04/14/2018 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB301 | |
| HB170 | |
| HB142 | |
| SJR7 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 7 | TELECONFERENCED | |
| += | HB 170 | TELECONFERENCED | |
| += | HB 142 | TELECONFERENCED | |
| += | HB 301 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 14, 2018
3:41 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Kevin Meyer, Vice Chair
Senator Berta Gardner
Senator Gary Stevens
Senator Peter Micciche
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 301(FIN)
"An Act relating to the renewal of a license involving alcoholic
beverages; relating to the renewal and transfer of ownership of
a beverage dispensary license or restaurant or eating place
license; and relating to issuance of an outdoor recreation lodge
license in a local option area."
- MOVED CSHB 301(FIN) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 170(JUD)
"An Act relating to securities, registration, exempt securities,
exempt transactions, broker-dealers, agents, investment advice,
investment advisers, investment adviser representatives, federal
covered securities, federal covered investment advisers,
viatical settlement interests, small intrastate security
offerings, Canadian broker-dealers, and Canadian agents;
relating to protecting older and vulnerable adults from
financial exploitation; relating to administrative, civil, and
criminal enforcement provisions, including restitution and civil
penalties for violations; relating to an investor training fund;
establishing increased civil penalties for harming older persons
and vulnerable adults; relating to corporations organized under
the Alaska Native Claims Settlement Act; amending Rules 4, 5,
54, 65, and 90, Alaska Rules of Civil Procedure, and Rule 602,
Alaska Rules of Appellate Procedure; and providing for an
effective date."
- MOVED SCS CSHB 170(L&C) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 142(FIN)
"An Act relating to unemployment insurance benefits; increasing
the maximum weekly unemployment insurance benefit rate; and
providing for an effective date."
- MOVED SCS CSHB 142(L&C) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 7
Proposing an amendment to the Constitution of the State of
Alaska prohibiting the imposition of a tax, the increase of an
existing tax, or state retail sales taxation without the
approval of the voters of the state.
- MOVED CSSJR 7(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 301
SHORT TITLE: ALCOHOL LICENSES:BEV DISP/RESTAUR./LODGE
SPONSOR(s): WOOL
01/24/18 (H) READ THE FIRST TIME - REFERRALS
01/24/18 (H) L&C, FIN
01/31/18 (H) L&C AT 3:15 PM BARNES 124
01/31/18 (H) Heard & Held
01/31/18 (H) MINUTE(L&C)
02/14/18 (H) L&C AT 3:15 PM BARNES 124
02/14/18 (H) Moved CSHB 301(L&C) Out of Committee
02/14/18 (H) MINUTE(L&C)
02/16/18 (H) L&C RPT CS(L&C) NT 7DP
02/16/18 (H) DP: STUTES, SULLIVAN-LEONARD, WOOL,
JOSEPHSON, BIRCH, KNOPP, KITO
02/20/18 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/20/18 (H) Heard & Held
02/20/18 (H) MINUTE(FIN)
03/01/18 (H) FIN AT 9:00 AM ADAMS ROOM 519
03/01/18 (H) Moved CSHB 301(FIN) Out of Committee
03/01/18 (H) MINUTE(FIN)
03/02/18 (H) FIN RPT CS(FIN) NT 6DP 1NR 3AM
03/02/18 (H) DP: GARA, THOMPSON, ORTIZ, GRENN,
SEATON, FOSTER
03/02/18 (H) NR: PRUITT
03/02/18 (H) AM: WILSON, KAWASAKI, TILTON
03/12/18 (H) TRANSMITTED TO (S)
03/12/18 (H) VERSION: CSHB 301(FIN)
03/14/18 (S) READ THE FIRST TIME - REFERRALS
03/14/18 (S) L&C
04/10/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/10/18 (S) Heard & Held
