SB 136-VETERANS DRIVERS LICENSE, TAX CREDIT  4:51:24 PM CHAIR OLSON announced that the final order of business would be 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." 4:51:40 PM SENATOR BILL WIELECHOWSKI, Alaska State Legislature, introduced himself. He thanked members for taking time to hear SB 136. He introduced his staff. 4:52:10 PM KENDRA KLOSTER, Staff, Senator Bill Wielechowski, Alaska State Legislature, on behalf of the sponsor, Senator Bill Wielechowski, stated that as of June 2011, one million veterans were unemployed and the jobless rate for post 9/11 veterans was at 13.3 percent. She reported that young male veterans ages 18- 24 have an unemployment rate of 21.9 percent. She pointed out that some Google searches are showing unemployment figures closer to 30 percent unemployment for veterans. She offered to confirm the figures with the U.S. Department of Defense. 4:53:30 PM MS. KLOSTER related that the sponsor held a town hall meeting and veterans expressed concern about finding jobs. This bill would create $2,000 corporate income tax credit for a business who hires a veteran and a $3,000 credit for hiring a disabled veteran. The veteran must be employed for 12 months, or 1,560 hours, which is about 30-hours a week. This bill would also set up a $1,000 tax credit for seasonal employment, which was a provision requested by the hotel industry. She reported a number of organizations support this bill, including Vets Helping Vets, Vietnam Veterans of America, and numerous businesses. 4:54:32 PM REPRESENTATIVE JOHNSON asked whether this is per employee. MS. KLOSTER answered yes, the tax credit is per veteran hired. She explained that for seasonal employment it is limited to the first season. 4:55:07 PM REPRESENTATIVE JOHNSON asked whether the credit for fulltime is per year or one time. MS. KLOSTER agreed it is a one-time tax credit. 4:55:41 PM REPRESENTATIVE SADDLER referred to page 2, line 29, to the requirement that the veteran be honorably discharged. He asked whether the sponsor has considered extending this to general discharge. MS. KLOSTER answered that the sponsor is specific that the discharge should be an honorable discharge. She indicated the sponsor has worked with other senators in the body who have served in the military before deciding on the honorable discharge. REPRESENTATIVE SADDLER related some state benefits are extended to those honorably discharged and those who received general discharge, as well. He characterized this bill as having a high threshold. 4:56:32 PM CHAIR OLSON inquired as to whether there is a mechanism that prevents stacking of veterans, such as hiring a veteran then firing him/her and hiring another veteran. MS. KLOSTER pointed out the bill requires hiring the veteran for at least 12 months prior to tax credit, per veteran, and the veteran must work a minimum of 1,560 hours. 4:57:15 PM REPRESENTATIVE SADDLER commented that hiring veterans can be good business sense. He strongly suspected that the business will not only obtain the credit, but will double their money due to productivity. He offered his belief that these men and women work hard and have a good work ethic. 4:57:47 PM ALBERT HOWARD, Mayor, City of Angoon, stated that he is a veteran and approximately 20 percent of the 480 people in Angoon are veterans. He expressed appreciation for the work the men and women have given. He said that in many ways the state says welcome home and SB 136 does just that since it ensures that community, state, and nation shows appreciation for the military personnel who have protected our country. Most veterans do not want handouts, but giving them a better than equal opportunity will allow them to continue the American dream that men and women joining the armed forces believe will be there when they come home. He offered his belief that a person joining the military gives up some rights while serving in the armed forces. He offered his belief that SB 136 is positive on their behalf. He offered his support for SB 136. He encouraged members to keep in mind that our men and women are in harm's way and trust that the legislature is doing what is right for all. He suggested that supporting SB 136 will protect and maintain the same or better quality of life for veterans that have given time, sweat, blood, and at times, tears with their "get it done attitude" so everyone can continue the day-to-day business. CHAIR OLSON remarked that a third of the committee qualify as veterans. 