00 CS FOR SENATE BILL NO. 21(FIN) 01 "An Act relating to the interest rate applicable to certain amounts due for fees, taxes, 02 and payments made and property delivered to the Department of Revenue; providing a 03 tax credit against the corporation income tax for qualified oil and gas service industry 04 expenditures; relating to the oil and gas production tax rate; relating to gas used in the 05 state; relating to monthly installment payments of the oil and gas production tax; 06 relating to oil and gas production tax credits for certain losses and expenditures; 07 relating to oil and gas production tax credit certificates; relating to nontransferable tax 08 credits based on production; relating to the oil and gas tax credit fund; relating to 09 annual statements by producers and explorers; establishing the Oil and Gas 10 Competitiveness Review Board; making conforming amendments; and providing for an 11 effective date." 12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 01  * Section 1. AS 05.15.095(c) is amended to read: 02 (c) A delinquent fee bears interest at the rate set by AS 43.05.225(2) 03 [AS 43.05.225]. 04  * Sec. 2. AS 29.60.850(b) is amended to read: 05 (b) Each fiscal year, the legislature may appropriate an amount to the 06 community revenue sharing fund [AN AMOUNT EQUAL TO 20 PERCENT OF 07 THE MONEY RECEIVED BY THE STATE DURING THE PREVIOUS 08 CALENDAR YEAR UNDER AS 43.55.011(g)]. The amount may not exceed 09 (1) $60,000,000; or 10 (2) the amount that, when added to the fund balance on June 30 of the 11 previous fiscal year, equals $180,000,000. 12  * Sec. 3. AS 34.45.470(a) is amended to read: 13 (a) A person who fails to pay or deliver property within the time prescribed by 14 this chapter may be required to pay to the department interest at the annual rate 15 calculated under AS 43.05.225(2) [AS 43.05.225] on the property or the value of it 16 from the date the property should have been paid or delivered. 17  * Sec. 4. AS 43.05.225 is amended to read: 18 Sec. 43.05.225. Interest. Unless otherwise provided, 19 (1) when a tax levied in this title becomes delinquent, it bears interest 20 in a calendar quarter at the rate of three [FIVE] percentage points above the annual 21 rate charged member banks for advances by the 12th Federal Reserve District as of the 22 first day of that calendar quarter [, OR AT THE ANNUAL RATE OF 11 PERCENT, 23 WHICHEVER IS GREATER,] compounded quarterly as of the last day of that 24 quarter; 25 (2) the interest rate is 12 percent a year for 26 (A) delinquent fees payable under AS 05.15.095(c); and 27 (B) unclaimed property that is not timely paid or delivered, as 28 allowed by AS 34.45.470(a). 29  * Sec. 5. AS 43.20.046(i) is amended to read: 30 (i) The issuance of a refund under this section does not limit the department's 31 ability to later audit or adjust the claim if the department determines, as a result of the 01 audit, that the person that claimed the credit was not entitled to the amount of the 02 credit. The tax liability of the person receiving the credit under this chapter is 03 increased by the amount of the credit that exceeds that to which the person was 04 entitled. If the tax liability is increased under this subsection, the increase bears 05 interest under AS 43.05.225(1) [AS 43.05.225] from the date the refund was issued. 06  * Sec. 6. AS 43.20.047(i) is amended to read: 07 (i) The issuance of a refund under this section does not limit the department's 08 ability to later audit or adjust the claim if the department determines, as a result of the 09 audit, that the person that claimed the credit was not entitled to the amount of the 10 credit. The tax liability of the person receiving the credit under this section is 11 increased by the amount of the credit that exceeds that to which the person was 12 entitled. If the tax liability is increased under this subsection, the increase bears 13 interest at the rate set by AS 43.05.225(1) [AS 43.05.225] from the date the refund 14 was issued. 15  * Sec. 7. AS 43.20 is amended by adding a new section to read: 16 Sec. 43.20.049. Qualified oil and gas industry service expenditure credit. 17 (a) For a tax year beginning after the effective date of this section, a taxpayer may 18 apply a credit against the tax due under this chapter for a qualified oil and gas service 19 industry expenditure incurred in the state. The total amount of credit a taxpayer may 20 receive in a tax year may not exceed the lesser of 10 percent of qualified oil and gas 21 industry service expenditures incurred in the state during the tax year or $10,000,000. 22 (b) A taxpayer may not apply more than $10,000,000 in tax credits under this 23 section in a tax year. A tax credit or portion of a tax credit under this section may not 24 be used to reduce the taxpayer's tax liability under this chapter below zero. Any 25 unused tax credit or portion of a tax credit under this section may be applied in later 26 tax years, except that any unused tax credit or portion of a tax credit may not be 27 carried forward for more than five tax years immediately following the tax year in 28 which the qualified oil and gas service industry expenditures were incurred. 29 (c) An expenditure that is the basis of the credit under this section may not be 30 the basis for 31 (1) a deduction against the tax levied under this chapter; 01 (2) a credit or deduction under another provision of this title; or 02 (3) any federal credit claimed under this title. 03 (d) Notwithstanding any contrary provision of AS 40.25.100(a) or 04 AS 43.05.230(e), for a year that three or more taxpayers claim a tax credit under this 05 section, the department may publish the aggregated amount of tax credits claimed 06 under this section and a description of the qualified oil and gas service industry 07 expenditures that were the basis for a tax credit under this section. 08 (e) In this section, 09 (1) "manufacture" means to perform substantial industrial operations in 10 the state to transform raw material into tangible personal property with a useful life of 11 three years or more for use in the exploration, development, or production of oil or gas 12 deposits; 13 (2) "modification" means an adjustment, equipping, or other alteration 14 to existing tangible personal property that has a useful life of three years or more and 15 is for use in the exploration, development, or production of oil or gas deposits; 16 "modification" does not include minor product alterations or inventory activities; 17 (3) "qualified oil and gas service industry expenditure" means an 18 expenditure directly attributable to an in-state manufacture or in-state modification of 19 tangible personal property used in the exploration, development, or production of oil 20 or gas deposits, but does not include components or equipment used for or in the 21 process of that manufacturing or modification. 