Legislature(2011 - 2012)BARNES 124
04/13/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB25 | |
| SB136 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 25 | TELECONFERENCED | |
| + | SB 136 | TELECONFERENCED | |
| + | TELECONFERENCED |
SB 136-VETERANS DRIVERS LICENSE, TAX CREDIT
4:51:24 PM
CHAIR OLSON announced that the final order of business would be
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."
4:51:40 PM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, introduced
himself. He thanked members for taking time to hear SB 136. He
introduced his staff.
4:52:10 PM
KENDRA KLOSTER, Staff, Senator Bill Wielechowski, Alaska State
Legislature, on behalf of the sponsor, Senator Bill
Wielechowski, stated that as of June 2011, one million veterans
were unemployed and the jobless rate for post 9/11 veterans was
at 13.3 percent. She reported that young male veterans ages 18-
24 have an unemployment rate of 21.9 percent. She pointed out
that some Google searches are showing unemployment figures
closer to 30 percent unemployment for veterans. She offered to
confirm the figures with the U.S. Department of Defense.
4:53:30 PM
MS. KLOSTER related that the sponsor held a town hall meeting
and veterans expressed concern about finding jobs. This bill
would create $2,000 corporate income tax credit for a business
who hires a veteran and a $3,000 credit for hiring a disabled
veteran. The veteran must be employed for 12 months, or 1,560
hours, which is about 30-hours a week. This bill would also set
up a $1,000 tax credit for seasonal employment, which was a
provision requested by the hotel industry. She reported a
number of organizations support this bill, including Vets
Helping Vets, Vietnam Veterans of America, and numerous
businesses.
4:54:32 PM
REPRESENTATIVE JOHNSON asked whether this is per employee.
MS. KLOSTER answered yes, the tax credit is per veteran hired.
She explained that for seasonal employment it is limited to the
first season.
4:55:07 PM
REPRESENTATIVE JOHNSON asked whether the credit for fulltime is
per year or one time.
MS. KLOSTER agreed it is a one-time tax credit.
4:55:41 PM
REPRESENTATIVE SADDLER referred to page 2, line 29, to the
requirement that the veteran be honorably discharged. He asked
whether the sponsor has considered extending this to general
discharge.
MS. KLOSTER answered that the sponsor is specific that the
discharge should be an honorable discharge. She indicated the
sponsor has worked with other senators in the body who have
served in the military before deciding on the honorable
discharge.
REPRESENTATIVE SADDLER related some state benefits are extended
to those honorably discharged and those who received general
discharge, as well. He characterized this bill as having a high
threshold.
4:56:32 PM
CHAIR OLSON inquired as to whether there is a mechanism that
prevents stacking of veterans, such as hiring a veteran then
firing him/her and hiring another veteran.
MS. KLOSTER pointed out the bill requires hiring the veteran for
at least 12 months prior to tax credit, per veteran, and the
veteran must work a minimum of 1,560 hours.
4:57:15 PM
REPRESENTATIVE SADDLER commented that hiring veterans can be
good business sense. He strongly suspected that the business
will not only obtain the credit, but will double their money due
to productivity. He offered his belief that these men and women
work hard and have a good work ethic.
4:57:47 PM
ALBERT HOWARD, Mayor, City of Angoon, stated that he is a
veteran and approximately 20 percent of the 480 people in Angoon
are veterans. He expressed appreciation for the work the men
and women have given. He said that in many ways the state says
welcome home and SB 136 does just that since it ensures that
community, state, and nation shows appreciation for the military
personnel who have protected our country. Most veterans do not
want handouts, but giving them a better than equal opportunity
will allow them to continue the American dream that men and
women joining the armed forces believe will be there when they
come home. He offered his belief that a person joining the
military gives up some rights while serving in the armed forces.
He offered his belief that SB 136 is positive on their behalf.
He offered his support for SB 136. He encouraged members to
keep in mind that our men and women are in harm's way and trust
that the legislature is doing what is right for all. He
suggested that supporting SB 136 will protect and maintain the
same or better quality of life for veterans that have given
time, sweat, blood, and at times, tears with their "get it done
attitude" so everyone can continue the day-to-day business.
