03/31/1994 03:00 PM House HES

  SB 225 - INSURANCE TAX CREDIT:  GIFTS TO COLLEGES                            
                                                                               
  CAROL CARROL, Legislative Aide to Sen. Jay Kerttula, Prime                   
  Sponsor of SB 225, stated that presently there is a tax                      
  credit available to most of the industry tax payers in                       
  Alaska regarding gifts to colleges.  She indicated that the                  
  one industry that does not have the ability to take the tax                  
  credit is the insurance industry.  She maintained that the                   
  situation was an oversight when the bill was enacted in                      
  1991.  The legislation would extend that tax credit to                       
  insurance companies.  She indicated that the bill provides                   
  that authorized insurance companies may take as a tax credit                 
  50% of the first $100,000.  She said the industry must be                    
  willing to donate an amount of money that they will not get                  
  credit for.  She explained that Sen. Kerttula believes it is                 
  a good idea to support higher education.  She then noted                     
  that WENDY REDMAN was on teleconference to answer questions.                 
                                                                               
  CHAIR BUNDE further noted that there were also people in                     
  Juneau waiting to testify.                                                   
                                                                               
  REP. TOOHEY asked when the idea for the bill was conceived.                  
                                                                               
  MS. CARROL said she was unsure, but it was revised in 1991.                  
  She deferred to WENDY REDMAN.                                                
                                                                               
  CHAIR BUNDE indicated that due to technical difficulties,                    
  the committee was unable to hear teleconference testimony at                 
  that time.  He asked for further testimony.                                  
                                                                               
  Number 097                                                                   
                                                                               
  AL ALVAREZ, Vice-President, University Relations, Alaska                     
  Pacific University (APU), testified in Juneau in support of                  
  SB 225.  He stated that a few years ago legislation was                      
  passed to allow credit on a portion of a gift to an                          
  institution of higher education within Alaska.  He declared                  
  that the current legislation has been quite beneficial and                   
  indicated that the APU is very dependent on private gifts                    
  and grants for its support.  He reiterated that the                          
  insurance industry was overlooked when the current law was                   
  written.  He said it wasn't until APU approached local                       
  insurance companies for gifts to the university that it was                  
  discovered that insurance companies pay a premium tax under                  
  another section of the code.  He urged the committee's                       
  support of SB 225.                                                           
                                                                               
  Number 205                                                                   
                                                                               
  CHAIR BUNDE asked if WENDY REDMAN was available for                          
  teleconference testimony.  He was then informed that MS.                     
  REDMAN had to catch a plane from Fairbanks and could no                      
  longer wait to testify.  He then asked for further                           
  testimony.  Hearing none, he closed public testimony and                     
  asked the pleasure of the committee.                                         
                                                                               
  REP. KOTT made a motion to pass SB 225 out of committee with                 
  individual recommendations and attached fiscal note.                         
                                                                               
  CHAIR BUNDE, hearing no objections, declared that SB 225 was                 
  so moved.  He then brought HB 354 to the table.  He                          
  indicated that LIEUTENANT CASANOVAS was available to answer                  
  questions via teleconference.