Legislature(2015 - 2016)

2016-04-12 House Journal

Full Journal pdf

2016-04-12                     House Journal                      Page 2234
HB 247                                                                                                                        
The following, which was held to today's calendar (page 2206), was                                                              
read the third time:                                                                                                            
                                                                                                                                
     CS FOR HOUSE BILL NO. 247(FIN)                                                                                             
     "An Act relating to interest applicable to delinquent tax; relating                                                        
     to the oil and gas production tax, tax payments, and credits;                                                              
     relating to the minimum oil and gas production tax; relating to                                                            
     refunds for the gas storage facility tax credit, the liquefied natural                                                     
     gas storage facility tax credit, and the qualified in-state oil refinery                                                   
     infrastructure expenditures tax credit; relating to the assessment of                                                      
     an oil and gas production tax imposed; relating to oil and gas lease                                                       
     expenditures and production tax credits for municipal entities;                                                            
     relating to a bond or cash deposit required for an oil or gas                                                              
     business; establishing a legislative working group to study the tax                                                        
     structure for oil and gas produced south of 68 degrees North                                                               
     latitude; and providing for an effective date."                                                                            
                                                                                                                                
Representative Thompson moved and asked unanimous consent that                                                                  
CSHB 247(FIN) be returned to second reading for the specific purpose                                                            
of considering Amendment No. 1.  There being no objection, it was so                                                            
ordered.                                                                                                                        

2016-04-12                     House Journal                      Page 2235
The Speaker stated that, without objection, CSHB 247(FIN) would be                                                              
returned to second reading for all amendments.                                                                                  
                                                                                                                                
Amendment No. 1 (title amendment) was offered by Representative                                                                 
Thompson:                                                                                                                       
                                                                                                                                
Page 1, lines 5 - 6:                                                                                                            
     Delete "relating to the assessment of an oil and gas production                                                          
tax imposed;"                                                                                                                 
                                                                                                                                
Representative Thompson moved and asked unanimous consent that                                                                  
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
Representative Kawasaki objected and withdrew the objection.  There                                                             
being no further objection, Amendment No. 1 was adopted, and the                                                                
new title follows:                                                                                                              
                                                                                                                                
     CS FOR HOUSE BILL NO. 247(FIN)(title am)                                                                                   
     "An Act relating to interest applicable to delinquent tax; relating                                                        
     to the oil and gas production tax, tax payments, and credits;                                                              
     relating to the minimum oil and gas production tax; relating to                                                            
     refunds for the gas storage facility tax credit, the liquefied natural                                                     
     gas storage facility tax credit, and the qualified in-state oil refinery                                                   
     infrastructure expenditures tax credit; relating to oil and gas lease                                                      
     expenditures and production tax credits for municipal entities;                                                            
     relating to a bond or cash deposit required for an oil or gas                                                              
     business; establishing a legislative working group to study the tax                                                        
     structure for oil and gas produced south of 68 degrees North                                                               
     latitude; and providing for an effective date."                                                                            
                                                                                                                                
Amendment No. 2 was offered by Representatives Gara, Kawasaki,                                                                  
Kreiss-Tomkins, Drummond, Tuck, Kito, Wool, and Tarr:                                                                           
                                                                                                                                
Page 5, line 30, through page 7, line 3:                                                                                        
     Delete all material and insert:                                                                                            
              "(2)  oil and gas produced on and after January 1,                                                            
     2017, but before January 1, 2022, from leases or properties                                                            
     that include land north of 68 degrees North latitude,                                                                  
                  (A)  by a producer that does not qualify under (B)                                                        
         of this paragraph, may not be less than                                                                            

2016-04-12                     House Journal                      Page 2236
                       (i)  10 percent of the gross value at the point of                                                   
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $85;                                                                              
                       (ii)  nine percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $80 but not over $85;                                                                
                       (iii)  eight percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $75 but not over $80;                                                                
                       (iv)  seven percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $70 but not over $75;                                                                
                       (v)  six percent of the gross value at the point                                                     
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $65 but not over $70;                                                                
                       (vi)  five percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $60 but not over $65; or                                                               
                       (vii)  four percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $60 or less; or                                                                             
                  (B) by a producer that produces less than an                                                              
         average of 30,000 barrels of oil a day, in total, from leases                                                      
         or properties located north of 68 degrees North latitude                                                           
         and that produces oil or gas that qualifies for a reduction                                                        
         in the gross value of the point of production under                                                                

2016-04-12                     House Journal                      Page 2237
         AS 43.55.160(f) may not be less than                                                                               
                       (i)  10 percent of the gross value at the point of                                                   
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $100;                                                                             
                       (ii)  nine percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $95 but not over $100;                                                               
                       (iii)  eight percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $90 but not over $95;                                                                
                       (iv)  seven percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $85 but not over $90;                                                                
                       (v)  six percent of the gross value at the point                                                     
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $80 but not over $85;                                                                
                       (vi)  five percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $75 but not over $80; or                                                               
                       (vii)  four percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $75 or less; and                                                                            
              (3) oil produced on and after January 1, 2022, from leases                                                    
     or properties that include land north of 68 degrees North latitude,                                                        
                  (A)  by a producer that does not qualify under (B)                                                        
         of this paragraph, may not be less than                                                                            

2016-04-12                     House Journal                      Page 2238
                       (i)  10 [(A) FOUR] percent of the gross value at                                                     
              the point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which the                                                          
              tax is due is more than $85 [$25];                                                                            
                       (ii)  nine [(B) THREE] percent of the gross value                                                    
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $80 [$20] but not over $85                                                   
              [$25];                                                                                                            
                       (iii)  eight [(C) TWO] percent of the gross value                                                    
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $75 [$17.50] but not over $80                                                
              [$20];                                                                                                            
                       (iv)  seven [(D) ONE] percent of the gross value                                                     
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
              which the tax is due is over $70 [$15] but not over $75;                                                  
                       (v)  six percent of the gross value at the point                                                     
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $65 but not over $70;                                                                
                       (vi)  five percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $60 but not over $65 [$17.50]; or                                                      
                       (vii)  four [(E) ZERO] percent of the gross value                                                    
              at the point of production when the average price per                                                             
              barrel for Alaska North Slope crude oil for sale on the                                                           
              United States West Coast during the calendar year for                                                             
               which the tax is due is $60 [$15] or less; or                                                           
                  (B)  by a producer that produces less than an                                                             
         average of 30,000 barrels of oil a day, in total, from leases                                                      
         or properties located north of 68 degrees North latitude                                                           

2016-04-12                     House Journal                      Page 2239
         and that produces oil that qualifies for a reduction in the                                                        
         gross value of the point of production under                                                                       
         AS 43.55.160(f) may not be less than                                                                               
                       (i)  10 percent of the gross value at the point of                                                   
              production when the average price per barrel for                                                              
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is more than $100;                                                                             
                       (ii)  nine percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $95 but not over $100;                                                               
                       (iii)  eight percent of the gross value at the                                                       
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $90 but not over $95;                                                                
                       (iv)  seven percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
               the tax is due is over $85 but not over $90;                                                                
                       (v)  six percent of the gross value at the point                                                     
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
               the tax is due is over $80 but not over $85;                                                                
                       (vi)  five percent of the gross value at the point                                                   
              of production when the average price per barrel for                                                           
              Alaska North Slope crude oil for sale on the United                                                           
              States West Coast during the calendar year for which                                                          
              the tax is due is over $75 but not over $80; or                                                               
                       (vii)  four percent of the gross value at the                                                        
              point of production when the average price per barrel                                                         
              for Alaska North Slope crude oil for sale on the United                                                       
              States West Coast during the calendar year for which                                                          
              the tax is due is $75 or less."                                                                               
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2240
Page 11, lines 14 - 15:                                                                                                         
     Delete "zero percent, one percent, two percent, three percent, or                                                          
four percent, as applicable,"                                                                                                   
     Insert "the [ZERO PERCENT, ONE PERCENT, TWO                                                                            
PERCENT, THREE PERCENT, OR FOUR] percent [, AS] applicable                                                                      
under AS 43.55.011(f) [,]"                                                                                                  
                                                                                                                                
