02/02/1994 02:20 PM Senate HES

 CHAIRMAN RIEGER introduced  SB 225  (INSURANCE TAX CREDIT:  GIFTS TO     O    
 COLLEGES) as the next bill before the committee.                              
                                                                               
 SENATOR KERTTULA, the prime sponsor, stated that he was prepared to           
 answer questions, but preferred that Carol Carrol read his                    
 statement.                                                                    
                                                                               
 CAROL CARROL, staff to Senator Kerttula, reviewed SB 225.                     
                                                                               
 SENATOR KERTTULA emphasized that private institutions provide a               
 great deal of private support for education in this state which               
 decreases the tax payers burden, therefore, continuing private                
 support is in the best interest of everyone.  He said that SB 225             
 is strongly pushed by the University of Alaska and the Alaska                 
 Pacific University.  He does not see a downside to this                       
 legislation, particularly since insurance companies are not allowed           
 to contribute more than fifty percent.                                        
                                                                               
 Number 303                                                                    
                                                                               
 SENATOR LEMAN asked why there is no extension of support to K-12 as           
 there is for higher education.                                                
                                                                               
 SENATOR KERTTULA stated that he had not considered such for K-12              
 whether public or private.  He explained that higher education's              
 increasing tuition costs for out of state institutions were                   
 creating more responsibilities.  He expressed the need to provide             
 broad opportunities to Alaskan students.  He pointed out the                  
 historic background in providing annuity programs for universities            
 across the country.                                                           
                                                                               
 SENATOR RIEGER asked if the language located on the bottom of page            
 1 and the top of page 2 referring to a "qualified institution" is             
 the same language describing institutions eligible for contribution           
 under existing statutes.  MR. CHENOWETH said yes.                             
                                                                               
 JACK CHENOWETH discussed the errors made in the statutes from the             
 1991 legislature which are also present in SB 225.  He suggested              
 correcting it in SB 225 by deleting the words "or by an Alaska                
 university foundation" from the bottom of page 1 and the top of               
 page 2 and move them behind "accredited by a regional accreditation           
 association."  This change would then speak to two or four year               
 colleges accredited by a regional accreditation association or by             
 an Alaska university foundation which was the original intent of              
 the 1991 legislature.                                                         
                                                                               
 CHAIRMAN RIEGER expressed concern with the language used in the               
 requirement for accreditation for the two or four year colleges.              
 He asked if it would be the same as a foundation, which is on                 
 behalf of an Alaskan university.  MR. CHENOWETH stated that he                
 cannot find that foundations are accredited and that is not what              
 the 1991 legislature intended.  This can be written to the                    
 committee's desire with respect to this particular tax, but Mr.               
 Chenoweth was offering the corrections for consistency with the               
 publisher's corrections of the statutes.                                      
                                                                               
 CHAIRMAN RIEGER requested that the change include a description of            
 foundation which would link it to the institutions, which are the             
 subject of the bill.  This would make the foundations for the same            
 purposes as the description of institutions.  SENATOR KERTTULA                
 agreed to clean-up the language for this bill.                                
                                                                               
 CHAIRMAN RIEGER held SB 225 until the committee meeting on Friday.