GOVERNMENT RELATIONS COMMITTEE MEETING AGENDA

CHAMBER OFFICE Tuesday, April 14, 2015 @ 8:00AM

ACTION INFO Notes

1. Call to Order - Welcome & Introductions X

2. Conflict of Interest Disclosure X

3. Approval of Agenda X

4. Approval of Minutes from April 7, 2015 X

PRESENTATION

5. None X

OLD BUSINESS

6. Healthcare Sub-Committee Update X

7. Review Legislative Bills for GRC & Assign or Receive Updates from Committee Members

X Bill tracker included in packet

8. Federal Issues Survey Responses X Postponed

NEW BUSINESS

9. UAF Letter of Support for funding and HB 105 Letter of Concern

X

10. Medicaid: Discussion X

11. K12 Education Funding: Discussion X

12. HB 107 – Board of Regents X Update from Chair

13. SB 97 – Employment Tax for Education X Bill included in packet

REPORTS & COMMUNICATIONS

14. Committee Attendance Report

15. Committee Calendar 16. Staff Report/Comments 17. Committee Chair Report

- Arctic Policy Update - February Community Perspective

18. Committee Member Comments

19. Guest Comments

X

X

X

X

X

X

Included in packet Included in packet

UPCOMING GRC MEETING(S)

April 21, 2015 – Topic To Be Determined

UPCOMING CHAMBER MEETINGS & EVENTS

Upcoming GMLs at the Carlson Center April 14: Family Friendly Workplace Awards April 21: Alice Rogoff – Arctic Research & Mayor Luke Hopkins – Budget Presentation April 28: Rejection Proof by: Jia Jiang

Military Appreciation Banquet – Friday, May 1 – tickets can be purchased online

20. Adjourn X

Government Relations Committee Meeting Minutes Tuesday, April 7, 2015 – 7:30AM

Chamber Office Committee Members Present: Anna Atchison, Jeff Cook, Sarah Lefebvre, Jenny Mahlen, Derek Miller, Sarah Obed, Tammy Randolph, John Ringstad, Lorna Shaw, Rick Solie Guests Present: Chris Eyler, Mayor Luke Hopkins, Karl Gohlke, Jerry Walker Staff Present: Liz Wolfe, Lisa Herbert

1. Teleconference with Interior Delegation Members (7:30am – 8:00am) Welcome & Introductions: Representatives Wilson, Kawasaki, Talerico and staff from other ID offices were present as well as Senators Coghill & Bishop. DISCUSSION: Interior Energy Project | AIDEA’s Purchase of Pentex | HB 105/SB50: Trying to move the bill tomorrow. In Resources on Senate side. Which bill will be vehicle, has not been settled. Still a challenge because there is not a plan/project to tie it to, they have heard more than one plan at this point. Sen Coghill said that they are still talking about $15 at the city gate, still leaving the cost very high. Rep. Wilson reported that they were given a June timeframe for AIDEA to provide their due-diligence.

HB 174 / SB 96 – Oil & Gas Production Tax: Not relevant this session – will need to engage bill next session.

FY16 Budget: Senate budget under reconsideration today. 24 hour rule begins Thursday. They have received about 20 letters supporting capital budget funding the UAF engineering building, budget still has the $8m the Governor put in for the engineering building. Not expecting any new money in capital budget.

Other Chamber Priorities (as time allows):

Gas Pipeline Discussion: Senator Coghill reported that the Governor and the legislature are still trying to work together to move forward on the gas pipeline, but there are still conflicts between administration and legislature that need to be worked on.

Medicaid Expansion Discussion: Representative Wilson reported that House Finance will have a hearing regarding this legislation today. Legislature is split on this issue at this time on both the House and Senate sides. There are two bills on the issue: Governor’s & Sen. Kelly’s.

2. Call to Order/Roll Call:

Derek Miller called the meeting to order at 8:01AM. Quorum was established.

3. Conflict of Interest Disclosure: No conflicts were disclosed.

4. Approval of Agenda: MOTION: A motion was made by John Ringstad and was seconded to approve the meeting agenda as presented. No further discussion, the motion carried without objection.