Page 13, lines 6 - 7:                                                                                                           
     Delete "zero percent, one percent, two percent, three percent, or                                                          
four percent, as applicable,"                                                                                                   
     Insert "the [ZERO PERCENT, ONE PERCENT, TWO                                                                            
PERCENT, THREE PERCENT, OR FOUR] percent [, AS] applicable                                                                      
under AS 43.55.011(f) [,]"                                                                                                  
                                                                                                                                
Representative Gara moved and asked unanimous consent that                                                                      
Amendment No. 2 be adopted.                                                                                                     
                                                                                                                                
Representative Thompson objected.                                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  13   NAYS:  25   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki,                                                                 
Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool                                                                        
                                                                                                                                
Nays:  Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson,                                                               
Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson,                                                                    
Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton,                                                          
Vazquez, Wilson                                                                                                                 
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was not offered.                                                                                                
                                                                                                                                
Amendment No. 4 was offered by Representatives Gara, Kawasaki,                                                                  
Kreiss-Tomkins, Wool, Tarr, Drummond, Tuck, and Kito:                                                                           

2016-04-12                     House Journal                      Page 2241
Page 1, line 3, following "tax;" (title amendment):                                                                           
       Insert "repealing a maximum production tax for certain oil;"                                                          
                                                                                                                                
Page 5, following line 4:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 10. AS 43.55.011(e) is amended to read:                                                                               
         (e)  There is levied on the producer of oil or gas a tax for all                                                       
     oil and gas produced each calendar year from each lease or                                                                 
     property in the state, less any oil and gas the ownership or right to                                                      
     which is exempt from taxation or constitutes a landowner's royalty                                                         
     interest or for which a tax is levied by AS 43.55.014. Except as                                                           
     otherwise provided under (f), (j), [(k),] (o), and (p) of this section,                                                    
     for oil and gas produced                                                                                                   
              (1)  before January 1, 2014, the tax is equal to the sum of                                                       
                  (A)  the annual production tax value of the taxable oil                                                       
         and gas as calculated under AS 43.55.160(a)(1) multiplied by                                                           
         25 percent; and                                                                                                        
                  (B)  the sum, over all months of the calendar year, of                                                        
           the tax amounts determined under (g) of this section;                                                               
              (2)  on and after January 1, 2014, and before January 1,                                                          
     2022, the tax is equal to the annual production tax value of the                                                           
     taxable oil and gas as calculated under AS 43.55.160(a)(1)                                                                 
     multiplied by 35 percent;                                                                                                  
              (3)  on and after January 1, 2022, the tax for                                                                   
                  (A)  oil is equal to the annual production tax value of                                                       
         the taxable oil as calculated under AS 43.55.160(h) multiplied                                                         
         by 35 percent;                                                                                                         
                  (B)  gas is equal to 13 percent of the gross value at                                                         
         the point of production of the taxable gas; if the gross value at                                                      
         the point of production of gas produced from a lease or                                                                
         property is less than zero, that gross value at the point of                                                           
         production is considered zero for purposes of this                                                                     
         subparagraph."                                                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 7, line 8:                                                                                                                 
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                

2016-04-12                     House Journal                      Page 2242
Page 7, line 11:                                                                                                                
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 7, line 13:                                                                                                                
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 7, line 15:                                                                                                                
     Delete "or (k) of this section for the production of oil"                                                                  
     Insert "[OR (k) OF THIS SECTION FOR THE PRODUCTION                                                                         
OF OIL]"                                                                                                                        
                                                                                                                                
Page 7, line 19:                                                                                                                
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 9, line 4:                                                                                                                 
     Delete "oil or"                                                                                                            
     Insert "[OIL OR]"                                                                                                          
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 9, line 28:                                                                                                                
     Delete "oil or"                                                                                                            
     Insert "[OIL OR]"                                                                                                          
                                                                                                                                
Page 9, line 29:                                                                                                                
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 9, line 31:                                                                                                                
     Delete "or set out in AS 43.55.011(k)(1) or (2), as applicable, for                                                        
oil"                                                                                                                            
     Insert "[OR SET OUT IN AS 43.55.011(k)(1) OR (2), AS                                                                       
APPLICABLE, FOR OIL]"                                                                                                           
                                                                                                                                
Page 10, lines 3 - 5:                                                                                                           
     Delete "and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as                                                            
applicable, the amount of taxable oil produced during the month for                                                             

2016-04-12                     House Journal                      Page 2243
the amount of taxable oil produced during the calendar year"                                                                    
     Insert "[AND SUBSTITUTING IN AS 43.55.011(k)(1)(A) OR                                                                      
(2)(A), AS APPLICABLE, THE AMOUNT OF TAXABLE OIL                                                                                
PRODUCED DURING THE MONTH FOR THE AMOUNT OF                                                                                     
TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR]"                                                                                 
                                                                                                                                
Page 11, line 27:                                                                                                               
     Delete "oil or"                                                                                                            
     Insert "[OIL OR]"                                                                                                          
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 12, line 2:                                                                                                                
     Delete "oil or gas, respectively,"                                                                                         
     Insert "[OIL OR] gas [, RESPECTIVELY,]"                                                                                    
                                                                                                                                
Page 12, line 4:                                                                                                                
     Delete "oil or gas, respectively,"                                                                                         
     Insert "[OIL OR] gas [, RESPECTIVELY,]"                                                                                    
                                                                                                                                
Page 12, line 18:                                                                                                               
     Delete "oil or"                                                                                                            
     Insert "[OIL OR]"                                                                                                          
                                                                                                                                
Page 12, line 19:                                                                                                               
     Delete ", (k),"                                                                                                            
     Insert "[, (k),]"                                                                                                          
                                                                                                                                
Page 12, line 21:                                                                                                               
     Delete "or set out in AS 43.55.011(k)(1) or (2), as applicable, for                                                        
oil"                                                                                                                            
     Insert "[OR SET OUT IN AS 43.55.011(k)(1) OR (2), AS                                                                       
APPLICABLE, FOR OIL]"                                                                                                           
                                                                                                                                
Page 12, lines 24 - 26:                                                                                                         
     Delete "and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as                                                            
applicable, the amount of taxable oil produced during the month for                                                             
the amount of taxable oil produced during the calendar year"                                                                    
     Insert "[AND SUBSTITUTING IN AS 43.55.011(k)(1)(A) OR                                                                      
(2)(A), AS APPLICABLE, THE AMOUNT OF TAXABLE OIL                                                                                

2016-04-12                     House Journal                      Page 2244
PRODUCED DURING THE MONTH FOR THE AMOUNT OF                                                                                     
TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR]"                                                                                 
                                                                                                                                
Page 25, following line 12:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 32. AS 43.55.160(e) is amended to read:                                                                               
         (e)  Any adjusted lease expenditures under AS 43.55.165 and                                                            
     43.55.170 that would otherwise be deductible by a producer in a                                                            
     calendar year but whose deduction would cause an annual                                                                    
     production tax value calculated under (a)(1) or (h) of this section                                                        
     of taxable oil or gas produced during the calendar year to be less                                                         
     than zero may be used to establish a carried-forward annual loss                                                           
     under AS 43.55.023(b). However, the department shall provide by                                                            
     regulation a method to ensure that, for a period for which a                                                               
     producer's tax liability is limited by AS 43.55.011(j), [(k),] (o), or                                                     
     (p), or former AS 43.55.011(k), any adjusted lease expenditures                                                        
     under AS 43.55.165 and 43.55.170 that would otherwise be                                                                   
     deductible by a producer for that period but whose deduction                                                               
     would cause a production tax value calculated under (a)(1)(C),                                                             
     (D), (E), or (F), or (h)(3) of this section to be less than zero are                                                       
     accounted for as though the adjusted lease expenditures had first                                                          
     been used as deductions in calculating the production tax values of                                                        
     oil or gas subject to any of the limitations under AS 43.55.011(j),                                                        
     [(k),] (o), or (p) or former AS 43.55.011(k) that have positive                                                        
     production tax values so as to reduce the tax liability calculated                                                         
     without regard to the limitation to the maximum amount provided                                                            
     for under the applicable provision of AS 43.55.011(j), [(k),] (o), or                                                      
     (p) or former AS 43.55.011(k). Only the amount of those                                                                
     adjusted lease expenditures remaining after the accounting                                                                 
     provided for under this subsection may be used to establish a                                                              
     carried-forward annual loss under AS 43.55.023(b). In this                                                                 
     subsection, "producer" includes "explorer.""                                                                               
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "27, and 28"                                                                                                        
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2245
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 18, 19, 29, 37, and 38"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                

