Legislature(2017 - 2018)SENATE FINANCE 532
02/28/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB120 | |
| SB165 | |
| SB15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 321 | TELECONFERENCED | |
| += | SB 104 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 120 | TELECONFERENCED | |
| += | SB 165 | TELECONFERENCED | |
| += | SB 15 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
February 28, 2018
9:08 a.m.
9:08:43 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:08 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Donny Olson
Senator Gary Stevens
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
John Ptacin, Chief Assistant Attorney General, Regulatory
Affairs and Public Advocacy, Department of Law; Brittany
Hartmann, Staff, Senator Anna MacKinnon; Lori Wing-Heier,
Director, Division of Insurance, Department of Commerce,
Community and Economic Development; Tim Lamkin, Staff,
Senator Gary Stevens; Juli Lucky, Staff, Senator Anna
MacKinnon.
SUMMARY
SB 15 E-CIGS: SALE TO AND POSSESSION BY MINOR
CSSB 15(FIN) was REPORTED out of committee with a
"do pass" recommendation and with a new Statement
of Zero Fiscal Impact by the Office of the
Governor for the Department of Health and Social
Services, the Department of Law, and Department
of Public Safety; and a new fiscal impact note
from Department of Commerce, Community and
Economic Development.
SB 165 COMPREHENSIVE HEALTH INSURANCE FUND
SB 165 was REPORTED out of committee with a "do
pass" recommendation and with two previously
published zero fiscal notes: FN 1(ADM), FN
2(CED).
HB 120 DEPT OF LAW: ADVOCACY BEFORE FERC
HB 120 was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal
note from the Department of Law.
HOUSE BILL NO. 120
"An Act relating to the Department of Law public
advocacy function to participate in matters that come
before the Federal Energy Regulatory Commission."
9:09:27 AM
Co-Chair MacKinnon directed attention to HB 120, which had
been heard in committee on Monday, February 26, 2018. She
relayed that the public hearing had been opened and closed
and there had been no testimony. Additionally, the fiscal
note had been reviewed. She noted that Senator Micciche had
indicated he believed the fiscal note should remain
indeterminate. She invited the Department of Law (DOL) to
the table.
Senator Stevens asked about the cost of outside counsel for
the past several years.
JOHN PTACIN, CHIEF ASSISTANT ATTORNEY GENERAL, REGULATORY
AFFAIRS AND PUBLIC ADVOCACY, DEPARTMENT OF LAW, replied
that he had obtained the outside counsel fees on Federal
Energy Regulatory Commission (FERC) matters for the past
five years. The fees had been $613,000 in 2013, $1,050,000
in 2014 (the "SR" case had been heating up at the time),
$39,000 in 2015 (the SR case had ended), $195,000 in 2016,
and $215,000 in 2017.
Vice-Chair Bishop asked for verification that "SR" meant
strategic reconfiguration on Trans-Alaska Pipeline System
(TAPS).
Mr. Ptacin replied in the affirmative. He detailed it had
been a large case where DOL had looked at a large-scale
project on the pipeline and sought to get the costs taken
out of rates.
Vice-Chair Bishop MOVED to REPORT HB 120 out of Committee
with individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
HB 120 was REPORTED out of committee with a "do pass"
recommendation and with one new zero fiscal note from the
Department of Law.
9:12:31 AM
AT EASE
9:16:07 AM
RECONVENED
SENATE BILL NO. 165
"An Act relating to the Alaska comprehensive health
insurance fund; and providing for an effective date."
9:16:07 AM
Co-Chair MacKinnon directed attention to SB 165. The bill
was heard the previous day; the public hearing had been
opened and closed and there had been no testimony.
Additionally, the fiscal note had been reviewed. She had a
question on the fiscal note regarding a discussion on
diverting $60 million to the General Fund. She explained
that the fiscal note did not reflect the information
because if the bill was not passed, the insurance premiums
would be redirected to the General Fund already. She had
asked her staff where the $322 million coming in from the
federal government was. She would continue to work with the
department to accurately reflect for the public why the
action was taking place. She added there had been no
indication of amendments.
BRITTANY HARTMANN, STAFF, SENATOR ANNA MACKINNON, reviewed
the bill. She detailed the review would extend the sunset
of the Alaska Comprehensive Health Insurance Fund for an
additional six years from June 30, 2018 to June 30, 2024.
The extension was meant to continue to stabilize the
individual healthcare market in Alaska and to comply with
the federal award with the 1332 waiver.
LORI WING-HEIER, DIRECTOR, DIVISION OF INSURANCE,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
added her sincere thanks for the support the division had
received from the legislature. She relayed the bill meant a
great deal to many Alaskans. The division supported the
effort. She understood the decision had not been easy in FY
16 and she hoped the waiver had provided the additional
funding to continue the program.