5:02:02 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on SB 136. 5:02:28 PM REPRESENTATIVE JOHNSON asked whether anything in the bill limits a corporation in Alaska from employing a veteran outside the state. MS. KLOSTER referred to page 1, line 6, which specifies veterans must be hired and working in the state. REPRESENTATIVE JOHNSON pointed out that being hired in Alaska does not necessarily mean they are working in Alaska. 5:03:00 PM CHAIR OLSON suggested they might be hired in Alaska, but are working in North Dakota. MS. KLOSTER explained she held a conversation with the bill drafter to ensure the language meant the veteran would be hired and working in the state. She offered to confirm this with the bill drafter and get back to the committee. 5:03:58 PM REPRESENTATIVE JOHNSON related his understanding that a person would be hired in Alaska, but he was unsure that the veteran would need to work in Alaska. He further asked whether the business would be eligible for credit if the business hired a person who is not an Alaska resident who comes to Alaska and is hired. MS. KLOSTER responded that the distinction does not require the veteran to be an Alaska veteran due to some constitutional issues. Some of the language was revised to reflect "in the state" with the intention that the veteran would be in Alaska and would be working in Alaska; however, constitutional issues arose with language that specified the person had to be an Alaska veteran or to use that type of terminology. 5:05:11 PM REPRESENTATIVE JOHNSON asserted that he would love to go to court defending Alaskans hiring Alaskans to fight for the rights of Alaskans. He welcomed the challenge. MS. KLOSTER, in response to Chair Olson, stated that she did not have any legal documents, but offered to address it. She remarked that Senator Wielechowski is very dedicated and his intention is also to ensure Alaska veterans are hired. He is committed to Alaskans getting the jobs. 5:06:44 PM REPRESENTATIVE SADDLER related his understanding the Alaska Office of Veterans Affairs wants to be sure veterans in Alaska are signed up to obtain the U.S. Department of Veterans Affairs (VA) benefits. He recalled that veterans have been offered the opportunity to register. He asked whether the sponsor would be amenable to an amendment to require employers who receive this credit must have their employees who are veterans apply for VA benefits. He suggested such an amendment would help the employer by possibly reducing medical costs and help the veterans maintain closer contact with the VA to obtain information. MS. KLOSTER offered to discuss this with Senator Wielechowski. 5:07:54 PM MS. KLOSTER reported that Mr. Bullock, the bill drafter, indicates that the employer receives the credit when the employer hires a military veteran in Alaska. REPRESENTATIVE HOLMES referred to page 1, lines 5-6, which reads, "a taxpayer that hires a veteran and employs the veteran in the state..."; which she interpreted to mean the veteran must be hired in the state and working in the state. She interpreted that to mean the bill drafter wanted it to be as clear as possible that the military veteran must be working in Alaska. 5:09:12 PM REPRESENTATIVE THOMPSON referred to page 1, line 10, which requires the veteran be unemployed in Alaska for more than four weeks. He suggested that if the veteran has been unemployed in Alaska for more than four weeks implies residency since Alaska has a residency requirement of 30 days. REPRESENTATIVE MILLER was unsure whether the language fixes the problem. REPRESENTATIVE SADDLER suggested one solution to address residency. He referred to page 2, line 5 to insert, "for a veteran employed in Alaska for 1,560 hours ... and on line 9, to add, "for a veteran employed in Alaska for 600 hours ... which would ensure the veteran would be hired and working in Alaska. 5:10:52 PM MS. KLOSTER concluded by sharing a soldier's statement that conveyed a conversation he had held with a governor. She read, "He didn't say he was the most worried about facing the enemy in the night. He looked at me in the eyes and said, 'Governor, I'm worried about whether there will be a job for me when I get home.'" She said she thought that was really telling and the reason the legislature is doing a variety of things to support Alaska's veterans when they are coming home. She appreciated the committee hearing the bill today. [SB 136 was held over.]