Legislature(2015 - 2016)SENATE FINANCE 532
04/12/2016 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB100 | |
| HB77 | |
| HB155 | |
| HB143 | |
| HB41 | |
| HB137 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 100 | TELECONFERENCED | |
| + | HB 77 | TELECONFERENCED | |
| HB 155 | |||
| + | HB 143 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| += | HB 137 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 12, 2016
9:05 a.m.
9:05:16 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:05 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Representative Mike Chenault, Sponsor; Donald Bullock,
House Majority Attorney; Representative Steve Thompson,
Sponsor; Jane Pierson, Staff, Representative Steve
Thompson; Brodie Anderson, Staff, Representative Steve
Thompson; Representative Cathy Munoz, Sponsor; Terry
Harvey, Staff, Representative Cathy Munoz; Erin Shine,
Staff, Senator Anna MacKinnon; Representative Cathy Tilton,
Sponsor; Crystal Koeneman, Staff, Representative Cathy
Munoz; Heath Hilyard, Staff, Representative Cathy Tilton.
PRESENT VIA TELECONFERENCE
Aaron Plikat, Building Trades Council of South Central
Alaska, Anchorage; Rick Koch, City Manager, City of Kenai;
Steve Wendt, Manager, Agrium, Kenai; Art Delaune,
Wallbusters/Access Alaska, Fairbanks; Amy Erickson,
Division of Motor Vehicles, Anchorage; Lt. Chad Goden,
Alaska State Troopers, Sitka; John Springsteen, Executive
Director, Alaska Industrial Development and Export
Authority (AIDEA); Andy Mezirow, Self, Seward; Samantha
Weinstein, Executive Director, Southeast Alaska Guides
Organization, Anchorage; Paul Johnson, Self, Gull Cove;
Dick Rohrer, Self, Kodiak; Tom Brookover, Director,
Division of Sport Fisheries, Department of Fish and Game;
Alpheus Bullard, Attorney, Legislative Legal Services; Mike
Tinker, Alaska Wildlife Conservation Association,
Fairbanks; Dwight Kramer, Kenai Area Fisherman's Coalition,
Kenai.
SUMMARY
HB 41 SPORT FISHING SERVICES
HB 41 was HEARD and HELD in committee for further
consideration.
HB 77 DISABILITY:ID/LICENSE AND TRAINING RQMTS.
HB 77 was HEARD and HELD in committee for further
consideration.
HB 100 UREA/AMMONIA/GAS-LIQ FACILITY; TAX CREDIT
HB 100 was HEARD and HELD in committee for
further consideration.
HB 137 HUNT/FISH/TRAP: FEES;LICENSES;EXEMPTIONS
HB 137 was HEARD and HELD in committee for
further consideration.
HB 143 AIDEA BONDS: SWEETHEART CREEK HYDRO PROJ.
HB 143 was HEARD and HELD in committee for
further consideration.
HB 155 FEES; WAIVERS; CREDITS; DEDUCTIONS;TAXES
HB 155 was HEARD and HELD in committee for
further consideration.
Co-Chair MacKinnon discussed the schedule.
CS FOR HOUSE BILL NO. 100(FIN)
"An Act establishing a credit against the net income
tax for an in-state processing facility that
manufactures urea, ammonia, or gas-to-liquid products;
relating to establishing the value of the state's
royalty share of gas production based on contracts
with certain in-state processing facilities that
manufacture urea, ammonia, or gas-to- liquid products;
and providing for an effective date."
9:06:27 AM
REPRESENTATIVE MIKE CHENAULT, SPONSOR, discussed HB 100. He
reviewed the basic issues in the bill.
DONALD BULLOCK, HOUSE MAJORITY ATTORNEY, introduced
himself.
9:09:49 AM
9:09:50 AM
AT EASE
9:10:16 AM
RECONVENED
Co-Chair MacKinnon confirmed that Speaker Chenault would
provide the committee with a sponsor statement at a later
date.
