Legislature(2015 - 2016)HOUSE FINANCE 519

04/13/2015 09:00 AM House FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 176 REPEAL ST EMPL WAGE RAISE;LEGIS EMPL BENE TELECONFERENCED
Moved CSHB 176(FIN) Out of Committee
+= HB 137 HUNTING, SPORT FISH, TRAPPING FEES TELECONFERENCED
Moved CSHB 137(FIN) Out of Committee
+= HB 155 FEES; WAIVERS; CREDITS; DEDUCTIONS;TAXES TELECONFERENCED
Moved CSHB 155(FIN) Out of Committee
+ SB 33 FEES FOR TIRES TELECONFERENCED
Moved HCS SB 33(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 155                                                                                                            
                                                                                                                                
     "An  Act relating  to fees  charged  by the  commercial                                                                    
     fisheries  entry commission;  repealing an  exploration                                                                    
     incentive credit; amending  the calculation of adjusted                                                                    
     gross  income  for  purposes of  the  tax  on  gambling                                                                    
     activities  aboard large  passenger vessels;  repealing                                                                    
     the amount  that may  be deducted  from the  motor fuel                                                                    
     tax to cover  the expense of accounting  and filing for                                                                    
     the monthly tax return;  repealing a provision allowing                                                                    
     an investigation  expense under the Alaska  Small Loans                                                                    
     Act to be  in place of a fee required  under the Alaska                                                                    
     Business License Act; repealing  the amount that may be                                                                    
     deducted  from  the tobacco  excise  tax  to cover  the                                                                    
     expense of  accounting and filing  for the  monthly tax                                                                    
     return; repealing the discount  on cigarette tax stamps                                                                    
     provided  as compensation  for affixing  the stamps  to                                                                    
     packages;  repealing the  amount that  may be  deducted                                                                    
     from  a tire  fee remittance  to cover  the expense  of                                                                    
     accounting  and filing  for the  quarterly fee  return;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
10:03:51 AM                                                                                                                   
                                                                                                                                
Co-Chair Thompson indicated  he was the sponsor  of the bill                                                                    
and that there was a committee substitute for the bill.                                                                         
                                                                                                                                
Vice-Chair  Saddler MOVED  to ADOPT  the proposed  committee                                                                    
substitute  for  HB  155, Work  Draft  29-LS0715\N,  Nauman,                                                                    
4/8/15.                                                                                                                         
                                                                                                                                
Co-Chair Neuman OBJECTED.                                                                                                       
                                                                                                                                
10:04:56 AM                                                                                                                   
                                                                                                                                
BRODIE  ANDERSON,  STAFF,   REPRESENTATIVE  STEVE  THOMPSON,                                                                    
reviewed the changes to the  committee substitute by reading                                                                    
from a prepared statement:                                                                                                      
                                                                                                                                
     Title:  Title  change  removing  indirect  expenditures                                                                    
     referenced in the bill                                                                                                     
                                                                                                                                
     Old Section 1 & 2:  Sections     deleted    referencing                                                                    
     Commercial  Fisheries   Entry  Commission   (CFEC)  fee                                                                    
     language.                                                                                                                  
                                                                                                                                
     Section 1-9: Renumbered from Sections 3-11                                                                                 
                                                                                                                                
     Section  10(Old section  12): Removed  AS 16.43.160(d),                                                                    
     AS   43.98.025(e),    Statutes   referencing   indirect                                                                    
    expenditures related to the CFEC and the tire fee.                                                                          
                                                                                                                                
     (Old   Section   13):   Deleted   section   referencing                                                                    
    regulations related to CFED indirect expenditures.                                                                          
                                                                                                                                
     Section  11:  Transition language  reflects  renumbered                                                                    
     sections   and   removed   transition   language   that                                                                    
     referenced CFEC indirect expenditures.                                                                                     
                                                                                                                                
     Section 12-13: Renumbered  from Sections 15-16, section                                                                    
     language reflects renumbered sections.                                                                                     
                                                                                                                                
10:06:27 AM                                                                                                                   
                                                                                                                                
Representative Guttenberg asked  if the Committee Substitute                                                                    
removed Sections 1 and 2 of the old bill.                                                                                       
                                                                                                                                
