Legislature(2017 - 2018)
2018-05-03 House Journal
Full Journal pdf2018-05-03 House Journal Page 3554 HB 331 The following, which was held to today's calendar (page 3540), was read the second time: HOUSE BILL NO. 331 "An Act establishing the Alaska Tax Credit Certificate Bond Corporation; relating to purchases of tax credit certificates; relating to overriding royalty interest agreements; and providing for an effective date." with the: Journal Page RES RPT 4DP 1DNP 2NR 2AM 3157 FN1: ZERO(DNR) 3158 FN2: (REV) 3158 FIN RPT CS(FIN) NT 4DP 1DNP 4NR 2AM 3537 FN1: ZERO(DNR) 3538 FN3: (REV) 3538 FN4: (REV) 3538 FN5: (REV/DEBT SERVICE) 3538 Representative Tuck moved and asked unanimous consent that the following committee substitute be adopted in lieu of the original bill: CS FOR HOUSE BILL NO. 331(FIN) "An Act establishing the Alaska Tax Credit Certificate Bond Corporation; relating to the issuance of bonds by the Alaska Tax Credit Certificate Bond Corporation; relating to purchases of tax credit certificates and refunds and payments of tax credits; relating to the oil and gas tax credit fund; relating to overriding royalty interest agreements; providing for an effective date by repealing the effective date of secs. 2, 5, 8, 10, 31, 37, and 40, ch. 3, SSSLA 2017; and providing for an effective date." 2018-05-03 House Journal Page 3555 There being no objection, it was so ordered. **The presence of Representative Kreiss-Tomkins was noted. Amendment No. 1 was offered by Representative Kawasaki: Page 2, line 21, following "bonds.": Insert "The corporation may issue bonds under this section only if it makes a finding that, both before and after the issuance of the bonds, the state bond rating will be the equivalent of AA- or better." Page 7, line 12, following "inhabitants": Insert "and the state bond rating, both before and after the issuance of refunding bonds, will be the equivalent of AA- or better" Representative Kawasaki moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Seaton objected. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHB 331(FIN) Second Reading Amendment No. 1 YEAS: 10 NAYS: 28 EXCUSED: 2 ABSENT: 0 Yeas: Drummond, Eastman, Kawasaki, LeDoux, Neuman, Ortiz, Parish, Spohnholz, Tarr, Tuck Nays: Birch, Claman, Edgmon, Foster, Gara, Grenn, Guttenberg, Johnson, Johnston, Josephson, Kito, Knopp, Kopp, Kreiss-Tomkins, Lincoln, Millett, Pruitt, Rauscher, Reinbold, Saddler, Seaton, Stutes, Sullivan-Leonard, Talerico, Tilton, Wilson, Wool, Zulkosky Excused: Chenault, Thompson And so, Amendment No. 1 was not adopted. 2018-05-03 House Journal Page 3556 Amendment No. 2 was offered by Representative Kawasaki: Page 20, following line 24: Insert a new bill section to read: "* Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT; NOTIFICATION. (a) Sections 1 - 14 and 17 of this Act take effect only if, before January 1, 2020, a court enters a final judgment that the issuance of bonds under AS 37.18, added by sec. 2 of this Act, does not violate the restrictions on contracting debt under art. IX, Constitution of the State of Alaska. (b) The commissioner of revenue shall notify the revisor of statutes in writing if a court enters a final judgment that the issuance of bonds under AS 37.18, added by sec. 2 of this Act, does not violate the restrictions on contracting debt under art. IX, Constitution of the State of Alaska." Renumber the following bill sections accordingly. Page 20, following line 25: Insert a new bill section to read: "* Sec. 18. If, under sec. 16 of this Act, secs. 1 - 14 and 17 of this Act take effect, they take effect on the day after the date of notification under sec. 16(b) of this Act." Renumber the following bill section accordingly. Page 20, line 26: Delete "This" Insert "Except as provided in sec. 18 of this Act, this" Representative Kawasaki moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Seaton objected. Representative Kito rose to a point of order regarding keeping comments to the amendment and not discussing the provisions of the bill. 2018-05-03 House Journal Page 3557 The Speaker stated that the point was well taken. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 331(FIN) Second Reading Amendment No. 2 YEAS: 7 NAYS: 31 EXCUSED: 2 ABSENT: 0 Yeas: Eastman, Kawasaki, LeDoux, Neuman, Parish, Tarr, Tuck Nays: Birch, Claman, Drummond, Edgmon, Foster, Gara, Grenn, Guttenberg, Johnson, Johnston, Josephson, Kito, Knopp, Kopp, Kreiss-Tomkins, Lincoln, Millett, Ortiz, Pruitt, Rauscher, Reinbold, Saddler, Seaton, Spohnholz, Stutes, Sullivan-Leonard, Talerico, Tilton, Wilson, Wool, Zulkosky Excused: Chenault, Thompson And so, Amendment No. 2 was not adopted. Amendment No. 3 was offered by Representative Kawasaki: Page 1, line 4, following "agreements;" (title amendment): Insert "authorizing an advisory vote on the issuance of bonds that is contingent on the findings of the state bond committee;" Page 3, line 2: Delete "and ratification by qualified voters of the state" Page 7, line 14: Delete "or ratified by qualified voters of the state" Page 19, line 22: Delete "NOTICE" Insert "ISSUANCE OF BONDS AND OUTSTANDING APPLICATIONS; NOTIFICATION" Page 20, following line 12: Insert new bill sections to read: "* Sec. 15. The uncodified law of the State of Alaska is amended by 2018-05-03 House Journal Page 3558 adding a new section to read: DETERMINATION ON BONDS; NOTIFICATION