Legislature(2017 - 2018)SENATE FINANCE 532
04/07/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB31 | |
| HB48 | |
| SB50 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 48 | TELECONFERENCED | |
| + | SB 50 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 31 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 7, 2017
1:51 p.m.
1:51:22 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:51 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Mike Dunleavy
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Bianca Carpeneti, Staff, Representative Sam Kito; Kris
Curtis, Auditor, Legislative Audit; Michele Elfers, Board
Member, Alaska Professional Design Council, Juneau; Janey
Hovenden, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community
and Economic Development; Alicia Jones, Executive
Administrator, Board of Architects, Engineers, and Land
Surveyors; Representative Sam Kito, Sponsor; Senator Cathy
Giessel, Sponsor; Kari Nore, Staff, Senator Giessel; Mark
Neidhold, Chief, Design and Construction Standards,
Department of Transportation and Public Facilities; Mike
Lessman, Legislative Liaison, Alaska Department of Public
Safety.
PRESENT VIA TELECONFERENCE
Colin Maynard, AELS Board, Anchorage; Mike San Angelo,
Statewide Materials Engineer, Department of Transportation
and Public Facilities, Anchorage; Steven Wortham, Alyeska
Tires, Kenai; Franklin Wortham, Owner, Alyeska Tires,
Kenai; Bonnie Snyder, Self, MatSu; Vanessa Debach, Self,
MatSu; Judy Snyder, Owner, Diversified Tire, MatSu; Alfred
Meyer, Meyers Muffler City, Anchorage; Jeff Pasco, Self,
Ninilchik; Robert Looney, Self, Craig; Larry Opperman,
Self, Soldotna; Dave Hanson, Self, Anchorage; Richard
Nordness, Executive Director, Northwest Tires Dealers
Association, Washington; Garry Wessel, Bruno Wessel, Inc.,
New York; Brandon Spanos, Deputy Director, Tax Division,
Department of Revenue, Anchorage.
SUMMARY
SB 31 NO ST. EMPLOYEE PAY INCREASE FOR 2 YRS
SB 31 was REPORTED out of committee with "no
recommendation" and with one indeterminate fiscal
note from the Legislature; one zero fiscal note
from the Department of Revenue; and one fiscal
impact note from the Office of the Governor.
SB 50 INCREASE STUDDED TIRE FEE
SB 50 was HEARD and HELD in committee for further
consideration.
HB 48 ARCHITECTS,ENGINEERS,SURVEYORS: EXTEND Mr. Dale
HB 48 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 31
"An Act relating to compensation, merit increases, and
pay increments for certain public officials, officers,
and employees not covered by collective bargaining
agreements; and providing for an effective date."
1:53:09 PM
Vice-Chair Bishop MOVED to REPORT SB 31 from committee with
individual recommendations and accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
SB 31 was REPORTED out of committee with "no
recommendation" and with one indeterminate fiscal note from
the Legislature; one zero fiscal note from the Department
of Revenue; and one fiscal impact note from the Office of
the Governor.
1:53:18 PM
AT EASE
1:54:50 PM
RECONVENED
HOUSE BILL NO. 48
"An Act relating to the composition of the State Board
of Registration for Architects, Engineers, and Land
Surveyors; extending the termination date of the State
Board of Registration for Architects, Engineers, and
Land Surveyors; and providing for an effective date."
1:55:40 PM
BIANCA CARPENETI, STAFF, REPRESENTATIVE SAM KITO,
introduced the legislation.
1:57:08 PM
KRIS CURTIS, AUDITOR, LEGISLATIVE AUDIT, explained that the
purpose of a sunset audit was to determine whether the
board was serving the public interest, and whether it
served the public interest. She stated that it was found
that the State Board of Registration for Architects,
Engineers, and Land Surveyors (AELS Board) did serve the
public's interest by effectively registering and regulating
architects, engineers, and land surveyors.
Senator von Imhof remarked that the fiscal note had $29,600
included in the governor's FY 18 request, and the out-year
estimates had approximately the same number. She stated
that the funds would be covered with receipts. Ms.
Carpeneti replied in the affirmative.
Co-Chair MacKinnon commented on Ms. Carpeneti's family's
service to the state.
2:00:43 PM
COLIN MAYNARD, AELS BOARD, ANCHORAGE (via teleconference),
shared that he was available for questions. He announced
that there was a desire to keep a balance in the funds to
deal with a possible case.
Co-Chair MacKinnon wondered why it is wondered why the
board required a face-to-face meeting four times a year.
Mr. Maynard replied that two people must review each
application. He stated that it was easier to make
determinations when in the same place, rather than via
teleconference.
