Legislature(2015 - 2016)SENATE FINANCE 532
04/14/2016 08:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| HB314 | |
| SB130 | |
| HCR4 | |
| HB77 | |
| SB130 | |
| SB206 | |
| SB130 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 130 | TELECONFERENCED | |
| += | HB 247 | TELECONFERENCED | |
| += | HB 77 | TELECONFERENCED | |
| + | HCR 4 | TELECONFERENCED | |
| + | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 314 | TELECONFERENCED | |
| += | SB 206 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 14, 2016
8:07 a.m.
8:07:31 AM
CALL TO ORDER
Vice-Chair Micciche called the Senate Finance Committee
meeting to order at 8:07 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Marleanna Hall, Executive Director, Resource Development
Council, Juneau; Barbara Huff Tuckness, Director,
Government and Legislative Affairs, Teamsters Local 959,
Juneau; Representative Shelley Hughes, Sponsor; Stuart
Krueger, Staff, Representative Shelley Hughes; Brodie
Anderson, Staff, Representative Steve Thompson; Fred
Parady, Deputy Commissioner, Department of Commerce,
Community, and Economic Development; Lori Wing-Heier,
Director, Division of Insurance, Department of Commerce,
Community and Economic Development; Senator Cathy Giessel,
Sponsor; Jane Conway, Staff, Senator Cathy Giessel; Jill
Matheson, Alaska Optometric Association; Sara Chambers,
Administrative Operations Manager, Division of
Corporations, Business and Professional Licensing,
Department of Commerce, Community and Economic Development.
PRESENT VIA TELECONFERENCE
Brad Faulkner, Self, Homer; Dave Hanson, Self, Anchorage;
Renee Reeve, Alaska Support Industry Alliance, Anchorage;
Michael Jesperson, Self, Anchorage; Rick Koch, City of
Kenai; Don Laichak, Self, Anchorage; Mike Coons, National
Legislative Director, Citizens Initiatives, Palmer; Curtis
Thayer, Alaska Chamber of Commerce, Anchorage; Delice
Calcope, Self, Sutton; Mike Coons, Self, Palmer; Jeff
Gonnason, Legislative Chair, Alaska Optometry Association;
Dr. Paul Barney, Chairman, Board of Optometry, Anchorage;
Dr. Carl Rosen, Ophthalmologist, Anchorage. Ben Schoffmann,
Kakivik Asset Management, Anchorage; Reed Christensen,
Dowland-Bach Corporation, Anchorage; Terry Smith, Unified
Operations, Anchorage; Chantal Walsh, Petrotechnical
Resources of Alaska, Anchorage; Tom Walsh, Petrotechnical
Resources of Alaska, Anchorage; Mike Heiring, Udelhoven
Oilfield System Services, Anchorage; Cathy Duxbury,
Udelhoven Oilfield System Services, Anchorage; Scott Viera,
Northstar Terminal & Stevedore, Anchorage; Pete Stokes,
Petrotechnical Resources of Alaska, Anchorage; Maynard
Tapp, Hawk Consultants, Anchorage; Patrick Walsh, Peak
Oilfield Services, Anchorage; Jeff Bentz, Northstar
Terminal & Stevedore, Anchorage; Dale Kissee, President,
CONAM Construction, Anchorage; Leah Talus, Stantek
Consulting, Anchorage; Adam Crum, Northern Industrial
Training, Anchorage; Drema Fitzhugh, Hawk Consultants,
Anchorage; Cari-Ann Carty, Alaska Process Industry Careers
Consortium, Anchorage; Joseph Colonell, Colonell
Associates, Anchorage; Steve Post, North Star Equipment,
Anchorage; Martha Peck, Alaska Process Industry Careers
Consortium, Anchorage; Nick Pepperworth, Udelhoven Oilfield
System Services, Anchorage; Dennis Hebner, Superior Machine
and Welding, Anchorage; Brian Benson, Air Liquide,
Anchorage; Joey Crum, Northern Industrial Training,
Anchorage.
