Legislature(2015 - 2016)BILL RAY CENTER 230

06/06/2016 08:00 AM CONFERENCE COMMITTEE ON HB247

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Audio Topic
08:11:51 AM Start
08:12:32 AM HB247
09:21:06 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 247 TAX;CREDITS;INTEREST;REFUNDS;O & G
-- Testimony <Invitation Only> --
           HB 247-TAX;CREDITS;INTEREST;REFUNDS;O & G                                                                        
                                                                                                                                
8:12:32 AM                                                                                                                    
                                                                                                                                
CHAIR TALERICO announced  that the only order  of business before                                                               
the Conference Committee on HB 247  would be 2d CS FOR HOUSE BILL                                                               
NO. 247(RLS)  am, "An  Act amending  the powers  of the  board of                                                               
trustees of  the Alaska Retirement Management  Board to authorize                                                               
purchase and sale of transferable  tax credit certificates issued                                                               
in conjunction with  the production tax on oil  and gas; relating                                                               
to interest  applicable to  delinquent tax;  relating to  the oil                                                               
and gas  production tax, tax  payments, and credits;  relating to                                                               
exploration incentive  credits; relating  to refunds for  the gas                                                               
storage facility  tax credit, the  liquefied natural  gas storage                                                               
facility  tax credit,  and the  qualified  in-state oil  refinery                                                               
infrastructure   expenditures  tax   credit;   relating  to   the                                                               
confidential  information  status  and public  record  status  of                                                               
information  in  the possession  of  the  Department of  Revenue;                                                               
relating to  oil and  gas lease  expenditures and  production tax                                                               
credits for municipal entities; requiring  a bond or cash deposit                                                               
with a business  license application for an oil  or gas business;                                                               
establishing  a legislative  working  group to  study the  fiscal                                                               
regime  and tax  structure and  rates  for oil  and gas  produced                                                               
south  of  68  degrees  North  latitude;  and  providing  for  an                                                               
effective  date." and  SENATE CS  FOR 2d  CS FOR  HOUSE BILL  NO.                                                               
247(FIN)  am S,  "An Act  relating to  the exploration  incentive                                                               
credits; relating to the powers and  duties of the Alaska Oil and                                                               
Gas Conservation  Commission; relating to interest  applicable to                                                               
delinquent tax; relating  to the oil and gas  production tax, tax                                                               
payments,  and  credits;  relating to  tax  credit  certificates;                                                               
relating to refunds for the  gas storage facility tax credit, the                                                               
liquefied  natural  gas  storage  facility tax  credit,  and  the                                                               
qualified in-state  oil refinery infrastructure  expenditures tax                                                               
credit;  relating   to  oil  and   gas  lease   expenditures  and                                                               
production tax  credits for municipal entities;  requiring a bond                                                               
or cash  deposit with a  business license application for  an oil                                                               
or gas business; and providing for an effective date."                                                                          
                                                                                                                                
CHAIR  TALERICO   stated  that   the  conference   committee  was                                                               
operating under  Uniform Rule 42  and public testimony  would not                                                               
be taken.   Furthermore, the  adoption of a  conference committee                                                               
report would require  an affirmative vote by the  majority of the                                                               
membership from each house.                                                                                                     
                                                                                                                                
8:13:07 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to adopt  2d CSHB 247(RLS) am, labeled                                                               
29-GH2609\C.A, as the working document.                                                                                         
                                                                                                                                
SENATOR GIESSEL objected.                                                                                                       
                                                                                                                                
SENATOR MICCICHE stated  for the record that when  the version of                                                               
the bill is  ultimately moved out of the  Conference Committee on                                                               
HB  247 and  arrives  on the  Senate  floor, he  will  ask to  be                                                               
recused  from  voting due  to  a  perceived  conflict, as  he  is                                                               
employed in the [oil and gas] industry.                                                                                         
                                                                                                                                
8:13:52 AM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives  Olson and  Tarr                                                               
voted in  favor of the motion  to adopt 2d CSHB  247(RLS) am, and                                                               
Representative  Talerico voted  against  it.   Senators  Coghill,                                                               
Micciche, and Giessel  voted against the motion to  adopt 2d CSHB                                                               
247(RLS)  am.   Therefore, the  motion failed  by a  vote of  2:1                                                               
(House) and 0:3 (Senate).                                                                                                       
                                                                                                                                
8:14:43 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved to  adopt  SCS  2d  CSHB 247(FIN)  am  S,                                                               
labeled 29-GH2609\AA.A, as the working document.                                                                                
                                                                                                                                
REPRESENTATIVE TARR objected.                                                                                                   
                                                                                                                                
8:15:06 AM                                                                                                                    
                                                                                                                                
A roll call vote was taken.   Representative Olson voted in favor                                                               
of  the  motion  to  adopt  SCS   2d  CSHB  247(FIN)  am  S,  and                                                               
Representatives  Tarr and  Talerico voted  against it.   Senators                                                               
Coghill  and  Giessel  voted  in  favor of  the  motion  for  the                                                               
committee  to  adopt SCS  2d  CSHB  247(FIN)  am S,  and  Senator                                                               
Micciche voted  against it.   Therefore, the  motion failed  by a                                                               
vote of 1:2 (House) and 2:1 (Senate).                                                                                           
                                                                                                                                
8:15:50 AM                                                                                                                    
                                                                                                                                
[Due to  technical difficulties, this  portion of the  meeting is                                                               
not captured completely on the audio recording.]                                                                                
                                                                                                                                
8:17:08 AM                                                                                                                    
                                                                                                                                
The committee took a brief at ease at 8:17 a.m.                                                                                 
                                                                                                                                
8:17:29 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved  to rescind  the  committee's  action  in                                                               
failing  to adopt  SCS 2d  CSHB 247(FIN)  am S.   There  being no                                                               
objection, SCS 2d CSHB 247(FIN) am S was before the committee.                                                                  
                                                                                                                                
8:17:52 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  moved to  adopt  SCS  2d  CSHB 247(FIN)  am  S,                                                               
labeled 29-GH2609\AA.A, as the working document.                                                                                
                                                                                                                                
