Legislature(2011 - 2012)SENATE FINANCE 532
04/15/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB121 | |
| HB279 | |
| HB359 | |
| HB361 | |
| HB264 | |
| HB89 | |
| HB125 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 359 | TELECONFERENCED | |
| + | HB 361 | TELECONFERENCED | |
| + | HB 264 | TELECONFERENCED | |
| + | HB 89 | TELECONFERENCED | |
| + | HB 125 | TELECONFERENCED | |
| += | HB 121 | TELECONFERENCED | |
| += | HB 279 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 15, 2012
9:09 a.m.
9:09:24 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:09 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Darwin Peterson, Staff, Senator Bert Stedman; Curtis
Thayer, Deputy Commissioner, Department of Commerce,
Community and Economic Development; Juli Lucky, Staff,
Representative Mike Hawker; Annie Carpeneti, Department of
Law; Senator Dennis Egan; Ed Fogels, Deputy Commissioner,
Department of Natural Resources; Christopher Clark, Staff,
Representative Cathy Munoz; Randy Hoffbeck, Chief of Staff,
North Slope Borough; Representative Paul Seaton; Matt
Felix, Alaska Addiction Professional Association; Jan
Wrentmore; Bob Coghill, Self; Elaine Vroman, Meeting the
Challenge, Anchorage.
PRESENT VIA TELECONFERENCE
Ellen Ganley, Public Member, ABC Board, Fairbanks; Kate
Burkhart, Executive Director, Advisory Board on Alcoholism
and Drug Abuse; Chrystal Schoenrock, Self, Nikiski; Jeff
Jessee, Chief Executive Officer, Alaska Mental Health Trust
Authority, Anchorage; Johanna Bales, Deputy Director, Tax
Division, Department of Revenue.
SUMMARY
CSHB 89(RES)
EXTRACTION OF BEDLOAD MATERIAL
CSHB 89(RES) was REPORTED out of committee with a
"do pass" recommendation and with a new
indeterminate fiscal note from the Department of
Transportation and Public Facilities and new
indeterminate fiscal note from Department of
Natural Resources.
CSHB 121(RLS)
LOAN FUNDS:CHARTERS/MARICULTURE/MICROLOAN
SCS CSHB 121(FIN) was REPORTED out of committee
with a "do pass" recommendation and with four new
fiscal impact notes by the Senate Finance
Committee for the Department of Commerce,
Community and Economic Development.
CSHB 125(L&C)(efd am)
ALCOHOLIC BEVERAGE CONTROL BOARD
SCS CSHB 125(FIN) was REPORTED out of committee
with a "do pass" recommendation and with a
previously published zero fiscal note: FN4(DCCED)
and a previously published fiscal impact note:
FN5(DCCED).
CSHB 264(CRA)
MUNI PROPERTY TAX DEFERRAL: SUBDIVISIONS
SCS CSHB 264(FIN) was REPORTED out of committee
with a "do pass" recommendation and with a
previously published zero fiscal note:
FN2(DCCED), and a new zero fiscal note by the
Senate Finance Committee for the Department of
Revenue.
CSHB 279(FIN)
EXTENDING CERTAIN BOARDS & COMMISSIONS
SCS CSHB 279 was REPORTED out of committee with a
"do pass" recommendation and with previously
published fiscal impact notes: FN4(DCCED),
FN5(DCCED), FN6(DCCED), FN7(DCCED), FN8(DNR), and
FN9(DPS).
CSHB 359(FIN)am
SEX CRIMES; TESTIMONY BY VIDEO CONFERENCE
CSHB 359(FIN)am was REPORTED out of committee
with a "do pass" recommendation and with
previously published indeterminate fiscal notes:
FN8(COURT) and FN14(DOC), and previously
published zero fiscal notes: FN9(DOA), FN10(DOA),
FN11(DOL), FN12(DPS), FN13(DPS).
CSHB 361(FIN)am
DISPOSALS OF STATE RESOURCES/ROYALTIES
SCS CSHB 361(FIN) was REPORTED out of committee
with a "do pass" recommendation and with a new
zero fiscal note from the Department of Natural
Resources, and previously published zero fiscal
notes: FN1(DFG) and FN2(DOT).
