Legislature(2017 - 2018)SENATE FINANCE 532
05/08/2018 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB331 | |
| HB260 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 331 | TELECONFERENCED | |
| + | HB 260 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
May 8, 2018
2:03 p.m.
2:03:25 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 2:03 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Gary Stevens
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Ed King, Principal Economist, King Economics, Juneau;
Barbara Huff-Tuckness, Director of Legislative and
Governmental Affairs, Teamsters Local 959, Juneau;
Representative Dan Saddler, Sponsor; Morgan Foss,
Legislative Liaison, Department of Fish and Game.
PRESENT VIA TELECONFERENCE
Ben Mulligan, Vice-President, The Alaska Chamber,
Anchorage; Marleanna Hall, Executive Director, Resource
Development Council, Anchorage; Al Barrette, Taxidermist,
Fairbanks; Tom Brookover, Director, Sport Fish Division,
Department of Fish and Game; Bruce Dale, Director, Division
of Wildlife Conservation, Department of Fish and Game;
Major Bernard Chastain, Director of Enforcement, Alaska
Wildlife Troopers.
SUMMARY
CSHB 260(FIN)am
FISH & GAME LICENSES;ELECTRONIC FORM
CSHB 260(FIN)am was HEARD and HELD in committee
for further consideration.
CSHB 331(FIN)
TAX CREDIT CERT. BOND CORP; ROYALTIES
CSHB 331(FIN) was HEARD and HELD in committee for
further consideration.
CS FOR HOUSE BILL NO. 331(FIN)
"An Act establishing the Alaska Tax Credit Certificate
Bond Corporation; relating to the issuance of bonds by
the Alaska Tax Credit Certificate Bond Corporation;
relating to purchases of tax credit certificates and
refunds and payments of tax credits; relating to the
oil and gas tax credit fund; relating to overriding
royalty interest agreements; providing for an
effective date by repealing the effective date of
secs. 2, 5, 8, 10, 31, 37, and 40, ch. 3, SSSLA 2017;
and providing for an effective date."
Co-Chair MacKinnon relayed that HB 331 was heard during the
morning Senate Finance Committee meeting (May 8, 2018 -
9:40 a.m.) and the bill hearing would continue with public
testimony.
Co-Chair MacKinnon OPENED public testimony.
2:05:52 PM
BEN MULLIGAN, VICE-PRESIDENT, THE ALASKA CHAMBER, ANCHORAGE
(via teleconference), spoke in support of the bill. He
related that the Alaska Chamber supported efforts by the
state to pay the credit obligations. He felt that the state
had taken too long in paying off the credit obligations and
opined that the action created a "negative business
climate, which damaged its reputation" and threatened
future investment. The chamber encouraged the committee to
support the measure as a way to restore credibility among
the business community.
2:07:10 PM
ED KING, PRINCIPAL ECONOMIST, KING ECONOMICS, JUNEAU,
voiced support for the bill. He discussed that currently
four projects were stalled by the financial constraints of
the companies involved. He believed that the projects were
"constrained" due in part by the expectation of receiving
their earned tax credit. The companies invested in marginal
oil fields due to the credit program and the investment
capital was not available from the market. He indicated
that the projects would remain idle until the credits were
paid. He thought that evidence supported the idea that the
obligations "must" be paid. He believed that the state
never had a statutory obligation to pay the credits but
thought that legal grounds existed to demand payment and
litigation would stall the projects longer. He supported
paying the credits from the perspective of resource
management; getting the fields into production quickly. He
felt that paying all the credits out of the state coffers
would put the Permanent Fund Dividend (PFD) at risk.
2:11:05 PM
MARLEANNA HALL, EXECUTIVE DIRECTOR, RESOURCE DEVELOPMENT
COUNCIL, ANCHORAGE (via teleconference), spoke in support
of the bill. She explained that the Resource Development
Council (RDC) was a trade association comprised of
individuals and companies from the oil and gas, mining,
fishing, forest products industries, and native
corporations. The council believed that the bill was
suitable and would help stimulate the state's economy by
encouraging investment on the North Slope, deliver state
revenue over the long-term, and provide more jobs. She
believed in sustaining the health of the private sector.
She opined that the bill would help restore Alaska's
reputation as "a stable and reliable oil and gas
jurisdiction." She remarked that the uncertainty regarding
the payment of the tax credits has led to stalled projects.
The credit payments would help the projects move forward.