A roll  call vote  was taken.   Representatives Olson,  Tarr, and                                                               
Talerico voted against  the motion to adopt SCS  2d CSHB 247(FIN)                                                               
am S.  Senators Coghill, Micciche,  and Giessel voted in favor of                                                               
the motion  to adopt SCS 2d  CSHB 247(FIN) am S.   Therefore, the                                                               
motion failed by a vote of 0:3 (House) and 3:0 (Senate).                                                                        
                                                                                                                                
8:18:47 AM                                                                                                                    
                                                                                                                                
CHAIR  TALERICO directed  attention to  a document  entitled, "HB                                                               
247  -  House/Senate  Comparison,"   included  in  the  committee                                                               
packet, which  showed the  differences in  the bills  that passed                                                               
the House and  the Senate.  Chair Talerico stated  he "would like                                                               
to use  the Senate  version as our  working document,"  and noted                                                               
there   are  four   Legislative  Legal   and  Research   Services                                                               
amendments, and  conceptual amendments offered  by Representative                                                               
Tarr, for  consideration.  The  four amendments  from Legislative                                                               
Legal  and  Research Services  deal  with  refinery tax  credits,                                                               
local hire, confidentiality tax credit purchases, and a six-                                                                    
month  extension   of  the  Frontier  Basins   exploration  [tax]                                                               
credits,  all of  which will  be discussed  and acted  upon.   He                                                               
reminded  members that  the conference  committee  does not  have                                                               
limited powers of free conference  or powers of a Free Conference                                                               
Committee.    Thus,  everything   acted  on  must  be  "mirrored"                                                               
language from one bill to the other.                                                                                            
                                                                                                                                
REPRESENTATIVE  TARR stated  that  she would  like  the chair  to                                                               
affirm that she  can offer conceptual amendments,  because due to                                                               
timing constraints, Legislative Legal  and Research Services were                                                               
unable to prepare [the amendments].                                                                                             
                                                                                                                                
CHAIR  TALERICO  responded  that  the committee  would  hear  the                                                               
[conceptual]  amendments.   He then  advised  that the  committee                                                               
needs a  working document and  entertained a motion to  adopt the                                                               
Senate version of the bill.                                                                                                     
                                                                                                                                
8:21:07 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL moved  to  adopt  [SCS 2d  CSHB  247(FIN) am  S,                                                               
labeled 29-GH2609\AA.A], as the working document.                                                                               
                                                                                                                                
8:21:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR objected, and  opined the House version moves                                                               
the conference  committee closer to the  compromise necessary for                                                               
a  bill to  pass.    She expressed  concern  that the  conference                                                               
committee would not reach a  compromise using the Senate version,                                                               
but   said  she   will  offer   amendments  to   various  points.                                                               
Representative Tarr then removed her objection.                                                                                 
                                                                                                                                
There being  no further  objection, Version  AA.A was  before the                                                               
committee.                                                                                                                      
                                                                                                                                
8:22:14 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to  adopt Amendment  1, labeled  29-                                                               
GH2609\AA.A.6, Nauman/Shutts, 6/6/16, which read:                                                                               
                                                                                                                                
     Page 4, lines 18 - 23:                                                                                                     
          Delete all material and insert:                                                                                       
       "* Sec. 9. AS 43.05.230 is amended by adding a new                                                                     
     subsection to read:                                                                                                        
          (l)  For tax credit certificates purchased by the                                                                     
        department in the preceding calendar year under                                                                         
     AS 43.55.028, the department shall make the following                                                                      
     information public by April 30 of each year:                                                                               
               (1)  the name of each person from whom the                                                                       
         department purchased a transferable tax credit                                                                         
     certificate; and                                                                                                           
               (2)  the aggregate amount of the tax credit                                                                      
         certificates purchased from the person in the                                                                          
     preceding calendar year."                                                                                                  
                                                                                                                                
8:22:17 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL objected for discussion purposes.                                                                               
                                                                                                                                
REPRESENTATIVE  OLSON informed  the  committee  that Amendment  1                                                               
adopts  the  House   version  confidentially  language  regarding                                                               
purchase  tax credits,  and requires  the  Department of  Revenue                                                               
(DOR)  to  make public  the  names  of  the companies  that  sold                                                               
credits to the  state and the amount of credits  purchased in the                                                               
previous  calendar  year; the  Senate  version  only requires  an                                                               
aggregate  amount  of  all  credits  purchased  in  the  previous                                                               
calendar  year,  without a  breakdown  by  company, [to  be  made                                                               
public].                                                                                                                        
                                                                                                                                
REPRESENTATIVE  TARR stated  the importance  of the  amendment in                                                               
"terms  of  transparency" and  in  order  to provide  the  public                                                               
information  on where  state funds  are going,  without violating                                                               
tax confidentiality  provisions.   She expressed her  support for                                                               
the amendment.                                                                                                                  
                                                                                                                                
SENATOR GIESSEL,  in response to  Chair Talerico,  maintained her                                                               
objection.                                                                                                                      
                                                                                                                                
8:23:27 AM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives Olson,  Tarr, and                                                               
Talerico  voted  in favor  of  Amendment  1.   Senators  Coghill,                                                               
Micciche, and Giessel voted in  favor of Amendment 1.  Therefore,                                                               
Amendment  1  was adopted  by  a  vote  of  3:0 (House)  and  3:0                                                               
(Senate).                                                                                                                       
                                                                                                                                
8:24:07 AM                                                                                                                    
                                                                                                                                
SENATOR  COGHILL   moved  to  adopt  Amendment   2,  labeled  29-                                                               
GH2609\AA.A.7, Nauman/Shutts, 6/6/16, which read:                                                                               
                                                                                                                                
     Page 5, lines 17 - 30:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 29, line 12:                                                                                                          
          Delete "sec. 13"                                                                                                      
          Insert "sec. 12"                                                                                                      
                                                                                                                                
     Page 29, line 13:                                                                                                          
          Delete "sec. 24"                                                                                                      
          Insert "sec. 23"                                                                                                      
                                                                                                                                
     Page 29, line 14:                                                                                                          
          Delete "sec. 26"                                                                                                      
          Insert "sec. 25"                                                                                                      
                                                                                                                                
     Page 29, line 16:                                                                                                          
          Delete "sec. 25"                                                                                                      
          Insert "sec. 24"                                                                                                      
                                                                                                                                
