase,  and the                                                                   
following  year was expected  to see  a similar increase.  He                                                                   
stressed  that  the  numbers  were  estimates  based  on  the                                                                   
actuarial studies.                                                                                                              
                                                                                                                                
Vice-Chair Micciche  asked if there was a  significant fiscal                                                                   
note,  because  the  state  would  cover  its  own  insurance                                                                   
costs.                                                                                                                          
                                                                                                                                
Mr. Parady  replied in  the negative,  because the  state did                                                                   
not  carry stop  loss premium.  The  state was  self-insured.                                                                   
The affected groups were listed on page 1, but it excluded                                                                      
state employees. Therefore, there was no fiscal note.                                                                           
                                                                                                                                
Ms. Wing-Heier remarked that since the state was self-                                                                          
insured, so those employees were not included in the plan.                                                                      
                                                                                                                                
SB 206 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 130                                                                                                           
                                                                                                                                
     "An  Act  relating to  confidential  information  status                                                                   
     and  public   record  status   of  information   in  the                                                                   
     possession  of the  Department of  Revenue; relating  to                                                                   
     interest  applicable  to  delinquent  tax;  relating  to                                                                   
     disclosure  of   oil  and  gas  production   tax  credit                                                                   
     information;  relating to  refunds for  the gas  storage                                                                   
     facility tax  credit, the liquefied natural  gas storage                                                                   
     facility  tax credit,  and  the qualified  in-state  oil                                                                   
     refinery   infrastructure   expenditures   tax   credit;                                                                   
     relating  to the  minimum tax  for certain  oil and  gas                                                                   
     production;  relating  to  the minimum  tax  calculation                                                                   
     for  monthly  installment  payments  of  estimated  tax;                                                                   
     relating  to interest  on  monthly installment  payments                                                                   
     of  estimated  tax;  relating  to  limitations  for  the                                                                   
     application  of tax  credits;  relating to  oil and  gas                                                                   
     production   tax   credits   for  certain   losses   and                                                                   
     expenditures;     relating     to    limitations     for                                                                   
     nontransferable  oil  and  gas  production  tax  credits                                                                   
     based on oil  production and the alternative  tax credit                                                                   
     for  oil and gas  exploration; relating  to purchase  of                                                                   
     tax  credit  certificates  from  the  oil  and  gas  tax                                                                   
     credit fund;  relating to a  minimum for gross  value at                                                                   
     the   point    of   production;   relating    to   lease                                                                   
     expenditures  and tax  credits  for municipal  entities;                                                                   
     adding    a    definition   for    "qualified    capital                                                                   
     expenditure";  adding  a   definition  for  "outstanding                                                                   
     liability   to  the  state";   repealing  oil   and  gas                                                                   
     exploration    incentive    credits;    repealing    the                                                                   
     limitation  on the  application of  credits against  tax                                                                   
     liability   for  lease   expenditures  incurred   before                                                                   
     January  1, 2011;  repealing provisions  related  to the                                                                   
     monthly installment  payments for estimated  tax for oil                                                                   
     and gas produced  before January 1, 2014;  repealing the                                                                   
     oil  and   gas  production  tax  credit   for  qualified                                                                   
     capital  expenditures  and  certain  well  expenditures;                                                                   
     repealing    the   calculation    for   certain    lease                                                                   
     expenditures applicable  before January 1,  2011; making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
9:07:40 AM                                                                                                                    
                                                                                                                                
DELICE   CALCOPE,   SELF,   SUTTON    (via   teleconference),                                                                   
testified  in  support of  the  bill.  She  was in  favor  of                                                                   
raising taxes on the oil industries.                                                                                            
                                                                                                                                
9:09:42 AM                                                                                                                    
                                                                                                                                
MIKE COONS,  SELF, PALMER (via teleconference),  testified in                                                                   
opposition   to  SB  130.     He   described  himself   as  a                                                                   
conservationist.  He   thought  the  tax  credits   had  been                                                                   
working   and  had   stimulated  more   oil  production   and                                                                   
exploration.                                                                                                                    
                                                                                                                                
