Legislature(2003 - 2004)
05/08/2003 01:36 PM Senate L&C
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ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
May 8, 2003
1:36 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Gary Stevens
Senator Bettye Davis
Senator Hollis French
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR HOUSE BILL NO. 242(L&C)
"An Act relating to licensing of certified public accountants;
and providing for an effective date."
MOVED CSHB 242(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 120(RLS) am
"An Act excluding service contracts from regulation as
insurance; relating to insurance licensing for motor vehicle
service contracts and home warranties; and providing for an
effective date."
MOVED CSHB 120(RLS) am OUT OF COMMITTEE
SENATE CS FOR CS FOR HOUSE BILL NO. 151(L&C)
"An Act relating to claims and court actions for defects in the
design, construction, and remodeling of certain dwellings;
limiting when certain court actions may be brought; and amending
Rules 79 and 82, Alaska Rules of Civil Procedure."
MOVED SCSCSHB 151(L&C) OUT OF COMMITTEE
SENATE CS FOR CS FOR HOUSE BILL NO. 135(HES)
"An Act relating to marital and family therapists."
HEARD AND HELD
SENATE BILL NO. 209
"An Act relating to pilotage of certain foreign pleasure craft."
MOVED CSSB 209(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 194(L&C)
"An Act creating a tax credit under the Alaska Net Income Tax
Act for contributions to regional development organizations; and
providing for an effective date."
MOVED SCS CSHB 194(L&C) OUT OF COMMITTEE
PREVIOUS ACTION
HB 242 - No previous action to consider.
HB 120 - No previous action to consider.
HB 151 - No previous action to consider.
HB 135 - See HESS minutes dated 4/23/03.
SB 209 - No previous action to consider.
HB 194 - See CRA minutes dated 5/5/03.
WITNESS REGISTER
Representative Kevin Meyer
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 151.
Mr. Mike Milligan
12056 Gara Dr.
Kodiak, AK 99615
POSITION STATEMENT: Supported HB 151.
Mr. Richard Tilly, President
Interior Alaska Building Association
PO Box 72080
Fairbanks, AK 99707
POSITION STATEMENT: Supported HB 151.
Ms. Robin Ward
No address provided
POSITION STATEMENT: Supported HB 151.
Mr. Steve Orr
PO Box 871277
Wasilla AK
POSITION STATEMENT: Supported HB 151.
Mr. Alan Wilson
Alaska Home Builders Association
6014 Lund St.
Juneau AK 99801
POSITION STATEMENT: Supported HB 151.
Mr. John Bitney
Alaska State Home Builders
Juneau AK 99801
POSITION STATEMENT: Commented on HB 151.
Ms. Sarah Wright
Staff to Representative Mike Hawker
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 242 for the sponsor.
Representative John Coghill
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 120.
Ms. Linda Hall, Director
Division of Insurance
Department of Community & Economic Development
PO Box 110800
Juneau, AK 99811-0800
POSITION STATEMENT: Commented on HB 120.
Mr. Chuck Spinelli
Alaska Home Builders Association
9200 Vanguard No. 102
Anchorage AK 99507
POSITION STATEMENT: Supported HB 151.
Representative Peggy Wilson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 135.
Ms. Susan Arenth
No address provided
POSITION STATEMENT: Commented on HB 135.
Ms. Caren Robinson
Marriage and Family Therapist Association
No address provided
POSITION STATEMENT: Commented on HB 135.
Representative Tom Anderson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 194.
Mr. Larry Crawford, President
Anchorage Economic Development Corporation
900 W 5th Street, Ste 300
Anchorage AK 99501
POSITION STATEMENT: Supported HB 194.
Mr. Phelan Straube
Staff to Senator Ben Stevens
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 209 for the sponsor.
Captain Bob Winter
Southeast Alaska Pilots Association
Juneau AK 99801
POSITION STATEMENT: Supported SB 209.
Ms. Kate Tesar
Alaska Yacht Services
Juneau AK
POSITION STATEMENT: Supported SB 209.
Ms. Heather Beaty
Staff to Representative Anderson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 194.
Mr. Mark Graber, Audit Manager
Tax Division
Department of Revenue
PO Box 110400
Juneau, AK 99811-0400
POSITION STATEMENT: Commented on HB 194.
