Legislature(2011 - 2012)HOUSE FINANCE 519
04/15/2012 09:00 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB53 | |
| SB25 | |
| SB119 | |
| SB136 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 136 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 25 | TELECONFERENCED | |
| += | SB 53 | TELECONFERENCED | |
| += | SB 119 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 15, 2012
10:21 a.m.
10:21:24 AM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 10:21 a.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Celeste Hodge, Staff, Senator Bettye Davis; Guy Bell,
Administrative Director, Division of Administrative
Services, Office of the Governor; Senator Bettye Davis,
Sponsor; Michael Pawlowski, Staff, Senator Lesil McGuire;
Mark Davis, Deputy Director, Alaska Industrial Development
and Export Authority, Department of Commerce, Community and
Economic Development; Joe Michel, Staff, Representative
Bill Stoltze; Representative Dan Saddler; Christine
Marasigan, Staff, Senator Kevin Meyer; Kendra Kloster,
Staff, Senator Bill Wielechowski.
PRESENT VIA TELECONFERENCE
Arliss Sturgelewski, Self, Anchorage; Cecilia Zamora,
President, National Association of Commission for Women,
California.
SUMMARY
CSSSSB 25(L&C)
AIDEA: SUSTAINABLE ENERGY/ INTEREST RATE
HCS CSSSSB 25(L&C) was REPORTED out of committee
with a "do pass" recommendation and with one
previously published zero fiscal note: FN2 (CED);
and one previously published fiscal impact note:
FN3 (SFIN/CED).
CSSB 53(FIN)
COMMISSION ON THE STATUS OF WOMEN
CSSB 53(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one previously
published amended fiscal impact note: FN3 (GOV).
CSSB 119(L&C)
ATHLETIC TRAINERS
HCS CSSB 119(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one
previously published fiscal impact note: FN4
(CED); and one previously published zero note:
FN5 (ADM).
HCS CSSB 136(FIN)
INCOME TAX CREDIT FOR EMPLOYING A VETERAN
HCS CSSB 136(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one new
indeterminate fiscal note from the Department of
Revenue.
CS FOR SENATE BILL NO. 53(FIN)
"An Act reestablishing the Alaska Commission on the
Status of Women; and relating to the purpose and
powers of the Alaska Human Relations Commission."
10:22:16 AM
Vice-chair Fairclough MOVED CSSB 53 27-LS0107\M before the
committee.
CELESTE HODGE, STAFF, SENATOR BETTYE DAVIS, explained that
the legislation reestablished the Alaska Commission on the
Status of Women, a nine member body that was devoted to
improving the status of women in Alaska. She provided
opening remarks:
The Alaska Commission on the Status of Women was
established in 1978, renewed, and renamed to the
Alaska Women's Commission in 1983. In 1993 the Alaska
Women's Commission and the Alaska Commission on
Children and Youth were absorbed into the Alaska Human
Relations Commission, which continues to exist in
statute, but was never funded and declared inactive in
1996. Staggering statistics for women in Alaska show
need to reestablish the Alaska Women's Commission. To
focus on broad, diverse cross section issues effecting
women. Alaska faces disproportionately high levels of
poverty among women of all ages. Poverty rates for
unmarried female householders with children are
particularly high and have consistently been two or
three times as high as overall male and female poverty
rates since 1996. Survey data compiled by the American
Community Survey shows that of 26,518 families in
Alaska with a female head of household 22.6 percent
live below the poverty level. The gender wage gap
persists in Alaska and across a wide spectrum of
occupations and industries. In 2009 according to the
Alaska Department of Labor, Alaskan women on average
earned only 66.6 percent of what men earned. Although
more women than men in Alaska hold a bachelor's degree
or higher, data shows that men's median annual
earnings are higher in every educational level.
Alaskan women, in particular women of color,
experience health care disparities and women living in
rural Alaska have worse than average disparities on
access and utilization of services. Alaska continues
to have the highest rates of sexual assault and
domestic violence in the nation.