CS FOR HOUSE BILL NO. 121(RLS)
"An Act establishing the commercial charter fisheries
revolving loan fund, the mariculture revolving loan
fund, and the Alaska microloan revolving loan fund and
relating to those funds and loans from those funds;
and providing for an effective date."
9:10:52 AM
Senator Thomas MOVED to ADOPT the proposed committee
substitute for CSHB 121(RLS), Work Draft 27-GH1728\S
(Bullard, 4/14/12).
Co-Chair Stedman OBJECTED for the purpose of discussion.
DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, explained the
changes in the committee substitute. He stated that
Sections 1 to 11 were new sections that would establish the
Community Quota Entity revolving loan fund, and was based
on language from SB 204. He stated that the intent of the
program was to assist small coastal communities throughout
Southeast Alaska and the Gulf of Alaska to form non-profit
community entities that may be eligible for up to a $1
million loan from the State to purchase up to 50,000 pounds
of fishing quota that would be held in trust for community
residents. Currently there were 45 coastal communities that
could qualify, because they meet the requirements of being
off the road system with a population of 1500 or less and a
history of fishing. After consulting with the Alaska
Bankers Associations, side-bars were placed on the program
to satisfy some of their concerns. On page 3, line 14 the
interest deferment was reduced from 10 years to 2 years. On
page 3, line 15 the language expressly prohibited the
Community Quota Entity from refinancing their loan through
the State. The language was also adjusted to make the
Community Quota Entity a pilot program, that would sunset
in five years. The fiscal note appropriated $10 million,
which was enough for ten communities. In five years, the
legislature could revisit the program. If the program had
proven to be successful, the legislature could decide if
the program should continue. In addition, the committee
substitute placed an interest rate floor on loans offered
through the Commercial Fishing Loan Fund. The floor would
be the prime rate plus one percentage point, plus an
additional percentage point determined by the Department to
represent risk. This would promote interest rates offered
through the State's loan program that were more closely
based on market forces and would discourage the State from
offering artificially low subsidized rates that would
compete with the private sector.
Mr. Peterson stated that Section 12 set up the Commercial
Charter Fisheries Revolving Loan Fund. He stated that the
committee substitute removed the sub-sections referring to
vessels, so loans could only be used for purchase permits.
Loans for fishing vessels could be accessed through
conventional lenders. He stated that page 7, lines 13 to 15
limited the loan amount for a charter halibut permit to a
value determined by the Department, based on a 12-month
rolling average set quarterly, not to exceed $100,000. He
explained that the average price for halibut permits ranged
from $29,000 to $61,000.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
FURTHER OBJECTION, Work Draft 27-GH1728\S was ADOPTED.
9:15:32 AM
Co-Chair Stedman explained that there was current work
regarding HB 121, and wondered if Mr. Curtis had any
remarks for the committee.
CURTIS THAYER, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, explained the different
fishing revolving loan funds. He remarked that with this
particular loan, there was delayed payment for up to seven
years.
Co-Chair Stedman discussed the fiscal notes in the members'
packets.
Co-Chair Hoffman MOVED to report SCS CSHB 121(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 121(FIN) was REPORTED out of committee with a "do
pass" recommendation and with four new fiscal impact notes
from the Senate Finance Committee for the Department of
Commerce, Community and Economic Development.
CS FOR HOUSE BILL NO. 279(FIN)
"An Act extending the termination dates of the Board
of Nursing, the Board of Dental Examiners, the Board
of Barbers and Hairdressers, the Big Game Commercial
Services Board, the Alcoholic Beverage Control Board,
and the Alaska Seismic Hazards Safety Commission; and
providing for an effective date."
9:19:02 AM
Co-Chair Stedman discussed the six fiscal notes in the
members' packets.
JULI LUCKY, STAFF, REPRESENTATIVE MIKE HAWKER,
expressed that the bill sponsor addressed their concerns at
a previous meeting. She stated that the bill sponsor
preferred to keep the board extensions clean from the
policy calls, but did not comment what specific policy call
the committee would be making.
Co-Chair Hoffman MOVED to report SCS CSHB 279 out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 279 was REPORTED out of committee with a "do pass"
recommendation and with previously published fiscal impact
notes: FN4(DCCED), FN5(DCCED), FN6(DCCED), FN7(DCCED),
FN8(DNR), and FN9(DPS).
