HB 97-REPEAL ALASKA FIRE STANDARDS COUNCIL TAX CREDIT  4:08:44 PM CHAIR MEYER called the committee back to order and announced the consideration of House Bill 97 (HB 97). 4:09:19 PM FORREST WOLFE, Staff, Representative Thompson, Alaska State Legislature, Juneau, Alaska, announced his availability to answer questions regarding HB 97. 4:09:26 PM REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, Juneau, Alaska, sponsor of HB 97, provided an overview as follows: House Bill 97 would repeal the Alaska Fire Standards Council tax credit program that was established back in 2000, it came about because we've been reviewing the indirect expenditure reports. The tax credit was intended to provide a funding mechanism for the Alaska Fire Standards Council via donations from the insurance companies and these insurance companies would then be able to take a tax credit against their Alaska tax; but in the mean time before this bill passed, the Alaska Fire Standards Council found their own funding mechanism through a certification fee schedule from all of their members. The 2015 Legislative Finance Indirect Expenditure Report recommended that the tax credit be reviewed to determine if it was still applicable and potentially terminated if the credit is deemed ineffective. While the original legislation was no doubt well intended, it's proven to not only be ineffective but unnecessary as well and therefore it should be repealed and removed from statutes. In the 18 years that it has been in statutes there have been no donations made, no tax credits issued under this program. So, House Bill 97 would take the tax credit established under AS 21.96.075 out of the statute books and not have it be printed every year. CHAIR MEYER asked if he said the Alaska Fire Standards Council's tax credit has never been used. REPRESENTATIVE THOMPSON answered that since 2000, no one has ever donated or applied for a tax credit under the statute. He reiterated that the Alaska Fire Standards Council found their own funding mechanism through member fees. 4:11:40 PM CHAIR MEYER asked when the tax credit expires. REPRESENTATIVE THOMPSON answered that with HB 97 the tax credit would expire January 1, 2019. CHAIR MEYER asked when the tax credit would expire without HB 97. REPRESENTATIVE THOMPSON answered that there is no expiration date or sunset. SENATOR WILSON asked why the sunset date is effective January 1, 2019 rather than upon passage. REPRESENTATIVE THOMPSON explained that the effective date was in the bill as a pre-file in 2017 with the thinking that the bill would pass in 2017. He specified that the intent was to ensure there were no problems with the bill until the expiration on January 1, 2019. SENATOR WILSON admitted that his fear is someone will rush to file and take advantage of the tax credit prior to its expiration date. REPRESENTATIVE THOMPSON replied that he assumed because the Alaska Fire Standards Council has its own funding and the tax credit has never been used that it was time to get rid of the credit. SENATOR WILSON thanked Representative Thompson and opined that the Legislature should go through the statutes more often to find out what is being used and what is not being used. CHAIR MEYER asked if Representative Thompson could find more statutes that addressed expenditures. REPRESENTATIVE THOMPSON replied that House Bill 97 also addresses indirect expenditures. CHAIR MEYER asked if there was any interest in the tax credit program prior to expiration. 4:13:47 PM GORDON DESUTNER, Fire Training Administrator, Department of Public Safety, Anchorage, Alaska, replied that he has not received any letters of interest. He noted that the Alaska Fire Standards Council did opt to send letters out to all the insurance companies that were operating in the state in 2016 and no meaningful responses were received. SENATOR GIESSEL commended Representative Thompson for going through the indirect expenditure documents that all legislators receive. She said she appreciated the representative finding obsolete tax credits and for bringing the bill forward. 4:14:50 PM CHAIR MEYER opened and closed public testimony. 4:15:24 PM SENATOR GIESSEL moved to report the committee substitute for House Bill 97, [CSHB 97(STA)], version 30-LS0180\D from committee with individual recommendations and attached zero fiscal note. 4:15:42 PM CHAIR MEYER announced there being no objection, the motion carried. 4:15:49 PM At ease.