03/03/2015 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB15 | |
| SB47 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 39 | TELECONFERENCED | |
| += | SB 15 | TELECONFERENCED | |
| += | SB 47 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 3, 2015
1:30 p.m.
MEMBERS PRESENT
Senator Cathy Giessel, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
MEMBERS ABSENT
Senator Mia Costello, Chair
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 39
"An Act repealing the film production tax credit; providing for
an effective date by repealing the effective dates of secs. 31 -
33, ch. 51, SLA 2012; and providing for an effective date."
- HEARD & HELD
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 15
"An Act relating to the tax on policy year premiums for life
insurance policies."
- MOVED SSSB 15 OUT OF COMMITTEE
SENATE BILL NO. 47
"An Act relating to exemptions for cash surrender values,
accrued dividends, and loan values of life insurance and annuity
contracts."
- MOVED SB 47 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 39
SHORT TITLE: REPEAL FILM PRODUCTION TAX CREDIT
SPONSOR(s): SENATOR(s) STOLTZE
02/04/15 (S) READ THE FIRST TIME - REFERRALS
02/04/15 (S) L&C, FIN
02/19/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/19/15 (S) Heard & Held
02/19/15 (S) MINUTE(L&C)
02/24/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/24/15 (S) Heard & Held
02/24/15 (S) MINUTE(L&C)
02/26/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/26/15 (S) Heard & Held
02/26/15 (S) MINUTE(L&C)
03/03/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 15
SHORT TITLE: LIFE INSURANCE POLICY PREMIUM TAX
SPONSOR(s): SENATOR(s) COGHILL
01/21/15 (S) PREFILE RELEASED 1/16/15
01/21/15 (S) READ THE FIRST TIME - REFERRALS
01/21/15 (S) L&C, FIN
02/04/15 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/04/15 (S) L&C, FIN
02/26/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/26/15 (S) Heard & Held
02/26/15 (S) MINUTE(L&C)
03/03/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 47
SHORT TITLE: LIFE INSURANCE/ANNUITY EXEMPTIONS
SPONSOR(s): SENATOR(s) COGHILL
02/11/15 (S) READ THE FIRST TIME - REFERRALS
02/11/15 (S) L&C, JUD
02/26/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/26/15 (S) Heard & Held
02/26/15 (S) MINUTE(L&C)
03/03/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
ROBERT FORGIT, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
RONAN NAGLE, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
MICHAEL BURNS, representing himself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
LISA KRISTY, representing herself
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
CODY LAWHORN, representing himself
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
BRAD SWENSON, Co-owner
Gold Ring Group
Wasilla Alaska
POSITION STATEMENT: Testified in opposition to SB 39.
GERMAN BAQUERO, Intern
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented information on SSSB 15 and SB 47
on behalf of the sponsor.
RYNNIEVA MOSS, Staff
Senator John Coghill,
POSITION STATEMENT: Presented information on SSSB 15 on behalf
of the sponsor.
ACTION NARRATIVE
1:30:47 PM
VICE CHAIR GIESSEL called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at the call to
order were Senators Stevens, Meyer, and Vice Chair Giessel.
SB 39-REPEAL FILM PRODUCTION TAX CREDIT
1:31:16 PM
VICE CHAIR GIESSEL announced the consideration of SB 39. "An Act
repealing the film production tax credit; providing for an
effective date by repealing the effective dates of secs. 31 -
33, ch. 51, SLA 2012; and providing for an effective date." She
stated that this is the fourth hearing and public testimony will
be taken.
1:32:17 PM
ROBERT FORGIT, representing himself, Anchorage, Alaska,
testified in opposition to SB 39. He said he has been a
professional actor since 1987. He mentioned the state's grim
financial situation and the indefinite suspension of the film
tax program and questioned eliminating it altogether. He said
the state relies on one economic factor for financial stability
and it seems logical to look at ways to diversify. He warned
that the film industry is moving elsewhere not because the
incentive program has been suspended, but because the state puts
the fledgling program on the chopping block every year. This
translates to dwindling investments and partnerships. If the
suspension is truly a financial decision, he suggested exploring
other ways to enhance revenue for the state. He pointed out that
a suspended program costs nothing and buys time, but an ended
program costs jobs. It stops a revenue stream into the state and
sends a message that Alaska is not open for business.
MR. FORGIT called on his Coast Guard background to draw an
analogy. You don't jettison the lifeboats on a sinking ship in
the belief that getting rid of the excess weight will keep you
afloat. Rather, you focus on those lifeboats to save the people
you represent. Alaska's film industry is a lifeboat, he said.
Don't jettison it.
VICE CHAIR GIESSEL invited the testifiers to submit written
testimony to Senator Costello's office.
1:35:24 PM
RONAN NAGLE, representing himself, Fairbanks, Alaska, testified
in opposition to SB 39. He related that he is a producer who
works on television productions that benefit from the tax
incentive program. The largest is called Ultimate Survivor
Alaska that in the last three years has spent millions of
dollars to hire Alaskans and vendors. He said that when he gets
paid he spends his money locally and he steers production money
to local businesses whenever possible.