     Page 29, line 17:                                                                                                          
          Delete "13, and 24 - 26"                                                                                              
          Insert "12, and 23 - 25"                                                                                              
                                                                                                                                
     Page 29, line 18:                                                                                                          
          Delete "sec. 15"                                                                                                      
          Insert "sec. 14"                                                                                                      
                                                                                                                                
     Page 29, line 19:                                                                                                          
          Delete "sec. 15"                                                                                                      
          Insert "sec. 14"                                                                                                      
                                                                                                                                
     Page 29, line 23:                                                                                                          
          Delete "sec. 30"                                                                                                      
          Insert "sec. 29"                                                                                                      
                                                                                                                                
     Page 29, line 24:                                                                                                          
          Delete "sec. 35"                                                                                                      
          Insert "sec. 34"                                                                                                      
                                                                                                                                
     Page 29, line 27:                                                                                                          
          Delete "sec. 35"                                                                                                      
          Insert "sec. 34"                                                                                                      
                                                                                                                                
     Page 30, line 22:                                                                                                          
          Delete "Sections 23, 38, and 39"                                                                                      
          Insert "Sections 22, 37, and 38"                                                                                      
                                                                                                                                
     Page 30, line 24:                                                                                                          
          Delete "Sections 30, 35, and 37"                                                                                      
          Insert "Sections 29, 34, and 36"                                                                                      
                                                                                                                                
     Page 30, line 25:                                                                                                          
          Delete "secs. 40 and 41"                                                                                              
          Insert "secs. 39 and 40"                                                                                              
                                                                                                                                
8:24:13 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL objected for discussion purposes.                                                                               
                                                                                                                                
SENATOR COGHILL  explained that  the Senate  version of  the bill                                                               
added  language "stepping  down the  refinery credits";  however,                                                               
Amendment 2  removes that  language from  the Senate  version and                                                               
returns  the bill  to the  "status quo."   Senator  Coghill added                                                               
that Alaska businesses,  especially in his district,  rely on tax                                                               
credits and opined it is not good timing for a change.                                                                          
                                                                                                                                
REPRESENTATIVE TARR expressed  her support for Amendment  2.  She                                                               
stated it is  appropriate to remove this language  as the related                                                               
provisions  were  never  discussed  by a  House  committee,  thus                                                               
members of  the House may  not have  a full understanding  of the                                                               
impact of the provisions.                                                                                                       
                                                                                                                                
SENATOR  GIESSEL  recalled that  the  Senate  considered the  tax                                                               
credit  reform  bill  in  terms  of  all  tax  credits  including                                                               
refinery credits, commercial  fishing credits, education credits,                                                               
and others.  However, refinery  credits are the subject matter of                                                               
the  bill,  and  some  Alaska  refineries  are  reconfiguring  to                                                               
process and  produce asphalt,  which is a  key commodity  for the                                                               
state.   She expressed her  support for Amendment 2,  which would                                                               
return refinery credits to their  present level, and allow Alaska                                                               
refineries to become more productive.                                                                                           
                                                                                                                                
8:27:19 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL,  in response  to  Chair  Talerico, removed  her                                                               
objection  to Amendment  2.   There being  no further  objection,                                                               
Amendment 2 was adopted.                                                                                                        
                                                                                                                                
8:27:36 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON moved  to adopt  Amendment 3,  [labeled 29-                                                               
GH2609\AA.A.8, Nauman/Shutts, 6/6/16,] which read:                                                                              
                                                                                                                                
     Page 22, line 18, following "department":                                                                                  
          Insert ", when allocating available money in the                                                                  
     fund under this section,"                                                                                              
                                                                                                                                
     Page 22, lines 19 - 20:                                                                                                    
          Delete ", when allocating available money in the                                                                      
     fund under this section,"                                                                                                  
          Insert "[, WHEN ALLOCATING AVAILABLE MONEY IN THE                                                                     
     FUND UNDER THIS SECTION,]"                                                                                                 
                                                                                                                                
     Page 22, lines 23 - 25:                                                                                                    
          Delete "must grant a preference to an applicant                                                                   
     if at least 75 percent  of the applicant's workforce in                                                                
     the state  in the  previous calendar year  was composed                                                                
     of resident workers"                                                                                                   
          Insert "must grant a preference, between two                                                                      
     applicants, to  the applicant with a  higher percentage                                                                
     of  resident  workers  in  the  applicant's  workforce,                                                                
     including  workers employed  by the  applicant's direct                                                                
     contractors,  in the  state  in  the previous  calendar                                                                
     year"                                                                                                                  
                                                                                                                                
     Page 22, line 26, through page 23, line 2:                                                                                 
          Delete ";                                                                                                         
               (3) must provide for the purchase of the                                                                     
     amount  equal to  the first  50 percent  of the  credit                                                                
     repurchase limit  per person under (e)  of this section                                                                
     at  a  rate  of  100   percent  of  the  value  of  the                                                                
     certificate or portion of  the certificate requested to                                                                
     be  purchased  and the  amount  equal  to the  next  50                                                                
     percent  of  the  credit repurchase  limit  per  person                                                                
     under (e)  of this section at  a rate of 75  percent of                                                                
     the  value  of  the   certificate  or  portion  of  the                                                                
     certificate requested to be purchased"                                                                                 
                                                                                                                                
SENATOR GIESSEL objected for discussion purposes.                                                                               
                                                                                                                                
REPRESENTATIVE  OLSON informed  the  committee  that Amendment  3                                                               
adopts the House version of  local hire language and requires DOR                                                               
to grant preference  to the applicant with  the higher percentage                                                               
of  resident   workforce  including   workers  employed   by  the                                                               
applicants'  direct  contractors in  the  state  in the  previous                                                               
calendar year.                                                                                                                  
                                                                                                                                
8:28:12 AM                                                                                                                    
                                                                                                                                
SENATOR  MICCICHE  advised  that  the  Senate  Finance  Committee                                                               
evaluated  the  cash  outlays  by   the  state  and  intended  to                                                               
incentivize waiting to  collect credits by putting  the first $35                                                               
million at full value and the  second $35 million - for companies                                                               
that  wish to  get paid  for credits  in the  same year  - at  75                                                               
percent.  Therefore, if Amendment  3 is adopted, "the cash outlay                                                               
for  the state  is only  $61  million, so  it's a  savings of  $9                                                               
million per  company for  the repurchase caps  and the  credit as                                                               
well."                                                                                                                          
                                                                                                                                