SUMMARY
SB 55 OPTOMETRY & OPTOMETRISTS
SB 55 was HEARD and HELD in committee for further
consideration.
SB 130 TAX;CREDITS;INTEREST;REFUNDS;O & G
SB 130 was HEARD and HELD in committee for
further consideration.
SB 206 REINSURANCE PROGRAM; HEALTH INS. WAIVERS
SB 206 was HEARD and HELD in committee for
further consideration.
CSHB 77(FIN)
DISABILITY:ID/LICENSE AND TRAINING RQMTS.
CS HB 77(FIN) was REPORTED out of committee with
"no recommendation" and with one previously
published zero fiscal note: FN3 (ADM).
HB 247 TAX;CREDITS;INTEREST;REFUNDS;O & G
HB 247 was SCHEDULED but not HEARD.
HB 314 AK REG ECON ASSIST. PROGRAM; EXTEND
HB 314 was HEARD and HELD in committee for
further consideration.
CSHCR 4(STA)
US COUNTERMAND CONVENTION DELEGATES
CSHCR 4(STA) was REPORTED out of committee with
"no recommendation" and with one previously
published indeterminate fiscal note: FN2 (LEG).
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; relating to refunds for the gas storage
facility tax credit, the liquefied natural gas storage
facility tax credit, and the qualified in-state oil
refinery infrastructure expenditures tax credit;
relating to the minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:09:49 AM
AT EASE
8:10:28 AM
RECONVENED
MARLEANNA HALL, EXECUTIVE DIRECTOR, RESOURCE DEVELOPMENT
COUNCIL, JUNEAU, testified in opposition to the bill. She
thought that raising taxes on the industry would not
stimulate growth. She felt changing the oil tax regime
would make Alaska's oil and gas industry seem unstable. She
discussed the recent increase in oil throughput and
referenced the tax credit. She noted that the members of
the council were not asking for a tax decrease, rather to
maintain the current structure in order to decrease the
possibility of volatility.
8:13:12 AM
BRAD FAULKNER, SELF, HOMER (via teleconference), testified
in support of the bill. He related that he had started
working on the pipeline when he was 18, and had worked in
the oil He thought oil tax credits in Cook Inlet would
never pay themselves off, and thought oil tax credits on
the North Slope were set up to boost the oil industry. He
felt the Senate was controlled by the oil industry. He
thought it was long since time to get rid of the tax
credits.
8:16:12 AM
DAVE HANSON, SELF, ANCHORAGE (via teleconference),
testified in favor of the bill. He described himself as a
fiscal conservative, and felt the state could not afford
the oil tax credit program. He discussed the fiscal
situation in the state and commented that low oil prices
were the cause of the oil industry's financial problems. He
highlighted the importance of jobs in the oil industry.
8:19:15 AM
BARBARA HUFF TUCKNESS, DIRECTOR, GOVERNMENT AND LEGISLATIVE
AFFAIRS, TEAMSTERS LOCAL 959, JUNEAU, felt that the current
committee substitute was better than the original bill. She
stressed that the legislation would impact many jobs. She
felt that previously passed oil and gas legislation, SB 21,
had a positive impact on the workers in the oil and gas
industry.
8:21:50 AM
RENEE REEVE, ALASKA SUPPORT INDUSTRY ALLIANCE, ANCHORAGE
(via teleconference); testified in opposition to the bill,
and referred to other members of the alliance that were in
the room to testify in opposition as well.
[Ms. Reeve gave her testimony, then the following
individuals read their names and affiliations for the
record, also in opposition to the bill.]
8:22:21 AM
BEN SCHOFFMANN, KAKIVIK ASSET MANAGEMENT, ANCHORAGE (via
teleconference), testified in opposition to the bill.
REED CHRISTENSEN, DOWLAND-BACH CORPORATION, ANCHORAGE (via
teleconference), testified in opposition to the bill.
