02/01/2007 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB41 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 24 | TELECONFERENCED | |
| += | SB 39 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 1, 2007
2:03 p.m.
MEMBERS PRESENT
Senator Johnny Ellis, Chair
Senator Gary Stevens
Senator Con Bunde
Senator Bettye Davis
Senator Lyman Hoffman
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 24
"An Act relating to the amount of the state's business license
fee."
SCHEDULED BUT NOT HEARD
SENATE BILL NO. 39
"An Act relating to the amount of the state's business license
fee."
MOVED CSSB 39(L&C) OUT OF COMMITTEE
SENATE BILL NO. 41
"An Act repealing the fee imposed on the sale of studded tires."
MOVED CSSB 41(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 24
SHORT TITLE: BUSINESS LICENSE FEE
SPONSOR(s): SENATOR(s) WILKEN
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) L&C, FIN
01/25/07 (S) L&C AT 1:30 PM BELTZ 211
01/25/07 (S) Heard & Held
01/25/07 (S) MINUTE(L&C)
01/30/07 (S) L&C AT 1:30 PM BELTZ 211
01/30/07 (S) -- Rescheduled to 02/01/07 --
02/01/07 (S) L&C AT 2:00 PM BELTZ 211
BILL: SB 39
SHORT TITLE: BUSINESS LICENSE FEE
SPONSOR(s): SENATOR(s) WIELECHOWSKI
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) L&C, FIN
01/25/07 (S) L&C AT 1:30 PM BELTZ 211
01/25/07 (S) Heard & Held
01/25/07 (S) MINUTE(L&C)
01/30/07 (S) L&C AT 1:30 PM BELTZ 211
01/30/07 (S) -- Rescheduled to 02/01/07 --
02/01/07 (S) L&C AT 2:00 PM BELTZ 211
BILL: SB 41
SHORT TITLE: REPEAL STUDDED TIRE FEE
SPONSOR(s): SENATOR(s) WIELECHOWSKI
01/16/07 (S) PREFILE RELEASED 1/5/07
01/16/07 (S) READ THE FIRST TIME - REFERRALS
01/16/07 (S) L&C, TRA, FIN
01/25/07 (S) L&C AT 1:30 PM BELTZ 211
01/25/07 (S) Heard & Held
01/25/07 (S) MINUTE(L&C)
01/30/07 (S) L&C AT 1:30 PM BELTZ 211
01/30/07 (S) -- Rescheduled to 02/01/07 --
02/01/07 (S) L&C AT 2:00 PM BELTZ 211
WITNESS REGISTER
DANA OWEN
Staff to Senator Ellis
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Explained CSSB 39(L&C) and SB 41.
JOHN BITNEY, Legislative Liaison
Office of the Governor
Juneau AK
POSITION STATEMENT: Supported CSSB 39(L&C) and CSSB 41(L&C).
SENATOR WIELECHOWSKI
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of SB 41.
ACTION NARRATIVE
CHAIR JOHNNY ELLIS called the Senate Labor and Commerce Standing
Committee meeting to order at 2:03:14 PM. All members were
present.
SB 39-BUSINESS LICENSE FEE
2:03:59 PM
CHAIR ELLIS announced SB 39 to be up for consideration. He said
a new committee substitute - CSSB 39(L&C) 25-LS0351\K, addresses
concerns that Legal Services Attorney, Terry Bannister, had
regarding the version 25-LS0351\E and Senator Bunde's amendment.
DANA OWEN, staff to Senator Ellis, explained that version K
addressed Ms. Bannister's concern that the intent was to have
$300 be the sole fine. It does this by removing the other
penalties. It includes Senator Bunde's amendment regarding
enforcement. He said this version should have no additional
fiscal impact, according to the Administration.
CHAIR ELLIS asked him to explain Ms. Bannister's concern more
fully.
MR. OWEN explained that several other provisions in law also
applied to penalties for not having a business license along
with Senator Bunde's amendment, which he understood was intended
to have the $300 fine be the sole penalty for not having a
business license. So the first five sections of version K
address each of the sections of statute where there are other
penalties for not having a business license and removes them.
2:06:34 PM
SENATOR BUNDE said his amendment was at the request of the
Administration and the department that felt this would be more
effective. "So whatever they're in agreement with, I'm certainly
in agreement with."
SENATOR WIELECHOWSKI had no objections.
SENATOR STEVENS moved to adopt CSSB 39(L&C) version K as the
working draft with individual recommendations. There were no
objections and it was so ordered.