Mr. James Armstrong
Municipality of Anchorage
Anchorage AK
POSITION STATEMENT: Supported HB 194.
Mr. Edward Lamb, CEO
Alaska Regional Hospital
Anchorage AK
POSITION STATEMENT: Commented on HB 194.
ACTION NARRATIVE
TAPE 03-31, SIDE A
CSHB 151(JUD)am-DWELLING DESIGN/CONSTRUCTION CLAIMS
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:36 p.m. Present were SENATORS
STEVENS and SEEKINS. The Chair announced HB 151 to be up for
consideration.
REPRESENTATIVE KEVIN MEYER, sponsor of HB 151, said it provides
homeowners and construction professionals with a process to
solve construction issues on new homes or homes that are being
remodeled. He stated, "HB 151 requires homeowners to provide
written notice to the construction professionals of any defects
at least 90 days prior to taking a civil action against the
builder."
He explained that most of the time, this action isn't necessary
because most owners have a relationship with the builder and
could simply call the builder with a concern. However, if the
builder is too busy to take care of those concerns, this process
is in place. If the homeowner's complaints have not been
resolved within a 90-day period, the homeowner can proceed with
litigation. Under this bill, the homeowner has one year from the
time he or she detects the problem, but it cannot exceed the 10-
year statute of limitation for civil suits. Once the process has
begun, the statute of limitation is stopped until the homeowner
becomes aware that a settlement using this process will not
succeed.
REPRESENTATIVE MEYER said this litigation is important for many
of reasons. In Alaska, contractors and builders are required to
carry general liability insurance and many liability insurance
providers have stopped providing insurance or will provide it
only at a very expensive rate. The rise in insurance coverage,
sometimes $3,000 to $5,000, is often passed on to the homebuyer.
He said three conforming amendments need to be made as a result
of amendments adopted on the House floor and those were
incorporated into a proposed committee substitute.
SENATOR FRENCH arrived at 1:40 p.m.
SENATOR STEVENS moved to adopt SCS CSHB 151(L&C) as the working
document. There were no objections and it was so ordered.
CHAIR BUNDE asked if there has been any opposition.
REPRESENTATIVE MEYER replied that he has heard no opposition
from the public or the construction community.
SENATOR STEVENS asked him to explain the language on page 2,
line 18, about how the written notice takes place.
REPRESENTATIVE MEYER indicated that serving of notice is defined
on page 8, line 7, as delivery by personal service or by
certified mail.
MR. MIKE MILLIGAN, Kodiak resident, said he works in the
construction industry and supports this bill. He generally
supports local control and consensus and favors legislation that
doesn't require a winner or a loser.
MR. RICHARD TILLY, President, Interior Alaska Building
Association, supports HB 151. He thought it would show the
building industry and insurance industry that builders are
trying to deal with a resolution process for minor building
issues.
SENATOR DAVIS arrived at 1:45 p.m.
MS. ROBIN WARD said she was recently in Washington D.C. working
on this issue with 50 other state representatives in an effort
to make the industry more attractive to the insurance industry.
Although Alaska does not have many of the problems the Lower 48
has, Alaskans have to pay the same premiums because insurers
operate nationwide. She said that insurance premiums on her
homes will go up $2,000 per home next year.
MR. STEVE ORR, Mat-Su builder, supported HB 151, not only
because his insurance went up 1,500% this year (adding $2,000
per house for a total of $3,300), but because a bill like this
will end a two-year senseless battle that he has been in.
MR. ALAN WILSON, Alaska Home Builders Association - Juneau,
supported HB 151 and said his comments had been covered.
SENATOR FRENCH said his concern is that the two parties might
get into some kind of a stalling process and a huge amount of
time could go by, which isn't a good way to do business. He
wanted to know if the 21-day clock is ticking during the initial
exchange while the construction professional awaits videos or
something like that from the homeowner.
REPRESENTATIVE MEYER replied that he thought the clock stopped
during talks.
MR. JOHN BITTNEY, Alaska State Homebuilders Association,
referred him to page 2, line 4, to answer that question.