Mr. Bullock discussed the sectional analysis (copy on
file):
Section 1. Adds a new subsection to AS 38.05.180, the
oil and gas leasing statute. Provides for the use of
the price established in a contract between a lessee
and an in-state processing facility whose primary
function is the manufacture and sale of urea, ammonia,
or gas to liquids products to be the value of the gas
for royalty purposes. Requires the commissioner of
natural resources to make a written finding that
accepting the contract price is in the best interest
of the state and that the price is not unreasonably
low. Requires that the lessee is not affiliated with
the owner of the processing facility or with a
purchaser of more than 10 percent of the products of
the plant. Provides a definition for "gas-to-liquid
product."
Section 2. Adds AS 43.20.052 to AS 43.20 (Alaska Net
Income Tax Act) to provide an income tax credit to an
in-state processing facility that produces urea,
ammonia, or gas to liquids products for sale to third
parties. Provides that the credit is equal to the
amount of royalty paid on natural gas produced from
state leases and delivered to the processing facility.
Limits the taking of the credit to an amount that will
not reduce the taxpayer's income tax below zero.
Prevents any unused credit from applying to a tax in a
subsequent taxable year. Requires reporting to the
state by the taxpayer of the leases supplying the gas,
the names of the lessees, the quantities purchased,
price paid, and ownership of the processing facility.
Section 3. Repeals AS 43.20.052, the credit provision.
Section 6 makes the repeal effective January 1, 2024.
Section 4. Makes the credit applicable to gas from
state leases that is delivered for use at the
processing plant during the period on or after July 1,
2017 and before January 1, 2024.
Section 5. Makes sections 1, 2, and 4 take effect on
July 1, 2017.
Section 6. Repeals the tax credit January 1, 2024.
9:12:54 AM
Co-Chair Kelly queried the reason and determination of the
credits.
Mr. Bullock stated that the credits were to give the
company a tax credit based on the amount of gas that they
purchased.
Co-Chair Kelly surmised that the credit was for the
production of the product.
Mr. Bullock answered in the affirmative.
Senator Hoffman queried a cap on the tax credit.
Speaker Chenault detailed that there was a cap on the tax
credits.
Senator Hoffman wondered if there was a cap on the tax
liability.
Mr. Bullock was unsure if the percentages were considered,
and detailed that the credit calculation was based on the
royalty on the gas purchased.
9:16:49 AM
Senator Dunleavy wondered how long the plant had been shut
down.
Speaker Chenault replied that it closed in 2007.
Senator Dunleavy asked whether Agrium was owned by people
in state, or whether it was a subsidiary.
Representative Chenault replied that Agrium was owned by a
Canadian corporation.
Senator Dunleavy asked if there was anything to prevent the
parent company from selling Agrium after two or three year.
Representative Chenault did not think there was anything to
prevent the company from selling. He explained that they
must use state royalty gas in order to qualify for the
credit.
Senator Dunleavy recalled that the parent company could
sell the plant.
Representative Chenault agreed.
Mr. Bullock stated that the focus of the credit was to
produce urea, ammonia, and gas to liquids produced. He
stressed that the legislation was not owner-specific.
Senator Bishop had not had a chance to fully examine the
bill. He was interested in Mr. Bullock's comments
pertaining to the increasing price of fertilizer. He was
concerned about Alaska's ability to produce its own food.
Senator Bishop referred to a small refinery credit. He
discussed the price of asphalt in the Interior. He hoped
the bill would aid in driving down the price of fertilizer
in the Interior.
Representative Chenault replied that Agrium had sold to the
state at a reasonable price.
9:21:50 AM
Vice-Chair Micciche thought there would be approximately
$159 million per year in revenue to generate the tax. He
remarked that it was a break in corporate income tax. He
surmised that it would be $60 million in revenue to the
state, but only $12 million in corporate income tax
credits.
Mr. Bullock was not able to answer the question, he was not
familiar with the company's operations.
9:23:20 AM
Senator Olson referred to the controversial tax credits in
other areas of the industry. He did not want to see a
similar situation. He queried the administration's position
on the bill.