2:13:49 PM
BARBARA HUFF-TUCKNESS, DIRECTOR OF LEGISLATIVE and
GOVERNMENTAL AFFAIRS, TEAMSTERS LOCAL 959, JUNEAU, spoke in
favor of HB 331. She related that the although the bill was
complicated it provided "much needed capital." She favored
the changes made in the House Finance Committee that
supported the Alaska workers through encouraging Alaska
hires. She reported that recently many of the small
companies were hiring Alaskans and were encouraging their
contractors to do the same.
Co-Chair MacKinnon CLOSED public testimony.
Co-Chair MacKinnon announced that amendments were due the
following day by 9am.
CSHB 331(FIN) was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 260(FIN) am
"An Act relating to possession of certain licenses,
tags, and permits issued by the Department of Fish and
Game; and providing for an effective date."
2:16:22 PM
REPRESENTATIVE DAN SADDLER, SPONSOR, introduced the bill.
He indicated that HB 260 allowed state licenses for
hunting, fishing, and trapping to be displayed on digital
devices, as well as in paper form. He offered that anyone
who's ever tumbled into a stream while landing a king
salmon or sat in the rain in a duck blind knows that paper
licenses can be damaged and become worthless. He noted that
the state currently allowed digital versions of car
insurance as proof and digital versions of minor offence
citations for court purposes. He listed the benefits of
extending the capability to outdoors recreational licenses
as follows:
Make it easier and more convenient for hunters,
fishers and trappers to obtain and carry required
licenses.
Help entice new participants in these activities, by
lowering one barrier to entry.
Make Alaska a more attractive tourist destination by
making it easier for visitors to get licenses.
Save money for the state and private license vendors,
by reducing or eliminating printing costs.
Representative Saddler thought that the current committee
substitute (CS) improved the bill by offering a peace
officer examining an electronic device displaying a license
with immunity from liability for damage to the device
resulting from the inspection. He added that HB 260 turns
the citation issued by a peace officer into a correctible
or "fix-it ticket," whereby a person can nullify any
violation for failure to have a license in actual
possession, by presenting a valid license within 30 days. A
provision was added that required fur dealers to possess a
license. The bill did not cover commercial fishing or paper
harvest tags. However, he believed that software developers
were currently inventing smartphone-based "apps" for the
items he listed. He concluded that the "bill was a small
bill that provided big benefits at no costs to the state."
2:18:55 PM
Co-Chair MacKinnon requested that Representative Saddler
present a Sectional Analysis.
Representative Saddler relayed the Sectional Analysis. He
read the following from a Summary of Changes (copy on file)
document:
Sec. 1 Deletes proposed new section AS 16.05.348
o Inserts and amends AS 16.05.330(a)
? Includes a permit as an item a person must possess
to engage legally in activities allowed in this
section.
? Deletes fur dealing from AS 16.05.330(a)(2) and
inserts it in AS 16.5.330(a)(4).
? Sec 2. Deletes effective date clause, and inserts
new subsection AS 16.05.330(f)
? Makes failure to possess a license into a "fix-it
ticket;" that is, lets a person nullify any violation
for failure to have a license in actual possession
while sportfishing, taking razor clams, hunting or
trapping, by presenting a valid license to the office
of the arresting or citing agency within 30 days of
the citation.
? Adds new subsection AS 16.05.330(g)
o Provides that a license in possession may be in
paper or electronic form.
? Adds new subsection AS 16.05.330(h)
o Provides a peace officer examining an electronic
device displaying a license with immunity from
liability for damage to the device resulting from that
inspection
? Sec. 3 Inserts and amends AS 16.05.430(a) to add
AS 16.05.330(f) and AS 16.05.407(b) to the list of
violations exempt from general provisions establishing
violations of state outdoor recreational license laws
as misdemeanors
? Sec. 4 Inserts effective date clause, making the
bill take effect July 1, 2018.
Representative Saddler elaborated that Section 1 was
related to fur dealing and added a fur dealing requirement
to taxidermy. He specified the two exemptions in Section 3.
The first exemption was on page 2, line 12 that added AS
16.05.330(f) as the fix-it provision created in Section 2
and the other, AS 16.05.407(b) was the provision related to
a nonresident hunters' guide requirement, under the penalty
of perjury that remained a Class B felony.
2:20:48 PM
Co-Chair MacKinnon requested clarity on use of the word
"permit" on line 6 [Section 1] of the bill.
