Legislature(2011 - 2012)BELTZ 105 (TSBldg)
03/15/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB223 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 223 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
March 15, 2012
3:39 p.m.
MEMBERS PRESENT
Senator Donald Olson, Chair
Senator Thomas Wagoner
Senator Linda Menard
MEMBERS ABSENT
Senator Albert Kookesh
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 223
"An Act relating to a credit against the net income tax for a
contribution made by a taxpayer to a nonprofit organization that
provides an emergency shelter for the homeless or a facility for
alcohol or drug detoxification."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 223
SHORT TITLE: TAX CRED: CONTR. TO HOMELESS SHELT/DETOX
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS
03/02/12 (S) READ THE FIRST TIME - REFERRALS
03/02/12 (S) CRA, FIN
03/15/12 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
DAVID SCOTT, Staff
Senator Donald Olson and Aide
Senate Community and Regional Affairs Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 223 on behalf of the CRA
Committee.
JOHANNA BALES, Acting Director
Tax Division
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 223.
DENISE AMAROK-OLIVER, Employee
Nome Emergency Shelter Team
Nome, Alaska
POSITION STATEMENT: Testified in support of SB 223.
SUE STEINACHER, Director
Nome Emergency Shelter Team
Nome, Alaska
POSITION STATEMENT: Testified in support of SB 223.
LORETTA BULLARD, President
Kawerak, Inc.
Nome, Alaska,
POSITION STATEMENT: Testified in support of SB 223.
BONNIE HAHN, Manager
Nome Emergency Shelter Team
Nome, Alaska
POSITION STATEMENT: Testified in support of SB 223.
ACTION NARRATIVE
3:39:38 PM
CHAIR DONALD OLSON called the Senate Community and Regional
Affairs Standing Committee meeting to order at 3:39 p.m. Present
at the call to order were Senators Wagoner, Menard and Chair
Olson.
SB 223-TAX CRED: CONTR. TO HOMELESS SHELT/DETOX
CHAIR OLSON announced the consideration of SB 223, which related
to a tax credit for homeless shelters and detoxification
facilities.
3:39:53 PM
DAVID SCOTT, Staff for Senator Olson, Alaska State Legislature,
and Aide to the Senate Community and Regional Affairs Standing
Committee, said that SB 223 would allow a tax credit to
businesses that donate up to $200,000 per year to an Alaskan
nonprofit corporation that provides emergency shelter to the
homeless or a drug and alcohol detoxification facility. The tax
credit is non-refundable, non-transferable, and cannot be
carried forward to a subsequent tax year. The amount claimed as
a credit cannot be used as a deduction in the calculation of the
business's taxable income.
MR. SCOTT read subsection (c) on page 2, and commented that it
seemed to be a good idea.
(c) If a nonprofit organization that receives a
contribution that is the basis of a 4 credit under
this section requests an appropriation from the
legislature, the request 5 shall document the
contribution received and how the contribution was
used.
He said the bill needed additional changes and he would contact
the members' to discuss the ideas.
3:43:40 PM
SENATOR MENARD commented on the extreme need for the bill and
that the Mat-Su Borough had a growing percentage of homeless.
SENATOR WAGONER asked if the state had a list of Alaska
nonprofits that provide these services. His concern was that the
bill would generate additional nonprofits and add competition.
MR. SCOTT said he did not know if there was an inventory, but
the intent was not to grow the number of nonprofits. The intent
was to help the existing nonprofits that provide these services.
CHAIR OLSON asked Ms. Bales if she could answer Senator
Wagoner's question.
3:46:51 PM
JOHANNA BALES, Acting Director, Tax Division, Department of
Revenue, said DOR did not have ready data on the number of those
types of nonprofits, but could get the information from an IRS
resource that identifies all 501 c(3) corporations in Alaska.
She acknowledged that the bill could possibly entice someone to
go through the rigorous process to obtain a 501 c(3)
designation.
3:48:40 PM
SENATOR MENARD commented that the Foraker Group did a good job
of identifying and working with nonprofits.
CHAIR OLSON asked if the tax credit would affect federal taxes.
MR. SCOTT answered that it would only affect Alaska corporate
income taxes.
CHAIR OLSON asked if any other states offer an incentive to
donate to emergency shelters.
