Legislature(2017 - 2018)SENATE FINANCE 532

04/13/2017 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ HB 137 ST. COUNCIL ON THE ARTS: PUBLIC CORP. TELECONFERENCED
Moved SCS HB 137(FIN) Out of Committee
+= SB 78 PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY TELECONFERENCED
Moved CSSB 78(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 13, 2017                                                                                            
                         9:06 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:06:51 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 9:06 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Shelley Hughes                                                                                                          
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Juli  Lucky, Staff,  Senator Anna  MacKinnon; Representative                                                                    
Harriet  Drummond,   Sponsor;  Kristen   Kranendonk,  Staff,                                                                    
Representative  Harriet  Drummond;  Benjamin  Brown,  Chair,                                                                    
State Council on the Arts.                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 78     PERM FUND DIVIDEND CONTRIBUTIONS/LOTTERY                                                                              
                                                                                                                                
          CSSB 78(FIN) was REPORTED out  of committee with a                                                                    
          "do pass"  recommendation and with and  with a new                                                                    
          fiscal   impact  note   by   the  Senate   Finance                                                                    
          Committee  for  the  Department  of  Revenue;  one                                                                    
          previously published zero  fiscal note: FN1 (LAW);                                                                    
          and one  previously published fiscal  impact note:                                                                    
          FN3 (REV).                                                                                                            
                                                                                                                                
HB 137    ST. COUNCIL ON THE ARTS: PUBLIC CORP.                                                                                 
                                                                                                                                
                                                                                                                                
          SCS HB  137 was REPORTED  out of committee  with a                                                                    
          "do pass"  recommendation and with  two previously                                                                    
          published  fiscal   impact  notes:   FN2(EED)  and                                                                    
          FN3(EED).                                                                                                             
                                                                                                                                
SENATE BILL NO. 78                                                                                                            
                                                                                                                                
     "An Act  creating the education endowment  fund and the                                                                    
     dividend lottery  fund; authorizing  contributions from                                                                    
     the  permanent fund  dividend to  the dividend  lottery                                                                    
     fund; relating  to transfers from the  dividend lottery                                                                    
     fund and the education  endowment fund; relating to the                                                                    
     definition   of  'gambling';   and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:07:33 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon relayed  that  the  committee had  heard                                                                    
SB 78 twice and  had opened and closed  public testimony. At                                                                    
the  most   recent  hearing  the  committee   had  discussed                                                                    
prioritization   of   voluntary    contributions   from   an                                                                    
individual's dividend check.                                                                                                    
                                                                                                                                
Vice-Chair Bishop MOVED to ADOPT Amendment 1, 30-LS0534\M.2                                                                     
(Martin, 4/12/17) (copy on file):                                                                                               
                                                                                                                                
     Page 1, line 4, following "fund;":                                                                                         
          Insert "relating to the duties of the Department                                                                      
          of Revenue;"                                                                                                          
                                                                                                                                
     Page 2, following line 20:                                                                                                 
          Insert a new bill section to read:                                                                                    
          "* Sec. 2. AS 43 .23 .055 is amended to read:                                                                         
          Sec. 43.23.055. Duties of the department. The                                                                         
          department shall                                                                                                      
                                                                                                                                