2016-04-12                     House Journal                      Page 2246
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 25, 45, and 49"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 18, 19, 29 - 31, 35 - 39, 41, 44, 47, and 48"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                
Representative Gara moved and asked unanimous consent that                                                                      
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 4 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 4                                                                                                                 
                                                                                                                                
YEAS:  14   NAYS:  24   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki,                                                                 
Kito, Kreiss-Tomkins, Munoz, Ortiz, Spohnholz, Tarr, Tuck, Wool                                                                 
                                                                                                                                
Nays:  Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson,                                                               
Keller, LeDoux, Lynn, Millett, Nageak, Neuman, Olson, Pruitt,                                                                   
Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton,                                                                  
Vazquez, Wilson                                                                                                                 
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 4 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 5 was not offered.                                                                                                

2016-04-12                     House Journal                      Page 2247
Amendment No. 6 was offered by Representatives Josephson, Tarr,                                                                 
Drummond, Gara, Kreiss-Tomkins, Tuck, Kito, and Kawasaki:                                                                       
                                                                                                                                
Page 16, line 20, following "AS 43.55.011(e).":                                                                                 
     Insert "After December 31, 2016, a producer may not take a                                                             
credit under this subsection after five consecutive years of                                                                
claiming a credit under this subsection or eight years after the                                                            
year a credit is first claimed under this subsection, whichever is                                                          
first."                                                                                                                     
                                                                                                                                
Representative Josephson moved and asked unanimous consent that                                                                 
Amendment No. 6 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 6 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 6                                                                                                                 
                                                                                                                                
YEAS:  16   NAYS:  22   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Edgmon, Gara, Guttenberg, Josephson,                                                                   
Kawasaki, Kito, Kreiss-Tomkins, Munoz, Ortiz, Spohnholz, Stutes,                                                                
Tarr, Tuck, Wool                                                                                                                
                                                                                                                                
Nays:  Chenault, Foster, Gattis, Herron, Hughes, Johnson, Keller,                                                               
LeDoux, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold,                                                                 
Saddler, Seaton, Talerico, Thompson, Tilton, Vazquez, Wilson                                                                    
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 6 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 7 was offered by Representatives Tarr, Kawasaki,                                                                  
Wool, Drummond, Kreiss-Tomkins, Gara, Tuck, and Kito:                                                                           
                                                                                                                                
Page 25, following line 12:                                                                                                     
     Insert a new bill section to read:                                                                                         
"* Sec. 31. AS 43.55.150 is amended by adding a new subsection to                                                             
read:                                                                                                                           

2016-04-12                     House Journal                      Page 2248
         (d)  The gross value at the point of production may not be less                                                        
     than zero."                                                                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "35, and 36"                                                                                                        
     Insert "36, and 37"                                                                                                        
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 34"                                                                                                           

2016-04-12                     House Journal                      Page 2249
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "43, and 47"                                                                                                        
     Insert "44, and 48"                                                                                                        
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "33 - 37, 39, 42, 45, and 46"                                                                                       
     Insert "34 - 38, 40, 43, 46, and 47"                                                                                       
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 50 and 51"                                                                                                   
                                                                                                                                
Representative Tarr moved and asked unanimous consent that                                                                      
Amendment No. 7 be adopted.                                                                                                     
                                                                                                                                
Representative Neuman objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 7 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 7                                                                                                                 
                                                                                                                                
YEAS:  19   NAYS:  19   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Edgmon, Foster, Gara, Guttenberg,                                                                      
Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz,                                                                
Seaton, Spohnholz, Tarr, Tuck, Vazquez, Wool                                                                                    
                                                                                                                                
Nays:  Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn,                                                                 
Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Stutes,                                                              
Talerico, Thompson, Tilton, Wilson                                                                                              
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2250
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 7 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 8 was not offered.                                                                                                
                                                                                                                                
Amendment No. 9 was offered by Representatives Kawasaki,                                                                        
Drummond, Kreiss-Tomkins, Gara, Tuck, Kito, Guttenberg, and Tarr:                                                               
                                                                                                                                
Page 1, line 1, following "tax;" (title amendment):                                                                           
     Insert "relating to confidential tax information in the                                                                  
possession of the Department of Revenue;"                                                                                     
                                                                                                                                
Page 4, following line 1:                                                                                                       
     Insert new bill sections to read:                                                                                          
"* Sec. 7. AS 43.05.230(f) is amended to read:                                                                                
         (f)  A wilful violation of the provisions of this section or of a                                                      
     condition imposed under AS 43.55.040(1)(B) is punishable by a                                                              
     fine of not more than $5,000, or by imprisonment for not more                                                              
     than two years, or by both. The penalty under this subsection                                                          
     may be in addition to, and not in place of, an applicable                                                              
     criminal sanction under state or federal law.                                                                          
   * Sec. 8. AS 43.05.230 is amended by adding a new subsection to                                                            
read:                                                                                                                           
         (l)  The department may disclose confidential tax information,                                                         
     documents, or other materials related to a credit for oil and gas                                                          
     investment, exploration, production, delivery, storage, or use                                                             
     against a tax imposed under AS 43.20 or AS 43.55 to a legislator,                                                          
     an agent of a legislator or a legislative committee, or a contractor                                                       
     of a legislator or a legislative committee if                                                                              
              (1)  the information is disclosed during an executive                                                             
     session of a committee hearing or an executive session of a                                                                
     meeting of one house of the legislature as a committee of the                                                              
     whole;                                                                                                                     
              (2)  only legislators, agents, and contractors complying                                                          
     with the remainder of this subsection are in attendance at the                                                             
     committee meeting;                                                                                                         
              (3)  written information, documents, or other materials                                                           
     are clearly labeled as confidential tax information;                                                                       
              (4)  the legislator, agent, or contractor has executed an                                                         

2016-04-12                     House Journal                      Page 2251
     agreement with the department                                                                                              
                  (A)  that acknowledges that tax information,                                                                  
         documents, and materials received under this subsection are                                                            
         confidential by law;                                                                                                   
                  (B)  that acknowledges that it is illegal to publicly                                                         
         disclose confidential tax information, documents, or materials                                                         
         received under this subsection unless the information is                                                               
         otherwise publicly available; and                                                                                      
                  (C)  in which the legislator, agent, or contractor                                                            
         agrees not to                                                                                                          
                       (i)  disclose the information received during the                                                        
              meeting or the contents of documents or materials viewed                                                          
              during a committee meeting under this section; and                                                                
                       (ii)  remove any written information, documents,                                                         
              or materials from the physical location of the committee                                                          
              meeting."                                                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "Sections 7 - 9, 26, and 27"                                                                                        
     Insert "Sections 9 - 11, 28, and 29"                                                                                       
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 19, 20, 30, 37, and 38"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2252
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 26, 45, and 49"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                

2016-04-12                     House Journal                      Page 2253
Representative Tarr moved and asked unanimous consent that                                                                      
Amendment No. 9 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 9 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 9                                                                                                                 
                                                                                                                                
YEAS:  14   NAYS:  24   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Gara, Guttenberg, Herron, Josephson,                                                                   
Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool                                                              
                                                                                                                                
Nays:  Chenault, Edgmon, Foster, Gattis, Hughes, Johnson, Keller,                                                               
LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt,                                                                    
Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton,                                                                  
Vazquez, Wilson                                                                                                                 
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 9 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 10 was offered by Representatives Josephson and                                                                   
Kawasaki:                                                                                                                       
                                                                                                                                
Page 1, line 3, following "tax;" (title amendment):                                                                           
     Insert "relating to a minimum production tax on oil;"                                                                    
                                                                                                                                
Page 5, following line 4:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 10. AS 43.55.011(e) is amended to read:                                                                               
         (e)  There is levied on the producer of oil or gas a tax for all                                                       
     oil and gas produced each calendar year from each lease or                                                                 
     property in the state, less any oil and gas the ownership or right to                                                      
     which is exempt from taxation or constitutes a landowner's royalty                                                         
     interest or for which a tax is levied by AS 43.55.014. Except as                                                           
     otherwise provided under (f), (j), (k), and (o) - (q) [(o), AND (p)]                                                   
     of this section, for oil and gas produced                                                                                  
              (1)  before January 1, 2014, the tax is equal to the sum of                                                       

