Legislature(2013 - 2014)SENATE FINANCE 532

04/09/2013 09:00 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 30 STATE AGENCY PERFORMANCE AUDITS TELECONFERENCED
Scheduled But Not Heard
+= SB 96 OIL AND GAS AND GAS ONLY LEASES TELECONFERENCED
Scheduled But Not Heard
+ HB 94 CON AND NELLIE MILLER BRIDGES TELECONFERENCED
Moved SCS HB 94(FIN) Out of Committee
+ HB 84 MILITARY TRAINING CREDIT/TEMP. LICENSE TELECONFERENCED
Moved CSHB 84(FIN) Out of Committee
+ HB 99 EXTEND ALASKA MINERALS COMMISSION TELECONFERENCED
Moved CSHB 99(RES) Out of Committee
+ HB 153 NAMING WALTER J. HICKEL PARKWAY TELECONFERENCED
Moved CSHB 153(TRA) Out of Committee
+ HB 56 PASSENGER VEHICLE RENTAL TAX TELECONFERENCED
Moved HB 56 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  SENATE FINANCE COMMITTEE                                                                                      
                       April 9, 2013                                                                                            
                         9:12 a.m.                                                                                              
                                                                                                                                
9:12:30 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer  called the  Senate Finance Committee  meeting                                                                   
to order at 9:12 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative   Doug   Isaacson;  Darrell   Breese,   Staff,                                                                   
Representative  Bill  Stoltze;  Representative  Dan  Saddler;                                                                   
Kris  Curtis,   Auditor,  Division   of  Legislative   Audit;                                                                   
Representative Bob  Lynn; James Waldo, Staff,  Representative                                                                   
Lindsey Holmes;                                                                                                                 
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Scott  Thomas, Architect,  Engineering  Division,  Department                                                                   
of  Transportation  and Public  Facilities,  Anchorage;  Mark                                                                   
San  Souci,  Liaison,  Department of  Self  Defense,  Tacoma,                                                                   
Washington; Brandon  Spanos, Audit Supervisor,  Tax Division,                                                                   
Department   of  Revenue;  Nancy   Hull,  Alaska   Motorcycle                                                                   
Adventures, Mat-Su Valley;                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB  96    OIL AND GAS AND GAS ONLY LEASES                                                                                       
                                                                                                                                
          SB 96 was SCHEDULED but not HEARD.                                                                                    
HB  56    PASSENGER VEHICLE RENTAL TAX                                                                                          
                                                                                                                                
          HB  56 was  REPORTED out  of committee  with a  "do                                                                   
          pass"    recommendation    and   with    previously                                                                   
          published fiscal impact note: FN1 (REV).                                                                              
                                                                                                                                
CS HB 30(FIN)                                                                                                                   
          STATE AGENCY PERFORMANCE AUDITS                                                                                       
                                                                                                                                
          CS HB 30(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
CS HB 84(FIN)                                                                                                                   
          MILITARY TRAINING CREDIT/TEMP. LICENSE                                                                                
                                                                                                                                
          CS HB  84(FIN) was REPORTED  out of  committee with                                                                   
          a  "do  pass" recommendation  and  with  previously                                                                   
          published   zero  fiscal  notes:  FN1   (EED),  FN2                                                                   
          (LWF), FN3 (UA), and FN5 (CED).                                                                                       
                                                                                                                                
HB  94    CON AND NELLIE MILLER BRIDGES                                                                                         
                                                                                                                                
          HB  94 was  REPORTED out  of committee  with a  "do                                                                   
          pass"  recommendation   and  with  two  new  fiscal                                                                   
          impact  notes  from  Department  of  Transportation                                                                   
          and Public Facilities.                                                                                                
                                                                                                                                
CS HB 99(RES)                                                                                                                   
          EXTEND ALASKA MINERALS COMMISSION                                                                                     
                                                                                                                                
          CS HB  99(RES) was REPORTED  out of  committee with                                                                   
          a  "do  pass" recommendation  and  with  previously                                                                   
          published fiscal impact note: FN2 (CED).                                                                              
                                                                                                                                
CS HB 153(TRA)                                                                                                                  
          NAMING WALTER J. HICKEL PARKWAY                                                                                       
                                                                                                                                
          CS HB  153(TRA) was REPORTED out of  committee with                                                                   
          a  "do  pass" recommendation  and  with  previously                                                                   
          published fiscal impact note: FN1 (DOT).                                                                              
                                                                                                                                
