Legislature(2013 - 2014)
2014-04-20 House Journal
Full Journal pdf2014-04-20 House Journal Page 2680 SB 138 The following, which was advanced to third reading from the April 19, 2014, calendar (page 2653), was read the third time: HOUSE CS FOR CS FOR SENATE BILL NO. 138(FIN) "An Act relating to the Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an Alaska liquefied natural gas project, and associated funds; requiring state agencies and other entities to expedite reviews and actions related to natural gas pipelines and projects; making certain contracts by the Department of Natural Resources and the Department of Law not subject to the State Procurement Code; relating to the authorities and duties of the commissioner of natural resources relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty gas and other gas received by the state including gas received as payment for the production tax on gas; relating to a report and recommendations by the commissioner of natural resources regarding the delivery and availability of North Slope natural gas in the state, including the identification of risks and recommendations for mitigation; relating to the tax on oil and gas production, on oil production, and on gas production; relating to the duties of the commissioner of revenue relating to a North Slope natural gas project and gas received as payment for tax; relating to confidential information and public record status of information provided to or in the custody of the Department of Natural Resources and the Department of Revenue; relating to apportionment factors of the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of production' for gas for purposes of the oil and gas production tax; clarifying that the exploration incentive credit, the oil or gas producer education credit, and the film production tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas producer education credit; requiring the commissioner of revenue to provide a report to the legislature on financing options for state ownership and participation in a North Slope natural gas project; requesting the governor to establish an advisory planning 2014-04-20 House Journal Page 2681 group to advise the governor on municipal involvement in a North Slope natural gas project; relating to the development of a plan by the Alaska Energy Authority for developing infrastructure to deliver affordable energy to areas of the state that will not have direct access to a North Slope natural gas pipeline and a recommendation of a funding source for energy infrastructure development; establishing the Alaska affordable energy fund; requiring the Department of Transportation and Public Facilities to evaluate certain bridges and infrastructure related to an Alaska liquefied natural gas project; requiring the commissioner of revenue to develop a plan and suggest legislation for municipalities, regional corporations, and residents of the state to acquire ownership interests in a North Slope natural gas pipeline project; relating to the duties of the Oil and Gas Competitiveness Review Board; making conforming amendments; and providing for an effective date." Representative Nageak moved and asked unanimous consent that HCS CSSB 138(FIN) be returned to second reading for the specific purpose of considering Amendment No. 8. There being no objection, it was so ordered. Amendment No. 8 was offered by Representative Nageak: Page 1, line 1, following "Act" (title amendment): Insert "relating to the limitation on the value of property taxable by a municipality;" Page 3, following line 1: Insert new bill sections to read: "* Section 1. AS 29.45.080(c) is amended to read: (c) A municipality may levy and collect a tax on the full and true value of that portion of taxable property taxable under AS 43.56 as assessed by the Department of Revenue which value, when combined with the value of property otherwise taxable by the municipality, does not exceed the product of the percentage determined in (f) of this section [225 PERCENT] of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality. * Sec. 2. AS 29.45.080(d) is amended to read: (d) Each [BY FEBRUARY 1 OF EACH] assessment year, a 2014-04-20 House Journal Page 2682 taxing municipality shall inform the Department of Revenue, by (1) February 1, which method of taxation the municipality will use; and (2) May 1, the (A) total value of the municipality's locally assessed property tax base; and (B) payment amount for the principal of and interest on bonds that the municipality intends to apply in its mill rate calculation for the fiscal year corresponding to the tax year for which the assessment method selected by the