Legislature(2013 - 2014)BUTROVICH 205

02/27/2013 03:30 PM RESOURCES


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 21 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Moved CSSB 21(RES) Out of Committee
Committee Discussion
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SJR 3 ENDORSING ANWR LEASING TELECONFERENCED
Moved CSSSSJR 3(RES) Out of Committee
               SB  21-OIL AND GAS PRODUCTION TAX                                                                            
                                                                                                                                
3:32:03 PM                                                                                                                    
CHAIR GIESSEL  announced that CSSB 21(RES),  labeled 28-GS1647\N,                                                               
was  before  the committee.  She  said  a legislative  letter  of                                                               
intent  and   a  Senate  Resources  memorandum   to  the  Finance                                                               
Committee would be transmitted with  the bill. The memorandum had                                                               
five specific  subjects that were  raised in this  committee, but                                                               
were  within the  Finance  Committee's  jurisdiction and  merited                                                               
further consideration.  She said that Legislative  Legal Services                                                               
and  the  Department  of  Law  (DOL) had  also  suggested  a  few                                                               
refinements.                                                                                                                    
                                                                                                                                
3:33:20 PM                                                                                                                    
SENATOR DYSON moved Amendment 5.                                                                                                
                                                 28-GS1647\N.7                                                                  
                                                      Bullock                                                                   
                                                                                                                                
                          AMENDMENT 5                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
     TO:  CSSB 21(RES), Draft Version "N"                                                                                       
                                                                                                                                
     Page 2, line 21, following "section.":                                                                                     
          Insert "A taxpayer receiving the transfer of a                                                                        
     certificate under  this subsection  may not  apply more                                                                    
     than  $10,000,000 in  tax  credits  authorized by  this                                                                    
     section in  a single  tax year  and may  not use  a tax                                                                    
     credit  authorized  by this  section  to  reduce a  tax                                                                    
     liability under this chapter below zero."                                                                                  
                                                                                                                                
     Page 3, line 12:                                                                                                           
          Delete the first occurrence of "and"                                                                                  
          Insert "or"                                                                                                           
                                                                                                                                
     Page 3, line 13:                                                                                                           
          Delete ", regardless of whether the oil and gas                                                                       
     is located in the state"                                                                                                   
                                                                                                                                
     Page 3, line 16:                                                                                                           
          Delete the first occurrence of "and"                                                                                  
          Insert "or"                                                                                                           
                                                                                                                                
     Page 3, lines 16 - 17:                                                                                                     
          Delete ", regardless of whether the oil and gas                                                                       
     is located in the state"                                                                                                   
                                                                                                                                
     Page 3, line 21:                                                                                                           
          Delete "and"                                                                                                          
          Insert "or"                                                                                                           
                                                                                                                                
     Page 3, line 22:                                                                                                           
          Delete "regardless of whether the oil and gas is                                                                      
     located in the state,"                                                                                                     
                                                                                                                                
     Page 8, line 22:                                                                                                           
          Delete "20"                                                                                                       
          Insert "30"                                                                                                       
                                                                                                                                
     Page 15, line 12:                                                                                                          
          Delete "in"                                                                                                           
          Insert "for"                                                                                                          
                                                                                                                                
     Page 15, line 23:                                                                                                          
          Delete "43.55.024(c)"                                                                                                 
          Insert "43.55.024"                                                                                                    
                                                                                                                                
     Page 17, line 2:                                                                                                           
          Delete "again"                                                                                                        
          Insert "against"                                                                                                      
                                                                                                                                
     Page 18, line 15:                                                                                                          
          Delete "taxable oil"                                                                                                  
          Insert "oil taxable under AS 43.55.011(e)"                                                                            
                                                                                                                                
     Page 22, line 24:                                                                                                          
          Delete the first occurrence of "an"                                                                                   
          Insert "any"                                                                                                          
                                                                                                                                
     Page 27, line 4:                                                                                                           
          Delete "an area"                                                                                                      
          Insert "acreage"                                                                                                      
                                                                                                                                
     Page 27, line 7:                                                                                                           
          Delete "an area"                                                                                                      
          Insert "acreage"                                                                                                      
                                                                                                                                
     Page 27, line 8:                                                                                                           
          Delete "production tax value"                                                                                         
          Insert "gross value at the point of production"                                                                       
                                                                                                                                
