04/10/2003 01:35 PM Senate L&C

              SB 114-INCREASE BUSINESS LICENSE FEE                                                                          
                                                                                                                                
CHAIR BUNDE announced SB 114 to be up for consideration.                                                                        
                                                                                                                                
SENATOR  SEEKINS  gave  everyone  a  printout  of  the  different                                                               
options.                                                                                                                        
                                                                                                                                
CHAIR BUNDE asked  Mr. Urion if he was  concerned about returning                                                               
to a  one-year licensing  requirement as  opposed to  the current                                                               
two-year.                                                                                                                       
                                                                                                                                
MR.  RICK URION,  Director, Division  of Occupational  Licensing,                                                               
said he thought the additional cost would not be significant.                                                                   
                                                                                                                                
CHAIR  BUNDE asked  if  it  would complicate  things  to make  it                                                               
optional.                                                                                                                       
                                                                                                                                
MR. URION replied that he thought it would.                                                                                     
                                                                                                                                
SENATOR STEVENS said  there are 330 businesses and  they are just                                                               
talking  about  $6,000,  but  a  lot  of  businesses  don't  sell                                                               
tobacco, like Burger King and McDonald's.                                                                                       
                                                                                                                                
MR.  URION explained  that most  of the  franchises are  separate                                                               
businesses.                                                                                                                     
                                                                                                                                
SENATOR  STEVENS  asked  if  he  had  figured  the  cost  to  the                                                               
department in any of his calculations.                                                                                          
                                                                                                                                
SENATOR SEEKINS replied that he  had not; he thought the multiple                                                               
location approach would offset the  additional cost of the annual                                                               
renewal fee.                                                                                                                    
                                                                                                                                
MR. URION  added if  they go  to an annual  license, the  law for                                                               
tobacco  endorsement  that  passed  a  few  years  ago  says  the                                                               
endorsement is good for the length  of the term of the license it                                                               
accompanies. An  annual license renewal would  automatically make                                                               
the tobacco  endorsement an annual  license, which is  $100. That                                                               
would generate an additional $125,600 per year for the state.                                                                   
                                                                                                                                
CHAIR BUNDE asked  for Mr. Urion's thoughts on  adopting option 4                                                               
with $100 for 0 to 4 employees up to $100,000 gross.                                                                            
                                                                                                                                
MR.  URION replied  that he  had been  around awhile  and was  in                                                               
business  when  Alaska  had  a  gross  business  tax.  People  in                                                               
business  today get  really upset  when  you talk  about a  gross                                                               
business  tax. He  noted, "That's  something  that doesn't  exist                                                               
anymore."                                                                                                                       
                                                                                                                                
There was a general discussion on the issues.                                                                                   
                                                                                                                                
TAPE 03-20, SIDE B                                                                                                            
                                                                                                                              
CHAIR BUNDE  said his concern  was about generating  less revenue                                                               
and he was seeking direction from the committee.                                                                                
                                                                                                                                
SENATOR SEEKINS  responded in his  opinion, the  committee should                                                               
go with  $100 for the 0  to 4 annually  and a minimum of  $200 to                                                               
$300 for  the 5 to 19  and 20 plus requiring  individual licenses                                                               
with multiple locations, but he  thought they could get away with                                                               
$100, $300 and $500 without causing  undue harm and get closer to                                                               
some of the revenue goals.                                                                                                      
                                                                                                                                
CHAIR BUNDE said they would hold the bill for further work and                                                                  
adjourned the meeting at 2:29 p.m.