Legislature(2011 - 2012)HOUSE FINANCE 519
04/15/2012 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB53 | |
| SB25 | |
| SB119 | |
| SB136 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 136 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 25 | TELECONFERENCED | |
| += | SB 53 | TELECONFERENCED | |
| += | SB 119 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 136(FIN) am
"An Act providing a tax credit for employing a veteran
that may be taken against a liability for the tax on
corporation income; and providing for an effective
date."
11:33:05 AM
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute for CSSB 136(FIN)am, Work Draft 27-LS0983\U
(Bullock, 4/14/12).
Co-Chair Stoltze OBJECTED for discussion.
KENDRA KLOSTER, STAFF, SENATOR BILL WIELECHOWSKI, provided
a synopsis of the legislation. She explained that as of
June 2011, one million veterans were unemployed and the
jobless rate for post 9/11 was 13.3 percent. Young male
veterans between the ages of 18 to 24 were experiencing a
higher unemployment rate at 21.9 percent. She referred to
recent March 2012 data from a Syracuse University study
showing that young male veterans were at a 30 percent
unemployment rate. The bill aimed at helping unemployed
veterans to obtain employment upon their return from
military service. The legislation would provide a $2,000
income tax credit or a $3,000 credit for disabled veterans;
it stipulated that a veteran must work for at least 12
months for 1,560 hours or more (approximately 30 hours per
week). The bill also included a provision for seasonal
employment in the form of a $1,000 tax credit; to obtain
the seasonal credit a veteran would be required to work at
least 600 hours for 5 months.
Ms. Kloster pointed to a number of support letters from
small business owners and veterans' organizations including
Southeast Alaska Native Veterans, Vets Helping Vets,
Vietnam Veterans of America (copy on file).
11:35:04 AM
REPRESENTATIVE DAN SADDLER, CO-SPONSOR, communicated that
Section 1 authorized the Division of Motor Vehicles (DMV)
to designate a person's veteran status on a state issued
driver's license or ID card and would have an image of the
U.S. flag or other upon request. Section 2 would authorize
DMV to provide the names and addresses of people with a
veteran's designation to the Division of Veterans Affairs
upon approval of the individual; the opportunity would
provide veterans with another chance to receive important
health and other benefits. He stated that the bill provided
Alaskans with a way to carry reliable and convenient proof
of their veteran status and would help them to enjoy the
many benefits made available to them by a grateful state
and nation.
Co-Chair Stoltze remembered that Representative Costello
had been the responsible for a money saving flag in prior
legislation.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-LS0983\U was ADOPTED.
Representative Wilson asked whether the bill would present
a conflict for veterans who had served in the military at
different times; she wondered about potential
prioritization.
Co-Chair Thomas explained that the bill reflected a
veteran's caucus decision. The timeframe was limited to the
past 10 years in order to keep costs relatively low.
Co-Chair Thomas CLOSED public testimony.
Vice-chair Fairclough discussed the Department of Revenue
fiscal note; the changes in revenue were indeterminate
because the number of employers or employees who would
qualify for the tax credit was unknown.
Co-Chair Stoltze referenced a fiscal note from the
Department of Administration.
Representative Neuman asked how businesses were informed of
the credit. Ms. Kloster replied that the Department of
Military and Veterans Affairs was very active in working to
ensure that businesses were made aware of veterans'
benefits. She believed that the provision included by
Representative Saddler would help with veteran outreach
around the state.
Co-Chair Thomas added that statewide veterans'
organizations monitored legislation closely.
Co-Chair Stoltze believed that there was an acute awareness
in the business community (including the hospitality
industry and other) related to veterans.
11:40:16 AM
Vice-chair Fairclough discussed an additional fiscal note
from Department of Administration in the amount of $32,900
in FY 13 and $17,500 in FY 14. The total change in revenue
in FY 13 would be $51,300 and $102,700 in FY 14. [Note: The
Department of Administration fiscal note referenced here
did not report out of committee with the bill].
Representative Wilson MOVED to report HCS CSSB 136(FIN) out
of committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CSSB 136(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new indeterminate fiscal
note from the Department of Revenue.