HOUSE BILL NO. 94                                                                                                             
                                                                                                                                
     "An  Act  naming  the  northbound  Chena  Flood  Channel                                                                   
     Crossing  Bridge  the Nellie  Miller  Bridge and  naming                                                                   
     the southbound  Chena Flood Channel Crossing  Bridge the                                                                   
     Con Miller Bridge."                                                                                                        
9:14:19 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly MOVED to ADOPT the proposed committee                                                                            
substitute for HB 94, Work Draft 28-LS0407\N (Martin,                                                                           
4/8/13).                                                                                                                        
                                                                                                                                
Co-Chair Meyer OBJECTED for discussion.                                                                                         
                                                                                                                                
9:15:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DOUG ISAACSON, explained HB 94. He looked at                                                                     
the Sponsor Statement (copy on file).                                                                                           
                                                                                                                                
     Conrad "Con"  and Nellie Miller  were some of  the early                                                                   
     settlers of  the City of  North Pole, arriving  there in                                                                   
     1950.  Con joined  the Navy  after leaving  home at  the                                                                   
     age  of 15 and  served in  China from  1927 to  1931. He                                                                   
     worked  on the construction  of the  Hoover Dam  after a                                                                   
     brief stint  as a sheriff  and private investigator.  He                                                                   
     later  re-enlisted  in the  Navy  during  World War  II,                                                                   
     serving  in the  South  Pacific. Nellie  was  one of  15                                                                   
     children raised  in Idaho Springs, Colorado  and married                                                                   
     Con  in 1938 at  the age  of 15.  Like many of  Alaska's                                                                   
     early pioneers,  Nellie and Con moved to  Alaska in 1950                                                                   
     with $1.40  in their pocket and seeking  a new beginning                                                                   
     for  their small  family.  Con and  Nellie Miller  built                                                                   
     their  first business,  a clothing  store, in  Fairbanks                                                                   
     and  Con travelled  to  rural  communities  to sell  his                                                                   
     wares.  When  he  travelled,   he  often  donned  a  red                                                                   
     crushed  velvet  Santa  suit,  part  of  the  stock  the                                                                   
     couple brought  north from a previous business.  As they                                                                   
     began  to build  their store  in North  Pole in 1952,  a                                                                   
     child of  a customer from  Northway asked Con if  he was                                                                   
     building  a house for  Santa Claus  and the name  stuck.                                                                   
     The store became Santa Claus House.                                                                                        
                                                                                                                                
     Con and  Nellie were known  as Santa and Mrs.  Claus and                                                                   
     their family  store brought  worldwide attention  to the                                                                   
     City  of North  Pole, Alaska.  The store  has grown  and                                                                   
     evolved  over  time into  the  icon that  stands  today,                                                                   
     including  the 42-foot,  900  pound  Santa Claus  statue                                                                   
     outside that  entices visitors from around  the globe to                                                                   
     celebrate  Christmas year-around.  Con  was the  longest                                                                   
     serving  mayor of  North  Pole, dedicating  19 years  of                                                                   
     leadership.    In   1952    he   carried   the    city's                                                                   
     incorporation  papers  to  Juneau.  He  also  served  as                                                                   
     North Pole's  postmaster and civil defense  director for                                                                   
     20 years  as well as serving  as the fire  chief. Nellie                                                                   
     served on  the local school  board, as the  postmistress                                                                   
     and    as   the   town's    magistrate   and    marriage                                                                   
     commissioner.                                                                                                              
                                                                                                                                
     The  Millers  raised  three children:  sons,  Terry  and                                                                   
     Mike; and  daughter, Merry  Christmas Miller.  Their two                                                                   
     sons  served in  both  the Alaska  State  House and  the                                                                   
     Alaska State  Senate and  hold the distinction  of being                                                                   
     the  only two  siblings  in the  United  States to  have                                                                   
     presided as  Senate President. Terry Miller  also served                                                                   
     as  Lt. Governor.  For their  commitment  to Alaska  and                                                                   
     their role in  developing the City of North  Pole, it is                                                                   
     fitting that  the Chena Flood  Channel Bridges  be named                                                                   
     for  these two  distinguished  Alaskans. The  Northbound                                                                   
     Bridge  #1364  shall  be  known  as  the  Nellie  Miller                                                                   
     Bridge and  the Southbound  Bridge #1866 shall  be known                                                                   
     as the Con Miller Bridge.                                                                                                  
                                                                                                                                
Representative  Isaacson  furthered  that  he  supported  the                                                                   
addition  of  the   Lowell  J.  Ray  Memorial   Corridor,  in                                                                   
Wasilla, to the bill.                                                                                                           
                                                                                                                                
9:18:32 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer queried  the changes  between  version A  and                                                                   
version N of the legislation.                                                                                                   
                                                                                                                                
