Legislature(2015 - 2016)SENATE FINANCE 532

03/03/2015 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 6 Presentation: Overview FY17 Operating Budget TELECONFERENCED
Departments: Environmental Conservation and
-- Public Testimony --
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 6                                                                                                             
     "An Act exempting the state from daylight saving time;                                                                     
     and providing for an effective date."                                                                                      
9:01:46 AM                                                                                                                    
Vice-Chair Micciche  MOVED to  ADOPT the  proposed committee                                                                    
substitute  for  SB  6,   Work  Draft  29-LS0111\N  (Shutts,                                                                    
3/2/15). Senator Dunleavy OBJECTED for discussion.                                                                              
ERIN  SHINE, STAFF,  SENATOR  ANNA  MACKINNON, stated  there                                                                    
were  two  new sections  in  the  committee substitute.  She                                                                    
looked at  page 1, line  12, which added a  requirement that                                                                    
the governor petition the  U.S. Department of Transportation                                                                    
21  days  after the  effective  date  of that  section.  She                                                                    
looked  at page  2, line  11, which  provided the  immediate                                                                    
effective  date   for  Section  2  for   the  petition.  The                                                                    
effective date for  Section 1, which was  the elimination of                                                                    
daylight saving time remained January 1, 2017.                                                                                  
Senator Dunleavy wondered if the  bill was intended to start                                                                    
a  process  for the  U.S.  Department  of Transportation  to                                                                    
examine the issue.  The department could deny  the change if                                                                    
they  felt  that  it  did  not have  a  positive  impact  on                                                                    
commerce.  Ms.   Shine  replied  in  the   affirmative.  She                                                                    
explained that the petition would  not trigger the time zone                                                                    
change in Alaska.                                                                                                               
Senator  Dunleavy asserted  that  the  department must  find                                                                    
that  the change  had  a positive  impact  on commerce.  Ms.                                                                    
Shine responded in the affirmative.                                                                                             
Co-Chair  MacKinnon   queried  the  requirements   that  the                                                                    
department used  to consider a  time zone change.  Ms. Shine                                                                    
referred to a  document "Procedure for Moving  and Area from                                                                    
One Time  Zone to Another"  (copy on file).  The overarching                                                                    
substantial  requirement  would  be to  decide  whether  the                                                                    
change to a time zone was convenient for commerce.                                                                              
Senator  Dunleavy WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Work Draft 29-LS0111\N was ADOPTED.                                                                          
MIKE  STEDMAN, OWNER,  ALASKA  SEAPLANES, JUNEAU,  testified                                                                    
against the legislation.  He felt that the bill  was did not                                                                    
benefit  commerce. He  stated that  his company  had several                                                                    
flights that operated  late into the evenings,  so losing an                                                                    
hour   of    daylight   would   affect    those   operations                                                                    
substantially. He stated that  the five hour time difference                                                                    
from the east coast would  be difficult for acquiring parts.                                                                    
He  shared   that  he  was   also  personally   against  the                                                                    
legislation, because it would affect evening recreation.                                                                        
9:07:09 AM                                                                                                                    
Senator Olson wondered if there  were conversations with the                                                                    
other  extreme  of the  time  zone  in Alaska.  Mr.  Stedman                                                                    
replied that the other operators had similar concerns.                                                                          
Senator Olson  asked if those  businesses were  aligned with                                                                    
Mr.  Stedman's  perspective.  Mr.  Stedman  replied  in  the                                                                    
Co-Chair  MacKinnon shared  that she  had received  a letter                                                                    
from a float plane operating  company that was in support of                                                                    
the legislation,  because they dealt  with issues of  fog in                                                                    
the early morning.                                                                                                              
Senator Bishop  asked for a  timeframe of the  most impacted                                                                    
evening  flying. Mr.  Stedman  replied that  the bill  would                                                                    
negatively affect  evening flying  beginning in  mid-July to                                                                    
CRAIG DAHL, EXECUTIVE DIRECTOR,  JUNEAU CHAMBER OF COMMERCE,                                                                    
JUNEAU, spoke against the legislation.  He shared that there                                                                    
was a survey  conducted among the Chamber  members, and over                                                                    
25 percent  of the  members answered  the survey.  He stated                                                                    