TERRY SMITH, UNIFIED OPERATIONS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
CHANTAL WALSH, PETROTECHNICAL RESOURCES OF ALASKA,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
TOM WALSH, PETROTECHNICAL RESOURCES OF ALASKA, ANCHORAGE
(via teleconference), testified in opposition to the bill.
MIKE HEIRING, UDELHOVEN OILFIELD SYSTEM SERVICES, ANCHORAGE
(via teleconference), testified in opposition to the bill.
CATHY DUXBURY, UDELHOVEN OILFIELD SYSTEM SERVICES,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
SCOTT VIERA, NORTHSTAR TERMINAL & STEVEDORE, ANCHORAGE (via
teleconference), testified in opposition to the bill.
PETE STOKES, PETROTECHNICAL RESOURCES OF ALASKA, ANCHORAGE
(via teleconference), testified in opposition to the bill.
MAYNARD TAPP, HAWK CONSULTANTS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
PATRICK WALSH, PEAK OILFIELD SERVICES, ANCHORAGE (via
teleconference), testified in opposition to the bill.
JEFF BENTZ, NORTHSTAR TERMINAL & STEVEDORE, ANCHORAGE (via
teleconference), testified in opposition to the bill.
DALE KISSEE, PRESIDENT, CONAM CONSTRUCTION, ANCHORAGE (via
teleconference), testified in opposition to the bill.
LEAH TALUS, STANTEK CONSULTING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
ADAM CRUM, NORTHERN INDUSTRIAL TRAINING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
DREMA FITZHUGH, HAWK CONSULTANTS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
CARI-ANN CARTY, ALASKA PROCESS INDUSTRY CAREERS CONSORTIUM,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
JOSEPH COLONELL, COLONELL ASSOCIATES, ANCHORAGE (via
teleconference), testified in opposition to the bill.
STEVE POST, NORTH STAR EQUIPMENT, ANCHORAGE (via
teleconference), testified in opposition to the bill.
MARTHA PECK, ALASKA PROCESS INDUSTRY CAREERS CONSORTIUM,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
NICK PEPPERWORTH, UDELHOVEN OILFIELD SYSTEM SERVICES,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
DENNIS HEBNER, SUPERIOR MACHINE AND WELDING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
BRIAN BENSON, AIR LIQUIDE, ANCHORAGE (via teleconference),
testified in opposition to the bill.
JOEY CRUM, NORTHERN INDUSTRIAL TRAINING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
Ms. Reeve stated that all those introduced individuals were
opposed to the legislation.
8:24:20 AM
MICHAEL JESPERSON, SELF, ANCHORAGE (via teleconference),
spoke against the legislation. He stated that he and no one
in his family had ever worked for the oil industry.
SB 130 was HEARD and HELD in committee for further
consideration.
8:25:52 AM
AT EASE
8:28:14 AM
RECONVENED
HOUSE BILL NO. 314
"An Act relating to the Alaska regional economic
assistance program; extending the termination date of
the Alaska regional economic assistance program; and
providing for an effective date."
8:28:57 AM
REPRESENTATIVE SHELLEY HUGHES, SPONSOR, introduced the
legislation. She stated that the bill would extend the
sunset date of the Alaska Regional Economic Assistance
(ARDOR) program.
8:31:59 AM
STUART KRUEGER, STAFF, REPRESENTATIVE SHELLEY HUGHES,
addressed the summary of changes from version N to version
P of the bill (copy on file):
Page 3, Line 6-11: The Senate Labor & Commerce CS
reinstates the requirement that the Department of
Commerce, Community & Economic Development compile and
deliver a report to the senate secretary and chief
clerk on regional development organization activities.
It does so by removing language from the original bill
starting on page 3, line 9, stating "that, in the
preceding fiscal year, received assistance under (a)
of this 10 section or a grant under (b) of this
section"
Page 4, line 9: Repeals the sun set clause.
8:33:40 AM
Mr. Krueger discussed the sectional analysis (copy on
file):
Section 1. Lists the duties of the department in
providing assistance to new and existing ARDORs. New
language added to make duties "subject to
appropriation".