Representative  Isaacson explained  that the  title had  been                                                                   
changed in  the N  version to accommodate  both the  Lowell J                                                                   
Memorial   Corridor   and   the    change   in   the   Senate                                                                   
Transportation Committee  to designate the Miller's  by their                                                                   
cultural moniker the "original Mr. and Mrs. Santa Clause."                                                                      
                                                                                                                                
9:19:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer   REMOVED  his  OBJECTION.  There   being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
9:19:31 AM                                                                                                                    
                                                                                                                                
DARRELL   BREESE,   STAFF,   REPRESENTATIVE   BILL   STOLTZE,                                                                   
explained  the  addition  of   the  Lowell  J.  Ray  Memorial                                                                   
Corridor to the  legislation. Mr. Ray served 16  years in the                                                                   
Navy,  10 years  in the Air  Force and  20 years  as a  civil                                                                   
servant working  for the Department  of Defense.  He improved                                                                   
the  "do line'  radar system  that served  Alaska and  Canada                                                                   
during  the Cold  War.  His work  extended  the  life of  the                                                                   
radar system an  additional 10 years and  saved approximately                                                                   
$12 million  per radar  system. His  knowledge of the  system                                                                   
leg him  to instruct allies  in Germany, Britain,  and Canada                                                                   
in  the  enhancement   of  their  radar  systems.   When  the                                                                   
Department of  Transportation (DOT) made improvements  to the                                                                   
Parks   Highway  through   Wasilla,   through  the   purchase                                                                   
agreement  of the property  for right-of-way,  a promise  was                                                                   
made  to Ray's  family  that the  section  of  road would  be                                                                   
named  after Ray.  The  department had  dropped  the ball  on                                                                   
that promise  and  so the change  was an  attempt to  fulfill                                                                   
the promise.                                                                                                                    
                                                                                                                                
9:22:21 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  wondered if there were  homes adjacent                                                                   
to the corridor.                                                                                                                
                                                                                                                                
Mr.  Breese replied  that there  were homes  adjacent to  the                                                                   
corridor.  He shared  that  by naming  the  small section  of                                                                   
corridor  the  name  of  the   road  would  not  change.  The                                                                   
addresses of the homes would remain the same.                                                                                   
                                                                                                                                
9:23:06 AM                                                                                                                    
                                                                                                                                
Senator   Dunleavy    remarked   that   he    supported   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
9:23:33 AM                                                                                                                    
                                                                                                                                
Senator  Bishop expressed  support  for  the legislation.  He                                                                   
commented  that DOT  had made  a  promise to  the family  and                                                                   
hoped that the  department could find it within  their budget                                                                   
to zero out the fiscal notes.                                                                                                   
                                                                                                                                
9:24:38 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer OPENED  public  testimony.  There being  none                                                                   
Co-Chair  Meyer CLOSED  public  testimony. He  noted the  two                                                                   
fiscal impact notes.                                                                                                            
                                                                                                                                
9:24:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:02 AM                                                                                                                    
RECONVENED                                                                                                                      
SCOTT  THOMAS, ARCHITECT,  ENGINEERING  DIVISION,  DEPARTMENT                                                                   
OF  TRANSPORTATION  AND  PUBLIC  FACILITIES,  ANCHORAGE  (via                                                                   
teleconference),  spoke  to  the  promise  made  to  the  Ray                                                                   
family.  He  stated  that  DOT  did not  have  the  power  to                                                                   
memorialize  highways; highway  memorials were a  legislative                                                                   
per  view.  He  stated  that  an  effort  had  been  made  to                                                                   
approach   the  Mat-Su   Borough  to   research  how   street                                                                   
addressing   would  be   effected,  as   well  as   emergency                                                                   
response.  The department  had asked  to rename  the road  in                                                                   
terms of  the green  street signs that  were found  atop stop                                                                   
signs,  but the  choice rested  with  the borough  as to  how                                                                   
street  addressing,  mail  delivery  and  emergency  response                                                                   
should be  handled; East Blue  Lupine had been chosen  by the                                                                   
borough instead.  He said that the department  had approached                                                                   
the legislature  on the  matter, which was  why the  bill was                                                                   
before the  committee.  He asserted that  the department  did                                                                   
not leave the  issue unaddressed but pursued it  the only way                                                                   
that it had the authority.                                                                                                      
                                                                                                                                
9:27:46 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer wondered  if the department  had the  $10,000                                                                   
it would cost to put up the signs.                                                                                              
                                                                                                                                
Mr.  Thomas responded  no.  He  added that  the  sign on  the                                                                   
Richardson  Highway could  not  be white  letters  on a  blue                                                                   
background  because  federal  conditions  allowed  for  white                                                                   
letters on a brown background only.                                                                                             
                                                                                                                                