that 74  percent of those  responding were against SB  6. He                                                                    
furthered that  20 percent were  in favor and 6  percent had                                                                    
no opinion. The  comments fell into two groups:  1) the loss                                                                    
of one  hour of daylight  affecting tour operations;  and 2)                                                                    
the differential  in time change with  the Alaska's adjacent                                                                    
market areas.                                                                                                                   
Co-Chair  MacKinnon wondered  if the  members were  informed                                                                    
about the  other issues  of why the  bill was  proposed. Mr.                                                                    
Dahl  replied that  the members  were presented  a straight-                                                                    
forward  yes or  no  answer option.  The  members were  also                                                                    
provided a link to the Senate Finance Committee survey.                                                                         
9:12:23 AM                                                                                                                    
DAN  CORSON,  OPERATIONS  DIRECTOR, WINGS  AIRWAYS,  JUNEAU,                                                                    
spoke  against  the  legislation. He  echoed  Mr.  Stedman's                                                                    
comments. He shared  that the bill would cause  a 15 percent                                                                    
loss of business.                                                                                                               
Senator Olson wondered  if there was a  concern from federal                                                                    
officials  as to  whether the  bill  would have  enforcement                                                                    
action against  pilots or the  air taxi. Mr.  Corson replied                                                                    
that  he had  not heard  from the  federal government  about                                                                    
enforcement action.                                                                                                             
Senator  Olson stressed  that he  was concerned  with flight                                                                    
standards of the federal government.  He wondered if federal                                                                    
agencies  had voiced  an  opinion on  the  bill. Mr.  Corson                                                                    
replied that he had not heard from any federal agencies.                                                                        
JIM PARISE,  DIRECTOR FIXED  INCOME, ALASKA  PERMANENT FUND,                                                                    
JUNEAU, commented against the  legislation. He stressed that                                                                    
they often recruited  employees, based on a  nice quality of                                                                    
life in  Juneau. He remarked  that pushing the  beginning of                                                                    
the day  to 4am, would  cause many  employees to get  to bed                                                                    
around 7pm.                                                                                                                     
Vice-Chair  Micciche  wondered if  Mr.  Parise  would be  in                                                                    
support of  two time zones in  the state, as long  as Juneau                                                                    
was only four hours from New  York City. Mr. Parise was only                                                                    
commenting on the original bill.                                                                                                
Co-Chair MacKinnon  explained that  the current  bill stated                                                                    
that there would  be an elimination of  daylight savings, so                                                                    
half of  the year would be  a four hour difference  and half                                                                    
of the  year would be a  five hour difference from  New York                                                                    
City.  The bill  would  petition the  federal government  to                                                                    
advance Alaska to Pacific Time.                                                                                                 
Mr.  Parise  felt  that  the  Pacific  Time  would  be  less                                                                    
troublesome, but there  would still be some  confusion as to                                                                    
what time to conduct business with New York.                                                                                    
9:17:19 AM                                                                                                                    
Vice-Chair Micciche surmised that a  new time zone would see                                                                    
an improvement  from four hours  to three hours.  Mr. Parise                                                                    
Co-Chair   MacKinnon  wondered   if   Mr.   Parise  was   in                                                                    
opposition.  Mr.   Parise  stated   that  he   was  entering                                                                    
LYNN  WILLIS,   SELF,  EAGLE  RIVER   (via  teleconference),                                                                    
testified in  support of the  legislation. He felt  that the                                                                    
arguments   supporting  daylight   saving   time  were   not                                                                    
sufficient  in  forcing  700,000  Alaskans  to  observe  the                                                                    
archaic law  twice a year.  He felt  that the intent  of the                                                                    
federal  law authorizing  daylight saving  time was  to save                                                                    
energy, and he  felt that there was  no testimony indicating                                                                    
a  reduction of  energy costs  by observing  daylight saving                                                                    
Co-Chair MacKinnon  apologized for not hearing  Mr. Willis's                                                                    
testimony at the bills previous hearing.                                                                                        
TOM  LAURENT, SELF,  PETERSBURG (via  teleconference), spoke                                                                    
against the original version of  SB 6. He shared that moving                                                                    
Southeast Alaska  to the Alaska  Standard Time lost  an hour                                                                    