2016-04-12                     House Journal                      Page 2254
                  (A)  the annual production tax value of the taxable oil                                                       
         and gas as calculated under AS 43.55.160(a)(1) multiplied by                                                           
         25 percent; and                                                                                                        
                  (B)  the sum, over all months of the calendar year, of                                                        
           the tax amounts determined under (g) of this section;                                                               
              (2)  on and after January 1, 2014, and before January 1,                                                          
     2022, the tax is equal to the annual production tax value of the                                                           
     taxable oil and gas as calculated under AS 43.55.160(a)(1)                                                                 
     multiplied by 35 percent;                                                                                                  
              (3)  on and after January 1, 2022, the tax for                                                                   
                  (A)  oil is equal to the annual production tax value of                                                       
         the taxable oil as calculated under AS 43.55.160(h) multiplied                                                         
         by 35 percent;                                                                                                         
                  (B)  gas is equal to 13 percent of the gross value at                                                         
         the point of production of the taxable gas; if the gross value at                                                      
         the point of production of gas produced from a lease or                                                                
         property is less than zero, that gross value at the point of                                                           
         production is considered zero for purposes of this                                                                     
         subparagraph."                                                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 6, lines 2 - 5:                                                                                                            
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 6, lines 8 - 11:                                                                                                           
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 7, following line 20:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 13. AS 43.55.011 is amended by adding a new subsection to                                                             
read:                                                                                                                           
         (q)  The total amount of tax credits that may be applied                                                               
     against the tax levied by (f) of this section for a calendar year may                                                      

2016-04-12                     House Journal                      Page 2255
     not exceed the sum of the amount of the tax credits or fractions of                                                        
     tax credits that are allowed under AS 43.55.020(a) to be                                                                   
     subtracted in calculating the installment payments of estimated tax                                                        
     for each month in the calendar year."                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 7, line 24, following "AS 43.55.011(f)":                                                                               
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 15, line 9, following "AS 43.55.011(f)":                                                                               
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 17, line 2, following "AS 43.55.011(f)":                                                                               
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 19, line 9, following "AS 43.55.011(f)":                                                                               
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 19, line 13, following "AS 43.55.011(f)":                                                                              
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 19, line 20, following "AS 43.55.011(f)":                                                                              
     Insert "or (q)"                                                                                                        
                                                                                                                                
Page 22, line 8, following "AS 43.55.011(f)":                                                                                   
     Insert "or (q)"                                                                                                            
                                                                                                                                
Page 35, line 10, following "APPLICABILITY.":                                                                                   
     Insert "(a)"                                                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "28, and 29"                                                                                                        
                                                                                                                                
Page 35, following line 11:                                                                                                     
     Insert a new subsection to read:                                                                                           
     "(b)  The limitations on the use of tax credits in AS 43.55.011(q),                                                        
added by sec. 13 of this Act, AS 43.55.019(e), as amended by sec. 14                                                            
of this Act, AS 43.55.020(a), as amended by sec. 15 of this Act,                                                                

2016-04-12                     House Journal                      Page 2256
AS 43.55.023(c), as amended by sec. 18 of this Act, AS 43.55.024(f),                                                            
as amended by sec. 22 of this Act, AS 43.55.024(g), as amended by                                                               
sec. 23 of this Act, and AS 43.55.025(q), added by sec. 27 of this Act,                                                         
apply to credits applied to reduce a tax liability for a tax year starting                                                      
on or after the effective date of secs. 13, 14, 15, 18, 22, 23, and 27 of                                                       
this Act."                                                                                                                      
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 19, 20, 30, 37, and 38"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2257
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 26, 45, and 49"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                
Representative Josephson moved and asked unanimous consent that                                                                 
Amendment No. 10 be adopted.                                                                                                    
                                                                                                                                
Representative Talerico objected.                                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 10 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 10                                                                                                                
                                                                                                                                
YEAS:  17   NAYS:  21   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Foster, Gara, Guttenberg, Josephson,                                                                   
Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Ortiz, Seaton, Spohnholz,                                                               
Stutes, Tarr, Tuck, Wool                                                                                                        
                                                                                                                                

2016-04-12                     House Journal                      Page 2258
Nays:  Chenault, Edgmon, Gattis, Herron, Hughes, Johnson, Keller,                                                               
Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold,                                                                  
Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson                                                                            
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 10 was not adopted.                                                                                       
                                                                                                                                
Amendment No. 11 was offered by Representatives Guttenberg,                                                                     
Kawasaki, Tarr, Tuck, Gara, Drummond, and Josephson:                                                                            
                                                                                                                                
Page 1, line 1, following "tax;" (title amendment):                                                                           
     Insert "relating to information concerning tax credits and tax                                                           
credit certificates;"                                                                                                         
                                                                                                                                
Page 3, following line 4:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 6. AS 40.25.100(a) is amended to read:                                                                                
         (a)  Information in the possession of the Department of                                                                
     Revenue that discloses the particulars of the business or affairs of                                                       
     a taxpayer or other person, including information under                                                                    
     AS 38.05.020(b)(11) that is subject to a confidentiality agreement                                                         
     under AS 38.05.020(b)(12), is not a matter of public record,                                                               
     except as provided in AS 43.05.230(i) - (n) [AS 43.05.230(i) OR                                                        
     (k)] or for purposes of investigation and law enforcement. The                                                             
     information shall be kept confidential except when its production                                                          
     is required in an official investigation, administrative adjudication                                                      
     under AS 43.05.405 - 43.05.499, or court proceeding. These                                                                 
     restrictions do not prohibit the publication of statistics presented                                                       
     in a manner that prevents the identification of particular reports                                                         
     and items, prohibit the publication of tax lists showing the names                                                         
     of taxpayers who are delinquent and relevant information that may                                                          
     assist in the collection of delinquent taxes, or prohibit the                                                              
     publication of records, proceedings, and decisions under                                                                   
     AS 43.05.405 - 43.05.499."                                                                                                 
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 4, following line 1:                                                                                                       
     Insert a new bill section to read:                                                                                         
   "* Sec. 8. AS 43.05.230 is amended by adding new subsections to                                                            

2016-04-12                     House Journal                      Page 2259
read:                                                                                                                           
         (l)  The following information for persons claiming a credit                                                           
     under AS 43.55 or applying to the department for the purchase of                                                           
     a transferable tax credit certificate under AS 43.55.028 is public                                                         
     unless the department determines that the information meets an                                                             
     exception under AS 40.25.120(a):                                                                                           
              (1)  the name of each person                                                                                      
                  (A)  claiming a credit under AS 43.55;                                                                       
                  (B)  from whom the department purchases a                                                                     
         transferable tax credit certificate under AS 43.55.028; and                                                            
              (2)  the amount of each                                                                                           
                  (A)  credit under AS 43.55 claimed by the person in                                                           
         the calendar year, except for the credit in AS 43.55.024(j);                                                           
         and                                                                                                                    
                  (B)  transferable tax credit certificate purchased from                                                       
         the person under AS 43.55.028.                                                                                         
         (m)  A person may not claim a credit under AS 43.55 or apply                                                           
     to the department for the purchase of a transferable tax credit                                                            
     certificate under AS 43.55.028 unless the person has signed an                                                             
     agreement with the department acknowledging the application of                                                             
     (l) of this section.                                                                                                       
         (n)  Within five days after claiming a credit under AS 43.55 or                                                        
     applying to the department for the purchase of a tax credit                                                                
     certificate or a refund or payment under AS 43.55.028, a person                                                            
     may request that the department determine whether the                                                                      
     information under (l) of this section qualifies for an exception                                                           
     under AS 40.25.120(a). The department shall make a                                                                         
     determination and provide written notice to the person within 10                                                           
     days after a request under this subsection. Notwithstanding                                                                
     AS 43.05.240, a determination under this subsection is a final                                                             
     administrative decision subject to review by a superior court under                                                        
     AS 44.62 (Administrative Procedure Act)."                                                                                  
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "Sections 7 - 9, 26, and 27"                                                                                        
     Insert "Sections 9 - 11, 28, and 29"                                                                                       
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         

2016-04-12                     House Journal                      Page 2260
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 19, 20, 30, 37, and 38"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2261
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 26, 45, and 49"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                
Representative Guttenberg moved and asked unanimous consent that                                                                
Amendment No. 11 be adopted.                                                                                                    
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 11 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 11                                                                                                                
                                                                                                                                