Section 2. Provides the department with the authority
to make regional development grants to ARDORs. Limits
the number of grants that the department can make, and
allows the department to set procedures for grant
applications.
Section 3. Sets reporting requirement deadline of
February 1 of each year for the department to compile
a report on the activities of ARDORs that have
received funding in the preceding fiscal year. Also
establishes requirement for ARDORs that have received
assistance or funding in the preceding fiscal year to
provide information to the department to assist in the
compiling of the department's report.
Section 4. Extends the sunset date of program to July
1, 2021
Section 5. Retroactivity clause.
Section 6. Effective date.
8:34:37 AM
Vice-Chair Micciche asked about FN 1, which had a $774,100
grant, but had been removed in the subcommittee budget. He
assumed that there would be a new zero fiscal note for the
bill.
Representative Hughes explained that the second column was
information only. She remarked that it was included in the
governor's original budget request in December. The
department agreed to go to zero, and the subcommittees had
zeroed out the fiscal note. She stressed that the
Legislative Finance Division (LFD) felt that it was a zero
fiscal note, because the column was strictly information
only.
HB 314 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; relating to refunds for the gas storage
facility tax credit, the liquefied natural gas storage
facility tax credit, and the qualified in-state oil
refinery infrastructure expenditures tax credit;
relating to the minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:36:37 AM
RICK KOCH, CITY OF KENAI (via teleconference), testified
against the bill. He thought it had fairly significant
negative impacts to the Railbelt. He thought there was a
difference in consumers between Cook Inlet and North Slope.
He encouraged the committee to consider the ultimate
consumer of the resource, and who would bear the burden of
the tax credit structure.
8:38:33 AM
DON LAICHAK, SELF, ANCHORAGE (via teleconference),
testified in opposition to the bill. He had worked for
several oil companies. He believed that smaller oil fields
were the future of the state. He discussed the numerous
costs associated with oil production.
CS FOR HOUSE CONCURRENT RESOLUTION NO. 4(STA)
Relating to the duties of delegates selected by the
legislature to attend a convention of the states
called under art. V, Constitution of the United
States, to consider a countermand amendment to the
Constitution of the United States; establishing as a
joint committee of the legislature the Delegate
Credential Committee and relating to the duties of the
committee; providing for an oath for delegates and
alternates to a countermand amendment convention;
providing for a chair and assistant chair of the
state's countermand amendment delegation; providing
for the duties of the chair and assistant chair;
providing instructions for the selection of a
convention president; and providing specific language
for the countermand amendment on which the state's
convention delegates are authorized by the legislature
to vote to approve.
8:40:28 AM
REPRESENTATIVE SHELLEY HUGHES, SPONSOR; discussed the bill:
Recent actions taken by the White House and Department
of Interior constitute a new threshold of overreach in
Alaska unlike anything in recent history.
HJR14 and HCR 4 seek to restore the balance of power
between the states and federal government. The pair
would strengthen state sovereignty by providing states
with veto (countermand) power over federal decisions
not in their best interest through a precise and
careful mechanism established by an amendment to the
U.S. Constitution. These two resolutions in tandem are
intended to start the process of amending the US
Constitution via the powers granted in Article V of
that same document.
HJR 14 (The Application) provides Alaska's call to
Congress for a clearly defined, single-issue
Countermand Amendment Convention. The Countermand
Amendment to the United States Constitution, when
ratified, will allow states to propose Countermand
Initiatives, which upon approval by three-fifths of
state legislatures, will repeal any federal statute,
executive order, judicial decision, or regulatory
decision listed in the Initiative.
HCR 4 (The Delegate Resolution) enables the state
legislature to institute tight parameters for the
convention, to ensure that a "runaway convention" is
not possible and provides for a productive, safe and
timely process. The Delegate Resolution establishes a
Credential Committee for selection of delegates to the
convention, and outlines the duties of the delegates.
HCR 4 also includes the precise language of the
proposed Countermand Amendment to the U.S.
Constitution.