04/10/18 (S) MINUTE(L&C)
04/14/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 170
SHORT TITLE: AK SECURITIES ACT; PENALTIES; CRT. RULES
SPONSOR(s): LABOR & COMMERCE
03/10/17 (H) READ THE FIRST TIME - REFERRALS
03/10/17 (H) L&C, JUD
03/24/17 (H) L&C AT 3:15 PM BARNES 124
03/24/17 (H) Heard & Held
03/24/17 (H) MINUTE(L&C)
03/27/17 (H) L&C AT 3:15 PM BARNES 124
03/27/17 (H) Moved HB 170 Out of Committee
03/27/17 (H) MINUTE(L&C)
03/29/17 (H) L&C RPT 6DP 1NR
03/29/17 (H) DP: SULLIVAN-LEONARD, STUTES, WOOL,
JOSEPHSON, BIRCH, KITO
03/29/17 (H) NR: KNOPP
04/07/17 (H) JUD AT 1:00 PM GRUENBERG 120
04/07/17 (H) Heard & Held
04/07/17 (H) MINUTE(JUD)
04/11/17 (H) JUD AT 5:30 PM GRUENBERG 120
04/11/17 (H) Heard & Held
04/11/17 (H) MINUTE(JUD)
04/12/17 (H) JUD AT 1:00 PM GRUENBERG 120
04/12/17 (H) Moved CSHB 170(JUD) Out of Committee
04/12/17 (H) MINUTE(JUD)
04/13/17 (H) JUD RPT CS(JUD) NT 1DP 4NR
04/13/17 (H) DP: CLAMAN
04/13/17 (H) NR: EASTMAN, KOPP, KREISS-TOMKINS,
FANSLER
04/17/17 (H) TRANSMITTED TO (S)
04/17/17 (H) VERSION: CSHB 170(JUD)
05/01/17 (S) READ THE FIRST TIME - REFERRALS
05/01/17 (S) L&C, JUD
03/19/18 (S) L&C AT 6:00 PM BELTZ 105 (TSBldg)
03/19/18 (S) Heard & Held
03/19/18 (S) MINUTE(L&C)
04/02/18 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
04/02/18 (S) Scheduled but Not Heard
04/14/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 142
SHORT TITLE: UNEMPLOYMENT INSURANCE BENEFITS
SPONSOR(s): TUCK
02/24/17 (H) READ THE FIRST TIME - REFERRALS
02/24/17 (H) L&C, FIN
03/29/17 (H) L&C AT 3:15 PM BARNES 124
03/29/17 (H) Heard & Held
03/29/17 (H) MINUTE(L&C)
04/12/17 (H) L&C AT 3:15 PM BARNES 124
04/12/17 (H) Moved CSHB 142(L&C) Out of Committee
04/12/17 (H) MINUTE(L&C)
04/13/17 (H) L&C RPT CS(L&C) 3DP 4NR
04/13/17 (H) DP: STUTES, JOSEPHSON, KITO
04/13/17 (H) NR: SULLIVAN-LEONARD, WOOL, BIRCH,
KNOPP
05/09/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
05/09/17 (H) Heard & Held
05/09/17 (H) MINUTE(FIN)
02/02/18 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/02/18 (H) Heard & Held
02/02/18 (H) MINUTE(FIN)
02/08/18 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/08/18 (H) Moved CSHB 142(FIN) Out of Committee
02/08/18 (H) MINUTE(FIN)
02/09/18 (H) FIN RPT CS(FIN) 5DP 4NR
02/09/18 (H) DP: GARA, KAWASAKI, GUTTENBERG, SEATON,
FOSTER
02/09/18 (H) NR: WILSON, THOMPSON, GRENN, TILTON
02/19/18 (H) RETURNED TO RLS COMMITTEE
03/14/18 (H) TRANSMITTED TO (S)
03/14/18 (H) VERSION: CSHB 142(FIN)
03/16/18 (S) READ THE FIRST TIME - REFERRALS
03/16/18 (S) L&C, FIN
04/10/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/10/18 (S) Heard & Held
04/10/18 (S) MINUTE(L&C)
04/14/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SJR 7
SHORT TITLE: CONST. AM: VOTER APPROVAL FOR NEW TAXES
SPONSOR(s): SENATOR(s) MEYER
04/06/17 (S) READ THE FIRST TIME - REFERRALS
04/06/17 (S) L&C, JUD, FIN
02/27/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/27/18 (S) Heard & Held
02/27/18 (S) MINUTE(L&C)
04/14/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
ASHLEY STRAUCH, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 301.
CRYSTAL KOENEMAN, Staff
Representative Sam Kito III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the changes between version O and
version R of HB 170.
REPRESENTATIVE KITO III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 170 as Chair of the House Labor
and Commerce Committee, sponsor of the legislation.
NATASHA MCCLANAHAN, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an explanation of changes for HB
142.
