Legislature(2015 - 2016)
04/09/2016 03:23 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB101 | |
| SB196 | |
| SB210 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
April 9, 2016
3:23 p.m.
3:23:11 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 3:23 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
MEMBERS ABSENT
Senator Donny Olson
ALSO PRESENT
Erin Shine, Staff, Senator Anna MacKinnon; Laura Cramer,
Staff, Senator Anna MacKinnon; David Teal, Director,
Legislative Finance Division.
PRESENT VIA TELECONFERENCE
Wayne Aderhold, Self, Homer; Susanne Fleek-Green, Chief of
Staff, Mayor's Office, Municipality of Anchorage,
Anchorage; John J. Pierce, Self, Fairbanks.
SUMMARY
SB 101 STATE PARKS FEES & SALES OF MERCHANDISE
SB 101 was HEARD and HELD in committee for
further consideration.
SB 196 POWER COST EQ FUND: RESERVE ACCT; DIVIDEND
SB 196 was HEARD and HELD in committee for
further consideration.
SB 210 COMM. REV. SHARING; PROP. TAX EXEMPTIONS
SB 210 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 101
"An Act relating to fees for use of state park system
facilities; and relating to the sale of merchandise by
the Department of Natural Resources."
3:24:17 PM
Co-Chair Kelly MOVED to ADOPT the committee substitute for
SB 101, 29-GS1040\E (Bullard, 4/8/16).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained that
the committee substitute incorporated Amendment H.1, with a
conceptual amendment. She stated that the drafter had
raised concerns on the conceptual language, so there were
conversations to relieve the concerns. She looked at page
3, lines 7 through 12, which was a rewording of the intent
of the conceptual amendment.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, the proposed committee substitute was
ADOPTED.
Co-Chair MacKinnon remarked that she hoped that the bill
would move from committee the following Monday morning.
SB 101 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 196
"An Act relating to the use of certain unexpended
earnings from the power cost equalization endowment
fund."
3:26:13 PM
Co-Chair Kelly MOVED to ADOPT the committee substitute for
SB 196, Work Draft 29-LS1383\V (Nauman, 4/9/16).
Co-Chair MacKinnon OBJECTED for DISCUSSION.
3:26:59 PM
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, explained the
difference between version F and version V of the bill. She
looked at page 1, line 12, following the reference to
reference to AS 42.45.080c. She announced that the number 1
was inserted, which referenced the above section on line 7.
She stated that the language, "for the fiscal year
beginning the following July 1." She announced that the
version read, "c.1 may be appropriated for the following
purposes." She looked at page 2, subsection d, following
the statute reference AS 42.45.080c, the number 2 was
inserted. The number 2 referenced Section 1, subsection 2.
She shared that page 2, line 11, following "appropriation
under (a) of the section" inserted the phrase "for the
current fiscal year." She stated that it had previously
read, "for the previous fiscal year." She shared that
following the statute reference on line 13, AS 42.45.080c,
the number 2 was inserted, which referenced Section 1. She
looked at subsection 1, line 16, which allowed for
appropriating 30 percent or $30 million, whichever is less,
to the Community Revenue Sharing or Community Assistance
Fund. The following subsection allowed for appropriation to
the Renewable Energy Grant Fund, and the committee added
"Bulk Fuel Revolving Loan Fund" and the "Rural Power System
Upgrades." The percentage changed from 30 percent to 20
percent. She furthered that $25 million was added,
whichever was less. She announced that an effective date of
June 30 of the current year was added to the bill. She
shared that any excess earnings would either return to or
stay in the Power Cost Equalization (PCE) Endowment Fund.
Co-Chair MacKinnon REMOVED her OBJECTION. There being NO
further OBJECTION, the proposed committee substitute was
ADOPTED.
Co-Chair MacKinnon queried the impact of the change to
Power Cost Equalization in the numbers that were included
as maximums that could be withdrawn from the fund.
