02/13/2002 03:25 PM House L&C

HB 229-EDUCATION TAX ON EMPLOYMENT                                                                                            
                                                                                                                                
Number 032                                                                                                                      
                                                                                                                                
CHAIR MURKOWSKI announced that the  first order of business would                                                               
be HOUSE BILL NO. 229, "An  Act imposing a tax on employment; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
Number 037                                                                                                                      
                                                                                                                                
REPRESENTATIVE  HALCRO  moved  to  bring   HB  229  back  up  for                                                               
committee  discussion.   There  being no  objection,  HB 229  was                                                               
before the committee again.                                                                                                     
                                                                                                                                
REPRESENTATIVE HALCRO moved to report  HB 229, as amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
Number 052                                                                                                                      
                                                                                                                                
REPRESENTATIVE MEYER objected for the  purpose of discussion.  He                                                               
asked  if   Representative  Murkowski  wished  to   have  a  full                                                               
committee present to vote on moving the bill from committee.                                                                    
                                                                                                                                
CHAIR MURKOWSKI said  that the committee could wait  to vote, but                                                               
she doesn't think that is necessary.   She stated that her intent                                                               
"was to get  those elements that might be ...  even considered to                                                               
be part of a fiscal plan and part  of a revenue package ... up to                                                               
House Finance  with as much  expediency as  we could."   She said                                                               
the testimony heard  on Monday [2/11/02] was  good and relatively                                                               
extensive.   She mentioned  that two  committee members  that are                                                               
absent were  able to give their  full input in the  discussion on                                                               
Monday.   She  said  that  this being  the  fact,  she isn't  too                                                               
concerned with having the full committee present.                                                                               
                                                                                                                                
Number 079                                                                                                                      
                                                                                                                                
REPRESENTATIVE MEYER  clarified that  this is the  $100 education                                                               
tax.                                                                                                                            
                                                                                                                                
CHAIR MURKOWSKI said that is correct.                                                                                           
                                                                                                                                
REPRESENTATIVE MEYER said that he  would maintain his opposition.                                                               
He asked  if there were any  amendments made at the  last hearing                                                               
in regard to the age.                                                                                                           
                                                                                                                                
Number 088                                                                                                                      
                                                                                                                                
AMY  ERICKSON, Staff  to  Representative  Lisa Murkowski,  Alaska                                                               
State Legislature,  responded to Representative  Meyer's question                                                               
by stating  that the  committee changed  the payment  schedule to                                                               
quarterly with  the Employment  Security Contribution  (ESC) tax.                                                               
She mentioned  that the committee  also "made the  effective date                                                               
with the passage of a personal income tax [January, 1 2003]."                                                                   
                                                                                                                                
CHAIR MURKOWSKI said, "I stand corrected.   ...  What we have ...                                                               
are the  amendments that  were made by  the committee  on Monday.                                                               
So this  is a  corrected draft."   She told  Representative Meyer                                                               
that he was correct.                                                                                                            
                                                                                                                                
REPRESENTATIVE MEYER voiced concern  over whether the two members                                                               
who are  absent were  comfortable with  the amendments  that were                                                               
made.                                                                                                                           
                                                                                                                                
CHAIR  MURKOWSKI  asked  if Representative  Meyer  maintains  his                                                               
objection.                                                                                                                      
                                                                                                                                
REPRESENTATIVE MEYER replied in the affirmative.                                                                                
                                                                                                                                
Number 108                                                                                                                      
                                                                                                                                
A  roll call  vote  was taken.    Representatives Hayes,  Halcro,                                                               
Crawford,  and Murkowski  voted in  favor  of moving  HB 229,  as                                                               
amended, from committee.  Representative  Meyer voted against it.                                                               
Therefore, CSHB 229(L&C) was reported  out of the House Labor and                                                               
Commerce Standing Committee by a vote of 4-1.