AL TAMAGNI Sr., Chair
National Federation of Independent Businesses, Alaska Chapter
Anchorage, Alaska
POSITION STATEMENT: Stated support for the proposed changes in
HB 142, version T.
HEIDI DRYGAS, Commissioner
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Testified that she appreciates that the
committee recognizes that the current maximum weekly UI benefit
amount is insufficient, but the $64 increase reflected in the CS
is woefully inadequate, particularly when there is no provision
for upward adjustment.
LENNON WELLER, Economist and Actuary for the Unemployment
Insurance System
Research and Analysis Section
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided information
related to HB 142.
KENDRA KLOSTER, Staff
Representative Chris Tuck
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, stated agreement
with Commissioner Drygas's assessment of the CS for HB 142.
CHRISTINE MARASIGAN, Staff
Senator Kevin Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, reviewed the
changes between version A and version D of SJR 7.
ACTION NARRATIVE
3:41:10 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 3:41 p.m. Present at the call to
order were Senators Meyer, Gardner, and Chair Costello. Senators
Stevens and Miccichi arrived thereafter.
HB 301-ALCOHOL LICENSES:BEV DISP/RESTAUR./LODGE
3:42:23 PM
CHAIR COSTELLO announced the consideration of HB 301. She asked
Ms. Strauch if she had any final comments before the committee
moved the bill.
3:42:39 PM
ASHLEY STRAUCH, Staff, Representative Adam Wool, Alaska State
Legislature, Juneau, Alaska, sponsor of HB 301, said she was
available to answer questions.
CHAIR COSTELLO reminded the committee that this was "An Act
relating to the renewal of a license involving alcoholic
beverages; relating to the renewal and transfer of ownership of
a beverage dispensary license or restaurant or eating place
license; and relating to issuance of an outdoor recreation lodge
license in a local option area."
3:43:26 PM
SENATOR MEYER asked if the bill would affect the Title 4 rewrite
legislation.
MS. STRAUCH said not to her knowledge. HB 301 is a
grandfathering bill to allow 34 specific licensees to continue
to operate.
3:44:09 PM
SENATOR MEYER moved to report HB 301, version L, from committee
with individual recommendations and attached fiscal note(s).
3:44:27 PM
CHAIR COSTELLO announced that without objection, CSHB 301(FIN)
moved from the Senate Labor and Commerce Standing Committee.
3:44:35 PM
At ease
HB 170-AK SECURITIES ACT; PENALTIES; CRT. RULES
3:46:03 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 170, related to the Alaska Securities Act.
She requested a motion to adopt the proposed committee
substitute (CS).
3:46:22 PM
SENATOR MEYER moved to adopt the work draft Senate CS for CSHB
170, labeled 30-LS0333\R, as the working document.
CHAIR COSTELLO objected for an explanation of changes.
3:46:43 PM
CRYSTAL KOENEMAN, Staff, Representative Sam Kito III, Alaska
State Legislature, Juneau, Alaska, reviewed the following
changes from version O to version R of HB 170:
• Page 15, line 6 A definition for "person"
(located in AS 45.56.900) was added to AS
45.55.990 for clarity purposes.
• Page 48, lines 17-19 Sec. 45.56.420(c)(3) has
been rewritten for clarification that the
provision references rules adopted by the United
States Securities and Exchange Commission under
the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
• Page 94 State securities laws are intricately
related to federal laws on securities but making
provisions of the bill subject to the adoption of
future amendments to the federal statutes raised
the issue of improper delegation of legislative
authority to the federal government. This version
removes language "or as later amended" in Sec.
45.56.730.
MS. KOENEMAN advised that the foregoing changes address the
issues raised during the last hearing.
CHAIR COSTELLO noted who was available to answer questions. She
asked the sponsor if he had any final comments.
3:48:41 PM
REPRESENTATIVE KITO III, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 170, said the department brought this
matter to his attention as the Chair of the House Labor and
Commerce Committee. He noted that a lot of work was done on the
bill last year and that he appreciated the changes proposed in
the committee substitute to provide further clarification. He
opined that it was important to update Alaska's securities law
st
to reflect the 21 century.
CHAIR COSTELLO agreed with his comments.
SENATOR MEYER observed that changes in the Senate CS made a good
bill even better.
3:49:34 PM
SENATOR MEYER moved to report the Senate CS for CSHB 170(L&C),
version R, from committee with individual recommendations and
attached fiscal note(s).