YEAS:  13   NAYS:  25   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki,                                                                 
Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool                                                                        
                                                                                                                                
Nays:  Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson,                                                               
Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson,                                                                    
Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton,                                                          
Vazquez, Wilson                                                                                                                 
                                                                                                                                
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 11 was not adopted.                                                                                       
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2262
Amendment No. 12 was offered by Representative Seaton:                                                                          
                                                                                                                                
Page 6, lines 2 - 5:                                                                                                            
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 6, lines 8 - 11:                                                                                                           
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 16, line 6, following "January 1, 2016,":                                                                                  
     Insert "and before January 1, 2017,"                                                                                   
                                                                                                                                
Page 16, line 8, following "loss.":                                                                                             
     Insert "For lease expenditures incurred after December 31,                                                             
2016, to explore for, develop, or produce oil or gas deposits located                                                       
north of 68 degrees North latitude, a producer or explorer may                                                              
elect to take a tax credit in the amount of 25 percent of a carried-                                                        
forward annual loss."                                                                                                       
                                                                                                                                
Page 20, lines 3 - 27:                                                                                                          
     Delete all material and insert:                                                                                            
              "(1)  [$8 FOR EACH BARREL OF TAXABLE OIL IF                                                                       
     THE AVERAGE GROSS VALUE AT THE POINT OF                                                                                    
     PRODUCTION FOR THE MONTH IS LESS THAN $80 A                                                                                
     BARREL;                                                                                                                    
              (2)  $7 FOR EACH BARREL OF TAXABLE OIL IF                                                                         
     THE AVERAGE GROSS VALUE AT THE POINT OF                                                                                    
     PRODUCTION FOR THE MONTH IS GREATER THAN OR                                                                                
     EQUAL TO $80 A BARREL, BUT LESS THAN $90 A                                                                                 
     BARREL;                                                                                                                    
              (3)  $6 FOR EACH BARREL OF TAXABLE OIL IF                                                                         
     THE AVERAGE GROSS VALUE AT THE POINT OF                                                                                    
     PRODUCTION FOR THE MONTH IS GREATER THAN OR                                                                                
     EQUAL TO $90 A BARREL, BUT LESS THAN $100 A                                                                                
     BARREL;                                                                                                                    

2016-04-12                     House Journal                      Page 2263
              (4)]  $5 for each barrel of taxable oil if the average gross                                                      
     value at the point of production for the month is [GREATER                                                                 
     THAN OR EQUAL TO $100 A BARREL, BUT] less than $110 a                                                                      
     barrel;                                                                                                                    
              (2) [(5)]  $4 for each barrel of taxable oil if the average                                                   
     gross value at the point of production for the month is greater than                                                       
     or equal to $110 a barrel, but less than $120 a barrel;                                                                    
              (3) [(6)]  $3 for each barrel of taxable oil if the average                                                   
     gross value at the point of production for the month is greater than                                                       
     or equal to $120 a barrel, but less than $130 a barrel;                                                                    
              (4) [(7)]  $2 for each barrel of taxable oil if the average                                                   
     gross value at the point of production for the month is greater than                                                       
     or equal to $130 a barrel, but less than $140 a barrel;                                                                    
              (5) [(8)]  $1 for each barrel of taxable oil if the average                                                   
     gross value at the point of production for the month is greater than                                                       
     or equal to $140 a barrel, but less than $150 a barrel;                                                                    
              (6) [(9)]  zero if the average gross value at the point of                                                    
     production for the month is greater than or equal to $150 a barrel."                                                       
                                                                                                                                
Page 22, line 10:                                                                                                               
     Delete "The"                                                                                                               
     Insert "Subject to the limitations in (k) of this section, the                                                         
[THE]"                                                                                                                          
                                                                                                                                
Page 22, lines 14 - 16:                                                                                                         
     Delete "The department may not purchase a total of more than                                                           
$100,000,000 in tax credit certificates from a person in a calendar                                                         
year."                                                                                                                      
                                                                                                                                
Page 23, line 3:                                                                                                                
     Delete "a new subsection"                                                                                                  
     Insert "new subsections"                                                                                                   
                                                                                                                                
Page 23, following line 18:                                                                                                     
     Insert a new subsection to read:                                                                                           
         "(k)  In a calendar year, the department may not purchase tax                                                          
     credit certificates issued under this chapter if the sum of the                                                            
     purchases exceeds $50,000,000 a person or $200,000,000 a unit. If                                                          
     the total of the credit purchases applied for under this section and                                                       
     subject to the limitation in this subsection exceeds $200,000,000                                                          

2016-04-12                     House Journal                      Page 2264
     for a unit, the department shall prorate the purchase of tax credit                                                        
     certificates based on ownership interest in the unit. When                                                                 
     calculating a sum of purchases under this subsection, the                                                                  
     department shall include amounts used to reduce an outstanding                                                             
     liability under (j) of this section."                                                                                      
                                                                                                                                
Page 35, line 10, following "APPLICABILITY.":                                                                                   
     Insert "(a)"                                                                                                               
                                                                                                                                
Page 35, following line 11:                                                                                                     
     Insert a new subsection to read:                                                                                           
     "(b) The limitations on the use of tax credits added in                                                                    
AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a),                                                            
as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by                                                               
sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this                                                             
Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and                                                                    
AS 43.55.025(q), added by sec. 25 of this Act, apply to credits applied                                                         
to reduce a tax liability for a tax year starting on or after the effective                                                     
date of secs. 12, 13, 16, 20, 21, and 25 of this Act."                                                                          
                                                                                                                                
Representative Seaton moved and asked unanimous consent that                                                                    
Amendment No. 12 be adopted.                                                                                                    
                                                                                                                                
Representative Pruitt objected.                                                                                                 
                                                                                                                                
The question being:  "Shall Amendment No. 12 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 12                                                                                                                
                                                                                                                                
YEAS:  19   NAYS:  19   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Edgmon, Foster, Gara, Guttenberg,                                                                      
Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz,                                                                
Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool                                                                                     
                                                                                                                                
Nays:  Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn,                                                                 
Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico,                                                            
Thompson, Tilton, Vazquez, Wilson                                                                                               
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2265
Excused:  Colver, Hawker                                                                                                        
                                                                                                                                
And so, Amendment No. 12 was not adopted.                                                                                       
                                                                                                                                
Amendment No. 13 was offered by Representative Seaton:                                                                          
                                                                                                                                
Page 15, following line 9:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 14. AS 43.55.023(a) is amended to read:                                                                               
         (a)  A producer or explorer may take a tax credit for a                                                                
     qualified capital expenditure as follows:                                                                                  
              (1)  notwithstanding that a qualified capital expenditure                                                         
     may be a deductible lease expenditure for purposes of calculating                                                          
     the production tax value of oil and gas under AS 43.55.160(a),                                                             
     unless a credit for that expenditure is taken under AS 38.05.180(i),                                                       
     AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or                                                                 
     explorer that incurs a qualified capital expenditure                                                                       
                  (A)  south of 68 degrees North latitude and outside                                                       
         the Cook Inlet sedimentary basin may also elect to apply a                                                         
         tax credit against a tax levied by AS 43.55.011(e) in the                                                              
         amount of 20 percent of that expenditure;                                                                              
                  (B)  in the Cook Inlet sedimentary basin before                                                           
         July 1, 2016, may also elect to apply a tax credit against a                                                       
         tax levied by AS 43.55.011(e) in the amount of 20 percent                                                          
         of that expenditure;                                                                                               
              (2)  a producer or explorer may take a credit for a                                                               
     qualified capital expenditure incurred in connection with                                                                  
     geological or geophysical exploration or in connection with an                                                             
     exploration well only if the producer or explorer                                                                          
                  (A)  agrees, in writing, to the applicable provisions of                                                      
         AS 43.55.025(f)(2); and                                                                                                
                  (B)  submits to the Department of Natural Resources                                                           
         all data that would be required to be submitted under                                                                  
         AS 43.55.025(f)(2);                                                                                                    
              (3)  a credit for a qualified capital expenditure incurred to                                                     
     explore for, develop, or produce oil or gas deposits located north                                                         
     of 68 degrees North latitude may be taken only if the expenditure                                                          
     is incurred before January 1, 2014."                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               

2016-04-12                     House Journal                      Page 2266
Page 15, line 10, following "AS 43.55.023(a)":                                                                                  
     Insert ", as amended by sec. 14 of this Act,"                                                                              
                                                                                                                                
