Legislature(2015 - 2016)SENATE FINANCE 532
04/16/2016 03:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB118 | |
| HB373 | |
| SB55 | |
| HB41 | |
| HB290 | |
| HB41 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 118 | TELECONFERENCED | |
| += | HB 373 | TELECONFERENCED | |
| + | HB 290 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 41 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 16, 2016
3:10 p.m.
3:10:40 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 3:10 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
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Gene Therriault, Deputy Director, Statewide Energy Policy
Development, Alaska Energy Authority, Department of
Commerce, Community and Economic Development; Jim Shine,
Special Assistant to the Commissioner, Department of
Natural Resources; Erin Shine, Staff, Senator Anna
MacKinnon; Senator Cathy Giessel, Sponsor; Laura Stidolph,
Staff, Representative Kurt Olson; Kris Curtis, Legislative
Auditor, Alaska Division of Legislative Audit; Janey
Hovenden, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community
and Economic Development; Representative Cathy Tilton,
Sponsor.
PRESENT VIA TELECONFERENCE
Dr. Jeff Gonnason, Alaska Optometry, Kenai; Butch Moore,
Self, Big Lake; Seth Beausang, Assistant Attorney General,
Anchorage; Bernard Chastain, Deputy Director, Alaska
Wildlife Troopers, Anchorage; Tom Brookover, Sport Fish
Division Director, Anchorage.
SUMMARY
SB 55 OPTOMETRY & OPTOMETRISTS
CSSB 55(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published fiscal impact note: FN1 (CED).
HB 41 SPORT FISHING SERVICES
SCS CSHB 41 was REPORTED out of committee with
"no recommendation" and with one new fiscal
impact note from the Department of Fish and Game.
HB 118 MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS
CSHB 118(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new zero
fiscal note from Department of Commerce,
Community and Economic Development.
HB 373 APPROVAL OF SALE OF ROYALTY OIL TO TESORO
HB 373 was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal
impact note from Department of Natural Resources.
HB 290 EXTENDING THE REAL ESTATE COMMISSION
HB 290 was HEARD and HELD in committee for
further consideration.
Co-Chair MacKinnon discussed the agenda for the meeting.
She communicated that there would be a meeting the
following day at 8:00am for a presentation // Additional
topics for the meeting would include //
CS FOR HOUSE BILL NO. 118(FIN)
"An Act adopting the Municipal Property Assessed Clean
Energy Act; authorizing municipalities to establish
programs to impose assessments for energy improvements
in regions designated by municipalities; imposing
fees; and providing for an effective date."
3:12:37 PM
Co-Chair MacKinnon noted that the companion bill to HB 118
was SB 56.
3:13:14 PM
AT EASE
3:14:02 PM
RECONVENED
3:14:20 PM
GENE THERRIAULT, DEPUTY DIRECTOR, STATEWIDE ENERGY POLICY
DEVELOPMENT, ALASKA ENERGY AUTHORITY, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, shared that
the committee had adopted the Committee Substitute (cs) for
SB 56 on March 14th. He furthered that when the house had
decided to adopt and move identical language in HB 118. He
said that Section 5 in the current bill version would
establish a new program that would allow local governments
that levied property tax to work with business communities,
local lenders, and potential outside funding sources to
loan money for energy improvements to commercial
properties. He felt that the strength of this mechanism
would be that the repayment of the loans would be done
through a voluntary assessment, agreed to by the property
owner, added to the yearly tax bill. He stated that the
extra assessment would result in low default rates for
businesses that used the mechanism. He said that the low
default rate would result in low-cost capital because the
lending would be low-risk. He continued that Sections 1
through 4 had been added to the bill as clarifying language
pertaining to the listing of programs for first and second
class boroughs in statute. He said that Section 5 laid out
the process that local governments would need to navigate
in order to initiate the program at the local level. He
relayed that local governments would need to pass a
resolution that conveyed to the business community a plan
for initiating the process, provide detail of the source of
funding that would be used, provide detail of the
contractual language that would be used, hold public
hearings, and go through the regular local process of
introducing an ordinance. He stated that the program was
voluntary for local government to use, and is subsequently
voluntary for individual property owners to use. He relayed
that there were protections built into the bill so that
improvements would not be made to properties that did not
make economic sense. He said that the bill would require an
energy audit that would suggest which improvements would
make sense for the property, and once those improvements
were done a follow-up audit would need to be performed to
show that improvements had been done correctly. He stated
that the process was similar to the process that had
already been in place for the Alaska Housing Finance
Corporation (AHFC) energy rebate program. He related that
the bill contained protections related to commercial
property mortgages; before PACE financing could be
approved, permission from the local lender allowing the
PACE financing would be required because the PACE financing
would become a superior lean on the property.