SENATOR FRENCH asked if that means the 21-day clock is not
ticking or that the right to eventually file a suit is not
ticking. He said he has two clocks in mind. One is the general
right to sue in court. The bill says a person does not have the
right to go to court and sue until they have been through this
process. He pointed out:
That's giving up something. That's giving up a
person's right to go to court and file suit. If you
only have to give that up for 21 days, I think that's
pretty reasonable. You can see the end of the time
period coming up pretty quickly, but what I don't want
to see is have the builder say, well, you can't go to
court until you give me the evidence to back up your
claim. So, then you could get into a standoff and
you'd never get anywhere....
CHAIR BUNDE said he would hold this bill temporarily until that
question gets resolved.
CSHB 242(L&C)-EXAM FOR CPA'S
CHAIR BUNDE announced CSHB 242(L&C) to be up for consideration.
MS. SARAH WRIGHT, staff to Representative Mike Hawker, sponsor,
said HB 242 updates Alaska statute to recognize changes in the
standardized testing procedures for Certified Public Accountants
adopted by the American Institute of Certified Public
Accountants (AICPA). The Alaska Board of Public Accountancy has
been administering this nationally used test since the 1960s
that CPAs are required to pass. The examination will change from
a paper and pencil format to a computerized examination in May
2004. Current Alaska statute requires a written examination. HB
242 makes the test acceptable in any form. It also allows the
Board to establish by regulation what constitutes a passing
grade using AICPA prepared exam regulations. The AICPA provides
national uniformity of scheduling credits and passing
requirements. Several sections of Alaska statute would be
repealed for consistency with a computerized exam and
transitional language is provided for people who have begun the
CPA exam process and are now moving into the computerized exam
arena. She noted that the Division of Occupational Licensing
helped to draft the bill.
SENATOR STEVENS assumed the paper and pencil test is taken in
front of an examiner and asked if that will be true of the
computer tests.
MS. WRIGHT replied yes.
CHAIR BUNDE asked if they have questions about security
concerns.
MS. WRIGHT replied none that she was aware of.
SENATOR STEVENS moved to pass CSHB 242(L&C) with individual
recommendations and its zero fiscal note. SENATORS DAVIS,
FRENCH, STEVENS, and BUNDE voted yea and it passed out of
committee.
CSHB 120(RLS)am-SERVICE CONTRACTS
CHAIR BUNDE announced CSHB 120(RLS)am to be up for
consideration.
REPRESENTATIVE JOHN COGHILL, sponsor of HB 120, said this bill
speaks to a gray area in law about service contracts. He said
the past administration made a ruling that a company like Sears
can provide a service contract through a direct retailing
outfit. However, if service is provided under other contracts,
it must be provided as insurance rather than as a contract. The
present administration wants this issue clarified. The bill will
take service contracts out of the insurance statute. He noted he
has made sure the service contracts in the motor vehicle
industry are very clearly not a part of this discussion.
CHAIR BUNDE noted a letter from Linda Hall, Director of the
Division of Insurance, in which she states that HB 120 is
beneficial to both the division and those entities that provide
service contracts. He asked if it will benefit consumers as
well.
MS. LINDA HALL, Director, Division of Insurance, replied that
she thought so. The issue of what is and is not insurance has
been problematic for a number of years. This bill clarifies that
issue, which should benefit all involved.
SENATOR STEVENS asked if a service contract and an extended
warranty are the same thing.
MS. HALL replied that they are technically the same thing. An
extended warranty is normally offered by a manufacturer; a
service contract does similar things, but is from a different
entity and is purchased. This bill addresses the service
contracts.
CHAIR BUNDE said he thought a service contract would take care
of routine maintenance that wouldn't be part of a warranty.
MS. HALL elaborated that service contracts cover things that are
generally operational.
SENATOR FRENCH said he was interested in the exemption that
takes service contracts out of the purview of the Division of
Insurance and that service contracts include servicing things
made by other people. He asked if once they are taken out of the
division's purview, another entity will police how they are
administered and regulated. He asked who he would complain to if
Best Buy conned him into buying a $30 service contract on his
new television but wouldn't come out and fix it.
MS. HALL replied that court would be an option, but there is a
consumer protection agency somewhere.
SENATOR STEVENS moved to pass CSHB 120 (RLS) am from committee
with its zero fiscal note and individual recommendations.