9:28:52 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer stated  that he was not going  to wrestle over                                                                   
$10,000.                                                                                                                        
                                                                                                                                
9:28:56 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  MOVED to REPORT  HB 94 out of  committee with                                                                   
individual  recommendations   and  the  accompanying   fiscal                                                                   
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB  94  was  REPORTED  out of  committee  with  a  "do  pass"                                                                   
recommendation  and with  two  new fiscal  impact notes  from                                                                   
Department of Transportation and Public Facilities.                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 84(FIN)                                                                                                 
                                                                                                                                
     "An  Act   relating  to  applying  military   education,                                                                   
     training, and  service credit to occupational  licensing                                                                   
     and  certain  postsecondary   education  and  employment                                                                   
     training   requirements;  providing   for  a   temporary                                                                   
     occupational  license  for  qualified  military  service                                                                   
     members; and providing for an effective date."                                                                             
                                                                                                                                
9:30:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN SADDLER, gave a sponsor statement:                                                                           
                                                                                                                                
     According  to the Department  of Defense, the  September                                                                   
     2012,  jobless  rate  for post-9/11  veterans  was  9.9%                                                                   
     with young  male Veterans  (ages 18 to 24)  experiencing                                                                   
     an  unemployment  rate  of   18.1  percent.  Last  year,                                                                   
     Alaska had  over 1200 service members separate  from the                                                                   
     military  from  our  posts  and bases.  These  are  1200                                                                   
     potential  workers who could  contribute to  our state's                                                                   
     economy.  It  is  our  responsibility  to  assist  their                                                                   
     transition   into    our   work   force    swiftly   and                                                                   
     appropriately.                                                                                                             
                                                                                                                                
     Our  nation's  military   is  one  of  the  most  highly                                                                   
     trained  in   the  world.   These  men  and   women  who                                                                   
     undertake  this  challenge  face unique  challenges  and                                                                   
     sacrifice many  things that the general  population does                                                                   
     not.  We owe  it to  our men  and women  to ensure  that                                                                   
     their  distinctive  set of  skills do  not  go to  waste                                                                   
     once  they  separate  from the  military.  These  highly                                                                   
     trained   individuals  deserve   to  remain   productive                                                                   
     members of society  and to be able to  provide for their                                                                   
     families.                                                                                                                  
                                                                                                                                
     HB 84 requires  the Division of Professional  Licensing,                                                                   
     University   of   Alaska  and   vocational   educational                                                                   
     facilities  to   examine  the  credentials   of  related                                                                   
     military   experience.  Relevant   military   experience                                                                   
     would  be   credited  for  licensing   requirements  and                                                                   
     educational  credit  would  be granted  for  appropriate                                                                   
     training.                                                                                                                  
                                                                                                                                
     In  the  last 10  years  our  military has  seen  record                                                                   
     numbers  of deployments. HB  84 is one  way we  can show                                                                   
     our   thanks  and   allow   our  service   members   the                                                                   
     opportunity to create positive and productive futures.                                                                     
                                                                                                                                
                                                                                                                                
Representative  Saddler  shared  that service  members  often                                                                   
experience  delays  and  lost  opportunities  qualifying  for                                                                   
licenses  and academic  credit  even though  they had  highly                                                                   
qualified  training  and experience.  The  legislation  would                                                                   
make it  more likely that veterans  in Alaska could  get jobs                                                                   
and  advance  their  civilian  careers  by  accelerating  the                                                                   
licensing  process and  the  process of  gaining  educational                                                                   
credit.  The  state currently  faced  forced  reductions  and                                                                   
significant  budget  cuts,  coupled   by  the  sequestration,                                                                   
which could  force more  veterans to  seek civilian  jobs. He                                                                   
said that  19 states  had enacted  legislation similar  to HB
84  as  of  July  2012,  and   30  were  considering  similar                                                                   
legislation  in  2013. He  believed  that  the state  had  an                                                                   
obligation  to find  ways  to  give Alaska's  veterans  every                                                                   
opportunity  to  leverage  their   military  experience  into                                                                   
academic  credit, job  certification  or vocational  training                                                                   
credits.                                                                                                                        
                                                                                                                                
9:32:40 AM                                                                                                                    
                                                                                                                                
MARK  SAN  SOUCI,  REGIONAL  LIAISON  FOR  MILITARY  FAMILIES                                                                   
NORTHWEST,  DEPARTMENT OF  DEFENSE,  TACOMA, WASHINGTON  (via                                                                   
teleconference),   expressed  the  departments   support  and                                                                   
gratitude  for the legislation.  He noted  that the  training                                                                   
that  members  of  the  military received  was  paid  for  by                                                                   
federal tax  dollars. Additionally, the department  supported                                                                   
the 2014 effective date.                                                                                                        
                                                                                                                                