Vice-Chair Micciche CLOSED public testimony for SB 130.                                                                         
                                                                                                                                
Vice-Chair Micciche passed the gavel to Co-Chair MacKinnon.                                                                     
                                                                                                                                
SB  130  was   HEARD  and  HELD  in  committee   for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
9:12:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:15:03 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 55                                                                                                            
                                                                                                                                
     "An Act relating to the practice of optometry."                                                                            
                                                                                                                                
9:15:15 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon passed the gavel to Vice-Chair Micciche.                                                                     
                                                                                                                                
SENATOR CATHY GIESSEL, SPONSOR, introduced the legislation:                                                                     
                                                                                                                                
     This   bill   moves  the   continuing   education   (CE)                                                                   
     requirements  back into  regulation, as  desired  by the                                                                   
     Department   of   Commerce,   Community   and   Economic                                                                   
     Development. Continuing  education is still  required by                                                                   
     current  statute, but  the  hours and  subjects will  be                                                                   
     determined  by the  Board  of Optometry,  as with  other                                                                   
     professions.  The current  regulations  require more  CE                                                                   
     hours  than  the  statute  subsection  deleted  by  this                                                                   
     bill.                                                                                                                      
                                                                                                                                
     SB  55 allows  the board  to  determine prescribed  drug                                                                   
     schedules  anticipating  federal  regulations  that  may                                                                   
     change  again in the  future as they  did in  2014; that                                                                   
     regulation  required another  statute  change, and  this                                                                   
     bill  would allow  the board  to move  in step with  its                                                                   
     industry.                                                                                                                  
                                                                                                                                
     This bill  updates the  optometry definition  to reflect                                                                   
     current   education  and   training,  but   specifically                                                                   
     prohibits invasive  surgery. This allows  for future new                                                                   
     and improved  diagnostic  and therapeutic procedures  as                                                                   
     determined by  the board, while not having  to return to                                                                   
     the  legislature for  every  new technological  advance.                                                                   
     It  also defines  that  optometrists  must be  qualified                                                                   
     for any procedure that they perform.                                                                                       
                                                                                                                                
     This  bill  also  further   defines  and  clarifies  the                                                                   
     prohibited  surgical   procedures  under   an  "invasive                                                                   
     surgery"  definition.  Alaska  optometrists  already  do                                                                   
     superficial  surgical  procedures  such  as  removal  of                                                                   
     corneal  foreign  bodies   under  current  statute,  but                                                                   
     nothing invasive would be allowed.                                                                                         
                                                                                                                                
9:24:31 AM                                                                                                                    
                                                                                                                                
Senator  Bishop  thought the  bill's  purpose  was clear.  He                                                                   
referred to  the bill allowing  "new and improved  diagnostic                                                                   
and therapeutic  procedures." He wondered whether  that was a                                                                   
"catch all"  or would there  be additional efforts  to assist                                                                   
the optometrist.                                                                                                                
                                                                                                                                
Senator Giessel deferred to an optometrist.                                                                                     
                                                                                                                                
9:25:53 AM                                                                                                                    
                                                                                                                                
JANE CONWAY, STAFF, SENATOR CATHY GIESSEL, discussed the                                                                        
sectional analysis (copy on file):                                                                                              
                                                                                                                                
     1. Section 1                                                                                                               
                                                                                                                                
     Amends 08.72.050  Regulations. Adds to this  section the                                                                   
     power for  the board to  adopt regulations  allowing the                                                                   
     prescription   and   pharmaceutical   agents   for   the                                                                   
     treatment of  eye disease and also that  under agreement                                                                   
     with  the State  Medical  Board,  it will  describe  the                                                                   
     scope of practice  for a licensee to  perform ophthalmic                                                                   
     surgery and noninvasive procedures.                                                                                        
                                                                                                                                
