Legislature(2017 - 2018)BUTROVICH 205
02/22/2018 03:30 PM Senate STATE AFFAIRS
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Audio | Topic |
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Start | |
HB44 | |
SB130 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | TELECONFERENCED | ||
+= | HB 44 | TELECONFERENCED | |
+= | SB 130 | TELECONFERENCED | |
SB 130-VOTER APPROVAL FOR NEW TAXES 4:04:26 PM CHAIR MEYER announced the consideration of Senate Bill 130 (SB 130). 4:04:52 PM SENATOR GIESSEL moved to adopt the committee substitute (CS) for SB 130, version 30-LS1088\J as the working document. 4:05:08 PM CHAIR MEYER objected for discussion purposes. 4:05:19 PM CHRISTINE MARASIGAN, Staff, Senator Meyer, Alaska State Legislature, Juneau, Alaska, reviewed the CS for SB 130. The CS before you for SB 130 removes the entire bill, both pages, all sections and replaces it with a main section, section 1, which basically turns the bill into an advisory vote. This new version essentially carries the intent of the original bill which was to place before voters questions about having a broad-based tax, and so there would be two questions. The first question would be do you approve of the passage by the Alaska State Legislature of a bill that imposes an individual income tax, yes or no? The second question would be do you approve of the passage by the Alaska State Legislature a bill that imposes a statewide sales tax, yes or no? SENATOR COGHILL asked why the change was made. MS. MARASIGAN explained that at the previous hearing on January 30, Emily Nauman from Legislative Legal Services said SB 130 was unconstitutional. She said to determine whether voters approve or disapprove a statewide sales tax or income tax, there are two pathways. She said the first way would be a constitutional amendment and the second way would be an advisory vote. She detailed that Chair Meyer assumed sponsorship of SJR 7, which was held by the former chair of the Senate State Affairs Committee, to allow for voter approval of new taxes via a constitutional amendment. She explained that a constitutional amendment has the full force of law by enshrining the refutation of taxation in the constitution unless allowed by voters, but enactment requires a two-thirds vote in each body. She said the second pathway is before the committee through SB 130, version J. She detailed that SB 130 is an advisory vote which would simply be a majority vote from both bodies; however, the caveat is the vote is nonbinding. She summarized that Chair Meyer followed up with both pathways by changing SB 130 into an advisory vote while taking up a constitutional amendment bill as well. 4:09:09 PM SENATOR GIESSEL asked if SB 130 is the same as the vote that was taken to put into place a 90-day legislative session. SENATOR COGHILL explained that the vote for a 90-day legislative session was a citizen initiative. SENATOR GIESSEL asked if SB 130 would have the same force as a citizen's initiative and hopefully the citizens would understand that. CHAIR MEYER confirmed that the hope is citizens would understand. He added that SB 130 would provide legislators with feedback whether to implement a tax. He concurred that a constitutional amendment is a high hurdle, as it should be; however, SB 130 "hedges our bet" to have a go before the voters on a broad-based tax this year. He asked if the advisory vote would go on the ballot for the primary or general election. MS. MARASIGAN replied that the bill says the advisory vote would go on the ballot on the first statewide election following the effective date. She detailed that if the legislative session goes beyond 90 days the advisory vote would be in the general election. SENATOR COGHILL asked if the advisory vote would be on a sales tax or an income tax. 4:11:57 PM CHAIR MEYER replied that the advisory vote would be on both. SENATOR GIESSEL noted a letter from the Division of Elections was included in the packets that estimated a cost if the advisory vote was not held during the primary or general election. SENATOR WILSON pointed out that the question was posed during the previous hearing about the difference between a statewide election cost versus a special election cost. CHAIR MEYER noted that the bill has a zero fiscal note. He withdrew his objection to the CS. 4:13:52 PM SENATOR GIESSEL moved to report CSSB 130, version 30-LS1088\J from committee with individual recommendations and attached fiscal note. SENATOR COGHILL objected to comment. He said he is not a big fan of advisory votes but would not hold the bill up in committee. He asserted that legislators have a responsibility to perform. He said he might be convinced to vote for the bill, but not at this point. He removed his objection. CHAIR MEYER added that he struggled with the same issue as well. He concurred that people vote for legislators to be represented on all issues during the session. He opined that although the issue is big, there is a feeling that the bill is what the public wants. He said by doing an advisory vote, legislators will really know what the public wants or doesn't want regarding broad-based taxes. 4:15:06 PM CHAIR MEYER said there being no objection, CSSB 130(STA) moves from committee.
Document Name | Date/Time | Subjects |
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CSSB 130 Version J.pdf |
SSTA 2/22/2018 3:30:00 PM |
SB 130 |
SB 130 Ltr from Div of Elections.pdf |
SSTA 2/22/2018 3:30:00 PM |
SB 130 |