Page 15, lines 17 - 19:                                                                                                         
     Delete "may also elect to apply a tax credit against a tax levied by                                                       
AS 43.55.011(e) in the amount of 10 [20] percent of that expenditure"                                                       
     Insert "(A) south of 68 degrees North latitude and outside the                                                             
Cook Inlet sedimentary basin may also elect to apply a tax credit                                                               
against a tax levied by AS 43.55.011(e) in the amount of 10 [20]                                                            
percent of that expenditure;                                                                                                    
                  (B)  in the Cook Inlet sedimentary basin before                                                               
         July 1, 2016, may also elect to apply a tax credit against a tax                                                       
         levied by AS 43.55.011(e) in the amount of 20 percent of that                                                          
         expenditure;"                                                                                                          
                                                                                                                                
Page 16, line 17, following "December 31, 2016,":                                                                           
     Insert "and before January 1, 2018,"                                                                                   
                                                                                                                                
Page 16, line 19:                                                                                                               
     Delete "10"                                                                                                            
     Insert "25"                                                                                                            
     Delete "loss."                                                                                                         
     Insert "loss. For lease expenditures incurred after                                                                    
December 31, 2017, to explore for, develop, or produce oil or gas                                                           
deposits located in the Cook Inlet sedimentary basin, a producer                                                            
or explorer may elect to take a credit in the amount of 20 percent                                                          
of a carried-forward annual loss."                                                                                          
                                                                                                                                
Page 18, lines 18 - 19:                                                                                                         
     Delete "January 1, 2018"                                                                                               
     Insert "January 1, 2017"                                                                                               
                                                                                                                                
Page 18, lines 20 - 21:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Reletter the following subparagraph accordingly.                                                                                
                                                                                                                                
Page 18, line 24:                                                                                                               
     Delete "December 31, 2017"                                                                                             
     Insert "December 31, 2016"                                                                                             

2016-04-12                     House Journal                      Page 2267
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "27, and 28"                                                                                                        
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 18, 19, 29, 36, and 37"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 34"                                                                                                           
                                                                                                                                

2016-04-12                     House Journal                      Page 2268
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 25, 44, and 48"                                                                                           
                                                                                                                                
Page 37, following line 3:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 51. Section 14 of this Act takes effect July 1, 2016."                                                                
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 18, 19, 29 - 31, 34 - 38, 40, 43, 46, and 47"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 50 - 52"                                                                                                     
                                                                                                                                
Representative Seaton moved and asked unanimous consent that                                                                    
Amendment No. 13 be adopted.                                                                                                    
                                                                                                                                
Representative Wilson objected.                                                                                                 
                                                                                                                                
**The presence of Representative Colver, who was excused (page                                                                  
2211) was noted.                                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 13 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN)(title am)                                                                                                         
Second Reading                                                                                                                  
Amendment No. 13                                                                                                                
                                                                                                                                
YEAS:  20   NAYS:  19   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                

2016-04-12                     House Journal                      Page 2269
Yeas:  Claman, Colver, Drummond, Edgmon, Foster, Gara,                                                                          
Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux,                                                                  
Munoz, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool                                                                       
                                                                                                                                
Nays:  Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn,                                                                 
Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico,                                                            
Thompson, Tilton, Vazquez, Wilson                                                                                               
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
And so, Amendment No. 13 was adopted.                                                                                           
                                                                                                                                
Amendment No. 14 was offered by Representatives Tuck, Kito,                                                                     
Kawasaki, Tarr, Josephson, Kreiss-Tomkins, Spohnholz, Gara, Ortiz,                                                              
Guttenberg, and Drummond:                                                                                                       
                                                                                                                                
Page 5, following line 4:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 10. AS 43.55.011(e) is amended to read:                                                                               
         (e)  There is levied on the producer of oil or gas a tax for all                                                       
     oil and gas produced each calendar year from each lease or                                                                 
     property in the state, less any oil and gas the ownership or right to                                                      
     which is exempt from taxation or constitutes a landowner's royalty                                                         
     interest or for which a tax is levied by AS 43.55.014. Except as                                                           
     otherwise provided under (f), (j), (k), (o), and (p) of this section,                                                      
     for oil and gas produced                                                                                                   
              (1)  before January 1, 2014, the tax is equal to the sum of                                                       
                  (A)  the annual production tax value of the taxable oil                                                       
         and gas as calculated under AS 43.55.160(a)(1) multiplied by                                                           
         25 percent; and                                                                                                        
                  (B)  the sum, over all months of the calendar year, of                                                        
           the tax amounts determined under (g) of this section;                                                               
              (2)  on and after January 1, 2014, and before January 1,                                                      
     2017 [JANUARY 1, 2022], the tax is equal to the annual                                                                 
     production tax value of the taxable oil and gas as calculated under                                                        
     AS 43.55.160(a)(1) multiplied by 35 percent;                                                                               
              (3)  on and after January 1, 2017, and before                                                                 
     January 1, 2022, the tax is equal to the sum of                                                                        
                  (A)  the annual production tax value of the taxable                                                       
         oil and gas as calculated under AS 43.55.160(a)(1)                                                                 
         multiplied by 35 percent; and                                                                                      

2016-04-12                     House Journal                      Page 2270
                  (B)  the sum, over all the months of the calendar                                                         
         year, of the amounts determined under (g) of this section;                                                         
              (4)  on and after January 1, 2022, the tax for                                                               
                  (A)  oil is equal to the sum of                                                                           
                       (i)  the annual production tax value of the taxable                                                  
              oil as calculated under AS 43.55.160(h) multiplied by 35                                                          
              percent; and                                                                                                  
                       (ii)  the sum, over all the months of the                                                            
              calendar year, of the amounts determined under (g) of                                                         
              this section;                                                                                                 
                  (B)  gas is equal to 13 percent of the gross value at                                                         
         the point of production of the taxable gas; if the gross value at                                                      
         the point of production of gas produced from a lease or                                                                
         property is less than zero, that gross value at the point of                                                           
         production is considered zero for purposes of this                                                                     
         subparagraph."                                                                                                         
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 7, following line 3:                                                                                                       
     Insert a new bill section to read:                                                                                         
"* Sec. 12. AS 43.55.011(g) is amended to read:                                                                               
         (g)  For purposes of (e) of this section, the tax amount is                                                        
     determined as follows:                                                                                                 
         (1) before January 1, 2014, for [FOR] each month of a                                                              
     calendar year [BEFORE 2014] for which the producer's average                                                               
     monthly production tax value under AS 43.55.160(a)(2) of a BTU                                                             
     equivalent barrel of the taxable oil and gas is more than $30, the                                                         
     amount of tax for purposes of (e)(1)(B) of this section is                                                                 
     determined by multiplying the monthly production tax value of                                                              
     the taxable oil and gas produced during the month by the tax rate                                                          
     calculated as follows:                                                                                                     
              (A) [(1)]  if the producer's average monthly production                                                       
     tax value of a BTU equivalent barrel of the taxable oil and gas for                                                        
     the month is not more than $92.50, the tax rate is 0.4 percent                                                             
     multiplied by the number that represents the difference between                                                            
     that average monthly production tax value of a BTU equivalent                                                              
     barrel and $30; or                                                                                                         
              (B) [(2)]  if the producer's average monthly production                                                       
     tax value of a BTU equivalent barrel of the taxable oil and gas for                                                        

2016-04-12                     House Journal                      Page 2271
     the month is more than $92.50, the tax rate is the sum of 25                                                               
     percent and the product of 0.1 percent multiplied by the number                                                            
     that represents the difference between the average monthly                                                                 
     production tax value of a BTU equivalent barrel and $92.50,                                                                
     except that the sum determined under this subparagraph                                                                 
     [PARAGRAPH] may not exceed 50 percent;                                                                                 
              (2) on or after January 1, 2017, for each month of the                                                        
     calendar year for which the producer's average monthly                                                                 
     production tax value under AS 43.55.160(a)(2) of a BTU                                                                 
     equivalent barrel of the taxable oil and gas is more than $50,                                                         
     the difference between the monthly production tax value of a                                                           
     BTU equivalent barrel and $50 multiplied by the volume of oil                                                          
     and gas produced by the producer for the month multiplied by                                                           
     10 percent."                                                                                                           
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 11, line 4:                                                                                                                
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 11, line 18:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 11, line 30:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 12, line 8:                                                                                                                
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 13, line 10:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  