Members of this committee, it's so unfortunate [that]
Alaska has maintained these startling statistics for
decades. It's past time for Alaska to reestablish the
Alaska Women's Commission; an official state entity to
begin focusing on improving the status of women and
children in Alaska. Continued long-term improvement in
the status of women in Alaska is not only of personal
benefit to the health and well-being of individual
women and children, but contributes to the general
health and stability of our economy as well.
Ms. Hodge was available for questions and thanked the
committee for hearing the bill.
10:25:52 AM
ARLISS STURGELEWSKI, SELF, ANCHORAGE (via teleconference),
spoke in strong support of the legislation. She had been
very active with the original women's commission and had
been sorry to see it go away. She was in favor of the
bill's structure that called for hearings in both rural and
urban areas of the state; it would allow for a forum where
issues of concern could be expressed. She thanked the
committee for hearing the legislation.
10:27:38 AM
CECILIA ZAMORA, PRESIDENT, NATIONAL ASSOCIATION OF
COMMISSION FOR WOMEN, CALIFORNIA (via teleconference),
vocalized support for the bill and the reestablishment of
the commission in Alaska. She discussed the importance of
the legislation that would help the women and girls
throughout Alaska. She stressed that state commissions
played a vital role for the governor and legislature in
advising on important issues; the funds spent on the
commission would be money well spent. She assured the
committee that the commission would be a help to the state.
10:29:52 AM
Co-Chair Stoltze CLOSED the public testimony.
Vice-chair Fairclough addressed the fiscal note from the
Office of the Governor. The allocation was to the Alaska
Women's Commission and added three full-time employees. The
funding request included $515,400 for FY 13, $472,000 for
FY 14, $481,300 for FY 15, $490,900 for FY 16, $580,000 for
FY 17, and $508,500 for FY 18.
Co-Chair Thomas asked about the second page of the fiscal
note related to geographic representation that was not
included in the bill.
Co-Chair Stoltze believed the governor's office was using
random locations to determine the fiscal note.
Co-Chair Thomas asked whether three employees were needed
to run the commission; he believed the number seemed high.
He asked whether there had been three staff members in the
past. Ms. Hodge replied that there had originally been
three staff members on the commission. She emphasized that
the staff had accomplished a significant amount of work
apart from organizing several meetings a year. She
furthered that in the former commission's later years it
had gone to a volunteer organization; the annual report had
gone from pages down to a paragraph due to the reduction in
work accomplished.
10:32:50 AM
Co-Chair Thomas thought a range 24 was high on the pay
scale. He noted that the three positions were ranges 24,
18, and 15. He believed the numbers were excessive for work
related to the planning of four or so meetings per year.
Representative Wilson asked what the average number of
staff was for a board with seven members. Ms. Hodge did not
know. She added that the board would be comprised of seven
members and two appointed members at the administrative
level.
Co-Chair Thomas restated his question related to the number
of proposed staff for the commission.
GUY BELL, ADMINISTRATIVE DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, OFFICE OF THE GOVERNOR, answered
that the fiscal note had been modeled after the commission
when it had existed in FY 90 and FY 91. There had been as
many as four or five staff on the commission at the time
with pay ranges similar to those proposed in the fiscal
note.
Co-Chair Thomas did not believe the fact that the positions
had existed previously was justification to include them
currently.
Representative Neuman pointed to the duties of the
commission (page 3 of the legislation); the duties were to
improve the status of women by conducting research. He
stated that the commission members were supposed to do a
portion of the research; therefore, he believed one staff
to help coordinate the research would be sufficient.
10:36:29 AM
Co-Chair Stoltze asked Representative Joule how many
members made up the Arctic Policy Commission. He believed
the commission had an employee who was paid at a range 19
or 20.
Representative Joule replied that the fiscal note included
one staff position that had been changed to a range 19 from
a range 24 by the Senate Finance Committee. The commission
was comprised of 19 members. He discussed that one of his
employees had staffed the Northern Waters Task Force and
had been busy for the duration of the task force. He noted
that committee members did engage primarily at the meetings
when information was brought to them by staff.
