Legislature(2011 - 2012)BARNES 124
02/09/2012 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HB184 | |
| HB305 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 184 | TELECONFERENCED | |
| *+ | HB 305 | TELECONFERENCED | |
HB 184-REFUND OF FISH BUSINESS TAX TO MUNIS
8:04:20 AM
CHAIR MUNOZ announced that the first order of business would be
HOUSE BILL NO. 184, "An Act relating to the sharing of tax
revenue from the fisheries business tax and fishery resource
landing tax with municipalities; and providing for an effective
date." [Before the committee was CSHB 184, Version 27-LS0576\R,
Bullard, 1/25/12, which was adopted at the January 26, 2012,
meeting.]
8:04:45 AM
REPRESENTATIVE P. WILSON, Alaska State Legislature, speaking as
the sponsor, reminded the committee that HB 184 would increase
the fish tax share with boroughs, communities, and cities to
help with port and harbor maintenance and improvements. The
legislation also proposes to share the unprocessed fish tax with
the area where the fish was landed. Representative P. Wilson
encouraged the committee to forward the legislation from the
committee.
8:05:38 AM
TIM ROONEY, Manager, City & Borough of Wrangell, related his
support for HB 184. In response to the question at the last
meeting regarding how much of the fish tax Wrangell now receives
goes to the maintenance of its ports and harbors, he said 100
percent of it does.
8:06:35 AM
DAVE JACK, Member, City & Borough of Wrangell Assembly, City &
Borough of Wrangell, informed the committee that the City &
Borough of Wrangell Assembly has passed a resolution in support
of HB 184. He reminded the committee that the purpose of the
fish tax was to be utilized to maintain the infrastructure of
ports and harbors. Since the transfer of ownership and
responsibility of the harbors and ports to the municipalities,
it's appropriate for the communities to receive those funds to
maintain the ports and harbors.
8:08:10 AM
GLORIANNE WOLLEN, Harbormaster, City of Petersburg, related
support for HB 184, which she opined has been crafted with great
care to help communities fund harbors and their continuing
maintenance. She informed the committee that when the harbor
facilities were transferred to the City of Petersburg, they were
in need of major repairs or replacement. Therefore, this
additional funding will help places like the City of Petersburg
to qualify for grants such as the state's 50:50 harbor match
program. These harbors play a critical economic role in Alaska
by enabling trade, transportation, commercial fisheries,
tourism, and recreational opportunities throughout the state.
Increasing a stable funding source, which HB 184 proposes, is a
significant step in ensuring that the City of Petersburg and
other small communities are able to adequately address the needs
of the port and harbor facilities.
8:11:03 AM
CHAIR MUNOZ, upon determining no one else wished to testify,
closed public testimony.
8:11:21 AM
REBECCA ROONEY, Staff, Representative P. Wilson, Alaska State
Legislature, explained that in both the fisheries business and
the fisheries resource landing taxes, there is language that
helps a newly formed borough transition to the 50:50 split when
a borough is formed over the course of four years. The
fisheries resource landing tax wasn't originally included in
CSHB 184, Version R, so this amendment would include it. She
characterized is as conforming language.
REPRESENTATIVE P. WILSON interjected that including the
fisheries resource landing tax would maintain what's already in
existing statute.
8:13:03 AM
CHAIR MUNOZ surmised that this amendment wouldn't impact
existing city & boroughs rather it only impacts situations in
which a new borough forms [and a city and borough then exist].
MS. ROONEY replied yes. She noted that although the existing
statute has never been exercised, the sponsor wanted to be sure
that the change was made in all the necessary areas.
8:13:52 AM
REPRESENTATIVE AUSTERMAN pointed out that the change in the
amendment to renumber the bill sections on page 4, line 11 and
page 5, line 12 doesn't seem to correspond with the sections in
Version R.
The committee took an at-ease from 8:15 a.m. to 8:18 a.m.