Passage of these resolutions is an actionable step the
Legislature can take toward restoration of the proper
balance of state and federal powers. These two
resolutions do not pertain to a conservative versus
liberal agenda; this is a state versus federal issue.
This is OUR Alaska, and it's time the federal
government understands that.
Vice-Chair Micciche restated that the committee had heard
SCR 4, the identical bill, and had taken public testimony.
8:44:35 AM
MIKE COONS, NATIONAL LEGISLATIVE DIRECTOR, CITIZENS
INITIATIVES, PALMER (via teleconference), testified in
support of the legislation.
Vice-Chair Micciche drew attention to FN 2, which was
indeterminate.
8:45:40 AM
AT EASE
8:46:09 AM
RECONVENED
Senator Hoffman MOVED to report CS HCR 4(STA) out of
Committee with individual recommendations and the
accompanying fiscal note.
CSHCR 4(STA) was REPORTED out of committee with "no
recommendation" and with one previously published
indeterminate fiscal note: FN2 (LEG).
8:47:28 AM
AT EASE
8:50:03 AM
RECONVENED
CS FOR HOUSE BILL NO. 77(FIN)
"An Act relating to training regarding disabilities
for police officers, probation officers, parole
officers, correctional officers, and village public
safety officers; relating to guidelines for drivers
when encountering or being stopped by a peace officer;
relating to driver's license examinations; and
relating to a voluntary disability designation on a
state identification card and a driver's license."
8:50:11 AM
BRODIE ANDERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
explained that the goal of HB 77 was intended to improve
communication between law enforcement professionals and
other agencies that may interact with individuals who have
no apparent disabilities.
Vice-Chair Micciche discussed the zero fiscal note.
Co-Chair Kelly MOVED to report CS HB 77(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CS HB 77(FIN) was REPORTED out of committee with "no
recommendation" and with one previously published zero
fiscal note: FN3 (ADM).
8:52:40 AM
AT EASE
8:54:17 AM
RECONVENED
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; relating to refunds for the gas storage
facility tax credit, the liquefied natural gas storage
facility tax credit, and the qualified in-state oil
refinery infrastructure expenditures tax credit;
relating to the minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:54:17 AM
CURTIS THAYER, ALASKA CHAMBER OF COMMERCE, ANCHORAGE (via
teleconference), testified in opposition to SB 130. He
thought the state budget was not sustainable.
Vice-Chair Micciche noted that there may be additional
testimony for the bill.
SENATE BILL NO. 206
"An Act relating to a reinsurance program for
residents who are high risks and insurer assessments
to cover the costs of the reinsurance program;
relating to application for state innovation waivers
for health care insurance; relating to definitions of
'residents who are high risks' and 'covered lives';
and providing for an effective date."
8:57:27 AM
FRED PARADY, DEPUTY COMMISSIONER, DEPARTMENT OF COMMERCE,
COMMUNITY, AND ECONOMIC DEVELOPMENT, discussed SB 206. The
individual insurance market for health insurance in the
state was in crisis. He remarked that there were only two
carriers, and one carrier was currently in weakened
financial condition. He stressed that both carriers were
losing money in the individual market. He pointed out that
the pool was too small and the costs were two high.
Senator Dunleavy queried the factors the Division of
Insurance considered when requesting a waiver.
LORI WING-HEIER, DIRECTOR, DIVISION OF INSURANCE,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
explained that the application process was intense, and
required public hearings. She remarked that there was an
examination of the individual mandate as to when
individuals should be allowed to participate. She stated
that there would be a determination to eliminate the tax or
penalty for not participating in the employer or individual
mandate. She remarked that there would be point of
restrictive or too great a burden to participate in the
individual plans. She shared that there was also an
examination of the subsidies to "smooth the curve." She
remarked that the current curve for subsidies was stark,
with a "line in the sand" for subsidy qualification.
Senator Dunleavy asked what type of opposition to the bill
the department had encountered.
