Legislature(2011 - 2012)SENATE FINANCE 532

04/11/2012 01:00 PM FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= SB 25 AIDEA SUSTAINABLE ENERGY PROGRAM
Moved CSSSSB 25(FIN) Out of Committee
= SB 192 OIL AND GAS PRODUCTION TAX RATES
Moved CSSB 192(FIN) Out of Committee
+ HB 302 CONTRIBUTIONS FROM PFD: UNIV/AUDITS TELECONFERENCED
Scheduled But Not Heard
+ HB 366 DISASTER PLANNING AND SERVICES TELECONFERENCED
Scheduled But Not Heard
+= HCR 23 ALASKA ARCTIC POLICY COMMISSION TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 25                                                                                                            
                                                                                                                                
     "An Act relating to participation by the Alaska                                                                            
     Industrial Development and Export Authority in energy                                                                      
     projects."                                                                                                                 
                                                                                                                                
5:57:52 PM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman  MOVED  to ADOPT  the  proposed  committee                                                                    
substitute for SB 25, Work Draft 27-LS0290\S.                                                                                   
                                                                                                                                
Co-Chair Stedman OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
DARWIN PETERSON, STAFF,  SENATE FINANCE COMMITTEE, explained                                                                    
the changes for CS SB 25  version S. He stated that Sections                                                                    
3,4, and  5 had been  added to  the bill, and  would exclude                                                                    
the  value  of  the  lease  hold  interest  on  AIDEA  owned                                                                    
properties for the purpose of  determining the full and true                                                                    
value by the  state only if the local  government chooses to                                                                    
exempt that  property form the  taxation. He  furthered that                                                                    
AIDEA owned  5 major properties  in Alaska that  were leased                                                                    
to private  operators: the aircraft maintenance  facility at                                                                    
the  Ted  Stevens  International Airport,  the  Skagway  Ore                                                                    
Terminal,  the  Ketchikan Shipyard,  the  Red  Dog Road  and                                                                    
Port,  and  the  Snettisham   Hydroelectric  Dam  and  Power                                                                    
Station. He said  the full and true  value determination was                                                                    
important to municipal  governments in a number  of ways; it                                                                    
determined the magnitude of  the required local contribution                                                                    
component of  state education aid, it  impacted the required                                                                    
local share  for school construction and  major maintenance,                                                                    
it  effected  the amount  of  federal  impact aid  to  which                                                                    
municipal  school districts  were entitled,  and it  limited                                                                    
property taxing  capacity. He relayed that  the exemption of                                                                    
the  Red Dog  Road and  Port from  the determination  of the                                                                    
full  and  true  value  had  allowed  the  Northwest  Arctic                                                                    
Borough to  avoid a loss  of education funding  estimated at                                                                    
$1  million  annually.  He concluded  that  the  legislation                                                                    
would treat the rest of  the AIDEA owned properties equally,                                                                    
giving the  municipalities the  choice of  imposing property                                                                    
taxes or  opting for  the reduction  in the  local education                                                                    
contribution.                                                                                                                   
                                                                                                                                
Mr. Peterson discussed further changes in the bill:                                                                             
                                                                                                                                
