SSHB 144: "An Act relating to fees based on certain capital expenditures for oil and gas production and exploration, and fees based on the use of the James Dalton Highway by the operator of the Trans Alaska Pipeline System, to offset the cost of maintenance of the James Dalton Highway; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 144 01 "An Act relating to fees based on certain capital expenditures for oil and gas production 02 and exploration, and fees based on the use of the James Dalton Highway by the operator 03 of the Trans Alaska Pipeline System, to offset the cost of maintenance of the James 04 Dalton Highway; and providing for an effective date." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 07 to read: 08 SHORT TITLE. This Act may be known as the Oil and Gas Company Road Subsidy 09 Reduction Act. 10 * Sec. 2. AS 19.40 is amended by adding new sections to read: 11 Article 2. James Dalton Highway Use Fee. 12 Sec. 19.40.215. James Dalton Highway use fee. (a) A fee is levied each year 13 in an amount set under (c) of this section that is a percentage of the capital 14 expenditures of an explorer or producer of oil or gas interests or reserves north of 68
01 degrees North latitude that uses the James Dalton Highway to explore for the reserves 02 or access the oil or gas interests. 03 (b) A fee is levied each year on the operator of the Trans Alaska Pipeline 04 System if the operator uses the James Dalton Highway to access the Trans Alaska 05 Pipeline System. 06 (c) The department shall determine the cost to the state during the preceding 07 fiscal year for maintenance and operation of the James Dalton Highway and for 08 maintenance and operation of state-owned facilities that are adjacent to the James 09 Dalton Highway, except for recreational facilities. The department shall inform the 10 Department of Revenue of the amount equal to 60 percent of this cost. The 11 Department of Revenue shall set the rate of the fees in (a) and (b) of this section at a 12 level sufficient to generate revenue approximately equal to this amount, apportioning 13 the revenue to be raised by the fees in (a) and (b) of this section based on the 14 department's calculation of use of the James Dalton Highway by parties subject to the 15 fees in (a) and (b) of this section. 16 (d) The legislature may annually appropriate an amount equal to the revenue 17 collected from the fees under this section for maintenance of the James Dalton 18 Highway or for any other public purpose. 19 Sec. 19.40.220. Collection. (a) The Department of Revenue shall collect and 20 enforce the fees imposed under AS 19.40.215 - 19.40.290. 21 (b) A fee levied under AS 49.40.215 is payable to the Department of Revenue 22 on or before June 30 each year. 23 (c) The provisions of AS 43.05 and AS 43.10 apply to the enforcement and 24 collection of a fee levied under AS 19.40.215 - 19.40.290. 25 Sec. 19.40.225. Returns. The Department of Revenue may require an 26 explorer, producer, or the operator of the Trans Alaska Pipeline System to furnish 27 information that the department considers necessary to calculate the amount of a fee or 28 penalty under AS 19.40.215 - 19.40.290. 29 Sec. 19.40.230. Regulations. The department and the Department of Revenue 30 shall adopt regulations to implement AS 19.40.215 - 19.40.290, including regulations 31 providing for notification to explorers, producers, and the operator of the Trans Alaska
01 Pipeline System of the fee amount due and the date that the fee is due each year. 02 * Sec. 3. AS 19.40.290 is amended to read: 03 Sec. 19.40.290. Definitions [DEFINITION]. In this chapter, 04 (1) "explorer" has the meaning given in AS 43.55.900; 05 (2) "highway" means the secondary highway from the Yukon River to 06 the Arctic Ocean; 07 (3) "producer" has the meaning given in AS 43.55.900. 08 * Sec. 4. This Act takes effect January 1, 2017.