02/27/2018 09:00 AM House FINANCE

HOUSE BILL NO. 96                                                                                                             
                                                                                                                                
     "An  Act amending  the  calculation  of adjusted  gross                                                                    
     income for  purposes of the tax  on gambling activities                                                                    
     aboard large  passenger vessels; repealing  a provision                                                                    
     allowing  an  investigation  expense under  the  Alaska                                                                    
     Small Loans Act to be in  place of a fee required under                                                                    
     the Alaska  Business License Act; repealing  the amount                                                                    
     that may  be deducted  from the  tobacco excise  tax to                                                                    
     cover  the expense  of accounting  and  filing for  the                                                                    
     monthly   tax  return;   repealing   the  discount   on                                                                    
     cigarette  tax  stamps  provided  as  compensation  for                                                                    
     affixing the  stamps to packages; and  providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:06:43 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster relayed there was one amendment to the                                                                          
bill. He asked the sponsor and his staff to address the                                                                         
committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE   STEVE   THOMPSON,  SPONSOR,   thanked   the                                                                    
committee for noticing  the effective dates of  the bill and                                                                    
preparing  an  amendment. He  explained  that  the bill  was                                                                    
retroactive and needed to be  brought up to current dates to                                                                    
move forward  properly. He detailed that  the information in                                                                    
the  bill was  sourced  from the  2017 Indirect  Expenditure                                                                    
Report  [published  every  two   years  by  the  Legislative                                                                    
Finance Division].  He relayed  there were  numerous sunsets                                                                    
on tax  credits and credits  that may be good  and important                                                                    
to  the public.  He encouraged  members to  review the  next                                                                    
report  [2019] because  some  sunset dates  may  need to  be                                                                    
extended. He hoped the legislature  would be able to get rid                                                                    
of more  [indirect expenditures] in 2019.  The bill included                                                                    
[and   would   remove]   four  indirect   expenditures.   He                                                                    
anticipated  the  bill  would  bring  in  over  $350,000  in                                                                    
revenue to the state treasury.                                                                                                  
                                                                                                                                
Co-Chair   Foster  noted   there   were  other   individuals                                                                    
available for questions.                                                                                                        
                                                                                                                                
Co-Chair Foster  MOVED to  ADOPT Amendment  1, 30-LS0121\A.1                                                                    
(Nauman, 2/26/18) (copy on file):                                                                                               
                                                                                                                                
     Page 2, line 19:                                                                                                           
     Delete "2018"                                                                                                              
     Insert "2019"                                                                                                              
                                                                                                                                
     Page 2, line 20:                                                                                                           
     Delete "2017"                                                                                                              
     Insert "2018                                                                                                               
                                                                                                                                
Co-Chair  Foster explained  the amendment  would update  the                                                                    
effective dates  of the bill  on page  2, line 19.  It would                                                                    
update  the effective  date of  Section 1  (tax on  gambling                                                                    
activities)  to January  1, 2019  and amended  the effective                                                                    
date for the remainder of the bill to July 1, 2018.                                                                             
                                                                                                                                
There being NO OBJECTION, Amendment 1 was ADOPTED.                                                                              
                                                                                                                                
9:09:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  highlighted the  two new zero  fiscal notes                                                                    
from  the Department  of  Commerce,  Community and  Economic                                                                    
Development  and  one  new  zero   [note:  fiscal  note  was                                                                    
indeterminate] note from the Department of Revenue (DOR).                                                                       
                                                                                                                                
Representative  Wilson   believed  the  change   in  revenue                                                                    
estimated  at an  increase of  $350,000 to  the state  would                                                                    
impact DOR (fiscal note OMB Component Number 2476).                                                                             
                                                                                                                                
Co-Chair Seaton replied in the  affirmative. He detailed the                                                                    
DOR  fiscal  note reflected  zero  in  expenditures with  an                                                                    
indeterminate range  in revenues. He elaborated  the revenue                                                                    
was  anticipated   to  increase   by  $339,500  in   FY  19,                                                                    
decreasing to approximately $314,150 in FY 24.                                                                                  
                                                                                                                                
Representative  Wilson explained  she wanted  the record  to                                                                    
reflect that the revenue was positive.                                                                                          
                                                                                                                                
Representative Thompson  noted that  one of the  reasons the                                                                    
DOR fiscal note was indeterminate  was the department had no                                                                    
idea how much  difference the bill would make  in the cruise                                                                    
ship gambling  tax credits (any  potential revenue  from the                                                                    
specific credit was unknown).                                                                                                   
                                                                                                                                
9:11:28 AM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  MOVED  to  REPORT   CSHB  96(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB 96(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation and with  two new zero fiscal  notes from the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
and one  new indeterminate  fiscal note from  the Department                                                                    
of Revenue.                                                                                                                     
                                                                                                                                
9:12:03 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:51 AM                                                                                                                    
RECONVENED