8:19:20 AM
REPRESENTATIVE AUSTERMAN moved that the committee adopt
Amendment 1, labeled 27-LA0576\R.1, Bullard, 2/1/12, which read:
Page 4, following line 18:
Insert a new bill section to read:
"* Sec. 8. AS 43.77.060(b) is amended to read:
(b) Notwithstanding the provisions of (a)(2) and
(a)(3)(B) of this section, and subject to
appropriation by the legislature, the commissioner
shall pay to each
(1) city that is located in a borough
incorporated after January 1, 1994, the following
percentages of the tax revenue collected from taxes
levied under this chapter on fishery resources landed
in the city and accounted for under AS 43.77.050(b):
(A) 67.5 [45] percent of the tax revenue
collected during the calendar year in which the
borough is incorporated;
(B) 60 [40] percent of the tax revenue
collected during the first calendar year after the
calendar year in which the borough is incorporated;
(C) 52.5 [35] percent of the tax revenue
collected during the second calendar year after the
calendar year in which the borough is incorporated;
and
(D) 45 [30] percent of the tax revenue
collected during the third calendar year after the
calendar year in which the borough is incorporated;
and
(2) borough that is incorporated after
January 1, 1994, the following percentages of the tax
revenue collected from taxes levied under this chapter
on fishery resources landed in the cities located
within the borough and accounted for under
AS 43.77.050(b):
(A) 7.5 [FIVE] percent of the tax revenue
collected during the calendar year in which the
borough is incorporated;
(B) 15 [10] percent of the tax revenue
collected during the first calendar year after the
calendar year in which the borough is incorporated;
(C) 22.5 [15] percent of the tax revenue
collected during the second calendar year after the
calendar year in which the borough is incorporated;
and
(D) 30 [20] percent of the tax revenue
collected during the third calendar year after the
calendar year in which the borough is incorporated."
Renumber the following bill sections accordingly.
Page 4, line 11:
Delete "Sections 6 and 9"
Insert "Sections 6 and 10"
Page 5, line 12:
Delete "sec. 11"
Insert "sec. 12"
8:19:50 AM
REPRESENTATIVE AUSTERMAN moved that the committee adopt the
following amendment to Amendment 1, as follows:
Delete the following language from Amendment 1:
Page 4, line 11:
Delete "Sections 6 and 9"
Insert "Sections 6 and 10"
Page 5, line 12:
Delete "sec. 11"
Insert "sec. 12"
Insert "Any conforming renumbered sections that need
to be renumbered."
There being no objection, the amendment to Amendment 1 was
adopted.
8:20:41 AM
There being no objection, Amendment 1, as amended, was adopted.
8:21:05 AM
REPRESENTATIVE CISSNA moved to report CSHB 184, Version 27-
LS0576\R, Bullard, 1/25/12, as amended, out of committee with
individual recommendations and the zero fiscal notes.
8:21:39 AM
REPRESENTATIVE AUSTERMAN objected.
8:21:57 AM
REPRESENTATIVE GARDNER stated that Representative P. Wilson has
identified a real problem, but the concern is this isn't the
right fix. She expressed concern that this legislation may
create other problems because currently the funding [from these
fish taxes] support other state agencies.
8:22:36 AM
REPRESENTATIVE P. WILSON explained that's why the legislation
specifies that 25 percent [of the fish tax proceeds] remain with
the state. She recalled that testimony from the [Alaska
Department of Fish & Game] said the 25 percent was enough for
their needs.
8:23:01 AM
REPRESENTATIVE GARDNER recalled testimony that if HB 184 passes
as written, it doesn't make much of a dent in the need. If the
legislation passes as written, she suggested that if communities
still seek funds from the legislature, there might be comments
that the communities are already receiving more funds from the
fish tax. Therefore, she stressed that the legislation doesn't
solve the problem and creates additional problems.
8:23:34 AM
CHAIR MUNOZ acknowledged that the legislation doesn't solve the
problem, but highlighted that it helps. She reminded the
committee that there's a tremendous backlog of maintenance for
the ports and harbors since the state transferred them to
communities. She also reminded the committee that Juneau is on
record in support of the legislation.