MORGAN FOSS, LEGISLATIVE LIAISON, DEPARTMENT OF FISH AND
GAME, explained that the terms "tag license" or "permit"
covered all types of sport or recreation fishing, hunting,
or harvesting activities covered under the legislation.
2:21:49 PM
AL BARRETTE, TAXIDERMIST, FAIRBANKS (via teleconference),
requested an amendment, which would remove the taxidermy
license portion. He related that approximately 56
taxidermists were licensed in the state and he spoke for
most of them. He felt that the annual $100 fee did not
benefit the taxidermy industry. The license fee that the
Department of Fish and Game (DFG) collected did not benefit
the licensee and was very "insignificant" to ADF&G's
budget. He reported that taxidermists were also required by
law to have a state business license and some cities also
required a municipal business license. He believed that the
multiple licensures were redundant and unreasonable. He
furthered that currently state regulation required that a
taxidermist was licensed to sell an unclaimed finished
product. The proposed amendment would not affect the
regulation, as per state law, a taxidermist must possess a
state business license and that satisfied the requirement.
He asked the committee to consider the amendment.
Co-Chair MacKinnon CLOSED public testimony.
2:24:47 PM
Vice-Chair Bishop addressed the fiscal note. He reported
that the zero fiscal note for DFG, FN1 (DFG), was allocated
to the Commissioner's Office. He read from the analysis on
page 2 of the fiscal note:
This bill describes how a person holding a Fish and
Game sport fishing, hunting, trapping license, or
Permanent Identification Card may display a valid copy
(a sport fishing, hunting, or trapping license must be
signed in order to be considered valid) in paper or
electronic format to an enforcement agent as proof of
possession. The department does not foresee that any
statute or regulation currently restricts a user from
displaying the actual license in either paper or
electronic format, so long as the license is valid and
signed.
Fish and Game regulation 5 AAC 75.006(a) requires
that, (1) a nontransferable harvest record must be in
possession of each person taking and retaining a
finfish for which an annual limit has been
established; for a licensed angler, a harvest record
appears on the back of the angler's sport fishing
license, a harvest record may be obtained, without
charge, from department offices and fishing license
vendors; (2) immediately upon landing a finfish for
which an annual limit has been established, the angler
shall enter the date, location (body of water fished),
and species of the catch, in ink, on the harvest
record.
Fish and Game regulation 5 AAC 92.010 requires that,
(a) the number of each harvest ticket issued to a
hunter must be entered on the hunter's license. A
harvest ticket issued the previous calendar year and
still valid must also be entered on the hunting
license.
The department does not currently have the
technological ability to offer digital recording of
harvest on an electronic copy of the license. An
electronic copy of a valid license would need to
include the Harvest Ticket Number(s) on the original
license prior to the creation of that electronic image
if the user were to legally engage in those
activities. If the user intends to exclusively use the
electronic copy of the valid, signed license for sport
fishing for a species with an established annual
limit, the user would need to maintain a separate
paper copy of a harvest record for the purpose of
immediately recording harvest of those species.
Senator Micciche cautioned that paper copies were necessary
for harvest tickets. In addition, he stated that a phone
did not work properly in cold weather and advised carrying
paper licenses unless an individual was engaged in daily
and not multi-day hunting or fishing activities or when
hunting or fishing animals that didn't require a tag. He
asked DFG to confirm his conclusions.
2:29:03 PM
TOM BROOKOVER, DIRECTOR, SPORT FISH DIVISION, DEPARTMENT OF
FISH AND GAME (via teleconference), agreed with Senator
Micciche's conclusions. He exemplified that in areas that
included recording requirements like Cook Inlet and
Southeast Alaska where King Salmon had an annual limit the
harvest recording was required on the back of the paper
license. A sport fisher in those areas that obtained an
electronic license would also need a paper copy. The
department wanted to implement electronic harvest recording
but was unlikely for at least another year. He added that
King Salmon and other harvest tags were printed as a number
at the time the licensed was purchased electronically so it
was unnecessary to retain a paper copy of a king salmon tag
as long the individual purchased the license
electronically.
2:30:27 PM
BRUCE DALE, DIRECTOR, DIVISION OF WILDLIFE CONSERVATION,
DEPARTMENT OF FISH AND GAME (via teleconference),
introduced himself and agreed with Senator Micciche's
comments. He voiced that in the near term paper copies of
licenses were necessary for animals that required tags at
the time it was hunted, which also applied to federal water
foul stamps. He noted that provisions existed allowing use
of harvest recording APPS, which were currently being
developed but were not currently available.