     2. Section 2.                                                                                                              
                                                                                                                                
     Amends 08.72.181  (d) by  requiring specified  hours and                                                                   
     period  of  continuing education  requirements  for  the                                                                   
     renewal   of  an  optometrist's   license  but   retains                                                                   
     delegation  of  those  requirements   to  the  board  in                                                                   
     regulation.                                                                                                                
                                                                                                                                
     3. Section 3.                                                                                                              
                                                                                                                                
     Repeals  and reenacts  AS 08.72.272(a)  to provide  that                                                                   
     pharmaceutical     agents,      including     controlled                                                                   
     substances,  may be  used by a  licensed optometrist  if                                                                   
     consistent with  standards adopted by the  board and any                                                                   
     limitations on practice under section 5 of the bill.                                                                       
                                                                                                                                
     4. Section 4.                                                                                                              
                                                                                                                                
     08.72.272  amends and adds  new subsections  prohibiting                                                                   
     an  optometrist  to  make  injections  into  the  ocular                                                                   
     globe  of  the  eye  and limits  the  prescribing  of  a                                                                   
     controlled  substance in  a quantity  exceeding a  7-day                                                                   
     supply  and  requires  a  referral  to  a  physician  or                                                                   
    ophthalmologist if a longer prescription is needed.                                                                         
                                                                                                                                
     5. Section 5.                                                                                                              
                                                                                                                                
     08.72 is  amended and a  new section is  added 08.72.278                                                                   
     Limitation  on Practice.  Provides that  a licensee  may                                                                   
     perform only  services within the licensee's  education,                                                                   
     training   and   experience   as   provided   by   board                                                                   
     regulation.                                                                                                                
                                                                                                                                
     6. Section 6                                                                                                               
                                                                                                                                
     08.72.300(3) revises the definition of optometry.                                                                          
                                                                                                                                
9:28:17 AM                                                                                                                    
                                                                                                                                
JILL MATHESON,  ALASKA OPTOMETRIC  ASSOCIATION, testified  in                                                                   
support of the bill.                                                                                                            
                                                                                                                                
Senator Bishop asked Ms. Matheson to restate her concern.                                                                       
                                                                                                                                
Ms. Matheson replied at Section 1, line 6.                                                                                      
                                                                                                                                
Senator  Olson  asked  if  Ms.   Matheson  had  been  on  the                                                                   
Optometry Board.                                                                                                                
                                                                                                                                
Ms. Matheson  stated she  was on the  board for  eight years,                                                                   
and in that time there had been no complaints.                                                                                  
                                                                                                                                
Senator  Olson  asked  how  the bill  changed  the  scope  of                                                                   
practice for optometrists.                                                                                                      
                                                                                                                                
Ms. Matheson  thought the  bill allowed  for optometrists  to                                                                   
provide for patients at the highest level of care.                                                                              
                                                                                                                                
Senator Olson  asked if  Ms. Matheson  had ever practiced  in                                                                   
rural Alaska.                                                                                                                   
                                                                                                                                
Ms. Matheson replied in the negative.                                                                                           
                                                                                                                                
9:35:10 AM                                                                                                                    
                                                                                                                                
JEFF   GONNASON,   LEGISLATIVE    CHAIR,   ALASKA   OPTOMETRY                                                                   
ASSOCIATION  (via teleconference),  testified  in support  of                                                                   
the bill.                                                                                                                       
                                                                                                                                
Senator  Olson  wondered  if there  were  any  other  trained                                                                   
professions that were classified under two boards.                                                                              
                                                                                                                                
Mr. Gonnason replied in the negative.                                                                                           
                                                                                                                                
9:40:24 AM                                                                                                                    
                                                                                                                                
Senator  Olson   wondered  if  there  were   any  significant                                                                   
changes in training.                                                                                                            
                                                                                                                                
Mr.  Gonnason relayed  that medicine,  dentistry,  optometry,                                                                   
and  health  care  had  expanded greatly  in  ten  to  twenty                                                                   
years. There were new drugs and procedures.                                                                                     
                                                                                                                                
