Legislature(2015 - 2016)SENATE FINANCE 532

04/16/2016 09:00 AM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as
Download Video part 2. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 100 UREA/AMMONIA/GAS-LIQ FACILITY; TAX CREDIT TELECONFERENCED
Moved SCS CSHB 100(FIN) Out of Committee
+= HB 83 REPEAL COLLECTION OF CIVIL LITIG. INFO TELECONFERENCED
Moved CSHB 83(JUD) Out of Committee
+= HB 155 FEES; WAIVERS; CREDITS; DEDUCTIONS;TAXES TELECONFERENCED
Moved SCS CSHB 155(L&C) Out of Committee
+= HB 231 EXTEND BOARD OF PAROLE TELECONFERENCED
Moved SCS CSHB 231(STA) Out of Committee
+= HB 375 ELECTRONIC TAX RETURNS & REPORTS TELECONFERENCED
Moved CSHB 375(FIN) Out of Committee
+= HB 156 SCHOOL ACCOUNTABILITY MEASURES; FED. LAW TELECONFERENCED
Moved SCS CSHB 156(FIN) Out of Committee
+= HB 41 SPORT FISHING SERVICES TELECONFERENCED
Heard & Held
+= HB 259 RELOCATION ASSISTANCE FOR FED. PROJ/PROG TELECONFERENCED
Heard & Held
+= SB 130 TAX;CREDITS;INTEREST;REFUNDS;O & G TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Janak Mayer, Chairman and Chief Technologist, TELECONFERENCED
enalytica
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 16, 2016                                                                                            
                         9:07 a.m.                                                                                              
                                                                                                                                
9:07:07 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:07 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                                                                                                                  
                                                                                                                                
Tom  Wright, Staff,  Senator  Mike Chenault;  Representative                                                                    
Gabrielle   LeDoux,   Sponsor;   Brodie   Anderson,   Staff,                                                                    
Representative   Steve  Thompson;   Esther  Mielke,   Staff,                                                                    
Representative    Bob   Lynn;    Konrad   Jackson,    Staff,                                                                    
Representative   Kurt    Olson;   Jerry    Burnett,   Deputy                                                                    
Commissioner,  Treasury  Division,  Department  of  Revenue;                                                                    
Representative Wes  Keller, Sponsor; Benjamin  Huber, Staff,                                                                    
Senator  Mike  Dunleavy;  Erin Shine,  Staff,  Senator  Anna                                                                    
MacKinnon;   Thor   Stacey,  Alaska   Professional   Hunters                                                                    
Association,  Juneau;  Kevin  Brooks,  Deputy  Commissioner,                                                                    
Department  of Fish  and  Game;  Mark Luiken,  Commissioner,                                                                    
Department of Transportation  and Public Facilities; Heather                                                                    
Fair,  Chief,   Statewide  Right   of  Way,   Department  of                                                                    
Transportation and Public  Facilities; Janak Mayer, Chairman                                                                    
and Chief Technologist, enalytica.                                                                                              
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
April  Wilkerson,   Director,  Division   of  Administrative                                                                    
Services,   Department   of   Corrections;   Jeff   Edwards,                                                                    
Executive Director, Parole Board; Tom Brookover, Director,                                                                      
Division of Sport Fish, Department of Fish and Game; Seth                                                                       
Beausang, Assistant Attorney, Department of Law.                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 130    TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                                    
                                                                                                                                
          SB  130  was  HEARD  and  HELD  in  committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 41(FIN)am                                                                                                                  
          SPORT FISHING SERVICES                                                                                                
                                                                                                                                
          CSHB 41(FIN)  was HEARD and HELD  in committee for                                                                    
          further consideration.                                                                                                
                                                                                                                                
CSHB 83(JUD)                                                                                                                    
          REPEAL COLLECTION OF CIVIL LITIG. INFO                                                                                
                                                                                                                                
          CSHB 83(JUD)  was REPORTED  out of  committee with                                                                    
          "no  recommendation"  and  with  three  previously                                                                    
          published  zero   fiscal  notes:  FN   3(ADM);  FN                                                                    
          4(LAW); FN 5(AJS).                                                                                                    
                                                                                                                                
CSHB 100(FIN)                                                                                                                   
         UREA/AMMONIA/GAS-LIQ FACILITY; TAX CREDIT                                                                              
                                                                                                                                
          SCS CSHB  100(FIN) was  REPORTED out  of committee                                                                    
          with  a  "do  pass" recommendation  and  with  the                                                                    
          previously published fiscal note: FN2 (REV).                                                                          
                                                                                                                                
CSHB 155(FIN)                                                                                                                   
         FEES; WAIVERS; CREDITS; DEDUCTIONS;TAXES                                                                               
                                                                                                                                
          SCS CSHB  155(L&C) was  REPORTED out  of committee                                                                    
          with  "no recommendation"  and with  one new  zero                                                                    
          fiscal note from the Department of Revenue.                                                                           
                                                                                                                                