     Page 30, line 8:                                                                                                           
          Delete "Sections 9, 10, 12, 15, and 24"                                                                               
          Insert "Sections 9, 10, 12, 15, 20, 21, and 24"                                                                       
                                                                                                                                
     Page 30, line 29:                                                                                                          
          Delete "Sections 1, 3, 6, 7, 9, 10, 12, 15, 17,                                                                       
     18, 24, and 26 - 28"                                                                                                       
          Insert "Sections 1, 3, 6, 7, 9, 10, 12, 15, 17,                                                                       
     18, 20, 21, 24, and 26 - 28"                                                                                               
                                                                                                                                
SENATOR FRENCH objected.                                                                                                        
                                                                                                                                
3:34:37 PM                                                                                                                    
MARGARET  DOWLING,   staff  to  Senator  Giessel,   Alaska  State                                                               
Legislature,  Juneau,  Alaska,   explained  that  this  amendment                                                               
cleans up minor word changes and is nothing substantive.                                                                        
                                                                                                                                
She explained  language inserted  on page  2, line  21, clarified                                                               
that  if  the Alaska  manufacturing  credit  is transferred,  the                                                               
transferee takes the  credit subject to the  same limitation that                                                               
would be  imposed on the person  who earned the credit.  So, only                                                               
$10  million  in any  one  year  can  be  applied against  a  tax                                                               
liability.                                                                                                                      
                                                                                                                                
3:36:33 PM                                                                                                                    
Next on page 3, line 12,  "and" was deleted and "or" was inserted                                                               
to clarify that the costs  associated with those manufacturing of                                                               
goods that  qualify for credits can  be used for goods  either in                                                               
the  exploration,  development  "or"  production  of  oil;  "and"                                                               
generally means in addition to.                                                                                                 
                                                                                                                                
In section  2, on page 3,  line 13, language that  was not needed                                                               
was removed, because  it is assumed that it  doesn't matter where                                                               
the products are used at the  end point. Language on page 3, line                                                               
16, deleted "and" and inserted "or"  for the same reason above on                                                               
line 12.                                                                                                                        
                                                                                                                                
3:38:06 PM                                                                                                                    
Language on page  3, lines 16-17, deleted  "regardless of whether                                                               
the oil and  gas is located in the state".  That is basically the                                                               
same change as on line 13.                                                                                                      
                                                                                                                                
Language  on page  3, line  21, deleted  "and" and  inserted "or"                                                               
after "development" - the same change as on lines 12 and 16.                                                                    
                                                                                                                                
Language on  page 3,  line 22, deleted  ", regardless  of whether                                                               
the oil and gas is located in  the state" for the same reason she                                                               
explained on lines 13 and 17.                                                                                                   
                                                                                                                                
3:38:58 PM                                                                                                                    
Section  6 on  page 8,  line 22,  replaced the  number "20"  with                                                               
"30", a  conforming change for  AS 43.55.020, payment of  tax, to                                                               
account for increasing the GRE to 30 percent.                                                                                   
                                                                                                                                
3:39:33 PM                                                                                                                    
Section 15, on  page 15, line 12, deletes "in"  and inserts "for"                                                               
to clarify  that the tax  credit that  is increased 15  percent a                                                               
year  stops  increasing  on  December 31  of  the  calendar  year                                                               
immediately preceding  the calendar  year "for" which  the credit                                                               
is applied against the tax liability.                                                                                           
                                                                                                                                
On   page  15,   line  23,   "43.55.024(c)"  was   replaced  with                                                               
"43.55.024". The  reference to subsection (c)  was not necessary.                                                               
All the  credits under .024 -  not just (c) -  must be considered                                                               
first when  they determine the total  tax liability to see  if it                                                               
reaches zero or less before the  loss carry forward credit can be                                                               
applied.                                                                                                                        
                                                                                                                                
On page 17, line 2 "again"  was replaced with "against", a simple                                                               
word correction.                                                                                                                
                                                                                                                                
On page 18, line 15 "taxable  oil" was replaced with "oil taxable                                                               
under  AS 43.55.011(e)".  The Department  of Law  wanted to  make                                                               
sure there  was no  confusion that the  $5/bbl credit  is applied                                                               
against taxable oil and not royalty oil.                                                                                        
                                                                                                                                