Co-Chair Stoltze remarked that the information was
illustrative related to the current bill.
Representative Wilson could not vote for the bill if it
included three staff positions. She had heard opposition
from constituents related to the $0.5 million price tag.
She believed the fiscal note should be dropped to one
position at a range 19; the commission could come back to
the legislature in the future if it needed additional
staff.
Co-Chair Stoltze was mixed on the bill, but was currently
leaning towards a "do not pass."
Representative Edgmon was also concerned about the fiscal
note. He believed an approval of the fiscal note went
against the committee's actions throughout the session. He
looked at page 3 of the bill and discussed that any
research conducted at the outset would be secondary. He
surmised that perhaps the need for more staff would develop
over time; however, the bill currently included $3 million
through FY 18 and the committee had not included funding in
that amount for any of the other commissions. He supported
the bill, but not the hefty fiscal note.
10:41:06 AM
AT EASE
10:45:53 AM
RECONVENED
Representative Doogan MOVED to AMEND the fiscal note to
reduce the staff to two; one at a range 20 and one at a
range 17.
Co-Chair Stoltze clarified that the positions would include
an executive director and a support staff.
Representative Neuman commented that the Arctic Policy
Council was a large council with a significant amount of
work and only had one employee at a range 19. He did not
believe two positions made sense for a seven member
commission. He proposed one position at a range 20.
Representative Edgmon asked if the commission would be
located in the governor's office. Ms. Hodge replied in the
affirmative.
Representative Edgmon asked whether phone calls would be
directed through the governor's office central line.
Co-Chair Stoltze did not believe that would be the case. He
believed there was an overall committee consensus to
include funding for two positions. He acknowledged
Representative Neuman's expression that the positions
should be reduced to one.
Representative Neuman MOVED to reduce the fiscal note to
include one position at a range 20. He referenced the large
amount of work done by legislative staff who dealt with a
significant number of constituents. He reiterated that one
position should be sufficient to staff the commission.
10:49:45 AM
Vice-chair Fairclough declared a conflict of interest due
to the gender specific nature of the legislation. She
discussed that there were disadvantaged women and children
throughout the state. She had been a strong supporter of
equity, respect, and for children of Alaska who had been
harmed. The bill provided an opportunity for groups to come
together to address some of the disparaging things that
occurred in Alaska, such as suicide prevention, wage
disparities, and other. She understood that other
commissions only had one staff member; however, it would
require a significant amount of work for the commission to
catch up. She pointed out that the legislature could always
reduce the number further in the future if needed. She
understood that the fiscal note was a point of contention.
She discussed that the sponsor would still like to see
three positions. She asked for the committee to consider
keeping the positions at two and to review the commission
the following year to ensure that it held value for the
people in Alaska. She stressed the importance of creating
equity in the conversation about how women were on the
victim side of perpetration in the state.
Representative Gara asked whether the governor's office
could report to the legislature the following year to relay
whether the two positions were sufficient or necessary. Mr.
Bell responded in the affirmative. He detailed that the
commission would be an independent organization that was
administratively under the Office of the Governor; the
office would track how the commission evolved and would
come to the legislature with any funding suggestions going
forward.
Co-Chair Stoltze acknowledged Representative Neuman's
desire to reduce the staff.
Representative Doogan had not made the recommendation to
include two positions lightly. He could easily see why the
positions would be needed to do the job. He pointed out
that legislators had two or more staff during legislative
sessions and had no problem employing them year-round. He
did not believe that the committee should arbitrarily
change the entire arrangement in the absence of any
compelling information. The goal was to have people in the
state's employ concentrating on the issues.
10:55:19 AM
Representative Neuman understood the issue. He noted that
his concern was related to future years when government
would need to be reduced. He opined that it was easier to
create public employee positions than it was to eliminate
them. He discussed a personal story. He WITHDREW his
OBJECTION. Co-Chair Stoltze noted the concern.
Co-Chair Thomas pointed out that there had been significant
savings by reducing the fiscal note to two positions.
Representative Joule told a related personal story.