2:32:13 PM
MAJOR BERNARD CHASTAIN, DEPUTY DIRECTOR OF ENFORCEMENT,
ALASKA WILDLIFE TROOPERS, DEPARTMENT OF PUBLIC SAFETY, (via
teleconference), relayed that he had discussions with DFG
regarding electronic licensing. Both agencies shared the
same concerns that were expressed during the meeting. He
was confident that working together an enforceable process
to determine the validity of licenses electronically or in
paper would be found.
Vice-Chair Bishop inquired whether a saved photo of the
electronic license was sufficient in areas without cell
phone coverage. Major Chastain replied that currently the
licensee was required to have a signed copy of the license
and at times individuals produced photos of licenses as
evidence of licensure. He hoped that the bill would allow
electronic licenses and DFG would allow a variety of
presentations including an electronic photograph. However,
the photograph did not include harvest reporting and he
recommended taking photos of the harvest tag or reporting
each time an animal was harvested.
Senator Micciche asked how Major Chastain would deal with
the "dead battery scenario" for individuals using a
smartphone. Major Chastain answered that Section 2 of the
bill addressed the repercussions if an individual did not
have a license in their possession and the provisions
regarding a correctible citation. He specified that the
trooper would issue a ticket and if a valid license was
presented within 30 days the ticket would be voided and
would not show up on the person's record.
2:36:32 PM
Senator Olson wondered whether the committee should
consider the taxidermists testimony and eliminate the
license requirement. Representative Saddler understood that
DFG wanted to utilize the information received from the
licenses to assist in enforcement against poaching. A
poached big game animal would likely end up at a
taxidermist's establishment. The permit would be one more
tool available to law enforcement for use against poaching.
Co-Chair MacKinnon asked for DFG's comments regarding the
taxidermists licensing. Ms. Foss indicated that DFG
preferred to maintain the licensing provision in statute.
Currently, the statute was the only regulation the
department had over the industry and granted DFG the
authority to revoke licenses if illegal activities such as
poaching or transferring animal parts were carried out by a
taxidermist.
2:38:49 PM
Major Chastain agreed with DFG's comments. However, the
wildlife troopers would comply with the enforcement
measures chosen by the legislature. He pointed out that
taxidermy was a commercial endeavor and wildlife troopers
had cited taxidermists for illegal activity. He viewed
licensing as important because it allowed the courts to
evoke the privilege of performing taxidermy as a punitive
measure against an individual who broke the law.
Co-Chair MacKinnon referred to Major Chastain's testimony
regarding some barriers in the code, such as the
requirement for an ink signature on a license. She asked
whether the issue was adequately addressed in the bill or
if the issue was regulatory. Major Chastain replied that
the provision existed in regulation, not statute. Co-Chair
MacKinnon remarked that the administration needed to
address the issue.
Senator Olson deduced that since the taxidermists were
licensed, the board had investigators that could revoke a
member's license engaged in illegal activity. Ms. Foss
deferred the answer to Mr. Dale.
2:41:31 PM
Senator Olson repeated his question concerning Major
Chastain's view that the licensing provision in the bill
was a significant enforcement tool. He wondered whether the
licensing board carried the enforcement weight through its
investigatory arm. Mr. Dale responded that the business
license was not adequate and lacked the classification of
taxidermy. Senator Olson felt that it unusual that the
professional licensure was not able to revoke a license for
illegal activity.
Co-Chair MacKinnon announced that amendments were due by 12
noon the following day.
2:43:18 PM
Representative Saddler deduced that the taxidermy business
license merely regulated the practice.
CSHB 260(FIN)am was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:43:45 PM
The meeting was adjourned at 2:43 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 260 - Status of 50 states on Electronic Fish Game licenses mobile apps websites.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |
| HB 260 Testimony Barrette.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |
| HB260 Sponsor Statement 5.4.18.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |
| HB260 Letter of Support Residential Hunters AK Letter of Support HB 260.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |
| HB260 Letter of Support SouthEast Alaska Guides Organization.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |
| HB260 Summary of Changes - Version O to Version O.A.pdf |
SFIN 5/8/2018 1:30:00 PM |
HB 260 |