Legislature(1999 - 2000)
03/01/2000 03:34 PM House L&C
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 380 - INSURER TAX CREDIT: FIRE STANDARDS COUNCIL Number 0148 CHAIRMAN ROKEBERG announced that the first order of business would be HOUSE BILL NO. 380, "An Act relating to contributions to the Alaska Fire Standards Council and to an insurer tax credit for those contributions; and providing for an effective date." [Before the committee was CSHB 380(STA).] Number 0145 JOE BALASH, Staff to Representative Gene Therriault, Alaska State Legislature, introduced HB 380 by reading briefly from the sponsor statement. He said HB 380 creates an insurance tax credit for contributions to the Alaska Fire Standards Council for fire services training programs. Created by the 20th legislature, the Fire Standards Council will meet for the first time on July 1, 2000, and HB 380 creates a funding source for the council's operations. The council will adopt minimum standards for employment, as well as curriculum requirements for fire fighters and fire instructors around the state. The certification [of fire fighters] is not mandatory. The council will allow the state to adopt fire standards appropriate to Alaska's unique climate. Number 0258 REPRESENTATIVE HALCRO asked about the difference between the original bill and CSHB 380(STA). He noted that the committee substitute (CS) deletes the word "training" and asked why. MR. BALASH said the intent was to open up the language a little to cover the cost of operations in this initial year, as standards are being developed. [JASON ELSON, Fire Chief, City of Kenai, and a member of the Alaska Fire Chiefs Association, told members via teleconference that he and Chief Len Malmquist, also on teleconference from Kenai, would defer to colleagues from Anchorage and Fairbanks.] Number 0390 MICHAEL McGOWAN, Coordinator, Fire Science Program, University of Alaska - Fairbanks, testified by teleconference from Fairbanks. He identified himself as past president of the Alaska Fire Chiefs Association and coordinator of the University of Alaska Fire Science Program at Fairbanks. He said Alaska has the worst fire loss and fatality record in the United States. Alaska's police and Emergency Medical Services (EMS) personnel have had training standards for about 20-25 years. The Police Standards Council is funded by $10 per [traffic citation], and the EMS Standards Council is funded through the state Department of Health, Education and Social Services. MR. McGOWAN said the only fire training standards in Alaska recognized by the federal Occupational Safety and Health Administration are those established by the National Fire Protection Association. Alaska has about 25 urban fire departments that cover about 90 percent of the population and about 225 rural fire departments that cover about 10 percent of the population. It is very difficult for the urban departments to achieve those training standards and "totally unrealistic for the rural departments to even begin to meet them." MR. McGOWAN said the Alaska Fire Chiefs Association supports HB 380 and establishment of an Alaska Fire Council to adopt minimum training standards for both fire fighters and instructors. The funding mechanism provided by HB 380 will allow the insurance industry to support the fire training. Hopefully, the result will be an increase in fire fighter safety and reduction of fire losses and fatalities. Number 0573 GARY POWELL, State Fire Marshall and Director, Division of Fire Prevention, Department of Public Safety, testified by teleconference from Anchorage. He said the Division of Fire Prevention supports HB 380. Number 0602 JIM WHITE, Chief of Fire Service Training, Anchorage Fire Department, testified by teleconference from Anchorage. He expressed support for HB 380 on behalf of the Anchorage Fire Department. He also relayed a verbal commitment of support from the Anchorage Fire Fighters Union, Local 1264, and said the union's endorsement is expected to be ratified by a vote on March 9. CHAIRMAN ROKEBERG asked where Anchorage training would take place. MR. WHITE answered that Anchorage trains its own fire fighters using facilities in Kenai and Fairbanks. As the largest fire department in the state, Anchorage also supplies instructors to Kenai, Fairbanks and outlying villages. Number 0752 MIKE DOLPH, President, Alaska Fire Chiefs Association, testified by teleconference from Kodiak. He identified himself as retired fire chief of the City of Kodiak as well as the current president of the Alaska Fire Chiefs Association. He reaffirmed the association's support for HB 380, commenting on its "fiscally responsible and accountable method of funding the Fire Standards Council." BOB LOHR, Director, Division of Insurance, Department of Community and Economic Development, informed members that he was available to answer questions. Number 0882 JOHN GEORGE, Lobbyist for the National Association of Independent Insurers, told committee members that the insurance industry had been silent on this issue, and so had been asked to lend its support to HB 380. He said member companies