municipality under this section will apply. * Sec. 3. AS 29.45.080 is amended by adding a new subsection to read: (f) The percentage in (c) of this section is based on the total tax rate established by the municipality and levied each year under AS 43.56.010(b) and is as follows: If the tax rate determined under AS 43.56.010(b) is: The percentage is: Not more than 18.0 mills 375 percent More than 18.0 mills but not more than 19.0 mills 300 percent More than 19.0 mills 225 percent * Sec. 4. AS 29.45.090(b) is amended to read: (b) A municipality, or combination of municipalities occupying the same geographical area, in whole or in part, may not levy taxes (1) that will result in tax revenues from all sources exceeding $1,500 a year for each person residing within the municipal boundaries; or (2) on [UPON] value that, when combined with the value of property otherwise taxable by the municipality, exceeds the product of the percentage determined in (e) of this section [225 PERCENT] of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality. * Sec. 5. AS 29.45.090(c) is amended to read: (c) The commissioner shall apportion the lawful levy and equitably divide the tax revenues on the basis of need, services performed, and other considerations in the public interest if two or more municipalities occupying the same geographical area, in whole or in part, attempt to levy a tax (1) the combined levy of which would result in tax 2014-04-20 House Journal Page 2683 revenues from all sources exceeding $1,500 a year for each person residing within the municipal boundaries; or (2) on [UPON] value that, when combined with the value of property otherwise taxable by the municipality, exceeds the product of the percentage determined in (e) of this section [225 PERCENT] of the average per capita assessed full and true value of property in the state multiplied by the number of residents of the taxing municipality. * Sec. 6. AS 29.45.090 is amended by adding a new subsection to read: (e) The percentage in (b) and (c) of this section is based on the total tax rate established by the municipality and levied each year under AS 43.56.010(b) and is as follows: If the tax rate determined under AS 43.56.010(b) is: The percentage is: Not more than 18.0 mills 375 percent More than 18.0 mills but not more than 19.0 mill 300 percent More than 19.0 mills 225 percent" Page 3, line 2: Delete "Section 1" Insert "Sec. 7" Renumber the following bill sections accordingly. Page 15, line 26: Delete "sec. 18" Insert "sec. 24" Page 23, line 23: Delete "sec. 31" Insert "sec. 37" Page 27, line 16: Delete "sec. 34" Insert "sec. 40" Page 35, line 23: Delete "sec. 42" Insert "sec. 48" 2014-04-20 House Journal Page 2684 Page 57, following line 19: Insert a new bill section to read: "* Sec. 66. AS 43.56.010(c) is amended to read: (c) If the total value of assessed property of a municipality taxing under AS 29.45.080(c) exceeds the product of the percentage, as determined in AS 29.45.080(f), [225 PERCENT] of the average per capita assessed full and true value of property in the state, to be determined by the department and reported to each municipality by January 15 of each year, multiplied by the number of residents of the taxing municipality, the department shall designate the portion of the tax base against which the local tax may be applied." Page 62, line 13: Delete "sec. 27" Insert "sec. 33" Page 63, line 16: Delete "sec. 27" Insert "sec. 33" Page 64, line 22: Delete "sec. 27" Insert "sec. 33" Page 64, line 27: Delete "sec. 18" Insert "sec. 24" Page 64, line 29: Delete "sec. 18" Insert "sec. 24" Page 66, following line 27: Insert a new bill section to read: "* Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to read: APPLICABILITY. Sections 1 - 6 and 66 apply to tax years beginning after December 31, 2014." 2014-04-20 House Journal Page 2685 Renumber the following bill sections accordingly. Page 67, line 3: Delete "Sections 1 - 18, 21, 27 - 31, 33, 34, 42, 44, and 60 - 71" Insert "Sections 7 - 24, 27, 33 - 37, 39, 40, 48, 50, 67 - 77, and 79" Page 67, following line 4: Insert a new bill section to read: "* Sec. 81. Sections 1 - 6, 66, and 78 take effect July 1, 2014." Renumber the following bill sections accordingly. Page 67, line 5: Delete "Section 43" Insert "Section 49" Page 67, line 6: Delete "sec. 72 and 73" Insert "secs. 80 - 82" Representative Nageak moved and asked unanimous consent that Amendment No. 8 be adopted. Objection was heard and withdrawn. Representative Kito III moved and asked unanimous consent that he be allowed to abstain from voting because of a conflict of interest. Objection was heard, and Representative Kito III was