Representative Edgmon asked whether ranges 22 and 15 would
be a better spread in terms of attracting qualified
applicants for the executive director position. He wondered
whether an administrative services director position was a
range 22. Mr. Bell replied that an administrative services
director position was a range 27.
Representative Edgmon surmised that a range 22 would be
more attractive to an executive director compared to a
range 20.
Representative Gara agreed that the director was a high
level person and the support staff would assist with
meetings. He believed ranges 22 and 15 would better serve
the commission than ranges 20 and 17.
Representative Guttenberg stressed that the position was
not only a logistics position. He believed that the
commission would be made up of dynamic members who would
provide direction to the staff. He believed the director
position deserved a higher range.
Representative Edgmon MOVED to change the two positions to
a range 22 and range 15. There being NO OBJECTION, it was
so ordered.
11:01:00 AM
Vice-chair Fairclough MOVED to report CSSB 53(FIN) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 53(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one previously published amended
fiscal impact note: FN3 (GOV).
SENATOR BETTYE DAVIS, SPONSOR, appreciated the work of the
committee. She pointed out that there were many
possibilities for work to be done voluntarily and potential
grants to obtain. She believed that in the long-term the
commission would save the state money and that the
legislature would be proud that a statewide commission for
women had been reestablished. She thanked the committee for
its support.
11:01:51 AM
AT EASE
11:02:22 AM
RECONVENED
CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 25(FIN)
"An Act establishing the sustainable energy
transmission and supply development program in the
Alaska Industrial Development and Export Authority;
relating to the interest rates of the Alaska
Industrial Development and Export Authority; and
relating to taxes paid on interests in property owned
by the Alaska Industrial Development and Export
Authority and to the local contribution for public
education funding related to that property."
MICHAEL PAWLOWSKI, STAFF, SENATOR LESIL MCGUIRE, addressed
the legislation. He pointed to numerous letters of support
included in members' packets (copy on file). He explained
that the bill represented a piece of the legislature's
ongoing work related to energy infrastructure. In 2010 the
sponsor had identified a major gap in the need for
financing and access to capital. He discussed that the
legislature had done an excellent job of developing grant
programs and support for energy and infrastructure, but no
real mechanism existed to provide capital for projects to
move forward on their own.
Mr. Pawlowski walked the committee through the legislation.
Section 1 included the short title "the Alaska Sustainable
Strategy for Energy Transmission and Supply." Section 2
(pages 1 through 3) included conforming language that added
the word "energy" into the findings section that
established the Alaska Industrial Development and Export
Authority (AIDEA) within the state's public laws. Section 3
added conforming language related to AIDEA in the duties
section. He accentuated the importance of Section 4 that
established a separate fund within AIDEA and empowered the
fund to finance energy infrastructure projects with the
private sector. The sponsor did not want to displace
efforts of the private sector; therefore, Section 4
included amendments to AIDEA's existing loan participation
program adding qualified energy developments. The authority
could work with banks to provide credit backstops if
commercial lending institutions were interested in
financing energy projects.
Mr. Palowski moved to Section 6 (pages 5 through 7),
outlining that AIDEA was not allowed to give away money and
was required to earn a rate of interest that exceeded the
cost of its funds when making loans. The sections required
AIDEA to achieve an interest rate similar to existing
requirements; it had to exceed the minimum cost of funds.
Section 11 (page 7) allowed AIDEA to provide an incentive
interest rebate of up to 1 percent under certain
circumstances; page 7, line 24 allowed the rebate for
renewable energy and rural and economic development.
Section 12 created the fund separately within AIDEA in
order to protect the authority's existing credit rating on
its existing programs. The authority's powers were expanded
on page 9 in two material ways: (1) the ability to defer
principal payments or capitalize interest on qualified
energy developments, which would help to drive project
economics down and (2) the ability to guarantee loans and
bonds to extend out for hydroelectric development to 50
years.
