HOUSE FINANCE COMMITTEE April 14, 1994 2:05 P.M. TAPE HFC 94 - 125, Side 1, #000 - end. TAPE HFC 94 - 125, Side 2, #000 - #424. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 2:05 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Representative Jeannette James; Carol Carroll, Staff, Senator Jay Kerttula; Annette Kreitzer, Staff, Senator Loren Leman; Dr. Thomas Trolter, President, Alaska Pacific University, Anchorage; Wendy Redman, Vice President for University Relations, University of Alaska, Anchorage; Jeff Morrison, Legislative Liaison, Director, Division of Administrative Services, Department of Military and Veterans Affairs; Ervin Martin, (Testified via teleconference), Director, Alaska Division of Emergency Services, Department of Military and Veterans Affairs. SUMMARY HB 222 An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises. CS HB 222 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Law and a zero fiscal note by the Department of Public Safety. SB 225 An Act relating to credits against certain insurance taxes for contributions to certain 1 educational institutions; and providing for an effective date. CS SB 225 (HES) was reported out of Committee with a fiscal note by the Department of Commerce and Economic Development dated 2/04/94 and a zero fiscal note by the Department of Revenue dated 2/04/94. SB 33 An Act relating to grants for local emergency planning committees and emergency response organizations; and providing for an effective date. SB 33 was placed into Subcommittee with Representative Foster as Chair and with members Representative Therriault and Representative Brown. HOUSE BILL 222 "An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises." Representative Therriault MOVED to adopt work draft #8- LS0832\I, Chenoweth, 3/25/94. There being NO OBJECTIONS, it was adopted. REPRESENTATIVE JEANNETTE JAMES noted her support of the committee substitute. Representative Brown MOVED to adopt Amendment #1 which would define tenant's rights for a landlord's unlawful ouster, exclusion or diminution of service. Representative James stated that she would support Amendment #1. There being NO OBJECTION, Amendment #1 was adopted. Representative Brown MOVED to adopt Amendment #2 providing tenants a tool with which they could enforce a rental agreement when there is a problem to which the landlord fails to respond. Representative Therriault MOVED to divide Amendment #2 into two sections. Amendment #2B would consist of the second part of the amendment, subsection (2). Amendment #2A would consist of the first part, subsection (1) and subsection (3) of the amendment. There being NO OBJECTION, Amendment #2 2 was divided. Representative Therriault MOVED to adopt Amendment 2B. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment 2A. Representative Parnell OBJECTED stating the section would foster more litigation for the Department of Law and would allow a tenant to withhold a portion of their rent if they believed that they were entitled to do so. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Foster, Grussendorf, Hoffman, MacLean. OPPOSED: Parnell, Therriault, Hanley, Martin, Larson. The MOTION PASSED (6-5). Representative Navarre MOVED to report CS HB 222 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 222 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Law and a zero fiscal note by the Department of Public Safety. SENATE BILL 225 "An Act relating to credits against certain insurance taxes for contributions to certain educational institutions; and providing for an effective date." CAROL CARROLL, STAFF, SENATOR JAY KERTTULA, stated that SB 225 would extend the already existing tax credit to authorized insurance and title insurance companies. Presently, corporate taxpayers, oil and gas producers, and mining and fishing companies are able to credit their tax liability for up to $150,000 dollars if they donate to a qualified educational institution. She added that insurance and title insurance companies are unable to take advantage of this tax credit because they pay a premium tax instead of a corporate income tax. Ms. Carroll explained that SB 225 would provide that authorized insurance companies could take a tax credit of 50% of the first $100,000 dollars and 100% of the next $100,000 and donate it to a qualified institution. The maximum credit available is $150,000 or 50% of the tax 3 liability, whichever is less. Representative Brown asked the amount of lost revenue the State would experience through the credit extension. Ms. Carroll responded that the Division of Insurance has submitted two fiscal notes. The first note was for $900 thousand dollars which would assume that six insurance companies would take the full credit. She continued that the second fiscal note for $1 million dollars would indicate the potential if all fourteen hundred insurance companies took the credit. Representative Martin thought the legislation would provide a "gain" for education rather than a loss for the State. Ms. Carroll noted that in FY92 a tax credit of $533 thousand dollars was taken and in FY93 a tax credit of $803 thousand dollars was taken. Ms. Carroll commented that Senator Kerttula hopes to get six insurance companies to use the tax credit provided by the legislation. DR. THOMAS TROLTER, PRESIDENT, ALASKA PACIFIC UNIVERSITY, ANCHORAGE, encouraged the Committee to support the proposed legislation adding the he knew several insurance companies who would participate in the program. The legislation would encourage the development of corporate philanthropy in Alaska and would ease the burden for higher education. WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, ANCHORAGE, commented that corporations have not rushed to donate to the universities as a result of the tax credits. She added that philanthropy in the corporate sector depends on public relations and accounting. Ms. Redman added that the University has found that corporations more often give to higher education because they have a commitment to higher education and not because of the tax credit available. She emphasized that the tax credit would provide additional opportunities outside of normal general fund revenues. Co-Chair MacLean MOVED to report CS SB 225 (HES) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS SB 225 (HES) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Commerce and Economic Development dated 2/04/94 and a zero fiscal note by the Department of Revenue dated 2/04/94. (Tape Change, HFC 94-125, Side 2). SENATE BILL 33 4 "An Act relating to grants for local emergency planning committees and emergency response organizations; and providing for an effective date." ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, commented that CS SB 33 (FIN) would address emergency planning and response. The Hazardous Substance Spill Technology Review Council would transfer to the Department of Environmental Conservation and the State Emergency Response Commission, including its duty to designated local emergency planning districts emergency planning committees to the Department of Military and Veterans' Affairs. A requirement that the State and regional oil discharge prevention and contingency plans be revised annually would be eliminated. Ms. Kreitzer explained that the intent of the legislation was to facilitate a better working relationship between the local emergency planning committees and local governments. It would efficiently accomplish the goals of emergency planning and planning for oil and hazardous substance discharges by reducing the opportunities for duplication of effort at the state level. Additionally, the abilities of local communities to plan for disasters would be enhanced. ERVIN MARTIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, ALASKA DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke in support of the legislation noting that it would provide good public policy by consolidating functions. JEFF MORRISON, LEGISLATIVE LIAISON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, pointed out the joint support of both the Department of Environmental Conservation (DEC) and the Department of Military and Veterans Affairs (DMVA). The legislation would expand the responsibilities of the State Emergency Response System (SERS) for all hazards and would require an additional two planners to be hired by the Department in order to develop that plan. Mr. Morrison explained that the legislation would coordinate all planning activities. Currently, DMVA is charged by statute to work with communities to prepare plans for disasters. DEC is charged by statute to work with communities to prepare plans for hazardous substance and oil spills. To the extent that those two programs overlap, there are conflicting statutes. The legislation would place DMVA in charge of developing these plans. Discussion followed between Committee members, Ms. Kreitzer and Mr. Morrison regarding the response plan and the 5 associated timing of the plan. Co-Chair Larson placed CS SB 33 (FIN) into Subcommittee with Representative Foster as Chair and with members Representative Therriault and Representative Brown. CS SB 33 (FIN) was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 3:15 P.M. HOUSE FINANCE COMMITTEE April 14, 1994 2:05 P.M. TAPE HFC 94 - 125, Side 1, #000 - end. TAPE HFC 94 - 125, Side 2, #000 - #424. CALL TO ORDER Co-Chair Larson called the House Finance Committee meeting to order at 2:05 P.M. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Grussendorf Representative Therriault Representative Foster ALSO PRESENT Representative Jeannette James; Carol Carroll, Staff, Senator Jay Kerttula; Annette Kreitzer, Staff, Senator Loren Leman; Dr. Thomas Trolter, President, Alaska Pacific University, Anchorage; Wendy Redman, Vice President for University Relations, University of Alaska, Anchorage; Jeff Morrison, Legislative Liaison, Director, Division of Administrative Services, Department of Military and Veterans Affairs; Ervin Martin, (Testified via teleconference), Director, Alaska Division of Emergency Services, Department of Military and Veterans Affairs. SUMMARY HB 222 An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and 6 nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises. CS HB 222 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Law and a zero fiscal note by the Department of Public Safety. SB 225 An Act relating to credits against certain insurance taxes for contributions to certain educational institutions; and providing for an effective date. CS SB 225 (HES) was reported out of Committee with a fiscal note by the Department of Commerce and Economic Development dated 2/04/94 and a zero fiscal note by the Department of Revenue dated 2/04/94. SB 33 An Act relating to grants for local emergency planning committees and emergency response organizations; and providing for an effective date. SB 33 was placed into Subcommittee with Representative Foster as Chair and with members Representative Therriault and Representative Brown. HOUSE BILL 222 "An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises." Representative Therriault MOVED to adopt work draft #8- LS0832\I, Chenoweth, 3/25/94. There being NO OBJECTIONS, it was adopted. REPRESENTATIVE JEANNETTE JAMES noted her support of the committee substitute. Representative Brown MOVED to adopt Amendment #1 which would define tenant's rights for a landlord's unlawful ouster, exclusion or diminution of service. Representative James stated that she would support Amendment #1. There being NO OBJECTION, Amendment #1 was adopted. 7 Representative Brown MOVED to adopt Amendment #2 providing tenants a tool with which they could enforce a rental agreement when there is a problem to which the landlord fails to respond. Representative Therriault MOVED to divide Amendment #2 into two sections. Amendment #2B would consist of the second part of the amendment, subsection (2). Amendment #2A would consist of the first part, subsection (1) and subsection (3) of the amendment. There being NO OBJECTION, Amendment #2 was divided. Representative Therriault MOVED to adopt Amendment 2B. There being NO OBJECTION, it was adopted. Representative Brown MOVED to adopt Amendment 2A. Representative Parnell OBJECTED stating the section would foster more litigation for the Department of Law and would allow a tenant to withhold a portion of their rent if they believed that they were entitled to do so. A roll call vote was taken on the MOTION. IN FAVOR: Navarre, Brown, Foster, Grussendorf, Hoffman, MacLean. OPPOSED: Parnell, Therriault, Hanley, Martin, Larson. The MOTION PASSED (6-5). Representative Navarre MOVED to report CS HB 222 (FIN) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CS HB 222 (FIN) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Law and a zero fiscal note by the Department of Public Safety. SENATE BILL 225 "An Act relating to credits against certain insurance taxes for contributions to certain educational institutions; and providing for an effective date." CAROL CARROLL, STAFF, SENATOR JAY KERTTULA, stated that SB 225 would extend the already existing tax credit to authorized insurance and title insurance companies. Presently, corporate taxpayers, oil and gas producers, and mining and fishing companies are able to credit their tax 8 liability for up to $150,000 dollars if they donate to a qualified educational institution. She added that insurance and title insurance companies are unable to take advantage of this tax credit because they pay a premium tax instead of a corporate income tax. Ms. Carroll explained that SB 225 would provide that authorized insurance companies could take a tax credit of 50% of the first $100,000 dollars and 100% of the next $100,000 and donate it to a qualified institution. The maximum credit available is $150,000 or 50% of the tax liability, whichever is less. Representative Brown asked the amount of lost revenue the State would experience through the credit extension. Ms. Carroll responded that the Division of Insurance has submitted two fiscal notes. The first note was for $900 thousand dollars which would assume that six insurance companies would take the full credit. She continued that the second fiscal note for $1 million dollars would indicate the potential if all fourteen hundred insurance companies took the credit. Representative Martin thought the legislation would provide a "gain" for education rather than a loss for the State. Ms. Carroll noted that in FY92 a tax credit of $533 thousand dollars was taken and in FY93 a tax credit of $803 thousand dollars was taken. Ms. Carroll commented that Senator Kerttula hopes to get six insurance companies to use the tax credit provided by the legislation. DR. THOMAS TROLTER, PRESIDENT, ALASKA PACIFIC UNIVERSITY, ANCHORAGE, encouraged the Committee to support the proposed legislation adding the he knew several insurance companies who would participate in the program. The legislation would encourage the development of corporate philanthropy in Alaska and would ease the burden for higher education. WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS, UNIVERSITY OF ALASKA, ANCHORAGE, commented that corporations have not rushed to donate to the universities as a result of the tax credits. She added that philanthropy in the corporate sector depends on public relations and accounting. Ms. Redman added that the University has found that corporations more often give to higher education because they have a commitment to higher education and not because of the tax credit available. She emphasized that the tax credit would provide additional opportunities outside of normal general fund revenues. Co-Chair MacLean MOVED to report CS SB 225 (HES) out of Committee with individual recommendations and with the accompanying fiscal notes. There being NO OBJECTION, it was 9 so ordered. CS SB 225 (HES) was reported out of Committee with a "do pass" recommendation and with a fiscal note by the Department of Commerce and Economic Development dated 2/04/94 and a zero fiscal note by the Department of Revenue dated 2/04/94. (Tape Change, HFC 94-125, Side 2). SENATE BILL 33 "An Act relating to grants for local emergency planning committees and emergency response organizations; and providing for an effective date." ANNETTE KREITZER, STAFF, SENATOR LOREN LEMAN, commented that CS SB 33 (FIN) would address emergency planning and response. The Hazardous Substance Spill Technology Review Council would transfer to the Department of Environmental Conservation and the State Emergency Response Commission, including its duty to designated local emergency planning districts emergency planning committees to the Department of Military and Veterans' Affairs. A requirement that the State and regional oil discharge prevention and contingency plans be revised annually would be eliminated. Ms. Kreitzer explained that the intent of the legislation was to facilitate a better working relationship between the local emergency planning committees and local governments. It would efficiently accomplish the goals of emergency planning and planning for oil and hazardous substance discharges by reducing the opportunities for duplication of effort at the state level. Additionally, the abilities of local communities to plan for disasters would be enhanced. ERVIN MARTIN, (TESTIFIED VIA TELECONFERENCE), DIRECTOR, ALASKA DIVISION OF EMERGENCY SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke in support of the legislation noting that it would provide good public policy by consolidating functions. JEFF MORRISON, LEGISLATIVE LIAISON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, pointed out the joint support of both the Department of Environmental Conservation (DEC) and the Department of Military and Veterans Affairs (DMVA). The legislation would expand the responsibilities of the State Emergency Response System (SERS) for all hazards and would require an additional two planners to be hired by the Department in order to develop that plan. 10 Mr. Morrison explained that the legislation would coordinate all planning activities. Currently, DMVA is charged by statute to work with communities to prepare plans for disasters. DEC is charged by statute to work with communities to prepare plans for hazardous substance and oil spills. To the extent that those two programs overlap, there are conflicting statutes. The legislation would place DMVA in charge of developing these plans. Discussion followed between Committee members, Ms. Kreitzer and Mr. Morrison regarding the response plan and the associated timing of the plan. Co-Chair Larson placed CS SB 33 (FIN) into Subcommittee with Representative Foster as Chair and with members Representative Therriault and Representative Brown. CS SB 33 (FIN) was HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 3:15 P.M. 11