Representative Chenault had not had such conversations with
the administration. Under HB 100, it was incumbent upon the
company to produce a minimum amount before being able to
take advantage of a tax credit.
Vice-Chair Micciche referred to a conversation in the
Senate Resources Committee, in which the administration
indicated it would design tax credits with a similar
composition to the one proposed in the bill. He thought the
proposed tax could be likened to a "corporate tax holiday".
Representative Chenault answered in the affirmative.
9:26:28 AM
Co-Chair MacKinnon opened public testimony.
9:26:55 AM
AARON PLIKAT, BUILDING TRADES COUNCIL OF SOUTH CENTRAL
ALASKA, ANCHORAGE (via teleconference), testified in favor
of the bill. He did not think the bill concerned union
versus non-union issues. He thought the bill was
differentiated from other tax credit formats.
Co-Chair Kelly wanted to correct the record to say. He
asserted that all the tax credits for the Cook Inlet
required investment.
Representative Chenault agreed
9:29:23 AM
RICK KOCH, CITY MANAGER, CITY OF KENAI (via
teleconference), testified in support of the bill. He
thought that fertilizer production was not the only issue.
He recounted that the urea cost (for use at the airport)
had tripled upon the closure of the previous facility. He
mentioned Alaska value-added products. He did not think the
tax credit proposed in the bill was similar to other tax
credit structures. He relayed that d had met with the
governor, and the governor had expressed his support. He
did not observe a negative component in the legislation.
Senator Bishop asked Mr. Koch to elaborate on the
significance of the urea used at the airport.
Mr. Koch replied that the airport did use urea for de-
icing.
9:33:36 AM
STEVE WENDT, MANAGER, AGRIUM, KENAI (via teleconference),
testified in favor of the bill. He discussed the closure of
Agrium due to insufficient supply.
Co-Chair MacKinnon asked if the Agrium company operated
with a board of directors, and whether they looked at a
return on investment.
Mr. Wendt affirmed that the board of directors. He thought
the bill would enable the company to offset the large
initial investment able to compete in the corporation for
the limited corporate dollars.
Senator Bishop referred to the previous testifier, Mr.
Plikat, and wanted to make sure that the jobs would be
available.
Mr. Wendt stated that the company planned on hiring all
Alaskans for the 140 jobs that would be created. He
detailed that the company only worked a seven day on/seven
day off schedule.
HB 100 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 77(FIN)
"An Act relating to training regarding disabilities
for police officers, probation officers, parole
officers, correctional officers, and village public
safety officers; relating to guidelines for drivers
when encountering or being stopped by a peace officer;
relating to driver's license examinations; and
relating to a voluntary disability designation on a
state identification card and a driver's license."
9:39:38 AM
REPRESENTATIVE STEVE THOMPSON, SPONSOR, discussed the
legislation:
When people with non-apparent disabilities interact
with peace officers and corrections officers, elements
of their disabilities often brush against officers'
protocols and may result in serious misunderstanding
or even tragedy. The goal of HB77 is to improve
communications between law enforcement and corrections
professionals who interact with people who have non-
apparent disabilities, whether these disabled
individuals encounter the "systems" as victims,
witnesses, or alleged perpetrators.
The first part of HB 77 focuses on training regarding
interactions with people with non-apparent
disabilities. The bill requires the implementation of
a non-apparent disability awareness training component
for Alaska peace officers, corrections officers and
parole/probation officers. The Alaska Police Standards
Council, has established a basic course at the academy
level. The training instructs officers how to engage
in appropriate interactions with individuals who
experience a non-apparent disability. The course
instructs officers and the guidelines will stress
understanding of the different manner in which people
with non-apparent disabilities process sensory stimuli
and language.
The bill also requires that the Department of Motor
Vehicles (DMV) add a section to the Passenger Vehicle
Driver Handbook that instructs drivers as to their
responsibilities when interacting with a peace
officer. Basic instruction will be added to the
driver's manual and one or more questions will be
added to the written driver's license test. Awareness
training for both police officers and the public will
aid in increasing the safety of most encounters.