have indicated that they would consider donating to this type of thing [a state Fire Standards Council]. Most insurance companies have a foundation or committee that reviews applications for donations each year. "These are the kinds of things that we do consider," he said. MR. GEORGE said member agencies appreciate that contributions are not mandatory, but that the insurance industry is being given an opportunity to donate money to this, which is certainly needed in the state. He voiced support for HB 380 on behalf of the National Association of Independent Insurers. In closing, he urged legislators not to close themselves to thinking about other funding sources. The Fire Standards Council has an important mission, is very worthy of financing, and should not have to rely 100 percent on insurance company donations for its financing. Number 0992 CHAIRMAN ROKEBERG clarified that HB 380 will allow members to make donations in exchange for a tax credit to the organization not to exceed $150,000 a year. MR. GEORGE said it would be a partial tax credit, not one-for- one. If an insurance company gives $50,000, it can take a $25,000 credit on its premium taxes derived from insurance premiums that relate to fire. The company still gives some of its money, but the donation would reduce the company's tax obligation. This program is very similar to one that the University of Alaska has, also dealing with premium taxes. Number 1031 REPRESENTATIVE HALCRO asked if there was any similar program in any other state. MR. GEORGE said he was not aware of any similar programs in other states, but that insurance companies give money to various charities and causes throughout the country. Number 1070 REPRESENTATIVE MURKOWSKI noted that HB 380 refers to cash contributions. She asked whether any other kind of contributions could be made. MR. GEORGE said insurance companies have many ways in which they might contribute. Whether HB 380 allows it is another matter. For example, insurance companies have print shops where they print policies and riders, and they might be willing to print brochures, pamphlets, training manuals, and that kind of thing as an in-kind donation. They might provide access to their mailing list or put a flyer in with their billings to Alaskan residents, but he thinks HB 380 does not address that. REPRESENTATIVE MURKOWSKI said HB 380 specifically refers to "cash contributions," and she wonders if it is purposefully specific. MR. BALASH explained that the language in HB 380 was based on that which is already in place for the University of Alaska. There was not a particular intent to restrict contributions to cash only. REPRESENTATIVE HALCRO asked Mr. Balash if it would be acceptable to eliminate the word "cash" in the bill. What if one wished to donate a building or vehicles, or make in-kind contributions such as printing or legal assistance?. He wondered if there would be a benefit to deleting the specific reference to cash and allowing all kinds of contributions. MR. BALASH said he didn't think that would be a problem, but said he would prefer to let the Fire Council speak for itself on the matter [of in-kind and other possible non-cash contributions]. He wondered how those other types of contributions would be accounted for under the Division of Insurance statutes and regulations. CHAIRMAN ROKEBERG said he thought it would cause a severe accounting problem, and evaluation [of such donations] would add to the cost. He favors the relatively simple, straightforward program capped at $150,000. CHAIRMAN ROKEBERG then asked Mr. Balash why HB 380 includes a reference to title insurance premium taxes. MR. BALASH said he thought that was an oversight, inadvertently left in from earlier drafts of the bill. [CHAIRMAN ROKEBERG addressed Mr. Lohr, and there was discussion concerning the fiscal note.] CHAIRMAN ROKEBERG requested confirmation that the bill will save the state money. MR. LOHR explained that it would result in a net increase in revenues to the state because the contributions are in excess of the tax credits allowable. That was the intended outcome. Number 1594 REPRESENTATIVE MURKOWSKI asked Mr. Lohr to comment on the earlier discussion about the applicability of tax credits for non-cash contributions. MR. LOHR said the associated evaluation issues get quite "thorny," and that he thought the cash contribution would be a much cleaner approach. REPRESENTATIVE HALCRO asked about a donation of assets that already have an established value, such as land that has an assessed valuation that can be documented. MR. LOHR said that might be possible. Number 1711 CHAIRMAN ROKEBERG moved to adopt Amendment 1, a conceptual amendment to page 1, line 11, deleting the reference to title insurance premium tax. There being no objection, it was so ordered. Number 1747 REPRESENTATIVE HALCRO made a motion to move out of committee CSHB 380(STA), as amended, with individual recommendations and the two accompanying fiscal notes. There being no objection, CSHB 380(L&C) was moved out of the House Labor and Commerce Standing Committee.
| Document Name | Date/Time | Subjects |
|---|