SENATORS FRENCH, DAVIS, STEVENS and BUNDE voted yea and it moved
on to its next committee of referral.
CSHB 151(JUD)am-DWELLING DESIGN/CONSTRUCTION CLAIMS
CHAIR BUNDE announced that CSHB 151(JUD)am was up for
consideration again and that Representative Meyer would address
the earlier question.
REPRESENTATIVE MEYER said that Representative Gara's amendment
had to do with the concept of tolling and didn't pertain to the
21-day clock, but instead to the 10-year statute of limitations.
He said the concern about the builder requiring substantial
evidence and how that would impact the 21-day time frame
wouldn't be an issue because the builder knows the problem has
to be resolved in 21 days. As soon as a builder received
notification, he would make his own inspection.
SENATOR FRENCH wanted to clarify that time won't be tolled and
the pressure is on the builder to get back to look at the house.
REPRESENTATIVE MEYER agreed.
SENATOR FRENCH expressed concerned that all houses aren't built
on the road network and if a dispute came up, a builder might
not want to invest the money to fly back out to a rural area. He
didn't want the homeowner stuck in some kind of a discovery
dispute and be in a standoff because he can't get to court and
can't get the builder to drop his demand for photographs and
video tape documentation, etcetera of the home defect.
REPRESENTATIVE MEYER responded that he shares his concern but
felt that all builders statewide would know the process and
understand if they built in a remote area they would have to do
it right.
SENATOR STEVENS asked if builders will no longer have to carry
general liability insurance if this bill passes.
REPRESENTATIVE MEYER replied that builders are required to carry
general liability insurance, but currently insurance rates are
extremely high because so many cases are either being resolved
in court or builders are resolving them outside of court.
Nevertheless, insurance companies are having to pay claims and
rates are going up as a result.
CHAIR BUNDE inserted that he has never known insurance rates to
go down, but this bill might slow the rate of increase.
REPRESENTATIVE MEYER added that it's getting out of control
nationwide.
MR. CHUCK SPINELLI, Alaska Home Builders Association, supported
HB 151 and said the problem came from condominium construction
in the Lower 48 states where teams of attorneys sue condo
associations who in turn sue builders and do discovery for years
without ever fixing anything. The project then gets traumatized
because of the pending litigation and bankrupts the builder and
the condo association. He said his general liability insurance
is increasing from $55,000 last year to a quote of $435,000 this
year. A lot of people who are building condominiums are not
getting insurance. He thought this bill is a good first step to
having a healthy building industry.
CHAIR BUNDE closed public testimony.
SENATOR STEVENS moved to pass SCS CSHB 151(L&C) from committee
with individual recommendations and its zero fiscal note.
SENATORS STEVENS, DAVIS, FRENCH and BUNDE voted yea and it was
moved from committee.
HB 135-MARITAL & FAMILY THERAPISTS
CHAIR BUNDE announced HB 135 to be up for consideration.
REPRESENTATIVE PEGGY WILSON, sponsor, said that HB 135 is just a
simple bill. The law that established the Board of Marital and
Family Therapists has been in place for 10 years and it's time
to update the language within the statute. This bill will bring
state statutes up to the same standards as other counseling
services in the state and to the national marriage and family
therapy statutes. She explained:
Section 1 adds the Board of Marital and Family
Therapists to the list of boards that may request the
Division of Occupational Licensing to contract out for
substance abuse and treatment under licensed
therapists. It just gives more options for treatment.
Section 2 gives the board authority to order a
licensed marital and family therapist to submit to a
reasonable physical or mental examination if the board
has gotten word somewhere that there was sufficient
evidence to conclude that the therapist's physical or
mental capacity to practice safely is at issue.
Section 3 allows for individual client contacts to be
used as hours toward licensing.
Section 4 requires the therapist to communicate to a
potential victim or law enforcement officer if there
is a threat of imminent serious physical harm to an
identified victim that had been made by one of their
clients.
Section 5 imposes disciplinary sanctions in regard to
a therapist's sexual misconduct. Sexual misconduct
between client and therapist is probably the biggest
problem in any kind of therapy type situation. This
just makes sure the client is protected.
Section 7 is just disclosure information and consumer
protection.
CHAIR BUNDE referred to the provision that requires
communication about danger to a potential victim or to law
enforcement and suggested saying "and law enforcement." He asked
if that had been considered.