Another component of HB 77 is to implement a statewide
voluntary identification system where a discrete
marker will be placed on an Alaska Driver's license or
an Alaska ID card. The marker would indicate that the
individual has a disability that may not be apparent.
The police or corrections officer, having taken the
disability awareness training, will be able to
understand and more appropriately interact with the
individual.
If a person's disability is not recognized during an
encounter, it may affect the outcome of that
encounter. This bill would push to improve
communication between peace officers, corrections
officers and parole/probation officers when
interacting with people who have non-apparent
disabilities. The hope of this bill is to reduce the
potential for tragic encounters in our state.
9:42:20 AM
JANE PIERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
discussed the sectional analysis (copy on file):
Section 1. Amends AS 18.65.220 to include statutory
language that expands the duties of the police
standards council's training program to include
training in recognizing and interacting with a person
with disabilities, as well as familiarization with
resources that are available to those with hidden
disabilities.
Section 2. Adds a new subsection to AS 18.65.310.
Providing that a person may voluntarily designate on
their state identification card that the person has a
disability and the proof required for the designation.
Section 3. Amends AS 18.65.670(c) to include
disability training to village public safety officers.
Section 4. Amends AS 28.05.011 by adding a new
subsection to include the duties and responsibilities
of drivers when encountering or being stopped by a
peace officer be included in the driver's manual.
Section 5. Amends AS 28.15.081(a) to include the
duties and responsibilities of drivers when
encountering or being stopped by a peace officer on
the driver's test examination.
Section 6. AS 28.15.111 is amended by adding a new
subsection (d), providing that a person may
voluntarily designate on their Alaska Driver's License
a disability designation, proof required for the
designation and fees that may be charged.
Ms. Pearson remarked that Section 1 was in accordance with
the Americans with Disabilities Act (ADA) Title II.
9:44:04 AM
Co-Chair MacKinnon asked if the driver's license indicator
would qualify the individual for something else, and
whether they would be screened for additional benefits.
Ms. Pierson answered in the negative, and clarified that an
individual would be required to get a health care provider
to receive the designation. It would not change any
designation for any other type of services.
Co-Chair MacKinnon surmised that the only issue was the
work to receive the designation.
Mr. Pierson agreed and restated that it was voluntary.
Co-Chair MacKinnon wondered whether the DMV would address
the boundaries.
Ms. Pierson replied that there was already a set process.
Co-Chair MacKinnon remarked that there was some alleged
issue of posing as police officers.
Senator Olson wondered if there were other states that had
similar implementation.
Ms. Pierson was not sure. She had seen recent legislation
that proposed to mark license plates.
9:49:19 AM
ART DELAUNE, WALLBUSTERS/ACCESS ALASKA, FAIRBANKS (via
teleconference), testified in support of the bill.
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon asked if there would be sensitivity to
training when adding to the manual.
AMY ERICKSON, DIVISION OF MOTOR VEHICLES, ANCHORAGE (via
teleconference), stated that the DMV had no problem putting
a designation in the manual or license.
Co-Chair MacKinnon asked if Ms. Erickson had checked with
the Department of Law about integration.
Co-Chair MacKinnon directed attention to a memo from LAW
(copy on file).
LT. CHAD GODEN, ALASKA STATE TROOPERS, SITKA (via
teleconference), stated that he it would not be a problem
to implement the program.
HB 77 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 155(FIN)
"An Act repealing an exploration incentive credit;
amending the calculation of adjusted gross income for
purposes of the tax on gambling activities aboard
large passenger vessels; repealing the amount that may
be deducted from the motor fuel tax to cover the
expense of accounting and filing for the monthly tax
return; repealing a provision allowing an
investigation expense under the Alaska Small Loans Act
to be in place of a fee required under the Alaska
Business License Act; repealing the amount that may be
deducted from the tobacco excise tax to cover the
expense of accounting and filing for the monthly tax
return; repealing the discount on cigarette tax stamps
provided as compensation for affixing the stamps to
packages; and providing for an effective date."