CHAIR OLSON remarked that a third of the committee qualify as
veterans.
5:02:02 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on SB 136.
5:02:28 PM
REPRESENTATIVE JOHNSON asked whether anything in the bill limits
a corporation in Alaska from employing a veteran outside the
state.
MS. KLOSTER referred to page 1, line 6, which specifies veterans
must be hired and working in the state.
REPRESENTATIVE JOHNSON pointed out that being hired in Alaska
does not necessarily mean they are working in Alaska.
5:03:00 PM
CHAIR OLSON suggested they might be hired in Alaska, but are
working in North Dakota.
MS. KLOSTER explained she held a conversation with the bill
drafter to ensure the language meant the veteran would be hired
and working in the state. She offered to confirm this with the
bill drafter and get back to the committee.
5:03:58 PM
REPRESENTATIVE JOHNSON related his understanding that a person
would be hired in Alaska, but he was unsure that the veteran
would need to work in Alaska. He further asked whether the
business would be eligible for credit if the business hired a
person who is not an Alaska resident who comes to Alaska and is
hired.
MS. KLOSTER responded that the distinction does not require the
veteran to be an Alaska veteran due to some constitutional
issues. Some of the language was revised to reflect "in the
state" with the intention that the veteran would be in Alaska
and would be working in Alaska; however, constitutional issues
arose with language that specified the person had to be an
Alaska veteran or to use that type of terminology.
5:05:11 PM
REPRESENTATIVE JOHNSON asserted that he would love to go to
court defending Alaskans hiring Alaskans to fight for the rights
of Alaskans. He welcomed the challenge.
MS. KLOSTER, in response to Chair Olson, stated that she did not
have any legal documents, but offered to address it. She
remarked that Senator Wielechowski is very dedicated and his
intention is also to ensure Alaska veterans are hired. He is
committed to Alaskans getting the jobs.
5:06:44 PM
REPRESENTATIVE SADDLER related his understanding the Alaska
Office of Veterans Affairs wants to be sure veterans in Alaska
are signed up to obtain the U.S. Department of Veterans Affairs
(VA) benefits. He recalled that veterans have been offered the
opportunity to register. He asked whether the sponsor would be
amenable to an amendment to require employers who receive this
credit must have their employees who are veterans apply for VA
benefits. He suggested such an amendment would help the
employer by possibly reducing medical costs and help the
veterans maintain closer contact with the VA to obtain
information.
MS. KLOSTER offered to discuss this with Senator Wielechowski.
5:07:54 PM
MS. KLOSTER reported that Mr. Bullock, the bill drafter,
indicates that the employer receives the credit when the
employer hires a military veteran in Alaska.
REPRESENTATIVE HOLMES referred to page 1, lines 5-6, which
reads, "a taxpayer that hires a veteran and employs the veteran
in the state..."; which she interpreted to mean the veteran must
be hired in the state and working in the state. She interpreted
that to mean the bill drafter wanted it to be as clear as
possible that the military veteran must be working in Alaska.
5:09:12 PM
REPRESENTATIVE THOMPSON referred to page 1, line 10, which
requires the veteran be unemployed in Alaska for more than four
weeks. He suggested that if the veteran has been unemployed in
Alaska for more than four weeks implies residency since Alaska
has a residency requirement of 30 days.
REPRESENTATIVE MILLER was unsure whether the language fixes the
problem.
REPRESENTATIVE SADDLER suggested one solution to address
residency. He referred to page 2, line 5 to insert, "for a
veteran employed in Alaska for 1,560 hours ... and on line 9, to
add, "for a veteran employed in Alaska for 600 hours ... which
would ensure the veteran would be hired and working in Alaska.
5:10:52 PM
MS. KLOSTER concluded by sharing a soldier's statement that
conveyed a conversation he had held with a governor. She read,
"He didn't say he was the most worried about facing the enemy in
the night. He looked at me in the eyes and said, 'Governor, I'm
worried about whether there will be a job for me when I get
home.'" She said she thought that was really telling and the
reason the legislature is doing a variety of things to support
Alaska's veterans when they are coming home. She appreciated
the committee hearing the bill today.
[SB 136 was held over.]