Mr. Parady relayed that the bill had two key components:
the assessment process; and the Section 13.32 innovation
waiver. He stated that there was no opposition to the
waiver process. He furthered that AETNA had expressed
opposition to the assessment plan.
Senator Dunleavy asked to hear the pros and cons of leaving
the federal plan.
Mr. Parady believed the pros outweighed the cons, because
there were 22,000 insured lives in Alaska's individual
insurance market who generated financial losses due to the
requirement to cover all individuals.
9:04:19 AM
Senator Olson queried the benefits of those in the IHS
system.
Mr. Parady deferred to Ms. Wing-Heier.
Ms. Wing-Heier replied that it had not impact on IHS
beneficiaries.
9:04:48 AM
Vice-Chair Micciche referred to page 2 of a document
entitled "SB 206 - Best Estimate Consumer Impacts," (copy
on file), and noted that the cost would be spread to other
covered.
Ms. Wing-Heier agreed
Vice-Chair Micciche queried the 15 to 18 percent premium
impact.
Mr. Parady shared that the bill allowed the division
authority to set premiums, and work through the process. He
remarked that there would be a $55 million estimated impact
on insurance premiums with $19.30 projection, resulting in
an 18 percent reduction. He remarked that over the recent
two years there was a 36 to 40 percent increase, and the
following year was expected to see a similar increase. He
stressed that the numbers were estimates based on the
actuarial studies.
Vice-Chair Micciche asked if there was a significant fiscal
note, because the state would cover its own insurance
costs.
Mr. Parady replied in the negative, because the state did
not carry stop loss premium. The state was self-insured.
The affected groups were listed on page 1, but it excluded
state employees. Therefore, there was no fiscal note.
Ms. Wing-Heier remarked that since the state was self-
insured, so those employees were not included in the plan.
SB 206 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; relating to refunds for the gas storage
facility tax credit, the liquefied natural gas storage
facility tax credit, and the qualified in-state oil
refinery infrastructure expenditures tax credit;
relating to the minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
9:07:40 AM
DELICE CALCOPE, SELF, SUTTON (via teleconference),
testified in support of the bill. She was in favor of
raising taxes on the oil industries.
9:09:42 AM
MIKE COONS, SELF, PALMER (via teleconference), testified in
opposition to SB 130. He described himself as a
conservationist. He thought the tax credits had been
working and had stimulated more oil production and
exploration.
Vice-Chair Micciche CLOSED public testimony for SB 130.
Vice-Chair Micciche passed the gavel to Co-Chair MacKinnon.
SB 130 was HEARD and HELD in committee for further
consideration.
9:12:02 AM
AT EASE
9:15:03 AM
RECONVENED
SENATE BILL NO. 55
"An Act relating to the practice of optometry."
9:15:15 AM
Co-Chair MacKinnon passed the gavel to Vice-Chair Micciche.
SENATOR CATHY GIESSEL, SPONSOR, introduced the legislation:
This bill moves the continuing education (CE)
requirements back into regulation, as desired by the
Department of Commerce, Community and Economic
Development. Continuing education is still required by
current statute, but the hours and subjects will be
determined by the Board of Optometry, as with other
professions. The current regulations require more CE
hours than the statute subsection deleted by this
bill.
SB 55 allows the board to determine prescribed drug
schedules anticipating federal regulations that may
change again in the future as they did in 2014; that
regulation required another statute change, and this
bill would allow the board to move in step with its
industry.
This bill updates the optometry definition to reflect
current education and training, but specifically
prohibits invasive surgery. This allows for future new
and improved diagnostic and therapeutic procedures as
determined by the board, while not having to return to
the legislature for every new technological advance.
It also defines that optometrists must be qualified
for any procedure that they perform.
This bill also further defines and clarifies the
prohibited surgical procedures under an "invasive
surgery" definition. Alaska optometrists already do
superficial surgical procedures such as removal of
corneal foreign bodies under current statute, but
nothing invasive would be allowed.