9:53:54 AM
AT EASE
9:55:27 AM
RECONVENED
REPRESENTATIVE STEVE THOMPSON, SPONSOR; discussed the bill:
With increasing technology, DNA exonerations have been
on the rise. There have been 325 post-conviction DNA
exonerations with the vast majority coming since 2000.
Each of these individuals spent time behind bars, an
average of 13.6 years, and was released into a changed
world. House Bill 55 gives these wrongfully imprisoned
victims a chance to start a new life and integrate
back into society.
Specifically, HB 55 creates an administrative process
whereby victims of overturned criminal convictions can
request compensation from the state for time served.
They can be compensated up to $50,000 per year with a
cap at two million dollars. In order to qualify for
the compensation, the claimant must have served time
in prison and then have been exonerated via retrial,
dismissed charges, or executive pardon because of
innocence.
While there is no price on the emotional and personal
suffering of those who were wrongfully imprisoned, HB
55 would bring Alaska up to the federal compensation
standard to help right the state's wrong. Financial
compensation would help victims of wrongful
imprisonment repair their lives by covering costs of
education, healthcare, housing and transportation.
This legislation will right the state's wrongs. Every
innocent person, regardless of how they became
incarcerated, deserves just compensation for the time
they wrongly served. HB 55 is a stepping stone in a
long process towards protecting all Alaskans.
9:57:18 AM
BRODIE ANDERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
discussed the sectional analysis:
Section 1of the bill adds wrongful conviction and
imprisonment to AS 44.77.010(a) which provides for the
presentation of money claims against the state to the
Department of Administration.
Section 2 sets out the circumstances under which a
person will be eligible for compensation for wrongful
conviction and imprisonment:
AS 44.77.018(a) requires that for a person to obtain
compensation, the person must first present the claim
to the attorney general and show that the person was
convicted of one or more offenses, was sentenced to a
term of imprisonment, served part or all of the
sentence, and:
(1) That the conviction was vacated or reversed
because the person was not guilty; or a pardon
was granted on account of innocence and wrongful
conviction
(2) The person did not commit any of the crimes
charged in the criminal action in which the
person was convicted, and did not cause the
conviction by committing perjury or induce
another to commit perjury. A false confession or
guilty plea to a crime the person did not commit
is not considered a cause of conviction in this
section.
AS 44.77.018(b) provides that a person is not entitled
to compensation for a period of imprisonment that is
served concurrently with a sentence for another
offense.
AS 44.77.018(c) sets the requirement of the section at
$50,000 times the number of years of wrongful
imprisonment, including fractions representing partial
year, up to a maximum of $2 million.
AS 44.77.018(d) prohibits a person who receives
compensation under the section from bringing an action
on the same subject matter involving the person's
arrest, conviction, or length of confinement.
AS 44.77.018(e) requires that a claim must be filed
within two years after the dismissal, not guilty
verdict, or pardon on which the claim is based, except
that the attorney general can authorize payment for a
late-filed claim if the person shows good cause for
the delay.
Section 3 a person making a claim from wrongful
conviction and imprisonment may appeal the denial of
the claim under the Administrative Procedures Act, but
may not, unlike other claimants under AS 44.77.010,
bring an action under AS 09.50.250 - 09.50.300 (claims
against the state) if the Department of Administration
fails to act under AS 44.77.
Section 4 provides that for claims for wrongful
conviction and imprisonment, the claims process in AS
44.77.010 - 44.77.060 applies even if the agency to
which the person applies (which in this case would be
the Department of Law) has a mandatory claims
procedure.
Co-Chair MacKinnon CLOSED public testimony.
HB 155 was HEARD and HELD in committee for further
consideration.
10:01:37 AM
AT EASE
10:02:00 AM
RECONVENED
CS FOR HOUSE BILL NO. 143(FIN)
"An Act authorizing the Alaska Industrial Development
and Export Authority to issue bonds to finance the
infrastructure and construction costs of the
Sweetheart Lake hydroelectric project."