8:29:01 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL,  in response  to  Chair  Talerico, removed  her                                                               
objection.   There being  no further  objection, Amendment  3 was                                                               
adopted.                                                                                                                        
                                                                                                                                
8:29:17 AM                                                                                                                    
                                                                                                                                
CHAIR  TALERICO   moved  to  adopt   Amendment  4,   labeled  29-                                                               
GH2609\AA.A.9, Nauman/Shutts, 6/6/16, which read:                                                                               
                                                                                                                                
     Page 20, line 18:                                                                                                          
          Delete "January"                                                                                                  
          Insert "July"                                                                                                     
                                                                                                                                
     Page 20, line 19:                                                                                                          
          Delete "January"                                                                                                  
          Insert "July"                                                                                                     
                                                                                                                                
SENATOR GIESSEL objected for discussion purposes.                                                                               
                                                                                                                                
CHAIR TALERICO  explained that Amendment  4 conforms the  bill to                                                               
the House  version, related  to the date  of the  Frontier Basins                                                               
exploration credits,  and would change  the date from  January 1,                                                               
2017, to July  1, 2017.  This  is an extension of  six months for                                                               
the  Frontier  Basins  -  also  known as  "middle  earth"  -  tax                                                               
credits.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  TARR recalled  that  the date  set  by the  House                                                               
version  reflected  a   recognition  of  opportunities  currently                                                               
underway, and she expressed her support for Amendment 4.                                                                        
                                                                                                                                
8:30:22 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL spoke in support  of Amendment 4, noting that the                                                               
Frontier Basins  may not be  "massive" resource  discoveries, but                                                               
can provide  energy for rural areas  in Alaska.  In  this regard,                                                               
the  Senate  referred  to  the Interior  Energy  Plan  (IEP)  and                                                               
acknowledged that work  underway near Nenana could  provide a gas                                                               
supply to Fairbanks, in accordance  with the intent of IEP, which                                                               
is to access the least expensive energy.                                                                                        
                                                                                                                                
SENATOR  GIESSEL,  in response  to  Chair  Talerico, removed  her                                                               
objection.   There being  no further  objection, Amendment  4 was                                                               
adopted.                                                                                                                        
                                                                                                                                
8:32:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  moved  to adopt  [Conceptual]  Amendment  5                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
        Restore Section 13 of House Bill 247, Version 29-                                                                     
     GH2609\C.A                                                                                                               
                                                                                                                                
     Restore levies on oil and gas taxes in the Cook Inlet                                                                      
       Basin as outlined by Section 13 of the above-noted                                                                       
     version.                                                                                                                   
                                                                                                                                
         Restore Section 60 of House Bill 247, Version                                                                        
     29GH2609\C.A.                                                                                                            
                                                                                                                                
      Restores creation of a bi-partisan Working Group to                                                                       
         explore proper rates to set in the Cook Inlet,                                                                         
     effective 2019.                                                                                                            
                                                                                                                                
      Repeal Section 15 of the Senate Version, Version 29-                                                                      
     GH2609\AA.A (passed by the Senate on the Floor).                                                                           
                                                                                                                                
8:33:03 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL objected for discussion purposes.                                                                               
                                                                                                                                
REPRESENTATIVE  TARR  reminded  the committee  that  the  current                                                               
system for  Cook Inlet oil and  gas tax utilizes a  "cap" that is                                                               
set to  sunset in 2022; the  House version of the  bill moved the                                                               
sunset  to 2019,  and created  a  Cook Inlet  working group  that                                                               
would develop "the  right oil and gas tax system  for Cook Inlet"                                                               
to propose to  both bodies of the legislature.   She relayed that                                                               
she  and other  House  members  have not  had  an opportunity  to                                                               
discuss Section 15  of the Senate version that  "removes the 2022                                                               
tax cap and provides that the  tax may not exceed $1 per barrel."                                                               
Further,  the  aforementioned  provision  "came  in  ...  at  the                                                               
eleventh hour  in the Senate  Finance Committee ...  that's going                                                               
to be  a really important  change going  forward to make  sure we                                                               
can have  stability for our  Southcentral gas supply."   Although                                                               
there  are contracts  in  place  for a  ten-year  supply of  gas,                                                               
Representative  Tarr   stressed  that  she  seeks   a  plan  with                                                               
durability for  her constituents;  in addition,  the focus  of HB                                                               
247 was  to address  [tax] credits in  Cook Inlet,  middle earth,                                                               
and the North Slope, and not on  tax policy.  She opined that the                                                               
amendment  is  a  compromise  between the  House  and  Senate  by                                                               
ensuring  some  revenue in  the  near-term,  and reinstating  the                                                               
working group that would hear  from all of the interested parties                                                               
and stakeholders.                                                                                                               
                                                                                                                                
8:36:20 AM                                                                                                                    
                                                                                                                                
SENATOR MICCICHE  said the oil that  has not been taxed  for some                                                               
time in Cook Inlet is about $5  million per year.  He pointed out                                                               
that the legislature has removed  several hundred million dollars                                                               
per year  of credits out  of Cook Inlet,  which is "a  pretty big                                                               
hit to the industry, [and] a  pretty big hit to my district ...."                                                               
Senator Micciche  said, "Do I think  that the taxes are  going to                                                               
be seventeen  and a-half  cents per  M post-2022,  or a  dollar a                                                               
barrel for  oil?   Probably not."   Further, the  legislature can                                                               
impanel a  working group  at any  time.  He  stated he  would not                                                               
support the amendment, and said  he had confidence that work will                                                               
be done before 2022 on "what Cook Inlet should look like."                                                                      
                                                                                                                                