TO REVISOR OF STATUTES. (a) Within 90 days after the effective date of this section, the state bond committee, established under AS 37.15.110, shall determine whether the failure of the legislature to appropriate, at any time, the amount necessary for the required debt service reserve for bonds issued under AS 37.18, added by sec. 2 of this Act, would (1) likely impair the credit rating of the state; or (2) not likely impair the credit rating of the state. (b) The commissioner of commerce, community, and economic development, as chair of the state bond committee, shall notify the revisor of statutes within one day after the committee's determination under (a)(1) or (2) of this section. * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to read: ADVISORY VOTE. At the next statewide election, the lieutenant governor shall place before the qualified voters of the state a question advisory to the legislature and the governor. The question shall appear on the ballot in the following form: Q U E S T I O N Do you approve of the issuance of bonds to finance purchases and payments under AS 43.55.028 of oil and gas transferable tax credit certificates issued under AS 43.55.023, production tax credit certificates issued under AS 43.55.025, and payments and refunds claimed under AS 43.20.046, 43.20.047, or 43.20.053? Yes [ ] No [ ]" Renumber the following bill sections accordingly. Page 20, following line 24: Insert a new bill section to read: "* Sec. 18. The uncodified law of the State of Alaska is amended by adding a new section to read: CONDITIONAL EFFECT. (a) Sections 1 - 14 and 19 of this Act take effect only if the commissioner of commerce, community, and economic development, as chair of the state bond committee, notifies 2018-05-03 House Journal Page 3559 the revisor of statutes under sec. 15 of this Act. (b) Section 16 of this Act takes effect only if the commissioner of commerce, community, and economic development, as chair of the state bond committee, notifies the revisor of statutes under sec. 15(a)(1) of this Act that the committee determined that failure of the legislature to appropriate, at any time, the amount necessary for the required debt service reserve for bonds issued under AS 37.18, added by sec. 2 of this Act, would likely impair the credit rating of the state." Renumber the following bill sections accordingly. Page 20, following line 25: Insert new bill sections to read: "* Sec. 20. If, under sec. 18(b) of this Act, sec. 16 of this Act takes effect, it takes effect on the day after the date the commissioner of commerce, community, and economic development, as chair of the state bond committee, notifies the revisor of statutes under secs. 15 and 18(b) of this Act. * Sec. 21. If, under sec. 18(a) of this Act, secs. 1 - 14 and 19 of this Act take effect, they take effect on the (1) day after the date the commissioner of commerce, community, and economic development, as chair of the state bond committee, notifies the revisor of statutes that the committee determined under sec. 15(a)(2) of this Act that failure of the legislature to appropriate the amount necessary would not likely impair the credit rating of the state; or (2) 90th day of the regular legislative session that begins immediately following the statewide election in which the advisory vote provided for under sec. 16 of this Act takes place." Renumber the following bill section accordingly. Page 20, line 26: Delete "This" Insert "Except as provided in secs. 20 and 21 of this Act, this" Representative Kawasaki moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Seaton objected. 2018-05-03 House Journal Page 3560 The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 331(FIN) Second Reading Amendment No. 3 YEAS: 10 NAYS: 28 EXCUSED: 2 ABSENT: 0 Yeas: Drummond, Eastman, Kawasaki, LeDoux, Neuman, Ortiz, Parish, Spohnholz, Stutes, Tuck Nays: Birch, Claman, Edgmon, Foster, Gara, Grenn, Guttenberg, Johnson, Johnston, Josephson, Kito, Knopp, Kopp, Kreiss-Tomkins, Lincoln, Millett, Pruitt, Rauscher, Reinbold, Saddler, Seaton, Sullivan-Leonard, Talerico, Tarr, Tilton, Wilson, Wool, Zulkosky Excused: Chenault, Thompson And so, Amendment No. 3 was not adopted. Representative Tuck moved and asked unanimous consent that CSHB 331(FIN) be considered engrossed, advanced to third reading, and placed on final passage. Representative Eastman objected. The question being: "Shall CSHB 331(FIN) advance to third reading on the same day?" The roll was taken with the following result: CSHB 331(FIN) Second Reading Advance to Third Reading on the Same Day YEAS: 33 NAYS: 5 EXCUSED: 2 ABSENT: 0 Yeas: Birch, Claman, Drummond, Edgmon, Foster, Gara, Grenn, Guttenberg, Johnson, Johnston, Josephson, Knopp, Kopp, Kreiss-Tomkins, LeDoux, Lincoln, Millett, Neuman, Ortiz, Pruitt, Rauscher, Reinbold, Saddler, Seaton, Spohnholz, Stutes, Sullivan-Leonard, Talerico, Tarr, Tilton, Wilson, Wool, Zulkosky Nays: Eastman, Kawasaki, Kito, Parish, Tuck 2018-05-03 House Journal Page 3561 Excused: Chenault, Thompson And so, the motion passed. CSHB 331(FIN) was read the third time. Representative Lincoln moved and asked unanimous consent to abstain from voting because of a conflict of interest. Objection was heard, and he was required to vote. The Speaker stated that many members may have a perceived conflict of interest and ruled that all members were required to vote.