9:33:59 AM                                                                                                                    
                                                                                                                                
Senator Bishop spoke  to Section 4 of the bill.  He commented                                                                   
that   the  Department   of  Labor   should   reach  out   to                                                                   
organizations  that  already  accepted  military  records  on                                                                   
their   military   discharge   papers  for   application   to                                                                   
apprenticeship programs.                                                                                                        
                                                                                                                                
9:35:13 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
Co-Chair  Kelly  MOVED  to  REPORT   CS  HB  84(FIN)  out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair Meyer OBJECTED for the purpose of discussion.                                                                          
                                                                                                                                
9:35:44 AM                                                                                                                    
Vice-Chair Fairclough noted the multiple zero fiscal notes.                                                                     
                                                                                                                                
9:35:59 AM                                                                                                                    
                                                                                                                                
Representative  Saddler  noted   that  former  Representative                                                                   
Bill  Thomas  had  done  much  of the  initial  work  on  the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough queried fiscal notes.                                                                                     
                                                                                                                                
Co-Chair  Meyer   REMOVED  his  OBJECTION.  There   being  NO                                                                   
further OBJECTION, it was so ordered.                                                                                           
                                                                                                                                
CS  HB 84(FIN)  was  REPORTED  out of  committee  with a  "do                                                                   
pass"  recommendation  and  with  previously  published  zero                                                                   
fiscal  notes:  FN1  (EED),  FN2 (LWF),  FN3  (UA),  and  FN5                                                                   
(CED).                                                                                                                          
                                                                                                                                
9:37:35 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:38:31 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 99(RES)                                                                                                 
                                                                                                                                
     "An Act relating to the membership of the Alaska                                                                           
     Minerals Commission; and extending the termination                                                                         
     date of the Alaska Minerals Commission."                                                                                   
                                                                                                                                
9:38:58 AM                                                                                                                    
                                                                                                                                
Representative  Saddler explained  that HB  99 would  help to                                                                   
ensure  the   growth  and  sustainability  of   the  minerals                                                                   
development  and   mining  sector  of  Alaska's   economy  by                                                                   
extending  the Alaska  Minerals Commission  by an  additional                                                                   
10 years. The  commission was established by  the legislature                                                                   
in  1986 and  has  since been  reauthorized  four times.  The                                                                   
commission  is responsible  for  identifying  road blocks  to                                                                   
mineral   development   in   the   state   and   for   making                                                                   
recommendations  to the governor  and the legislature  on how                                                                   
to  clear any  obstacles. The  commission  meets three  times                                                                   
per   year  in   Anchorage,  Fairbanks,   and  Juneau   where                                                                   
commissioners  deliver  an  annual   report  to  the  capital                                                                   
during the first  ten days of the legislative  session. Since                                                                   
the commission's  last  reauthorization in  2003 it had  made                                                                   
several key  recommendations which the legislature  had since                                                                   
implemented or was currently working on putting into place:                                                                     
                                                                                                                                
   · Reforming the state's permitting process to make                                                                           
     permitting more timely and efficient                                                                                       
                                                                                                                                
   · Funding infrastructure development under the Roads to                                                                      
     Resources program                                                                                                          
                                                                                                                                
   · Asserting and defending public access to roads, trails                                                                     
     and navigable waters                                                                                                       
                                                                                                                                
Representative Saddler  reiterated that the commission  was a                                                                   
proven  and  affordable  voice  for an  important  sector  of                                                                   
Alaska's   economy;  mining  employed   4,500  Alaskans   and                                                                   
provided over  $600 million in  direct and indirect  payroll.                                                                   
The bill  provided for three  year terms  and a limit  of two                                                                   
consecutive terms,  in addition to  the annual election  of a                                                                   
chair and a vice-chair.                                                                                                         
                                                                                                                                
9:41:14 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer   queried  when   the  commission   was  last                                                                   
audited.                                                                                                                        
                                                                                                                                
Representative  Saddler  replied that there had  never been a                                                                   
request made to audit the commission.                                                                                           
                                                                                                                                
9:41:33 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer understood  that the bill would  provide for a                                                                   
10  year  sunset  date.  He  wondered   if  the  request  was                                                                   
standard.                                                                                                                       
                                                                                                                                
Representative Saddler  replied in the affirmative.  He added                                                                   
that the  commission had previously  received several  5 year                                                                   
extensions and one 10 year extension.                                                                                           
                                                                                                                                