8:24:02 AM
REPRESENTATIVE CISSNA inquired as to the reason for
Representative Austerman's objection because she characterized
[the lack of funding for ports and harbor maintenance] as a
growing problem she has observed in her travels throughout the
state.
8:25:07 AM
REPRESENTATIVE AUSTERMAN expressed concern that the underlying
change in the fishery resource landing tax distribution takes
away from some communities and gives it to others. Basically,
the change is taking away from the smaller communities and
giving to the larger communities. Furthermore, the legislation
takes another 25 percent from the state and gives it to
communities. Although he agreed that communities need funds to
work on their harbors, at the same time more state money is
being given to municipalities. The overall amount given to
municipalities in Alaska is overwhelming, when compared to other
states. Representative Austerman said he understood the goal
with HB 184, but didn't like the idea of hiding what's going on
by putting 25 percent on it to make it look as if every
community is getting more money when that's not the case. In
House Finance discussions regarding whether the fishing industry
pays its way most who argue that the fishing industry doesn't
pay its way point to the revenue generated by the fish taxes.
Already 50 percent of the fish taxes are given to the
communities and there's less revenue that can be justified as
the fishing industry paying its way and taking another 25
percent to the communities would lead to the argument that the
fishing industry doesn't pay its way because they look at the
state dollars rather than what goes to the municipalities. The
aforementioned is of concern as well, he said.
8:27:54 AM
REPRESENTATIVE CISSNA pointed out that fishing is still one of
the largest [employers] in the state. The kinds of costs to
communities are from the conditions, such as the high cost of
fuel, that bring the state more funds. The aforementioned is
threatening the fishing industry as well as many other
industries that are located away from the urban centers that
reap large profits from the investments made in small
communities. Communities with expenditures by the state aren't
the ones determining whether it's a need they have. For those
communities to obtain some funds, offset the aforementioned, and
avoid failure of the fishing industry is important. She
stressed the need to ensure that [the state] needs to make it
possible for humans to get what they need to eat and sell.
8:30:13 AM
CHAIR MUNOZ directed attention to the document entitled
"Fisheries Tax Revenue Share Analysis and Community Revenue
Sharing," which relates that the majority of communities receive
substantial increases in funding for their harbors. In those
cases in which there is a decrease in the amount the community
receives, the decline is very little.
REPRESENTATIVE AUSTERMAN pointed out that the analysis is based
on a 25 percent increase, not necessarily on the change to the
tax. Without the 25 percent increase, the numbers are totally
different. The aforementioned is one of his objections because
once this legislation reaches the House Finance Committee he
believes the legislation won't make it through the House Finance
Committee with the 25 percent increase. Although the sponsor
has indicated she would withdraw the legislation if it doesn't
maintain the 25 percent increase, Representative Austerman said
that going out of this committee he didn't know.
CHAIR MUNOZ related her understanding that the bill sponsor has
pledged to withdraw HB 184 if one of the taxes were amended or
not included in the formula.
8:32:11 AM
A roll call vote was taken. Representatives Foster, Dick,
Cissna, Gardner, and Munoz voted in favor of reporting CSHB 184,
Version 27-LS0576\R, Bullard, 1/25/12, as amended, out of
committee. Representatives Saddler and Austerman voted against
it. Therefore, CSHB 184(CRA) was reported out of the House
Community and Regional Affairs Standing Committee by a vote of
5-2.
The committee took an at-ease from 8:32 a.m. to 8:37 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB305 2006 statutes.pdf |
HCRA 2/9/2012 8:00:00 AM |
HB 305 |
| HB305 Leg research memo.pdf |
HCRA 2/9/2012 8:00:00 AM |
HB 305 |
| HB305 Sponsor Statement.pdf |
HCRA 2/9/2012 8:00:00 AM |
HB 305 |
| HB305-Public comments sent to Rep Gardner.pdf |
HCRA 2/9/2012 8:00:00 AM |
HB 305 |
| HB305 Support-Repasky.msg |
HCRA 2/9/2012 8:00:00 AM |
HB 305 |