Legislature(2019 - 2020)SENATE FINANCE 532
03/12/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation of Governor's Appointee: Lucinda Mahoney, Commissioner, Department of Revenue | |
| SB150 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | SB 150 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 55 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 12, 2020
9:04 a.m.
9:04:38 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Senator Josh Revak, Sponsor; Dustin Elsberry, Intern,
Senator Josh Revak; Ron Somerville, Territorial Sportsmen
Inc., Juneau; Doug Vincent-Lang, Commissioner, Department
of Fish and Game; Jasmin Martin, Staff, Senator David
Wilson; Nancy Meade, General Counsel, Alaska Court System.
PRESENT VIA TELECONFERENCE
Lucinda Mahoney, Appointee, Department of Revenue, Juneau;
Thor Stacey, Alaska Professional Hunters Association,
Fairbanks; Rod Amo, Executive Director, Alaska Outdoor
Council, Fairbanks.
SUMMARY
SB 55 TEMP. APPOINTMENTS TO COURT OF APPEALS
SB 55 was HEARD and HELD in committee for further
consideration.
SB 150 INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE
SB 150 was HEARD and HELD in committee for
further consideration.
^CONFIRMATION OF GOVERNOR'S APPOINTEE: LUCINDA MAHONEY,
COMMISSIONER, DEPARTMENT OF REVENUE
9:06:24 AM
LUCINDA MAHONEY, APPOINTEE, DEPARTMENT OF REVENUE, JUNEAU
(via teleconference), stated that she was sick, otherwise
she would be at the meeting in person. She highlighted her
resume, education, and work history.
9:12:20 AM
Acting Commissioner Mahoney continued to highlighted her
qualifications. She remarked that the Great Recession began
at the end of 2008, and the revenues were decreasing while
expenditures were increasing. She stressed that action was
immediately needed in order to maintain a balanced budget.
She stated that she was in a group to develop a long-range
fiscal plan. She explained that there was an evaluation of
multiple revenue sources and scenarios with expenditure
reductions. She remarked that the plan was implemented, and
the plan was revised over the years.
9:15:14 AM
Acting Commissioner Mahoney continued with her testimony.
She explained some personal issues that affected her most
recent employment.
Co-Chair Stedman recalled a discussion about some issues of
concern. He looked at page 5 of the current Comprehensive
Annual Financial Report (June 30, 2019):
We are unable to obtain sufficient appropriate audit
evidence to provide assurances over tax revenues,
because the Department of Revenue (DOR) management
denied auditors sufficient access to the Department of
Revenue's oil and gas production tax related
settlement appeal files during the audit field work
period. The files were needed to verify the proper
usage of oil and gas production tax credits in a
settlement of oil and gas production taxes.
Consequently, we were unable to determine whether
adjustments to tax amounts were necessary.
Additionally, we were unable to obtain sufficient
appropriate audit evidence due to Department of
Revenue's refusal to provide written representation
over the financial statement preparation and
presentation of the tax revenue accounts in written
representation of the completeness of the information
provided to the auditors.
Co-Chair Stedman stressed that the auditor's could not
reference the complete information, and he asked for
comment and position on that issue.
9:21:45 AM
Acting Commissioner Mahoney replied that she had
communicated with her department to better understand that
issue. She stressed that the audit occurred before her
tenure. She explained that her position on audits was that
that there should be a standard of full transparency. She
remarked that there were some confidential documents that
were eventually given to the auditor, and there may have
been some finding issues related to that. She pointed out
that there was attorney-client privileged documents that
the department was unable to provide.
Co-Chair Stedman remarked that the auditors were the
legislative and state auditors, so it was very concerning.
He remarked that there needed to be a "clean up" of that
issue, so the legislature could have full confidence in the
accuracy of the DOR data. She surmised that those types of
audit statements would not appear in future audits.
Acting Commissioner Mahoney replied that her goal was full
transparency.
Co-Chair Stedman asked for a restatement of her response.
Acting Commissioner Mahoney restated that her goal was full
transparency.