9:42:35 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   AUDITOR,  DIVISION   OF  LEGISLATIVE   AUDIT,                                                                   
testified   that  the   division  had   no  opinion   on  the                                                                   
legislation  because it  had not  performed an  audit on  the                                                                   
commission. She  furthered that the commission  was an entity                                                                   
that was not subject to mandatory audits.                                                                                       
                                                                                                                                
9:43:22 AM                                                                                                                    
Vice-Chair  Fairclough  asked what  the  state was  currently                                                                   
spending to operate the commission.                                                                                             
                                                                                                                                
Representative  Saddler responded  approximately $13,000  per                                                                   
year,  which  included  travel   to  meetings,  the  cost  of                                                                   
printing the annual report and minimal staff support.                                                                           
                                                                                                                                
Co-Chair  Meyer asked  if the  report on  the commission  was                                                                   
available to the public.                                                                                                        
                                                                                                                                
Representative said that printed  copies had been distributed                                                                   
earlier in  the session  and the PDF  version could  be found                                                                   
online at the Department of Commerce,  Community and Economic                                                                   
Development website.                                                                                                            
                                                                                                                                
Co-Chair Meyer noted the fiscal note for $13,000.                                                                               
                                                                                                                                
9:44:43 AM                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  MOVED  to  REPORT   CS  HB  99(RES)  out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 99(RES)  was  REPORTED  out of  committee  with a  "do                                                                   
pass"  recommendation and  with  previously published  fiscal                                                                   
impact note: FN2 (CED).                                                                                                         
                                                                                                                                
9:45:14 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:48:33 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 153(TRA)                                                                                                
                                                                                                                                
     "An Act designating Minnesota Drive and a portion of                                                                       
     O'Malley Road in Anchorage the Walter J. Hickel                                                                            
     Parkway."                                                                                                                  
                                                                                                                                
9:49:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BOB   LYNN,  explained  that  HB   153  would                                                                   
designate  a  7.5 mile  portion  of  Minnesota Drive  as  the                                                                   
Walter  J.  Hickel  Parkway. The  change  would  involve  the                                                                   
placement of  two road signs.  He offered a brief  history of                                                                   
the legacy of Walter J. Hickel.                                                                                                 
                                                                                                                                
9:50:31 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  wondered why  the  particular  7.5 miles  of                                                                   
road was chosen.                                                                                                                
                                                                                                                                
Representative  Lynn  responded that the section  of road was                                                                   
chosen in  an effort that no  addresses would be  required to                                                                   
change.                                                                                                                         
                                                                                                                                
9:51:42 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer wondered about the size of the sign.                                                                             
                                                                                                                                
Representative Lynn  responded that there would  be two signs                                                                   
on each end of the 7.5 mile stretch  that would be of similar                                                                   
size to other existing signs.                                                                                                   
                                                                                                                                
9:52:26 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman wondered  if there  was dedication  ceremony                                                                   
planned.                                                                                                                        
                                                                                                                                
Representative  Lynn replied  that once  the bill was  signed                                                                   
then the dedication ceremony would be planned.                                                                                  
                                                                                                                                
9:52:50 AM                                                                                                                    
                                                                                                                                
Senator   Bishop   thanked  Representative   Lynn   for   the                                                                   
proposal.                                                                                                                       
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
9:53:20 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer noted the fiscal note for $15,000.                                                                               
                                                                                                                                
9:53:59 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough  noted that  the fiscal note  reflected                                                                   
the  use  of  the 2009  Manual  of  Uniform  Traffic  Control                                                                   
Devices  for examining  where signs should  be positioned  on                                                                   
roadways. She  noted that her  physical address was  in Eagle                                                                   
River and  that she  had seen an  increasing amount  of signs                                                                   
erected on single posts. She quoted the fiscal note:                                                                            
     "The memorial or dedication signing shall be limited                                                                       
     to one side at an appropriate location in each route                                                                       
     direction, each as an independent sign installation."                                                                      
                                                                                                                                
Vice-chair  Fairclough wondered  whether the  code should  be                                                                   
modified  in  an  effort  to   co-locate  some  informational                                                                   
signs.                                                                                                                          
                                                                                                                                
Mr.  Thomas  responded  that   historically  bridge  memorial                                                                   
signs  had been  co-located  with  the signs  containing  the                                                                   
name of  the river. In the  case of major highways  two posts                                                                   
were generally used.                                                                                                            
                                                                                                                                
9:55:59 AM                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  MOVED  to  REPORT  CS  HB  153(TRA)  out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 153(TRA)  was REPORTED  out  of committee  with a  "do                                                                   
pass"  recommendation and  with  previously published  fiscal                                                                   
impact note: FN1 (DOT).                                                                                                         
                                                                                                                                
9:56:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
10:00:04 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 56                                                                                                             
                                                                                                                                