2:07:54 PM
SENATOR WIELECHOWSKI didn't have any comments.
2:08:50 PM
CHAIR ELLIS related that Senator Wilken wrote a memo asking that
his SB 24 not be moved forward in lieu of SB 39 - focusing on
getting the job done, not who did it. However, he would continue
to be a co-sponsor on SB 39.
2:09:16 PM
JOHN BITNEY, Legislative Liaison, Office of the Governor, stated
that if the bill gets passed, the budget would be built around
an effective date of July 1, 2008.
2:10:14 PM
SENATOR DAVIS moved to pass CSSB 39(L&C) version K out of
committee with individual recommendations and attached fiscal
notes.
2:10:48 PM
SENATOR BUNDE objected and explained he did not believe that the
current cost of business licenses caused their numbers to go
down. Any cost of business is passed on to the customer or the
business goes out of business. Also he said that the one
investigator the department has is swamped and he thought it
would be an advantage to hire another one to enforce compliance.
Reducing the fee would create a loss of revenue to the state
which could have a budget deficit as early as next year. It is
not good public policy to change the fee every time the budget
goes down.
2:13:29 PM
CHAIR ELLIS said he supported reducing the fee and said it sets
a good tone in the state.
2:13:46 PM
SENATOR STEVENS expressed that the cost causer should be the
cost payer and the program now costs less with the efficiencies
brought with technology.
A roll call vote was taken. Senators Davis, Stevens, Hoffman and
Ellis voted yea; Senator Bunde voted nay; and CSSB 39(L&C) moved
from committee.
SB 41-REPEAL STUDDED TIRE FEE
2:15:13 PM
CHAIR ELLIS announced SB 41 to be up for consideration.
SENATOR WIELECHOWSKI, sponsor of SB 41, explained that the tire
tax generated about $436,000 in 2005 and $446,000 in 2006. A
final report commissioned by the legislature came out after the
bill had been adopted called "The Socio-economic Effects of
Studded Tire Use in Alaska" and found an overall positive impact
on the Alaskan economy from the use of studded tires. Many
studies from all over the world find the use of studded tires
has an overall positive impact because they prevent accidents.
They have better braking, traction, and acceleration. He said a
professor from the University of Alaska testified against the
previous bill when it was passed. He also said a Department of
Transportation and Public Facilities (DOTPF) report in 1996
found that prohibiting studs would result in a significant
increase in accidents.
2:18:30 PM
SENATOR WIELECHOWSKI said discouraging the use of studded tires
has another impact he found in talking to shop owners who said
it was difficult for them to account for all their tires under
this tax program. Some were fined because they couldn't figure
out how to pay it.
CHAIR ELLIS asked if he worked with the administration on its
idea of deleting the program entirely.
SENATOR WIELECHOWSKI responded that he had no objection to
deleting the program entirely.
DANA OWEN, staff to Senator Ellis, explained that the CS is
identical to the governor's bill and removes all tire fees.
JOHN BITNEY, Legislative Liaison, Office of the Governor, said
the governor wants the tax repealed.
2:22:35 PM
SENATOR STEVENS moved to adopt CSSB 41(L&C), version 25-
LS0355\C. There being no objection, the motion carried.
CHAIR ELLIS noted that the Administration has accounted for the
loss of revenue in its FY'08 budget.
2:23:09 PM
SENATOR STEVENS moved to pass CSSB 41(L&C), version C, from
committee with individual recommendations and attached fiscal
note.
SENATOR BUNDE objected citing there is no free lunch and the
user pay concept as reasons. He also pointed out that studs are
effective only a small part of the year, but the rest of the
time they cause wear and tear.
2:27:08 PM
SENATOR HOFFMAN said that Senator Bunde has one false assumption
and that is that all roads in Alaska are paved. He named several
villages that have dirt roads - New Stuyahok and Ekwok. The tax
is applied to many individuals in communities that are not
causing any wear and tear.
SENATOR BUNDE said that those roads are all maintained by the
state and they should help pay for the costs they generate. This
bill removes the whole tire tax program, not just the studded
tax.
2:29:02 PM
A roll call vote was taken. Senators Hoffman, Stevens, Davis,
and Ellis voted yea; and Senator Bunde voted nay. So, CSSB
41(L&C) moved from committee.
There being no further business to come before the committee,
CHAIR ELLIS adjourned the meeting at 2:29:33 PM.
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