2:02:44 PM
AT EASE
2:03:54 PM
RECONVENED
2:04:15 PM
MICHELE ELFERS, BOARD MEMBER, ALASKA PROFESSIONAL DESIGN
COUNCIL, JUNEAU, testified in support of the bill and
support of providing a permanent board seat for landscape
architects.
Senator Olson queried the number of landscape architects
versus the number of architects and engineers. Ms. Elfers
announced that there were approximately 50 licensed
landscape architects in the state. She did not know the
number of architects or engineers. She shared that there
were also approximately 50 licensed mining engineers in the
state, and they had representation on the AELS Board.
Co-Chair MacKinnon CLOSED public testimony.
2:06:50 PM
JANEY HOVENDEN, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS, AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, introduced
herself.
Co-Chair MacKinnon queried the number of licensees in each
of the individual professional licensures.
2:07:36 PM
ALICIA JONES, EXECUTIVE ADMINISTRATOR, BOARD OF ARCHITECTS,
ENGINEERS, AND LAND SURVEYORS, replied that there were
approximately 3000 civil engineers; 843 mechanical
engineers; approximately 50 landscape architects; and 476
land surveyors. She agreed to provide further detailed
information.
Co-Chair MacKinnon wondered whether the licensing fee was
the same for each profession. She stressed that there was
travel associated with each position. Ms. Jones responded
that the fees were the same regardless of profession.
Senator von Imhof noted that page 5 of the audit had a list
of the different types of architects and engineers. She
noted that page 8 showed the different fees.
Senator Dunleavy noted that page 7 of the audit showed an
increased ending cumulative surplus, with the exception of
2013. He wondered whether there was a reimbursement with
the excess revenue. Ms. Hovenden noted that the surplus was
growing, and the fees were slightly reduced. She stated
that there was a hope to keep a "buffer." She stressed that
the lowered fees would slowly deplete the surplus.
Senator Dunleavy queried the definition of "they." Ms.
Hovenden replied that it was the board.
Co-Chair MacKinnon surmised that statute required
professional licensing to pay for itself, so there was some
fluctuation over time in account balances. Ms. Hovenden
agreed.
Ms. Jones revised her previous statement, and clarified
that there was a difference in the fees between those who
applied by exam versus those who applied by committee.
Ms. Hovenden shared that all the licensures fees were the
same.
Co-Chair MacKinnon queried the fee amount. Ms. Hovenden
replied that the fee was $150 for two years.
Co-Chair MacKinnon wondered whether there was a discount
for licensing two years out. Ms. Hovenden replied that it
was a set fee for two years.
Co-Chair MacKinnon queried comments.
2:12:45 PM
REPRESENTATIVE SAM KITO, SPONSOR, stated that the bill was
basically a sunset provision, with the one specific change
to allow for a permanent AELS Board position to a landscape
architect.
Vice-Chair Bishop addressed FN 1: CED.
Co-Chair MacKinnon announced that amendments were due by
Monday at 5pm.
SB 48 was HEARD and HELD in committee for further
consideration.
2:15:44 PM
AT EASE
2:16:36 PM
RECONVENED
SENATE BILL NO. 50
"An Act relating to fees for the sale or installation
of studded tires; and providing for an effective
date."
2:16:58 PM
SENATOR CATHY GIESSEL, SPONSOR, explained the legislation.
2:20:07 PM
KARI NORE, STAFF, SENATOR GIESSEL, discussed the Sectional
Analysis (copy on file):
Section 1: Amends AS 43.97.025(b)
This section amends the current statute in 3 ways. It
first increases the studded tire user fee from $5 to
$50, it reduces the weight of studs that fall under
this fee from 1.1 grams to 0.5 grams. It also ensures
that all tires sold through online retailers for use
in Alaska are subject to this fee.
Section 2: Adds a new subsection under AS 43.98.025
This section creates a new subsection (i) to establish
legislative intent that the funds generated from this
fee will be directed back to the Department of
Transportation for the repair and maintenance of state
maintained roads. It does not create a dedicated fund.
Section 3: Adds a new section into the uncodified law
of the State of Alaska
This section outlines that the act will apply to all
tire sales and stud installations on or after the
effective date.
Section 4: Effective Date
This Act would take effect on July 1, 2017.
MARK NEIDHOLD, CHIEF, DESIGN AND CONSTRUCTION STANDARDS,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
discussed the presentation, "Studded Tire Presentation"
(copy on file).