3:41:48 PM                                                                                                                    
In  section 24,  on  page 22,  line 24,  "an"  was replaced  with                                                               
"any". This  clarified that there may  or may not be  an increase                                                               
in the  amount of  credit under .023(r),  which is  the provision                                                               
that allows  the 15 percent increase  in value of an  unused loss                                                               
carry  forward credit.  It just  says if  there is  any increase,                                                               
it's  not  assuming there  is  an  increase,  and  it has  to  be                                                               
identified in  the statement a  producer would have to  file with                                                               
the department to get the credit.                                                                                               
                                                                                                                                
The Department  of Law suggested in  section 28 on page  27, line                                                               
4,  to delete  "in area"  and  insert "acreage"  to clarify  that                                                               
"area" is presently  defined in the DOR regulations  as meaning a                                                               
geographic region  or geologic province including  the Cook Inlet                                                               
or the North  Slope of the state. So, this  change doesn't affect                                                               
the intent  of section  24, but  it removes  any ambiguity  as to                                                               
whether "area" for this provision  means the same thing as "area"                                                               
as defined  in regulations.  Language on page  27, line  7, makes                                                               
the same change as the previous one.                                                                                            
                                                                                                                                
Language on page  27, line 8, deleted "production  tax value" and                                                               
inserted  "gross  value  at  the point  of  production"  to  also                                                               
enhance clarity  that the GRE  is taken off the  gross production                                                               
tax value  to achieve the  production tax value, which  cannot be                                                               
reduced below zero.                                                                                                             
                                                                                                                                
Section 33  on page 30,  line 8,  deleted "sections 9,  10,11, 12                                                               
and 24"  and inserted  "sections 9,  10, 12, 15,  20, 21  and 24"                                                               
and  this  is  a  conforming   change  that  accounts  for  these                                                               
amendments. Page 30, line 29,  does the same replacing of section                                                               
numbers to account for the changes made with the amendments.                                                                    
                                                                                                                                
3:45:24 PM                                                                                                                    
At ease 3:45:24 to 3:45:49.                                                                                                     
                                                                                                                                
3:45:49 PM                                                                                                                    
SENATOR FRENCH removed his objection to Amendment 5.                                                                            
                                                                                                                                
CHAIR  GIESSEL,  finding  no further  objection,  announced  that                                                               
Amendment 5 was adopted.                                                                                                        
                                                                                                                                
SENATOR DYSON moved Amendment 6.                                                                                                
                                                 28-GS1647\N.9                                                                  
                                                Nauman/Bullock                                                                  
                                                                                                                                
                          AMENDMENT 6                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
     TO:  CSSB 21(RES), Draft Version "N"                                                                                       
                                                                                                                                
     Page 11, lines 20 - 22:                                                                                                    
          Delete "Except as provided in (p) - (u) of this                                                                   
     section for  a tax  credit based on  lease expenditures                                                                
     incurred  after  December 31,  2013,  to  explore  for,                                                                
     develop, or  produce oil or gas  deposits located north                                                                
     of 68 degrees North latitude, a [A]"                                                                                   
          Insert "A"                                                                                                            
                                                                                                                                
     Page 11, line 23:                                                                                                          
          Delete "35 [25]"                                                                                                  
          Insert "25"                                                                                                           
                                                                                                                                
     Page 11, line 24, following "loss":                                                                                        
          Insert "based on lease expenditures incurred to                                                                   
     explore for,  develop, or produce  oil or  gas deposits                                                                
     located  south  of  68  degrees   North  latitude.    A                                                                
     producer  or explorer  subject to  the requirements  in                                                                
     (p)  - (u)  of this  section may  elect to  take a  tax                                                                
     credit  in  the amount  of  35  percent of  a  carried-                                                                
     forward  annual   loss  based  on   lease  expenditures                                                                
     incurred  after  December 31,  2013,  to  explore  for,                                                                
     develop, or  produce oil or gas  deposits located north                                                                
     of 68 degrees North latitude"                                                                                          
                                                                                                                                
3:46:39 PM                                                                                                                    
SENATOR FRENCH objected.                                                                                                        
                                                                                                                                