3:49:59 PM
CHAIR COSTELLO removed her objection and announced that without
objection, SCS CSHB 170(L&C) moved from the Senate Labor and
Commerce Standing Committee.
3:50:18 PM
At ease
HB 142-UNEMPLOYMENT INSURANCE BENEFITS
4:04:11 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 142 relating to unemployment insurance
benefits. She requested a motion to adopt the proposed committee
substitute (CS).
4:04:38 PM
SENATOR MEYER moved to adopt the work draft Senate CS for CSHB
142, labeled 30-LS0530\T, as the working document.
4:04:52 PM
SENATOR GARDNER objected.
CHAIR COSTELLO noted who was available to answer questions, and
asked Ms. McClanahan to go through the explanation of changes.
4:05:39 PM
NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, stated that she would introduce the
CS and then walk through the explanation of changes document.
She explained that the CS for HB 142 increases the current
maximum weekly benefit from $370 to $434. It also raises the
total gross income an individual must earn over two calendar
quarters of the base period from $2,500 to $3,000. These changes
strike a balance in providing additional benefits to the
unemployed while recognizing the impacts to the economy when
businesses face higher taxes.
MS. MCCLANAHAN paraphrased the following explanation of changes
document for HB 142, version R to version T:
Page 1, line 5 & Page 2, line 4
Changes the base required for eligibility to $3,000
from $2,500 for the base period covered by this
chapter. As the benefit is increased, the base for
eligibility is also increased to offer balance to
employees and employers who are the premium payers.
Page 8, lines 8 & 9
Changes the increase in the maximum qualifying wage
scale to $50,000. This allows for an increase to those
unemployed who qualify for benefits while lessening
the fiscal impact to employees and employers. Alaska
would move to the top half of states' maximum
benefits.
Version T removes Section 2 of version R regarding the
automatic calculation and administration of yearly
increases to the state's maximum weekly benefit
amount. This preserves the Legislature's authority to
examine increases.
4:07:21 PM
SENATOR GARDNER removed her objection.
CHAIR COSTELLO found no further objection and version T was
adopted. She opened public testimony on version T of HB 142.
4:08:06 PM
AL TAMAGNI Sr., Chair, Alaska Chapter of the National Federation
of Independent Businesses stated support for the proposed
changes appearing in version T of HB 142.
SENATOR MICCICHE asked if he was stating support for the changes
or the bill itself.
MR. TAMAGNI clarified that NFIB supports the Senate CS for HB
142, version T.
4:10:37 PM
HEIDI DRYGAS, Commissioner, Department of Labor and Workforce
Development, Juneau, Alaska, said she appreciates that the
committee recognizes that the current maximum weekly benefit
amount is insufficient, but the $64 increase reflected in the CS
is woefully inadequate, particularly when there is no provision
for upward adjustment. It means that Alaska will go from 52nd in
the nation on the wage replacement ratio to 49th. This is the
first increase in 10 years and it could be another 10-12 years
before the legislature addresses this issue again. Further,
increasing the minimum amount of the base year wages from $2,500
to $3,000 basically means that 100 Alaskans who would have
received a maximum weekly benefit of $56, will now get nothing.
She highlighted that the department's economist calculated that
the latter change wouldn't result in much savings to the trust
fund.
4:12:34 PM
SENATOR MEYER asked about the current status of the trust fund.
COMMISSIONER DRYGAS deferred the question to Mr. Weller.
SENATOR MEYER asked, based on the CS, how much more an employee
who makes $100,000 a year will have withdrawn from their check
each month.
COMMISSIONER DRYGAS deferred the question to Mr. Weller.
SENATOR MEYER said he'd be concerned if employees take a big hit
each month.
4:14:15 PM
LENNON WELLER, Economist and Actuary for the Unemployment
Insurance System, Research and Analysis Section, Department of
Labor and Workforce Development (DOLWD), Juneau, Alaska, advised
that the fund was solvent. At the end of February the trust fund
had a balance of $442.7 million. That equates to a 3.64 percent
reserve ratio. He reminded members that the goal was to have
between 3 percent and 3.3 percent of wages in reserve. He opined
that the current balance was sufficient to cover the array of
potential costs that the system may face.
SENATOR MEYER asked how the change proposed in the CS impacts
the trust fund.