5. Approval of Minutes from March 31, 2015:

MOTION: A motion was made by Lorna Shaw and was seconded to approve the meeting minutes as presented from March 31, 2015. No further discussion, the motion carried without objection.

PRESENTATION:

6. U.S. Chamber of Commerce Legislative Update from Chris Eyler, Executive Director for Northwest Region: Chris provided the committee with an update of federal issues that the U.S. Chamber is looking at:

Waters of the U.S. is now one of the Chamber’s top federal priorities – unclear what their strategy will be at this time, but will be a big deal over the next couple of months

Highway Trust Fund is another top priority. Funding ends in June. Considering supporting a raise in federal gas tax. Highway Trust Fund is important to Alaska – state receives $7 of funding for every $1 Alaska contributes. U.S. Chamber is advocating for a long-term fix.

Legislative successes include: Keystone XL Pipeline Bill but was vetoed by president. Also, fixing long-term Medicaid doctor payment formula. House and senate passed a budget. First budget in 6 years expected to pass through Congress this month.

Debt ceiling was reached March 15th. Congress will need to raise debt ceiling in Sept/Oct. U.S. Chamber is supporting a clean debt ceiling increase.

Trade is the biggest issue right now. Congress needs to give the President trade promotion authority

Export Import (Ex/Im) Bank expires at the end of June – Fairbanks Chamber has supported in reauthorization in the past.

Regulatory Reform – Currently 3 pieces of legislation right now: 1) Regulatory Accountability Act, 2) Rapid Act, 3) Sunshine for Regulatory Decrees and Settlements Act

NLRB – Joint employer issue

Immigration continues to be a big issue – won’t likely be any immigration reform during this Congress

Upcoming Government Affairs Conference in Las Vegas (Sept. 30 & Oct. 2) & Nashville (Oct. 14 -16)

Fairbanks Chamber is working on educating membership on Arctic Policy – will share details of that with U.S. Chamber when available.

OLD BUSINESS:

7. Healthcare Sub-Committee Update: Chamber will have a Medicaid Program on Tuesday, August 4th. Workers’ Compensation Program in September possibly. Teleconference scheduled with Jim, Derek, Lisa and Liz to decide what those should look like. Chris said we are welcome to use U.S Chamber as a resource – they have a health care staff.

8. Review Legislative Bills for GRC & Assign or Receive Updates from Committee Members/Staff: Bill tracker included in packet. Nothing that committee needs to engage in at this time. Base Student Allocation – what should be the Chamber’s position? Committee would like to address over the next year during the interim. Committee agreed that a set of guiding principles/recommendations should be established for 2016, similar to that of UAF’s program review – what is important, how does it relate to workforce development? Agree that there need to be structural changes to Education – funding will likely continue to decrease.

NEW BUSINESS:

9. Request to sign-on to Online Petition/Letter to Congress Supporting Rural Housing Funding from the National Rural Housing Coalition: Committee referred this to Urban & Rural Affairs Committee for a recommendation.

10. HB 174 / SB 96: No discussion. Tabled until call of the Chair. 11. HB 107 – Board of Regents Bill: Derek will have an update for the committee at the next meeting.

REPORTS & COMMUNICATIONS:

12. Committee Attendance Report: Included in meeting packet for committee review. Members are encouraged to maintain a 75% attendance rate.

13. Executive Director/Staff Report: Lisa reported that Daylight Savings was discussed at the board meeting yesterday. Board requested a draft letter requesting the legislature to not take action due to other important issues facing our state right now. Lisa is monitoring the bill’s movement.

14. Committee Chair Report:

Arctic policy update – Sarah, Derek & Staff will work on a program date

15. Committee Member Comments: Rick commented that the IGU right of way clearing has become a public concern on Facebook, but believe that there needs to be education on right of ways and public utility easements to the community. Lisa will reach out to the News-Miner to see if they are interested in something like that.