SENATOR FRENCH guessed that about 90% of the reports would be to
a domestic partner and that victims might not take any steps to
protect themselves for all sorts of reasons. He thought it would
be a good idea to let law enforcement know if the threat is that
serious and imminent.
REPRESENTATIVE WILSON said that section allows the therapist to
break the confidentiality agreement.
TAPE 03-31, SIDE B
SENATOR FRENCH asked how other board-controlled occupations deal
with confidentiality between the doctor and patient and threat
disclosures.
REPRESENTATIVE WILSON said she thought they do so in a similar
manner.
MS. SUSAN ARENTH commented that this issue was talked about in
another committee. She said even if a threat isn't imminent but
seems likely, she believes any therapist would inform the victim
and she didn't see any reason not to inform law enforcement.
CHAIR BUNDE guessed that would require law enforcement to use
professional judgment too.
MS. CAREN ROBINSON, Marriage and Family Therapist Association,
said that therapists are required, just like all other
professional counselors, to report child sexual abuse and this
bill would not change that at all. She explained that in some
situations, a victim who was notified may become so fearful that
she may pull out a gun and kill the person who is coming to her
house, thereby becoming the perpetrator. She felt it's in the
best interest of the therapist in the counseling session to
determine which is the right place to call. In other hearings
most therapists have said generally speaking they would call the
law enforcement agency first if they really felt someone's life
was in danger.
CHAIR BUNDE asked Ms. Robinson if she had input from people who
prosecute domestic violence cases. He added that he wanted to
give her an opportunity to investigate this question.
MS. ROBINSON responded that the legal professionals she has
spoken with said that right now therapists don't have the
ability to notify either and are quite thrilled that the
marriage and family therapists have brought this issue forward.
CHAIR BUNDE agreed and said he didn't want to destroy the good
in search of the perfect but wanted her to talk with some
prosecutors.
SENATOR STEVENS asked her to also address Section 3 on page 3,
line 7, that removes the timeframe of three-years after a
master's degree and another "and or" question where it says
"practice marital and family therapy including frequent hours of
direct contact with couples, individuals and families." He asked
if a person has to work with individuals to get a license or
work with all three types.
REPRESENTATIVE WILSON commented that sometimes three years is
not enough time to get the necessary hours. Previously, hours
couldn't be counted when individuals were counseled separate
from other family members if they were also being counseled
together.
CHAIR BUNDE said the committee would bring the bill up again
next Tuesday.
CSHB 194(L&C)-REGIONAL DEVELOPMENT ORG TAX CREDIT
CHAIR BUNDE announced CSHB 194(L&C) to be up for consideration.
REPRESENTATIVE TOM ANDERSON, sponsor, said HB 194 is the result
of a partnership between the business development community and
corporate Alaska and creates a tax credit of up to $10,000 to a
corporation that donates to an Alaska regional development
organization (ARDOR). This credit, when combined with various
existing tax credits, may not exceed $150,000 and that will not
change. This bill provides alternative recipients for donations.
There are 13 ARDORs throughout the state, the biggest being the
Anchorage Economic Development Corporation (AEDC).
REPRESENTATIVE ANDERSON said a (committee substitute) CS was
requested by the Division of Tax to clarify the definition of a
regional development organization to definitively limit the
credit to ARDORS. Another CS was introduced to remove the sunset
provision.
MR. LARRY CRAWFORD, President, Anchorage Economic Development
Corporation, supported CSHB 194(L&C). He thought it would help
AEDC build a stronger relationship with local businesses. He
noted the AEDC board passed a resolution supporting this bill as
well.
CHAIR BUNDE said he would set the bill aside until the new
information could be copied.
SB 109-MEDICAID COST CONTAINMENT & PRIORITY LIST
MR. PHELAN STRAUBE, staff to Senator Ben Stevens, prime sponsor
of SB 109, said this bill authorizes an exemption from marine
pilotage in Alaskan waters for certain foreign registered
pleasure craft. Vessels of 60 ft. or less will be exempted from
all pilotage laws. Yachts greater than 60 ft. and less than 173
ft. may be granted a waiver from pilotage laws after an
application process and review by the Board of Marine Pilots or
its designee. A fee based on the size of the vessel will be
charged for each waiver granted. A waiver for a 60 ft. boat
would cost $1,500; every additional foot up to 173 ft. would
cost $50. If a waiver is granted, upon entering pilotage waters,
a yacht would need to employ a marine pilot at the first pilot
station into the initial port of entry in each pilotage region.