     Section  6  The  following  changes were  made  to  new                                                                    
     section 6/old section 3:                                                                                                   
     1. No changes                                                                                                              
     Section  7  The  following  changes were  made  to  new                                                                    
     section 7/old section 4:                                                                                                   
     1. No changes.                                                                                                             
     Deletion  Section  5  (page  4  lines  1-15  of  the  X                                                                    
     version) was removed from the bill:                                                                                        
     1.    The   subsequent    sections   were    renumbered                                                                    
     accordingly.                                                                                                               
     Section  8  The  language  in  section  8  retains  the                                                                    
     language found in  section 6 of the X  version with the                                                                    
     following changes:                                                                                                         
     1.  Replaced "energy  project"  with "qualified  energy                                                                    
     development" on page 6, line 28 and page 7, line 23.                                                                       
     Section  9  The  language  in  section  9  retains  the                                                                    
     language found in  section 7 of the X  version with the                                                                    
     following change:                                                                                                          
     1.  Replaced "energy  project"  with "qualified  energy                                                                    
     development" on page 8, line 20.                                                                                           
     Section  10  The language  in  section  10 retains  the                                                                    
     language found  in section 8  of the X version  with no                                                                    
     changes.                                                                                                                   
     Section  11  The  language in  section  9  retains  the                                                                    
     language found  in section 9  of the X version  with no                                                                    
     changes.                                                                                                                   
     Section  12  The  language in  section  9  retains  the                                                                    
     language found in section 10  of the X version with the                                                                    
     following change:                                                                                                          
     1. Deleted  the word "energy" preceding  "loan" on page                                                                    
     9, line 17.                                                                                                                
     Section  13  The language  in  section  13 retains  the                                                                    
     language found in section 11  of the X version with the                                                                    
     following changes:                                                                                                         
     1. Deleted  the word "energy" preceding  "loan" on page                                                                    
     9, line 19.                                                                                                                
     2. Deleted  the word "energy" preceding  "loan" on page                                                                    
     9, line 28.                                                                                                                
     3. Deleted  the word "energy" preceding  "loan" on page                                                                    
     10, line 12.                                                                                                               
     Section  14  The language  in  section  14 retains  the                                                                    
     language found in section 12  of the X version with the                                                                    
     following change:                                                                                                          
     1. Deleted  the word "energy" preceding  "loan" on page                                                                    
     10, line 11.                                                                                                               
     Section  15  The language  in  section  15 retains  the                                                                    
     language found in  section 13 of the X  version with no                                                                    
     changes.                                                                                                                   
     Section  16  The language  in  section  14 retains  the                                                                    
     language found in section 14  of the X version with the                                                                    
     following changes:                                                                                                         
     1.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 11, line 9-10.                                                                                        
     2.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 12, line 2.                                                                                           
     3.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 12, line 3.                                                                                           
     4.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 12, line 7-8.                                                                                         
     5.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 12, line 13-14.                                                                                       
     6.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 12, line 17.                                                                                          
     7.  Inserted  New  Subsection (8)  granting  AIDEA  the                                                                    
     power to  pay off the  principal and interest  on bonds                                                                    
     issued  by a  municipal public  utility and  retain the                                                                    
     payments from the utility in a sinking fund.                                                                               
     8.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 13, line 1.                                                                                           
     9.  Replaced "energy  projects" with  "qualified energy                                                                    
     development" on page 13, line 8-9.                                                                                         
     Sect. 16 (Cont.)                                                                                                           
     10.  Replaced "energy  project" with  "qualified energy                                                                    
     development" on page 13, line 11-12.                                                                                       
     11.  Replaced "energy  project" with  "qualified energy                                                                    
     development" on page 13, line 14-15.                                                                                       
     Section 17  Section 17 retains the  language previously                                                                    
     found  in  section  15  of   the  X  version  with  the                                                                    
     following changes:                                                                                                         
     1.  Replaced "energy  project"  with "qualified  energy                                                                    
     development" on page 13 line 19.                                                                                           
     2. Inserted "conservation"  preceding "storage" on page                                                                    
     13, line 21.                                                                                                               
     3.  Removed  the conversion  of  natural  gas, coal  or                                                                    
     biomass to  liquids (page 11, line  8), the processing,                                                                    
     refining, or  upgrading of  oil (page  11, line  9) and                                                                    
     enhanced  oil recovery  or  carbon sequestration  (page                                                                    
     11, line  11) from the definition  of "qualified energy                                                                    
     development."                                                                                                              
     New Sect. 18 Added a  new section 16 repealing Sections                                                                    
     2 and 8 of ch. 10,  SLA 2010 (the language exempting an                                                                    
     integrated  transportation and  port facility  owned by                                                                    
     the  authority  from taxation  and  the  sunset of  the                                                                    
     exemption.)                                                                                                                
     Section 19  Section 19 retains the  language previously                                                                    
     found 16 of the X version.                                                                                                 
                                                                                                                                
6:02:31 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  no                                                                    
further objection Work Draft 27-LS0290\S was ADOPTED.                                                                           
                                                                                                                                
Senator  McGuire  remarked  that  the changes  in  the  bill                                                                    
correctly  reflected  the  current  financial  climate.  She                                                                    
relayed  interest  in  partnering with  venture  capitalists                                                                    
across  the  globe. She  hoped  that  the legislation  would                                                                    
contribute to the diversification of the state's economy.                                                                       
                                                                                                                                
6:04:13 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman  clarified that  the legislation  created a                                                                    
stable  energy and  transmission supply  development program                                                                    
intended  to generate  more energy  and electricity  for the                                                                    
state.                                                                                                                          
                                                                                                                                
Co-Chair Stedman  noted the two  fiscal notes:  FN2 (DCCED);                                                                    
NEW FN  (SFIN). He  added that  a new  fiscal note  from the                                                                    
Department  of  Education  and Early  Childhood  Development                                                                    
that reflected the changes made in  Sections 3, 4, and 5 was                                                                    
forthcoming.                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  MOVED to report CS  SS SB 25 (FIN)  out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB 25(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with   the  previously  published  zero                                                                    
fiscal note: FN2 (CED), one  new fiscal impact note from the                                                                    
Senate  Finance Committee,  and one  forthcoming zero  (EDC)                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
6:05:36 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
6:07:56 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
Explanation of changes between HB 302 and CSHB 302 (FIN) am.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 Alaska Statute 43.23.062.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 bill history - BASIS.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 IRS form 990 for tax exmpt organizations.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 Letters of Support.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 PickClickGive Information.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 302 Sponsor Statement.pdf SFIN 4/11/2012 1:00:00 PM
HB 302
HB 366 EMAC Document.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB 366 FEMA Disaster Assistance Policy DAP9523.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB 366 Model Intrastate Mutual Aid Legislation.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB 366 NIMS Core pp 9-12 Perparedness.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB366 AFCA Letter to Sen Stedman.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB366 S.Statement.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB366 Sectional Analysis.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB366 Support Letters 2.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
HB366 Support Letters.pdf SFIN 4/11/2012 1:00:00 PM
HB 366
CSHCR23 Request and Sponsor.pdf SFIN 4/11/2012 1:00:00 PM
HCR 23
SB 192 PFC Presentation SFC - April 11 2012.pptx SFIN 4/11/2012 1:00:00 PM
SB 192
SB 192 CSSB 192 Version Y.pdf SFIN 4/11/2012 1:00:00 PM
SB 192