Vice-Chair Bishop MOVED to REPORT SB 165 out of Committee
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
SB 165 was REPORTED out of committee with a "do pass"
recommendation and with two previously published zero
fiscal notes: FN1 (ADM), FN2 (CED).
9:19:36 AM
AT EASE
9:22:07 AM
RECONVENED
SENATE BILL NO. 15
"An Act relating to possession of an electronic
smoking product or a product containing nicotine by a
minor and to selling or giving an electronic smoking
product to a minor; relating to business license
endorsements to sell cigarettes, cigars, tobacco,
products containing tobacco, electronic smoking
products, or products containing nicotine; and
relating to citations for certain offenses concerning
tobacco or nicotine products."
9:22:07 AM
Co-Chair MacKinnon reviewed the bill title and noted that
Senator Stevens was the bill sponsor. She asked if he had
comments for the committee.
SENATOR GARY STEVENS, SPONSOR stated that the bill was
about protecting Alaska's youth from becoming addicted to
nicotine and adopting unhealthy habits. He noted it was a
concern nationwide and a major problem in Alaska. The bill
was about restricting sales to and possession of the
products by youth. Additionally, the bill would give state
agencies the authority to enforce restrictions. He spoke to
the importance of acting quickly to face the new industry
and to help protect the state's children who were being
targeted.
Co-Chair MacKinnon reviewed that the committee had heard
the bill on February 16 and had heard public testimony. She
announced she would reopen the public hearing.
Co-Chair MacKinnon OPENED and CLOSED public testimony.
Senator Stevens MOVED to ADOPT Amendment 1, 30-LS0170\N.3
(Bruce/Martin, 2/26/18) (copy on file):
Page 12, line 28:
Delete "11.76.109(a)(3)"
Insert "11.76.109(a)(4)"
Page 13, line 6:
Delete "AS 11.76.900"
Insert "AS 11.8l.900(b)"
Co-Chair MacKinnon OBJECTED for discussion.
9:24:22 AM
TIM LAMKIN, STAFF, SENATOR GARY STEVENS, explained that
Amendment 1 was a simple technical amendment. There had
been several drafting errors in the bill that had been
overlooked as it had gone through the committee substitute
process (CS). He referenced the first part of the amendment
and explained that AS 11.76.109(a)(3) and (a)(4) pointed to
the wrong section. The amendment was conforming. Likewise,
the statute in the second portion of the amendment did not
exist. The amendment would insert the correct section of
law that addressed the definition of e-cigarettes.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
Senator Stevens MOVED to ADOPT Amendment 2, 30-LS0170\N.2
(Martin, 2/23/18) (copy on file):
Page 2, following line 20:
Insert a new bill section to read:
"* Sec. 3. AS 1l.76.106(a) is amended to read:
(a) Except as provided under (b) of this section, a
person may not sell cigarettes, cigars, tobacco,
products [OR A PRODUCT] containing tobacco, electronic
smoking products, or products containing nicotine
unless the sale occurs in a manner that allows only
the sales clerk to control access to the cigarettes,
cigars, tobacco, products [OR PRODUCT] containing
tobacco, electronic smoking products, or products
containing nicotine.
Renumber the following bill sections accordingly.
Page 2, line 27:
Delete "or"
Insert "[OR]"
Page 2, line 31, following "older":
Insert "; or
{4) is of electronic smoking products over the
Internet to a person 19 years of age or older"
Page 13, line 19, following "Act,":
Insert "AS 11.76.l06(a), as amended by sec. 3 of this
Act,"
Page 13, line 20:
Delete "sec. 3"
Insert "sec. 4"
Delete "sec. 4"
Insert "sec. 5"
Page 13, line 21:
Delete "sec. 5"
Insert "sec. 6"
Delete "sec. 6"
Insert "sec. 7" 13
Page 13, line 22:
Delete "sec. 7"
Insert "sec. 8" 17
Page 13, line 23:
Delete "sec. 8"
Insert "sec. 9"
Co-Chair MacKinnon OBJECTED for discussion.
Mr. Lamkin explained Amendment 2, which was more
substantive than Amendment 1. He detailed that AS
1l.76.106(a) was commonly known as the "behind the counter"
law. He elaborated that tobacco and nicotine products were
required to be placed behind the counter and sales of the
products had to be under the direct supervision of a sales
clerk. For example, Fred Meyer shoppers had to go to a
specific counter to purchase cigarettes and tobacco related
products and were required to present their identification.
The law was originally targeted to prevent vendors from
situating the products in locations that could be easily
accessed and would attract the attention of youth. For
example, products could be placed in the candy or snack
aisle (or toy section). Additionally, the law served to
prevent or eliminate the possibility of the products.
