Legislature(2011 - 2012)SENATE FINANCE 532
02/24/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB27 | |
| SB136 | |
| SB68 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 27 | TELECONFERENCED | |
| += | SB 136 | TELECONFERENCED | |
| += | SB 68 | TELECONFERENCED | |
| += | SB 144 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 24, 2012
9:04 a.m.
9:04:54 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Bill Wielechowski; Darwin Peterson, Staff, Senator
Bert Stedman; Rynnieva Moss, Staff, Senator John Coghill;
Jordan Shilling, Intern, Senator John Coghill; Senator
Cathy Giessel.
SUMMARY
CSSB 27(HSS)
FLAME RETARDANTS AND TOXIC CHEMICALS
CSSB 27(HSS) was REPORTED out of committee with a
"do pass" recommendation and with a new zero
fiscal note from the Department of Health and
Social Services, a new zero fiscal note from the
Department of Public Safety, and a new fiscal
impact note from the Department of Environmental
Conservation.
SB 68 COMMERCIAL FISHING & AGRICULTURE BANK
SB 68 was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact
note from the Department of Commerce, Community
and Economic Development.
SB 136 INCOME TAX CREDIT FOR EMPLOYING A VETERAN
CSSB 136(FIN) was REPORTED out of committee with
a "do pass" recommendation and with a previously
published indeterminate fiscal note: FN1 (DOR).
SB 144 STATE IMMUNIZATION PROGRAM
SB 144 was SCHEDULED but not HEARD.
Co-Chair Stedman noted that SB 144 had been removed from
the agenda because the fiscal note had been received
several minutes prior to the meeting and had not been
reviewed yet; the bill would be rescheduled the after the
documents had been examined. Co-Chair Stedman stated that
this was the second hearing on SB 27. He observed that it
had been a while since the committee had first heard the
bill and requested a review.
CS FOR SENATE BILL NO. 27(HSS)
"An Act relating to flame retardants and to the
manufacture, sale, and distribution of products
containing flame retardants; relating to a multistate
chemicals clearinghouse; and providing for an
effective date."
9:06:03 AM
SENATOR BILL WIELECHOWSKI, read from a sponsor statement
(copy on file) and introduced SB 27. He stated that the
bill would ban the use polybrominated fire retardants
(PBDEs) from being manufactured, distributed, or sold in
the state of Alaska; the negative health effects of these
chemicals had been well documented, and their impact on
children was disproportionately high.
Alaskans are particularly vulnerable for three
reasons: We spend a lot of time indoors with little
ventilation, increasing our exposure to and ingestion
of the microscopic particles of toxins found in
household dust that are released from our furniture
and electronics; we eat subsistence foods that may
concentrate toxins; and through a process known as
global distillation, toxins such as PBDEs are carried
in the atmosphere for great distances from points of
manufacture and concentrate in cold climates.
He addressed several concerns that were raised during the
last hearing on the bill by stating that the legislation
would not impact fire safety and would not exempt products
from meeting existing fire safety standards; there was not
a trade-off where the legislature would be forced to decide
between the "lesser of two evils". He noted that there had
been concerns that the bill increased costs to consumers,
but indicated that this was not true. He explained that
similar bans had been adopted in the European Union,
Illinois, and Washington and that affordability had not
been an issue in those states. He directed the committee's
attention to a letter from an Illinois Representative named
Elaine Nekritz (copy on file); it stated that the Illinois
Environmental Protection Agency had conducted a
comprehensive study to determine if there were cost or
affordability issues associated with the state's ban on
PBDEs, but had determined that there were none.
Affordability issues did not exist because there were large
markets that had already exempted and banned PBDEs. He
stated that there were many companies that did not sell
PBDEs and gave an example that the prior summer Walmart had
adopted enhanced testing on products to insure that no
PBDEs were sold in their stores. He shared that he had not
heard anything from his constituents regarding increased
prices in consumer grids and anticipated that other
retailers would conform easily to the legislation. He
offered that the "simple truth" was that PBDEs were largely
being manufactured abroad; the legislation would protect
American jobs and the health of children from foreign
companies that sold products with toxic chemicals. He
concluded that the bill had widespread statewide support
from health officials and concerned citizens.