22  * Sec. 8. AS 43.50.570 is amended to read: 23 Sec. 43.50.570. Interest. A licensee who fails to pay an amount due for the 24 purchase of stamps within the time required 25 (1) is considered to have failed to pay the cigarette taxes due under this 26 chapter; and 27 (2) shall pay interest at the rate established under AS 43.05.225(1) 28 [AS 43.05.225] from the date on which the amount became due until the date of 29 payment. 30  * Sec. 9. AS 43.55.011(e) is amended to read: 31 (e) There is levied on the producer of oil or gas a tax for all oil and gas 01 produced each calendar year from each lease or property in the state, less any oil and 02 gas the ownership or right to which is exempt from taxation or constitutes a 03 landowner's royalty interest. Except as otherwise provided under (f), (j), (k), (o), and 04 (p) of this section, the tax is equal to the annual production tax value of the taxable  05 oil and gas as calculated under AS 43.55.160(a) produced during a calendar year 06 [THE SUM OF] 07 (1) before January 1, 2017, [THE ANNUAL PRODUCTION TAX 08 VALUE OF THE TAXABLE OIL AND GAS AS CALCULATED UNDER 09 AS 43.55.160(a)(1)] multiplied by 35 [25] percent; and 10 (2) after December 31, 2016, multiplied by 33 percent [THE SUM, 11 OVER ALL MONTHS OF THE CALENDAR YEAR, OF THE TAX AMOUNTS 12 DETERMINED UNDER (g) OF THIS SECTION]. 13  * Sec. 10. AS 43.55.011(o) is amended to read: 14 (o) Notwithstanding other provisions of this section, for a calendar year before 15 2022, the tax levied under (e) of this section for each 1,000 cubic feet of gas for gas 16 produced from a lease or property outside the Cook Inlet sedimentary basin and used 17 in the state, other than gas subject to (p) of this section, may not exceed the amount 18 of tax for each 1,000 cubic feet of gas that is determined under (j)(2) of this section. 19  * Sec. 11. AS 43.55.020(a) is amended to read: 20 (a) For a calendar year, a producer subject to tax under AS 43.55.011 21 [AS 43.55.011(e) - (i) OR (p)] shall pay the tax as follows: 22 (1) an installment payment of the estimated tax levied by 23 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 24 month of the calendar year on the last day of the following month; except as otherwise 25 provided under (2) of this subsection, the amount of the installment payment is the 26 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 27 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 28 of the installment payment may not be less than zero: 29 (A) for oil and gas not subject to AS 43.55.011(o) or (p)  30 produced from leases or properties in the state outside the Cook Inlet 31 sedimentary basin [BUT NOT SUBJECT TO AS 43.55.011(o) OR (p)], other 01 than leases or properties subject to AS 43.55.011(f), the greater of 02 (i) zero; or 03 (ii) the sum of 25 percent and the tax rate calculated for 04 the month under AS 43.55.011(g) multiplied by the remainder obtained 05 by subtracting 1/12 of the producer's adjusted lease expenditures for the 06 calendar year of production under AS 43.55.165 and 43.55.170 that are 07 deductible for the oil and gas [LEASES OR PROPERTIES] under 08 AS 43.55.160 from the gross value at the point of production of the oil 09 and gas produced from the leases or properties during the month for 10 which the installment payment is calculated; 11 (B) for oil and gas produced from leases or properties subject 12 to AS 43.55.011(f), the greatest of 13 (i) zero; 14 (ii) zero percent, one percent, two percent, three 15 percent, or four percent, as applicable, of the gross value at the point of 16 production of the oil and gas produced from the [ALL] leases or 17 properties during the month for which the installment payment is 18 calculated; or 19 (iii) the sum of 25 percent and the tax rate calculated for 20 the month under AS 43.55.011(g) multiplied by the remainder obtained 21 by subtracting 1/12 of the producer's adjusted lease expenditures for the 22 calendar year of production under AS 43.55.165 and 43.55.170 that are 23 deductible for the oil and gas [THOSE LEASES OR PROPERTIES] 24 under AS 43.55.160 from the gross value at the point of production of 25 the oil and gas produced from those leases or properties during the 26 month for which the installment payment is calculated; 27 (C) for oil or [AND] gas [PRODUCED FROM EACH LEASE 28 OR PROPERTY] subject to AS 43.55.011(j), (k), or (o) [, OR (p)], for each  29 lease or property, the greater of 30 (i) zero; or 31 (ii) the sum of 25 percent and the tax rate calculated for 01 the month under AS 43.55.011(g) multiplied by the remainder obtained 02 by subtracting 1/12 of the producer's adjusted lease expenditures for the 03 calendar year of production under AS 43.55.165 and 43.55.170 that are 04 deductible under AS 43.55.160 for the oil or gas, respectively, 05 produced from the lease or property from the gross value at the point of 06 production of the oil or gas, respectively, produced from the lease or 07 property during the month for which the installment payment is 08 calculated; 09 (D) for oil and gas subject to AS 43.55.011(p), the lesser of  10 (i) the sum of 25 percent and the tax rate calculated  11 for the month under AS 43.55.011(g) multiplied by the remainder  12 obtained by subtracting 1/12 of the producer's adjusted lease  13 expenditures for the calendar year of production under  14 AS 43.55.165 and 43.55.170 that are deductible for the oil and gas  15 under AS 43.55.160 from the gross value at the point of production  16 of the oil and gas produced from the leases or properties during the  17 month for which the installment payment is calculated, but not less  18 than zero; or  19 (ii) four percent of the gross value at the point of  20 production of the oil and gas produced from the leases or  21 properties during the month, but not less than zero;  22 (2) an amount calculated under (1)(C) of this subsection for oil or gas 23 [PRODUCED FROM A LEASE OR PROPERTY 24 (A)] subject to AS 43.55.011(j), (k), or (o) may not exceed the 25 product obtained by carrying out the calculation set out in AS 43.55.011(j)(1) 26 or (2) or 43.55.011(o), as applicable, for gas or set out in AS 43.55.011(k)(1) 27 or (2), as applicable, for oil, but substituting in AS 43.55.011(j)(1)(A) or (2)(A) 28 or 43.55.011(o), as applicable, the amount of taxable gas produced during the 29 month for the amount of taxable gas produced during the calendar year and 30 substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the amount of 31 taxable oil produced during the month for the amount of taxable oil produced 01 during the calendar year; 02 [(B) SUBJECT TO AS 43.55.011(p) MAY NOT EXCEED 03 FOUR PERCENT OF THE GROSS VALUE AT THE POINT OF 04 PRODUCTION OF THE OIL OR GAS;] 05 (3) an installment payment of the estimated tax levied by 06 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 07 on the last day of the following month; the amount of the installment payment is the 08 sum of 09 (A) the applicable tax rate for oil provided under 10 AS 43.55.011(i), multiplied by the gross value at the point of production of the 11 oil taxable under AS 43.55.011(i) and produced from the lease or property 12 during the month; and 13 (B) the applicable tax rate for gas provided under 14 AS 43.55.011(i), multiplied by the gross value at the point of production of the 15 gas taxable under AS 43.55.011(i) and produced from the lease or property 16 during the month; 17 (4) any amount of tax levied by AS 43.55.011 [AS 43.55.011(e) OR 18 (i)], net of any credits applied as allowed by law, that exceeds the total of the amounts 19 due as installment payments of estimated tax is due on March 31 of the year following 20 the calendar year of production. 