Mr. Lamkin relayed that in the Senate Judiciary Committee
there had been concern the particular section of the law
would prevent adult sales of the products over the internet
because there was not a person immediately supervising the
sale or transaction. He elaborated that due to confusion
and misunderstanding, the sponsor had removed the section
of the bill at that time. He explained that while removing
the section clarified adult sales could be conducted over
the internet, it would also allow stores to place e-
cigarettes in aisles where they may not be appropriately
located. The amendment would restore the prior language.
Mr. Lamkin detailed there were exceptions to the particular
law. He cited a bar vending machine as an example where the
transaction did not have to be under direct supervision or
require a sales clerk. The bottom of the amendment made an
exception for internet sales provided the buyer was over 19
years of age.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, Amendment 2 was ADOPTED.
9:28:18 AM
Senator Micciche MOVED to ADOPT Amendment 3, 30-LSO170\N.1
(Martin, 2/16/18) (copy on file):
Page 7, line 10:
Delete "$1,000"
Insert "$500"
Page 7, line 25:
Delete "indefinitely [ONE YEAR]"
Insert "one year"
Co-Chair MacKinnon OBJECTED for discussion.
Senator Micciche stated that he had spoken to the sponsor
about the amendment and believed Senator Stevens was
supportive. He thought a penalty of $1,000 for a first
offense was too severe. He believed a $500 penalty left
room for a person to make a mistake. He noted the existing
penalty was $300. He explained that sometimes a new store
employee could make the mistake of not getting adequate
identification. He did not change the other numbers in the
legislation.
Senator Micciche also believed the word "indefinitely" on
page 7, line 25 would mean the end of a business,
particularly a vape business. He reasoned that one year was
likely very difficult [for a business] to survive from, but
the amendment would mean the loss of a license for one year
for a fourth and future offense. He stated that a fourth or
fifth offense would constitute the loss of a license for
another year. He believed a person could probably argue
that vaping was better for someone's health than
traditional tobacco simply because it did not involve
burning plant matter. He furthered that vape shops were
more likely to be closed indefinitely with a one-year
closure. He believed one year was an adequate penalty.
Senator Stevens supported the amendment.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, Amendment 3 was ADOPTED.
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, addressed the
committee's first Statement of Zero Fiscal Impact. She had
been working with the executive branch and the Legislative
Finance Division (LFD) to develop a more efficient way to
deal with zero fiscal notes. She explained that SB 15 had
been accompanied by four fiscal notes, three of which were
zero notes and had been consolidated into the Statement of
Zero Fiscal Impact. The hope was to make it easier for the
public and committee members to easily see all of the
departments impacted by a bill, but that did not incur any
fiscal impact. She highlighted that the one piece of paper
replaced six sheets of paper.
Ms. Lucky pointed out that the bill had one fiscal impact
note from the Department of Commerce, Community and
Economic Development for the Division of Corporations,
Business and Professional Licensing. There was a fiscal
impact of $5,600 in FY 19. She directed attention to page 2
of the analysis and read:
This legislation requires changes to warning signage
and the department must make available to a person who
holds a business license endorsement. It also requires
a change to the CBPL database warning signs, forms,
online filing, websites, investigations, and a
regulation change. The committee substitute changes
the required notice from two separate signs to one
combined sign and changes the required minimum
dimensions of those signs. If the bill passes the
following expenses will be incurred: services, $3,000
in legal costs to amend regulations, printing, and
postage in the first year; $1,000 for IT services for
the system change; and $1,600 for printing and postage
to mail new signage.
Ms. Lucky continued that the analysis included a note that
legal and hearing service expenses would be incurred in
outyears, but the costs were unknown. The costs would be
covered by receipt supported services (undesignated general
fund code 1005).
9:33:44 AM
Vice-Chair Bishop MOVED to report CSSB 15(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 15(FIN) was REPORTED out of committee with a "do pass"
recommendation and with a new Statement of Zero Fiscal
Impact by the Office of the Governor for the Department of
Health and Social Services, the Department of Law, and
Department of Public Safety; and a new fiscal impact note
from Department of Commerce, Community and Economic
Development.
9:34:38 AM
AT EASE
9:36:47 AM
RECONVENED
Co-Chair MacKinnon discussed the agenda for the following
day. She noted that she would reopen the public hearing for
SB 104 the following day in order for the public to have
opportunity to comment on a forthcoming amendment from
Senator von Imhof.
ADJOURNMENT
9:38:00 AM
The meeting was adjourned at 9:37 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 15 Amendment 3 Micchice.pdf |
SFIN 2/28/2018 9:00:00 AM |
SB 15 |
| SB 15 Amendment 1 Stevens.pdf |
SFIN 2/28/2018 9:00:00 AM |
SB 15 |
| SB 15 Amendment 2 Stevens.pdf |
SFIN 2/28/2018 9:00:00 AM |
SB 15 |