Mr. Palowski addressed that page 10, lines 9 through 12
included a limitation specifying that AIDEA could only
finance one-third of a project's costs without additional
approval by the legislature. He detailed that the fund was
intended to be co-invested capital along with the private
sector; the goal was not to have AIDEA go "whole into
projects." The goal was to leverage investment that
utilities, mineral development companies, and developers
were making around the state. The fund was limited to
qualified energy developments (defined on page 10, line 23)
including transmission, generation, conservation, storage,
or distribution of heat or electricity, natural gas (except
large pipelines in Cook Inlet or the North Slope), and
refined petroleum products.
11:08:32 AM
Vice-chair Fairclough MOVED the bill before the committee.
Representative Neuman asked for a definition of the term
"rural development" included on page 7, line 23. He had
many areas of his district that were without electricity
transmission lines. Mr. Pawlowski deferred the question to
the department.
MARK DAVIS, DEPUTY DIRECTOR, ALASKA INDUSTRIAL DEVELOPMENT
AND EXPORT AUTHORITY, DEPARTMENT OF COMMERCE, COMMUNITY AND
ECONOMIC DEVELOPMENT, replied that AIDEA was in the process
of adopting regulations underneath an existing rural
provision. The agency intended to adopt a broad definition
that would encompass small communities; the distinction
made between "roadless" and "road" was not effective from
an economic standpoint. He expounded that AIDEA looked at
economic data on how each community was doing, the amount
of capital in each community, and census data on poverty
levels.
Representative Neuman explained that Houston, Alaska only
had 1,500 residents and that there were areas three blocks
from his house that were without electricity. He asked
whether the bill would allow the Matanuska Electric
Association (MEA) to get loans to expand the community's
current system through AIDEA loans. He stressed that
"rural" did not just encompass off the road-system areas.
Mr. Davis responded that the bill would allow for MEA to
work with AIDEA to expand the area's grid.
Representative Edgmon discussed a bill that had passed the
prior day related to new tax credits. He wondered whether
an applicant would be able to utilize both programs
established in the bills. Mr. Davis responded in the
affirmative.
Co-Chair Thomas CLOSED public testimony.
Representative Wilson asked whether the liquid natural gas
plant on the North Slope would qualify under the program.
Mr. Pawlowski pointed to language on page 10, lines 27
through 29 that specifically excluded a gas pipeline
project for the transportation of gas from the North Slope
or Cook Inlet to market; however, liquefaction
regasification distribution was included; the bill had been
designed specifically to work with the project.
11:12:47 AM
Representative Doogan discussed that AIDEA had a history of
projects going bankrupt. He wondered how AIDEA's policies
had changed in order to prevent the issue from happening.
Mr. Davis replied that AIDEA had issued a strategic plan in
2008 in which underwriting standards had been changed. The
bill was consistent with board policy that allowed the
authority to only invest up to one-third without
legislative approval. The change had been implemented to
reduce risk and to work with partners who did their due
diligence. He relayed that the agency would probably aim
for a 1.25 to 1.34 debt service ratio on a revolving fund
such as the one included in the legislation and would
establish the guideline in regulation.
Vice-chair Fairclough directed attention to the two fiscal
notes. The first fiscal note was fund capitalization with
an allocation to the Sustainable Energy Transmission and
Supply Development Fund in the amount of $1.25 million. The
second fiscal note had zero fiscal impact and affected the
Department of Commerce, Community and Economic Development
related to AIDEA.
Co-Chair Thomas asked whether there would be a regional
spread required to prevent all of the money from going to
one region. Mr. Davis responded that the AIDEA board wanted
to achieve a geographic disbursement of investment and
included related requirements. The board was provided with
statistics about how each loan in the Loan Participation
Program affected each region; the same thing would be done
for the program under the bill.
Representative Neuman asked why the language on page 10,
line 29 was limited to the North Slope and Cook Inlet. He
wondered why language did not just read "within Alaska." He
detailed that there was a significant amount of industry
including Native corporations looking at non-conventional
gas plays and exploration within the state that could
probably take advantage of the legislation.