2016-04-12                     House Journal                      Page 2272
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 13, line 25:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 14, line 3:                                                                                                                
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 14, line 17:                                                                                                               
     Delete "35 percent"                                                                                                        
     Insert "the sum of 35 percent and the tax rate calculated for the                                                  
month under AS 43.55.011(g), as applicable,"                                                                                
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "28, and 29"                                                                                                        
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "secs. 17, 18, 28, 35, and 36"                                                                                      
     Insert "secs. 19, 20, 30, 37, and 38"                                                                                      
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           

2016-04-12                     House Journal                      Page 2273
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 35"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 26, 45, and 49"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46"                                                             
     Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48"                                                             
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 51 and 52"                                                                                                   
                                                                                                                                
Representative Tuck moved and asked unanimous consent that                                                                      
Amendment No. 14 be adopted.                                                                                                    
                                                                                                                                
Representative Thompson objected.                                                                                               

2016-04-12                     House Journal                      Page 2274
The question being:  "Shall Amendment No. 14 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 14                                                                                                                
                                                                                                                                
YEAS:  13   NAYS:  26   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki,                                                                 
Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool                                                                        
                                                                                                                                
Nays:  Chenault, Colver, Edgmon, Foster, Gattis, Herron, Hughes,                                                                
Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman,                                                                  
Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson,                                                           
Tilton, Vazquez, Wilson                                                                                                         
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
And so, Amendment No. 14 was not adopted.                                                                                       
                                                                                                                                
Amendment No. 15 was offered by Representative Seaton:                                                                          
                                                                                                                                
Page 23, lines 9 - 10:                                                                                                          
     Delete "With the applicant's or claimant's consent, the"                                                                   
     Insert "The"                                                                                                               
                                                                                                                                
Page 32, line 24, following "subdivisions;":                                                                                    
     Insert "and"                                                                                                               
                                                                                                                                
Page 32, line 26:                                                                                                               
     Delete "; and"                                                                                                             
     Insert "."                                                                                                                 
                                                                                                                                
Page 32, lines 27 - 29:                                                                                                         
     Delete all material.                                                                                                       
                                                                                                                                
Page 33, lines 16 - 21:                                                                                                         
     Delete all material and insert:                                                                                            
              "(1)  material, equipment, and supplies delivered in the                                                          
     state;                                                                                                                     
              (2) labor, including employee benefits;                                                                           
              (3) taxes and other amounts due to the city and borough,                                                          

2016-04-12                     House Journal                      Page 2275
     in that order;                                                                                                             
              (4) repair of public facilities;                                                                                  
              (5) taxes and other amounts due to the state."                                                                   
                                                                                                                                
Representative Seaton moved and asked unanimous consent that                                                                    
Amendment No. 15 be adopted.                                                                                                    
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 15 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 15                                                                                                                
                                                                                                                                
YEAS:  20   NAYS:  19   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Colver, Drummond, Edgmon, Foster, Gara,                                                                          
Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux,                                                                  
Munoz, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool                                                                       
                                                                                                                                
Nays:  Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn,                                                                 
Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico,                                                            
Thompson, Tilton, Vazquez, Wilson                                                                                               
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
And so, Amendment No. 15 was adopted.                                                                                           
                                                                                                                                
Amendment No. 16 was offered by Representative Thompson:                                                                        
                                                                                                                                
Page 25, line 30:                                                                                                               
     Delete "five"                                                                                                          
     Insert "seven"                                                                                                         
                                                                                                                                
Page 26, lines 2 - 3:                                                                                                           
     Delete "January 1, 2021"                                                                                               
     Insert "January 1, 2023"                                                                                               
                                                                                                                                
Representative Thompson moved and asked unanimous consent that                                                                  
Amendment No. 16 be adopted.                                                                                                    
                                                                                                                                

2016-04-12                     House Journal                      Page 2276
Representative Kawasaki objected.                                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 16 be adopted?"  The roll                                                             
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 16                                                                                                                
                                                                                                                                
YEAS:  21   NAYS:  17   EXCUSED:  1   ABSENT:  1                                                                              
                                                                                                                                
Yeas:  Chenault, Colver, Gattis, Herron, Hughes, Johnson, Keller,                                                               
Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold,                                                                  
Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson                                                                            
                                                                                                                                
Nays:  Claman, Drummond, Edgmon, Foster, Gara, Guttenberg,                                                                      
Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Seaton,                                                                       
Spohnholz, Stutes, Tarr, Tuck, Wool                                                                                             
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
Absent:  LeDoux                                                                                                                 
                                                                                                                                
And so, Amendment No. 16 was adopted.                                                                                           
                                                                                                                                
Amendment No. 17 was offered by Representative Thompson:                                                                        
                                                                                                                                
Page 6, lines 2 - 5:                                                                                                            
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 6, lines 8 - 11:                                                                                                           
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 19, line 22, through page 20, line 27:                                                                                     
     Delete all material.                                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               

2016-04-12                     House Journal                      Page 2277
Page 35, line 10, following "APPLICABILITY.":                                                                                   
     Insert "(a)"                                                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "25, and 26"                                                                                                        
                                                                                                                                
Page 35, following line 11:                                                                                                     
     Insert a new subsection to read:                                                                                           
     "(b)  The limitations on the use of tax credits added in                                                                   
AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a),                                                            
as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by                                                               
sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this                                                             
Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and                                                                    
AS 43.55.025(q), added by sec. 24 of this Act, apply to credits applied                                                         
to reduce a tax liability for a tax year starting on or after the effective                                                     
date of secs. 12, 13, 16, 20, 21, and 24 of this Act."                                                                          
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "28, 35, and 36"                                                                                                    
     Insert "27, 34, and 35"                                                                                                    
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           

2016-04-12                     House Journal                      Page 2278
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 32"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 41"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "Sections 24, 43, and 47"                                                                                           
     Insert "Sections 23, 42, and 46"                                                                                           
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "28 - 30, 33 - 37, 39, 42, 45, and 46"                                                                              
     Insert "27 - 29, 32 - 36, 38, 41, 44, and 45"                                                                              
                                                                                                                                
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 48 and 49"                                                                                                   
                                                                                                                                
Representative Thompson moved and asked unanimous consent that                                                                  
Amendment No. 17 be adopted.                                                                                                    
                                                                                                                                
Representative Gara objected.                                                                                                   
                                                                                                                                
Representative Thompson moved and asked unanimous consent to                                                                    
withdraw Amendment No. 17.  There being no objection, it was so                                                                 
ordered.                                                                                                                        

2016-04-12                     House Journal                      Page 2279
Amendment No. 18 was offered by Representative Thompson:                                                                        
                                                                                                                                
Page 23, following line 2:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 27. AS 43.55.028(g) is amended to read:                                                                               
         (g)  The department shall [MAY] adopt regulations to carry                                                         
     out the purposes of this section, including standards and                                                                  
     procedures to allocate available money among applications for                                                              
     purchases under this chapter and claims for refunds and payments                                                           
     under AS 43.20.046, 43.20.047, or 43.20.053 when the total                                                                 
     amount of the applications for purchase and claims for refund                                                              
     exceed the amount of available money in the fund. The regulations                                                          
     adopted by the department                                                                                                  
              (1)  may not, when allocating available money in the fund                                                     
     under this section, distinguish an application for the purchase of a                                                       
     credit certificate issued under former AS 43.55.023(m) or a claim                                                          
     for a refund or payment under AS 43.20.046, 43.20.047, or                                                                  
     43.20.053;                                                                                                             
              (2)  must grant a preference to an applicant if at least                                                      
     75 percent of the applicant's workforce in the state in the                                                            
     previous calendar year was composed of resident workers; in                                                            
     this paragraph, "resident worker" has the meaning given in                                                             
     AS 43.40.092(b)."                                                                                                      
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "27"                                                                                                                
     Insert "28"                                                                                                                
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "28, 35, and 36"                                                                                                    
     Insert "29, 36, and 37"                                                                                                    
                                                                                                                                
Page 35, line 18:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           

2016-04-12                     House Journal                      Page 2280
Page 35, line 21:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 23:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 26:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 29:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 35, line 31:                                                                                                               
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 4:                                                                                                                
     Delete "sec. 33"                                                                                                           
     Insert "sec. 34"                                                                                                           
                                                                                                                                
