05/08/1994 01:30 PM Senate FIN

  SSSB 223:           An  Act  relating  to   credits  against                 
                      certain  taxes   for  contributions   to                 
                      certain  public  educational  radio  and                 
                      television  networks  and  stations; and                 
                      providing for an effective date.                         
                                                                               
                      Senator Robin Taylor, sponsor of SB 223,                 
                      testified in support of the bill.  Diane                 
                      Kaplan,  Alaska  Public  Radio  Network,                 
                      testified  in  support  of  SB  223  and                 
                      answered questions  from the  committee.                 
                      Senator  Kerttula   proposed  conceptual                 
                      amendment 1.   Amendment 1  was ADOPTED.                 
                      Co-chair Pearce clarified amendment 1 by                 
                      stating that the University would remain                 
                      the  same  and  corporations   would  be                 
                                                                               
                                                                               
                      allowed  only  one  $50,000 tax  credit.                 
                      Senator  Kelly  proposed amendment  2 to                 
                      include   the   Iditarod   Trail   Race.                 
                      Amendment 2 FAILED.  CSSSSB 223(FIN) was                 
                      REPORTED  out of  committee  with a  "do                 
                      pass,"  and zero  fiscal  notes for  the                 
                      Department      of      Revenue      and                 
                      Administration.                                          
                                                                               
  SPONSOR SUBSTITUTE FOR SENATE BILL NO. 223:                                  
                                                                               
       An Act relating  to credits  against certain taxes  for                 
       contributions to  certain public educational  radio and                 
       television networks and stations; and providing  for an                 
       effective date.                                                         
                                                                               
  Co-chair Pearce invited Senator Robin Taylor to the table to                 
  speak to SB 223.                                                             
                                                                               
  SENATOR ROBIN  TAYLOR, sponsor  of SB  223, said  that in  a                 
  public survey, 65.4 percent of the people surveyed said they                 
  would support a  tax credit for corporations  who contribute                 
  to  public  radio.    The  same   credit  was  used  by  the                 
  University.    He  felt  this  was  a  way  to  wean  public                 
  broadcasting  from the state  budget and  for them  to raise                 
  money on their  own.  He  observed their budget had  already                 
  been reduced 35 percent.                                                     
                                                                               
  Co-chair   Pearce   asked  how   he   differentiated  public                 
  broadcasting  from all  the  other non-profit  programs that                 
  received state grants  money.  She  felt that this bill  put                 
                                                                               
                                                                               
  Public  Radio  on  a  different  level  than,  for  example,                 
  domestic violence shelters.                                                  
                                                                               
  DIANE KAPLAN,  Alaska Public  Radio Network,  spoke to  this                 
  amendment.   She  anticipated 12  to 15 corporations  in the                 
  state would take advantage of this tax credit.  She felt the                 
  effect on  the general  fund would  be quite  minimal.   The                 
  Department of  Revenue had provided  a zero fiscal  note for                 
  two years.   She  listed the  total effect  of the  existing                 
  University tax credit  to be about  $600,000.  The goal  for                 
  Public  Radio  for  the  first year  was  $100,000  for  the                 
  endowment  trust fund.   In answer  to Co-chair  Pearce, Ms.                 
  Kaplan said  that about  half of  the contributors  targeted                 
  were not contributing currently.                                             
                                                                               
  Senator  Kerttula MOVED conceptual  amendment 1 that removed                 
  "(2) 100 percent of the next $100,000 of contributions" from                 
  each  section but  not from  the  University.   No objection                 
  being heard, amendment 1 was ADOPTED.                                        
                                                                               
  Senator Kelly voiced his opinion  that public television was                 
  no longer of value  to the state of Alaska.   He felt public                 
  radio still served the state, especially in the rural areas.                 
  He  called  the  fiscal notes  following  this  bill "bogus"                 
  pointing  out  that  every  dime  that  the  public  network                 
  received came directly out of the state general fund.                        
                                                                               
  Senator  Kelly  MOVED amendment  2  to include  the Iditarod                 
  Trail Race in  SB 223.   Senator Jacko  OBJECTED.   Co-chair                 
  Pearce called for a show of hands and Amendment 2  FAILED on                 
  a  vote of 4 to 3 (Senators Kerttula, Rieger, and Kelly were                 
  in support, Co-chairs  Pearce and Frank, Senators  Sharp and                 
  Jacko were opposed).                                                         
                                                                               
  After comments  by Senator  Sharp, Co-chair  Pearce made  it                 
  clear that an  organization could  receive only one  $50,000                 
  tax credit.                                                                  
                                                                               
  Senator  Jacko  MOVED for  passage  of CSSSSB  223(FIN) from                 
  committee with individual recommendations.   CSSSSB 223(FIN)                 
  was REPORTED out  of committee  with a "do  pass," and  zero                 
  fiscal  notes  for  the  Departments of  Administration  and                 
  Revenue. Co-chairs Pearce, Frank,  Senators Kerttula, Kelly,                 
  Rieger, Sharp and Jacko signed "do pass."                                    
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was recessed at approximately 2:45 p.m.