     "An Act excluding motorcycles and motor-driven cycles                                                                      
     from the passenger vehicle rental tax; and providing                                                                       
     for an effective date."                                                                                                    
                                                                                                                                
JAMES   WALDO,   STAFF,   REPRESENTATIVE    LINDSEY   HOLMES,                                                                   
explained  that  the  bill  would   eliminate  the  passenger                                                                   
vehicle  rental for the  purposes of  motorcycle rentals.  He                                                                   
noted the motorcycle  rentals contributed to a  small portion                                                                   
of the  passenger vehicle  rental tax.  He relayed  that when                                                                   
the   tax   was  originally   passed   by   the   legislature                                                                   
motorcycles  had not  been  considered.  The legislature  had                                                                   
exempted recreation  vehicles such as RV rentals  from the 10                                                                   
percent  tax. He asserted  that motorcycles  were rented  for                                                                   
recreational tourism  only and  only during certain  times of                                                                   
the year.  He stated  that the  cost of  rental a  motorcycle                                                                   
was  significantly higher  than  renting  a car.  Motorcycles                                                                   
were rented  for approximately $200  per day, which  made the                                                                   
10 percent  tax, over a 10  day excursion, nearly as  much as                                                                   
another  day's  rental.  Travelers  that  rented  motorcycles                                                                   
stayed  in  hotels  and  eat  in  restaurants,  thus  already                                                                   
contributing  to  the  states  local  sales  and  bed  taxes.                                                                   
Elimination  of   the  tax  would   aid  people   in  growing                                                                   
motorcycle  rental businesses  in the state  and would  bring                                                                   
more  independent  travelers  into  the  state  for  extended                                                                   
visits.                                                                                                                         
                                                                                                                                
10:03:32 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer   noted  that  the  bill  sponsor   had  been                                                                   
amicable to a  smaller tax amount, but once  the total amount                                                                   
of the smaller  tax was examined  it was clear that  the cost                                                                   
to  collect  the tax  would  surpass  the revenues  it  would                                                                   
generate.                                                                                                                       
                                                                                                                                
10:04:13 AM                                                                                                                   
                                                                                                                                
Co-Chair   Meyer  wondered   about   the   impetus  for   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Mr. Waldo  responded that the  concept was introduced  by the                                                                   
motorcycle rental  businesses. The Department of  Revenue had                                                                   
only decided a  few years prior to tax the  businesses, which                                                                   
had  been a  surprise  to the  industry.  The department  had                                                                   
originally  asked for back  taxes for  the previous  19 years                                                                   
that they  had been collection  the passenger  vehicle rental                                                                   
tax, but had decided against the punitive measure.                                                                              
                                                                                                                                
10:05:48 AM                                                                                                                   
                                                                                                                                
Senator Bishop wondered if snow machine rentals were taxed.                                                                     
                                                                                                                                
BRANDON SPANOS,  AUDIT SUPERVISOR,  TAX DIVISION,  DEPARTMENT                                                                   
OF  REVENUE  (via  teleconference),  testified  that  he  was                                                                   
unsure whether  snow machines were  taxed. He offered  to get                                                                   
back to the committee with the information.                                                                                     
                                                                                                                                
10:06:52 AM                                                                                                                   
Co-Chair  Meyer though  that the  tax would  pertain to  snow                                                                   
machines.                                                                                                                       
                                                                                                                                
Mr.  Spanos  understood that  the  tax  was for  highway  use                                                                   
vehicles.                                                                                                                       
                                                                                                                                
10:07:14 AM                                                                                                                   
                                                                                                                                
NANCY  HULL,  ALASKA  MOTORCYCLE  ADVENTURES,  MAT-SU  VALLEY                                                                   
(via teleconference), testified in support of HB 56.                                                                            
                                                                                                                                
10:09:29 AM                                                                                                                   
                                                                                                                                
Co-Chair  Meyer noted  that Ms.  Hull  had submitted  written                                                                   
testimony as well(copy on file).                                                                                                
                                                                                                                                
10:09:48 AM                                                                                                                   
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
10:10:01 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough noted  the fiscal  note reflected  the                                                                   
loss  of revenue  of  $12,000  per year  from  FY15 and  into                                                                   
future years.                                                                                                                   
                                                                                                                                
10:10:29 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough   MOVED  to   REPORT  HB  56   out  of                                                                   
committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal  note. There  being NO OBJECTION,  it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
HB  56  was  REPORTED  out of  committee  with  a  "do  pass"                                                                   
recommendation  and with previously  published fiscal  impact                                                                   
note: FN1 (REV).                                                                                                                
                                                                                                                                
