04/17/2010 05:22 PM House FIN

CS FOR SENATE BILL NO. 236(EDC)                                                                                               
                                                                                                                                
     "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."                                                                                                           
                                                                                                                                
6:59:39 PM                                                                                                                    
                                                                                                                                
Vice-Chair Thomas MOVED to ADOPT  HCS CSSB 236(FIN) (Version                                                                    
26-LS1191\N,  Chenoweth/Bullock,   4/17/10)  as   a  working                                                                    
document before the committee.                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
JOMO STEWART,  STAFF, SENATOR  KEVIN MEYER  and CO-COMMITTEE                                                                    
AIDE,  SENATE  EDUCATION  COMMITTEE,  gave  an  overview  of                                                                    
differences between the  Senate version of the  bill and the                                                                    
CS. First, under the original  Senate bill, the cap had been                                                                    
raised on  the tax  credits from  the $150,000  currently in                                                                    
statute to  $25 million; the  CS would  lower the cap  to $5                                                                    
million (which  mirrors the House  version). Second,  the CS                                                                    
includes   language   provided   in  the   House   regarding                                                                    
affiliated groups. The  affiliated groups language clarifies                                                                    
that each donating corporation would  not be able to claim a                                                                    
$1 million tax credit, but would have to divide the credit.                                                                     
                                                                                                                                
Co-Chair  Stoltze  noted  concerns  about  tax  credits  but                                                                    
thought the bill had been trimmed back.                                                                                         
                                                                                                                                
Co-Chair Stoltze opened and closed public testimony.                                                                            
                                                                                                                                
Co-Chair   Hawker   described   the  fiscal   note   as   an                                                                    
indeterminate  revenue note  without other  direct costs  or                                                                    
consequences.                                                                                                                   
                                                                                                                                
Co-Chair Stoltze  REMOVED his OBJECTION to  adopting the CS.                                                                    
There being no further objection, it was so ordered.                                                                            
                                                                                                                                
Vice-Chair Thomas MOVED  to report HCS CSSB  236(FIN) out of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Representative Doogan  commented that the  legislation would                                                                    
expand tax credits  as opposed to coming  to the legislature                                                                    
to get money  for educational projects. He  thought it would                                                                    
short-circuit the process  by directly funding institutions;                                                                    
he  felt that  the  legislature should  be  involved in  the                                                                    
educational funding business.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  shared  concerns about  tax  credits.  He                                                                    
noted that the bill  had been reduced. Representative Doogan                                                                    
was glad for the reduction.                                                                                                     
                                                                                                                                
There being NO  further OBJECTION, the bill  was ordered out                                                                    
of committee.                                                                                                                   
                                                                                                                                
HCS CSSB  236(FIN) was  REPORTED out  of Committee  with "no                                                                    
recommendation"  and  attached previously  published  fiscal                                                                    
note: FN1 (REV).