Mr. Neidhold looked at slide 2, "State Highway System
subject to Studded Tire Damage":
• Pavement Ruts: Longitudinal depressions in
the wheel paths
• High Traffic Volume, High Speed Roads are
more prone to Studded Tire Damage
Examples include:
• Glenn Highway (Anchorage area)
• Seward Highway (Anchorage area)
• Minnesota Drive (Anchorage)
• Egan Drive (Juneau)
Mr. Neidhold highlighted slide 3, "Rutting Evidence caused
by Studded Tire." He stated that the slide showed typical
road wear from studded tires on passenger vehicles.
Vice-Chair Bishop noted that the width of the ruts looked
like the width of a truck. He stressed that some of those
trucks used studded tires in the winter. Mr. Neidhold
replied that, typically, the larger trucks did not use
studs, but used chains. The intent of the slide was to show
that it was narrower than commercial vehicles.
Vice-Chair Bishop noted that some of the wear was caused by
trucks.
Senator Dunleavy queried the number of vehicles that used
studs versus vehicles that used chains. Mr. Neidhold agreed
to provide that information.
2:25:28 PM
MIKE SAN ANGELO, STATEWIDE MATERIALS ENGINEER, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, ANCHORAGE (via
teleconference), did not believe that the effect of the
ruts was not because of the base material due to heavy
loads. He stated that it was found that the rut was due to
removal of the surface of the road. He remarked that there
were previous pavements that would alter due to poor
construction of roads.
Co-Chair MacKinnon wondered whether the chains had caused
some of the rutting.
Senator Dunleavy queried the number of vehicles that used
studs versus vehicles that used chains. Mr. San Angelo
replied that he did not know that information.
Senator Dunleavy queried the studies on damage with chains
versus studs. Mr. San Angelo replied that there were no
studies in Alaska. He remarked that Parks Highway had
mostly truck traffic, and the pavements were lasting up to
25 years on that highway. The distress on that highway was
not rutting, but rather cracking distress.
Senator Dunleavy wondered whether there were fees for
chains. Mr. San Angelo responded that he did not know about
fees.
2:30:20 PM
Mr. Neidhold looked at slide 4, "Pavement Sampling Eagle
River Loop Road 13,000+ vehicles/day July 29, 2008." He
noted that the bottom surface of the slabs did not show
deflection.
Mr. Neidhold addressed slide 5, "Eagle River Loop Road
13,000+ vehicles/day July 29, 2008." He noted that there
was not a "shoving of material" out of the center area.
Mr. Neidhold discussed slide 6, "US Restrictions and
Permissions." He stated that the slide showed other state's
policies.
Mr. Neidhold addressed slide 7, "Safety and Environmental
Issues":
• Ruts become a Safety Hazard to the travelling
public:
• Icy road: Ice or snow in ruts causes addition loss
of traction
• Dry road: Difficulty steering and changing lanes
• Wet road: Hydroplaning potential due to water in
ruts • Studded tire use on bare pavement generates
dust, posing risk to human health
• Based on this human health risk, Japan banned
studded tires in 1990
Mr. Neidhold looked at slide 8, "Addressing Rut Damage":
• Rut Repair Trigger: Rut depth of ½inch triggers a
project to address rut repair; usually a 2year
turnaround to bidready plans
• Typical Fix: MillandFill in travel lanes
• Hard Aggregate Policy: Stipulates the use of hard
aggregate in the asphalt mix when the traffic volume
exceeds 5,000 vehicles per lane in areas prone to stud
use
• Potential fixes, i.e., Microsurfacing, a mix of
aggregate, polymerized asphalt, and water that is used
to fill the ruts using special paving equipment.
Road is open to traffic in ~2 hours.
Mr. Neidhold addressed slide 9, "Winter Driving":
• Automobile Technology Improvements
• Allwheel drive
• ABS braking
• Tire Technology Improvements
• Tire composition and tread
• Studless tires, e.g., XIce®, Blizzak™
• Better allseason tires
• Limited range of conditions in which studded tires
outperform alternatives
2:35:46 PM
STEVEN WORTHAM, ALYESKA TIRES, KENAI (via teleconference),
spoke to some concerns about the bill. He stated that
studless tires had not been proven to be as good as studded
tires. He stressed that, in certain conditions, studded
tires outperform studless tires, especially in the first
and last thirty feet between starting and stopping. He felt
that it could be the difference between life and death for
certain people. He feared that the results of the fees
would be the government picking winners and losers. He felt
that the tax disproportionately affected lower income
families.
2:39:28 PM
FRANKLIN WORTHAM, OWNER, ALYESKA TIRES, KENAI (via
teleconference), echoed the comments of Mr. S. Wortham. He
stressed that there was ordering that had already occurred,
so the tax could cause a loss of revenue.