The same procedure would also be followed when the vessel leaves
Alaskan waters. These vessels would also be required to work
with an agent licensed in Alaska. The legislation authorizes a
civil penalty of $10,000 vessel for non-compliance.
He told members this change was in part recommended in a
legislative budget and audit report for the renewal of the Board
of Marine Pilots. This legislation is supported by the
communities of Sitka, Ketchikan, Whittier, Juneau, Haines, and
many other chambers of commerce and economic development
organizations.
He concluded saying that this legislation would encourage the
growth of this small but growing industry, which brings in new
cash from out of state to local coastal communities. It also
adds revenue to the general fund by charging the fees to come
into our waters. The pilotage requirements promote safety,
protect the marine environment and provide a penalty for failure
to comply.
SENATOR STEVENS moved to adopt CSSB 201(L&C), version D, as the
committee's working document. There were no objections and it
was so ordered.
CAPTAIN BOB WINTER, Southeast Alaska Pilot Association,
supported SB 209 and said the Association looks forward to
working with the sponsor and staff to produce a bill that serves
the interests of all parties, including the State of Alaska.
MS. KATE TESAR, Alaska Yacht Services, said her client books
services for yachts that are traveling to Alaska. Her client's
problems served as the impetus for this legislation. She said
the new fees would bring in around $100,000.
SENATOR SEEKINS moved to pass CSSB 209(L&C), version D, with
attached fiscal notes from committee with individual
recommendations. SENATORS DAVIS, FRENCH, SEEKINS, STEVENS and
BUNDE voted yea and SB 209 passed from committee.
CSHB 194(L&C)-REGIONAL DEVELOPMENT ORG TAX CREDIT
CHAIR BUNDE announced CSHB 194(L&C) to be back before the
committee and that the committee was considering version Q.
MS. HEATHER BEATY, staff to Representative Anderson, said
Representative Anderson would be available soon.
MR. MARK GRABER, Audit Manager, Tax Division, said the amendment
adds confusion for the following reason:
The contributions contemplated under this statute do
not cover memberships and sponsorships; they would be
contributions that would provide a direct business
benefit to the corporation. Alaska adopted the
Internal Revenue Code and in that is section 170 that
allows the deduction to a charitable organization.
ARDORS are not charitable organizations, therefore we
don't need a reference to section 170 and a deduction
in any event would not be allowed for a contribution
because the contribution would provide no direct
benefit to the corporation and therefore would not be
an ordinary and necessary business expense.
CHAIR BUNDE said he was confused and that he thought Mr. Graber
asked for the amendment.
MR. GRABER said that was correct and that the division doesn't
need the current section (b)(2) in the previous version. The
amendment is to delete lines 28 and 29.
SENATOR DAVIS moved to adopt amendment 1. There were no
objections and it was adopted.
MR. JAMES ARMSTRONG, Municipality of Anchorage, supported HB
194.
SENATOR SEEKINS said he thought the state is funding an ARDOR
when a person decides to contribute to an ARDOR instead of
paying a $10,000 tax bill, because that person gets a credit for
it.
CHAIR BUNDE said he thought a zero fiscal note was submitted
because existing legislation allows that to occur. Any time a
tax credit is allowed, it costs the state something.
SENATOR SEEKINS said he wanted to clarify that regional
development corporations are state funded organizations with no
state control.
MR. ARMSTRONG said he could see his point.
MR. EDWARD LAMB, CEO, Alaska Regional Hospital, said the state
needs to do everything it can to encourage organizations to
contribute to the ARDORS whose efforts go out to bring new
businesses into the state.
SENATOR SEEKINS moved to pass SCS CSHB 194(L&C), version Q, from
committee with attached fiscal notes and individual
recommendations. SENATORS DAVIS, STEVENS, SEEKINS, FRENCH and
BUNDE voted yea and the motion carried.
CHAIR BUNDE adjourned the meeting at 3:10 p.m.
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