21  * Sec. 12. AS 43.55.020(a), as amended by sec. 11 of this Act, is amended to read:  22 (a) For a calendar year, a producer subject to tax under AS 43.55.011 shall pay 23 the tax as follows: 24 (1) an installment payment of the estimated tax levied by 25 AS 43.55.011(e), net of any tax credits applied as allowed by law, is due for each 26 month of the calendar year on the last day of the following month; except as otherwise 27 provided under (2) of this subsection, the amount of the installment payment is the 28 sum of the following amounts, less 1/12 of the tax credits that are allowed by law to be 29 applied against the tax levied by AS 43.55.011(e) for the calendar year, but the amount 30 of the installment payment may not be less than zero: 31 (A) for oil and gas not subject to AS 43.55.011(o) or (p)  01 produced from leases or properties in the state outside the Cook Inlet 02 sedimentary basin, other than leases or properties subject to AS 43.55.011(f), 03 the greater of 04 (i) zero; or 05 (ii) the applicable tax rate in AS 43.55.011(e) [THE 06 SUM OF 25 PERCENT AND THE TAX RATE CALCULATED FOR 07 THE MONTH UNDER AS 43.55.011(g] multiplied by the remainder 08 obtained by subtracting 1/12 of the producer's adjusted lease 09 expenditures for the calendar year of production under AS 43.55.165 10 and 43.55.170 that are deductible for the oil and gas under 11 AS 43.55.160 from the gross value at the point of production of the oil 12 and gas produced from the leases or properties during the month for 13 which the installment payment is calculated; 14 (B) for oil and gas produced from leases or properties subject 15 to AS 43.55.011(f), the greatest of 16 (i) zero; 17 (ii) zero percent, one percent, two percent, three 18 percent, or four percent, as applicable, of the gross value at the point of 19 production of the oil and gas produced from the leases or properties 20 during the month for which the installment payment is calculated; or 21 (iii) the applicable tax rate in AS 43.55.011(e) [THE 22 SUM OF 25 PERCENT AND THE TAX RATE CALCULATED FOR 23 THE MONTH UNDER AS 43.55.011(g)] multiplied by the remainder 24 obtained by subtracting 1/12 of the producer's adjusted lease 25 expenditures for the calendar year of production under AS 43.55.165 26 and 43.55.170 that are deductible for the oil and gas under 27 AS 43.55.160 from the gross value at the point of production of the oil 28 and gas produced from those leases or properties during the month for 29 which the installment payment is calculated, except that, for the  30 purposes of this calculation, a 20 percent exclusion from the gross  31 value at the point of production may apply for oil and gas subject  01 to AS 43.55.160(f); 02 (C) for oil or gas subject to AS 43.55.011(j), (k), or (o), for 03 each lease or property, the greater of 04 (i) zero; or 05 (ii) the applicable tax rate in AS 43.55.011(e) [THE 06 SUM OF 25 PERCENT AND THE TAX RATE CALCULATED FOR 07 THE MONTH UNDER AS 43.55.011(g)] multiplied by the remainder 08 obtained by subtracting 1/12 of the producer's adjusted lease 09 expenditures for the calendar year of production under AS 43.55.165 10 and 43.55.170 that are deductible under AS 43.55.160 for the oil or gas, 11 respectively, produced from the lease or property from the gross value 12 at the point of production of the oil or gas, respectively, produced from 13 the lease or property during the month for which the installment 14 payment is calculated; 15 (D) for oil and gas subject to AS 43.55.011(p), the lesser of 16 (i) the applicable tax rate in AS 43.55.011(e) [THE 17 SUM OF 25 PERCENT AND THE TAX RATE CALCULATED FOR 18 THE MONTH UNDER AS 43.55.011(g)] multiplied by the remainder 19 obtained by subtracting 1/12 of the producer's adjusted lease 20 expenditures for the calendar year of production under AS 43.55.165 21 and 43.55.170 that are deductible for the oil and gas under 22 AS 43.55.160 from the gross value at the point of production of the oil 23 and gas produced from the leases or properties during the month for 24 which the installment payment is calculated, but not less than zero; or 25 (ii) four percent of the gross value at the point of 26 production of the oil and gas produced from the leases or properties 27 during the month, but not less than zero; 28 (2) an amount calculated under (1)(C) of this subsection for oil or gas 29 subject to AS 43.55.011(j), (k), or (o) may not exceed the product obtained by 30 carrying out the calculation set out in AS 43.55.011(j)(1) or (2) or 43.55.011(o), as 31 applicable, for gas or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil, but 01 substituting in AS 43.55.011(j)(1)(A) or (2)(A) or 43.55.011(o), as applicable, the 02 amount of taxable gas produced during the month for the amount of taxable gas 03 produced during the calendar year and substituting in AS 43.55.011(k)(1)(A) or 04 (2)(A), as applicable, the amount of taxable oil produced during the month for the 05 amount of taxable oil produced during the calendar year; 06 (3) an installment payment of the estimated tax levied by 07 AS 43.55.011(i) for each lease or property is due for each month of the calendar year 08 on the last day of the following month; the amount of the installment payment is the 09 sum of 10 (A) the applicable tax rate for oil provided under 11 AS 43.55.011(i), multiplied by the gross value at the point of production of the 12 oil taxable under AS 43.55.011(i) and produced from the lease or property 13 during the month; and 14 (B) the applicable tax rate for gas provided under 15 AS 43.55.011(i), multiplied by the gross value at the point of production of the 16 gas taxable under AS 43.55.011(i) and produced from the lease or property 17 during the month; 18 (4) any amount of tax levied by AS 43.55.011, net of any credits 19 applied as allowed by law, that exceeds the total of the amounts due as installment 20 payments of estimated tax is due on March 31 of the year following the calendar year 21 of production. 