of daylight during the summers. He  was did not want to lose                                                                    
another hour of evening daylight.                                                                                               
9:21:51 AM                                                                                                                    
PAULA  RAK, SELF,  WRANGELL (via  teleconference), testified                                                                    
against the  original version legislation. She  did not want                                                                    
to lose an  hour of daylight in the evenings.  She felt that                                                                    
an hour  of daylight  at 2am  did not  provide for  a better                                                                    
quality of life.                                                                                                                
STUART COHEN, OWNER, INVISIBLE  WORLD, JUNEAU, spoke against                                                                    
the  legislation.  He  stated  that  the  legislation  would                                                                    
impact his business in a number  of ways. He shared that the                                                                    
evening tourist  business after dinner was  approximately 10                                                                    
percent of  the sales  for the year.  He felt  that removing                                                                    
the light may force cruise  ship passengers to remain on the                                                                    
9:26:17 AM                                                                                                                    
TOM   WILLIAMS,  FINANCIAL   OFFICER,   WARD  AIR,   JUNEAU,                                                                    
testified  against   the  legislation.  He  felt   that  the                                                                    
legislation   would  adversely   impact  his   business  and                                                                    
personal  life. He  felt  that the  initial  drivers of  the                                                                    
legislation included health and  safety issues; and also the                                                                    
time zone issue.  He felt that the original  bill would have                                                                    
an adverse effect on the Southeast Alaska economy.                                                                              
DAVID BERG, VIKING  TRAVEL, PETERSBURG (via teleconference),                                                                    
spoke  against  the legislation.  He  felt  that the  health                                                                    
issues  that some  likened to  daylight  savings time  would                                                                    
still occur at  various times of the year. He  felt that the                                                                    
visitors to Alaska  would be confused by  the different time                                                                    
9:32:18 AM                                                                                                                    
MARINA  LINDSEY, SELF,  JUNEAU  (via teleconference),  spoke                                                                    
against the legislation. She  felt that eliminating daylight                                                                    
saving  time would  only further  separate  Alaska from  the                                                                    
contiguous United States.  She worked in an  office that was                                                                    
based  in Maryland,  and hoped  that she  would not  need to                                                                    
arrive to work earlier, should the legislation pass.                                                                            
RICK CURRIER,  SELF, JUNEAU  (via teleconference),  spoke in                                                                    
opposition to  the legislation.  He shared  that he  and his                                                                    
wife were each  teachers, and saw a  disruption in students.                                                                    
Even  though he  had experienced  a negative  disruption, he                                                                    
was  against  the  legislation.  He  felt  that  Juneau  was                                                                    
already in the wrong time zone.                                                                                                 
DOROTHY  WILSON,  SELF,  JUNEAU (via  teleconference),  felt                                                                    
that Southeast  Alaska should not  be a different  time zone                                                                    
than the  rest of the  state. She shared that  she conducted                                                                    
business throughout the state,  and felt that splitting time                                                                    
zones  in the  state would  have  an adverse  effect on  her                                                                    
business and personal life.                                                                                                     
9:38:59 AM                                                                                                                    
PATTI MACKEY, PRESIDENT AND  CEO, KETCHIKAN VISITORS BUREAU,                                                                    
KETCHIKAN   (via   teleconference),    spoke   against   the                                                                    
legislation.   She  relayed   that  some   of  the   tourism                                                                    
businesses in Ketchikan would be  negatively impacted by the                                                                    
loss  of evening  daylight. She  remarked that  some of  the                                                                    
maritime   vessel  operations   would  also   be  negatively                                                                    
impacted.  She focused  her comments  on the  impact on  the                                                                    
cruise ship industry.                                                                                                           
POSIE  BOGGS, SELF,  ANCHORAGE  (via teleconference),  spoke                                                                    
against SB 6. She shared  that there were 23 national health                                                                    
centers that were reflected  in Alaska's health non-profits.                                                                    
She  shared  that she  was  a  volunteer for  literacy  non-                                                                    
profits, and her  colleagues were online late  at night from                                                                    
the eastern part of the U.S.  She felt that it would disrupt                                                                    
the health work,  because it often took weeks  to take phone                                                                    
meetings with researchers.                                                                                                      
