03/03/2014 08:30 AM House FINANCE

HOUSE BILL NO. 305                                                                                                            
                                                                                                                                
     "An Act repealing the requirement that a junk dealer                                                                       
     or metal scrapper obtain a license."                                                                                       
                                                                                                                                
8:34:26 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:34:48 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
8:35:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIKE CHENAULT, introduced  HB 305 and related                                                                    
that it was  a small piece of legislation  that helped clean                                                                    
up  the  books.  He  explained that  the  bill  removed  the                                                                    
statute  AS  08.60.010,  which required  the  Department  of                                                                    
Revenue  (DOR)  to  issue  an  annual  license  for  persons                                                                    
engaged in  the business of  junk dealer or  metal scrapper.                                                                    
He explained  that prior to  statehood, all the  duties that                                                                    
were associated with the issuance  of junk dealers' licenses                                                                    
had  resided in  the territorial  Department of  Finance and                                                                    
relayed that  the duties had  later been resumed by  DOR. He                                                                    
pointed out  that Legislative  Research Services  had stated                                                                    
that  under Section  10  of the  State  Organization Act  of                                                                    
1959,  the   authority  and   functions  performed   by  the                                                                    
Department of  Taxation, the commissioner of  the Department                                                                    
of Taxation, the Department of  Finance, the director of the                                                                    
Department of  Finance, and the treasurer  of the Department                                                                    
of  Finance had  all been  transferred to  DOR; however,  in                                                                    
Section  14 of  the same  act, the  Department of  Commerce,                                                                    
Community  and Economic  Development (DCCED)  was given  the                                                                    
responsibility to issue licenses  for businesses not covered                                                                    
or otherwise provided in the  act. He related that according                                                                    
to  Legislative Research  Services, the  duty for  licensing                                                                    
junk  dealers and  metal scrappers  was  performed by  DCCED                                                                    
even though  it was not  assigned to the  department because                                                                    
of the collection  of fees or because it  was overlooked. He                                                                    
stated  that there  was a  report from  Legislative Research                                                                    
Services  that provided  the history  and other  information                                                                    
that  related to  the licensing  of junk  dealers and  metal                                                                    
scrappers  within DOR  (copy on  file). He  stated that  the                                                                    
legislation  helped  clean  up   the  state's  statutes  and                                                                    
believed that it had no  fiscal impact because the licensing                                                                    
was currently being conducted under DCCED.                                                                                      
                                                                                                                                
Co-Chair   Stoltze  inquired   if  Representative   Chenault                                                                    
foresaw  any  harmful impacts  on  the  health, welfare,  or                                                                    
commerce   of  the   state  as   a  result   of  the   bill.                                                                    
Representative Chenault replied in the negative.                                                                                
                                                                                                                                
Co-Chair Stoltze noted that he  would like the department to                                                                    
comment on the record regarding  its position on the current                                                                    
statute.                                                                                                                        
                                                                                                                                
Representative  Edgmon  agreed  with  the bill,  but  had  a                                                                    
question regarding  what was  included under  the definition                                                                    
of metal  scrapper. He inquired  if the definition  of metal                                                                    
scrapper  under the  legislation  included  people who  were                                                                    
dealing with  copper. Representative Chenault  believed that                                                                    
copper was included in the definition.                                                                                          
                                                                                                                                
8:39:01 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  indicated that the  bill would be  held in                                                                    
committee because of  potential issues and a  desire to take                                                                    
public testimony.                                                                                                               
                                                                                                                                
DAN  STICKEL,  ASSISTANT   CHIEF  ECONOMIST,  TAX  DIVISION,                                                                    
DEPARTMENT OF  REVENUE, stated  that DOR  had looked  at its                                                                    
records back  to 1970  and related  that the  department had                                                                    
not  found an  instance of  it collecting  any revenue  from                                                                    
licenses for junk dealers  and metal scrappers; furthermore,                                                                    
no one in  the department was aware of  having collected the                                                                    
licenses. He added that DOR was not opposed to the bill.                                                                        
                                                                                                                                
Co-Chair  Stoltze  inquired  if  there were  people  out  of                                                                    
compliance because  of the issue  and noted that  there were                                                                    
people selling scrap. Mr. Stickel  replied that the licenses                                                                    
were  collected  by DCCED  and  that  it appeared  that  the                                                                    
statute was an extraneous one that could be "scrapped."                                                                         
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair Stoltze noted that there  was interest in adding an                                                                    
amendment  to the  bill and  pointed  out that  it would  be                                                                    
incorporated  as a  CS.  He  wanted to  involve  all of  the                                                                    
committee  members  with  the proposal  and  give  people  a                                                                    
chance to look at it.                                                                                                           
                                                                                                                                
8:41:09 AM                                                                                                                    
                                                                                                                                
HB  305  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
8:41:17 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:41:36 AM                                                                                                                    
RECONVENED