SENATOR GIESSEL spoke in opposition  to [Conceptual] Amendment 5.                                                               
She said  the Senate version of  the bill recognizes that  in the                                                               
past few years,  50 percent or more of the  tax credits have gone                                                               
to  Cook  Inlet.    Although Cook  Inlet  basin  provides  energy                                                               
security for  50 percent of  the state's population, in  the next                                                               
eighteen  months -  the relevant  time  period -  the basin  will                                                               
become less constrained and open to  more buyers for its gas.  It                                                               
is  the  legislature's  hope  that   demand  will  increase;  for                                                               
example, new  demand for  natural gas may  come from  the [Donlin                                                               
Gold] mine,  the [Agrium  Inc. ammonia plant  in Kenai],  and the                                                               
Alaska  LNG  project  (AKLNG).   Lastly,  she  relayed  that  the                                                               
Regulatory  Commission  of  Alaska  (RCA)  consent  agreement  in                                                               
effect in Cook Inlet, which constrains  the price of gas, will be                                                               
gone  within  the  next  eighteen months.    She  remarked,  "...                                                               
putting  in place  a working  group communicates  instability, it                                                               
communicates  yet  more deliberation  on,  on  the tax-taking  by                                                               
government.      And  so,   as   the   Senate  considered   this,                                                               
understanding that there's  been no tax on oil in  Cook Inlet for                                                               
at least a decade,  but there's been a very small  tax on gas, we                                                               
felt it appropriate to ... put a  tax in place on oil so that the                                                               
state  can begin  to  regain some  revenue from  all  of the  tax                                                               
credits we've  placed in  Cook Inlet, and  make it  comparable to                                                               
the  seventeen and  a-half cents  per MCF  that has  been on  gas                                                               
...."                                                                                                                           
                                                                                                                                
8:40:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR pointed  out that the timeline  of the Senate                                                               
version  sets an  effective date  of January  1, 2017;  the House                                                               
version establishes a working group  for the interim, so that the                                                               
legislature  could adopt  an oil  and gas  tax system  during the                                                               
next session,  between January and  March or April, 2017.   Thus,                                                               
the benefit  of adopting  this amendment  is, "The  House members                                                               
won't be asked  to vote on something that  they've actually never                                                               
seen  before."   Representative  Tarr opined  that House  members                                                               
will  have many  questions, and  the conceptual  amendment allows                                                               
for  vigorous  review  by  members,   and  significant  input  by                                                               
stakeholders, to result  in a workable system that  could stay in                                                               
place for ten  years, without changes.  She  suggested this would                                                               
avoid  justifiable criticism  from the  industry about  the state                                                               
"making  changes all  the time,  and this  is setting  us up  for                                                               
having to make more near-term changes ...."                                                                                     
                                                                                                                                
8:42:45 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL,  in response to  Chair Talerico,  maintained her                                                               
objection.                                                                                                                      
                                                                                                                                
8:42:46 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of Conceptual  Amendment 5.   Representatives Olson  and Talerico                                                               
voted against it.  Senators  Coghill, Micciche, and Giessel voted                                                               
against Conceptual Amendment 5.   Therefore, Conceptual Amendment                                                               
5 failed by a vote of 1:2 (House) and 0:3 (Senate).                                                                             
                                                                                                                                
8:43:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR moved  to  adopt  [Conceptual] Amendment  6,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
     Adopt House Version of  language limiting state payment                                                                    
     of 35% for company  losses to non-producing North Slope                                                                    
     companies and  small producers  with 15,000  barrels or                                                                    
     less of North  Slope Production.  Do  not accept Senate                                                                    
     changes  requiring  state  to pay  losses  incurred  by                                                                    
     large North Slope producers                                                                                                
                                                                                                                                
SENATOR COGHILL objected.                                                                                                       
                                                                                                                                
REPRESENTATIVE   TARR  observed   that  one   of  the   perceived                                                               
deficiencies of  the Senate version  of the  bill is the  lack of                                                               
changes   to  the   North  Slope   net   operating  loss   credit                                                               
"situation."   At the time  the legislature crafted  [Senate Bill                                                               
21, passed in  the 28th Alaska State Legislature  and signed into                                                               
law  on 6/24/13]  it  did  not anticipate  that  the three  major                                                               
companies on  the North  Slope would  have net  operating losses,                                                               
and  that  the  state  would  lose  revenue  "against  their  tax                                                               
liability."   She  continued to  say, "The  under 50,000  are the                                                               
people  we're  paying cash  payments  to,  to  the tune  of  $700                                                               
million  ...."   The  House  version  of  the bill  limits  which                                                               
companies  qualify  for  net operating  losses  by  lowering  the                                                               
threshold  from   50,000  barrels  to  15,000   barrels,  thereby                                                               
protecting the state during periods of  low oil prices.  In order                                                               
to limit  the state's future liability,  the conceptual amendment                                                               
directs  that only  companies producing  15,000  barrels or  less                                                               
would qualify for net operating losses.                                                                                         
                                                                                                                                
8:45:20 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  expressed  her  opposition  to  the  conceptual                                                               
amendment,  stating  that  multiple   consultants  and  DOR  have                                                               
pointed  out  that the  state  has  a  net  tax system,  and  net                                                               
operating losses  are a key element  in the state's system.   She                                                               
characterized the amendment  as a progressive step  away from the                                                               
state's net  tax system that  allows companies to  deduct losses.                                                               
Furthermore, DOR has advised that  when oil prices are above $45-                                                               
$46  per barrel,  there are  no net  operating losses  accrued by                                                               
companies on  the North Slope,  and she questioned why  the state                                                               
would seek  to modify a  net tax system  into a gross  tax system                                                               
when, "the problem  is, is going away, over time."   She restated                                                               
her  opposition  to  the  amendment, and  pointed  out  that  the                                                               
credits that  are under  consideration for  the next  fiscal year                                                               
total $500  million, and the  additional $200 million  in credits                                                               
were vetoed by the governor for this fiscal year.                                                                               
                                                                                                                                
8:47:33 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  encouraged the committee to  "deal with [the                                                               
problem]  now."   The legislative  record shows  that during  the                                                               
debate of  Senate Bill  21, models  of oil  prices under  $60 per                                                               
barrel were not discussed and/or  anticipated.  She remarked, "So                                                               
now, we've  learned, that at these  low prices, this is  a system                                                               
that does  not work and,  and means significant liability  to the                                                               
state.   And  just, where  the $700  million comes  from, ...  if                                                               
you're including  the almost [$]300  million that we'll  lose for                                                               
the  net operating  losses against  tax liability,  then you  get                                                               
well over  $700 million, [and]  when you  add last year's  we get                                                               
closer to  a billion."   Representative  Tarr concluded  that tax                                                               
credits  for corporations  that make  "record profits  in Alaska"                                                               
are unnecessary.  Predicting the price  of oil is uncertain - the                                                               
legislature  passed  a budget  based  on  approximately $105  per                                                               
barrel.   Although oil is  close to  $49 [per barrel]  today, the                                                               
price could  return to $30 [per  barrel] next week, which  is why                                                               
choosing not  to address this problem  is fiscally irresponsible.                                                               
In  fact, net  operating losses  can be  carried forward  and the                                                               
state  will  be  losing  money in  fiscal  years  2018-2020,  and                                                               
beyond.   Because the  situation is known  and can  be prevented,                                                               
she urged  the committee to  discuss what happens when  the price                                                               
of oil falls  below $60 [per barrel], and complete  the work that                                                               
has not been completed after months of study.                                                                                   
                                                                                                                                
