03/29/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

        SB 223-TAX CRED: CONTR. TO HOMELESS SHELT/DETOX                                                                     
                                                                                                                                
3:35:58 PM                                                                                                                    
CHAIR OLSON  announced the consideration  of SB 223. He  said the                                                               
bill was  heard twice before, and  it was his intention  to adopt                                                               
an amendment and set the bill aside for further review.                                                                         
                                                                                                                                
DAVID  SCOTT,   Staff,  Senator  Donny  Olson,   noted  that  the                                                               
committee needed to adopt version D committee substitute (CS) .                                                                 
                                                                                                                                
SENATOR  MENARD moved  to adopt  the work  draft CS  for SB  223,                                                               
labeled 27-LS1419\D, as the working document.                                                                                   
                                                                                                                                
CHAIR  OLSON  announced  that without  objection  version  D  was                                                               
before the committee.                                                                                                           
                                                                                                                                
MR. SCOTT summarized  the changes made in the CS.  First, it adds                                                               
a  5-year sunset  to give  the legislature  time to  evaluate the                                                               
success of  the tax credit.  Second, it delineates  that eligible                                                               
organizations  must be  established before  January 1,  2012. The                                                               
intent  is  to  help  current nonprofit  service  providers,  not                                                               
stimulate new  ones. Third, it  removes the dollar match  for tax                                                               
credits and  instead allows  a tax  credit of  50 percent  of the                                                               
donation.  Finally, on  page 2,  line 3,  departmental procedures                                                               
for approvals were added.                                                                                                       
                                                                                                                                
3:40:02 PM                                                                                                                    
SENATOR MENARD moved to adopt Amendment 1, labeled 27-                                                                          
LS1419\D.1.                                                                                                                     
                                                                                                                                
                      A M E N D M E N T 1                                                                                   
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
          TO:  CSSB 223( ), Draft Version "D"                                                                                   
                                                                                                                                
     Page 2, lines 10-12:                                                                                                       
          Delete all material and insert:                                                                                       
               "(d)  The commissioner shall, by January 1 of                                                                    
          each  year,  provide  to  the  legislature  a  list  of                                                               
          recipients  of  contributions,   the  total  amount  of                                                               
          contributions reported, and the  total amount of credit                                                               
          claimed   under  this   section  during   the  previous                                                               
          calendar year."                                                                                                       
                                                                                                                                
3:40:19 PM                                                                                                                    
CHAIR OLSON  found no  objection and  announced that  Amendment 1                                                               
was adopted.                                                                                                                    
                                                                                                                                
MR. SCOTT  said the intent is  for the legislature every  year to                                                               
see the effect of the tax  credit. He noted that the tax division                                                               
did not object to the amendment.                                                                                                
                                                                                                                                
SENATOR  MENARD asked  if it  was his  understanding that  no one                                                               
opposed the bill.                                                                                                               
                                                                                                                                
MR.  SCOTT replied  that is  correct, but  that public  testimony                                                               
should continue.                                                                                                                
                                                                                                                                
SENATOR MENARD expressed comfort with the bill.                                                                                 
                                                                                                                                
CHAIR  OLSON  asked  Ms. Bales  if  the  amendment  significantly                                                               
changes the revenue stream for the state.                                                                                       
                                                                                                                                
3:41:58 PM                                                                                                                    
JOHANNA  BALES,  Deputy  Director, Tax  Division,  Department  of                                                               
Revenue,  said  that  neither  the CS  nor  the  amendment  would                                                               
significantly change the DOR fiscal note.                                                                                       
                                                                                                                                
CHAIR OLSON announced he would hold SB 223 in committee.