Legislature(2015 - 2016)
04/08/2016 03:42 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB101 | |
| SB196 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
April 8, 2016
3:42 p.m.
3:42:13 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 3:42 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Mike Smith, Staff, Senator Click Bishop; Tim Grussendorf,
Staff, Senator Lyman Hoffman.
PRESENT VIA TELECONFERENCE
Ben Ellis, Director, Alaska State Parks, Anchorage.
SUMMARY
SB 101 STATE PARKS FEES & SALES OF MERCHANDISE
SB 101 was HEARD and HELD in committee for
further consideration.
SB 196 POWER COST EQ FUND: RESERVE ACCT; DIVIDEND
SB 196 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 101
"An Act relating to fees for use of state park system
facilities; and relating to the sale of merchandise by
the Department of Natural Resources."
3:43:59 PM
Senator Bishop MOVED to ADOPT Amendment 1, 29-GS1040\H.1,
Bullard, 3/24/16 (copy on file):
Page 1, line 1, following "to":
Insert "merchandise sold and' Page 1, following
line 3, insert a new bill section to read: "i
Section 1. AS 37.05.146(b)(56) is amended to
read: (56) fees and other char2es received by the
Department of Natural Resources under AS 4121.026
[FOR THE USE OF STATE PARK SYSTEM FACILITIES];"
Page 1, line 4:
Delete "Section 1"
Insert "Sec. 2"
Renumber the following bill section accordingly.
Page 2, lines 3 -10:
Delete all material and insert:
"(10) [SALE OF MERCHANDISE FOR INFORMATIONAL OR
EDUCATIONAL PURPOSES RELATED TO PUBLIC USE and
UNDERSTANDING OF PARKS, INCLUDING MAPS, PLANS,
AND OTHER GRAPHIC MATERIALS;
(11)] use of a developed facility that has
developed parking [(12)] presentation or
attendance at programs related to natural or
cultural history, outdoor skills or education, or
other topics concerned with public use,
enjoyment, or understanding of parks."
Page 2, following line 10:
Insert new bill sections to read:
"h Sec. 3. AS 37.10.050(a) is amended to read:
(a) A state agency may not charge a fee for the
provision of state services unless the fee (1) is
set or otherwise authorized by statute; and (2)
where a regulation is necessary, is set by or
provided for in a regulation that meets the
standards of AS 44.62.020 and 44.62.030. Unless
specifically exempted by statute, a state agency
authorized to collect or receive fees, licenses,
taxes, or other money belonging to the state
shall account for and remit the receipts, less
fees to which the collector is entitled by
statute or regulation, to the Department of
Revenue at least once each month, The
commissioner of administration shall separately
account under AS 37.05.142 for receipts deposited
under this subsection. A fee or other charge that
is set by regulation may not exceed the estimated
actual costs of the state agency in administering
the activity or providing the service unless
otherwise provided by the statute under which the
regulation is adopted; however, this limitation
does not apply to sale or lease of property by a
state agency, fees charged by a resource agency
for a designated regulatory service as defined in
AS 37.10.058, fees adopted by the Department of
Natural Resources under AS 41.21.026(f) AS
44.37.025, and [OR] 44.3 7.027, or fees, rents,
tolls, and other charges established or levied by
the Department of Transportation and Public
Facilities for the use of the Knik Arm bridge and
appurtenant facilities.
Sec. 4. AS 41.21.026 is amended by adding a new
subsection to read:
(0 In addition to the activities, services, and
products for which the department may charge or
collect a fee under (a) of this section, the
department may sell informational, educational,
or promotional merchandise. The department shall
price merchandise sold under this section in a
manner that ensures a reasonable monetary return
to the state. To the extent practicable, the
department shall sell only merchandise produced
or manufactured in the United States)'
Co-Chair MacKinnon OBJECTED for DISCUSSION.
Senator Bishop explained the amendment. He shared that
there was discussion about inserting language that had been
removed in the Senate Resources Committee, which lessened
the Department of Natural Resources (DNR) dependence on
unrestricted general fund (UGF) dollars. He shared that in
2015, DOR collected 3.5 million in UGF funds. Furthermore,
DOR brought in $3.36 million in program receipts. He
remarked that there was an intention for DNR to sell to
retailers. He stressed that Alaska was a tourism
destination, and Alaska tourism was promoted through
funding from the tourism marketing industry. He stressed
that promoting Alaska as a destination while closing state
parks was detrimental to the tourism industry. He remarked
that the amendment would only allow DNR to sell merchandise
in park offices, ferry terminals, and wholesale to
retailers. The amendment did not authorize DNR to open a
retail store, rather only the ability to offer products
wholesale to retailers. It was not the intent for the state
to compete against any private industry, but rather allow
DNR the opportunity to recoup some of its operational
expenses.