16. Guest Comments: None

UPCOMING GRC COMMITTEE MEETING(S

April 14th UPCOMING CHAMBER MEETINGS & EVENTS: Membership Luncheons (GMLs)

April 7: Senator Dan Sullivan

April 14: Family Friendly Workplace

April 21: Alice Rogoff – Arctic Research & Mayor Luke Hopkins – Budget Presentation

April 28: Rejection Proof by: Jia Jiang

Military Appreciation Banquet for Friday, May 1: Tickets are on sale now Derek Miller adjourned the meeting at 9:03AM. Respectfully Submitted, Liz Wolfe Committee Coordinator

100 Cushman St., Suite 102 | Fairbanks, Alaska 99701-4665

ph (907) 452-1105 | fax (907) 456-6968 | www.FairbanksChamber.org

April 10, 2015 RE: Support for FY16 Funding for UAF Engineering Building Dear Members of the Alaska State Legislature, The Greater Fairbanks Chamber of Commerce is longtime supporter of the statewide University of Alaska (UA) system, and in particular of the University of Alaska Fairbanks (UAF). We believe that a healthy university is vital for the education of our citizenry, the development of a highly trained workforce, and the research and development endeavors necessary to address the state’s critical challenges. The Fairbanks Chamber, through the work of our government relations and education committees, seeks to advise our membership on matters of education that relate to the business community. As the leading university for research and development, we continue to support the construction and completion of UAF’s Engineering Building. We respectfully request the legislature support a $10 million capital appropriation that will allow UAF to continue construction in FY16. Partial funding will provide UAF the ability to complete two classrooms as well as two labs. A separate major effort is underway to secure $6.5 million in private investment, of which $1 million has already been secured, to help complete the building’s 4th floor. If continued funding is delayed, the state runs the risk of price escalation due to remobilizing of construction crews each year and inflation. We sincerely appreciate the legislature’s hard work on the state’s FY16 budget and encourage you to fund capital projects that will pay great dividends to the State of Alaska, its people and its businesses.

Sincerely, GREATER FAIRBANKS CHAMBER OF COMMERCE

Lisa Herbert Jennifer Imus Executive Director Board of Directors, Chair

E X E C U T I V E

P A R T N E R S

D I A M O N D

Alaska Airlines

BP Exploration

ConocoPhillips

ExxonMobil

Fairbanks Daily News-Miner

Fairbanks Memorial Hospital &

Denali Center

Flint Hills Resources Alaska

Mt. McKinley Bank

RAVN Alaska

P L A T I N U M

Alyeska Pipeline Service Co.

Doyon, Limited

Fred Meyer Stores

Golden Heart Utilities

Wells Fargo Bank Alaska

G O L D

Carlson Center

Denali State Bank

Design Alaska

Doyon Utilities LLC

First National Bank Alaska

GCI

Kinross Fort Knox Mine

Lynden

Northrim Bank

Sumitomo Metal Mining Pogo LLC

Usibelli Coal Mine

WAL-MART Stores, Inc.

S I L V E R

Agency 49

Alaska Communications

Alaska Railroad

Alaska USA

Dr. Christopher Henry

Henry Orthodontics

Everts Air Cargo, Everts Air AK

Exclusive Paving & University Redi-Mix

Fairbanks Natural Gas

Flowline Alaska

General Teamsters Local 959

Gene’s Chrysler, Jeep & Dodge

Hale & Associates, Inc.

JL Properties, Inc.

Key Bank

MAC Federal Credit Union

Personnel Plus

Sam’s Club

Seekins Ford Lincoln

Shell Exploration & Production Co.

Sourdough Fuel/PetroStar

Spirit of Alaska FCU

State Farm Insurance

Tammy Randolph, Agent

Ed Randolph, Agent

Tanana Valley Clinic

TDL Staffing

Totem Ocean Trailer Express

Tower Hill Mines-Livengood Gold Project

University of Alaska Fairbanks

Verizon Wireless

Vivlamore Companies

Yukon Title Company

100 Cushman St., Suite 102 | Fairbanks, Alaska 99701-4665

ph (907) 452-1105 | fax (907) 456-6968 | www.FairbanksChamber.org

April 10, 2015 Honorable Representatives Thompson & Neuman Co-Chairs, Finance Committee Members of the House Finance Committee Alaska State House of Representatives RE: House Bill 105 Dear Representatives Thompson & Neuman, The Greater Fairbanks Chamber of Commerce appreciates legislative efforts in recent years to address the high cost of energy in the Interior, specifically with passage of the Interior Energy Project (IEP) in 2013. Last month, the Fairbanks Chamber re-confirmed our support of that project by sending a letter supporting HB 105 and SB 50. We encourage you to pass the legislation this session. However, the Fairbanks Chamber is concerned with recent changes made by the House Resources Committee to HB 105 that would delay the IEP and create additional economic hurdles to the Project. From our perspective, the amendments:

Place a regulatory burden not imposed on other municipal utilities and may limit

the rate flexibility designed to keep customer prices low in the Projects’ early years,

which are the most economically challenging.

Require AIDEA to come back for legislative approval of the project plan, which will

cause a significant delay, introduce new project risks and essentially require

legislative re-approval of (SB 23) funds it had previously appropriated.

Prohibit AIDEA from commercial gas contract discussions, a key element of the

supply chain, thus create more price uncertainty and increase project risk.

The Chamber’s #1 critical priority is reducing the high cost of energy. We remain steadfast in our support of the IEP’s stated goals of bringing affordable natural gas to the greatest number of Interior residents and businesses as rapidly as possible and we are concerned that the recent amendments made by the House Resources Committee are in direct conflict with these goals. We thank you for your leadership on this critical issue facing our community.

Sincerely, GREATER FAIRBANKS CHAMBER OF COMMERCE

Lisa Herbert Jennifer Imus Executive Director Board of Directors, Chair

E X E C U T I V E

P A R T N E R S

D I A M O N D

Alaska Airlines

BP Exploration

ConocoPhillips

ExxonMobil

Fairbanks Daily News-Miner

Fairbanks Memorial Hospital &

Denali Center

Flint Hills Resources Alaska

Mt. McKinley Bank

RAVN Alaska

P L A T I N U M

Alyeska Pipeline Service Co.

Doyon, Limited

Fred Meyer Stores

Golden Heart Utilities

Wells Fargo Bank Alaska

G O L D

Carlson Center

Denali State Bank

Design Alaska

Doyon Utilities LLC

First National Bank Alaska

GCI

Kinross Fort Knox Mine

Lynden

Northrim Bank

Sumitomo Metal Mining Pogo LLC

Usibelli Coal Mine

WAL-MART Stores, Inc.

S I L V E R

Agency 49

Alaska Communications

Alaska Railroad

Alaska USA

Dr. Christopher Henry

Henry Orthodontics

Everts Air Cargo, Everts Air AK

Exclusive Paving & University Redi-Mix

Fairbanks Natural Gas

Flowline Alaska

General Teamsters Local 959

Gene’s Chrysler, Jeep & Dodge

Hale & Associates, Inc.

JL Properties, Inc.

Key Bank

MAC Federal Credit Union

Personnel Plus

Sam’s Club

Seekins Ford Lincoln

Shell Exploration & Production Co.

Sourdough Fuel/PetroStar

Spirit of Alaska FCU

State Farm Insurance

Tammy Randolph, Agent

Ed Randolph, Agent

Tanana Valley Clinic

TDL Staffing

Totem Ocean Trailer Express

Tower Hill Mines-Livengood Gold Project

University of Alaska Fairbanks

Verizon Wireless

Vivlamore Companies

Yukon Title Company

SB0097A -1- SB 97 New Text Underlined [DELETED TEXT BRACKETED]

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SENATE BILL NO. 97

IN THE LEGISLATURE OF THE STATE OF ALASKA

TWENTY-NINTH LEGISLATURE - FIRST SESSION BY SENATOR BISHOP Introduced: 4/7/15 Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED "An Act imposing a limited education tax on wages and on net earnings from self-1

employment; relating to the administration and enforcement of the education tax; and 2

providing for an effective date." 3

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4

* Section 1. AS 43.45 is amended by adding new sections to read: 5

Chapter 45. Education Tax. 6

Sec. 43.45.011. Tax imposed. (a) A tax is imposed on the wages and net 7

earnings from self-employment of every 8

(1) resident individual; and 9

(2) nonresident and part-year resident individual with income from a 10

source in the state. 11

(b) For an individual whose wages and net earnings from self-employment are 12

(1) $10,000 or more, but less than $50,000, the tax is $100 a year; 13

(2) $50,000 or more, but less than $100,000, the tax is $200 a year; 14

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SB 97 -2- SB0097A New Text Underlined [DELETED TEXT BRACKETED]