3:18:09 PM
Mr. Therriault furthered that the local government could
not use general obligation bonds to come up with the pool
of money, and protections had been included that would keep
local government from taking coercive action to force a
commercial property owner to use the program. He believed
that the bill would help the state and local government to
work with business communities to gain federal funds at low
interest rates.
3:19:29 PM
Vice-Chair Micciche discussed zero fiscal note attached to
the bill.
3:20:26 PM
Vice-Chair Micciche MOVED to report CSHB 118(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CSHB 118(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
Department of Commerce, Community and Economic Development.
3:21:09 PM
AT EASE
3:22:46 PM
RECONVENED
HOUSE BILL NO. 373
"An Act approving and ratifying the sale of royalty
oil by the State of Alaska to Tesoro Corporation and
Tesoro Refining and Marketing Company LLC; and
providing for an effective date."
3:22:51 PM
Vice-Chair Micciche spoke to the fiscal note attached to
the bill.
Co-Chair MacKinnon noted the analysis on the second page of
the fiscal note:
This bill provides legislative approval of a contract
negotiated between the State of Alaska and Tesoro
Refining and Marketing Company, LLC for the sale of
the state's royalty oil for a term of five years.
There will be no fiscal impact to the operating
expenditures. During the course of the contract the
proposed sale will provide the State with a minimum
estimate of $45.2 million in revenue in addition to
what would have been obtained if the State of Alaska
elected to receive its royalties in value. This
estimate is based upon the March 2016 Revenue Forecast
oil value.
3:24:36 PM
JIM SHINE, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF NATURAL RESOURCES, detailed that the fiscal
note had been revised as the result of committee comments
during the initial presentation. He stated that the price
of oil was difficult to project, but that the fiscal note
reflected the projected benefit that the state would
receive, over royalty in value, over the next 5 years of
approximately $8 million to $9 million per year. He shared
that the contract would be for the sale of 20 thousand to
25 thousand barrels of royalty oil to Tesoro, per day,
beginning August 1, 2016. He said that the figures
represented the difference between royalties in kind (RIK)
and royalty in value (RIV). He relayed that the net back
formula for RIV included a marine transportation reduction
of approximately $3.50, a RIK situation would have a static
$1.95 per barrel deduction as a location differential. He
explained that the delta between the $1.95 and the $3.50
was reflected as a benefit in the fiscal note, and would
increase from FY 17 to FY 22. He directed attention to page
11 of the "Best Interest Finding" (copy on file), which
showed a projected increase in marine transportation costs
over the next five years.
3:26:32 PM
Vice-Chair Micciche MOVED to report HB 373 out of Committee
with individual recommendations and the accompanying fiscal
note.
HB 373 was REPORTED out of committee with a "do pass"
recommendation and with one new fiscal impact note from
Department of Natural Resources.
3:26:59 PM
AT EASE
3:28:29 PM
RECONVENED
SENATE BILL NO. 55
"An Act relating to the practice of optometry."
3:28:33 PM
Vice-Chair Micciche MOVED to ADOPT proposed committee
substitute for SB 55(FIN), Work Draft 29-LS0524\G (Bruce,
4/13/16).
Co-Chair MacKinnon OBJECTED for the purpose of discussion.