8:50:48 AM                                                                                                                    
                                                                                                                                
SENATOR COGHILL,  in response to  Chair Talerico,  maintained his                                                               
objection.                                                                                                                      
                                                                                                                                
8:50:53 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of Conceptual  Amendment 6.   Representatives Olson  and Talerico                                                               
voted against it.  Senators  Coghill, Micciche, and Giessel voted                                                               
against Conceptual Amendment 6.   Therefore, Conceptual Amendment                                                               
6 failed by a vote of 1:2 (House) and 0:3 (Senate).                                                                             
                                                                                                                                
8:51:23 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  moved  to adopt  [Conceptual]  Amendment  7                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
      Adopt House Version to Reduce North Slope payment by                                                                      
       state to small producers for losses (Net Operating                                                                       
     Losses) from 35% of loss to 25% of loss.                                                                                   
                                                                                                                                
SENATOR GIESSEL and Representative Olson objected.                                                                              
                                                                                                                                
REPRESENTATIVE TARR explained that  [Conceptual Amendment 7] also                                                               
addresses  net operating  losses.   She  observed  that both  the                                                               
Senate  and House  versions of  the bill  included a  "step down"                                                               
[related  to a  reduction in  the percentage  of payment  for net                                                               
operating losses],  and that the  provision in the  House version                                                               
of the bill is more appropriate and would cause less disruption.                                                                
                                                                                                                                
SENATOR GIESSEL,  in response to  Chair Talerico,  maintained her                                                               
objection.                                                                                                                      
                                                                                                                                
8:52:29 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of Conceptual  Amendment 7.   Representatives Olson  and Talerico                                                               
voted against it.  Senators  Coghill, Micciche, and Giessel voted                                                               
against Conceptual Amendment 7.   Therefore, Conceptual Amendment                                                               
7 failed by a vote of l:2 (House) and 0:3 (Senate).                                                                             
                                                                                                                                
8:53:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR moved  to  adopt  [Conceptual] Amendment  8,                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
     Adopt  House Version  of language  preventing companies                                                                    
     claiming  state  payment   for  company  Net  Operating                                                                    
     Losses so they  may not be carried  forward into future                                                                    
     years.                                                                                                                     
                                                                                                                                
8:53:07 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL objected.                                                                                                       
                                                                                                                                
REPRESENTATIVE  TARR  characterized  the provision  addressed  by                                                               
Conceptual Amendment 8  as one of the  most important provisions,                                                               
which would limit  the ability of companies to  carry forward net                                                               
operating losses.  The House  version of the bill would eliminate                                                               
net  operating  losses from  the  budget  by 2021;  however,  the                                                               
Senate  version extends  [payment]  for net  operating losses  to                                                               
2023.   During  a time  when essential  state services  are being                                                               
cut, she opined  it is irresponsible to continue  payments in the                                                               
amount  of  "hundreds  of  millions   ...  of  Alaskan  dollars."                                                               
Referring to a net profit system,  she said, "You take the price,                                                               
you  deduct the  transportation  costs, you  also deduct  capital                                                               
expenditures, you also deduct  operating expenditures, all before                                                               
you  even get  to  taxing the  company  at all,  so  it's a  very                                                               
generous tax system  ...."  Again, this is a  provision not fully                                                               
addressed in Senate Bill 21.                                                                                                    
                                                                                                                                
8:55:04 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL said  the amendment is a  "significant rewrite of                                                               
our  state  tax  policy.    This  bill  and  the  subjects  being                                                               
addressed this  session [are]  reform of the  tax credits,  not a                                                               
complete rewrite of  our tax system."  She  directed attention to                                                               
a document submitted  by the Tax Division of  DOR, dated 1/20/16,                                                               
[document not  provided] that listed  six major goals of  HB 247,                                                               
and she read major goal 2.) as follows:                                                                                         
                                                                                                                                
     Protect net operating loss credit as essential playing                                                                     
    field   leveler   between   incumbent   producers   and                                                                     
     newcomers.                                                                                                                 
                                                                                                                                
Senator Giessel opined the foregoing  summarizes the fact that [a                                                               
change to] net  operating loss is not intended to  be the subject                                                               
of the proposed legislation; in  fact, the amendment would change                                                               
tax  policy  and  affect  companies, resulting  in  the  loss  of                                                               
"thousands of Alaskan jobs."                                                                                                    
                                                                                                                                
8:56:36 AM                                                                                                                    
                                                                                                                                
SENATOR MICCICHIE  recalled that during the  change from previous                                                               
[state]  tax  policy  to the  existing  policy,  the  legislature                                                               
sought to  correct the "20  percent CAPEX credit."   According to                                                               
[public] records  the state paid  out $918 million in  credits in                                                               
2013.   The legislature  wanted to correct  the 20  percent CAPEX                                                               
credit,  but retain  companies'  ability  to write-off  expenses.                                                               
The  state has  a net  tax, profit  tax system,  although in  the                                                               
future changes could  be made to the system.   The administration                                                               
indicated  in the  spring forecast,  with oil  prices at  $38 per                                                               
barrel, the  state is not "in  a net operating loss  scenario, so                                                               
the  hundreds  of millions  [of  dollars]  they're talking  about                                                               
going  in the  'out'  years, is  not an  expected  burden on  the                                                               
state."   Senator  Micciche acknowledged  that should  oil prices                                                               
fall for  an extended period of  time, he would be  interested in                                                               
evaluating "a better way."  He said  he was not in support of the                                                               
amendment, and reminded members  that "our heaviest credit years"                                                               
are in the past, and under a prior tax policy.                                                                                  
                                                                                                                                
