04/14/2018 01:30 PM Senate LABOR & COMMERCE

         SJR  7-CONST. AM: VOTER APPROVAL FOR NEW TAXES                                                                     
                                                                                                                                
4:30:53 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the  meeting.  She   announced  the                                                               
consideration  of   SJR  7  and  noted   the  proposed  committee                                                               
substitute (CS).                                                                                                                
                                                                                                                                
4:31:19 PM                                                                                                                    
SENATOR MEYER advised  that he became the prime sponsor  of SJR 7                                                               
after  the former  sponsor resigned  his seat.  He said  he feels                                                               
that a  broad-based tax impacts constituents  and it's reasonable                                                               
to propose  that they  vote on  any such  measure. He  noted that                                                               
Colorado passed similar legislation.  Placing the requirement for                                                               
voter approval  of new  taxes in the  constitution would  be more                                                               
permanent than doing so statutorily. That was his preference.                                                                   
                                                                                                                                
4:32:30 PM                                                                                                                    
SENATOR  MEYER moved  to  adopt  the work  draft  CS  for SJR  7,                                                               
labeled 30-LS0788\D, as the working document.                                                                                   
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
4:32:55 PM                                                                                                                    
CHRISTINE  MARASIGAN, Staff,  Senator Kevin  Meyer, Alaska  State                                                               
Legislature,  Juneau,  Alaska, sponsor  of  SJR  7, reviewed  the                                                               
following changes between version A and version D:                                                                              
                                                                                                                                
     Version D of SJR  7 narrows the proposed constitutional                                                                    
     amendment that  would add the requirement  that any tax                                                                    
     would not go  into effect until approved  by the voters                                                                    
     of the  State by a  majority of  the votes cast  on the                                                                    
     proposed law.                                                                                                              
                                                                                                                                
     This version would have  the voter approval requirement                                                                    
     more  narrowly  apply  to  any  broad-based  individual                                                                    
     income  tax or  a  statewide general  sales tax  rather                                                                    
     than any tax.                                                                                                              
                                                                                                                                
4:33:46 PM                                                                                                                    
CHAIR  COSTELLO   removed  her  objection.  Finding   no  further                                                               
objection, version D was adopted.                                                                                               
                                                                                                                                
SENATOR MEYER reiterated  that the potential impacts  of a broad-                                                               
based tax can  be great. Requiring voter approval  for any broad-                                                               
based  individual income  tax or  a statewide  general sales  tax                                                               
would ensure that constituents support such a tax.                                                                              
                                                                                                                                
CHAIR   COSTELLO  asked   which   states   have  passed   similar                                                               
legislation.                                                                                                                    
                                                                                                                                
SENATOR MEYER said Colorado was the state most often cited.                                                                     
                                                                                                                                
MS. MARASIGAN confirmed  that many people point to  Colorado as a                                                               
model  for TABOR,  which is  the Taxpayer's  Bill of  Rights that                                                               
mandates a  voter referendum for  approval of taxes. A  number of                                                               
states  and municipalities  require  voter  approval for  certain                                                               
bonds.                                                                                                                          
                                                                                                                                
SENATOR STEVENS asked  if the income tax was initially  a vote of                                                               
the public                                                                                                                      
                                                                                                                                
MS. MARASIGAN said she didn't know.                                                                                             
                                                                                                                                
SENATOR STEVENS said he didn't think  it was but he would like to                                                               
know.                                                                                                                           
                                                                                                                                
CHAIR COSTELLO said she didn't  think so either but the sponsor's                                                               
staff could follow up with the information.                                                                                     
                                                                                                                                
MS.  MARASIGAN pointed  out that  in years  past there  have been                                                               
advisory votes on  the subject. When the sponsor  first looked at                                                               
assuming sponsorship of  the bill he was advised  that this could                                                               
only be  done through a  constitutional amendment or  an advisory                                                               
vote.   Placing    the   requirement   in   statute    would   be                                                               
unconstitutional.                                                                                                               
                                                                                                                                
4:36:44 PM                                                                                                                    
CHAIR COSTELLO  found no one who  wished to testify on  SJR 7 and                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
SENATOR MEYER said  he would appreciate it if the  bill was moved                                                               
to the Judiciary Committee because  that was the proper committee                                                               
to have the discussion on whether  this should be included in the                                                               
constitution.                                                                                                                   
                                                                                                                                
4:37:34 PM                                                                                                                    
SENATOR MICCICHE  said this is  the committee on the  economy and                                                               
this measure  has significant implications for  the economy, both                                                               
good and bad.  He said he wouldn't  stand in the way  of the bill                                                               
moving but he had many questions.                                                                                               
                                                                                                                                
4:38:57 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
4:39:02 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
4:40:44 PM                                                                                                                    
SENATOR MEYER moved to report  CSSJR 7, version D, from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
4:41:04 PM                                                                                                                    
SENATOR GARDNER objected.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked for a roll call.                                                                                           
                                                                                                                                
A roll call vote was  taken. Senators Micciche Stevens, Meyer and                                                               
Costello  voted in  favor  of  moving SJR  7  from committee  and                                                               
Senator Gardner voted  against it. Therefore, the  motion to move                                                               
SJR 7 from committee passed by a 4:1 vote.                                                                                      
                                                                                                                                
SENATOR MICCICHE said he believes  in sending everything possible                                                               
to  the voters  and he  hopes that  voters think  carefully about                                                               
this matter, should it come to a vote.