9:41:39 AM                                                                                                                    
                                                                                                                                
DR.  PAUL BARNEY,  CHAIRMAN,  BOARD OF  OPTOMETRY,  ANCHORAGE                                                                   
(via teleconference),  testified in  support of the  bill. He                                                                   
thought the CS  for SB 55 (L&C) was excellently  written with                                                                   
the exception  of the aforementioned language  specifying the                                                                   
State Medical  Board. He  urged the  committee to  strike the                                                                   
State Medical Board language from the bill.                                                                                     
                                                                                                                                
9:46:22 AM                                                                                                                    
                                                                                                                                
DR.    CARL    ROSEN,    OPTHAMOLOGIST,     ANCHORAGE    (via                                                                   
teleconference),  testified  in opposition  to  the bill.  He                                                                   
discussed primary  eye care, which  was part of  his purview.                                                                   
He thought  the bill  was a  big pivot  point for  optometry,                                                                   
and  urged caution.  He  thought it  was  important that  the                                                                   
State Medical Board was involved.                                                                                               
                                                                                                                                
Senator  Olson  thanked  Dr.  Rosen  for  practicing  in  the                                                                   
state. He  asked if Dr.  Rosen had ever  been on  the medical                                                                   
board. He  shared that  he had never  been an elected  member                                                                   
of  the medical  board. Dr.  Rosen replied  in the  negative,                                                                   
but  he  had  worked closely  with  someone  on  the  medical                                                                   
board.                                                                                                                          
                                                                                                                                
Senator  Olson  asked if  Dr.  Rosen  was familiar  with  the                                                                   
training for  optometrists. Dr.  Rosen recounted that  he had                                                                   
visited an optometry  school, and was boycotted.  He stressed                                                                   
that  ophthalmology   was  a   select  sub-specialty   within                                                                   
medicine.                                                                                                                       
                                                                                                                                
9:52:47 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked if  Dr.  Rosen  had ever  practiced  in                                                                   
rural Alaska. Dr. Rosen replied in the negative.                                                                                
                                                                                                                                
Senator Olson  wondered if  the ophthalmologists  were behind                                                                   
the negative media advertisements.                                                                                              
                                                                                                                                
Mr. Rosen  stressed that  it was an  onerous task  to testify                                                                   
about  this  issue.  He  remarked  that  optometrists  should                                                                   
become  ophthalmologists,  should they  want  to achieve  the                                                                   
proposals laid out in the legislation.                                                                                          
                                                                                                                                
Senator  Olson commented  that  he was  somewhat offended  by                                                                   
the advertisements.                                                                                                             
                                                                                                                                
9:55:18 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  asked for an  explanation of what  the bill                                                                   
would  allow or  not allow  optometrists  to do  in terms  of                                                                   
surgery.                                                                                                                        
                                                                                                                                
Senator  Giessel stated  that there  were invasive  surgeries                                                                   
that ophthalmologists did on the eye that were prohibited.                                                                      
                                                                                                                                
Senator  Dunleavy asked  about the  surface of  the eye,  and                                                                   
procedures such  as Lasik surgery  or cataracts.  He wondered                                                                   
what medical professionals currently performed the surgery.                                                                     
                                                                                                                                
Senator Giessel  believed that Lasik and  cataracts surgeries                                                                   
were not performed by optometrists.                                                                                             
                                                                                                                                
10:00:40 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Micciche referred  to  Section 4  and Section  5,                                                                   
which discussed the limitations of optometry practice.                                                                          
                                                                                                                                
Senator Bishop  felt that  there could be  a referral  for an                                                                   
emergency procedure.                                                                                                            
                                                                                                                                
Senator   Giessel  thought   that  certainly   a  fish   hook                                                                   
penetrating  the globe  of the  eye in to  the vitreous,  and                                                                   
remarked  there  would probably  be  a referral.  She  shared                                                                   
that telehealth was currently expanding.                                                                                        
                                                                                                                                
10:04:02 AM                                                                                                                   
                                                                                                                                
Vice-Chair Micciche CLOSED public testimony.                                                                                    
                                                                                                                                