3:31:18 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, looked
at the spreadsheet titled, "Power Cost Equalization
Endowment Fund - Impacts of SB 196" (copy on file). He
remarked that the purpose of the bill was to determine how
to manage excess earnings to the PCE Endowment Fund. He
noted that Section 3, subsection d outlined the action for
the excess earnings. The noted the highlighted yellow
columns, which showed the repeat of experience from 2004 to
the current day. It was not intended as a prediction of
interest rates, rather it was an example of some higher and
negative rates. The column showed years of excess earnings
and years of insufficient earnings. He looked at Section 3,
which stated that "if the 5 percent payout was insufficient
to pay the Power Cost Equalization amount", as listed under
program costs in the spreadsheet, "then Power Cost
Equalization will be prorated." He furthered that if there
was insufficient funds, then there was no money available
for Community Assistance or Rural Energy programs. He
stated that, if there was excess money, 50 percent of the
amount available for allocation would be put in Community
Assistance.
Co-Chair MacKinnon queried comments for the committee to
consider. Senator Hoffman replied that the CS was improved,
especially when examining the available scenarios.
SB 196 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 210
"An Act relating to the community revenue sharing
program; changing the name of the community revenue
sharing program to the community assistance program;
and relating to the municipal property tax exemption
on the residence of a senior, a disabled veteran, and
a widow or widower of a senior or disabled veteran."
3:35:24 PM
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON explained that
the committee had removed the property tax exemption
language, so the name was changed from Community Revenue
Sharing to Community Assistance. She remarked that the bill
would have funding, should SB 196 become law.
3:36:30 PM
AT EASE
3:36:35 PM
RECONVENED
3:36:37 PM
Vice-Chair Micciche MOVED to ADOPT Amendment 1, 29-
LS1593\H.1, Shutts, 4/4/16 (copy on file):
Page 6, line 3:
Delete "revenue sharing"
Insert "assistance [REVENUE SHARING]"
Co-Chair MacKinnon OBJECTED for DISCUSSION.
Ms. Cramer explained the amendment. She remarked that
Legislative Legal did not catch the name change.
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
OBJECTION, Amendment 1 was ADOPTED.
WAYNE ADERHOLD, SELF, HOMER (via teleconference), testified
against the legislation. He shared that he was a senior who
received the exemption. He felt that he should be taxed. He
remarked that the constitution provided rights, but also
outlined duties. He announced that seniors must be engaged
in the financially in the state's current budget problem.
He felt that any exemption should be needs-based, rather
than age-based. He shared that there was a 2009 Pugh Trust
report, which showed that over the 25-year period up to
2009 people over the age of 65 were performing 42 percent
better at the end of that period. He noted that people
under the age of 35 were performing 68 percent worse, in
regards to net worth.
Co-Chair MacKinnon explained that the exemption was no
longer in the bill.
SUSANNE FLEEK-GREEN, CHIEF OF STAFF, MAYOR'S OFFICE,
MUNICIPALITY OF ANCHORAGE, ANCHORAGE (via teleconference),
testified against the current version of the legislation.
She felt that the bill would result in a $9 million
reduction to the current amount of Community Revenue
Sharing. She shared that the municipality had taken
responsible action with the passage of its budget. The
municipal budget allowed for a $5 million cut in municipal
assistance. She felt that cutting the Anchorage assistance
by $9 million would have significant consequences. The
municipality would need to add to burden to counteract the
effects of the legislation.
JOHN J. PIERCE, SELF, FAIRBANKS (via teleconference), spoke
in support of the elimination of the property tax
exemption. He reassured the committee that targeting the
fixed income seniors, disabled military, and veterans was
wrong.
Co-Chair MacKinnon CLOSED public testimony.
3:46:45 PM
AT EASE
3:47:12 PM
RECONVENED
Co-Chair MacKinnon
SB 210 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:48:07 PM
The meeting was adjourned at 3:48 p.m.
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