3:28:58 PM
ERIN SHINE, STAFF, SENATOR ANNA MACKINNON, explained that
the cs incorporated the amendments adopted by the committee
during the April 15, 2016 meeting:
Page 1, line 12:
Delete "by agreement with the State Medical Board,"
Co-Chair MacKinnon REMOVED her OBJECTION. There being NO
OBJECTION, it was so ordered.
3:29:35 PM
Vice-Chair Micciche discussed the fiscal note attached to
the legislation:
CSSB 55(L&C) expands the practice of optometrists to
include additional prescriptive authority, with the
prescription of controlled substances limited to a
seven-day supply. It authorizes the board to establish
in regulation licensee continuing education standards,
prescriptive standards, and the scope of practice to
perform ophthalmic surgery and noninvasive procedures.
If the bill passes the division will require $2.5 to
cover legal costs to amend regulations, printing, and
postage in the first year.
Professional licensing programs within the Division of
Corporations, Business and Professional Licensing are
funded by Receipt Supported Services, fund source 1156
Rcpt Svcs (DGF). Licensing fees for each occupation
are set per AS 08.01.065 so the total amount of
revenue collected approximately equals the
occupation's actual regulatory costs.
3:30:54 PM
SENATOR CATHY GIESSEL, SPONSOR, stated that she was
satisfied with the committee substitute. She relayed that
the bill would update the statutes governing the practice
of optometry in the state, and would authorize the board to
continue regulating the practice of optometry in the state.
3:31:39 PM
Co-Chair Kelly spoke to public testimony that had
referenced an optometry school in Washington State.
Senator Giessel clarified that an eye surgeon had testified
that he had been denied acceptance to a school of optometry
in Washington State. She said that there is not now, nor
had there ever been a school of optometry in Washington
State or in Washington D.C.
Co-Chair MacKinnon stated that the public hearing had
closed on April 14, 2016.
3:32:34 PM
Vice-Chair Micciche wondered whether the changes in the
current bill version allowed for optometrists to perform
surgery.
3:33:56 PM
DR. JEFF GONNASON, ALASKA OPTOMETRY, KENAI (via
teleconference), explained that under the new definition
optometrists scope of practice would be determined and
authorized by the board. He said that the old definition
allowed for minor surgeries to be performed, but nothing
invasive. He stated that under the legislation the board
would be able to determine the scope of practice, while
still protecting the public. He asserted that legislators
were not equipped to make decisions on the details of
medical procedures, which was why regulatory boards
existed.
3:36:28 PM
Vice-Chair Micciche referred to the limitation of practice
in the bill, and wondered whether it was similar to the
same provision in dentistry.
Dr. Gonnason agreed with the comparison. He noted that
Section 5 of the bill stated that no licensee could perform
an act beyond their level of training and qualification. He
reiterated that the board existed to protect the public.
3:37:27 PM
Senator Olson referred to Page 2, line 18 of the bill:
* Sec. 4. AS 08.72.272 is amended by adding new
subsections to read:
(e) A licensee may not perform an injection in
the ocular globe of the eye that is a derivative
of clostridium botulinum.
Senator Olson expressed concern that the language could be
interpreted to read that licensees were allowed to give
injections into the ocular globe as long as it was not
clostridium botulinum.
Dr. Gonnason responded that no one injected clostridium
botulinum into the eye; it simply was not done. He thought
that the language had been written into the document
because of the fear that botox injections were being
administered, which was not the case. He added that the
provision would not need to be in statute, the board would
put it in regulation. He stated that optometrists did not
administer injections into the eye. He explained that due
to increasing demand, ophthalmologists would eventually
need assistance for injecting drugs for macular
degeneration, and were currently training nurses to perform
the procedure.
3:39:31 PM
Senator Olson wanted assurances that optometrists did not
inject anything into the globe of the eye.
Dr. Gonnason replied in the affirmative.
3:39:48 PM
Vice-Chair Micciche MOVED to report CSSB 55(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CSSB 55(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
impact note: FN1 (CED).
3:40:18 PM
AT EASE
3:42:09 PM
RECONVENED
CS FOR HOUSE BILL NO. 41(FIN) am
"An Act relating to sport fishing services, sport
fishing operators, and sport fishing guides; and
providing for an effective date."
