Legislature(2017 - 2018)

2018-05-03 House Journal

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2018-05-03                     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.                                                                   
HB 331                                                                                                                        
CSHB 331(FIN) was before the House in third reading.                                                                            
                                                                                                                                
Representative Claman rose to a point of order regarding confining                                                              
comments to the bill.                                                                                                           
                                                                                                                                
The Speaker cautioned the member to confine remarks to the bill.                                                                
                                                                                                                                
The question being:  "Shall CSHB 331(FIN) pass the House?"  The                                                                 
roll was taken with the following result:                                                                                       
                                                                                                                                
CSHB 331(FIN)                                                                                                                   
Third Reading                                                                                                                   
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  22   NAYS:  16   EXCUSED:  2   ABSENT:  0                                                                              
                                                                                                                                
                                                                                                                                
                                                                                                                                
                                                                                                                                

2018-05-03                     House Journal                      Page 3562
Yeas:  Birch, Claman, Grenn, Johnson, Johnston, Josephson, Knopp,                                                               
Kopp, Lincoln, Millett, Ortiz, Pruitt, Rauscher, Reinbold, Saddler,                                                             
Seaton, Spohnholz, Sullivan-Leonard, Talerico, Tilton, Wilson, Wool                                                             
                                                                                                                                
Nays:  Drummond, Eastman, Edgmon, Foster, Gara, Guttenberg,                                                                     
Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Neuman, Parish, Stutes,                                                                 
Tarr, Tuck, Zulkosky                                                                                                            
                                                                                                                                
Excused:  Chenault, Thompson                                                                                                    
                                                                                                                                
And so, CSHB 331(FIN) passed the House.                                                                                         
                                                                                                                                
Representative Tuck moved the effective date clause.                                                                            
                                                                                                                                
The question being:  "Shall the effective date clause be adopted?"  The                                                         
roll was taken with the following result:                                                                                       
                                                                                                                                
CSHB 331(FIN)                                                                                                                   
Third Reading                                                                                                                   
Effective Date                                                                                                                  
                                                                                                                                
YEAS:  34   NAYS:  4   EXCUSED:  2   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Birch, Claman, Drummond, Eastman, Edgmon, Foster, Gara,                                                                  
Grenn, Guttenberg, Johnson, Johnston, Josephson, Kawasaki, Knopp,                                                               
Kopp, Kreiss-Tomkins, Lincoln, Millett, Neuman, Ortiz, Pruitt,                                                                  
Rauscher, Reinbold, Saddler, Seaton, Spohnholz, Stutes,                                                                         
Sullivan-Leonard, Talerico, Tilton, Tuck, Wilson, Wool, Zulkosky                                                                
                                                                                                                                
Nays:  Kito, LeDoux, Parish, Tarr                                                                                               
                                                                                                                                
Excused:  Chenault, Thompson                                                                                                    
                                                                                                                                
And so, the effective date clause was adopted.                                                                                  
                                                                                                                                
Representative Seaton gave notice of reconsideration of the vote on                                                             
CSHB 331(FIN).