               (1)  annually  pay permanent  fund  dividends                                                                    
               from the dividend fund;                                                                                          
               (2) subject  to AS 43.23.011  and [PARAGRAPH]                                                                    
               (8) of this  section, adopt regulations under                                                                    
               AS 44.62 (Administrative  Procedure Act) that                                                                    
               establish  procedures  and  time  limits  for                                                                    
               claiming  a  permanent   fund  dividend;  the                                                                    
               department  shall  determine  the  number  of                                                                    
               eligible applicants by October  1 of the year                                                                    
               for which  the dividend  is declared  and pay                                                                    
               the dividends by December 31 of that year;                                                                       
               (3)   adopt   regulations  under   AS   44.62                                                                    
               (Administrative    Procedure     Act)    that                                                                    
               establish procedures  and time limits  for an                                                                    
               individual   upon    emancipation   or   upon                                                                    
               reaching  majority  to  apply  for  permanent                                                                    
               fund dividends  not received  during minority                                                                    
               because  the   parent,  guardian,   or  other                                                                    
               authorized  representative did  not apply  on                                                                    
               behalf of the individual;                                                                                        
               (4)   assist   residents    of   the   state,                                                                    
               particularly in  rural areas, who  because of                                                                    
               language,  disability, or  inaccessibility to                                                                    
               public  transportation  1need  assistance  to                                                                    
               establish  eligibility   and  to   apply  for                                                                    
               permanent fund dividends;                                                                                        
               (5) use a list  of individuals ineligible for                                                                    
               a  dividend  under AS  43.23.005(d)  provided                                                                    
               annually  by  the Department  of  Corrections                                                                    
               and  the  Department   of  Public  Safety  to                                                                    
               determine  the number  and identity  of those                                                                    
               individuals;                                                                                                     
               (6) adopt  regulations that are  necessary to                                                                    
               implement AS 43.23.005(d);                                                                                       
               (7)   adopt    regulations   that   establish                                                                    
               procedures  for  the   parent,  guardian,  or                                                                    
               other   authorized    representative   of   a                                                                    
               disabled individual  to apply for  prior year                                                                    
               permanent fund dividends  not received by the                                                                    
               disabled  individual  because no  application                                                                    
               was submitted on behalf of the individual;                                                                       
               (8)   adopt    regulations   that   establish                                                                    
               procedures  for  an  individual to  apply  to                                                                    
               have   a  dividend   disbursement  under   AS                                                                    
               37.25.050(a)(2)   reissued  if   it  is   not                                                                    
               collected within two years  after the date of                                                                    
               its  issuance;  however, the  department  may                                                                    
               not establish  a time  limit within  which an                                                                    
               application to  have a  disbursement reissued                                                                    
               must be filed;                                                                                                   
               (9)  provide any  information, upon  request,                                                                    
               contained in permanent  fund dividend records                                                                    
               to the child  support services agency created                                                                    
               in  AS  25.27.0  10,  or  the  child  support                                                                    
               enforcement  agency  of  another  state,  for                                                                    
               child support purposes  authorized under law;                                                                    
               if  the   information  is  contained   in  an                                                                    
               electronic  data base,  the department  shall                                                                    
               provide the requesting agency with either                                                                        
                    (A) access to the data base; or                                                                             
                    (B)  a copy  of the  information in  the                                                                    
                    data  base  and a  statement  certifying                                                                    
                    its contents;                                                                                               
               (10)  establish  a fraud  investigation  unit                                                                    
               for the purpose of assisting the                                                                                 
                    (A)   Department    of   Law    in   the                                                                    
                    prosecution  of  individuals  who  apply                                                                    
                    for or obtain  a permanent fund dividend                                                                    
                    in violation  of a  provision in  AS 11,                                                                    
                    by  detecting  and  investigating  those                                                                    
                    crimes; and                                                                                                 
                    (B)    commissioner   to    detect   and                                                                    
                    investigate  the claiming  or paying  of                                                                    
                    permanent  fund  dividends  that  should                                                                    
                    not have  been claimed by or  paid to an                                                                    
                    individual and  to impose  the penalties                                                                    
                    and  enforcement   provisions  under  AS                                                                    
                    43.13.035                                                                                                   
               (11)   adopt  regulations   under  AS   44.62                                                                    
               (Administrative   Procedure   Act)  so   that                                                                    
               contributions under AS  43.23.062 are given a                                                                    
               priority  over donations  under AS  43.23.064                                                                    
               if  the  total  amount of  contributions  and                                                                    
               donations  elected  by an  applicant  exceeds                                                                    
               the  amount of  the  permanent fund  dividend                                                                    
               that the applicant is entitled to receive.                                                                       
                                                                                                                                
    Renumber the following bill sections accordingly."                                                                          
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
9:08:18 AM                                                                                                                    
                                                                                                                                
JULI  LUCKY,   STAFF,  SENATOR  ANNA   MACKINNON,  discussed                                                                    
Amendment 1  (copy on file).  She stated that  the amendment                                                                    
had been drafted at the  request of the sponsor. She relayed                                                                    
that while  the amendment  was lengthy, it  only effectively                                                                    
did  one thing.  She  referred  to page  2,  line 29,  which                                                                    
indicated that  the amendment would prioritize  the existing                                                                    
Pick  Click Give  program under  AS 43.23.062  over the  new                                                                    
raffle program  proposed in  the bill  and enacted  under AS                                                                    
43.23.064. She explained that if  a person had promised more                                                                    
of their  dividend in voluntary  reductions than  they would                                                                    
receive, then  the Pick Click  Give program  donations would                                                                    
be paid first,  and the raffle tickets  would be prioritized                                                                    
second.                                                                                                                         
                                                                                                                                