9:24:31 AM
Senator Bishop thought the bill's purpose was clear. He
referred to the bill allowing "new and improved diagnostic
and therapeutic procedures." He wondered whether that was a
"catch all" or would there be additional efforts to assist
the optometrist.
Senator Giessel deferred to an optometrist.
9:25:53 AM
JANE CONWAY, STAFF, SENATOR CATHY GIESSEL, discussed the
sectional analysis (copy on file):
1. Section 1
Amends 08.72.050 Regulations. Adds to this section the
power for the board to adopt regulations allowing the
prescription and pharmaceutical agents for the
treatment of eye disease and also that under agreement
with the State Medical Board, it will describe the
scope of practice for a licensee to perform ophthalmic
surgery and noninvasive procedures.
2. Section 2.
Amends 08.72.181 (d) by requiring specified hours and
period of continuing education requirements for the
renewal of an optometrist's license but retains
delegation of those requirements to the board in
regulation.
3. Section 3.
Repeals and reenacts AS 08.72.272(a) to provide that
pharmaceutical agents, including controlled
substances, may be used by a licensed optometrist if
consistent with standards adopted by the board and any
limitations on practice under section 5 of the bill.
4. Section 4.
08.72.272 amends and adds new subsections prohibiting
an optometrist to make injections into the ocular
globe of the eye and limits the prescribing of a
controlled substance in a quantity exceeding a 7-day
supply and requires a referral to a physician or
ophthalmologist if a longer prescription is needed.
5. Section 5.
08.72 is amended and a new section is added 08.72.278
Limitation on Practice. Provides that a licensee may
perform only services within the licensee's education,
training and experience as provided by board
regulation.
6. Section 6
08.72.300(3) revises the definition of optometry.
9:28:17 AM
JILL MATHESON, ALASKA OPTOMETRIC ASSOCIATION, testified in
support of the bill.
Senator Bishop asked Ms. Matheson to restate her concern.
Ms. Matheson replied at Section 1, line 6.
Senator Olson asked if Ms. Matheson had been on the
Optometry Board.
Ms. Matheson stated she was on the board for eight years,
and in that time there had been no complaints.
Senator Olson asked how the bill changed the scope of
practice for optometrists.
Ms. Matheson thought the bill allowed for optometrists to
provide for patients at the highest level of care.
Senator Olson asked if Ms. Matheson had ever practiced in
rural Alaska.
Ms. Matheson replied in the negative.
9:35:10 AM
JEFF GONNASON, LEGISLATIVE CHAIR, ALASKA OPTOMETRY
ASSOCIATION (via teleconference), testified in support of
the bill.
Senator Olson wondered if there were any other trained
professions that were classified under two boards.
Mr. Gonnason replied in the negative.
9:40:24 AM
Senator Olson wondered if there were any significant
changes in training.
Mr. Gonnason relayed that medicine, dentistry, optometry,
and health care had expanded greatly in ten to twenty
years. There were new drugs and procedures.
9:41:39 AM
DR. PAUL BARNEY, CHAIRMAN, BOARD OF OPTOMETRY, ANCHORAGE
(via teleconference), testified in support of the bill. He
thought the CS for SB 55 (L&C) was excellently written with
the exception of the aforementioned language specifying the
State Medical Board. He urged the committee to strike the
State Medical Board language from the bill.
9:46:22 AM
DR. CARL ROSEN, OPTHAMOLOGIST, ANCHORAGE (via
teleconference), testified in opposition to the bill. He
discussed primary eye care, which was part of his purview.
He thought the bill was a big pivot point for optometry,
and urged caution. He thought it was important that the
State Medical Board was involved.
Senator Olson thanked Dr. Rosen for practicing in the
state. He asked if Dr. Rosen had ever been on the medical
board. He shared that he had never been an elected member
of the medical board. Dr. Rosen replied in the negative,
but he had worked closely with someone on the medical
board.
Senator Olson asked if Dr. Rosen was familiar with the
training for optometrists. Dr. Rosen recounted that he had
visited an optometry school, and was boycotted. He stressed
that ophthalmology was a select sub-specialty within
medicine.
