02/28/2017 03:00 PM House STATE AFFAIRS

        HB 97-REPEAL AK FIRE STANDS. COUNCIL TAX CREDIT                                                                     
                                                                                                                                
3:06:26 PM                                                                                                                    
                                                                                                                                
CHAIR KREISS-TOMKINS  announced that the first  order of business                                                               
would be HOUSE  BILL NO. 97, "An Act repealing  the insurance tax                                                               
credit  for  gifts to  the  Alaska  fire standards  council;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:06:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STEVE   THOMPSON,  Alaska   State   Legislature,                                                               
presented HB  97, as prime sponsor.   He stated that  the Twenty-                                                               
Eighth Alaska  State Legislature, 2013-2014, passed  the indirect                                                               
expenditures bill [House Bill 306]  to review all tax credits and                                                               
reductions in  funds.   He relayed  that not  all the  tax credit                                                               
programs had sunset  dates, therefore not all were  reviewed.  He                                                               
related that HB  97 is being introduced to  allow the legislature                                                               
the opportunity to review the  effectiveness of the insurance tax                                                               
credit program by  setting a sunset date of January  1, 2022.  He                                                               
said that that  the insurance tax credit  program was established                                                               
to  provide  financing  for the  Alaska  Fire  Standards  Council                                                               
(AFSC).                                                                                                                         
                                                                                                                                
REPRESENTATIVE THOMPSON relayed that  HB 97 would not immediately                                                               
repeal the insurance  tax credits for donations made  to the AFSC                                                               
but  would establish  a  sunset  date of  January  1,  2022.   He                                                               
asserted that the intent of HB  97 is to allow an opportunity for                                                               
the legislature  to review  whether the  credit is  effective and                                                               
necessary.   He added that to  date there have been  no donations                                                               
made to  AFSC; therefore,  there have been  no tax  credits under                                                               
this  program.   He  mentioned  that the  AFSC  tax credits  were                                                               
established in  the Twenty-First Alaska State  Legislature, 1999-                                                               
2000, by House Bill 380  introduced by former Representative Gene                                                               
Therriault.    He stated  that  the  2015 [Indirect]  Expenditure                                                               
Report released  by the Legislative Finance  Division recommended                                                               
that  the tax  credit be  reviewed to  determine if  it is  still                                                               
applicable  and  potentially terminate  it  if  it  is not.    He                                                               
concluded by saying that he would  not be opposed to an amendment                                                               
to HB  97 terminating  the program  in December  2017, as  it has                                                               
never been used.                                                                                                                
                                                                                                                                
3:09:23 PM                                                                                                                    
                                                                                                                                
BRANDON  BREFCZYNSKI,   Staff,  Representative   Steve  Thompson,                                                               
Alaska State  Legislature, on behalf of  Representative Thompson,                                                               
prime sponsor of HB 97, stated  that the intent of House Bill 380                                                               
was to establish  a funding mechanism for the  newly created AFSC                                                               
by  creating  a  tax  credit  for  insurance  companies  to  make                                                               
donations  to  AFSC.   He  reiterated  that  there have  been  no                                                               
donations to  AFSC because of  the legislation.  He  relayed that                                                               
currently AFSC is funded by  unrestricted general funds (UGF) and                                                               
fees collected for firefighter certification.                                                                                   
                                                                                                                                
3:10:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON confirmed  for Representative  Wool that                                                               
the insurance  tax credit  program has  not been  used in  the 17                                                               
years it has been in place.                                                                                                     
                                                                                                                                
3:12:05 PM                                                                                                                    
                                                                                                                                
CHAIR  KREISS-TOMKINS,  in  response  to  Representative  Knopp's                                                               
interest in introducing an  amendment, indicated that Legislative                                                               
Legal  and  Research Services  would  be  contacted to  draft  an                                                               
amendment and that HB 97 would be held over.