(3) $100,000 or more, but less than $500,000, the tax is $300 a year; 1

(4) $500,000 or more, the tax is $500 a year. 2

(c) For purposes of (b) of this section, the wages and net earnings from self-3

employment of a 4

(1) resident are the total annual wages and net earnings from self-5

employment of the resident; 6

(2) nonresident or part-year resident are the annual wages and net 7

earnings from self-employment of the nonresident or part-year resident attributable to 8

a source in the state. 9

Sec. 43.45.021. Collection of tax by employer. (a) An employer shall deduct 10

and withhold one half of the estimated taxes due under AS 43.45.011 from an 11

employee's wages subject to withholding under 26 U.S.C. 3401 - 3406 from each of 12

the first two regular payrolls of the calendar year. If the employee's first two payrolls 13

are insufficient to cover the estimated tax due, the employer shall continue to deduct 14

and withhold from subsequent payrolls until the tax due under this chapter is fully 15

withheld. The employer shall withhold any outstanding amount of tax due under 16

AS 43.45.011 from the final regular payroll of the calendar year. 17

(b) An employer is liable for the tax required to be withheld from an employee 18

unless the employer can demonstrate that the employer relied on proof provided by the 19

employee that the total tax for the calendar year imposed under AS 43.45.011 had 20

already been withheld under this section or paid under AS 43.45.031. A deduction of 21

the tax may not be made from the wages of an individual who provides proof to the 22

employer that the entire tax imposed under AS 43.45.011 on that individual for the 23

calendar year has already been withheld or paid under AS 43.45.031. The department 24

may impose a civil penalty on an employer in an amount up to five times the amount 25

of tax due from employees but not remitted to the department. The penalty shall be 26

imposed in the manner provided by AS 43.05.245. 27

(c) Tax withheld by an employer becomes due and shall be paid by an 28

employer to the department in accordance with regulations adopted by the department. 29

(d) An employer shall maintain a record of the amount deducted from the 30

wages of each employee and shall furnish an annual statement of the deductions to 31

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SB0097A -3- SB 97 New Text Underlined [DELETED TEXT BRACKETED]

each employee and to the department in accordance with regulations adopted by the 1

department. 2

(e) The department shall, if it will result in cost savings for the state in the 3

administration of the tax, for employers in the administration of the tax, or both, 4

coordinate collection and reporting of the tax imposed in this chapter with the 5

collection and reporting of employment security contributions by the Department of 6

Labor and Workforce Development, including permitting the Department of Labor 7

and Workforce Development to collect the tax payments and remit them to the 8

department. 9

Sec. 43.45.031. Payment of tax by self-employed individual. A self-10

employed individual shall remit to the department the tax due under AS 43.45.011 in 11

accordance with regulations adopted by the department until the entire tax has been 12

paid. 13

Sec. 43.45.041. Refund of overpayments. (a) If an individual pays to the 14

department, directly or through withholding by an employer, an amount exceeding the 15

total tax imposed under this chapter during a calendar year and the individual applies 16

for a refund in accordance with regulations adopted by the department, the department 17

shall refund the overpayment to the individual. 18

(b) Interest on an overpayment may not be allowed under AS 43.05.280 if the 19

department refunds the overpayment within 90 days after the date the individual 20

correctly files the refund claim. 21

(c) The Department of Revenue may adopt regulations to coordinate refunds 22

of overpayments under this section with refunds of employment security contributions 23

under AS 23.20.165. 24

(d) An individual may apply for a refund under this section only during the 25

calendar year immediately following the calendar year in which the excess was paid. 26

