05/07/2018 02:00 PM Senate FINANCE

CS FOR HOUSE BILL NO. 233(FIN) am                                                                                             
                                                                                                                                
     "An  Act  relating  to   the  insurance  tax  education                                                                    
     credit,  the income  tax education  credit, the  oil or                                                                    
     gas  producer   education  credit,  the   property  tax                                                                    
     education   credit,  the   mining  business   education                                                                    
     credit,  the fisheries  business education  credit, and                                                                    
     the  fisheries resource  landing tax  education credit;                                                                    
     providing  for  an  effective  date  by  repealing  the                                                                    
     effective dates of  secs. 3, 5, 7, 10, 14,  16, 18, 21,                                                                    
     23, 25,  28, 30, 32,  35, 37, 39,  42, 44, 46,  49, 51,                                                                    
     53, and  55, ch. 92,  SLA 2010,  sec. 14, ch.  7, FSSLA                                                                    
     2011, secs.  15, 17, 19,  21, 23,  and 25, ch.  74, SLA                                                                    
     2012, sec. 49, ch. 14, SLA  2014, secs. 37, 40, 43, and                                                                    
     46, ch. 15, SLA 2014, and  secs. 26 and 31, ch. 61, SLA                                                                    
     2014; providing  for an effective date  by amending the                                                                    
     effective  date of  secs. 1,  2,  and 21,  ch. 61,  SLA                                                                    
     2014; and providing for an effective date."                                                                                
                                                                                                                                
3:06:49 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon asked  Vice-Chair Bishop  to review  the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Vice-Chair   Bishop   complied.   He  reported   that   some                                                                    
discussion had  ensued about the  $50,000 fiscal note  for a                                                                    
regulation  package. The  fiscal note  before the  committee                                                                    
reflected  that  the  $50,000  regulation  package  was  not                                                                    
included in  the bill.  The numbers in  the outyears  of the                                                                    
fiscal note  remained the same.  He reiterated there  was no                                                                    
fee for a regulation package associated with the bill.                                                                          
                                                                                                                                
Co-Chair MacKinnon  announced that  the bill  had originally                                                                    
been heard as  the companion bill SB 116 on  March 26, 2018.                                                                    
The current  bill had been heard  on April 26, 2018  where a                                                                    
new  committee  substitute  (CS)  had  been  presented,  the                                                                    
sectional analysis  had been reviewed, and  public testimony                                                                    
had  been  heard  and  closed. The  fiscal  notes  had  been                                                                    
reviewed again. She asked to hear from the bill sponsor.                                                                        
                                                                                                                                
                                                                                                                                
REPRESENTATIVE CHRIS  TUCK, SPONSOR, detailed that  the bill                                                                    
would extend  the education tax credits  that had originated                                                                    
in 1987  to January  1, 2025. He  relayed the  credits would                                                                    
expire on December 31, 2018 without the legislation.                                                                            
                                                                                                                                
Vice-Chair Bishop MOVED  to REPORT SCS CSHB  233(FIN) out of                                                                    
committee with  individual recommendations  and accompanying                                                                    
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
SCS CSHB 233(FIN)  was REPORTED out of committee  with a "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from the Department of Revenue.                                                                                                 
                                                                                                                                
3:08:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:11:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon  relayed that the committee  had reported                                                                    
out SCS CSHB 233(FIN).                                                                                                          
                                                                                                                                
KEN ALPER,  DIRECTOR, TAX  DIVISION, DEPARTMENT  OF REVENUE,                                                                    
heard  the  committee  had  moved the  bill  before  he  had                                                                    
arrived.                                                                                                                        
                                                                                                                                
Co-Chair  MacKinnon  offered  Mr. Alper  an  opportunity  to                                                                    
share  anything related  to  the fiscal  note  for SCS  CSHB
(FIN).                                                                                                                       
                                                                                                                                
Mr. Alper  discussed that the  fiscal note  discussed during                                                                    
the morning  meeting had contemplated revenue  to cover some                                                                    
of the  Department of Revenue's (DOR)  administrative costs.                                                                    
The  department had  removed the  associated costs  from the                                                                    
fiscal note; the costs would  be absorbed by the department.                                                                    
He supported the bill and  believed the education tax credit                                                                    
was an  important program. He  added it was merely  a matter                                                                    
of downsizing the program to Alaska's fiscal reality.                                                                           
                                                                                                                                
Co-Chair  MacKinnon apologized  that  the  meeting time  had                                                                    
moved.  She understood  DOR  was  following the  committee's                                                                    
activities and was working hard to be available.                                                                                
                                                                                                                                
Mr. Alper replied the department  would be presenting to the                                                                    
committee  the following  morning  on a  different piece  of                                                                    
legislation.