3:42:18 PM
Senator Olson spoke to Amendment 2:
Page 5, line 11:
Delete "or"
Page 5, line 14, following "guide":
Insert "; or
(C) services provided by a person licensed
under AS 08.54 that are incidental to big game
hunting, guiding, and outfitting services
3:43:15 PM
Co-Chair MacKinnon MAINTAINED her OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Bishop, Dunleavy, Hoffman, Kelly.
OPPOSED: Micciche, MacKinnon.
The motion passed (5/2), Amendment 2 was ADOPTED.
HB 41 was HEARD and HELD in committee for further
consideration.
3:44:12 PM
HOUSE BILL NO. 290
"An Act extending the termination date of the Real
Estate Commission; and providing for an effective
date."
3:44:19 PM
LAURA STIDOLPH, STAFF, REPRESENTATIVE KURT OLSON, explained
that the legislation would extend the termination date of
the Real Estate Commission to June 28, 2018. She stated
that each year the Division of Legislative Audit reviewed
boards and commissions in order to determine whether they
should be reestablished per A.S.24.44. The division
reviewed the activities of the commission in order to
determine whether there was a demonstrated need for the
commissions continued existence, and whether it had been
operating in an effective manner. She stated that the
review of the audit offered the opinion that the board was
serving the public interest by effectively by licensing
real estate broker, associate brokers, and sales people.
She noted that the division had offered two
recommendations:
1. The commission's chair and the Department of
Commerce, Community, and Economic Development,
Division of Administrative Services director should
work together to procure a master errors and omissions
insurance policy for real estate licensees.
2. The Division of Corporations, Business and
Professional Licensing's chief investigator should
take action to ensure cases are actively investigated
and completed timely.
Ms. Stidolph concluded that the commission served an
important role by improving operations and industry
practices by modifying and adopting regulations. She added
that because the commission's ability to obtain Errors and
Omissions (E&O) insurance was key to the decision to extend
the board, the sponsor felt that the commission should only
be extended for two years. She said that the E&O insurance
was a significant statutory duty to protect the public that
was not being met, and was a problem that had not been
solved in 9 years and required further scrutiny by the
legislature.
3:46:08 PM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, related that the division had issued a 6
year recommendation for extension under the condition that
the commission obtain the E&O insurance by January 2016.
She said that if the commission were unable to do so, the
division recommended a 4 year extension. She elaborated on
the two previously mentioned audit recommendations.
3:48:32 PM
Senator Dunleavy wondered whether there the commission
should be monitored by the Department of Commerce,
Community and Economic Development.
Ms. Curtis explained that investigations would still occur
regardless of which entity monitored the commission.
3:49:16 PM
Co-Chair MacKinnon OPENED public testimony.
3:49:43 PM
BUTCH MOORE, SELF, BIG LAKE (via teleconference), spoke to
a complaint that he had filed with the commission in 2014.
He said that the real estate violations had cost him over
$250,000. He relayed his personal story and expressed
frustration with the commission.
3:52:50 PM
Co-Chair MacKinnon queried whether Mr. Moore was in favor
of the bill or in opposition.
Mr. Moore did not think the real estate commission needed
to be funded. He believed that there was no point in
funding the commission if it could not do the job of
protecting the public.
3:54:10 PM
Co-Chair MacKinnon CLOSED public testimony.
3:54:40 PM
JANEY HOVENDEN, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, expressed
appreciation for Ms. Curtis' comments and the work of the
division. She spoke to the recommendations made by the
division of budget and audit. She asserted that the
department had endeavored to retain and E&O policy, but had
faced challenges at every stage of the process. She relayed
that in November 2015, the department had put out
information soliciting for bids for the master policy, but
there had been no bidders. She said that the department had
received feedback that the premiums set in regulation were
too low, and that there had not been enough information
provided about the risk pool; there were not enough people
with E&O insurance to be able to evaluate the risk. She
said that the commission was researching additional
information that could assist in regulation to address
concerns and would soon be putting out another invitation
to bid (ITB). She spoke to the problem of files lingering
for extended periods of time, and said that solutions were
being instituted to deal with the gaps in investigative
cases. She noted that the board was operating in the black
and had recently experienced a reduction in fees due to a
large surplus. She concluded that the commission was
necessary for guiding the profession, and the division, in
the regulation of the profession. She said that whether or
not the board was in existence, the licensing requirements
were in statute and people were still required to be
licensed and were best served by the board.