Mr. Pawlowski clarified that the North Slope language was
an exclusion. He detailed that the other areas be
acceptable under the bill including the Nenana Basin
Pipeline and other. The only items excluded under the bill
were related to specific pipeline projects from the North
Slope or Cook Inlet to market.
11:16:26 AM
Co-Chair Thomas noted that the operating budget conference
committee had closed out with the bill funding in its
fiscal notes. He explained that the fiscal note needed to
travel with the bill.
Vice-chair Fairclough MOVED to report HCS CSSSSB 25(L&C)
out of committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSSSB 25(L&C) was REPORTED out of committee with a "do
pass" recommendation and with one previously published zero
fiscal note: FN2 (CED); and one previously published fiscal
impact note: FN3 (SFIN/CED).
11:17:25 AM
AT EASE
11:22:55 AM
RECONVENED
CS FOR SENATE BILL NO. 119(L&C)
"An Act relating to athletic trainers."
11:23:02 AM
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute (CS) for CSSB 119(FIN), Work Draft 27-LS0732\U
(Kirsch, 4/15/12).
Co-Chair Stoltze OBJECTED for discussion.
JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, discussed
that the CS was very similar to a previous version the
committee had looked at. Sections 1 through 4 from the
original bill related to athletic training had been removed
from the bill. The CS included language related to high
school athletics and concussions. The original Section 7
had been included in new Sections 2 through 4 related to
people in alternative forms of education that would be
allowed to participate in collegiate sports in the area.
Vice-chair Fairclough asked whether there would be a title
change amendment. Mr. Michel replied that the words
"athletic trainers" were included because the term had been
inserted in Section 1, line 7.
Representative Gara spoke in favor of Section 2.
11:25:43 AM
REPRESENTATIVE DAN SADDLER supported the legislation.
Representative Neuman expressed frustration that because
his children were homeschooled they could not participate
in inner scholastic programs; he hoped the bill would allow
homeschooled students to participate in the programs. Mr.
Michel replied in the affirmative. He expounded that the
bill applied to all activities such as chess club, debate,
sports, and other.
Co-Chair Stoltze clarified that the legislation related to
the Alaska Scholastics Activities Association; it
encompassed debate, cheerleading, and a variety of academic
activities. He WITHDREW his OBJECTION to the adoption of
the CS. There being NO further OBJECTION, Work Draft 27-
LS0732\U was adopted.
Co-Chair Stoltze asked for the sponsor's staff to confirm
that the CS was acceptable.
CHRISTINE MARASIGAN, STAFF, SENATOR KEVIN MEYER, agreed
that the sponsor was fine with the removal of references
pertaining to athletic trainers.
Co-Chair Stoltze noted that the change had been done with
the acquiescence of athletic trainers. He clarified that
removal was preferable to the form that had been included
previously in the bill. Ms. Marasigan affirmed. She
elaborated that the office had consulted with the National
and Alaska Associations of Athletic Trainers; the prior
bill version had been found to be cumbersome and
overregulated and would have substantially increased fees
for athletic trainers.
Co-Chair Thomas CLOSED public testimony.
Representative Doogan noted that a bill of his had passed
that accomplished part of what the first section of the CS
would do. He believed the legislation matched the "world we
live in" and Alaska in particular. He expressed support for
the bill.
Vice-chair Fairclough wondered whether the bill was
available for cross-sponsorship. Co-Chair Stoltze asked
staff to look into the matter.
Vice-chair Fairclough pointed to the fiscal notes. The
first note had zero fiscal impact and affected the
Department of Administration, Office of Administrative
Hearings. The second fiscal note was from Department of
Commerce, Community and Economic Development, Division of
Corporations, Businesses, and Professional Licensing in the
amount of $38,800 for FY 13 and $1,800 for FY 14 through FY
18.
11:31:24 AM
Representative Neuman MOVED to report HCS CSSB 119(FIN) out
of committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 119(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal impact note: FN4 (CED); and one previously published
zero note: FN5 (ADM).