Senator  Olson asked  about medical  professionals that  were                                                                   
governed by two boards.                                                                                                         
                                                                                                                                
SARA CHAMBERS,  ADMINISTRATIVE  OPERATIONS MANAGER,  DIVISION                                                                   
OF  CORPORATIONS,   BUSINESS   AND  PROFESSIONAL   LICENSING,                                                                   
DEPARTMENT OF  COMMERCE, COMMUNITY AND ECONOMIC  DEVELOPMENT,                                                                   
stated that the current model was not like any other model.                                                                     
                                                                                                                                
Senator Olson wondered  whether the medical board  could take                                                                   
action against the licensee.                                                                                                    
                                                                                                                                
Ms.  Chambers  looked  at  page   1,  line  12,  which  posed                                                                   
logistical  concerns.  She  noted that  because  AS  08.08.64                                                                   
were not amended,  there was not requirement  for the medical                                                                   
board  to  enter   into  an  agreement  with   the  Board  of                                                                   
Examiners  in  Optometry.  She  felt  that  there  were  some                                                                   
logistical  concerns that  would  stymie the  efforts of  the                                                                   
bill.                                                                                                                           
                                                                                                                                
Senator  Olson   wondered  whether  the  department   was  in                                                                   
support of the current version of the bill.                                                                                     
                                                                                                                                
Ms.  Chambers replied  that  the department  did  not have  a                                                                   
position on  the bill. There  was concern with  the logistics                                                                   
and   operations.   There   were   conversations   with   the                                                                   
Department of Law.                                                                                                              
                                                                                                                                
Senator Olson agreed with that concern.                                                                                         
                                                                                                                                
Senator Dunleavy  asked why  the department  had not  taken a                                                                   
position on the bill.                                                                                                           
                                                                                                                                
Ms. Chambers stated  that when there was a  clear desire from                                                                   
one board  to accomplish  a goal, the  department may  take a                                                                   
position to support  the board. She remarked  that there were                                                                   
two  entities  involved  in support  and  opposition  to  the                                                                   
bill, so the department would not take a position.                                                                              
                                                                                                                                
10:08:02 AM                                                                                                                   
                                                                                                                                
Senator Dunleavy  thought it made  sense that  the department                                                                   
should  take a  position, when  the  issue was  related to  a                                                                   
life or  death situation. He  wondered if the  bill contained                                                                   
anything  dangerous. He  assumed that  not taking a  position                                                                   
indicated no problem with the bill.                                                                                             
                                                                                                                                
Senator Olson  replied that  the department  was not  full of                                                                   
trained medical professionals.                                                                                                  
                                                                                                                                
Senator  Dunleavy  thought the  bills  he had  sponsored  had                                                                   
garnered  opinions from  those who  were not  experts in  the                                                                   
field.                                                                                                                          
                                                                                                                                
Vice-Chair Micciche  thought it was specifically  a "Dunleavy                                                                   
problem."                                                                                                                       
                                                                                                                                
10:09:58 AM                                                                                                                   
                                                                                                                                
Senator Olson MOVED to ADOPT Amendment 1:                                                                                       
                                                                                                                                
     Page 1, line 12:                                                                                                           
                                                                                                                                
          Delete "by agreement with the State Medical                                                                           
          Board."                                                                                                               
                                                                                                                                
Vice-Chair Micciche OBJECTED for discussion.                                                                                    
                                                                                                                                
Senator Olson explained the amendment. He felt that                                                                             
optometrists should not be overseen by two boards.                                                                              
                                                                                                                                
Co-Chair Kelly asked the sponsor's opinion on the                                                                               
amendment.                                                                                                                      
                                                                                                                                
Senator Giessel expressed her support for the amendment.                                                                        
                                                                                                                                
Vice-Chair Micciche removed his objection.  There being NO                                                                      
OBJECTION, Amendment 1 was ADOPTED.                                                                                             
                                                                                                                                
Vice-Chair Micciche stated that the committee would hold                                                                        
the bill.  He discussed the afternoon schedule.                                                                                 
                                                                                                                                