1:37:32 PM
MICHAEL BURNS, representing himself, Wasilla, Alaska, testified
in opposition to SB 39. He shared an experience from 2012 when
he and another independent filmmaker were working on a feature
film to show how it benefited everyone involved. The tax
incentive program made this possible. He said his goal is to
make films in Alaska using local talent.
1:40:09 PM
LISA KRISTY, representing herself, Wasilla, Alaska, testified in
opposition to SB 39. She said she's a teamster who believes the
economy in Alaska should be diversified. The tax incentive
program provides this opportunity. To eliminated the program
altogether destroys what has been built in Alaska already.
1:42:04 PM
At ease
1:43:38 PM
VICE CHAIR GIESSEL reconvened the meeting.
1:44:06 PM
CODY LAWHORN, representing himself, Anchorage, Alaska, testified
in opposition to SB 39. He is a lifelong Alaskan who attended
school out of state and returned home to begin his career in
Alaska's burgeoning film industry. During the past year he has
been writing a scripted drama for a television series that he
plans to write, direct, and produce in Alaska. He's been working
hard to cultivate relationships with local companies and plans
to pitch his show to Net Flicks very soon. He believes the
current fiscal crisis increases the need to create the show as
soon as possible.
1:46:01 PM
BRAD SWENSON, Co-owner, Gold Ring Group, Wasilla Alaska,
testified in opposition to SB 39. He is currently in
Minneapolis, Minnesota pursuing financing for a project, part of
which will be shot in Alaska. When the story broke about the
Alaska Film Office closing, his partner in L.A. called and told
him to revise the budget to remove Alaska. He said the film
industry is about business and the films will go to the best
environment which will be based on the tax incentives. The film
that is based in Australia and Alaska will probably be shot in
New Mexico because of tax credits, he said.
MR. SWENSON suggested all Alaskans consider that the oil
industry has dominated the economy of Alaska for far too long.
It's important to stand on other industries and the film
industry is a large part of that picture. He concluded that he
does not support SB 39.
1:47:47 PM
VICE CHAIR GIESSEL closed public testimony and held SB 39 in
committee for further consideration.
1:48:21 PM
At ease
SB 15-LIFE INSURANCE POLICY PREMIUM TAX
1:50:18 PM
VICE CHAIR GIESSEL reconvened the hearing and announced the
consideration of SSSB 15. "An Act relating to the tax on policy
year premiums for life insurance policies."
1:50:52 PM
GERMAN BAQUERO, Intern, Senator John Coghill, sponsor of SB 15,
summarized that this legislation would reduce the tax applied to
life insurance premiums that exceed $100,000 from 0.10 percent
to 0.08 percent. This change applies to premiums that begin
after December 31, 2015. Responding to a question from the
Chair, he confirmed that the fiscal note is zero.
SENATOR STEVENS asked if the committee could expect to see him
again if South Dakota lowers its rate.
MR. BAQUERO replied he wasn't sure.
RYNNIEVA MOSS, Staff, Senator John Coghill, advised that it is a
policy call the sponsor would consider. She noted that his
office is working on several bills that will make Alaska more
attractive to the insurance industry.
SENATOR STEVENS asked if this change makes the tax rates equal
in Alaska and South Dakota.
MS. MOSS said yes; the hope is to regain lost life insurance
business and perhaps add some.
1:54:02 PM
VICE CHAIR GIESSEL found no public testimony and closed it.
1:54:25 PM
SENATOR MEYER moved to report SB 15 from committee with
individual recommendations and attached fiscal note(s).
VICE CHAIR GIESSEL announced that without objection SSSB 15,
labeled 29-LS0034\W, is reported from the Senate Labor and
Commerce Standing Committee.
1:54:58 PM
At ease
SB 47-LIFE INSURANCE/ANNUITY EXEMPTIONS
1:56:00 PM
VICE CHAIR GIESSEL reconvened the meeting and announced the
consideration of SB 47. "An Act relating to exemptions for cash
surrender values, accrued dividends, and loan values of life
insurance and annuity contracts."
1:56:25 PM
GERMAN BAQUERO, Intern, Senator John Coghill, sponsor of SB 47,
reminded the committee that this legislation removes the
$500,000 limit on the exemption from attachment or garnishment
for life insurance and annuity contracts under AS 09.38.025(a).
SENATOR MEYER asked what implication this has for someone trying
to avoid repaying their debt.
MR. BAQUERO replied this legislation does nothing to prevent
creditors from obtaining restitution. It simply removes life
insurance from the list of things that are can be garnished. He
noted that AS 09.30.065 lists property that can be garnished by
a creditor.
1:59:23 PM
VICE CHAIR GIESSEL found no public testimony and closed it.
1:59:45 PM
SENATOR MEYER motioned to report SB 47 from committee with
individual recommendations and attached zero fiscal note.
VICE CHAIR GIESSEL announced that without objection SB 47,
labeled LS-290336\A, is reported from the Senate Labor and
Commerce Standing Committee.
2:00:26 PM
There being no further business to come before the committee,
Vice Chair Giessel adjourned the Senate Labor and Commerce
Standing Committee meeting at 2:00 p.m.
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