9:52:47 AM
Senator Olson asked if Dr. Rosen had ever practiced in
rural Alaska. Dr. Rosen replied in the negative.
Senator Olson wondered if the ophthalmologists were behind
the negative media advertisements.
Mr. Rosen stressed that it was an onerous task to testify
about this issue. He remarked that optometrists should
become ophthalmologists, should they want to achieve the
proposals laid out in the legislation.
Senator Olson commented that he was somewhat offended by
the advertisements.
9:55:18 AM
Senator Dunleavy asked for an explanation of what the bill
would allow or not allow optometrists to do in terms of
surgery.
Senator Giessel stated that there were invasive surgeries
that ophthalmologists did on the eye that were prohibited.
Senator Dunleavy asked about the surface of the eye, and
procedures such as Lasik surgery or cataracts. He wondered
what medical professionals currently performed the surgery.
Senator Giessel believed that Lasik and cataracts surgeries
were not performed by optometrists.
10:00:40 AM
Vice-Chair Micciche referred to Section 4 and Section 5,
which discussed the limitations of optometry practice.
Senator Bishop felt that there could be a referral for an
emergency procedure.
Senator Giessel thought that certainly a fish hook
penetrating the globe of the eye in to the vitreous, and
remarked there would probably be a referral. She shared
that telehealth was currently expanding.
10:04:02 AM
Vice-Chair Micciche CLOSED public testimony.
Senator Olson asked about medical professionals that were
governed by two boards.
SARA CHAMBERS, ADMINISTRATIVE OPERATIONS MANAGER, DIVISION
OF CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
stated that the current model was not like any other model.
Senator Olson wondered whether the medical board could take
action against the licensee.
Ms. Chambers looked at page 1, line 12, which posed
logistical concerns. She noted that because AS 08.08.64
were not amended, there was not requirement for the medical
board to enter into an agreement with the Board of
Examiners in Optometry. She felt that there were some
logistical concerns that would stymie the efforts of the
bill.
Senator Olson wondered whether the department was in
support of the current version of the bill.
Ms. Chambers replied that the department did not have a
position on the bill. There was concern with the logistics
and operations. There were conversations with the
Department of Law.
Senator Olson agreed with that concern.
Senator Dunleavy asked why the department had not taken a
position on the bill.
Ms. Chambers stated that when there was a clear desire from
one board to accomplish a goal, the department may take a
position to support the board. She remarked that there were
two entities involved in support and opposition to the
bill, so the department would not take a position.
10:08:02 AM
Senator Dunleavy thought it made sense that the department
should take a position, when the issue was related to a
life or death situation. He wondered if the bill contained
anything dangerous. He assumed that not taking a position
indicated no problem with the bill.
Senator Olson replied that the department was not full of
trained medical professionals.
Senator Dunleavy thought the bills he had sponsored had
garnered opinions from those who were not experts in the
field.
Vice-Chair Micciche thought it was specifically a "Dunleavy
problem."
10:09:58 AM
Senator Olson MOVED to ADOPT Amendment 1:
Page 1, line 12:
Delete "by agreement with the State Medical
Board."
Vice-Chair Micciche OBJECTED for discussion.
Senator Olson explained the amendment. He felt that
optometrists should not be overseen by two boards.
Co-Chair Kelly asked the sponsor's opinion on the
amendment.
Senator Giessel expressed her support for the amendment.
Vice-Chair Micciche removed his objection. There being NO
OBJECTION, Amendment 1 was ADOPTED.
Vice-Chair Micciche stated that the committee would hold
the bill. He discussed the afternoon schedule.
SB 55 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 247
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; relating to refunds for the gas storage
facility tax credit, the liquefied natural gas storage
facility tax credit, and the qualified in-state oil
refinery infrastructure expenditures tax credit;
relating to the minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
HB 247 was SCHEDULED but not HEARD.
ADJOURNMENT
10:12:50 AM
The meeting was adjourned at 10:12 a.m.