required to vote. There being no further objection, Amendment No. 8 was adopted, and the new title follows: HOUSE CS FOR CS FOR SENATE BILL NO. 138(FIN) am H "An Act relating to the limitation on the value of property taxable by a municipality; relating to the Alaska Gasline Development Corporation; relating to an in-state natural gas pipeline, an Alaska liquefied natural gas project, and associated funds; requiring state agencies and other entities to expedite reviews and actions related to natural gas pipelines and projects; making certain contracts by the Department of Natural Resources and the Department of Law not subject to the State Procurement Code; relating to the 2014-04-20 House Journal Page 2686 authorities and duties of the commissioner of natural resources relating to a North Slope natural gas project, oil and gas and gas only leases, and royalty gas and other gas received by the state including gas received as payment for the production tax on gas; relating to a report and recommendations by the commissioner of natural resources regarding the delivery and availability of North Slope natural gas in the state, including the identification of risks and recommendations for mitigation; relating to the tax on oil and gas production, on oil production, and on gas production; relating to the duties of the commissioner of revenue relating to a North Slope natural gas project and gas received as payment for tax; relating to confidential information and public record status of information provided to or in the custody of the Department of Natural Resources and the Department of Revenue; relating to apportionment factors of the Alaska Net Income Tax Act; amending the definition of gross value at the 'point of production' for gas for purposes of the oil and gas production tax; clarifying that the exploration incentive credit, the oil or gas producer education credit, and the film production tax credit may not be taken against the gas production tax paid in gas; relating to the oil or gas producer education credit; requiring the commissioner of revenue to provide a report to the legislature on financing options for state ownership and participation in a North Slope natural gas project; requesting the governor to establish an advisory planning group to advise the governor on municipal involvement in a North Slope natural gas project; relating to the development of a plan by the Alaska Energy Authority for developing infrastructure to deliver affordable energy to areas of the state that will not have direct access to a North Slope natural gas pipeline and a recommendation of a funding source for energy infrastructure development; establishing the Alaska affordable energy fund; requiring the Department of Transportation and Public Facilities to evaluate certain bridges and infrastructure related to an Alaska liquefied natural gas project; requiring the commissioner of revenue to develop a plan and suggest legislation for municipalities, regional corporations, and residents of the state to acquire ownership interests in a North Slope natural gas pipeline project; relating to the duties of the Oil and Gas Competitiveness Review Board; making conforming amendments; and providing for an effective date." 2014-04-20 House Journal Page 2687 Representatives Hawker, Tuck, Reinbold, and Feige moved and asked unanimous consent that they be allowed to abstain from voting because of a conflict of interest. Objection was heard, and the members were required to vote. Representative Johnson moved and asked unanimous consent that no members be excused from voting because of a conflict of interest. There being no objection, it was so ordered. The question being: "Shall HCS CSSB 138(FIN) am H pass the House?" The roll was taken with the following result: HCS CSSB 138(FIN) am H Third Reading Final Passage YEAS: 36 NAYS: 4 EXCUSED: 0 ABSENT: 0 Yeas: Austerman, Chenault, Costello, Drummond, Edgmon, Feige, Foster, Gara, Gattis, Gruenberg, Hawker, Herron, Higgins, Holmes, Hughes, Isaacson, Johnson, Josephson, Keller, Kreiss-Tomkins, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stoltze, Tarr, Thompson, P.Wilson, T.Wilson Nays: Guttenberg, Kawasaki, Kito III, Tuck And so, HCS CSSB 138(FIN) am H 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 Pruitt moved and asked unanimous consent that the House adopt the House Finance Committee letter of intent (page 2605). There being no objection, it was so ordered. Engrossment of HCS CSSB 138(FIN) am H was waived (page 2673). It was signed by the Speaker and Chief Clerk and transmitted with a House letter of intent to the Senate with copies of certified amendments attached.