MR. WELLER explained that changing the maximum weekly benefit
from $370 to $434 will not change employer and employee costs
for the next two years. In 2021, an employer will pay a maximum
additional $52 per employee making at or above the taxable wage
base. This is reduced to $47 in 2022 and increases to a $128
maximum difference in 2023.
SENATOR MEYER asked if that was per month.
MR. WELLER clarified it would be an annual difference. He
continued saying that the maximum difference between their base
line projection with this change is about $116 per employee
making at or above the taxable wage base for the average rate
tax class, which is classes 10 and 11.
SENATOR MEYER asked the additional amount an employee making
$100,000 in 2021 would pay.
MR. WELLER explained that wages are only taxed up to the taxable
wage base so the foregoing is the maximum they would pay for the
average tax class.
4:18:24 PM
COMMISSIONER DRYGAS added that Alaska's Unemployment Insurance
(UI) Trust Fund has been healthy since it was created. The way
the rates are calculated and solvency is determined has been
used as a model by other states. "It is a very well operating
trust fund."
SENATOR MEYER asked if in her opening comments she said that the
CS may jeopardize the health of the trust fund.
COMMISSIONER DRYGAS replied she did not say that. The trust fund
will remain healthy if the maximum weekly benefit is either $434
or $510.
4:19:42 PM
SENATOR MICCICHE calculated that the annual wages in Alaska are
somewhere around $12.159 billion if the $442.7 million in the UI
fund represents 3.641 percent of wages.
MR. WELLER agreed.
SENATOR MICCICHE asked if funding to 3 percent to 3.3 percent
was based on a national model.
MR. WELLER said a 3 percent to 3.3 percent reserve ratio was
determined to be adequate based on Alaska's history with
unemployment insurance.
He explained that the federal Department of Labor uses two
official values for trust fund adequacy. One is an average high
cost multiple that determines whether the reserves are
sufficient to handle three of a state's highest cost years as a
percentage of wages. The other value is the high cost multiple
which is essentially the year in which a state had the highest
costs as a percentage of wages covered throughout its entire
history. For Alaska, it was about 4.2 percent in the mid-1970s.
But over the last 30 years, the 3 percent to 3.3 percent reserve
ratio has been sufficient to handle the claims loads the UI
System has experienced. He opined that the targets for fund
solvency and financing have stood the test of time.
4:23:08 PM
SENATOR MICCICHE commented that recessions obviously matter
because statewide earnings are down about $1.5 billion over the
last couple of years.
4:23:36 PM
SENATOR STEVENS said he appreciates the Commissioner's concern
that the CS only boosts Alaska from 52nd to 49th in the nation
on the wage replacement ratio. He asked what it would take to be
25th in the nation.
MR. WELLER calculated that the average replacement rate would
th
need to be 42 percent to rank 25. He noted that the current
average replacement rate was just under 29 percent. With the CS,
the replacement rate would be 32 percent to 33 percent.
4:26:08 PM
At ease
4:26:13 PM
CHAIR COSTELLO reconvened the meeting and asked Ms. Kloster to
comment on the CS.
4:26:48 PM
KENDRA KLOSTER, Staff, Representative Chris Tuck, Alaska State
Legislature, Juneau, Alaska, said she agreed with Commissioner
Drygas's assessment of the CS. She expressed appreciation that
the committee recognized that UI benefits need to be increased.
However, the sponsor was concerned about removing Section 2 (the
automatic adjustment for wage replacement) because it had only
been updated once in 22 years. He was also concerned about
changing the base rate from $2,500 to $3,000. It will affect
about 100 Alaskans, mostly from rural areas.
CHAIR COSTELLO said your comments are noted.
4:28:21 PM
SENATOR MEYER moved to report the Senate CS for CSHB 142,
version T, from committee with individual recommendations and
attached fiscal note(s).
4:28:46 PM
CHAIR COSTELLO found no objection and SCS CSHB 142(L&C) moved
from the Senate Labor and Commerce Standing Committee.
4:29:00 PM
At ease
SJR 7-CONST. AM: VOTER APPROVAL FOR NEW TAXES
4:30:53 PM
CHAIR COSTELLO reconvened the meeting. She announced the
consideration of SJR 7 and noted the proposed committee
substitute (CS).