Co-Chair MacKinnon wondered whether there was a rebate from
the state to collect the tax. Mr. F. Wortham replied that
there was a 5 percent rebate, or $900 per quarter.
2:42:37 PM
BONNIE SNYDER, SELF, MATSU (via teleconference), spoke
against the legislation. She felt that the restriction
would decrease safety.
2:45:17 PM
VANESSA DEBACH, SELF, MATSU (via teleconference), spoke
against the legislation.
2:47:15 PM
JUDY SNYDER, OWNER, DIVERSIFIED TIRE, MATSU (via
teleconference), spoke against the legislation.
2:50:18 PM
ALFRED MEYER, MEYERS MUFFLER CITY, ANCHORAGE (via
teleconference), opposed the bill.
2:53:11 PM
JEFF PASCO, SELF, NINILCHIK (via teleconference), testified
against the bill.
2:53:57 PM
ROBERT LOONEY, SELF, CRAIG (via teleconference), spoke
against the bill.
2:55:47 PM
LARRY OPPERMAN, SELF, SOLDOTNA (via teleconference),
testified against the bill.
Senator Micciche wondered how many winters that a new set
of studded tires could endure. Mr. Opperman replied that he
typically switched his tires in the season, and that his
tires could last five or six years.
3:00:56 PM
DAVE HANSON, SELF, ANCHORAGE (via teleconference),
testified against the legislation.
3:03:55 PM
RICHARD NORDNESS, EXECUTIVE DIRECTOR, NORTHWEST TIRES
DEALERS ASSOCIATION, WASHINGTON (via teleconference),
opposed the bill.
3:07:10 PM
GARRY WESSEL, BRUNO WESSEL, INC., NEW YORK (via
teleconference), spoke against the bill.
Co-Chair MacKinnon CLOSED public testimony.
3:10:23 PM
Senator Dunleavy wondered whether there would be ruts in
the roads without studded tires. Mr. Neidhold replied that
there would still be some ruts, but the ruts would not be
as significant without studded tires.
Senator Dunleavy queried the cause of the ruts with no
studs. Mr. Neidhold replied that ruts could be caused by
shoving.
Senator Dunleavy wondered whether heavy vehicles could
cause ruts. Mr. Neidhold responded in the affirmative.
Co-Chair MacKinnon surmised that friction and speed could
contribute to rutting. Mr. Neidhold agreed.
Senator Micciche recalled a study that compared a studded
tire and regular tire in a circular pattern. He wondered
whether the state performed that study. Mr. Neidhold
deferred to Mr. San Angelo.
Mr. San Angelo replied that the document was online for the
legislation. He explained that the design of the roads in
Alaska was meant to prevent rutting. He remarked that a
rutting failure due to shoving or heavy loads that the
roads were designed to prevent.
Senator Micciche wondered how the studies were not
anecdotal. He wondered whether there was as study comparing
asphalts that had been exposed to studded and nonstudded
tires. Mr. San Angelo replied that studded tires were
allowed in Alaska, so it was difficult to separate the data
set.
3:18:30 PM
MIKE LESSMAN, LEGISLATIVE LIAISON, ALASKA DEPARTMENT OF
PUBLIC SAFETY, felt that Senator Micciche was referring to
a 2004 study from the University of Alaska Anchorage, and
agreed to provide that information.
Senator Micciche queried the annual cost of the per mile
costs that were associated with studded tire wear on the
roads. Mr. Lessman replied that the average cost was
approximately $500,000 per lane mile for the repair for the
studded tire wear.
Co-Chair MacKinnon queried the how the department would
handle the increased fee.
3:20:52 PM
BRANDON SPANOS, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT
OF REVENUE, ANCHORAGE (via teleconference), replied that
there was a bill in congress that would allow states to tax
online sales. He stated that, currently, a company selling
online must have a taxable nexus in the state.
Co-Chair MacKinnon wondered whether the Department of
Revenue (DOR) had any online agreements for tax collection.
Mr. Spanos replied that there were no online sales taxes in
the state, other than the tire fee.
Co-Chair MacKinnon queried any assertions on the balance
between the weight and shipment costs; versus sales inside
the state. She recalled comments about the legislation
creating and "unfair playing field." Mr. Spanos replied
that there was no cost analysis for the shipping cost of
tires purchased online.
Co-Chair MacKinnon announced that the amendments were due
Monday by 5pm, and that the following day's meeting would
be canceled. She discussed the following week's schedule.
SB 50 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:26:48 PM
The meeting was adjourned at 3:26 p.m.