Legislature(1999 - 2000)
03/24/2000 01:55 PM House FIN
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HOUSE BILL NO. 418
"An Act relating to program receipts collected by the
division of insurance and to program receipts collected
by the Department of Community and Economic Development
for occupational licenses; and providing for an
effective date."
Vice Chair Bunde MOVED to adopt work draft, 1-LS1500\I,
Utermohle, 3/24/00 (copy on file.) There being NO
OBJECTIONS, it was so ordered.
JANET SEITZ, STAFF, REPRESENTATIVE ROKEBERG spoke in support
of the legislation on behalf of the sponsor. She explained
that the legislation would add two new areas to the program
receipts statute. A correction was made under the Division
of Occupational Licensing to exclude business license
receipts and Alaska Seafood Marketing Institute (ASMI)
receipts were added. She observed that the sponsor supports
the committee substitute, but is concerned that pioneer home
receipts were excluded.
Co-Chair Therriault observed that individual licensing
groups within the Division of Occupational Licensing would
like to contribute funds that could be used for
participation in national training. He noted that ASMI
receipts are collected specifically for ASMI marketing. He
explained that Co-Chair Mulder expressed the desire to keep
the legislation limited in scope.
Co-Chair Therriault clarified that a previous proposed
committee substitute was not offered because it would have
swept in business licenses. Business licenses generate more
than they consume for operation. The excess currently goes
to the General Fund. There was no desire to take these funds
off budget; therefore they were excluded from the
legislation.
JEFF, BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND
ECONOMIC DEVELOPMENT spoke in support of the legislation. He
expressed concern that the Division of Insurance was deleted
from the legislation. He observed that the Division of
Insurance generates fees in the same manner as the Division
of Occupational Licensing. He made assurances to the
industry that the legislation is not an attempt to raise
insurance fees. Insurance fees currently pay for their
services. He pointed out that the legislation does not take
the fee structure away from legislative oversight. He
maintained that any fears by industry were unfounded.
Mr. Bush referred to section (Y). He pointed out that the
receipts that go to ASMI are tax receipts, which are
collected by the Department of Revenue and appropriated to
ASMI. He suggested that the term "receipts" may not be
appropriate.
Mr. Bush spoke in support of an immediate effective date. He
noted that an immediate effective date could ease pressure
on the supplemental appropriation bill.
Co-Chair Therriault proposed that the bill be held to allow
research regarding subsection (Y). He stated that he
preferred that the legislation be matched to the new fiscal
year. He observed that the title would not prevent the
effective date from being changed later.
Representative Grussendorf asked why pioneer home receipts
were not included.
ALISON ELGEE, REVENUE COMMISSINER, DEPARTMENT OF
ADMINISTRATION stated that the department supports the
inclusion of pioneer home receipts and observed that
legislation in the Senate would address pioneer home
receipts. She spoke in support of recognizing resident
revenues as specific to the pioneer home program.
Representative Grussendorf asked why pioneer home receipts
and Division of Insurance receipts were excluded from HB
418. Co-Chair Mulder explained that the intent was to keep
the legislation narrow in order to hurry its advancement. He
stressed that there would be little objection to the two
program receipts in the legislation. He observed that others
could be added later.
HB 418 was HEARD and HELD in Committee for further
deliberation.
HOUSE BILL NO. 418
"An Act relating to program receipts collected by the
division of insurance and to program receipts collected
by the Department of Community and Economic Development
for occupational licenses; and providing for an
effective date."
Co-Chair Therriault observed that discussions with the
department clarified that the taxes to the Alaska Seafood
Marketing Institute (ASMI) come from two sources. The tax
sources need to be identified.
JOE BALASH, STAFF, REPRESENTATIVE THERRIAULT provided
information on HB 418. He explained that the legislative
legal staff confirmed that the previous language would only
apply to the minimal amount of materials and information
brochures sold by ASMI. The taxes did need to be referenced.
The legal counsel recommended adding the following language:
receipts from the seafood marketing assessment (AS
16.51.120), the salmon marketing tax (AS 43.76.110)
Co-Chair Therriault MOVED to ADOPT a conceptional amendment
to replace the language on line 8, page 1 to specifically
reference receipts from the seafood marketing assessment (AS
16.51.120), the salmon marketing tax under (AS 43.76.110)
and other receipts of the Alaska Seafood Marketing Institute
(ASMI). There being NO OBJECTION, it was so ordered.
Co-Chair Mulder MOVED to report CSHB 418 (FIN) out of
Committee with the accompanying fiscal notes. There being NO
OBJECTION, it was so ordered.
CSHB 418 (FIN) was REPORTED out of Committee with a "do
pass" recommendation and with two fiscal impact notes: one
by the Department of Community and Economic Development,
Occupational Licensing, published date 3/1/00; and one by
the Department of Community and Economic Development, Alaska
Seafood Marketing Institute (ASMI).
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