SENATE FINANCE COMMITTEE March 26, 2015 1:36 p.m. 1:36:13 PM CALL TO ORDER Co-Chair MacKinnon called the Senate Finance Committee meeting to order at 1:36 p.m. MEMBERS PRESENT Senator Anna MacKinnon, Co-Chair Senator Pete Kelly, Co-Chair Senator Peter Micciche, Vice-Chair Senator Click Bishop Senator Mike Dunleavy Senator Lyman Hoffman Senator Donny Olson MEMBERS ABSENT None SUMMARY SB 32 TIMBER SALES CSSB 32(RES) was REPORTED out of committee with a "do pass" recommendation and with previously published zero fiscal note: FN1 (DNR). SB 33 FEES FOR TIRES SB 33 was REPORTED out of committee with a "do pass" recommendation and with a new fiscal impact note from the Department of Revenue. SENATE BILL NO. 32 "An Act relating to the sale of timber on state land; and providing for an effective date." 1:36:59 PM Vice-Chair Micciche discussed the attached fiscal note. He stated that the fiscal note was from Department of Natural Resources, appropriated for Land and Water Resources. The allocation was for Forest Management and Development, and the Office of Management and Budget (OMB) component number was 435. The note reflected zero fiscal impact for FY 16 through FY 21. The estimated supplemental for 2015 was zero, and the estimated capital FY 16 cost was zero. Co-Chair MacKinnon asked that the last paragraph of page 2 of the note be read into the record. Vice-Chair Micciche read the last paragraph of the analysis: There are no short-term impacts on revenue, but over time, revenue should increase as the industry diversifies to address energy needs and demand for locally sourced wood products for communities. This legislation will not place any additional demands on the current operating budget, unless the zero fiscal note. Vice-Chair Micciche MOVED to REPORT SB 32 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 32(RES) was REPORTED out of committee with a "do pass" recommendation and with previously published zero fiscal note: FN1 (DNR). 1:38:23 PM AT EASE 1:41:24 PM RECONVENED SENATE BILL NO. 33 "An Act relating to remittance of tire fees; and providing for an effective date." 1:41:43 PM Co-Chair MacKinnon noted a spreadsheet attached to the bill outlining a comparison of tire fees for each state (copy on file). 1:41:52 PM AT EASE 1:42:45 PM RECONVENED 1:42:51 PM Co-Chair MacKinnon addressed the spreadsheet, and wondered if there were any questions from committee members. Vice-Chair Micciche discussed the attached fiscal note. He stated that the fiscal note was from the Department of Revenue (DOR), Taxation and Treasury was the appropriation, and the Tax Division was the allocation. The OMB component number was 2476. He remarked that there was zero impact for FY 16 through FY 21, but the FY 16 showed a change in revenues of minus $5,000. The estimated supplemental FY 15 cost was zero, and the estimated capital for FY 16 was zero. The fiscal impact was intended to not impact taxpayers. The estimated loss of general fund revenue was due to a decrease in tax penalty and interest as a result of filing and on-time payments. The timely pay credit loss was estimated at $2,500, and the estimated penalty loss was estimated at $2,500, with interest less than $50. Vice-Chair Micciche MOVED to REPORT SB 33 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 33 was REPORTED out of committee with a "do pass" recommendation and with a new fiscal impact note from the Department of Revenue. 1:44:56 PM AT EASE 1:46:56 PM RECONVENED Co-Chair MacKinnon discussed the following day's agenda. Co-Chair Kelly queried the session's total fiscal impact. Co-Chair MacKinnon responded that, until the passage of SB 33, there had been zero fiscal impact. Vice-Chair Micciche felt that SB 33 should not be considered of great fiscal impact, because it would streamline payments. ADJOURNMENT 1:49:10 PM The meeting was adjourned at 1:49 p.m.