SB 55 was HEARD and HELD in committee for further                                                                               
consideration.                                                                                                                  
                                                                                                                                
HOUSE BILL NO. 247                                                                                                            
                                                                                                                                
     "An  Act  relating to  confidential  information  status                                                                   
     and  public   record  status   of  information   in  the                                                                   
     possession  of the  Department of  Revenue; relating  to                                                                   
     interest  applicable  to  delinquent  tax;  relating  to                                                                   
     disclosure  of   oil  and  gas  production   tax  credit                                                                   
     information;  relating to  refunds for  the gas  storage                                                                   
     facility tax  credit, the liquefied natural  gas storage                                                                   
     facility  tax credit,  and  the qualified  in-state  oil                                                                   
     refinery   infrastructure   expenditures   tax   credit;                                                                   
     relating  to the  minimum tax  for certain  oil and  gas                                                                   
     production;  relating  to  the minimum  tax  calculation                                                                   
     for  monthly  installment  payments  of  estimated  tax;                                                                   
     relating  to interest  on  monthly installment  payments                                                                   
     of  estimated  tax;  relating  to  limitations  for  the                                                                   
     application  of tax  credits;  relating to  oil and  gas                                                                   
     production   tax   credits   for  certain   losses   and                                                                   
     expenditures;     relating     to    limitations     for                                                                   
     nontransferable  oil  and  gas  production  tax  credits                                                                   
     based on oil  production and the alternative  tax credit                                                                   
     for  oil and gas  exploration; relating  to purchase  of                                                                   
     tax  credit  certificates  from  the  oil  and  gas  tax                                                                   
     credit fund;  relating to a  minimum for gross  value at                                                                   
     the   point    of   production;   relating    to   lease                                                                   
     expenditures  and tax  credits  for municipal  entities;                                                                   
     adding    a    definition   for    "qualified    capital                                                                   
     expenditure";  adding  a   definition  for  "outstanding                                                                   
     liability   to  the  state";   repealing  oil   and  gas                                                                   
     exploration    incentive    credits;    repealing    the                                                                   
     limitation  on the  application of  credits against  tax                                                                   
     liability   for  lease   expenditures  incurred   before                                                                   
     January  1, 2011;  repealing provisions  related  to the                                                                   
     monthly installment  payments for estimated  tax for oil                                                                   
     and gas produced  before January 1, 2014;  repealing the                                                                   
     oil  and   gas  production  tax  credit   for  qualified                                                                   
     capital  expenditures  and  certain  well  expenditures;                                                                   
     repealing    the   calculation    for   certain    lease                                                                   
     expenditures applicable  before January 1,  2011; making                                                                   
     conforming  amendments; and  providing for an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
HB 247 was SCHEDULED but not HEARD.                                                                                             
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:12:50 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:12 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 77 CSHB 77 Sponsor Statement 3 11 16.pdf SFIN 4/14/2016 8:00:00 AM
HB 77
HB 77 Disability Training and Identification Bill support senator mackinnon.docx SFIN 4/14/2016 8:00:00 AM
HB 77
HB 77- Supporting Documentation.pdf SFIN 4/14/2016 8:00:00 AM
HB 77
HB 77 Summary of Changes ver. W-ver. E-, ver. P 4-5-2016.pdf SFIN 4/14/2016 8:00:00 AM
HB 77
HCR 4 Support Document - Article V text.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Sectional Analysis.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Sponsor Statement.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Support Document - emails.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Support Document, Louisiana.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Support Document, New Mexico Rep. Herrell.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
HCR4 Support Document, North Dakota Rep. Fehr.pdf SFIN 4/14/2016 8:00:00 AM
HCR 4
SB 55 Sponsor Statement vsn I.pdf SFIN 4/14/2016 8:00:00 AM
SB 55
SB 55 CSSB 55(LC) Sectional Analysis 4-12-16.pdf SFIN 4/14/2016 8:00:00 AM
SB 55
SB 55 Amendment 1 Olson.pdf SFIN 4/14/2016 8:00:00 AM
SB 55