10:02:15 AM
REPRESENTATIVE CATHY MUNOZ, SPONSOR, discussed the bill:
House Bill 143 authorizes the Alaska Industrial
Development and Export Authority to issue up to $120
million in conduit issuance bonds to finance a
hydroelectric project at Sweetheart Lake,
approximately 43 miles south of Juneau. Conduit
issuances do not impact AIDEA bonding capacity and
would solely be based on the merits of the project.
AIDEA would act as a facilitator by vetting and
performing due diligence on the project to determine
whether it qualifies for such financing.
Hydroelectric power is a clean, effective, and
affordable source of energy in coastal, rainforest
Alaska - a region that can use it to offset high costs
of industries such as mining, processing fish, and
forest products. Mining, tourism, and fish processing
are vital to the area's economy.
Affordable energy is a keystone of a healthy and
sustainable economy. It ensures Alaska families,
businesses, and job-creating industries may grow and
thrive. HB 143 would help a region take steps toward
unlocking its great energy and resource potential and
move toward having a stronger and more diversified
economy.
10:05:07 AM
TERRY HARVEY, STAFF, REPRESENTATIVE CATHY MUNOZ, discussed
the sectional analysis (copy on file):
Section 1 (a) Provides legislative approval for the
Alaska Industrial Development and Export Authority to
issue bonds for the Sweetheart Lake hydroelectric
project in an amount not to exceed $120,000,000
payable exclusively from the revenue derived from the
project.
(b) Provides that the bond authorization in this
section does not constitute a general obligation
of the state or authority.
(c) Provides that the bonds authorized by this
section may not be considered in calculating the
authority's 12-month bonding limitation under AS
44.88.095(a).
Section 2 Repeals sec. 1 on June 30, 2020.
10:06:25 AM
Senator Dunleavy wondered whether the bill had any cost to
the state.
Representative Munoz reiterated that the bill had no cost
to the state.
10:06:46 AM
Senator Olson wondered what would occur if the mine shut
down.
Representative Munoz related that Kensington had invested
in an 8,000 foot tunnel, and there were reserves that were
available for low cost power.
Senator Olson asked about the potential ramifications if
Kensington were to shut down.
Representative Munoz replied that the other large customer
was the downtown district heating project.
Vice-Chair Micciche wondered why the bond authorization did
not constitute a general obligation to the state.
10:09:19 AM
JOHN SPRINGSTEEN, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA) (via
teleconference), explained that the clause was included so
the project would not be against the 12-month rolling limit
of $400 million.
Co-Chair MacKinnon announced that the bond debt report had
zero cash available for future bond under the legislature's
debt calculation. She wondered if the limit would be
exceeded by $120 million.
Mr. Springsteen replied that it was a conduit issuance and
relied solely on the revenue of the project.
Co-Chair MacKinnon wondered whether other projects were
counted against the debt limit of the rolling average with
backed revenue bonds.
Mr. Springsteen stated that current statute dictated that
the only bond issuances that were not counted toward the
$400 million 12-month rolling cap were refunding bonds.
Co-Chair MacKinnon wondered if the legislation was raising
the cap by $120 million.
Mr. Springsteen replied that the legislation was a one-time
approval.
Co-Chair MacKinnon asked how long it would take to fund the
project.
Mr. Springsteen stated that the project had not yet come
forward with a feasibility study.
Co-Chair MacKinnon asked if such projects were typically 10
years, 20 years, 30 years, or 50 years.
Mr. Springsteen thought that hydroelectric projects were
typically 50 years, and the project could be up to 100
years.
Vice-Chair Micciche surmised that the bill was not against
AIDEA's bonding limitation because the securities were
based upon the financial backing of another entity.
Mr. Springsteen iterated that the assets and revenue of the
project provided a security for the bond issuance.
Co-Chair MacKinnon asked if there was a moral obligation
with the revenue bond.
Mr. Springsteen stated that in the instance there was not a
moral obligation.
Co-Chair MacKinnon opened public testimony.
Co-Chair MacKinnon CLOSED public testimony.
10:15:27 AM
AT EASE
10:15:37 AM
RECONVENED
10:16:19 AM
Vice-Chair Micciche wanted to support the Kensington mine.