AT EASE
11:31:49 AM
11:32:59 AM
RECONVENED
CS FOR SENATE BILL NO. 136(FIN) am
"An Act providing a tax credit for employing a veteran
that may be taken against a liability for the tax on
corporation income; and providing for an effective
date."
11:33:05 AM
Vice-chair Fairclough MOVED to ADOPT proposed committee
substitute for CSSB 136(FIN)am, Work Draft 27-LS0983\U
(Bullock, 4/14/12).
Co-Chair Stoltze OBJECTED for discussion.
KENDRA KLOSTER, STAFF, SENATOR BILL WIELECHOWSKI, provided
a synopsis of the legislation. She explained that as of
June 2011, one million veterans were unemployed and the
jobless rate for post 9/11 was 13.3 percent. Young male
veterans between the ages of 18 to 24 were experiencing a
higher unemployment rate at 21.9 percent. She referred to
recent March 2012 data from a Syracuse University study
showing that young male veterans were at a 30 percent
unemployment rate. The bill aimed at helping unemployed
veterans to obtain employment upon their return from
military service. The legislation would provide a $2,000
income tax credit or a $3,000 credit for disabled veterans;
it stipulated that a veteran must work for at least 12
months for 1,560 hours or more (approximately 30 hours per
week). The bill also included a provision for seasonal
employment in the form of a $1,000 tax credit; to obtain
the seasonal credit a veteran would be required to work at
least 600 hours for 5 months.
Ms. Kloster pointed to a number of support letters from
small business owners and veterans' organizations including
Southeast Alaska Native Veterans, Vets Helping Vets,
Vietnam Veterans of America (copy on file).
11:35:04 AM
REPRESENTATIVE DAN SADDLER, CO-SPONSOR, communicated that
Section 1 authorized the Division of Motor Vehicles (DMV)
to designate a person's veteran status on a state issued
driver's license or ID card and would have an image of the
U.S. flag or other upon request. Section 2 would authorize
DMV to provide the names and addresses of people with a
veteran's designation to the Division of Veterans Affairs
upon approval of the individual; the opportunity would
provide veterans with another chance to receive important
health and other benefits. He stated that the bill provided
Alaskans with a way to carry reliable and convenient proof
of their veteran status and would help them to enjoy the
many benefits made available to them by a grateful state
and nation.
Co-Chair Stoltze remembered that Representative Costello
had been the responsible for a money saving flag in prior
legislation.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 27-LS0983\U was ADOPTED.
Representative Wilson asked whether the bill would present
a conflict for veterans who had served in the military at
different times; she wondered about potential
prioritization.
Co-Chair Thomas explained that the bill reflected a
veteran's caucus decision. The timeframe was limited to the
past 10 years in order to keep costs relatively low.
Co-Chair Thomas CLOSED public testimony.
Vice-chair Fairclough discussed the Department of Revenue
fiscal note; the changes in revenue were indeterminate
because the number of employers or employees who would
qualify for the tax credit was unknown.
Co-Chair Stoltze referenced a fiscal note from the
Department of Administration.
Representative Neuman asked how businesses were informed of
the credit. Ms. Kloster replied that the Department of
Military and Veterans Affairs was very active in working to
ensure that businesses were made aware of veterans'
benefits. She believed that the provision included by
Representative Saddler would help with veteran outreach
around the state.
Co-Chair Thomas added that statewide veterans'
organizations monitored legislation closely.
Co-Chair Stoltze believed that there was an acute awareness
in the business community (including the hospitality
industry and other) related to veterans.
11:40:16 AM
Vice-chair Fairclough discussed an additional fiscal note
from Department of Administration in the amount of $32,900
in FY 13 and $17,500 in FY 14. The total change in revenue
in FY 13 would be $51,300 and $102,700 in FY 14. [Note: The
Department of Administration fiscal note referenced here
did not report out of committee with the bill].
Representative Wilson MOVED to report HCS CSSB 136(FIN) out
of committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HCS CSSB 136(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new indeterminate fiscal
note from the Department of Revenue.
11:41:22 AM
RECESSED
ADJOURNMENT
The meeting was not resumed.