22  * Sec. 13. AS 43.55.020(d) is amended to read: 23 (d) In making settlement with the royalty owner for oil and gas that is taxable 24 under AS 43.55.011, the producer may deduct the amount of the tax paid on taxable 25 royalty oil and gas, or may deduct taxable royalty oil or gas equivalent in value at the 26 time the tax becomes due to the amount of the tax paid. If the total deductions of 27 installment payments of estimated tax for a calendar year exceed the actual tax for that 28 calendar year, the producer shall, before April 1 of the following year, refund the 29 excess to the royalty owner. Unless otherwise agreed between the producer and the 30 royalty owner, the amount of the tax paid under AS 43.55.011(e) [AS 43.55.011(e) - 31 (g)] on taxable royalty oil and gas for a calendar year, other than oil and gas the 01 ownership or right to which constitutes a landowner's royalty interest, is considered to 02 be the gross value at the point of production of the taxable royalty oil and gas 03 produced during the calendar year multiplied by a figure that is a quotient, in which 04 (1) the numerator is the producer's total tax liability under 05 AS 43.55.011(e) [AS 43.55.011(e) - (g)] for the calendar year of production; and 06 (2) the denominator is the total gross value at the point of production 07 of the oil and gas taxable under AS 43.55.011(e) [AS 43.55.011(e) - (g)] produced by 08 the producer from all leases and properties in the state during the calendar year. 09  * Sec. 14. AS 43.55.020(g) is amended to read: 10 (g) Notwithstanding any contrary provision of AS 43.05.225, an unpaid 11 amount of an installment payment required under (a)(1) - (3) of this section that is not 12 paid when due bears interest (1) at the rate provided for an underpayment under 26 13 U.S.C. 6621 (Internal Revenue Code), as amended, compounded daily, from the date 14 the installment payment is due until March 31 following the calendar year of 15 production, and (2) as provided for a delinquent tax under AS 43.05.225(1) 16 [AS 43.05.225] after that March 31. Interest accrued under (1) of this subsection that 17 remains unpaid after that March 31 is treated as an addition to tax that bears interest 18 under (2) of this subsection. An unpaid amount of tax due under (a)(4) of this section 19 that is not paid when due bears interest as provided for a delinquent tax under 20 AS 43.05.225(1) [AS 43.05.225]. 21  * Sec. 15. AS 43.55.023(a) is amended to read: 22 (a) A producer or explorer may take a tax credit for a qualified capital 23 expenditure as follows: 24 (1) notwithstanding that a qualified capital expenditure may be a 25 deductible lease expenditure for purposes of calculating the production tax value of oil 26 and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under 27 AS 38.05.180(i), AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or 28 explorer that incurs a qualified capital expenditure may also elect to apply a tax credit 29 against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that 30 expenditure; [HOWEVER, NOT MORE THAN HALF OF THE TAX CREDIT MAY 31 BE APPLIED FOR A SINGLE CALENDAR YEAR;] 01 (2) a producer or explorer may take a credit for a qualified capital 02 expenditure incurred in connection with geological or geophysical exploration or in 03 connection with an exploration well only if the producer or explorer 04 (A) agrees, in writing, to the applicable provisions of 05 AS 43.55.025(f)(2); and 06 (B) submits to the Department of Natural Resources all data 07 that would be required to be submitted under AS 43.55.025(f)(2);  08 (3) a credit for a qualified capital expenditure incurred to explore  09 for, develop, or produce oil or gas deposits located north of 68 degrees North  10 latitude may be taken only if the expenditure is incurred before January 1, 2014. 11  * Sec. 16. AS 43.55.023(b) is amended to read: 12 (b) A producer or explorer may elect to take a tax credit in the amount of 25 13 percent of a carried-forward annual loss for lease expenditures incurred to explore  14 for, develop, or produce oil or gas deposits located south of 68 degrees North  15 latitude, and 35 percent of a carried-forward annual loss based on lease  16 expenditures incurred after December 31, 2013, to explore for, develop, or  17 produce oil or gas deposits located north of 68 degrees North latitude. A credit 18 under this subsection may be applied against a tax levied by AS 43.55.011(e). For 19 purposes of this subsection, a carried-forward annual loss is the amount of a producer's 20 or explorer's adjusted lease expenditures under AS 43.55.165 and 43.55.170 for a 21 previous calendar year that was not deductible in calculating production tax values for 22 that calendar year under AS 43.55.160. 23  * Sec. 17. AS 43.55.023(b), as amended by sec. 16 of this Act, is amended to read: 24 (b) A producer or explorer may elect to take a tax credit in the amount of 25 25 percent of a carried-forward annual loss for lease expenditures incurred to explore for, 26 develop, or produce oil or gas deposits located south of 68 degrees North latitude, and 27 33 [35] percent of a carried-forward annual loss based on lease expenditures incurred 28 after December 31, 2016 [2013], to explore for, develop, or produce oil or gas deposits 29 located north of 68 degrees North latitude. A credit under this subsection may be 30 applied against a tax levied by AS 43.55.011(e). For purposes of this subsection, a 31 carried-forward annual loss is the amount of a producer's or explorer's adjusted lease 01 expenditures under AS 43.55.165 and 43.55.170 for a previous calendar year that was 02 not deductible in calculating production tax values for that calendar year under 03 AS 43.55.160. 04  * Sec. 18. AS 43.55.023(d) is amended to read: 05 (d) Except as limited by (i) of this section, a person that is entitled to take a tax 06 credit under this section that wishes to transfer the unused credit to another person or 07 obtain a cash payment under AS 43.55.028 may apply to the department for a 08 transferable tax credit certificate [CERTIFICATES]. An application under this 09 subsection must be in a form prescribed by the department and must include 10 supporting information and documentation that the department reasonably requires. 11 The department shall grant or deny an application, or grant an application as to a lesser 12 amount than that claimed and deny it as to the excess, not later than 120 days after the 13 latest of (1) March 31 of the year following the calendar year in which the qualified 14 capital expenditure or carried-forward annual loss for which the credit is claimed was 15 incurred; (2) the date the statement required under AS 43.55.030(a) or (e) was filed for 16 the calendar year in which the qualified capital expenditure or carried-forward annual 17 loss for which the credit is claimed was incurred; or (3) the date the application was 18 received by the department. If, based on the information then available to it, the 19 department is reasonably satisfied that the applicant is entitled to a credit, the 20 department shall issue the applicant a [TWO] transferable tax credit certificate for 21 [CERTIFICATES, EACH FOR HALF OF] the amount of the credit. [THE CREDIT 22 SHOWN ON ONE OF THE TWO CERTIFICATES IS AVAILABLE FOR 23 IMMEDIATE USE. THE CREDIT SHOWN ON THE SECOND OF THE TWO 24 CERTIFICATES MAY NOT BE APPLIED AGAINST A TAX FOR A CALENDAR 25 YEAR EARLIER THAN THE CALENDAR YEAR FOLLOWING THE 26 CALENDAR YEAR IN WHICH THE CERTIFICATE IS ISSUED, AND THE 27 CERTIFICATE MUST CONTAIN A CONSPICUOUS STATEMENT TO THAT 28 EFFECT.] A certificate issued under this subsection does not expire. 