Co-Chair   MacKinnon    recalled   that    under   voluntary                                                                    
contributions,  the University  of  Alaska Scholars  Program                                                                    
was  the   first  item  prompted.  The   second  prompt  for                                                                    
voluntary  contributions  was  Pick Click  Give.  The  third                                                                    
prompt would ask  if the applicant wanted  to support public                                                                    
education  by participating  in a  raffle with  a chance  to                                                                    
win.                                                                                                                            
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair MacKinnon announced there  was an amended committee                                                                    
substitute  before the  committee. She  invited comments  on                                                                    
the  bill.  She read  the  title  of  the bill  and  invited                                                                    
Senator  Bishop  to  leave the  committee  with  some  final                                                                    
comments on the bill.                                                                                                           
                                                                                                                                
Vice-Chair  Bishop spoke  to  the bill  as  the sponsor.  He                                                                    
thought people in the state  prioritized education, which he                                                                    
had observed through emails, phone  calls, and text messages                                                                    
during the budget  process. He thought the  bill was another                                                                    
tool by  which state residents could  voluntarily contribute                                                                    
towards education. He believed  the concept would be popular                                                                    
with Alaskans. He thanked the body for hearing the bill.                                                                        
                                                                                                                                
Senator  Hughes thanked  the sponsor  for bringing  the bill                                                                    
forward and for  his responsiveness to the  comments made in                                                                    
the the Senate Education Committee  pertaining to the use of                                                                    
the  word  "raffle"  rather than  the  word  "lottery."  She                                                                    
thought clarification  was needed because the  word "raffle"                                                                    
involved a  defined group  of people  and a  defined limited                                                                    
amount of time.  She thought it was no  different from going                                                                    
to a  local chamber  meeting and  participating in  a bucket                                                                    
raffle. It  would be  for a  limited group  of people  for a                                                                    
limited time.  She thought it  was important  to distinguish                                                                    
"raffle"  from "lottery".  She was  thankful  that the  bill                                                                    
sponsor was willing to make a language adjustment.                                                                              
                                                                                                                                
Vice-Chair  Bishop  appreciated his  colleague's  suggestion                                                                    
about having a ranking  order of voluntary contributions. He                                                                    
reiterated  the  order  of options.  He  looked  forward  to                                                                    
seeing how the bill functioned.                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon directed  attention  to  fiscal note  2,                                                                    
dated March 31,  2017. The fiscal note reflected  a cost for                                                                    
software upkeep.                                                                                                                
                                                                                                                                
9:13:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:14:44 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon asked  for  committee  support to  amend                                                                    
fiscal  note   2  from  the   Department  of   Revenue,  OMB                                                                    
component 121.  She wanted  to amend  the funding  source to                                                                    
1005 Program Receipts. She explained  there was a percentage                                                                    
charge for  the administration  of the program.  The funding                                                                    
source would  no longer be  undesignated general  funds. She                                                                    
asked  if  she had  member  support  to change  the  funding                                                                    
source  to 1005  Program Receipts.  There was  no objection.                                                                    
The amendment to fiscal note 2 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair MacKinnon  continued to discuss fiscal  note 2. The                                                                    
projection  for services  was  $4,400 in  FY  19, $8,800  in                                                                    
FY 20,  $13,100 in  FY 21,  $17,500  FY 22,  and $21,900  in                                                                    
FY 23. Whether the  costs would be realized  depended on the                                                                    
activity of the people of Alaska.                                                                                               
                                                                                                                                
Vice-Chair  Bishop  MOVED  to report  CSSB  78(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 78(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and  with and with  a new fiscal  impact note                                                                    
by  the  Senate  Finance  Committee for  the  Department  of                                                                    
Revenue;  one previously  published  zero  fiscal note:  FN1                                                                    
(LAW); and one previously  published fiscal impact note: FN3                                                                    
(REV).                                                                                                                          
                                                                                                                                