HB 290 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 41(FIN) am
"An Act relating to sport fishing services, sport
fishing operators, and sport fishing guides; and
providing for an effective date."
3:58:02 PM
SETH BEAUSANG, ASSISTANT ATTORNEY GENERAL, ANCHORAGE (via
teleconference), clarified that Amendment 2 would exempt
incidental fishing from the definition of "sport fishing
guide services."
3:59:33 PM
Co-Chair MacKinnon asked whether law enforcement would be
able to enforce the language adopted in the amendment.
BERNARD CHASTAIN, DEPUTY DIRECTOR, ALASKA WILDLIFE
TROOPERS, ANCHORAGE (via teleconference), thought that the
term "incidental" was ambiguous would be difficult to
enforce. He said that the troopers would not have an
ability to determine how much fishing or hunting had
actually occurred prior.
4:00:21 PM
TOM BROOKOVER, SPORT FISH DIVISION DIRECTOR, ANCHORAGE (via
teleconference), echoed the comments of Mr. Chastain.
4:00:42 PM
REPRESENTATIVE CATHY TILTON, SPONSOR, expressed that the
amendment applied only to salt water fishing. She said that
that under the revised bill the division of sport fish
would register all vessels used in guided sport fishing
trips, issue identifying decals for the vessels, and
license all sport fish operators and guides. She said that
reporting was no longer required by the bill; sport fishing
operators and guides were currently required to fulfil
reporting requirements in addition to operator and guide
registration, and vessel registration requirements by
regulation. She continued to offer information on
registration and logbook activity.
Co-Chair MacKinnon asked whether Representative Tilton
supported Amendment 2.
Representative Tilton replied that she would prefer that
the amendment would not be added to the legislation.
4:02:04 PM
AT EASE
4:02:42 PM
RECONVENED
Co-Chair Kelly MOVED to rescind the adoption of Amendment
2. There being NO OBJECTION, it was so ordered.
4:03:06 PM
Vice-Chair Micciche discussed the fiscal note attached to
the legislation. He noted that there would be an updated
fiscal note forthcoming that reflecte4d the removal of
fresh water fishing from the bill.
Co-Chair MacKinnon thought personal services would be
reduced by approximately 50 percent.
Vice-Chair Micciche MOVED to report SCS CSHB 41(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
SCS CSHB 41 was REPORTED out of committee with "no
recommendation" and with one new fiscal impact note from
the Department of Fish and Game.
4:04:39 PM
AT EASE
4:05:29 PM
RECONVENED
Co-Chair MacKinnon discussed housekeeping.
4:06:03 PM
RECESSED
4:06:24 PM
RECONVENED
ADJOURNMENT
4:06:38 PM
The meeting was adjourned at 4:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 55 AOA AKOMA Letter.pdf |
SFIN 4/16/2016 3:00:00 PM |
SB 55 |
| SB 55 Public Testimony Morris.pdf |
SFIN 4/16/2016 3:00:00 PM |
SB 55 |
| SB 55 ASPS NWSPS Comments - Scope Optometric - AK SB55 - 04-15-16.pdf |
SFIN 4/16/2016 3:00:00 PM |
SB 55 |
| HB 118 - PACE Legislation Steele.pdf |
SFIN 4/16/2016 3:00:00 PM |
HB 118 |
| SB 55 Opposition Letter Reinhardt.pdf |
SFIN 4/16/2016 3:00:00 PM |
SB 55 |
| SB 55 work draft version G.pdf |
SFIN 4/16/2016 3:00:00 PM |
SB 55 |