Page 36, line 5:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 36, line 7:                                                                                                                
     Delete "sec. 42"                                                                                                           
     Insert "sec. 43"                                                                                                           
                                                                                                                                
Page 37, line 2:                                                                                                                
     Delete "43, and 47"                                                                                                        
     Insert "44, and 48"                                                                                                        
                                                                                                                                
Page 37, line 4:                                                                                                                
     Delete "28 - 30, 33 - 37, 39, 42, 45, and 46"                                                                              
     Insert "29 - 31, 34 - 38, 40, 43, 46, and 47"                                                                              
                                                                                                                                

2016-04-12                     House Journal                      Page 2281
Page 37, line 6:                                                                                                                
     Delete "secs. 49 and 50"                                                                                                   
     Insert "secs. 50 and 51"                                                                                                   
                                                                                                                                
Representative Thompson moved and asked unanimous consent that                                                                  
Amendment No. 18 be adopted.                                                                                                    
                                                                                                                                
Representative Guttenberg objected.                                                                                             
                                                                                                                                
Amendment to Amendment No. 18 was offered by Representatives                                                                    
Guttenberg, Kawasaki, and Tuck:                                                                                                 
                                                                                                                                
Under (2):                                                                                                                  
 Delete "75"                                                                                                                
 Insert "80"                                                                                                                
                                                                                                                                
Representative Guttenberg moved and asked unanimous consent that                                                                
Amendment to Amendment No. 18 be adopted.                                                                                       
                                                                                                                                
Representative Neuman objected and withdrew the objection.  There                                                               
being no further objection, Amendment to Amendment 18 was                                                                       
adopted.                                                                                                                        
                                                                                                                                
There being no further objection, Amendment No. 18 as amended was                                                               
adopted.                                                                                                                        
                                                                                                                                
CSHB 247(FIN) am was automatically in third reading.                                                                            
                                                                                                                                
Representative Josephson moved and asked unanimous consent that                                                                 
CSHB 247(FIN) am be returned to second reading for the specific                                                                 
purpose of considering Amendment No. 3.  There being no objection,                                                              
it was so ordered.                                                                                                              
                                                                                                                                
The Speaker stated that, without objection, CSHB 247(FIN) am would                                                              
be returned to second reading for all amendments.                                                                               
                                                                                                                                
Amendment No. 3 was offered by Representatives Josephson,                                                                       
Kawasaki, Tarr, Gara, Kreiss-Tomkins, Drummond, Tuck, and Kito:                                                                 
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2282
Page 6, line 1:                                                                                                                 
     Delete "[(A)] four"                                                                                                        
     Insert "five [(A) FOUR]"                                                                                               
                                                                                                                                
Page 6, lines 2 - 5:                                                                                                            
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 6, line 8:                                                                                                                 
     Delete "four"                                                                                                          
     Insert "five"                                                                                                          
                                                                                                                                
Page 6, lines 8 - 11:                                                                                                           
     Delete ", except that a credit authorized under this chapter                                                           
may reduce the tax under this subsection to less than four percent,                                                         
but not to less than two percent of the gross value at the point of                                                         
production"                                                                                                                 
                                                                                                                                
Page 35, line 10, following "APPLICABILITY.":                                                                                   
     Insert "(a)"                                                                                                               
                                                                                                                                
Page 35, following line 11:                                                                                                     
     Insert a new subsection to read:                                                                                           
     "(b)  The limitations on the use of tax credits added in                                                                   
AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a),                                                            
as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by                                                               
sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this                                                             
Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and                                                                    
AS 43.55.025(q), added by sec. 25 of this Act, apply to credits applied                                                         
to reduce a tax liability for a tax year starting on or after the effective                                                     
date of secs. 12, 13, 16, 20, 21, and 25 of this Act."                                                                          
                                                                                                                                
Representative Josephson moved and asked unanimous consent that                                                                 
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
                                                                                                                                

2016-04-12                     House Journal                      Page 2283
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  17   NAYS:  22   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Foster, Gara, Guttenberg, Josephson,                                                                   
Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Ortiz, Seaton, Spohnholz,                                                               
Stutes, Tarr, Tuck, Wool                                                                                                        
                                                                                                                                
Nays:  Chenault, Colver, Edgmon, Gattis, Herron, Hughes, Johnson,                                                               
Keller, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt,                                                                    
Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson                                                                  
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 5 was offered by Representatives Tarr, Kawasaki,                                                                  
Kreiss-Tomkins, Drummond, Gara, Tuck, and Kito:                                                                                 
                                                                                                                                
Page 16, line 12:                                                                                                               
     Delete "For"                                                                                                           
      Insert "Subject to the limitations in (q) of this section, for"                                                      
                                                                                                                                
Page 16, line 16:                                                                                                               
     Delete "For"                                                                                                           
      Insert "Subject to the limitations in (q) of this section, for"                                                      
                                                                                                                                
Page 19, following line 3:                                                                                                      
     Insert a new bill section to read:                                                                                         
"* Sec. 20. AS 43.55.023 is amended by adding new subsections to                                                              
read:                                                                                                                           
         (q)  In a single calendar year, the department may not grant a                                                         
     credit accrued under (b) of this section against the taxes due under                                                       
     this chapter and a cash payment under AS 43.55.028 resulting                                                               
     from a credit under (b) of this section if the credit or payment, or                                                       
     the sum of the credit and payment, exceeds                                                                                 
              (1)  $25,000,000 for each person;                                                                                 
              (2)  $100,000,000 for each unit.                                                                                  

2016-04-12                     House Journal                      Page 2284
         (r)  If the total application of credits accrued under (b) of this                                                     
     section against taxes due under this chapter and applications for                                                          
     cash payments under AS 43.55.028 resulting from a credit under                                                             
     (b) of this section exceed $100,000,000 for each unit, the                                                                 
     department shall prorate the application of credits accrued under                                                          
     (b) of this section against taxes due under this chapter and                                                               
     applications for cash payments under AS 43.55.028 resulting from                                                           
     a credit under (b) of this section by ownership interest in the unit."                                                     
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 22, following line 8:                                                                                                      
     Insert a new bill section to read:                                                                                         
   "* Sec. 27. AS 43.55.028(a) is amended to read:                                                                          
         (a) The oil and gas tax credit fund is established as a separate                                                       
     fund of the state. The purpose of the fund is to purchase                                                                  
     transferable tax credit certificates issued under AS 43.55.023 and                                                         
     production tax credit certificates issued under AS 43.55.025 and                                                           
     to pay refunds and payments claimed under AS 43.20.046,                                                                    
     43.20.047, or 43.20.053. A purchase of a transferable tax credit                                                       
     certificate issued under AS 43.55.023 is subject to the                                                                
     limitations in AS 43.55.023(q)."                                                                                       
                                                                                                                                
Renumber the following bill sections accordingly.                                                                               
                                                                                                                                
Page 35, line 10:                                                                                                               
     Delete "26, and 27"                                                                                                        
     Insert "27, and 29"                                                                                                        
                                                                                                                                
Page 35, lines 15 - 16:                                                                                                         
     Delete "sec. 42"                                                                                                           
     Insert "sec. 44"                                                                                                           
                                                                                                                                
Page 35, line 17:                                                                                                               
     Delete "28, 35, and 36"                                                                                                    
     Insert "30, 37, and 38"                                                                                                    
                                                                                                                                
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Representative Tarr moved and asked unanimous consent that                                                                      
Amendment No. 5 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 5 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 247(FIN) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 5                                                                                                                 
                                                                                                                                
YEAS:  17   NAYS:  22   EXCUSED:  1   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Claman, Drummond, Edgmon, Foster, Gara, Guttenberg,                                                                      
Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Seaton,                                                                       
Spohnholz, Stutes, Tarr, Tuck, Wool                                                                                             
                                                                                                                                
Nays:  Chenault, Colver, Gattis, Herron, Hughes, Johnson, Keller,                                                               
LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt,                                                                    
Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson                                                                  
                                                                                                                                
Excused:  Hawker                                                                                                                
                                                                                                                                
And so, Amendment No. 5 was not adopted.                                                                                        
                                                                                                                                
CSHB 247(FIN) am was automatically in third reading.                                                                            
                                                                                                                                
The Speaker stated that, without objection, CSHB 247(FIN) am would                                                              
be held in third reading to tomorrow's calendar.