CSHB 156(EDC)am                                                                                                                 
         SCHOOL ACCOUNTABILITY MEASURES; FED. LAW                                                                               
                                                                                                                                
          SCS CSHB  156(FIN) was  REPORTED out  of committee                                                                    
          with  "no recommendation"  and with  one new  zero                                                                    
          fiscal note  from the Department of  Education and                                                                    
          Early Development.                                                                                                    
                                                                                                                                
CSHB 231(FIN)                                                                                                                   
          EXTEND BOARD OF PAROLE                                                                                                
                                                                                                                                
          SCS CSHB 231(STA) was REPORTED out of committee                                                                       
          with "no recommendation" and with the previously                                                                      
         published fiscal impact note: FN 3(COR).                                                                               
                                                                                                                                
HB 259    RELOCATION ASSISTANCE FOR FED. PROJ/PROG                                                                              
                                                                                                                                
          HB 259 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 375(FIN)                                                                                                                   
          ELECTRONIC TAX RETURNS & REPORTS                                                                                      
                                                                                                                                
          CSHB 375(FIN) was REPORTED out of committee with                                                                      
          "no recommendation" and with one previously                                                                           
          published indeterminate fiscal note: FN 1(REV).                                                                       
                                                                                                                                
CS FOR HOUSE BILL NO. 100(FIN)                                                                                                
                                                                                                                                
     "An Act  establishing a credit  against the  net income                                                                    
     tax   for   an   in-state  processing   facility   that                                                                    
     manufactures urea, ammonia,  or gas-to-liquid products;                                                                    
     relating  to  establishing  the value  of  the  state's                                                                    
     royalty  share of  gas  production  based on  contracts                                                                    
     with  certain   in-state  processing   facilities  that                                                                    
     manufacture urea, ammonia,  or gas-to- liquid products;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:08:01 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:08:28 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:08:55 AM                                                                                                                    
                                                                                                                                
TOM WRIGHT, STAFF, SENATOR MIKE CHENAULT, explained the                                                                         
legislation.                                                                                                                    
                                                                                                                                
9:11:02 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:11:17 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:11:22 AM                                                                                                                    
                                                                                                                                
Senator Bishop MOVED to ADOPT Amendment 1, 29-LS0423\S.4,                                                                       
Nauman, 4/12/16 (copy on file):                                                                                                 
                                                                                                                                
     Page2, line 8:                                                                                                             
     Delete "and"                                                                                                               
                                                                                                                                
     Page 2, line 20, following the second occurrence of                                                                        
     "gas":                                                                                                                     
                                                                                                                                
          Insert "; and                                                                                                         
                                                                                                                                
          (3) the agreement requires, to the maximum extent                                                                     
          permitted by law, the lessee to                                                                                       
                                                                                                                                
               (A) hire qualified  residents from throughout                                                                    
               the  state for  the management,  engineering,                                                                    
               construction, operation,  and maintenance of,                                                                    
               and  other  positions   for,  a  natural  gas                                                                    
               pipeline project;                                                                                                
               (B) establish hiring  facilities in the state                                                                    
               or  use  existing  hiring facilities  in  the                                                                    
               state; and                                                                                                       
               (C)  use,  as  far as  practicable,  the  job                                                                    
               centers and  associated services  operated by                                                                    
               the   Department  of   Labor  and   Workforce                                                                    
               Development   and  an   Internet-based  labor                                                                    
               exchange system operated by the state"                                                                           
                                                                                                                                
     Page 3, line 5, following "shall":                                                                                         
                                                                                                                                
          Insert"(l)"                                                                                                           
                                                                                                                                
     Page 3, line 10, following "gas":                                                                                          
                                                                                                                                
          Insert "; and demonstrate to the department that                                                                      
          the taxpayer, to the maximum extent possible,                                                                         
                                                                                                                                
     A) hires qualified residents  from throughout the state                                                                    
     for   the    management,   engineering,   construction,                                                                    
     operation,  and  maintenance  of, and  other  positions                                                                    
     for, a natural gas pipeline project;                                                                                       
     (B) establishes hiring facilities in the state or uses                                                                     
     existing hiring facilities in the state; and                                                                               
     (C) uses,  as far as  practicable, the job  centers and                                                                    
     associated  services  operated  by  the  Department  of                                                                    
     Labor  and Workforce  Development or  an Internet-based                                                                    
     labor exchange system operated by the state"                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Senator Bishop  explained the amendment.  He stated  that it                                                                    
complemented the intent of the bill.                                                                                            
                                                                                                                                
Senator  Hoffman  wanted  to  be  listed  as  a  sponsor  of                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Senator  Dunleavy queried  the  change to  page  2, line  6.                                                                    
Senator Bishop replied  that the job center  system would be                                                                    
used to access the labor in the state.                                                                                          
                                                                                                                                