Co-Chair Stedman discussed a new zero fiscal note from the
Department of Health and Social Services, a new zero fiscal
note from the Department of Public Safety, and a new fiscal
impact note from the Department of Environmental
Conservation for $139,000 in general funds for a new full-
time environmental program specialist.
9:10:33 AM
Senator Ellis MOVED to report CSSB 27(HSS) out of committee
with individual recommendations and the accompanying fiscal
notes. There being NO OBJECTION, it was so ordered.
9:10:45 AM
CSSB 27(HSS) was REPORTED out of committee with a "do pass"
recommendation and with a new zero fiscal note from the
Department of Health and Social Services, a new zero fiscal
note from the Department of Public Safety, and a new fiscal
impact note from the Department of Environmental
Conservation.
SENATE BILL NO. 136
"An Act providing a tax credit for employing an Alaska
veteran that may be taken against a liability for the
tax on corporation income; and providing for an
effective date."
9:11:14 AM
Senator Ellis MOVED to ADOPT the proposed committee
substitute for SB 136, Work Draft 27-LS0983\R (Bullock,
2/16/12) as a working document.
9:11:19 AM
Co-Chair Stedman Objected for the purpose of discussion.
DARWIN PETERSON, STAFF, SENATOR BERT STEDMAN, explained
that the new CS version R incorporated four changes as
follows:
· Subsection B on page 1, line 9 was rewritten so
that in order for the tax credit to apply, the
veteran must have been unemployed for at least
four weeks.
· Page 1, line 13 now required the tax credit to be
applicable for up to ten years for disabled
veterans.
· On page 2, line 7 the amount of the tax credit
was increased to $3,000 for a disabled veteran;
the amount remained $2,000 for other veterans.
· On page 2, line 9 a $1,000 tax credit was added
for seasonal employment; under this section, a
veteran must be employed for at least 600 hours
for five consecutive months in order to qualify.
9:12:47 AM
Co-Chair Stedman WITHDREW his OBJECTION. Seeing NO FURTHER
OBJECTION, Work Draft 27-LS0983\R was ADOPTED.
Senator Wielechowski introduced SB 136 and stated that the
changes in the new CS made the legislation better. The bill
was designed assist veterans with the unemployment problem
that they were currently experiencing. He stated that there
had been concerns raised during a veterans summit in
Fairbanks and at a town hall meeting in Anchorage that
veterans had a higher than average unemployment rate state-
wide, as well as on the national level.
Senator Wielechowski explained that the first Section of
the bill specified that you could take a tax credit for
employing a veteran; the credit could be taken within ten
years of service for disabled veterans and within two years
for non-disabled veterans. The rationale behind the
timeframe was that it was harder for veterans to find jobs
during the first months and years after exiting service.
Senator Wielechowski stated that sub-Section C on page 2,
lines 5 through 8 detailed that in order to qualify for the
tax credit, employment had to cover 12 consecutive months
and 1,560 work hours; the credit was $3,000 for a disabled
veteran and $2,000 for a non-disabled veteran.
Senator Wielechowski pointed out that sub-Section 2 on page
2, lines 9 through 13 was added in response to a suggestion
from Senator Thomas and that it incorporated a $1,000 tax
credit for employing a veteran in a seasonal position.
9:15:26 AM
Senator Olson referenced the tax credit increase from
$2,000 to $3,000 for disabled veterans and queried how the
amount of $2,000 was initially determined. Senator
Wielechowski responded that the amount of the credit had
been determined by looking at what the other states and the
federal government had set their credits at. He noted that
he believed the federal government had set their credit at
$2,400. He observed that it had been Co-Chair Stedman's
idea to increase the credit in SB 136 to $3,000 for
disabled veterans and stated that he agreed with the idea.
Senator Olson asked how the tax credit compared to that of
other states. Senator Wielechowski stated that Legislative
Research Services had conducted an analysis about the other
state and federal tax credits that were available to
veterans (copy on file). He gave examples of other state's
veteran tax credits as follows:
· Vermont had a $2,000 tax incentive, but it
only applied to veterans who had returned
from deployment in Afghanistan or Iraq with
the last two years.
· California's veteran tax credit required
that a veteran had left service in the last
48 months.
· Illinois had a tax credit that was not to
exceed $1,200 annually.
