HOUSE BILL NO. 418 "An Act relating to program receipts collected by the division of insurance and to program receipts collected by the Department of Community and Economic Development for occupational licenses; and providing for an effective date." Vice Chair Bunde MOVED to adopt work draft, 1-LS1500\I, Utermohle, 3/24/00 (copy on file.) There being NO OBJECTIONS, it was so ordered. JANET SEITZ, STAFF, REPRESENTATIVE ROKEBERG spoke in support of the legislation on behalf of the sponsor. She explained that the legislation would add two new areas to the program receipts statute. A correction was made under the Division of Occupational Licensing to exclude business license receipts and Alaska Seafood Marketing Institute (ASMI) receipts were added. She observed that the sponsor supports the committee substitute, but is concerned that pioneer home receipts were excluded. Co-Chair Therriault observed that individual licensing groups within the Division of Occupational Licensing would like to contribute funds that could be used for participation in national training. He noted that ASMI receipts are collected specifically for ASMI marketing. He explained that Co-Chair Mulder expressed the desire to keep the legislation limited in scope. Co-Chair Therriault clarified that a previous proposed committee substitute was not offered because it would have swept in business licenses. Business licenses generate more than they consume for operation. The excess currently goes to the General Fund. There was no desire to take these funds off budget; therefore they were excluded from the legislation. JEFF, BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT spoke in support of the legislation. He expressed concern that the Division of Insurance was deleted from the legislation. He observed that the Division of Insurance generates fees in the same manner as the Division of Occupational Licensing. He made assurances to the industry that the legislation is not an attempt to raise insurance fees. Insurance fees currently pay for their services. He pointed out that the legislation does not take the fee structure away from legislative oversight. He maintained that any fears by industry were unfounded. Mr. Bush referred to section (Y). He pointed out that the receipts that go to ASMI are tax receipts, which are collected by the Department of Revenue and appropriated to ASMI. He suggested that the term "receipts" may not be appropriate. Mr. Bush spoke in support of an immediate effective date. He noted that an immediate effective date could ease pressure on the supplemental appropriation bill. Co-Chair Therriault proposed that the bill be held to allow research regarding subsection (Y). He stated that he preferred that the legislation be matched to the new fiscal year. He observed that the title would not prevent the effective date from being changed later. Representative Grussendorf asked why pioneer home receipts were not included. ALISON ELGEE, REVENUE COMMISSINER, DEPARTMENT OF ADMINISTRATION stated that the department supports the inclusion of pioneer home receipts and observed that legislation in the Senate would address pioneer home receipts. She spoke in support of recognizing resident revenues as specific to the pioneer home program. Representative Grussendorf asked why pioneer home receipts and Division of Insurance receipts were excluded from HB 418. Co-Chair Mulder explained that the intent was to keep the legislation narrow in order to hurry its advancement. He stressed that there would be little objection to the two program receipts in the legislation. He observed that others could be added later. HB 418 was HEARD and HELD in Committee for further deliberation. HOUSE BILL NO. 418 "An Act relating to program receipts collected by the division of insurance and to program receipts collected by the Department of Community and Economic Development for occupational licenses; and providing for an effective date." Co-Chair Therriault observed that discussions with the department clarified that the taxes to the Alaska Seafood Marketing Institute (ASMI) come from two sources. The tax sources need to be identified. JOE BALASH, STAFF, REPRESENTATIVE THERRIAULT provided information on HB 418. He explained that the legislative legal staff confirmed that the previous language would only apply to the minimal amount of materials and information brochures sold by ASMI. The taxes did need to be referenced. The legal counsel recommended adding the following language: receipts from the seafood marketing assessment (AS 16.51.120), the salmon marketing tax (AS 43.76.110) Co-Chair Therriault MOVED to ADOPT a conceptional amendment to replace the language on line 8, page 1 to specifically reference receipts from the seafood marketing assessment (AS 16.51.120), the salmon marketing tax under (AS 43.76.110) and other receipts of the Alaska Seafood Marketing Institute (ASMI). There being NO OBJECTION, it was so ordered. Co-Chair Mulder MOVED to report CSHB 418 (FIN) out of Committee with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSHB 418 (FIN) was REPORTED out of Committee with a "do pass" recommendation and with two fiscal impact notes: one by the Department of Community and Economic Development, Occupational Licensing, published date 3/1/00; and one by the Department of Community and Economic Development, Alaska Seafood Marketing Institute (ASMI).