29 * Sec. 19. AS 43.55.023(d), as amended by sec. 18 of this Act, is amended to read: 30 (d) A [EXCEPT AS LIMITED BY (i) OF THIS SECTION, A] person that is 31 entitled to take a tax credit under this section that wishes to transfer the unused credit 01 to another person or obtain a cash payment under AS 43.55.028 may apply to the 02 department for a transferable tax credit certificate. An application under this 03 subsection must be in a form prescribed by the department and must include 04 supporting information and documentation that the department reasonably requires. 05 The department shall grant or deny an application, or grant an application as to a lesser 06 amount than that claimed and deny it as to the excess, not later than 120 days after the 07 latest of (1) March 31 of the year following the calendar year in which the qualified 08 capital expenditure or carried-forward annual loss for which the credit is claimed was 09 incurred; (2) the date the statement required under AS 43.55.030(a) or (e) was filed for 10 the calendar year in which the qualified capital expenditure or carried-forward annual 11 loss for which the credit is claimed was incurred; or (3) the date the application was 12 received by the department. If, based on the information then available to it, the 13 department is reasonably satisfied that the applicant is entitled to a credit, the 14 department shall issue the applicant a transferable tax credit certificate for the amount 15 of the credit. A certificate issued under this subsection does not expire. 16  * Sec. 20. AS 43.55.023(g) is amended to read: 17 (g) The issuance of a transferable tax credit certificate under (d) of this  18 section or former (m) of this section or the purchase of a certificate under 19 AS 43.55.028 does not limit the department's ability to later audit a tax credit claim to 20 which the certificate relates or to adjust the claim if the department determines, as a 21 result of the audit, that the applicant was not entitled to the amount of the credit for 22 which the certificate was issued. The tax liability of the applicant under 23 AS 43.55.011(e) and 43.55.017 - 43.55.180 is increased by the amount of the credit 24 that exceeds that to which the applicant was entitled, or the applicant's available valid 25 outstanding credits applicable against the tax levied by AS 43.55.011(e) are reduced 26 by that amount. If the applicant's tax liability is increased under this subsection, the 27 increase bears interest under AS 43.05.225(1) [AS 43.05.225] from the date the 28 transferable tax credit certificate was issued. For purposes of this subsection, an 29 applicant that is an explorer is considered a producer subject to the tax levied by 30 AS 43.55.011(e). 31  * Sec. 21. AS 43.55.023(n) is amended to read: 01 (n) For the purposes of (l) [AND (m)] of this section, a well lease expenditure 02 incurred in the state south of 68 degrees North latitude is a lease expenditure that is 03 (1) directly related to an exploration well, a stratigraphic test well, a 04 producing well, or an injection well other than a disposal well, located in the state 05 south of 68 degrees North latitude, if the expenditure is a qualified capital expenditure 06 and an intangible drilling and development cost authorized under 26 U.S.C. (Internal 07 Revenue Code), as amended, and 26 C.F.R. 1.612-4, regardless of the elections made 08 under 26 U.S.C. 263(c); in this paragraph, an expenditure directly related to a well 09 includes an expenditure for well sidetracking, well deepening, well completion or 10 recompletion, or well workover, regardless of whether the well is or has been a 11 producing well; or 12 (2) an expense for seismic work conducted within the boundaries of a 13 production or exploration unit. 14  * Sec. 22. AS 43.55.024(e) is amended to read: 15 (e) On written application by a producer that includes any information the 16 department may require, the department shall determine whether the producer 17 qualifies for a calendar year under (a) and (c) of this section. To qualify under (a) and  18 (c) of this section, a producer must demonstrate that its operation in the state or its 19 ownership of an interest in a lease or property in the state as a distinct producer would 20 not result in the division among multiple producer entities of any production tax 21 liability under AS 43.55.011(e) that reasonably would be expected to be attributed to a 22 single producer if the tax credit provisions of (a) or (c) of this section did not exist. 23  * Sec. 23. AS 43.55.024 is amended by adding a new subsection to read: 24 (i) A producer may apply a tax credit of $5 for each barrel of oil taxable under 25 AS 43.55.011(e) produced during a calendar year against the producer's tax liability 26 for the calendar year under AS 43.55.011(e). A tax credit authorized by this subsection 27 may not reduce a producer's tax liability for a calendar year under AS 43.55.011(e) to 28 below zero. 29  * Sec. 24. AS 43.55.028(e) is amended to read: 30 (e) The department, on the written application of a person to whom a 31 transferable tax credit certificate has been issued under AS 43.55.023(d) or former  01 AS 43.55.023(m) [(m)] or to whom a production tax credit certificate has been issued 02 under AS 43.55.025(f), may use available money in the oil and gas tax credit fund to 03 purchase, in whole or in part, the certificate if the department finds that 04 (1) the calendar year of the purchase is not earlier than the first 05 calendar year for which the credit shown on the certificate would otherwise be allowed 06 to be applied against a tax; 07 (2) the applicant does not have an outstanding liability to the state for 08 unpaid delinquent taxes under this title; 09 (3) the applicant's total tax liability under AS 43.55.011(e), after 10 application of all available tax credits, for the calendar year in which the application is 11 made is zero; 12 (4) the applicant's average daily production of oil and gas taxable 13 under AS 43.55.011(e) during the calendar year preceding the calendar year in which 14 the application is made was not more than 50,000 BTU equivalent barrels; and 15 (5) the purchase is consistent with this section and regulations adopted 16 under this section. 