He stated that the heat pump technology was fascinating. He
hoped to expand heat pump technology.
Co-Chair MacKinnon commented that she would like to discuss
the reason for the language.
HB 143 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 41(FIN) am
"An Act relating to sport fishing services, sport
fishing operators, and sport fishing guides; and
providing for an effective date."
10:17:40 AM
AT EASE
10:21:27 AM
RECONVENED
Vice-Chair Micciche MOVED to ADOPT proposed committee
substitute for CSHB 41(FIN), Work Draft 29-LS0238\G
(Bullard, 3/18/16).
Co-Chair MacKinnon OBJECTED for discussion.
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained that,
over the interim, there was work on examining the issues
raised in previous hearing from the prior session. She
stated that on January 12, 2016, the stakeholders,
departments, and staff to address those concerns. The main
change in the committee substitute was that the freshwater
and saltwater were bifurcated, and the logbooks and
licensing only require saltwater. She noted that on page 2,
line 31 to page 3, line 9 added a definition of saltwater
sport fishing services. She looked at page 5, lines 10
through 14 which allowed the department to adopt
regulations for a procedure that allows a person to apply
for a waiver of timely submission of the reports required
in the bill. She stated that the other substantial change
was on page 8, line 19, which moved the effective date to
2019.
Co-Chair MacKinnon REMOVED her OBJECTION. There being NO
OBJECTION, it was so ordered.
10:24:31 AM
REPRESENTATIVE CATHY TILTON, SPONSOR, related that she had
worked over the previous interim to address issues that had
been identified.
10:25:21 AM
CRYSTAL KOENEMAN, STAFF, REPRESENTATIVE CATHY MUNOZ,
discussed the sectional analysis (copy on file):
Section 1 - Effective January 1, 2016; establishes
license fees at the rate of $200 for operators, $100
for guides, and $200 combined.
Section 2 - Effective January 1, 2016; Amends
16.05.395 Sport fishing vessel registration; updates
the statute references to reflect the reinstated
program.
Section 3 - Effective January 1, 2026; removes the
language in Section 4 to reflect the 10 year sunset
provision.
Section 4 - Effective January 1, 2016; Reestablishes
the Sport fishing operator license, Sport fish guide
license, reporting requirements, penalties, and
definitions; only change to original statute language
is to reflect the updated statute citations.
Section 5 - Effective January 1, 2016; Reestablishes
language in AS 25.27.244(s)(2) as this language was
repealed December 31, 2014; cleanup of statute since
(ii) was repealed in 2005.
Section 6 - Effective January 1, 2016; Reinserts
language into AS 41.21.506 Comprehensive Management
Plan, Regulations that was repealed with the sunset
provision; This language requires the DNR Commissioner
to develop and adopt a management plan for the Kenai
River Special Management Area in conjunction with the
Borough.
Section 7 - Effective January 1, 2026; removes the
language in Section 8 to reflect the 10 year sunset
provision.
Section 8 - Effective January 1, 2026; Repealers for
the 10 year sunset provision.
Sections 9 and 10 - Transitional provision for
regulations with an immediate effective date.
Section 11 - Section 3, 7, and 8 take effect January
1, 2021.
Section 12 - Effective date of January 1, 2016.
10:29:35 AM
Co-Chair MacKinnon stated that her staff had sent her a
message to make the committee aware that there was an
ongoing issue related a violation in the bill.
Co-Chair MacKinnon specified that the subsequent two bills
concerned fisheries on the topic of state versus personal
use.
Co-Chair MacKinnon asked the sponsor to summarize what was
trying to be accomplished with the bill.
Representative Tilton stated that the bill was introduced
to better serve the state with regard to the allocation of
halibut resources.
Co-Chair MacKinnon noted that she would reopen public
testimony.
10:33:01 AM
ANDY MEZIROW, SELF, SEWARD (via teleconference), testified
in support of the bill.
Senator Dunleavy asked if the department currently kept a
logbook.