· West-Virginia had a tax credit available to
an employer of the first $5,000 in wages.
Senator Thomas thanked the bill sponsor for the inclusion
of seasonal employment in the legislation.
Co-Chair Stedman discussed a previously published
indeterminate fiscal note: FN1 (DOR).
9:17:50 AM
Senator Ellis MOVED to report CSSB 136(FIN) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
9:18:23 AM
CSSB 136(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a previously published
indeterminate fiscal note: FN1 (DOR).
Co-Chair Stedman asked that the record reflect that Senator
McGuire had joined the committee and that Senator Cathy
Giessel had been present throughout the meeting.
SENATE BILL NO. 68
"An Act relating to the examinations, board, loans,
records, and lobbying contracts of the Alaska
Commercial Fishing and Agriculture Bank; and providing
for an effective date."
9:19:12 AM
RYNNIEVA MOSS, STAFF, SENATOR JOHN COGHILL, stated that
Senator Coghill sent his apologies for his absence and that
the Senator was attending meetings for the Select Committee
on Legislative Ethics, of which he was a member.
JORDAN SHILLING, INTERN, SENATOR JOHN COGHILL, introduced
SB 68 and stated that when the Commercial Fishing and
Agriculture Bank (CFAB) was established in 1980, they had
received seed money from the state; the money was a loan to
be paid back to the general fund with interest. As a result
of the loan, certain restrictions such as specific board
member requirements, limits on loans, limits on eligibility
for loans, and the ability to lobby were placed on banks.
Although CFAB had repaid the seed money, the statutes
restricting their operations remained in effect; SB 68
lifted those restrictions and would allow CFAB to compete
in the loan market in the same capacity as other private
lending institutions.
9:20:46 AM
Co-Chair Stedman discussed a fiscal note from the
Department of Commerce, Community and Economic Development
reflecting $5,800 in travel costs for the Banking and
Securities Division to conduct an examination every three
years; the note also showed an increase in revenue every
three years in the amount of $22,000.
Senator Olson asked if other lending institutions had
voiced a position on the bill. Ms. Moss replied that CFAB
had been in correspondence with all the major lenders in
the state and that there had been no objections raised.
Senator Olson queried if CFAB had been in contact with
other lending institutions besides banks. Ms. Moss
responded in the affirmative and furthered that it was her
understanding that other types of lending institutions had
been contacted.
9:22:00 AM
Senator Ellis MOVED to report SB 68 out of committee with
individual recommendations and the accompanying fiscal
note. There being NO OBJECTION, it was so ordered.
9:22:16 AM
SB 68 was REPORTED out of committee with a "do pass"
recommendation and with a new fiscal impact note from the
Department of Commerce, Community and Economic Development.
Co-Chair Stedman discussed the committee's agenda for the
next several weeks. He stated that they would begin
reviewing some of the major capital projects and agency
overviews the following week, rather than the week after
the annual National Energy Council meetings. He observed
that the schedule would give them a "clearer calendar" to
deal with the oil legislation. He stated that the oil
legislation would mostly likely be ready after the Energy
Council meetings; if it was not ready by this point, the
committee would continue with the capital budget and
integrate the oil legislation later on in the process. He
noted that the preliminary overview hearings with PFC
Energy had been "tentatively" scheduled for the end of the
following week and that the hearings would not focus on
legislation; they were concept specific presentations on
how Alaska fit in globally to petroleum market place and
how Alaska's basin fit in with British Petroleum (BP),
ConocoPhillips, and ExxonMobil. He observed that the
integration of the oil discussion with the capital budget
would probably require the committee to meet twice a day.
ADJOURNMENT
9:24:28 AM
The meeting was adjourned at 9:24 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Approved LegLog 1027 Response to SB144 Questions ( Sen Stedman).pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 144 |
| SB 68 2011 CFAB Annual Report.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 68 |
| SB 27 Opposition Burn Association.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 27 |
| SB 27 Opposition Letters.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 27 |
| SB 27 Opposition Letters 2.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 27 |
| SB 68 Amendment 1.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 68 |
| SB 27 (HSS) Sectional Analysis.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 27 |
| SB 144 Letter of Support - Covenant House of Alaska.pdf |
SFIN 2/24/2012 9:00:00 AM |
SB 144 |