17  * Sec. 25. AS 43.55.028(g) is amended to read: 18 (g) The department may adopt regulations to carry out the purposes of this 19 section, including standards and procedures to allocate available money among 20 applications for purchases under this chapter and claims for refunds and payments 21 under AS 43.20.046 or 43.20.047 when the total amount of the applications for 22 purchase and claims for refund exceed the amount of available money in the fund. The 23 regulations adopted by the department may not, when allocating available money in 24 the fund under this section, distinguish an application for the purchase of a credit 25 certificate issued under former AS 43.55.023(m) or a claim for a refund or payment 26 under AS 43.20.046 or 43.20.047. 27  * Sec. 26. AS 43.55.030(e) is amended to read: 28 (e) An explorer or producer that incurs a lease expenditure under 29 AS 43.55.165 or receives a payment or credit under AS 43.55.170 during a calendar 30 year but does not produce oil or gas from a lease or property in the state during the 31 calendar year shall file with the department, on March 31 of the following year, a 01 statement, under oath, in a form prescribed by the department, giving, with other 02 information required, the following: 03 (1) the explorer's or producer's qualified capital expenditures, as 04 defined in AS 43.55.023, other lease expenditures under AS 43.55.165, and 05 adjustments or other payments or credits under AS 43.55.170; and 06 (2) if the explorer or producer receives a payment or credit under 07 AS 43.55.170, calculations showing whether the explorer or producer is liable for a 08 tax under AS 43.55.160(d) or 43.55.170(b) and, if so, the amount. 09  * Sec. 27. AS 43.55.160(a) is amended to read: 10 (a) Except as provided in (b) of this section, for the purposes of 11 (1) AS 43.55.011(e), the annual production tax value of the taxable oil, 12 gas, or oil and gas subject to this paragraph produced during a calendar year is the 13 gross value at the point of production of the oil, gas, or oil and gas taxable under 14 AS 43.55.011(e), less the producer's lease expenditures under AS 43.55.165 for the 15 calendar year applicable to the oil, gas, or oil and gas, as applicable, produced by the 16 producer from leases or properties, as adjusted under AS 43.55.170; this paragraph 17 applies to 18 (A) oil and gas produced from leases or properties in the state 19 that include land north of 68 degrees North latitude, other than gas produced 20 before 2022 and used in the state; 21 (B) oil and gas produced from leases or properties in the state 22 outside the Cook Inlet sedimentary basin, no part of which is north of 68 23 degrees North latitude; this subparagraph does not apply to [GAS] 24 (i) gas produced before 2022 and used in the state; or 25 (ii) oil and gas subject to AS 43.55.011(p); 26 (C) oil produced before 2022 from each [A] lease or property 27 in the Cook Inlet sedimentary basin; 28 (D) gas produced before 2022 from each [A] lease or property 29 in the Cook Inlet sedimentary basin; 30 (E) gas produced before 2022 from each [A] lease or property 31 in the state outside the Cook Inlet sedimentary basin and used in the state,  01 other than gas subject to AS 43.55.011(p); 02 (F) oil and gas subject to AS 43.55.011(p) produced from 03 leases or properties in the state; 04 (G) oil and gas produced from leases or properties in the  05 state [A LEASE OR PROPERTY] no part of which is north of 68 degrees 06 North latitude, other than oil or gas described in (B), (C), (D), (E), or (F) of 07 this paragraph; 08 (2) AS 43.55.011(g), the monthly production tax value of the taxable 09 (A) oil and gas produced during a month from leases or 10 properties in the state that include land north of 68 degrees North latitude is the 11 gross value at the point of production of the oil and gas taxable under 12 AS 43.55.011(e) and produced by the producer from those leases or properties, 13 less 1/12 of the producer's lease expenditures under AS 43.55.165 for the 14 calendar year applicable to the oil and gas produced by the producer from 15 those leases or properties, as adjusted under AS 43.55.170; this subparagraph 16 does not apply to gas subject to AS 43.55.011(o); 17 (B) oil and gas produced during a month from leases or 18 properties in the state outside the Cook Inlet sedimentary basin, no part of 19 which is north of 68 degrees North latitude, is the gross value at the point of 20 production of the oil and gas taxable under AS 43.55.011(e) and produced by 21 the producer from those leases or properties, less 1/12 of the producer's lease 22 expenditures under AS 43.55.165 for the calendar year applicable to the oil and 23 gas produced by the producer from those leases or properties, as adjusted under 24 AS 43.55.170; this subparagraph does not apply to gas subject to 25 AS 43.55.011(o); 26 (C) oil produced during a month from a lease or property in the 27 Cook Inlet sedimentary basin is the gross value at the point of production of 28 the oil taxable under AS 43.55.011(e) and produced by the producer from that 29 lease or property, less 1/12 of the producer's lease expenditures under 30 AS 43.55.165 for the calendar year applicable to the oil produced by the 31 producer from that lease or property, as adjusted under AS 43.55.170; 01 (D) gas produced during a month from a lease or property in 02 the Cook Inlet sedimentary basin is the gross value at the point of production 03 of the gas taxable under AS 43.55.011(e) and produced by the producer from 04 that lease or property, less 1/12 of the producer's lease expenditures under 05 AS 43.55.165 for the calendar year applicable to the gas produced by the 06 producer from that lease or property, as adjusted under AS 43.55.170; 07 (E) gas produced during a month from a lease or property 08 outside the Cook Inlet sedimentary basin and used in the state is the gross 09 value at the point of production of that gas taxable under AS 43.55.011(e) and 10 produced by the producer from that lease or property, less 1/12 of the 11 producer's lease expenditures under AS 43.55.165 for the calendar year 12 applicable to that gas produced by the producer from that lease or property, as 13 adjusted under AS 43.55.170. 