9:16:36 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:18:52 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 137                                                                                                            
                                                                                                                                
     "An Act  redesignating the Alaska State  Council on the                                                                    
     Arts   as  a   public   corporation  and   governmental                                                                    
     instrumentality of  the state; defining the  powers and                                                                    
     duties  of  the  Alaska  State  Council  on  the  Arts;                                                                    
     providing  exemptions  from  certain statutes  for  the                                                                    
     Alaska  State Council  on the  Arts; making  conforming                                                                    
     amendments; and providing for an effective date."                                                                          
                                                                                                                                
9:18:59 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon read  the  bill title  for  HB 137  (see                                                                    
above). She recalled that the  committee heard the companion                                                                    
bill,  SB  66, on  March  24,  2018.  She invited  the  bill                                                                    
sponsor to the table.                                                                                                           
                                                                                                                                
REPRESENTATIVE HARRIET  DRUMMOND, SPONSOR, informed  that HB
137  was sponsored  by the  House  Education Committee.  The                                                                    
committee  had  unanimously   consented  to  sponsoring  the                                                                    
legislation  as  a  committee  bill.  It  passed  the  House                                                                    
unanimously. She read a portion of the sponsor statement:                                                                       
                                                                                                                                
     House  Bill  137   quasi-privatizes  the  Alaska  State                                                                    
     Council on  the Arts  (ASCA) by  restructuring it  as a                                                                    
     public  corporation  in  order  to  help  the  ASCA  to                                                                    
     continue  its work  with self-employed  Alaskan artists                                                                    
     and  art  businesses  during these  challenging  fiscal                                                                    
     times. This new status will  allow the ASCA to increase                                                                    
     its  ability to  leverage  funds from  non-governmental                                                                    
     contributors and better adapt  to the shifting economic                                                                    
     climate.                                                                                                                   
                                                                                                                                
Representative Drummond  understood that the  Senate Finance                                                                    
Committee had already  heard the Senate version  of the bill                                                                    
and  would not  go into  detail  about the  bill unless  the                                                                    
chair directed her to.                                                                                                          
                                                                                                                                
Senator von  Imhof asked  if there was  a difference  in the                                                                    
two bills.                                                                                                                      
                                                                                                                                
KRISTEN KRANENDONK, STAFF,  REPRESENTATIVE HARRIET DRUMMOND,                                                                    
stated that  the version before  the committee was  the same                                                                    
as the  Senate version.  However, she thought  the committee                                                                    
had an amendment to offer.                                                                                                      
                                                                                                                                
Senator  Olson noted  Representative  Drummond's mention  of                                                                    
quasi-privatization.  He  asked if  she  had  looked at  any                                                                    
other places to receive funds  aside from the private sector                                                                    
allowed by the bill.                                                                                                            
                                                                                                                                
Representative  Drummond deferred  to  the  Chairman of  the                                                                    
State Council on the Arts.                                                                                                      
                                                                                                                                
9:22:00 AM                                                                                                                    
                                                                                                                                
BENJAMIN  BROWN, CHAIR,  STATE COUNCIL  ON THE  ARTS, stated                                                                    
that  there were  earned  income  opportunities and  program                                                                    
receipts such  as the license  plate program that  passed in                                                                    
the  prior  year. There  would  be  a two-round  competitive                                                                    
process to select a license  plate to celebrate the arts. He                                                                    
opined the project would generate  funds. He had also talked                                                                    
with  other  legislators,  including Senator  Hughes,  about                                                                    
other  ways  of looking  for  earned  income. He  noted  the                                                                    
possibility of using  the temporary art bank  to provide art                                                                    
to  non-governmental offices  for compensation.  In addition                                                                    
to  asking  for foundation  funds,  the  council saw  earned                                                                    
income as a possibility going forward.                                                                                          
                                                                                                                                
Senator Olson asked  if Mr. Brown could  discuss whether the                                                                    
loan   program  was   something  the   council  planned   on                                                                    
participating in.                                                                                                               
                                                                                                                                
