Legislature(1997 - 1998)
04/17/1998 09:25 AM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE BILL NO. 472 "An Act relating to apportionment of business income." Co-Chair Sharp noted that the committee held a hearing on this bill the day before. It had been set aside because of questions members wished to have addressed. Representative Rokeberg was invited to join the committee and comment: "Mr. Chairman, I'll be very brief. This committee has already reviewed the substance of this legislation in SB 345. Yesterday, I hope you have available on your desk, a list of supporters for HB 472. I've listed them in a list rather than provide the actual backup. You have additional backup in your folder. I'd ask that any additional information on [SB] 345 be adopted by reference into the bill package for this bill." "Also you have, Mr. Chairman - I've distributed something I wanted to make part of the permanent record - under a cover letter from COMICO Alaska from the producer's council, a list of the foreign flag vessels shipping mined ore out of the State Of Alaska during the years 1996 and 97, including the Skagway terminal, which is a $25 million investment financed by AIDEA bonds. It's also my understanding, Mr. Chairman that there is no US flag high-seas ore carriers in the United States. I wanted to introduce that as part of the record." "Additionally, Mr. Chairman, you should have distributed to the committee, a letter addressed to myself from the law firm of Gross and Burke of April 7, 1998, which speaks to the issues relating to the retroactivity provision, the constitution issue and severability. I'd like that as part of the record Mr. Chairman." "Also I notice that you do have a letter to Senator Donley from the Department of Revenue regarding some questions the committee raised in the last hearing on this bill." "With that, Mr. Chairman, I would point out that Ms. Burke is in the audience and available for any questions you may - the committee may have as to any legal aspects relating to the bill. And with that I'd be available for any questions." Senator Parnell offered Amendment #1 and moved for its adoption. He explained that it addressed the retroactivity question that came up at the earlier meeting. He believed the bill as it currently stood, sufficiently established the public purpose for the retroactivity. However, this amendment would make it clear that if the court made a final determination that retroactive application, under Section 2, was invalid, that the act would apply to tax years ending on, or after the effective date of the act. He felt the amendment would give a clear direction as to what was intended. Without objection, Amendment #1 was adopted. Senator Adams expressed approval of the change made with Amendment #1. But, he still disagreed with the law summary of Gross and Burke. He stated his feelings that the bill without the amendment was unconstitutional. He spoke of how the bill was supposed to help cruise lines and shared that cruise lines generated pre-tax revenues of $671 million last year. In the US, they only paid $6 million, which was less than one percent. He expressed his desire that the tax break not be given to these industries. He felt this bill would entice a lawsuit from the public. He hoped the amendment would clarify whether the bill was constitutional. He voiced his objection to the passage of the bill. Senator Parnell made a motion to move CS HB 472 (FIN) from committee. Co-Chair Sharp directed committee staff to review the fiscal note and determine if changes needed to be made as the result of the amendments. He noted there was objection to the motion and called for a vote. The motion passed by a vote of 6-1 and the bill was moved from committee. Senator Adams cast the nay vote.