Sec. 43.45.051. Report of payments to self-employed individuals. A person 27

required to report a payment to a self-employed individual to the federal government 28

under 26 U.S.C. shall also report that payment to the department in accordance with 29

regulations adopted by the department. 30

Sec. 43.45.061. Disposition of tax proceeds. (a) The tax and penalties 31

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SB 97 -4- SB0097A New Text Underlined [DELETED TEXT BRACKETED]

collected by the department under this chapter shall be deposited into the general fund 1

and accounted for separately. 2

(b) The legislature may appropriate the estimated amounts to be collected and 3

separately accounted for under (a) of this section for education. Nothing in this section 4

creates a dedicated fund. 5

Sec. 43.45.099. Definitions. In this chapter, 6

(1) "employee" has the meaning given in 26 U.S.C. 3401; 7

(2) "employer" has the meaning given in 26 U.S.C. 3401; 8

(3) "net earnings from self-employment" has the meaning given in 26 9

U.S.C. 1402; 10

(4) "wages" has the meaning given in 26 U.S.C. 3401. 11

* Sec. 2. AS 43.45.011, 43.45.021, 43.45.031, 43.45.041, 43.45.051, 43.45.061, and 12

43.45.099 are repealed. 13

* Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 14

read: 15

REGULATIONS. The Department of Revenue may adopt regulations to implement 16

sec. 1 of this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), 17

but not before the effective date of sec. 1 of this Act. 18

* Sec. 4. Section 2 of this Act takes effect on the earlier of the following: 19

(1) January 1, 2024; or 20

(2) the date that the commissioner of natural resources notifies the revisor of 21

statutes that a tankship designed for transporting commercial quantities of liquefied natural 22

gas has left the Port of Nikiski holding an amount of liquefied natural gas at or near the 23

complete capacity of the ship. 24

* Sec. 5. Section 3 of this Act takes effect immediately under AS 01.10.070(c). 25

* Sec. 6. Except as provided in secs. 4 and 5 of this Act, this Act takes effect January 1, 26

2016. 27

4/7/15Total # of

Meetings

QUORUM = 7 Meeting Held: Yes / No Yes 13

NAME ORGANIZATION X % Attend % Absent

1 Atchison, Anna Kinross Fort Knox Mine 6 46% 54%

2 Bump, Jennifer Wells Fargo Bank Alaska X 12 92% 8%

3 Cook, Jeff Flint Hills Resources X 8 62% 38%

4 Lefebvre, Sarah Exclusive Paving X 9 69% 31%

5 Mahlen, Jenny First National Bank Alaska X 10 77% 23%

6 Miller, Derek (CHAIR) UAF X 13 100% 0%

7 Obed, Sarah Doyon, Limited X 6 46% 54%

8 Randolph, Tammy State Farm Insurance X 10 77% 23%

9 Ringstad, John BP X 9 69% 31%

10 Shaw, Lorna Pogo Mine X 7 88% 13%

11 Solie, Rick Tower Hill Mines - Livengood Project X 8 62% 38%

12 Van Horn, Tiffany Golden Heart Utilities 7 54% 46%

Quorum Established: Yes / No yes 13

Committees members are expected to attend at least 75% of regularly scheduled meeings.

Currently, 6 of 12 members are meeting the attendance expectations

Government Relations Committee 2015 Member Attendance

Apr i l 2015

NOTES: February Community Perspective Piece – Derek Miller

Monday Tuesday Wednesday Thursday Friday

1

2

3 Good Friday

6 12PM – Board Meeting

7 7:30AM – GRC Teleconference with Interior Delegation 8AM – GRC Mtg 12PM – GML: Senator Sullivan 5:30PM – Reception with Senator Sullivan at Westmark Hotel RSVPs Required

8 9AM - Field Hearing with Sen. Sullivan on Waters of the U.S. at Borough Assembly

9

10

13

14 8AM – GRC Mtg. 12PM – GML: Family Friendly Workplace

15

16

17

20

21 8AM – GRC Mtg. 12PM – Alice Rogoff - Arctic Research / Mayor Hopkins - Budget Presentation

22

23

24

27

28 8AM – GRC Mtg. 12PM - Rejection Proof - Jia Jiang

29

30