Mr. Brown did not know of  any other state that had a public                                                                    
art bank  that used it as  a service to the  private sector.                                                                    
However, it was certainly  something the council was willing                                                                    
to  look at.  He thought  the problem  was that  the private                                                                    
sector was  not seeking  to expend  funds on  decorating its                                                                    
buildings  in the  current  economic  climate. He  suggested                                                                    
that it  was possible in  the future.  He was hoping  to use                                                                    
the  resources  from the  National  Assembly  of State  Arts                                                                    
Agency to  see if  there was an  example from  another state                                                                    
Alaska could replicate.                                                                                                         
                                                                                                                                
Senator Olson asked about the  program receipts and asked if                                                                    
the council  was competing with  any other entities  for the                                                                    
program receipts.                                                                                                               
                                                                                                                                
Mr.  Brown   indicated  that  his   late  father   had  been                                                                    
instrumental in  founding the Children's  Trust. He  and his                                                                    
spouse had Children's Trust license  plates on both of their                                                                    
cars.  He  would have  to  get  art  plates once  they  were                                                                    
available, which  he jokingly said  would be a  conflict. He                                                                    
relayed  that private  galleries did  not rent  art, rather,                                                                    
they  sold   it.  He  did   not  see  any   possible  unfair                                                                    
competition.                                                                                                                    
                                                                                                                                
Senator Olson suggested Mr. Brown get a second car.                                                                             
                                                                                                                                
Mr. Brown replied, "Maybe a third car."                                                                                         
                                                                                                                                
Co-Chair MacKinnon reminded members  and testifiers to relay                                                                    
their remarks  through the  chair. She  asked Representative                                                                    
Drummond  if she  had a  statement on  whether the  trustees                                                                    
should be  confirmed. Alaska  had several  corporations with                                                                    
trustees confirmed by the legislature  in state statute. She                                                                    
used the examples of  Alaska Gasline Development Corporation                                                                    
(AGDC) and  the Alaska  Housing Finance  Corporation (AHFC).                                                                    
Additionally,  Alaska had  some corporations  whose trustees                                                                    
were  not  confirmed  such  as  the  Alaska  Permanent  Fund                                                                    
Corporation.                                                                                                                    
                                                                                                                                
Representative  Drummond  did not  have  an  opinion on  the                                                                    
matter. She  thought there  were 11  members on  the council                                                                    
each having  an area of  expertise defined in the  bill. The                                                                    
idea was  for the  council to  best serve  the needs  of the                                                                    
organization. Skills in the area  of art were unique to that                                                                    
business.                                                                                                                       
                                                                                                                                
Co-Chair  MacKinnon asked  if Mr.  Brown had  an opinion  on                                                                    
whether the council members should be confirmed.                                                                                
                                                                                                                                
Mr. Brown  relayed that the council  had researched examples                                                                    
from other  states and  jurisdictions. Some  council members                                                                    
were appointed  by legislative bodies.  In other  states the                                                                    
governor  appointed  members  who   were  confirmed  by  the                                                                    
legislature.  The  council  concluded  that  the  number  of                                                                    
council members  and the  way in  which they  were appointed                                                                    
worked well  for Alaska and did  not need to be  changed. He                                                                    
thanked Co-Chair MacKinnon for  the example of the Permanent                                                                    
Fund Board of Trustees.                                                                                                         
                                                                                                                                
Co-Chair MacKinnon  asked the  committee if  it was  of like                                                                    
mind that  there did not  need to  be a confirmation  at the                                                                    
legislative level for the new corporation.                                                                                      
                                                                                                                                
9:27:06 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  relayed that  public testimony  had been                                                                    
heard previously.                                                                                                               
                                                                                                                                
Co-Chair  MacKinnon MOVED  to ADOPT  Amendment  1 ((copy  on                                                                    
file):                                                                                                                          
                                                                                                                                
     Page 10, lines 16-17                                                                                                       
                                                                                                                                
          Delete "an Alaska veterans' preference that is                                                                        
          consistent with the Alaska veterans' preference                                                                       
          in AS 36.30.321(f)"                                                                                                   
                                                                                                                                
          Insert "the preferences of an Alaska bidder and                                                                       
          an Alaska veteran that are consistent with the                                                                        
          preferences in AS 36.30.32 1"                                                                                         
                                                                                                                                
Vice-Chair Bishop OJBJETED for discussion.                                                                                      
                                                                                                                                
Co-Chair MacKinnon explained that  there was a preference in                                                                    
the previous  version of the  bill. The amendment  would add                                                                    
the  Alaska  bidder preference.  She  thought  if there  was                                                                    
going to be a preference the others should be included.                                                                         
                                                                                                                                