Mr.  Anderson  responded  that  the old  Sections  1  and  2                                                                    
specifically  dealt with  indirect  expenditures related  to                                                                    
the  Commercial   Fisheries  Entry  Commission   (CFEC).  He                                                                    
reported that after Representative  Edgmon's question in the                                                                    
prior  committee meeting,  he  looked at  what the  indirect                                                                    
expenditures  were for  CFEC and  determined that  they were                                                                    
all  related to  indirect  expenditures for  things such  as                                                                    
low-income  reductions   and  fee  exemptions.   In  looking                                                                    
further the low-income reference  cited federal code for the                                                                    
federal  poverty level.  It was  noted  that the  low-income                                                                    
applicants  truly  met  the poverty  level  criteria.  After                                                                    
talking with industry and CFEC  a more comprehensive look at                                                                    
the  fee structures  for  all of  CFEC  fees and  exemptions                                                                    
might be better utilized and addressed at a later time.                                                                         
                                                                                                                                
Co-Chair Thompson identified additional available                                                                               
                                                                                                                                
Representative  Guttenberg asked  about removing  Sections 1                                                                    
and 2 and  whether they just related to CFEC  and not to any                                                                    
other commission.                                                                                                               
                                                                                                                                
Mr. Anderson  responded that the  old sections  only related                                                                    
to CFEC. There  was one other indirect  expenditure that was                                                                    
removed from the  bill relating to the tire tax  fee. It was                                                                    
addressed in previous legislation  that was already heard by                                                                    
the finance committee.                                                                                                          
                                                                                                                                
10:08:57 AM                                                                                                                   
                                                                                                                                
Representative   Pruitt   wanted   to   confirm   that   the                                                                    
legislation would remove four fees  for CFEC. He asked if he                                                                    
was correct.                                                                                                                    
                                                                                                                                
Mr. Anderson stated  that all references to any  CFEC fee or                                                                    
reduction were removed.                                                                                                         
                                                                                                                                
Representative  Pruitt   asked  about  why  all   four  were                                                                    
removed.  He  noted that  one  of  the  fees had  an  effect                                                                    
amounting to $17 thousand or  $18 thousand. He also referred                                                                    
to a  reduced application  fee for  low-income non-residents                                                                    
that had not  been used. He asked if there  was a reason for                                                                    
removing all four fees.                                                                                                         
                                                                                                                                
Mr. Anderson stated that it  was cleaner. He elaborated that                                                                    
Sections 1 and  2 of the old bill had  language allowing the                                                                    
commission   to   rewrite   regulations,   which   was   not                                                                    
necessarily in the  best interest of the state.  It was also                                                                    
thought  it  would  be  better  to  look  at  the  fees  and                                                                    
reductions  in  their  entirety.  Industry  suggested  that,                                                                    
although  some of  the indirect  expenditures  had not  been                                                                    
used  for the  previous 4  years, some  might be  needed. He                                                                    
cited the example  of the expediting transfer  fee used only                                                                    
in an  emergency. If  such an  emergency came  up low-income                                                                    
poverty  families could  be negatively  impacted. Therefore,                                                                    
they were removed.                                                                                                              
                                                                                                                                
10:11:15 AM                                                                                                                   
                                                                                                                                
Co-Chair Thompson OPENED public testimony.                                                                                      
                                                                                                                                
Co-Chair Thompson CLOSED public testimony.                                                                                      
                                                                                                                                
Vice-Chair  Saddler MOVED  to REPORT  CSHB  155(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, CSHB  155(FIN) was REPORTED out of                                                                    
committee with a  "do pass" recommendation and  with one new                                                                    
zero fiscal note from the Department of Revenue.                                                                                
                                                                                                                                
10:12:18 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:15:13 AM                                                                                                                   
RECONVEYNED                                                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
SB 33 2015 Tire Fee Comparison With Other States.pdf HFIN 4/13/2015 9:00:00 AM
SB 33
SB33 Sponsor Statement.pdf HFIN 4/13/2015 9:00:00 AM
SB 33
SB 33 CS WORKDRAFT HFIN.PDF HFIN 4/13/2015 9:00:00 AM
SB 33
HB 105 CS WORKDRAFT FIN.pdf HFIN 4/13/2015 9:00:00 AM
HB 105