CS FOR HOUSE BILL NO. 359(FIN) am
"An Act relating to conspiracy to commit human
trafficking in the first degree or sex trafficking in
the first degree; relating to the crime of
distribution of indecent material to minors, the crime
of online enticement of a minor, the crime of
prostitution, and the crime of sex trafficking;
relating to forfeiture of property used in
prostitution offenses; relating to testimony by video
conference; adding Rule 38.3, Alaska Rules of Criminal
Procedure; and providing for an effective date."
9:21:21 AM
ANNIE CARPENETI, DEPARTMENT OF LAW, stated that the bill
addressed sex trafficking. More than half the bill
addressed a change in the title of a crime from "promoting
prostitution in the first, second, third, and fourth
degrees" to "sex trafficking" in those degrees. The reasons
for the change in title were: 1) Communication. Law
enforcement, almost uniformly, describes this conduct as
sex trafficking, rather than "promoting prostitution." This
communication has led to some misunderstandings over the
last several years. 2) It is considered to be more
respectful to victims of these crimes to be considered
victims of sex trafficking, rather than people who are
being promoted as prostitutes. The pages of the bill are
conforming, throughout the statutes, to the name change.
The bill also adds two crimes to the state's conspiracy
law: 1) Human trafficking in the first degree, which is a
class-A felony; and 2) Sex trafficking in the first degree,
which is either a class-A felony, if you are trafficking an
adult; or an unclassified felony, if you are trafficking a
child. The bill raised the penalty for being a patron of a
prostitute who is under 18 years of age, from a class-B
misdemeanor to a class-C felony, if the patron is over 18-
years-old and is at least three years older than the
victim. The bill also addressed the crime of distribution
of indecent material to minors. The bill tightened the
elements of the crime to require the State, in prosecuting
the person for this offence, to prove that the person
intentionally distributed the material or possessed it with
intent to distribute. The bill did not make any changes in
the elements of the offenses, with one exception: the House
Finance Committee changed the age of the victim from under
18 years of age to less than 20 years of age, for that
crime to be considered an unclassified felony. The rational
for that change was that 18 to 19 year old people may be
considered adults in some ways, but were still vulnerable
to victimization by older people.
Co-Chair Stedman discussed the fiscal notes in the members'
packets.
Co-Chair Hoffman MOVED to report CSHB 359(FIN)am out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 359(FIN)am was REPORTED out of committee with a "do
pass" recommendation and with previously published
indeterminate fiscal notes: FN8(COURT) and FN14(DOC), and
previously published zero fiscal notes: FN9(DOA),
FN10(DOA), FN11(DOL), FN12(DPS), FN13(DPS).
CS FOR HOUSE BILL NO. 361(FIN) am
"An Act relating to the Alaska Land Act, including
certain leases, sales, and other disposals of state
land and materials; relating to production royalties
from miners; and providing for an effective date."
9:26:02 AM
Co-Chair Hoffman MOVED to ADOPT the proposed committee
substitute for CSHB 361(FIN)am, Work Draft 27-GH2717\E
(Bailey, 4/15/12).
Co-Chair Stedman OBJECTED for the purpose of discussion.
Senator Egan explained the changes in the new committee
substitute. The bill had an added phrase in the title that
adds Section 26: conveying a partial of land. The end of
Section 7, page 4, line 1 matched a change that the
Resource Committee made to the Senate version, requiring
public notice of renewal decisions for state land leases.
The last change was on page 17, which added a parcel of
land to the City and Borough of Juneau. He remarked that he
had worked for over two years regarding land transfer
issues.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
FURTHER OBJECTION, Work Draft 27-GH2717\E was ADOPTED.
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, stated that the bill was a result of the
legislature and governor's request for the Department of
Natural Resources (DNR) to examine the permitting systems,
to reduce the backlog, and to reduce the time and cost for
applicants. A bottom-up review of the statutes had been
conducted over the year prior, and this bill was the first
batch in improving the permitting process. He felt that the
changes would enable DNR to process applications more
quickly, and reduce time and cost for the applicant. The
bill would improve the land leasing process by giving DNR
more flexibility in issuing negotiated leases instead of
competitive leases. The bill would allow DNR more
flexibility in renewing leases. He stressed that the bill
was only for land leases, not oil and gas leases. The bill
would make the material sale process more efficient, and
allow the State to sell materials at below market value for
public purposes. The bill would allow DNR to use sealed-bid
and public outcry auctions for increased efficiency. The
bill would modernize the public notice requirements by
emphasizing online public noticing. The bill would reduce
paperwork by allowing a miner to choose either fiscal or
calendar years to match their tax filings. The bill would
allow DNR to renew off-shore mining leases for up to 20
years.