MR. SCOTT offered to follow up with an answer.
CHAIR OLSON asked if the bill included emergency shelters for
victims of domestic violence.
MR. SCOTT answered that was correct.
3:51:04 PM
DENISE AMAROK-OLIVER, Employee, Nome Emergency Shelter Team
(NEST), discussed the work that NEST does and relayed that many
of the people that go to the emergency shelter struggle with
alcoholism. She said any financial support would benefit the
Bering Straits region, in particular. Since the NEST shelter
opened, emergency room visits have decreased and fewer people
are going to jail. This saves the state money.
3:56:19 PM
SUE STEINACHER, Director, Nome Emergency Shelter Team (NEST),
explained that the emergency shelter opened in the spring of
2009 as a grass-roots response to the one or two alcohol-
related, cold weather exposure deaths that occurred in Nome
every winter. Volunteers initially did all the work in space
donated by a church. The shelter was open and staffed by two
volunteers every night that the temperature dropped to -10
degrees. With no funding whatsoever, the shelter was open about
80 nights and served about 70 people through the winter of 2010,
and nobody died.
That volunteer effort was phenomenal, but unsustainable. A grant
made it possible to hire paid monitors during the workweek.
Volunteers worked on weekends and the shelter incurred no debt.
A second grant plus significant local donations have allowed
NEST to stay open every night this winter. During this time, 123
different individuals have taken advantage of the emergency
shelter. She estimated that 98-99 percent were seriously
inebriated on arrival. A core group comes in every night, others
come in from the region and don't have a place to stay, and some
are local but have had too much to drink and are not allowed
back in their home. As of November 15, NEST had filled 1,030
beds in a town of 3,500. She drew statistical parallels between
Nome and Anchorage to emphasize that the community of Nome has a
significant problem of homelessness and chronic inebriation.
MS. STEINACHER said that even though no one has died due to cold
weather, alcohol-related exposure since the shelter opened, the
shelter is a band aide to a larger problem. What the community
needs is a residential or intensive treatment program.
She stated support for SB 223 and stressed that NEST needed
operating expenses. She also stated that the idea of not funding
a nonprofit until it had a track record made it difficult for
small communities. She noted that startup funds were typically
needed to open a shelter, but many grants only pay for direct
services. She discussed the housing crisis in Nome and opined
that it contributed to the growing non-alcohol-related homeless
problem in the community.
4:06:15 PM
LORETTA BULLARD, President, Kawerak, Inc., stated support for SB
223 and explained that Kawerak was a regional nonprofit that
provides services to the Bering Straits region. She said the
NEST shelter provides a much-needed service in Nome, and
emphasized that it was difficult to find continuing funds to
support those services. She opined that the various village
corporations, regional profit corporations, and other for profit
entities would make larger contributions to support these
services if they received a tax credit.
MS. BULLARD said the Nome police department and the hospital
incur significant costs dealing with individuals who are Title
47 holds. Contributions to nonprofits that provide these
services could help this situation. She urged the committee to
pass SB 223.
4:09:15 PM
BONNIE HAHN, Manager, Nome Emergency Shelter Team (NEST), echoed
the previous testimony in support of SB 223. Nome has a growing
problem with chronic inebriation and homelessness and the bill
will help the shelter do its work and perhaps stay open more
than five months per year. The shelter clientele are
appreciative of the help; some have found employment and a few
have saved enough to pay for their own lodging.
CHAIR OLSON asked what the annual operating costs were.
MS. HAHN deferred the question to Ms. Steinacher.
4:13:59 PM
MS. STEINACHER estimated that the operating costs for five
months were approximately $150,000. She stressed that costs in
Nome were much higher than in Anchorage.
CHAIR OLSON closed public testimony.
MS. STEINACHER commented that the committee wasn't hearing from
other communities and organizations because they had yet to
figure out how to organize to address the problem, not because
they didn't have a problem.
CHAIR OLSON asked Mr. Scott if he had any closing comments.
MR. SCOTT said the suggestions would be considered and a
committee substitute would be ready for the members to consider
by next week.
CHAIR OLSON announced he would hold SB 223 in committee.
4:17:14 PM
There being no further business to come before the committee,
Chair Olson adjourned the Senate Community and Regional Affairs
Standing Committee meeting at 4:17 p.m.
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