03/26/2010 08:00 AM House EDUCATION

        HB 367-TAX CREDITS FOR EDUCATIONAL CONTRIBUTIONS                                                                    
                                                                                                                              
                                                                                                                                
CHAIR SEATON announced that the  first order of business would be                                                               
HOUSE BILL  NO. 367,  "An Act  relating to  tax credits  for cash                                                               
contributions  by   taxpayers  that  are  accepted   for  certain                                                               
educational  purposes  and  facilities;   and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
8:10:56 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:10 a.m. to 8:12 a.m.                                                                       
                                                                                                                                
8:11:53 AM                                                                                                                    
                                                                                                                                
KENDRA  KLOSTER, Staff,  to  Representative  Cathy Munoz,  Alaska                                                               
State Legislature,  explained the language changes  in Version P,                                                               
which  incorporates   the  committee  amendments  of   the  first                                                               
hearing; alteration  of the monetary cap;  the affiliated groups;                                                               
changes  requested by  Department  of Revenue  (DOR);  and a  new                                                               
fiscal note.                                                                                                                    
                                                                                                                                
8:14:01 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  moved to  adopt  CSHB  367, 26-LS1538\P,  Bullock,                                                               
3/22/10.                                                                                                                        
                                                                                                                                
REPRESENTATIVE MUNOZ removed her previously lodged objection.                                                                   
                                                                                                                                
8:14:25 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON asked whether the  construction of the bill presents                                                               
any administrative difficulties for DOR.                                                                                        
                                                                                                                                
8:15:00 AM                                                                                                                    
                                                                                                                                
ROBYNN WILSON, Income Audit Manager, Tax Division, said no.                                                                     
                                                                                                                                
8:15:11 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P. WILSON asked whether  the tax break will affect                                                               
the general fund.                                                                                                               
                                                                                                                                
8:15:33 AM                                                                                                                    
                                                                                                                                
JOHANNA  BALES, Deputy  Director, Tax  Division, referred  to the                                                               
fiscal note analysis  and said that the  current participation is                                                               
not high.   Further,  she opined  that it  would be  difficult to                                                               
speculate on  what the  impact would  be if  the 16  eligible tax                                                               
payers all  took advantage  of the program,  which she  would not                                                               
anticipate occurring.                                                                                                           
                                                                                                                                
8:17:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON  inquired whether the garnered  funds would                                                               
be provided to educational institutions.                                                                                        
                                                                                                                                
CHAIR  SEATON  pointed out  that  the  University of  Alaska  has                                                               
submitted information that is applicable.                                                                                       
                                                                                                                                
8:18:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  said it is  anticipated that  the donations                                                               
will assist funding of the infrastructure at the university.                                                                    
                                                                                                                                
CHAIR  SEATON stated  his expectation  that  facilities would  be                                                               
expanded via  this incentive, and  lead to further  employment of                                                               
Alaskans.  He then directed  attention to the correspondence from                                                               
Noah  Hanson,   dated  3/25/10,  page  2,   which  indicates  the                                                               
donations levels  to the university.   He noted that there  was a                                                               
jump  in 2008  from the  petroleum organizations,  and speculated                                                               
that as long as oil prices remain  high, this bill will be a good                                                               
incentive for continued high level contributions.                                                                               
                                                                                                                                
8:21:12 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  EDGMON moved  to  report  CSHB 367,  26-LS1538\P,                                                               
Bullock,    3/22/10,   out    of   committee    with   individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no  objection,  CSHB  367(EDC),   was  reported  from  the  House                                                               
Education Standing Committee.                                                                                                   
                                                                                                                                
8:21:41 AM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 8:21 a.m. to 8:24 a.m.