Senator Dunleavy  surmised that private and  public entities                                                                    
could access the system. Senator Bishop agreed                                                                                  
                                                                                                                                
9:13:58 AM                                                                                                                    
                                                                                                                                
Senator  Olson  wondered  if there  were  any  disagreements                                                                    
between Pt.  Thompson as opposed  to Cook Inlet,  as related                                                                    
to   constitutionality.  Senator   Bishop  replied   in  the                                                                    
negative.                                                                                                                       
                                                                                                                                
Senator   Olson   wondered   whether   the   amendment   was                                                                    
constitutional. Senator Bishop replied in the affirmative.                                                                      
                                                                                                                                
Senator Olson  asked whether the  sponsor was in  support of                                                                    
the amendment. Senator Bishop replied in the affirmative.                                                                       
                                                                                                                                
Co-Chair MacKinnon asked whether  the sponsor was in support                                                                    
of the amendment. Mr. Wright replied in the affirmative.                                                                        
                                                                                                                                
Vice-Chair Micciche supported the  amendment. He asked to be                                                                    
a cosponsor of the amendment. He  did not feel that the bill                                                                    
created an issue with constitutionality.                                                                                        
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION, Amendment 1 was adopted.                                                                                             
                                                                                                                                
Vice-Chair Micciche explained the fiscal note.                                                                                  
                                                                                                                                
                                                                                                                                
Vice-Chair Micciche  MOVED to report  SCS CSHB  100(FIN) out                                                                    
of  Committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 100(FIN)  was REPORTED out of committee  with a "do                                                                    
pass"  recommendation  and  with  the  previously  published                                                                    
fiscal note: FN2 (REV).                                                                                                         
                                                                                                                                
9:17:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:20:49 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 83(JUD)                                                                                                 
                                                                                                                                
     "An Act relating to  collecting information about civil                                                                    
     litigation  by the  Alaska Judicial  Council; repealing                                                                    
     Rule  41(a)(3), Alaska  Rules of  Civil Procedure,  and                                                                    
     Rules  511(c)  and  (e),   Alaska  Rules  of  Appellate                                                                    
     Procedure; and providing for an effective date."                                                                           
                                                                                                                                
9:21:13 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Micciche   discussed   the   three   previously                                                                    
published fiscal notes.                                                                                                         
                                                                                                                                
9:22:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE  LEDOUX,  SPONSOR,  discussed  the                                                                    
legislation:                                                                                                                    
                                                                                                                                
      In  2005, Alaska  moved away  from  a defined  benefit                                                                    
     (DB) to  a defined contribution (DC)  retirement system                                                                    
     for public  employees hired after July  1st, 2006. Both                                                                    
     the  DB and  DC  plans contain  risks  and benefits  to                                                                    
     employees  and  employers. With  a  DB  plan comes  the                                                                    
     advantage  of  professional   money  management,  lower                                                                    
     fees, pooled risk and  long term investment strategies.                                                                    
     However,   employers   carry    significant   risk   if                                                                    
     investment returns fall  short or actuarial predictions                                                                    
     prove inaccurate, which they are  shielded from in a DC                                                                    
     plan.  Taking  both  of  these   points  of  view  into                                                                    
     account, the Variable  Benefit Retirement System (VBRS)                                                                    
     was developed.                                                                                                             
                                                                                                                                
     The goal  of the  VBRS is to  fund a  retirement system                                                                    
     for  public  safety   employees  through  employee  and                                                                    
     employer  contributions  that  will provide  for  self-                                                                    
     sufficient   retirees   and   protect   employers   and                                                                    
     taxpayers from  the liability suffered in  the event of                                                                    
     plan  shortfalls. It  affords  public safety  employees                                                                    
     the distinct  advantages and efficiencies of  a DB plan                                                                    
     by guaranteeing  a benefit  level and  medical stipend,                                                                    
     and  affords   employers  the  fiscal   discipline  and                                                                    
     control  of  a  DC  plan by  maintaining  a  fixed  22%                                                                    
     employer contribution  and adjusting benefit  levels to                                                                    
     address  any changes  in the  size of  the fund.  Other                                                                    
     features of the plan include:                                                                                              
                                                                                                                                
                                                                                                                                
          ages,  adjustable medical  stipend and  adjustable                                                                    
          employees   contribution   rates  to   deal   with                                                                    
          shortfalls and maintain a healthy fund                                                                                
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 100 Amendment S.4 Bishop.pdf SFIN 4/16/2016 9:00:00 AM
HB 100
HB 41 Amendment 2 Olson.pdf SFIN 4/16/2016 9:00:00 AM
HB 41
HB 41 Amendment 1 Dunleavy.pdf SFIN 4/16/2016 9:00:00 AM
HB 41
HB 156 Amendment 1 Micciche.pdf SFIN 4/16/2016 9:00:00 AM
HB 156
HB 156 Conceptual Amendement to Amendment 1 Micchiche.pdf SFIN 4/16/2016 9:00:00 AM
HB 156