Legislature(2011 - 2012)SENATE FINANCE 532
02/06/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB136 | |
| SB158 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 136 | TELECONFERENCED | |
| + | SB 158 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 6, 2012
9:05 a.m.
9:05:03 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:05 a.m.
MEMBERS PRESENT
Senator Bert Stedman, Co-Chair
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
ALSO PRESENT
Senator Bill Wielechowski; Kendra Kloster, Staff, Senator
Bill Wielechowski; Errol Champion, President, South East
Alaska Board of Realtors
PRESENT VIA TELECONFERENCE
Calista Anderson, President, Veterans Helping Veterans,
Anchorage
SUMMARY
SB 136 INCOME TAX CREDIT FOR EMPLOYING A VETERAN
SB 136 was HEARD and HELD in committee for
further consideration.
SB 158 REAL ESTATE SALES LICENSEES
SB 158 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 136
"An Act providing a tax credit for employing an Alaska
veteran that may be taken against a liability for the
tax on corporation income; and providing for an
effective date."
9:05:49 AM
Co-Chair Stedman discussed housekeeping, and the intent of
the committee.
SENATOR BILL WIELECHOWSKI, explained SB 136. He referred to
the Sponsor Statement (copy on file). He stated that some
of Alaska's veterans were some of the most highly trained,
highly educated, and highly skilled workers in Alaska. When
businesses hire veterans, they are getting proven leaders
with solid work ethics who can solve problems efficiently
while staying focused and contributing to an improved
bottom line. He remarked that despite many employers
acknowledging the advantages of hiring someone who had
served in Armed Forces, veterans continued to see higher
than average unemployment rates nationwide. In June 2011,
according to the U. S. Bureau of Labor Statistics, one
million U. S. veterans were unemployed and the jobless rate
for post-9/11 veterans was 13.3 percent. The picture was
even worse for young, male veterans between the ages of 18
and 24, who saw an unemployment rate of 21.9 percent.
Senate Bill 136 would assist Alaska's veterans to get
civilian jobs when they leave the service and provide
direct benefits to Alaska businesses. The legislation would
provide a $2,000 credit for each veteran hired who would
work at least 1,560 hours within a 12-month period, or
approximately 30 hours a week. The tax credit could be
applied in the first year after 12 months of employment and
any credits not used could be used in a later tax year. He
stressed that struggling Alaskan businesses could get the
tax help they need, while Alaska's veterans had an
increased chance of finding employment.
Senator Wielechowski stated that the number one issue
veterans faced was integrating back into the job force once
they returned from combat.
9:07:55 AM
Co-Chair Stedman requested an explanation of credit
availability, and wondered who qualified for the credit.
Senator Wielechowski stated that the bill currently
included all veterans, but would be willing to narrow the
availability. He stated that there were some different
veteran tax credits from different parts of the country.
There was currently a federal tax credit of $2,400 for
veterans who had been unemployed for four weeks or more. He
stated that other states had tax credits for unemployed
veterans who had a period of unemployment for a certain
amount of time, or for veterans who had returned from the
Gulf War or later.
Co-Chair Stedman wondered if the tax credit would enable a
company to "rob" an existing veteran employee from their
current employer. Senator Wielechowski replied that the
current legislation stated that if you hire a new veteran,
and they are employed for 1,560 hours for 12 consecutive
months, then you would be eligible for the tax credit. He
noted that there was a good incentive to tailor the bill to
newly separated veterans.
In response to a question from Co-Chair Stedman, Senator
Wielechowski stated that the current federal tax credit was
appropriate. He also pointed out that the focus should be
on veterans that had been unemployed for more than four
weeks. He furthered that there was a real unemployment
problem for veterans who were returning from the wars in
Iraq and Afghanistan.
Senator Thomas pointed out the possible issues regarding
seasonal employment, and wondered if that was considered in
the drafting of the bill. Senator Wielechowski replied that
seasonal employment was not considered in the first draft,
but suggested a credit of $100 for seasonal employment.