MARY  DESMET,  SELF,   JUNEAU  (via  teleconference),  spoke                                                                    
against   the  legislation.   She   stated   that  she   had                                                                    
experienced  all of  the time  zone changes  in Alaska.  She                                                                    
stressed  that Alaska  was a  large  state, so  most of  the                                                                    
impacts  were related  to Southeast  Alaska.  She felt  that                                                                    
issue was extremely complicated.  She urged the committee to                                                                    
examine the issue further, and  she felt that the statistics                                                                    
in the  polls did not  reflect accurate data. She  urged the                                                                    
committee to focus on other issues.                                                                                             
9:46:12 AM                                                                                                                    
BRETT   CARLSON,   SELF,  COLDFOOT   (via   teleconference),                                                                    
testified  against  the   legislation.  He  appreciated  the                                                                    
efforts of  the committee.  He stressed  that it  started to                                                                    
get  darker in  the Arctic  region beginning  in August.  He                                                                    
stated that it was important  that there be sunlight for the                                                                    
flight seeing  industry. He remarked  that time  zone change                                                                    
would  eliminate the  ability to  operate the  tours in  the                                                                    
last quarter of the season.                                                                                                     
Senator  Olson  stressed  that   safety  was  the  paramount                                                                    
concern  in the  air travel  industry. He  wondered how  the                                                                    
legislation  would impact  Mr. Carlson's  safety operations.                                                                    
Mr.  Carson  replied  that  he also  operated  an  air  taxi                                                                    
service. He stated that Alaskans  tended to fly later in the                                                                    
evening. He  stressed that the  adjustment to  early evening                                                                    
departure times  in the  late summer was  in order  to avoid                                                                    
the darkness. He remarked that  many rural aircrafts did not                                                                    
have sophisticated lighting and navigation systems.                                                                             
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
Co-Chair  MacKinnon remarked  that there  was a  zero fiscal                                                                    
note.  She  wondered  if   the  committee  substitute  would                                                                    
require a change in the fiscal note.                                                                                            
9:53:22 AM                                                                                                                    
TOM   MAYOR,  DIRECTOR,   DIVISION   OF  GENERAL   SERVICES,                                                                    
DEPARTMENT OF  ADMINISTRATION, JUNEAU  (via teleconference),                                                                    
responded that  the department did  not anticipate  a change                                                                    
to the fiscal note.                                                                                                             
Vice-Chair Micciche  MOVED to  REPORT CS SB  6 (FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
Senator Hoffman commented that he  understood the impacts of                                                                    
the  legislation  on  Southeast  Alaska.  He  was  a  strong                                                                    
supporter of keeping  the capital in Juneau.  He shared that                                                                    
he  represented  western  Alaska, and  remarked  that  Dutch                                                                    
Harbor was  closer to Tokyo  than it was to  Washington D.C.                                                                    
He stressed  that there  were many parts  of the  state that                                                                    
would  see a  great benefit  to the  legislation. He  stated                                                                    
that  every portion  of the  state of  Alaska supported  the                                                                    
legislation  in   the  survey  that  was   provided  by  the                                                                    
Co-Chair MacKinnon  explained that  there was a  survey that                                                                    
Alaskans  could   take  on  the  Senate   Finance  Committee                                                                    
CSSB 6 (FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with   one  previously  published  zero                                                                    
fiscal note: FN1 (ADM).                                                                                                         
9:57:37 AM                                                                                                                    
AT EASE                                                                                                                         
10:04:22 AM                                                                                                                   

Document Name Date/Time Subjects
SB6 Supporting Document - Response from Departments.pdf SFIN 3/3/2015 9:00:00 AM
SB 6
SB6 Supporting Documents - US DOT Time Zone Move Procedure.pdf SFIN 3/3/2015 9:00:00 AM
SB 6
NEW FN SB 30 DCCED 022715 (2).pdf SFIN 3/3/2015 9:00:00 AM
SB 30
NEW FN SB 30 DOA 022715.pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 30 AACOP Cover Letter.docx SFIN 3/3/2015 9:00:00 AM
SB 30
SB 30 AACOP MJ Position Paper.pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 30 Implementing SB 30 vs SB 60 SB 62.pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 60
SB 62
SB6 Supporting Document - DST Online Survey Results.pdf SFIN 3/3/2015 9:00:00 AM
SB 6
SB30 Sectional Analysis Version F.pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 6 LTR to MacKinnon re Daylight Savings - Opposition.pdf SFIN 3/3/2015 9:00:00 AM
SB 6
SB6 CS for SB 6 work order verson N.pdf SFIN 3/3/2015 9:00:00 AM
SB 6
SB 30 030315 Marijuana Presentation .pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 30 Marijuana Initiative 030315.pdf SFIN 3/3/2015 9:00:00 AM
SB 30
SB 6 Public Testimony Willis - Support.pdf SFIN 3/3/2015 9:00:00 AM
SB 6