8:58:50 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  opined that that the  proposed bill violated                                                               
the governor's goal of not  rewriting tax policy by the inclusion                                                               
of the  Senate's change in  tax policy  for Cook Inlet,  which is                                                               
inconsistent with the  aforementioned point that the  bill is not                                                               
intended  to affect  tax  policy.   In  addition, predicting  the                                                               
price of oil is fraught  with difficulty, as demonstrated by last                                                               
year's budget  that required $105  per barrel oil.   She restated                                                               
her desire to  correct problems now - and protect  the state from                                                               
future losses  - because companies  will continue to  earn losses                                                               
one year,  taxes will be due  the next year, and  the impact will                                                               
be felt in the future.                                                                                                          
                                                                                                                                
9:00:42 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL,  in response to  Chair Talerico,  maintained her                                                               
objection.                                                                                                                      
                                                                                                                                
9:00:46 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of Conceptual  Amendment 8.   Representatives Olson  and Talerico                                                               
voted against it.  Senators  Coghill, Micciche, and Giessel voted                                                               
against Conceptual Amendment 8.   Therefore, Conceptual Amendment                                                               
8 failed by a vote of l:2 (House) and 0:3 (Senate).                                                                             
                                                                                                                                
9:01:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  moved  to adopt  [Conceptual]  Amendment  9                                                               
which read [original punctuation provided]:                                                                                     
                                                                                                                                
        Reinstate 5% minimum tax at $70/barrel per House                                                                        
     Version                                                                                                                    
                                                                                                                                
9:01:20 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL objected.                                                                                                       
                                                                                                                                
REPRESENTATIVE TARR  informed the  committee that Senate  Bill 21                                                               
did not address "the way the  minimum tax could be pierced," even                                                               
though the  legislature believed it  had established a  4 percent                                                               
minimum  tax.   She  recalled  that a  working  group chaired  by                                                               
Senator  Giessel  recommended  "hardening   the  floor  ...  that                                                               
provision was  in some  ways adopted by  not allowing  the [gross                                                               
value reduction (GVR)]  to interact with the  net operating loss,                                                               
- the per  barrel credit originally was made so  that couldn't be                                                               
done -  but we really didn't  fully address the hardening  of the                                                               
floor."    The governor's  original  bill  included a  5  percent                                                               
minimum   tax  increase   at  all   prices;  the   House  version                                                               
compromised  by  looking at  the  range  at which  companies  are                                                               
comfortably profitable, and thus  established a 5 percent minimum                                                               
tax, starting at  $70 per barrel.  She  said Conceptual Amendment                                                               
9  is   a  compromise  provision  originally   addressed  by  the                                                               
governor's bill.                                                                                                                
                                                                                                                                
9:02:56 AM                                                                                                                    
                                                                                                                                
SENATOR   GIESSEL   advised   that  the   amendment   creates   a                                                               
"significant tax  increase; it  is not merely  1 percent  as some                                                               
have opined."   She stressed that the legislature  is tasked with                                                               
protecting Alaskans,  which is what  the Senate version  has done                                                               
by maintaining  the 4  percent minimum  tax as  currently exists.                                                               
As the law stands, opportunities  for good-paying jobs in the oil                                                               
industry   -  and   in  directly-related   or  indirectly-related                                                               
industries - are protected.   Government plays a powerful role in                                                               
the economy, and  raising the tax, without  thoroughly vetting an                                                               
increase, is not advisable.                                                                                                     
                                                                                                                                
REPRESENTATIVE   TARR  expressed   her  understanding   that  the                                                               
provision  addressed  by  the  amendment   was  included  in  the                                                               
original  bill in  response to  recommendations from  the working                                                               
group.  Since  the working group included  stakeholders, she said                                                               
she   was   surprised  that   "we're   moving   away  from   that                                                               
recommendation."   She  restated  several factors  of  a net  tax                                                               
system, and  concluded, "...   they  take away  about $50  of the                                                               
value, before we  ever tax any of it, so  they're well within the                                                               
profit range, at $70 per barrel ...."                                                                                           
                                                                                                                                
9:06:12 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL,  in response to  Chair Talerico,  maintained her                                                               
objection.                                                                                                                      
                                                                                                                                
9:06:17 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representative Tarr  voted in favor                                                               
of Conceptual  Amendment 9.   Representatives Olson  and Talerico                                                               
voted against it.  Senators  Coghill, Micciche, and Giessel voted                                                               
against Conceptual Amendment 9.   Therefore, Conceptual Amendment                                                               
9 failed by a vote of l:2 (House) and 0:3 (Senate).                                                                             
                                                                                                                                
CHAIR TALERICO opened discussion on the bill, as amended.                                                                       
                                                                                                                                
9:07:04 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR remarked:                                                                                                   
                                                                                                                                
     ...  I  was  disappointed  that  here  we  are  on  day                                                                    
     fourteen  -   this  is  the   first  meeting   of  this                                                                    
     conference  committee  - I  think  it  [has] been  made                                                                    
     aware   of  everyone   what  an   important  piece   of                                                                    
     legislation this  is for many  of us; that this  is the                                                                    
     first  step in  any  fiscal plan,  moving  forward.   I                                                                    
     noticed the  other five members  around the  table here                                                                    
     all  have the  same script,  highlighted for  different                                                                    
     things,  so clearly,  there was  some coordination  and                                                                    
     discussion that I was never privy to.  Perhaps that's                                                                      
        the process, as everyone understands it, that's                                                                         
     certainly a disappointment to me.                                                                                          
                                                                                                                                
REPRESENTATIVE  TARR continued  to  note the  lack of  sufficient                                                               
discussion regarding  the most important and  contentious aspects                                                               
of  the  bill,  and  sufficient  effort  to  resolve  contentious                                                               
matters.   She opined  the public  will view  the passage  of the                                                               
bill as  a failure of  this legislature.   Although the  bill may                                                               
pass with a  slim margin, its passage may  prevent the completion                                                               
of  a  fiscal  plan  [by  the  29th  Alaska  State  Legislature].                                                               
Representative  Tarr  restated  her   perception  of  a  lack  of                                                               
communication and stated,  "We could have done a  better job, and                                                               
I'm dissatisfied with the work product today."                                                                                  
                                                                                                                                
