HOUSE FINANCE COMMITTEE April 8, 1993 8:30 a.m. TAPE HFC 93-99, Side 1, #000 - end. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 8:30 a.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Representative Bunde; Jay Nelson, Staff, Representative Davidson. SUMMARY INFORMATION HB 175 "An Act making an appropriation for a grant for construction of the Women In Military Service Memorial; and providing for an effective date." HB 175 was reported out of Committee with a "do pass" recommendation. HB 239 "An Act relating to raffles and auctions of certain permits to take big game; and providing for an effective date." CSHB 239 (RES) and with a fiscal impact note by the Department of Fish and Game, dated 4/2/93. HB 216 "An Act relating to power cost equalization; and providing for an effective date." CSHB 216 (FIN) was reported out of Committee with a "do pass" recommendation and with a zero fiscal note by the House Finance Committee. HJR 9 Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem 1 taxation on real property, or state retail sales taxation without the approval of the voters of the state. HJR 9 was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Office of the Governor, dated 2/3/93 and with a zero fiscal note by the Department of Revenue, dated 2/3/93. HOUSE BILL NO. 239 "An Act relating to raffles and auctions of certain permits to take big game; and providing for an effective date." REPRESENTATIVE CON BUNDE stated that CSHB 239 (RES) is similar to legislation which exists in 11 other states. He emphasized that no hunting opportunities would be taken away from residents. Representative Martin expressed concern that a government agency would be directly involved in gaming. Representative Bunde clarified that the raffle would be administered by a conservation organization. He noted that bison tags have previously been raffled. Representative Parnell noted that musk ok tags are included. Representative Bunde observed that musk ox are currently available by residents. He stated that musk ox were included as a more exotic animal. Representative Bunde clarified, in response to a question by Representative Parnell, that guides would not bid on the tags. He added that master guides would volunteer services to participate in the hunt. He stressed that wealthy individuals would participate. He noted that permits cannot be transferred. Representative Foster MOVED to report CSHB 239 (RES) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 239 (RES) and with a fiscal impact note by the Department of Fish and Game, dated 4/2/93. HOUSE BILL NO. 175 "An Act making an appropriation for a grant for construction of the Women In Military Service Memorial; and providing for an effective date." 2 JAY NELSON, STAFF, REPRESENTATIVE CLIFF DAVIDSON explained that the Memorial was established by federal legislation introduced by Senator Murkowski in 1986. The federal legislation required that no federal money be spent. He noted that other states had contributed similar amounts. Representative Foster congratulated Representative Davidson for the bill. Representative Foster MOVED to report HB 175 out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. HB 175 was reported out of Committee with a "do pass" recommendation. HOUSE BILL NO. 216 "An Act relating to power cost equalization; and providing for an effective date." Co-Chair Larson noted that the House Finance Committee added "state or" to the legislation in previous action. He observed that the cost of operating state facilities in rural areas would be increased. He suggested that there would be an incentive for moving facilities to urban areas of the State. He added that the action would result in a $600 thousand dollar supplemental in FY 95. He expressed his desire to rescind the Committee's action in adopting "state or". Representative Parnell noted that the sponsor of the amendment was not present. Co-Chair Larson explained that by removing state owned facilities from PCE, agencies' facilities' costs will be increased by approximately $600 thousand dollars. Co-Chair Larson MOVED to RESCIND the Committee's action in inserting "state or" on page 1, line 10 and 11 and on page 2, line 24. There being NO OBJECTION, it was so ordered. The motion to adopt the amendment was before the Committee. Representative Martin OBJECTED. A roll call vote was taken on the motion to insert "state or" on page 1, line 10 and 11 and on page 2, line 24. IN FAVOR: Foster OPPOSED: Hanley, Martin, Parnell, Therriault, Larson, MacLean Representatives Grussendorf, Hoffman, Navarre and Brown were absent from the vote. 3 The MOTION FAILED (6-1). Representative Hanley MOVED to report CSHB 216 (FIN) out of Committee with individual recommendations and with the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSHB 216 (FIN) was reported out of Committee with a "do pass" recommendation and with the accompanying fiscal note. HOUSE JOINT RESOLUTION NO. 9 Proposing an amendment to the Constitution of the State of Alaska prohibiting the imposition of state personal income taxation, state ad valorem taxation on real property, or state retail sales taxation without the approval of the voters of the state. Representative Martin MOVED to RESCIND the Committee's action in failing to pass HJR 9 from committee. There being NO OBJECTION, it was so ordered. Representative Martin MOVED to report HJR 9 out of Committee with individual recommendations and with the accompanying fiscal note. Representative Foster OBJECTED. Representative Foster felt that the powers of the legislature would be weakened by HJR 9. He stressed that there would be a time delay between fiscal crisis and voter approval which would magnify fiscal difficulties. A roll call vote was taken on the motion to move HJR 9 from committee. IN FAVOR: Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Foster The MOTION PASSED (6-1). HJR 9 was reported out of Committee with a "do pass" recommendation and with a fiscal impact note by the Office of the Governor, dated 2/3/93 and with a zero fiscal note by the Department of Revenue, dated 2/3/93. HOUSE BILL NO. 216 "An Act relating to power cost equalization; and providing for an effective date." 4 Co-Chair Larson noted that CSHB 216 (FIN) would require a zero fiscal note. He MOVED to report a House Finance Committee zero fiscal note with CSHB 216 (FIN). There being NO OBJECTION, it was so ordered. ADJOURNMENT The meeting adjourned at 9:07 a.m. 5