14 * Sec. 28. AS 43.55.160(a) is repealed and reenacted to read: 15 (a) Except as provided in (b) and (f) of this section, for the purposes of 16 AS 43.55.011(e), the annual production tax value of taxable oil, gas, or oil and gas 17 produced by a producer during a calendar year in a specific category for which a 18 separate production tax value is required to be calculated under this subsection is equal 19 to the gross value at the point of production of that oil, gas, or oil and gas, 20 respectively, taxable under AS 43.55.011(e), less the producer's lease expenditures 21 under AS 43.55.165 for the calendar year that are applicable to the oil, gas, or oil and 22 gas, respectively, in that category produced by the producer during the calendar year, 23 as adjusted under AS 43.55.170. A separate annual production tax value must be 24 calculated for 25 (1) oil and gas produced from leases or properties in the state that 26 include land north of 68 degrees North latitude, other than gas produced before 2022 27 and used in the state; 28 (2) oil and gas produced from leases or properties in the state outside 29 the Cook Inlet sedimentary basin, no part of which is north of 68 degrees North 30 latitude, during a calendar year before or during the last calendar year under 31 AS 43.55.024(b) for which the producer could take a tax credit under 01 AS 43.55.024(a); this paragraph does not apply to 02 (A) gas produced before 2022 and used in the state; or 03 (B) oil and gas subject to AS 43.55.011(p); 04 (3) oil produced before 2022 from each lease or property in the Cook 05 Inlet sedimentary basin; 06 (4) gas produced before 2022 from each lease or property in the Cook 07 Inlet sedimentary basin; 08 (5) gas produced before 2022 from each lease or property in the state 09 outside the Cook Inlet sedimentary basin and used in the state, other than gas subject 10 to AS 43.55.011(p); 11 (6) oil and gas subject to AS 43.55.011(p) produced from leases or 12 properties in the state; 13 (7) oil and gas produced from leases or properties in the state no part 14 of which is north of 68 degrees North latitude, other than oil or gas described in (2), 15 (3), (4), (5), or (6) of this subsection. 16  * Sec. 29. AS 43.55.160(e) is amended to read: 17 (e) Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that 18 would otherwise be deductible by a producer in a calendar year but whose deduction 19 would cause an annual production tax value calculated under (a) [(a)(1)] of this 20 section of taxable oil or gas produced during the calendar year to be less than zero 21 may be used to establish a carried-forward annual loss under AS 43.55.023(b). 22 However, the department shall provide by regulation a method to ensure that, for a 23 period for which a producer's tax liability is limited by AS 43.55.011(j), (k), (o), or 24 (p), any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would 25 otherwise be deductible by a producer for that period but whose deduction would 26 cause a production tax value calculated under (a)(3), (4), (5), or (6) [(a)(1)(C), (D), 27 (E), OR (F)] of this section to be less than zero are accounted for as though the 28 adjusted lease expenditures had first been used as deductions in calculating the 29 production tax values of oil or gas subject to any of the limitations under 30 AS 43.55.011(j), (k), (o), or (p) that have positive production tax values so as to 31 reduce the tax liability calculated without regard to the limitation to the maximum 01 amount provided for under the applicable provision of AS 43.55.011(j), (k), (o), or (p). 02 Only the amount of those adjusted lease expenditures remaining after the accounting 03 provided for under this subsection may be used to establish a carried-forward annual 04 loss under AS 43.55.023(b). In this subsection, "producer" includes "explorer." 05 * Sec. 30. AS 43.55.160 is amended by adding a new subsection to read: 06 (f) In the calculation of an annual production tax value of a producer under 07 (a)(1) of this section, the gross value at the point of production of oil or gas meeting 08 one or more of the following criteria is reduced by 20 percent: (1) the oil or gas is 09 produced from a lease or property that does not contain a lease that was within a unit 10 on January 1, 2003; (2) the oil or gas is produced from a participating area established 11 after December 31, 2011, that is within a unit formed under AS 38.05.180(p) before 12 January 1, 2003, if the participating area does not contain a reservoir that had 13 previously been in a participating area established before December 31, 2011; (3) the 14 oil or gas is produced from a well that has been accurately metered and measured by 15 the operator to the satisfaction of the commissioner, and the producer demonstrates to 16 the department that the metered well drains a reservoir or portion of a reservoir that 17 the Department of Natural Resources has certified was not contributing to production 18 before January 1, 2013, and the producer demonstrates to the department that the 19 volume of oil or gas produced from the well was subject to certification by the 20 Department of Natural Resources. An exclusion under this section may not reduce the 21 gross value at the point of production below zero. In this subsection, "participating 22 area" means a reservoir or portion of a reservoir producing or contributing to 23 production as approved by the Department of Natural Resources. 24  * Sec. 31. AS 43.56.160 is amended to read: 25 Sec. 43.56.160. Interest and penalty. When the tax levied by AS 43.56.010(a) 26 becomes delinquent, a penalty of 10 percent shall be added. Interest on the delinquent 27 taxes, exclusive of penalty, shall be assessed at the rate specified in AS 43.05.225(1) 28 [A RATE OF EIGHT PERCENT A YEAR]. 29  * Sec. 32. AS 43.77.020(d) is amended to read: 30 (d) A person subject to the tax under this chapter shall make quarterly 31 payments of the tax estimated to be due for the year, as required under regulations 01 adopted by the department. A taxpayer will be subject to an estimated tax penalty, 02 determined by applying the interest rate specified in AS 43.05.225(1) [AS 43.05.225] 03 to the underpayment for each quarter, unless the taxpayer makes estimated tax 04 payments in equal installments that total either 05 (1) at least 90 percent of the taxpayer's tax liability under this chapter 06 for the tax year; or 07 (2) at least 100 percent of the taxpayer's tax liability under this chapter 08 for the prior tax year. 09  * Sec. 33. AS 43.90.430 is amended to read: 10 Sec. 43.90.430. Interest. When a payment due to the state under this chapter 11 becomes delinquent, the payment bears interest at the rate applicable to a delinquent 12 tax under AS 43.05.225(1) [AS 43.05.225]. 13  * Sec. 34. AS 43.98 is amended by adding new sections to read: 14 Article 2. Oil and Gas Competitiveness Review Board. 15 Sec. 43.98.040. Oil and Gas Competitiveness Review Board. (a) The Oil and 16 Gas Competitiveness Review Board is established in the department. 17 (b) The board shall consist of nine members as follows: 18 (1) two members nominated by the two leading nonprofit trade 19 associations representing the oil and gas industry in the state and appointed by the 20 governor, with one member nominated by each association; 21 (2) the chair of the Alaska Oil and Gas Conservation Commission or 22 the chair's designee; 23 (3) three members of the public appointed by the governor, including 24 one member who is a petroleum engineer, one member who is a geologist, and one 25 member who is an economist; 26 (4) the commissioner of environmental conservation or the 27 commissioner's designee; 28 (5) the commissioner of natural resources or the commissioner's 29 designee; and 30 (6) the commissioner of revenue or the commissioner's designee. 