Legislature(2013 - 2014)
2014-04-17 House Journal
Full Journal pdf2014-04-17 House Journal Page 2541 HB 287 The following, which was advanced to third reading from the April 16, 2014, calendar (page 2508), was read the third time: CS FOR HOUSE BILL NO. 287(RLS) "An Act relating to the determination of the royalty received by the state on oil production refined or processed in the state; providing tax credits for qualified infrastructure expenditures for in-state refineries and hydrocarbon processing facilities; approving and ratifying the sale of royalty oil by the State of Alaska to Tesoro Corporation and Tesoro Refining and Marketing Company LLC; and providing for an effective date." Representative Hawker moved and asked unanimous consent that CSHB 287(RLS) be returned to second reading for the specific purpose of considering Amendment No. 1. There being no objection, it was so ordered. Amendment No. 1 was offered by Representatives Hawker and Chenault: Page 3, line 12: Delete "A" Insert "Except as provided in (b) of this section, a" 2014-04-17 House Journal Page 2542 Page 3, following line 21: Insert a new subsection to read: "(b) The credit under this section may not be applied to an expenditure for the installation, modification, adjustment, or other alteration of tangible personal property primarily used for the manufacture or transport of liquefied natural gas, compressed natural gas, or to convert natural gas to liquids." Reletter the following subsections accordingly. Page 4, line 6: Delete "(d)" Insert "(e)" Representative Hawker moved and asked unanimous consent that Amendment No. 1 be adopted. Objection was heard and withdrawn. There being no further objection, Amendment No. 1 was adopted. CSHB 287(RLS) am was automatically in third reading. HB 287 The following was before the House in third reading: CS FOR HOUSE BILL NO. 287(RLS) am "An Act relating to the determination of the royalty received by the state on oil production refined or processed in the state; providing tax credits for qualified infrastructure expenditures for 2014-04-17 House Journal Page 2543 in-state refineries and hydrocarbon processing facilities; approving and ratifying the sale of royalty oil by the State of Alaska to Tesoro Corporation and Tesoro Refining and Marketing Company LLC; and providing for an effective date." Representative Gara moved and asked unanimous consent that CSHB 287(RLS) am be returned to second reading for the specific purpose of considering Amendment No. 2. There being no objection, it was so ordered. Amendment No. 2 was offered by Representatives Gara and Kito III: Page 1, lines 1 - 3 (title amendment): Delete "relating to the determination of the royalty received by the state on oil production refined or processed in the state; providing tax credits for qualified infrastructure expenditures for in-state refineries" Insert "creating a loan program for certain in-state oil refineries" Page 1, line 8, through page 5, line 16: Delete all material and insert: "* Section 1. AS 44.88 is amended by adding a new section to read: Article 9A. In-State Refiner and Hydrocarbon Processor Loan Program. Sec. 44.88.800. In-state refiner and hydrocarbon processor loan program. (a) The authority may make loans of up to $20,000,000 to a person that owns an in-state oil refinery or a hydrocarbon processing facility south of 68 degrees North latitude if the primary function is the manufacturing and sale of refined petroleum products or processed hydrocarbon products to third parties in arm's length transactions. A loan under this section may be used for working capital, equipment, construction, or other commercial purposes. A loan under this section may be made only if the authority finds that (1) the loan is required to (A) maintain profitability of the in-state refiner or hydrocarbon processing facility and the refinery or facility would otherwise be in financial distress; or (B) restart operations of an in-state refiner or 2014-04-17 House Journal Page 2544 hydrocarbon processing facility; and (2) the primary function of the in-state refiner or hydrocarbon processing facility is to engage in the manufacture of refined petroleum products or processed hydrocarbon products in the state, and the in-state refiner or hydrocarbon processing facility is not affiliated with a subsequent purchaser of more than 10 percent of the in-state refiner's or hydrocarbon processing facility's product; the parties to a contract or purchase are affiliated if, in the judgment of the authority, one of the parties to the contract or purchase exercises substantial influence over the policies and actions of the other as evidenced by a relationship based on common ownership or family interest or by action taken in concert whether or not that influence is based on stockholdings, stockholders, officers, or directors. (b) A loan made under this section (1) must comply with AS 44.88.159; (2) may exceed a term of 10 years; and (3) may not bear an interest rate less than the cost of funds to the authority. (c) The authority shall adopt regulations necessary for the following purposes in connection with its programs for the financing of projects under this section: (1) determination of borrower eligibility; (2) loan guidelines and terms, including (A) required loan-to-value ratios; and (B) a method for determining loan interest rates; and (3) the qualifications of loan originators and servicers and the method of allocating amounts available for the purchase of loans. (d) The application for a loan under this section must be received by the authority before December 31, 2015. (e) The legislature may appropriate the money required to make a loan issued under this section prudent for the authority. (f) The authority may allow a borrower to begin repayment of a loan issued under this section up to five years after the loan is issued if the legislature appropriates an amount of money determined by the authority to be sufficient to protect the assets and bond rating of the authority. (g) In this section, "cost of funds" means the true interest cost expressed as a rate on tax-exempt bonds of the authority plus an 2014-04-17 House Journal Page 2545 additional percentage as determined by the authority to represent the allocable expenses of operation, costs of issuance, and loan servicing costs." Renumber the following bill sections accordingly. Page 5, line 28: Delete all material. Renumber the following bill section accordingly. Page 5, line 29: Delete "Except as provided in sec. 7 of this Act, this" Insert "This" Representative Gara moved and asked unanimous consent that Amendment No. 2 be adopted. Representative T. Wilson objected. Representative T. Wilson rose to a point of order. The Speaker cautioned the member to confine remarks to the amendment. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 287(RLS) am Second Reading Amendment No. 2 YEAS: 9 NAYS: 31 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Drummond, Gara, Gruenberg, Josephson, Kito III, Kreiss-Tomkins, Tarr, Tuck Nays: Chenault, Costello, Edgmon, Feige, Foster, Gattis, Guttenberg, Hawker, Herron, Higgins, Holmes, Hughes, Isaacson, Johnson, Kawasaki, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stoltze, Thompson, P.Wilson, T.Wilson 2014-04-17 House Journal Page 2546 And so, Amendment No. 2 was not adopted. CSHB 287(RLS) am was automatically in third reading. The question being: "Shall CSHB 287(RLS) am pass the House?" The roll was taken with the following result: CSHB 287(RLS) am Third Reading Final Passage YEAS: 35 NAYS: 5 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Chenault, Costello, Edgmon, Feige, Foster, Gattis, Gruenberg, Guttenberg, Hawker, Herron, Higgins, Holmes, Hughes, Isaacson, Johnson, Kawasaki, Keller, Kreiss-Tomkins, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Saddler, Seaton, Stoltze, Tarr, Thompson, Tuck, P.Wilson, T.Wilson Nays: Drummond, Gara, Josephson, Kito III, Reinbold And so, CSHB 287(RLS) am passed the House. Representative Pruitt moved and asked unanimous consent that the roll call on the passage of the bill be considered the roll call on the effective date clause. There being no objection, it was so ordered. Representative Johnson gave notice of reconsideration of the vote on CSHB 287(RLS) am.