Legislature(1995 - 1996)
04/27/1995 04:10 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SSTA - 4/27/95
Number 368
SB 118 TAX CREDIT: GIFTS TO PUBLIC BROADCASTING
SENATOR SHARP brings up SB 118 as the next order of business before
the Senate State Affairs Committee and calls the first witness.
Number 373
SENATOR TORGERSON, prime sponsor of SB 118, informs the committee
that SB 118 is an attempt to plug some of the gaps in funding for
public broadcasting that were created by budget cuts. The original
intent of the bill was to allow up to a $100,000 tax credit. It is
his intent to create a true public-private partnership in the face
of declining revenue. Senator Torgerson understands there might be
a motion to adopt the house version of this legislation, which is
quite different from SB 118.
Number 390
SENATOR LEMAN states he has not seen a proposed committee
substitute.
CHAIRMAN SHARP does not have one either.
SENATOR LEMAN comments that SB 118 seems to be reasonably
consistent with existing tax credits. But if it [the house
version?] is substantially different, he would want to give it
careful scrutiny.
SENATOR TORGERSON states it [the house version?] will increase the
amount available for a tax credit to $350,000, and includes other
categories. It also has a sunset at five years.
SENATOR LEMAN asks if it [the house version?] keeps the credit at
50% of the amount given.
SENATOR TORGERSON replies he would have to defer to his staff on
that question.
Number 427
BOB BARTHOLOMEW, Deputy Director of the Income & Excise Audit
Division, Department of Revenue, informs the committee that there
is currently in statute a provision for taking a tax credit for
contributions to postsecondary educational institutions. This bill
would expand that credit to cover public broadcasting
contributions. The estimated fiscal impact of SB 118 is about
$845,000. This figure is included in the department's fiscal note.
CHAIRMAN SHARP asks what amount was taken for education credits
last year.
MR. BARTHOLOMEW responds that $944,000 in education tax credits
were taken last year.
SENATOR RANDY PHILLIPS asks Ms. Kaplan to convey her concerns to
the committee.
Number 460
DIANE KAPLAN, KOAHNIC Broadcasting Corporation, states the purpose
of SB 118 is to encourage increased private contributions from
corporations in Alaska. The goal is to begin an endowment fund to
begin to replace some of the state funding that has been lost over
the last ten years, and to preserve essential services throughout
the state. The house version of the bill that was adopted
originally had a $500,000 cap, with no sunset date. The committee
substitute that was reported from the House Finance Committee
places a $350,000 maximum on tax credits, with a five-year sunset
provision. It also includes the fish-landing tax as one of the
eligible taxes. We consider this to be the most important piece of
legislation for public broadcasting this year: in addition to
encouraging new private contributions, it also increases the
ability of corporations to donate to higher education. Ms. Kaplan
hopes that the Senate State Affairs Committee will adopt a senate
committee substitute that matches the house version of the bill.
She thinks it is important that public broadcasting and higher
education not be put in competition for the same level of
contributions.
Number 483
SENATOR LEMAN asks, why not allow for donations to primary and
secondary education, in addition to donations for postsecondary
education?
Number 499
SENATOR RANDY PHILLIPS comments he would like to keep the bill
moving, and asks if a committee substitute can be presented when
the bill is in the Finance Committee.
CHAIRMAN SHARP adds that he would be more comfortable moving the
original bill, than something he hasn't seen.
Number 510
SENATOR LEMAN states he is not on the Finance Committee, and he
thinks the committee should consider expanding SB 118 to include
contributions towards primary and secondary education.
CHAIRMAN SHARP notes that any diversion from the general fund is a
dilution of funds available for appropriation.
Number 545
SENATOR LEMAN states he intends to offer an amendment to include K-
12 education in the state.
SENATOR RANDY PHILLIPS asks if that would be constitutional,
especially if the money was contributed to a private, religious
school.
SENATOR LEMAN responds that it's not unconstitutional to make tax-
deductible contributions to a church.
SENATOR TORGERSON adds that Senator Leman's suggestion would also
require a title change.
Number 563
CHAIRMAN SHARP states he would just as soon hold the bill over to
work on those suggestions, if it is the desire of the committee to
make such substantial changes to the bill.
Number 567
MS. KAPLAN expresses concern that if too many items, or even any
other beneficiaries are added to SB 118, it would so dilute the
amount of money that would go to any one entity, that it would not
make a meaningful difference. She also thinks adding on other
items would make it harder to pass the bill.
Number 580
SENATOR LEMAN expresses disagreement with Ms. Kaplan's previous
statement.
CHAIRMAN SHARP states the committee will hear SB 118 again, as soon
as the committee substitute for the bill is prepared.
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