Legislature(2013 - 2014)

2014-04-20 House Journal

Full Journal pdf

2014-04-20                     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.