Senator Wielechowski appreciated the goal of full
transparency. He recalled a meeting where he had asked for
some documents that his office had repeatedly requested,
and she stated that she would provide that document. He
noted that his office had not yet received that document.
He wondered whether there was a plan to comply to that
request for information.
Acting Commissioner Mahoney replied that she would discuss
that with her staff, and provide that information.
9:25:01 AM
Senator Hoffman expressed concern Co-Chair Stedman's point.
He specifically noted his concern about the possibility
that the attorney general might be making a statement that
was a change from normal standing procedures of the
auditors to access the records. He remarked that there had
not been a similar issue in the past. He stressed that the
attorney general opinion might be different than the
standard operating procedure. He felt that the commissioner
of DOR must be "as forceful as possible" in order to have a
"clean audit." He queried any changes than the normal
standard procedures.
Acting Commissioner Mahoney replied that when she was the
CFO for the City of Anchorage, she frequently worked with
the city attorneys to influence in ways she felt would be
best for the city. She remarked that she would do the same
in the DOR position.
Senator Wielechowski queried thoughts on the revenue and
fiscal issue in the state.
Acting Commissioner Mahoney replied that it was a
complicated question, considering that she was not yet on
the job full-time. She believed that there needed to be a
long-term fiscal plan that evaluated all sources of
revenue, debt, and continue to decrease expenditures.
Co-Chair Stedman remarked that the governor's proposal
would consume the entire state's balance.
Acting Commissioner Mahoney did not feel that she had all
the detail to provide a solution. She believed that the
department was very skilled, and needed to work together to
come up with solutions.
9:31:23 AM
Senator Wielechowski wondered whether the new software
project that was enacted in Anchorage was a mistake.
Acting Commissioner Mahoney did not feel that it was a
mistake to implement a new software program. She agreed
that mistakes were made along the way.
Co-Chair Stedman handed the gavel to Co-Chair von Imhof.
Senator Wielechowski queried any potential conflicts of
interest from her businesses.
Acting Commissioner Mahoney responded that she started many
businesses. She explained that she was a member of a
company that issued patents for engineers. She did not
believe that any of the patents would cause any conflicts.
She invested in some marijuana companies. She had some
small minority interest ownerships in a global security
company and a real estate investment company. She did not
believe any would present any conflicts.
9:35:44 AM
Senator Wielechowski noted her husband's involvement in
represented Trans-Alaska Pipeline System (TAPS) owners
against the state. He wondered how she would separate any
involvement with the oil companies.
Acting Commissioner Mahoney replied that she did not intent
to be involved with anything historical or any of the
issues that her husband was involved in. She would be
involved in any legislation that might change tax
structures.
Co-Chair von Imhof pointed out that Alaska was a small
state, so it was difficult to find someone who would not be
involved in the oil industry.
Senator Bishop asked for more information about her
consulting business position, and wondered whether she was
involved in the audits.
Acting Commissioner Mahoney replied that she was the
Director of Advisory Services, and she was not involved in
the audits.
9:41:12 AM
Senator Wielechowski surmised that her husband still
represented oil and gas companies, but her plan was to
prospectively be involved in production tax and property
tax issues.
Acting Commissioner Mahoney responded that her plan was to
be involved with prospective and forward looking plan, but
nothing historical associated with her husband's work.
9:42:49 AM
AT EASE
9:43:02 AM
RECONVENED
Senator Bishop FORWARDED the appointment of Lucinda Mahoney
for consideration in accordance with Alaska Statute. He
relayed that this did not reflect an intent by any member
of the Senate Finance Committee to vote for or against the
confirmation of the individuals during any further
sessions. There being NO OBJECTION, it was so ordered.
9:43:47 AM
AT EASE
9:45:28 AM
RECONVENED
SENATE BILL NO. 150
"An Act repealing the termination date for the
intensive management hunting license surcharge."
9:46:00 AM
SENATOR JOSH REVAK, SPONSOR, explained the legislation.
9:47:35 AM
DUSTIN ELSBERRY, INTERN, SENATOR JOSH REVAK, stated that
the title summed up the bill. He stressed that it was
important to protect hunting and wildlife for future
generations.
