04/03/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

        SB 223-TAX CRED: CONTR. TO HOMELESS SHELT/DETOX                                                                     
                                                                                                                              
3:34:29 PM                                                                                                                    
CHAIR OLSON announced the consideration  of SB 223, which relates                                                               
to  a  tax  credit  for   homeless  shelters  and  detoxification                                                               
facilities. The bill was heard three previous times.                                                                            
                                                                                                                                
DAVID   SCOTT,  Staff,   Senator  Donald   Olson,  Alaska   State                                                               
Legislature, said the committee amended  the bill during the last                                                               
hearing and  it was  held in  committee to  provide time  for the                                                               
public review  the change  and comment.  The committee  has since                                                               
received  letters of  support  from the  Covenant  House and  the                                                               
Alaska Network on Domestic Violence.                                                                                            
                                                                                                                                
CHAIR OLSON asked Mr. Scott to review the bill briefly.                                                                         
                                                                                                                                
3:35:50 PM                                                                                                                    
SENATOR MENARD joined the meeting.                                                                                              
                                                                                                                                
MR. SCOTT  explained that the  bill provides  a tax credit  up to                                                               
$200,000 to a  business that donates to  a nonprofit organization                                                               
that provides  emergency shelter for  the homeless or  a facility                                                               
for alcohol  or drug detoxification.  He highlighted  the changes                                                               
from the  original bill.  The credit is  only available  to those                                                               
nonprofits established on  or before January 1, 2012;  there is a                                                               
five-year sunset  so that a  future legislature can  evaluate the                                                               
program; and DCCED, not the  taxpayer, reports to the legislature                                                               
the amounts of  the contributions, the recipients,  and the total                                                               
credit claimed.                                                                                                                 
                                                                                                                                
3:37:39 PM                                                                                                                    
BRIDIE  TRAINOR,  Director,  Kawerak Wellness  Program,  Kawerak,                                                               
Inc.,  said she  was also  testifying on  behalf of  the regional                                                               
wellness forum.  She stated support for  SB 223 and noted  that a                                                               
letter of support  was also sent by the  regional wellness forum.                                                               
She said  the tax credit bill  is an excellent way  for the state                                                               
to  increase  funding for  homeless  or  facilities that  provide                                                               
alcohol and drug detoxification services.                                                                                       
                                                                                                                                
MS.  TRAINOR said  the regional  hospital in  Nome is  constantly                                                               
helping people who should either  be referred to a detoxification                                                               
center or  admitted to an  inpatient treatment facility,  but are                                                               
instead  held  in  jail temporarily.  She  cited  alcohol-related                                                               
statistics since  the Nome treatment  center closed in  2000. She                                                               
said  services  to  help  the homeless  population  in  Nome  and                                                               
throughout Alaska are  also needed; many in  this population have                                                               
died of exposure. She urged passage of SB 223.                                                                                  
                                                                                                                                
CHAIR OLSON  asked Mr.  Williams what fiscal  impact SB  223 will                                                               
have for the state.                                                                                                             
                                                                                                                                
3:39:51 PM                                                                                                                    
MICHAEL  WILLIAMS,  Auditor,  Treasury  Division,  Department  of                                                               
Revenue, stated that  the fiscal note is  indeterminate; it would                                                               
be based on the amount that  corporations decide to give to these                                                               
nonprofit organizations.                                                                                                        
                                                                                                                                
CHAIR OLSON asked what DOR anticipates in five years.                                                                           
                                                                                                                                
MR.  WILLIAMS  declined  to  speculate until  a  fiscal  note  is                                                               
prepared for version E.                                                                                                         
                                                                                                                                
CHAIR OLSON surmised  that the impact would  be negligible, given                                                               
the size of the state's budget.                                                                                                 
                                                                                                                                
MR.  WILLIAMS responded  that DOR  believes it  would be  able to                                                               
administer the  provision under existing  budgets and  staff. The                                                               
fiscal note  would reflect zero  cost, but there was  no estimate                                                               
at this time on the revenue impact.                                                                                             
                                                                                                                                
CHAIR OLSON asked Mr. Scott if he had closing comments.                                                                         
                                                                                                                                
MR.  SCOTT  stated  that  there  is  a  problem  in  Alaska  with                                                               
homelessness  and  chronic  alcohol  abuse.  The  bill  seeks  to                                                               
encourage help from local philanthropic organizations.                                                                          
                                                                                                                                
3:42:05 PM                                                                                                                    
SENATOR  MENARD commented  that  homelessness  and alcohol  abuse                                                               
affects everyone. She urged support for the bill.                                                                               
                                                                                                                                
CHAIR OLSON  found no further  questions or discussion  and asked                                                               
the will of the committee.                                                                                                      
                                                                                                                                
3:43:03 PM                                                                                                                    
SENATOR  WAGONER  moved  to  report   CS  for  SB  223(CRA)  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
3:43:28 PM                                                                                                                    
CHAIR OLSON announced that without  objection CSSB 223(CRA) moved                                                               
from  the   Senate  Community   and  Regional   Affairs  Standing                                                               
Committee.