Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/01/2012 03:30 PM Senate COMMUNITY & REGIONAL AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 204 LOANS TO COMMUNITY QUOTA ENTITIES/PERMITS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ Overview: Toxins Release Inventory TELECONFERENCED
<Above Item Removed from Agenda>
= SB 148 GAS PIPELINE PROPERTY TAX EXEMPTION
Moved CSSB 148(CRA) Out of Committee
= SB 152 LEG. APPROVAL OF BRISTOL BAY SULFIDE MINE
Heard & Held
           SB 148-GAS PIPELINE PROPERTY TAX EXEMPTION                                                                       
                                                                                                                              
3:36:18 PM                                                                                                                    
CHAIR OLSON announced  the consideration of SB 148  and asked Mr.                                                               
Scott to explain the committee substitute (CS).                                                                                 
                                                                                                                                
DAVID   SCOTT,  Staff,   Senator  Donald   Olson,  Alaska   State                                                               
Legislature  and Aide,  CRA Committee,  said version  I committee                                                               
substitute  (CS)  makes  three changes.  First,  the  legislation                                                               
sunsets in 10 years. The idea  was that this would spur a company                                                               
to act to  take advantage of the tax  exemption. Second, language                                                               
on  page  4,  lines  27-28,  clarifies  that  the  pipeline  must                                                               
transport the gas to market for  sale. Third, language on page 5,                                                               
lines 7-8, clarifies  that the state will assess  the 0.5 bcf/day                                                               
pipeline when it assesses the pipeline transportation systems.                                                                  
                                                                                                                                
CHAIR OLSON asked if the sponsor approved of the 10-year sunset.                                                                
                                                                                                                                
MR. SCOTT answered that the sponsor did not object.                                                                             
                                                                                                                                
CHAIR  OLSON asked  if  he  or the  sponsor  had  heard from  any                                                               
boroughs or  landowners that  would be  affected by  the property                                                               
tax exemption.                                                                                                                  
                                                                                                                                
MR. SCOTT said no.                                                                                                              
                                                                                                                                
CHAIR OLSON asked the reason for the third change.                                                                              
                                                                                                                                
MR.  SCOTT   answered  that  the  state   assessor  brought  that                                                               
suggestion forward.  Current statute requires the  state assessor                                                               
to find the  full and true value of oil  and gas pipeline systems                                                               
and the assessor wanted to  clarify that the 0.5 bcf/day pipeline                                                               
also needed to be assessed.                                                                                                     
                                                                                                                                
3:40:42 PM                                                                                                                    
MICHELLE SYDEMAN, Staff, Senator  Bill Wielechowski, Alaska State                                                               
Legislature, said  the sponsor was  comfortable with  the changes                                                               
made in the CS for SB 148.  The third change was an amendment the                                                               
sponsor brought  to the committee  to alleviate the  problem that                                                               
had  come up  with TAPS,  which was  that local  governments have                                                               
different ideas about  the value of an asset.  The state assessor                                                               
would  provide a  uniform valuation  for the  asset. The  sponsor                                                               
also requested the requirement to  transport the gas to market so                                                               
the  state doesn't  give  a tax  deferral to  move  gas from  one                                                               
production facility  to another. The  intention was that  the gas                                                               
would serve  Alaskans. With  regard to the  sunset, she  said the                                                               
sponsor appreciated that  the committee wanted to  create a sense                                                               
of urgency to  act but she imagined that  the Resources Committee                                                               
would  take up  that  issue,  because some  people  may think  it                                                               
should be longer.                                                                                                               
                                                                                                                                
CHAIR OLSON  found no further  questions or discussion  and asked                                                               
for a motion to adopt the CS.                                                                                                   
                                                                                                                                
3:42:20 PM                                                                                                                    
SENATOR KOOKESH  moved to adopt  the CS  for SB 148,  labeled 27-                                                               
LS0990\I.                                                                                                                       
                                                                                                                                
CHAIR OLSON found  no objection and announced that  version I was                                                               
adopted. He asked the will of the committee.                                                                                    
                                                                                                                                
3:42:42 PM                                                                                                                    
SENATOR KOOKESH  moved to report  [CS for] SB 148  from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
3:42:53 PM                                                                                                                    
CHAIR OLSON announced that without  objection CSSB 148(CRA) moved                                                               
from  the   Senate  Community   and  Regional   Affairs  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                

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