9:50:01 AM
Co-Chair von Imhof stressed that the bill was simple, and
the purpose was to allow for the continuation of collection
of fees to expand the impact and leverage the funds.
Senator Revak agreed.
Co-Chair von Imhof surmised that the hunting community
would continue to pay the fees and did not want a sunset.
Senator Revak replied in the affirmative.
Senator Hoffman wondered how the funds initially benefits
the resource.
Senator Revak replied that there was some data to support
the resource.
9:52:40 AM
RON SOMERVILLE, TERRITORIAL SPORTSMEN INC., JUNEAU, spoke
in support of the legislation.
9:57:03 AM
Senator Wielechowski wondered whether this was a dedicated
or designated fund.
Mr. Somerville replied that it was a dedicated fund.
Senator Revak stressed that the commissioner of Department
of Fish and Game (DFG) was available for questions.
9:58:07 AM
DOUG VINCENT-LANG, COMMISSIONER, DEPARTMENT OF FISH AND
GAME, stated that it had benefitted hunting across the
state.
Senator Hoffman stressed that intensive management was
extremely important to protect the resource.
10:03:38 AM
Senator Bishop queried an update on UAVs for research
management.
Commissioner Vincent-Lang replied that the FAA was evolving
its regulatory oversight of the UAV use.
Senator Bishop was encouraged that the habitat had
increased eighteen over nineteen.
Co-Chair von Imhof OPENED public testimony.
10:05:37 AM
THOR STACEY, ALASKA PROFESSIONAL HUNTERS ASSOCIATION,
FAIRBANKS (via teleconference), testified in support of the
legislation.
10:07:39 AM
ROD AMO, EXECUTIVE DIRECTOR, ALASKA OUTDOOR COUNCIL,
FAIRBANKS (via teleconference), spoke in support of the
bill.
Co-Chair von Imhof CLOSED public testimony.
Senator Bishop reviewed the fiscal note.
10:10:07 AM
Co-Chair von Imhof remarked that the surcharge had
increased, and were used to match the dollars. She stressed
that it was important to keep the program going.
SB 150 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 55
"An Act relating to judges of the court of appeals;
and providing for an effective date."
10:11:05 AM
Co-Chair von Imhof announced that the committee had moved
the bill from committee a year prior. She explained that
the bill was returned to the Senate Judiciary Committee
where there was a solution with a larger proposed fiscal
note.
10:11:31 AM
SENATOR DAVID WILSON, SPONSOR, introduced himself.
10:11:36 AM
JASMIN MARTIN, STAFF, SENATOR DAVID WILSON, introduced
herself.
Senator Wilson explained the bill.
Co-Chair von Imhof surmised that the bill proposed a fourth
judge be added to the Court of Appeals.
Senator Wilson replied in the affirmative. He explained the
Sectional Analysis (copy on file):
Section 1: Amends AS 22.07.010 to add a fourth judge
to the Court of Appeals.
Section 2: Establishes an effective date of July 1,
2020.
Co-Chair von Imhof noted that the fourth judge would be
added with the intention of addressing the case backlog.
10:16:18 AM
NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM, spoke in
support of the bill.
Co-Chair von Imhof requested a review of the fiscal note.
Ms. Meade explained that the fiscal noted included the cost
for a permanent position, with the accompanying staff.
10:20:45 AM
Co-Chair von Imhof wondered whether the plan B was the
intention.
Ms. Meade replied in the affirmative.
Co-Chair von Imhof asked about Plan A.
Ms. Meade stated that if the bill were passed, the request
would be removed from the budget increment.
Co-Chair Stedman stated that the fiscal note could be
zeroed out to clear the accounting issue.
Ms. Meade replied that it was not a fiscal note issue, but
was a part of the Court System's budget increment request.
Senator Bishop stated that the published note was $228,020.
Co-Chair von Imhof agreed.
Co-Chair von Imhof discussed the following day's agenda.
SB 55 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:23:25 AM
The meeting was adjourned at 10:23 a.m.