Mr. Mezirow stated that the department currently had a log
book, however without the legislation the department would
not be able to have it
10:36:08 AM
SAMANTHA WEINSTEIN, EXECUTIVE DIRECTOR, SOUTHEAST ALASKA
GUIDES ORGANIZATION, ANCHORAGE (via teleconference),
testified in support of the bill.
10:37:24 AM
PAUL JOHNSON, SELF, GULL COVE (via teleconference),
testified in support of the bill. He was concerned that
individuals in rural areas would not proper access, and
felt that there was room for mistakes.
10:39:44 AM
Co-Chair MacKinnon mentioned that there was work on a
resolution related to the violation issue.
10:40:18 AM
DICK ROHRER, SELF, KODIAK (via teleconference), echoed the
comments of the previous testifier. He maintained that //
He directed attention to page 6, lines 4 through 6 of the
bill.
Senator Olson asked why the designation was changed to
saltwater only, rather than including freshwater.
HEATH HILYARD, STAFF, REPRESENTATIVE CATHY TILTON,
explained that stakeholder meetings resulted in the feeling
that there were a number of unique situations within the
freshwater realm that required different treatment. He
stated that the logbook programs drove the information to
make management decisions at the North Council level, it
was deemed necessary to progress with treating the
freshwater at a different time.
Senator Olson wondered whether the bill targeted saltwater
guides.
Mr. Hilyard responded that it was not the intent of the
bill.
Senator Olson asked if the bill would have any effect on
Native and non-Native subsistence users.
Mr. Hilyard believed that the subsistence provision was at
a state level, and halibut was a federally managed fish. He
deferred to the department to answer more specifically.
Senator Olson stressed that he wanted an answer to his
question.
10:45:34 AM
TOM BROOKOVER, DIRECTOR, DIVISION OF SPORT FISHERIES,
DEPARTMENT OF FISH AND GAME (via teleconference), agreed to
provide that information.
Co-Chair MacKinnon requested more information about the
freshwater provision, and how that position would be
defended for logs in freshwater.
Vice-Chair Micciche understood that there would be no
change to the freshwater requirement.
Ms. Koeneman agreed.
ALPHEUS BULLARD, ATTORNEY, LEGISLATIVE LEGAL SERVICES (via
teleconference), remarked that the bill, except for one
provision, related only to the management of saltwater
fishing guides and saltwater fishing operators.
Vice-Chair Micciche asked for more information about the
change to freshwater.
Mr. Bullard referred to Section 2, which had a requirement
that all vessels used to provide sport fishing services
whether in freshwater or saltwater have appropriate
identification.
Co-Chair MacKinnon requested that language and amendments
be delivered to her office the following day.
HB 41 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 137(FIN) am
"An Act raising certain fees related to sport fishing,
hunting, and trapping; relating to the fish and game
fund; providing for the repeal of the sport fishing
surcharge and sport fishing facility revenue bonds;
replacing the permanent sport fishing, hunting, or
trapping identification card for certain residents
with an identification card valid for three years;
relating to hunting and fishing by proxy; relating to
fish and game conservation decals; raising the age of
eligibility for a sport fishing, hunting, or trapping
license exemption for state residents; raising the age
at which a state resident is required to obtain a
license for sport fishing, hunting, or trapping; and
providing for an effective date."
10:48:36 AM
Co-Chair MacKinnon opened public testimony.
10:49:23 AM
AT EASE
10:49:30 AM
RECONVENED
Co-Chair MacKinnon announced that the day's testimony would
address version U.
10:49:43 AM
MIKE TINKER, ALASKA WILDLIFE CONSERVATION ASSOCIATION,
FAIRBANKS (via teleconference), testified in opposition to
the bill.
Co-Chair MacKinnon asked Mr. Tinker to provide his written
testimony.
Co-Chair MacKinnon stated that she would hear from one more
testifier.
10:53:20 AM
DWIGHT KRAMER, KENAI AREA FISHERMAN'S COALITION, KENAI (via
teleconference), spoke in opposition to the bill.
Co-Chair MacKinnon She offered to give testifiers priority
the following day.
HB 137 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:57:01 AM
The meeting was adjourned at 10:56 a.m.