3:46:53 PM
MIKE SMITH, STAFF, SENATOR CLICK BISHOP, detailed the
amendment. He shared that the original bill contained
prohibitions. The original bill stated that DNR could only
merchandise the product inside the park boundaries. The
current bill did not contain that restriction. He shared
that there was an examination of the opportunity for DNR to
raise additional revenues by selling of merchandise, there
were other restrictions. He shared that the state agencies
had a general restriction against selling products for
profit. Generally, the state agencies were supposed to sell
the merchandise to individuals for cost and had little
ability to generate operating revenue. The bill would allow
DNR to charge a reasonable amount of monetary gain, but
would only allow the sale within the confines of the park
services offices, ferry terminals, and for wholesale to
retail entities. He remarked that the conforming changes
were drafted to conform to existing statutes. He stated
that the primary change allowed for DNR to sell merchandise
for profit.
Co-Chair MacKinnon queried comments on the amendment.
3:48:57 PM
BEN ELLIS, DIRECTOR, ALASKA STATE PARKS, ANCHORAGE (via
teleconference), testified in support of the amendment.
Vice-Chair Micciche wondered if there would be a
consideration of an amendment to the amendment.
3:49:37 PM
AT EASE
3:51:44 PM
RECONVENED
3:51:50 PM
Vice-Chair Micciche MOVED to ADOPT conceptual amendment 1
to Amendment 1:
Page 3, line 1, following "United States":
Insert "procurement and branding services, such
as printing screen-printing, must occur through
an Alaska-owned business or correctional
institution whenever competitively possible."
Senator Dunleavy OBJECTED for DISCUSSION.
Co-Chair MacKinnon wondered if there should be an adoption
of the conceptual amendment, and then Legislative Legal
would determine its legality within the legislation.
Senator Dunleavy WITHDREW the OBJECTION. There being NO
OBJECTION, it was so ordered. The amendment to the
conceptual amendment to Amendment 1 was adopted.
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
OBJECTION, Amendment 1, as amended, was adopted.
SB 101 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 196
"An Act relating to the use of certain unexpended
earnings from the power cost equalization endowment
fund."
3:53:30 PM
Vice-Chair Micciche MOVED to ADOPT the committee substitute
for SB 196, Work Draft 29-LS1383\F (Nauman, 4/8/16).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, explained
the committee substitute. He looked at Section 1, line 8,
added the word, "and." He furthered that the second change
added the language, "the earnings of the fund for the
previous year." That language was added so the commissioner
would calculate on the earnings, rather than the monthly
average of the previous three fiscal years. He noted that
the Legislative Finance Division (LFD) and the Legislative
Legal had different language preferences. He shared that
LFD preferred the phrase, "closed fiscal year", so they
could know the exact amount. He looked at Section 2, which
changed "seven" to "five", which was the maximum amount
that could be used for purpose of power cost equalization
(PCE). He stated that the change lined up with the change
to the investment target of 4 percent average over a 5
percent per year period. He stated that LFD preferred the
phrase "up to five" rather than "five." He encouraged the
committee to evaluate that difference in their
consideration of the bill. He stated that Section 3 was a
new section, which stated that if the 5 percent was not
enough to pay for the PCE program, the amount would be
prorated. He remarked that the last section addressed how
the earnings were split for the previous fiscal year, and
whether there was anything above the cost of the program.
He shared that there was previously a dividend going to GF
of 60 percent. He stated that the dividend was changed to
50 percent. The 50 percent would be assigned to community
revenue sharing. He shared that there was an issue with
sending money from the PCE fund to GF was changing DGF to
UGF. The CS changed DGF to DGF, because it was designated
for community revenue sharing. He stressed that the savings
of GF would be the money that the legislature could use
from the program.
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
OBJECTION, the proposed committee substitute was adopted.
Co-Chair MacKinnon noted that the public hearing had
already occurred. She shared that she would like LFD to
analyze the new language in the CS.
SB 196 was HEARD and HELD in committee for further
consideration.
3:58:07 PM
AT EASE
3:58:14 PM
RECONVENED
Co-Chair MacKinnon discussed the schedule.
3:58:29 PM
AT EASE
3:59:28 PM
RECONVENED
Co-Chair MacKinnon stated that there would be no continuing
pursuit of SB 208.
ADJOURNMENT
4:00:12 PM
The meeting was adjourned at 4:00 p.m.
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