9:12:46 AM
Senator Olson wondered how many other states offered
similar tax credits and how those credits compared to SB
136. KENDRA KLOSTER, STAFF, SENATOR BILL WIELECHOWSKI,
referred to the Legislative Research Report on State and
Federal Tax Credits for Business that Hire Veterans (copy
on file). She remarked that Vermont, California, Illinois,
and West Virginia had similar tax credits. She stressed
that many states had different sideboards, and noted that
California had a requirement that the veteran have left
military service within 48 months.
Senator Olson wondered how successful the programs were in
other states. Ms. Kloster agreed to provide that
information.
Co-Chair Stedman noted the one previously published zero
fiscal note from the Department of Revenue, Taxation and
Treasury Division. He felt that the fiscal note should be
indeterminate, rather than zero.
CALISTA ANDERSON, PRESIDENT, VETERANS HELPING VETERANS,
ANCHORAGE (via teleconference), testified in support of SB
136. She felt that the bill would benefit veterans, and get
them to work. She pointed out that many veterans were out
of work, and currently struggled to get and maintain
employment.
9:16:39 AM
AT EASE
9:17:05 AM
RECONVENED
Ms. Anderson continued with her testimony. She stated that
many veterans face difficult times. She referred to a
letter of support (copy on file).
Co-Chair Stedman requested a brief synopsis of how the bill
would treat the wounded veterans. Senator Wielechowski
replied that SB 136 would provide a $2,000 for any veteran-
wounded or not wounded.
SB 136 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 158
"An Act relating to the Real Estate Commission; and
providing for an effective date."
9:20:59 AM
Senator Egan explained SB 158, and referred to the Sponsor
Statement (copy on file). He stated that SB 158 would allow
the real estate commission to appoint an overseer to
temporarily manage a brokerage in the event a broker was
unable to for certain reasons, including a traumatic or
medical event, having a license suspended, or upon an
investigative finding that substantial evidence points to
misappropriation of funds. This assured that trust accounts
and other sensitive business affairs were handled
responsibly. The bill would also clarify that a licensed
assistant can only work for the brokerage in which they are
licensed. Ambiguity in current law has been interpreted to
allow an assistant licensed in a brokerage to work in any
other brokerage or in multiple brokerages. The intent of
current law was to limit an assistant to one brokerage. He
furthered that SB 158 would also allow a licensee to donate
a portion of a commission to charity. It would also allow a
licensee to advertise that some of their commission would
be donated to a charity.
Co-Chair Stedman called Mr. Champion to the table. ERROL
CHAMPION, PRESIDENT, SOUTHEAST ALASKA BOARD OF REALTORS,
spoke in support of SB 158, and felt it would clarify
current statute.
Co-Chair Stedman noted recent issues regarding local
brokerage firms and trust funds, and wondered if that
influenced the legislation. Mr. Champion replied that a
broker was found to have misused a trust fund, and there
was no one that the Real Estate Commission could designate
to monitor the fund. The person that was charged had to
execute the close down of the fund.
Co-Chair Stedman wondered why charitable contributions were
included in SB 158. Mr. Champion replied that the bill
would change the statute to allow the designation, and
publicly declare the intention of the licensee.
Senator Egan noted the zero fiscal note, and felt the zero
fiscal note was merely housekeeping.
Co-Chair Stedman mentioned the one previously published
zero fiscal note from the Department of Commerce, Community
and Economic Development.
SB 158 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the following day's agenda.
ADJOURNMENT
9:27:29 AM
The meeting was adjourned at 9:27 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Leg Research Vet Tax Credit Updated Report 12 28 11.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 memo of changes.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 AK Business Monthly Hiring Military Veterans is Good Business.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 Sectional Analysis.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 Sponsor Statement.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 Support Letter Dixie Banner.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 Support Letter Vets Helping Vets.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB136 Vietnam Veterans of America Support Letter.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 136 |
| SB 158 lttr supporting Bates 012412.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 158 |
| SB 158 Lttr supporting, Somers.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 158 |
| SB 158 Sponsor Statement.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 158 |
| SB158 lttr supporting AK Assoc of Realtors.pdf |
SFIN 2/6/2012 9:00:00 AM |
SB 158 |