Legislature(2013 - 2014)HOUSE FINANCE 519
03/21/2014 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB306 | |
| HB121 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 121 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 306 | TELECONFERENCED | |
HOUSE BILL NO. 306
"An Act relating to tax credits and administration of
tax credit programs; requiring the Department of
Revenue to report indirect expenditures; relating to
the duties of state agencies; requiring the
legislative finance division to analyze certain
indirect expenditures; relating to lapse dates for
appropriations for capital projects; repealing certain
statutes authorizing indirect expenditures; and
providing for an effective date."
8:37:47 AM
Vice-Chair Neuman MOVED to ADOPT the proposed committee
substitute for HB 306, Work Draft 28-LS1396\H (Nauman,
3/20/14).
Co-Chair Stoltze OBJECTED for discussion.
DANIEL GEORGE, STAFF, REPRESENTATIVE BILL STOLTZE,
explained the changes in the CS. He stated that the
technical changes in the bill related to a staggered repeal
of some of the tax credits.
Co-Chair Stoltze asked that the word "sunset" be used
rather than the word "repeal."
Mr. George looked at page 1, and noted that Representative
Reinbold was added as a sponsor. He looked at page 5, and
remarked that the previous Section 6 was removed, which was
a lapsing of appropriations or allocations for grants to
unincorporated communities, if substantial work was not
started within five years. He looked at page 6, lines 15
through 30, which were new Sections 8, 9, and 10. He looked
at page 7, and the new Section 7. He stated that Section 14
was newly inserted. He remarked that on lines 29 through
31, new contingency language was added. He looked and page
8, and noted the new Sections 19, 20, 21, and 22.
Representative Holmes asked for detail on how the changes
in the CS impacted the bill.
BRODIE ANDERSON, STAFF, REPRESENTATIVE STEVE THOMPSON,
stated that Section 6 was removed, and Sections 8,9,10, 11,
and 12 related to the staggered sunset dates. He explained
that Sections 13, 14, 15, and 16 were related to sunset
dates for the Wind brindle Scholarship Tax Credit, the Film
Tax Credit, the Veteran Employment Tax Credit, the Salmon
Utilization Tax Credit, the Education Tax Credit, the
Salmon Production Development Tax Credit, and the CDQ Tax
Credit. The transition language remained the same. The
contingency language was in Section 18. He announced that
Sections 19, 19, 20, 21, and 22 were the dates in which the
previous sections would go into effect which were 2016,
2018, and 2020.
8:42:45 AM
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, the proposed committee substitute was adopted.
Representative Thompson spoke to the bill. The tax credits
had been put in many years earlier with good intentions,
but the legislature needed to take a hard look at the
credits to determine whether the original intent was still
effective.
Representative Wilson understood that the part that had
been removed related to unorganized areas and grants. She
queried the reason behind that removal. Co-Chair Stoltze
replied that the section drew attention away from the
larger focus of the tax credit issues.
Representative Wilson wanted to make sure the bill didn't
do something she did not know.
Representative Thompson relayed that the process was
currently well established in the department. He asked
about the CDQ tax credit. Mr. Anderson replied that the
credit would be extended.
Representative Munoz spoke to the two year cycles in the
bill. She wondered if it was a one-time occurrence, once
the cycles were achieved. Mr. Anderson replied that there
was the actual true sunset date, the extension, and the
review cycle set up through Department of Revenue (DOR) and
the Legislative Finance Division (LFD). The review cycle
schedule would be every two years and the sunsets would be
the specific dates for the tax credits in Title 43. Future
legislatures would have to offer legislation to extend the
credits. He stated that the tax credits that were specified
in the legislation were easily definable with plenty of
information.
Representative Munoz asked if the items came up for review
under the two year cycle after their initial review. Mr.
Anderson replied that those items would be reviewed by DOR
and LFD.
8:48:02 AM
Representative Munoz queried the repeal date of the
education tax credit. Mr. Anderson replied that the credit
would be reviewed in 2018.
Vice-Chair Neuman pointed to Section 6 and asked if it
dealt with reappropriations. Mr. Anderson answered that the
section was related to the unexpended balances for the
department. It referred to the Capital Appropriations
Status Report, which allowed for the ability of the
legislature to reappropriate funds.
Co-Chair Stoltze noted that the section allowed the
legislature to reappropriate funds or to extend the
credits. Mr. Anderson agreed.
Vice-Chair Neuman surmised that Section 6 related to
capital appropriations to the departments. Mr. Anderson
agreed.
Vice-Chair Neuman asked if the bill contained a definition
for "substantial." Mr. Anderson responded that the
municipalities had criteria for what was considered
substantial.
Vice-Chair Neuman suspected it was the case. He stated that
he would work with the sponsor on the item.
Representative Gara asked about the film tax credits in
Section 13. He wondered when the credit would repeal. Mr.
Anderson replied that the sunset was in 2016.
Representative Costello discussed the bill's 6 fiscal
notes.
Co-Chair Stoltze remarked that the fiscal notes would be
updated to reflect the CS.
Co-Chair Austerman believed the bill was excellent. He
spoke to his initial reservations, but once it was
understood and the bill was broken into a timely basis, he
was confident in the legislation.
Representative Thompson MOVED to REPORT CSHB 306(FIN) out
of committee with individual recommendations and the
accompanying fiscal notes.
Representative Gara OBJECTED for discussion.
Representative Munoz asked a question about the DOR fiscal
note.
8:56:08 AM
Mr. George relayed that the office had been in contact with
the governor's office requesting updated fiscal notes.
Representative Holmes supported the bill. She was curious
about 10 positions in the fiscal notes.
MR. FONDER, DIRECTOR, TAX DIVISION, DEPARTMENT OF REVENUE
(Via Teleconference), anticipated that the number of
positions would decrease substantially in FY 15. He
stressed expenditures would not be occurring in FY 15.
Representative Munoz wondered if there would be an increase
in the number of positions beyond the years outlined in the
fiscal notes. Mr. Fonder replied that it would probably be
similar to the out years in the fiscal note that was a
total of 3 positions.
Co-Chair Stoltze stressed that the department would not get
more money than it needed.
9:00:13 AM
Representative Gara was working to determine the current
sunset date for the film credit program. He was
uncomfortable speeding up the sunset date of the film tax
credit.
Co-Chair Austerman spoke to his backing of the commercial
fishing industry and the need to treat it equally to other
industries in the state. He only supported items that
worked. He believed that credits would justify themselves
when they came up for review in the future. He believed the
credits should all be treated equally. He stated it was
necessary to review the credits. He did not believe it was
right to pick out specific credits.
Representative Costello was uncomfortable reporting the
bill out of committee without the updated fiscal notes.
Co-Chair Stoltze would hold the bill.
HB 306 was HEARD and HELD in committee for further
consideration.
9:04:33 AM
AT EASE
9:08:45 AM
RECONVENED
Co-Chair Stoltze discussed that HB 306 would be heard later
with the updated fiscal notes.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 306 - Version H - 3.20.2014.pdf |
HFIN 3/21/2014 8:30:00 AM |
HB 306 |
| HB 121 2013 CFAB Annual Report.pdf |
HFIN 3/21/2014 8:30:00 AM |
HB 121 |