10:10:59 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough wondered  if  an amendment  for HB  30                                                                   
could be considered at the 1:30pm meeting.                                                                                      
                                                                                                                                
Co-Chair Meyer said yes.                                                                                                        
                                                                                                                                
CS FOR HOUSE BILL NO. 30(FIN)                                                                                                 
                                                                                                                                
     "An  Act relating  to performance  reviews, audits,  and                                                                   
     termination   of   executive  and   legislative   branch                                                                   
     agencies,  the  University  of Alaska,  and  the  Alaska                                                                   
    Court System; and providing for an effective date."                                                                         
                                                                                                                                
HB 30 was SCHEDULED but not HEARD.                                                                                              
                                                                                                                                
SENATE BILL NO. 96                                                                                                            
                                                                                                                                
     "An Act  relating to  the primary period  of an  oil and                                                                   
     gas  or gas only  lease and  the extension  of a  lease;                                                                   
     relating to  terms to be included  in an oil and  gas or                                                                   
     gas only  lease; relating to  rental for an oil  and gas                                                                   
     or  gas  only  lease; and  providing  for  an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
SB 96 was SCHEDULED but not HEARD.                                                                                              
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:11:54 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:11 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
Austerman & Stolze.HB 30.ACLU Review.2013-02-12.pdf SFIN 4/9/2013 9:00:00 AM
HB 30
HB 30 -- Sponsor Statement.PDF SFIN 4/9/2013 9:00:00 AM
HB 30
HB 30 History and Summary of Changes.PDF SFIN 4/9/2013 9:00:00 AM
HB 30
HB 30 Sectional Analysis.PDF SFIN 4/9/2013 9:00:00 AM
HB 30
HB 30 Sunset in Texas.PDF SFIN 4/9/2013 9:00:00 AM
HB 30
SB 96 S4th fl00r 13040808320.pdf SFIN 4/9/2013 9:00:00 AM
SB 96
SB 96 Sectional.pdf SFIN 4/9/2013 9:00:00 AM
SB 96
SB 96_SFIN_4-8-13.pdf SFIN 4/9/2013 9:00:00 AM
SB 96
SB96.Apache letter.pdf SFIN 4/9/2013 9:00:00 AM
SB 96
Sponsor Statement SB 96.pdf SFIN 4/9/2013 9:00:00 AM
SB 96
HB 94_press release_passage.pdf SFIN 4/9/2013 9:00:00 AM
HB 94
HB 94_Senate_FIN_hearing_request.pdf SFIN 4/9/2013 9:00:00 AM
HB 94
HB94- letter of support-Marshall.pdf SFIN 4/9/2013 9:00:00 AM
HB 94
HB94 Newsminer_March_23_2013.pdf SFIN 4/9/2013 9:00:00 AM
HB 94
HB94- Sponsor Statement.pdf SFIN 4/9/2013 9:00:00 AM
HB 94
HB 84 Sara Chambers - Follow Up Answers to Questions in HFIN 3-20-13.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB 84 Sectional Analysis.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB 84 Sponsor Statement.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB 84 Summary of Changes.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB 84 Supporting Documents - Letter Ed Kringer DOD 02112013.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB 84 Supporting Documents - Testimony - Mark San Souci Regional Liaison NW DOD 02182013.pdf SFIN 4/9/2013 9:00:00 AM
HB 84
HB99 AMA Letter.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 AMC 2013 Annual Report.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 CAP Letter.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 DCCED Letter.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 Economic Benifits of Mining.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 Explantion of Changes & Sectional Analysis.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 RDC Letter.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB99 Sponsor Statement.pdf SFIN 4/9/2013 9:00:00 AM
HB 99
HB153 Explanation of Changes.pdf SFIN 4/9/2013 9:00:00 AM
HB 153
HB153 Sponsor Statement.pdf SFIN 4/9/2013 9:00:00 AM
HB 153
HB153 Support Documents - Ak Republican Party Resolution.pdf SFIN 4/9/2013 9:00:00 AM
HB 153
HB153 Support Documents - Google Map.pdf SFIN 4/9/2013 9:00:00 AM
HB 153
HB153 Support Documents - Hickel Citation.pdf SFIN 4/9/2013 9:00:00 AM
HB 153
HB153 Support Documents - Wickersham Letter.PDF SFIN 4/9/2013 9:00:00 AM
HB 153
HB - 56 Letter of Support.pdf SFIN 4/9/2013 9:00:00 AM
HB 56
HB - 56 Sponsor Statement.pdf SFIN 4/9/2013 9:00:00 AM
HB 56
HB 56 - Backup AS 43.52.010 Vehicle Rental Taxes.pdf SFIN 4/9/2013 9:00:00 AM
HB 56