Co-Chair Stedman discussed the fiscal notes in members' the
packets.
Co-Chair Hoffman MOVED to report SCS CSHB 361(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 361(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new zero fiscal note from
the Department of Natural Resources, and previously
published zero fiscal notes: FN1(DFG) and FN2(DOT).
CS FOR HOUSE BILL NO. 264(CRA)
"An Act allowing a deferral of municipal property
taxes on the increase in the value of real property
attributable to subdivision of that property; and
providing for an effective date."
9:31:14 AM
Co-Chair Hoffman MOVED to ADOPT the proposed committee
substitute for CSHB 264(CRA), Work Draft 27-LS1090\X
(Bullard, 4/14/12).
Mr. Peterson stated that Sections 1 to 3 of the committee
substitute would exclude the value of the lease-hold
interest on the properties for the purpose of determining
the full and true value by the state, only if local
government chooses to exempt that property from taxation.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
FURTHER OBJECTION, Work Draft 27-LS1090\X was ADOPTED.
9:32:19 AM
AT EASE
9:33:22 AM
RECONVENED
CHRISTOPHER CLARK, STAFF, REPRESENTATIVE CATHY MUNOZ,
looked at Sections 1 and 4, and stated that the property
deferral was an option allowed to municipalities.
Municipalities could defer any tax increase associated with
subdivided property. The intent was to encourage housing
development. You could defer the tax increase for up to
five years, and the deferral would end as soon as a lot was
sold or a new home or commercial building was built on the
lot. He stated that Sections 5 and 6 related to the
municipal tax cap.
9:35:15 AM
Co-Chair Stedman discussed the fiscal notes in the members'
packets.
JOHANNA BALES, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT OF
REVENUE (via teleconference), testified the DOR and the
governor were against Sections 5 and 6 of the bill. Those
Sections removed the municipal tax cap on petroleum
property and other property within municipality's
jurisdiction.
RANDY HOFFBECK, CHIEF OF STAFF, NORTH SLOPE BOROUGH, spoke
to Sections 5 and 6 of the bill. He stated that the tax cap
did not limit the total amount of money in tax that could
be collected by a municipality, but parse it into two
sections: operation and debt. The provision would remove
the 225 percent cap, and allow the municipalities more
flexibility to use the money in the most efficient manner
possible. Currently, in order to collect a portion of the
debt, the North Slope Borough had to cycle money through a
bond market by selling general obligation debt.
Senator Olson pointed out that he had a letter from the
mayor of Juneau that expressed support of the legislation.
Senator Olson MOVED to report SCS CSHB 264(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 264(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a previously published zero
fiscal note: FN2(DCCED), and a new zero fiscal note by the
Senate Finance Committee for the Department of Revenue.
CS FOR HOUSE BILL NO. 89(RES)
"An Act relating to the disposal of certain bed load
material in conjunction with a flood mitigation plan."
9:43:35 AM
REPRESENTATIVE PAUL SEATON, stated that HB 89 addressed
flooding, and numerous emergency declarations that occur
almost annually. Much of the flooding occurred because
gravel builds up in riverbeds, and then the flooding
damaged commercial or private property. The bill would
allow DNR to consider the mitigation of those disasters as
part of the fair market value. Currently, DNR had to get
the fair market value of the sand and gravel that was
removed under-navigable rivers. The problem was that there
was an up-front fee of up to $5 a yard, which was
uneconomical for removal. The bill would allow DNR to take
a net profit of a minimum of 12.5 percent of the extracted
value, instead of a gross value at extraction. It would
allow operators to remove the gravel and save the State
money at the same time.
Co-Chair Stedman discussed the fiscal note in the packet.
Co-Chair Hoffman MOVED to report CSHB 89(RES) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
Co-Chair Stedman discussed the fiscal note in the packet.