31 (c) The governor shall, every two years, designate one of the members as 01 chair. 02 (d) Members of the board appointed under (b)(1) and (b)(3) of this section 03 serve for six years. An individual who has served on the board may be reappointed. 04 (e) A vacancy on the board shall be filled in the manner of the original 05 appointment. 06 (f) A member of the board may be removed and replaced at the discretion of 07 the governor. 08 (g) The members of the board appointed under (b)(1) and (b)(3) of this section 09 serve without compensation but shall receive per diem and travel expenses authorized 10 for boards and commissions under AS 39.20.180. 11 (h) The board may enter into contracts for professional services and may 12 employ staff for administrative support for the board. 13 (i) The board may not meet more than once in a calendar year. 14 Sec. 43.98.050. Duties. The duties of the board include the following: 15 (1) establish and maintain a salient collection of information related to 16 oil and gas exploration, development, and production in the state and related to tax 17 structures, rates, and credits in other regions with oil and gas resources; 18 (2) evaluate and suggest changes to state laws and regulations 19 governing the oil and gas industry; 20 (3) review historical, current, and potential levels of investment in the 21 state's oil and gas sector; 22 (4) identify factors that affect investment in oil and gas exploration, 23 development, and production in the state, including tax structure, rates, and credits; 24 royalty requirements; infrastructure; workforce availability; and regulatory 25 requirements; 26 (5) review the competitive position of the state to attract and maintain 27 investment in the oil and gas sector in the state as compared to the competitive 28 position of other regions with oil and gas resources; 29 (6) in order to facilitate the work of the board, establish procedures to 30 accept and keep confidential information that is beneficial to the work of the board, 31 including the creation of a secure data room and confidentiality agreements to be 01 signed by individuals having access to confidential information; 02 (7) make written findings and recommendations, together with 03 suggested legislation, to the Alaska State Legislature before December 1 of each year, 04 or as soon thereafter as practicable, regarding 05 (A) changes to the state's regulatory environment that would be 06 conducive to encouraging increased investment while protecting the interests 07 of the people of the state and the environment; 08 (B) changes to the state's fiscal regime that would be conducive 09 to increased and ongoing long-term investment in and development of the 10 state's oil and gas resources; and 11 (C) alternative means for increasing the state's ability to attract 12 and maintain investment in and development of the state's oil and gas 13 resources. 14 Sec. 43.98.060. Information to be provided to board. (a) The commissioner 15 of natural resources, the commissioner of revenue, the commissioner of environmental 16 conservation, and other commissioners and state agencies that have responsibility for 17 and maintain information related to oil and gas investment and activity in the state 18 shall, at the request of the board, provide information required by the board to carry 19 out the duties described in AS 43.98.050. 20 (b) At the request of the board, and except for information that is confidential 21 under AS 40.25.100(a) or AS 43.05.230 and information required to be held 22 confidential by the Alaska Oil and Gas Conservation Commission, a commissioner 23 may disclose to the board information that is otherwise confidential after each member 24 of the board and each staff member for the board with access to the information signs 25 a confidentiality agreement prepared by the commissioner making the disclosure. 26 Information that is confidential under AS 43.05.230 may not be disclosed to the board. 27 Sec. 43.98.070. Definition. In AS 43.98.040 - 43.98.070, "board" means the 28 Oil and Gas Competitiveness Review Board. 29 * Sec. 35. AS 43.55.023(m) is repealed. 30 * Sec. 36. AS 43.55.011(g), 43.55.023(i), and 43.55.160(c) are repealed January 1, 2014. 31  * Sec. 37. AS 43.98.040, 43.98.050, 43.98.060, and 43.98.070 are repealed December 31, 01 2022. 02  * Sec. 38. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 APPLICABILITY. (a) Sections 9, 12, 13, and 28 - 30 of this Act apply to oil and gas 05 produced after December 31, 2013. 06 (b) Sections 10 and 27 of this Act apply to oil and gas produced after December 31, 07 2012. 08 (c) Sections 15 and 18 - 21 of this Act and AS 43.55.023(a)(1), as amended by sec. 15 09 of this Act, apply to expenditures incurred after December 31, 2012. 10 (d) Sections 16, 19, and 24 of this Act apply to expenditures incurred after 11 December 31, 2013. 12 (e) Section 17 of this Act applies to expenditures incurred after December 31, 2016. 13 * Sec. 39. The uncodified law of the State of Alaska is amending by adding a new section to 14 read: 15 TRANSITION: REGULATIONS. The Department of Revenue may adopt regulations 16 to implement this Act. The regulations take effect under AS 44.62 (Administrative Procedure 17 Act), but not before the effective date of the respective provision of this Act. 18  * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 TRANSITION: OIL AND GAS COMPETITIVENESS REVIEW BOARD. The 21 governor shall appoint the initial members of the Oil and Gas Competitiveness Review Board, 22 established in sec. 34 of this Act, before January 1, 2014. The initial terms of the members of 23 the board appointed under AS 43.98.040(b)(1) and (b)(3) shall be set by the governor and 24 staggered so that one member serves one year, two members serve four years, and two 25 members serve six years. The first written findings and recommendations, together with 26 suggested legislation, shall be delivered to the Alaska State Legislature on December 1, 2015, 27 or as soon thereafter as practicable. 28  * Sec. 41. The uncodified law of the State of Alaska is amended by adding a new section to 29 read: 30 RETROACTIVITY. Sections 10, 18, 20, 21, 24, 27, and 35 of this Act and 31 AS 43.55.023(a)(1), as amended by sec. 15 of this Act, are retroactive to January 1, 2013. 01 * Sec. 42. Sections 1 - 6, 8, 9, 12 - 14, 16, 19, 22, 23, 28 - 33, and 36 of this Act take effect 02 January 1, 2014. 03  * Sec. 43. Section 17 of this Act takes effect January 1, 2017. 04 * Sec. 44. Except as provided in secs. 42 and 43 of this Act, this Act takes effect 05 immediately under AS 01.10.070(c).