9:09:21 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   OLSON  expressed   his   belief  that   Alaskans                                                               
responded  to this  issue two  years ago  by defeating  [the 2014                                                               
Alaska  Oil Tax  Cuts Veto  Referendum,  Ballot Measure  1].   He                                                               
said, "I don't think it's proper  to change it [in] less than two                                                               
years."                                                                                                                         
                                                                                                                                
SENATOR COGHILL  stated that  oil and gas  companies in  Alaska -                                                               
who  support  Alaska's  economy  -  are  under  stress  from  the                                                               
international  downturn of  the  market, and  have made  changes,                                                               
such as laying-off workers.   In response, the state has provided                                                               
incentives,  mostly  in Cook  Inlet,  which  have secured  a  gas                                                               
supply for  the Cook Inlet area  and thereby for a  large part of                                                               
the population  of Alaska.   Although the  "credit issue"  is not                                                               
sustainable,  and must  be  changed, the  state  is changing  its                                                               
incentives because  the downturn  in the value  and price  of oil                                                               
has affected  the whole world.   Regarding communication [between                                                               
members of the conference committee],  Senator Coghill said there                                                               
have been many  House and Senate committee  meetings dedicated to                                                               
the legislation,  and there have  been study  and communications,                                                               
and acknowledged  he had not  talked with  [Representative Tarr].                                                               
The legislation will  affect Alaskans, and citizens  need to know                                                               
that  after  any compromise  "everybody  is  going to  walk  away                                                               
unhappy ...."   He closed  by saying,  "So, I'm going  to support                                                               
going forward with this, as unhappy as I am."                                                                                   
                                                                                                                                
9:12:36 AM                                                                                                                    
                                                                                                                                
SENATOR MICCICHE, referring to "the  conspiracy theory," noted he                                                               
received [amendment]  documents about 30 minutes  before meeting,                                                               
which  is common  for a  conference  committee.   He relayed  his                                                               
experience  as  a  member  of  the  operating  budget  conference                                                               
committee.  Turning to the  subject of "floor hardening," he said                                                               
the Senate  was concerned  about making  changes and  then having                                                               
oil prices improve sometime in the  future.  It is known that net                                                               
operating losses are not likely to  be an issue, and he cautioned                                                               
about "losing votes  on [the Senate] side," as  some senators are                                                               
unwilling to  talk about any  of the issues; however,  the Senate                                                               
did address  a ballot  initiative, made changes  to the  GVR, and                                                               
worked on  issues related to  Senate Bill 21,  including removing                                                               
hundreds of millions of dollars'  worth of credits in Cook Inlet.                                                               
Senator  Micciche said  if the  conference committee  adopted the                                                               
House version, it would not pass  the Senate and "we're trying to                                                               
compromise in  the middle, we've  adopted a lot of  the (indisc.)                                                               
of the House version, it may not  go as far as some of you wanted                                                               
it to  go, but  it goes  further than  some of  the folks  in the                                                               
Senate wanted to go.  We're  still trying to maintain a bill that                                                               
can pass both bodies, [and] I'm hopeful it does ...."                                                                           
                                                                                                                                
9:15:09 AM                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL   thanked  the  House   for  its  work   on  the                                                               
legislation.  Between the House  and Senate, there have been over                                                               
70 committee  meetings, extensive  public testimony, and  lots of                                                               
modeling.   Although not a perfect  bill, the bill is  very good,                                                               
and [the bill's]  passage by a slim margin  would demonstrate the                                                               
level of difficulty in making  decisions on an issue that affects                                                               
the  state's economy.   Senator  Giessel said  the bill  protects                                                               
Alaskans  today and  in the  future by  reducing the  state's tax                                                               
credit outlay, but  retaining a stable tax structure  to ensure a                                                               
major gas project in the future.                                                                                                
                                                                                                                                
REPRESENTATIVE TARR  said Senator Micciche's comments  would have                                                               
been appreciated earlier  in the special session,  and would have                                                               
provided a  better understanding of  the views of members  of the                                                               
Senate.   She observed that  there is limited time  for resolving                                                               
differences if the bill does  not pass, and understanding one and                                                               
another's  viewpoint is  helpful.   Representative Tarr  said she                                                               
did not  agreed that  the bill  would provide  stability, because                                                               
problem  areas  still  exist  and  will  need  to  be  addressed.                                                               
Regarding  the [defeat  of  the  2014 Alaska  Oil  Tax Cuts  Veto                                                               
Referendum, Ballot Measure 1] referendum,  the vote was close and                                                               
the issue remains contentious within the state.                                                                                 
                                                                                                                                
CHAIR TALERICO expressed  his appreciation to the  members of the                                                               
committee for their service.                                                                                                    
                                                                                                                                
9:19:58 AM                                                                                                                    
                                                                                                                                
SENATOR GIESSEL  moved that  the Conference  Committee on  HB 247                                                               
recommend  that  the  House  and   Senate  adopt  the  conference                                                               
committee substitute  (CCS) for  HB 247,  Version 29-GH2609\AA.A,                                                               
as amended, with Senate fiscal notes.                                                                                           
                                                                                                                                
9:20:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR objected.                                                                                                   
                                                                                                                                
9:20:23 AM                                                                                                                    
                                                                                                                                
A roll call  vote was taken.  Representatives  Olson and Talerico                                                               
voted in  favor of  the motion  to recommend  that the  House and                                                               
Senate  adopt CCS  HB 247,  Version  29-GH2609\AA.A, as  amended,                                                               
with Senate fiscal notes.   Representative Tarr voted against it.                                                               
Senators Coghill,  Micciche, and  Giessel voted  in favor  of the                                                               
motion to recommend  that the House and Senate adopt  CCS HB 247,                                                               
Version  29-GH2609\AA.A,  as  amended.    Therefore,  the  motion                                                               
passed by a vote of 2:1 (House) and 3:0 (Senate).                                                                               
                                                                                                                                

Document Name Date/Time Subjects
HB 247 Comparison House-Senate.pdf HRES 6/6/2016 8:00:00 AM
JHB247 6/6/2016 8:00:00 AM
HB 247
CC HB 247 Amendment packet.pdf JHB247 6/6/2016 8:00:00 AM
HB 247