9:27:47 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:09 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   MacKinnon  confirmed   that  the   Alaska  bidder                                                                    
preference   was   combined   with  the   Alaska   Veteran's                                                                    
preference  consistent with  AS 36.30.321.  She wanted  both                                                                    
preferences  listed  to  ensure  that  local  artists  could                                                                    
compete with  national and international artists.  She would                                                                    
provide the definition of  "Alaska bidder preference" before                                                                    
the bill went to the Senate floor for a vote.                                                                                   
                                                                                                                                
Vice-Chair  Bishop WITHDREW  his OJBECTION.  There being  NO                                                                    
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
Vice-Chair  Bishop discussed  the  fiscal  note. The  fiscal                                                                    
note by  the Department  of Education and  Early Development                                                                    
with  an  appropriation of  commissions  and  boards and  an                                                                    
allocation of  the Alaska State  Council on the Arts  had an                                                                    
OMB  component number  of  192. It  was  essentially a  zero                                                                    
fiscal  note.  The fiscal  note  removed  all state  funding                                                                    
within the state council. The  funding was being transferred                                                                    
to the  new state  council appropriation. The  second fiscal                                                                    
note,  currently without  an OMB  component  number, had  an                                                                    
appropriation and allocation of  Alaska State Council on the                                                                    
Arts.  The annual  cost was  $2,768.5 million.  The analysis                                                                    
indicated that the positive impact  of cost reductions could                                                                    
not   be   determined   until   the   agency   restructured.                                                                    
Efficiencies that were anticipated  in operating costs could                                                                    
not be quantified at present.                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon  commented  that  the  council  received                                                                    
funds and leveraged  other funds from out of  state from the                                                                    
National Arts Endowment.                                                                                                        
                                                                                                                                
9:34:10 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:34:22 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon conveyed  the  definition  of an  Alaska                                                                    
bidder in at AS 36.30.990:                                                                                                      
                                                                                                                                
      (2) "Alaska bidder" means a person who                                                                                    
        (A) holds a current Alaska business license;                                                                            
                                                                                                                                
        (B) submits  a bid or proposal  for goods, services,                                                                    
     or  construction  under  the   name  appearing  on  the                                                                    
     person's current Alaska business license;                                                                                  
                                                                                                                                
        (C) has maintained a place  of business in the state                                                                    
     staffed by the bidder or  offeror or an employee of the                                                                    
     bidder  or   offeror  for  a   period  of   six  months                                                                    
     immediately preceding the date of the bid or proposal;                                                                     
                                                                                                                                
        (D)  is incorporated  or  qualified  to do  business                                                                    
     under the laws  of the state, is  a sole proprietorship                                                                    
     and the  proprietor is  a resident of  the state,  is a                                                                    
     limited liability company organized  under AS 10.50 and                                                                    
     all  members  are  residents  of the  state,  or  is  a                                                                    
     partnership  under former  AS  32.05, AS  32.06, or  AS                                                                    
     32.11 and all partners are residents of the state; and                                                                     
                                                                                                                                
        (E)  if a  joint  venture, is  composed entirely  of                                                                    
     ventures  that   qualify  under  (A)      (D)  of  this                                                                    
     paragraph.                                                                                                                 
                                                                                                                                
Senator  Olson  asked  Co-Chair   MacKinnon  to  repeat  the                                                                    
statute reference.  Co-Chair MacKinnon repeated  the statute                                                                    
reference.                                                                                                                      
                                                                                                                                
Vice-Chair Bishop MOVED to report SCS HB 137(FIN) out of                                                                        
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
SCS HB 137 was REPORTED out of committee with a "do pass"                                                                       
recommendation and with two previously published fiscal                                                                         
impact notes: FN2 (EED) and FN3 (EED).                                                                                          
                                                                                                                                
9:36:13 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:38:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon discussed the schedule for the afternoon                                                                     
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:38:35 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:38 a.m.                                                                                          

Document Name Date/Time Subjects
SB 78 Amendment 1 Bishop.pdf SFIN 4/13/2017 9:00:00 AM
SB 78
HB 137 Amendment 1 MacKinnon.pdf SFIN 4/13/2017 9:00:00 AM
HB 137