4:31:19 PM
SENATOR MEYER advised that he became the prime sponsor of SJR 7
after the former sponsor resigned his seat. He said he feels
that a broad-based tax impacts constituents and it's reasonable
to propose that they vote on any such measure. He noted that
Colorado passed similar legislation. Placing the requirement for
voter approval of new taxes in the constitution would be more
permanent than doing so statutorily. That was his preference.
4:32:30 PM
SENATOR MEYER moved to adopt the work draft CS for SJR 7,
labeled 30-LS0788\D, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
4:32:55 PM
CHRISTINE MARASIGAN, Staff, Senator Kevin Meyer, Alaska State
Legislature, Juneau, Alaska, sponsor of SJR 7, reviewed the
following changes between version A and version D:
Version D of SJR 7 narrows the proposed constitutional
amendment that would add the requirement that any tax
would not go into effect until approved by the voters
of the State by a majority of the votes cast on the
proposed law.
This version would have the voter approval requirement
more narrowly apply to any broad-based individual
income tax or a statewide general sales tax rather
than any tax.
4:33:46 PM
CHAIR COSTELLO removed her objection. Finding no further
objection, version D was adopted.
SENATOR MEYER reiterated that the potential impacts of a broad-
based tax can be great. Requiring voter approval for any broad-
based individual income tax or a statewide general sales tax
would ensure that constituents support such a tax.
CHAIR COSTELLO asked which states have passed similar
legislation.
SENATOR MEYER said Colorado was the state most often cited.
MS. MARASIGAN confirmed that many people point to Colorado as a
model for TABOR, which is the Taxpayer's Bill of Rights that
mandates a voter referendum for approval of taxes. A number of
states and municipalities require voter approval for certain
bonds.
SENATOR STEVENS asked if the income tax was initially a vote of
the public
MS. MARASIGAN said she didn't know.
SENATOR STEVENS said he didn't think it was but he would like to
know.
CHAIR COSTELLO said she didn't think so either but the sponsor's
staff could follow up with the information.
MS. MARASIGAN pointed out that in years past there have been
advisory votes on the subject. When the sponsor first looked at
assuming sponsorship of the bill he was advised that this could
only be done through a constitutional amendment or an advisory
vote. Placing the requirement in statute would be
unconstitutional.
4:36:44 PM
CHAIR COSTELLO found no one who wished to testify on SJR 7 and
she closed public testimony.
SENATOR MEYER said he would appreciate it if the bill was moved
to the Judiciary Committee because that was the proper committee
to have the discussion on whether this should be included in the
constitution.
4:37:34 PM
SENATOR MICCICHE said this is the committee on the economy and
this measure has significant implications for the economy, both
good and bad. He said he wouldn't stand in the way of the bill
moving but he had many questions.
4:38:57 PM
At ease
4:39:02 PM
CHAIR COSTELLO reconvened the meeting.
4:40:44 PM
SENATOR MEYER moved to report CSSJR 7, version D, from committee
with individual recommendations and attached fiscal note(s).
4:41:04 PM
SENATOR GARDNER objected.
CHAIR COSTELLO asked for a roll call.
A roll call vote was taken. Senators Micciche Stevens, Meyer and
Costello voted in favor of moving SJR 7 from committee and
Senator Gardner voted against it. Therefore, the motion to move
SJR 7 from committee passed by a 4:1 vote.
SENATOR MICCICHE said he believes in sending everything possible
to the voters and he hopes that voters think carefully about
this matter, should it come to a vote.
4:43:55 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee at 4:43 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SCS CSHB170(L&C) Ver. R.pdf |
SL&C 4/14/2018 1:30:00 PM |
HB 170 |
| SCS CSHB170(L&C) Explanation of Changes Ver. O to R.pdf |
SL&C 4/14/2018 1:30:00 PM |
HB 170 |
| SCS CSHB142 (L&C) Version T.pdf |
SL&C 4/14/2018 1:30:00 PM |
HB 142 |
| SCS CSHB142 (L&C) Version R to T.pdf |
SL&C 4/14/2018 1:30:00 PM |
HB 142 |
| CS SJR 7 Version D.pdf |
SL&C 4/14/2018 1:30:00 PM |
SJR 7 |
| CS SJR 7 Explanation of Changes Ver. A to D.pdf |
SL&C 4/14/2018 1:30:00 PM |
SJR 7 |
| Supporting Document SCS CSHB142(L&C).pdf |
SL&C 4/14/2018 1:30:00 PM |
HB 142 |