CSHB 89(RES) was REPORTED out of committee with a "do pass"
recommendation and with a new indeterminate fiscal note
from the Department of Transportation and Public Facilities
and new indeterminate fiscal note from Department of
Natural Resources.
CS FOR HOUSE BILL NO. 125(L&C)(efd am)
"An Act moving the Alcoholic Beverage Control Board to
the Department of Commerce, Community, and Economic
Development and relating to duties of that department;
relating to the exercise of peace officer powers
granted by the Alcoholic Beverage Control Board; and
providing for an effective date."
9:46:46 AM
JULI LUCKY, STAFF, REPRESENTATIVE MIKE HAWKER, stated that
the legislation would move the Alcoholic Beverage Control
Board (ABC) from DOT/PF to DCCED. She stated that the ABC
Board took on the character of an umbrella agency. The ABC
Board felt that they were treated more toward enforcement,
rather than a collaborative relationship to ensure
compliance with a licensure. The goal was to balance the
rigorous enforcement of the statutes with a collaborative
effort to achieve licensure compliance, and there would be
no change to the enforcement process.
Co-Chair Hoffman MOVED to ADOPT Amendment for HB 125,
B.A.1.
Co-Chair Stedman OBJECTED for the purpose of discussion.
Ms. Lucky explained that there was an amendment from the
House of Representatives, regarding whether or not the ABC
Board or its employees could ask private club's members to
provide a key card. The amendment that was adopted was that
the ABC Board could not require a private club member to
hold an access device. The way that the amendment was
written seemed to prohibit keys to get into a door, so the
proposed amendment was more of a technical amendment to
ensure the previously adopted amendment work the way it was
intended.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
FURTHER OBJECTION, Amendment B.A.1 was ADOPTED.
Co-Chair Stedman discussed the fiscal notes in the members'
packets.
9:50:00 AM
MATT FELIX, ALASKA ADDICTION PROFESSIONAL ASSOCIATION,
testified against the legislation and stated that the ABC
Board was recently moved to the DPS at a request from
former Representative Lisa Murkowski. He felt that there
needed to be decent enforcement of alcohol, and stated that
the move would "dumb down" the ABC Board.
9:51:38 AM
JAN WRENTMORE, OWNER, RED ONION SALOON, testified in
support of the bill.
9:52:02 AM
BOB COGHILL, SELF, testified against the bill and shared
that the ABC board would be more effective working within
DPS.
9:53:12 AM
ELLEN GANLEY, PUBLIC MEMBER, ABC BOARD, FAIRBANKS (via
teleconference), testified against the bill and stated that
the role of the ABC Board was enforcement.
9:53:51 AM
KATE BURKHART, EXECUTIVE DIRECTOR, ADVISORY BOARD ON
ALCOHOLISM AND DRUG ABUSE (via teleconference), expressed
the board's strong opposition to legislation and related
that the bill was bad policy.
9:54:36 AM
CHRYSTAL SCHOENROCK, SELF, NIKISKI (via teleconference),
testified in support the bill and felt that the DCCED was
better equipped to deal with licensing issues.
9:55:27 AM
JEFF JESSEE, CHIEF EXECUTIVE OFFICER, ALASKA MENTAL HEALTH
TRUST AUTHORITY, ANCHORAGE (via teleconference), expressed
strong opposition to the bill. He related that the ABC
Board should be housed in the DPS.
9:57:21 AM
ELAINE VROMAN, MEETING THE CHALLENGE, ANCHORAGE, testified
in opposition to the bill.
Senator Ellis expressed that he would have preferred a more
robust committee effort on the bill, and more public
hearing of the pros and cons of the bill.
Co-Chair Hoffman MOVED to report SCS CSHB 125(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 125(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a previously published zero
fiscal note: FN4(DCCED) and a previously published fiscal
impact note: FN5(DCCED).
9:58:49 AM
AT EASE
11:51:11 PM
ADJOURNMENT
The meeting was adjourned at 11:52 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 121 Backup Documents 041512.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 121 |
| HB 121 version S.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 121 |
| HB 264 version X.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 264 |
| HB 361 version E.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 361 |
| HB 279 version E.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 279 |
| HB 125 Amendment 1 Stedman 041512.pdf |
SFIN 4/15/2012 9:00:00 AM |
HB 125 |