MS. DOWLING explained  that the first change was in  section 9 on                                                               
page  11, lines  20-22, and  was a  reworking of  language to  be                                                               
better  understood  by  taxpayers  that the  carry  forward  loss                                                               
credit remains  25 percent for  all areas except the  North Slope                                                               
(the intent of  section 9). For North Slope  producers, the carry                                                               
forward loss  credits are still  subjected to the  subsections of                                                               
(p) through  (u) and it's in  the amount of 35  percent, but only                                                               
for expenses that  are incurred after December 31,  2013. This is                                                               
going to match  the 35 percent base tax rate  for the North Slope                                                               
that will go into place after December 31, 2013.                                                                                
                                                                                                                                
SENATOR FRENCH  asked if this is  meant to ensure that  it's a 25                                                               
percent net operating loss carry  forward credit for south of the                                                               
Brooks Range  and 35  percent north  of the  Brooks Range  on the                                                               
North Slope.                                                                                                                    
                                                                                                                                
MS. DOWLING said  she thought it was that simple,  but wanted Mr.                                                               
Pawlowski's opinion.                                                                                                            
                                                                                                                                
MICHAEL  PAWLOWSKI,   Advisor,  Petroleum  and   Fiscal  Systems,                                                               
Department of Revenue  (DOR), Anchorage, Alaska, said  it is that                                                               
simple.  The confusion  is a  little  bit around  the dates.  The                                                               
expenditures during 2013 will be  at 25 percent, because the base                                                               
rate during  2013 is  25 percent.  On the  effective date  of the                                                               
act,  January 1,  2014, the  tax rate  on the  North Slope  is 35                                                               
percent and after December 31, 2013 the North Slope loss carry                                                                  
forward credit will go to 35 percent as well.                                                                                   
                                                                                                                                
SENATOR FRENCH removed his objection.                                                                                           
                                                                                                                                
CHAIR GIESSEL, hearing no further objection, announced that                                                                     
Amendment 6 was adopted.                                                                                                        
                                                                                                                                
3:50:23 PM                                                                                                                    
SENATOR DYSON moved Amendment 7.                                                                                                
                                                28-GS1647\N.10                                                                  
                                                Nauman/Bullock                                                                  
                                                                                                                                
                          AMENDMENT 7                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
     TO:  CSSB 21(RES), Draft Version "N"                                                                                       
                                                                                                                                
     Page 11, following line 18:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec.  9.  AS 43.55.023(a),  as amended by  sec. 8                                                                
     of this Act, is amended to read:                                                                                           
          (a) Except as provided in AS 43.55.025(q), a [A]                                                                  
     producer  or  explorer may  take  a  tax credit  for  a                                                                    
     qualified capital expenditure as follows:                                                                                  
               (1)  notwithstanding that a qualified                                                                            
     capital   expenditure  may   be   a  deductible   lease                                                                    
     expenditure for purposes  of calculating the production                                                                    
     tax value of oil  and gas under AS 43.55.160(a), unless                                                                    
     a   credit  for   that  expenditure   is  taken   under                                                                    
     AS 38.05.180(i),    AS 41.09.010,   AS 43.20.043,    or                                                                    
     AS 43.55.025,  a producer  or  explorer  that incurs  a                                                                    
     qualified capital  expenditure may also elect  to apply                                                                    
     a tax  credit against  a tax levied  by AS 43.55.011(e)                                                                    
     in the amount of 20 percent of that expenditure;                                                                           
               (2)  a producer or explorer may take a                                                                           
     credit for a qualified  capital expenditure incurred in                                                                    
     connection with  geological or  geophysical exploration                                                                    
     or in connection  with an exploration well  only if the                                                                    
     producer or explorer                                                                                                       
               (A)  agrees, in writing, to the applicable                                                                       
     provisions of AS 43.55.025(f)(2); and                                                                                      
               (B)  submits to the Department of Natural                                                                        
     Resources  all  data  that  would  be  required  to  be                                                                    
     submitted under AS 43.55.025(f)(2);                                                                                    
               (3)  a credit for a qualified capital                                                                            
     expenditure  incurred  to   explore  for,  develop,  or                                                                    
     produce  oil  or  gas  deposits  located  north  of  68                                                                    
     degrees  North  latitude  may  be  taken  only  if  the                                                                    
     expenditure is incurred before January 1, 2014."                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 11, line 20, following "in":                                                                                      
          Insert "AS 43.55.025(q) and"                                                                                      
                                                                                                                                
     Page 12, line 30:                                                                                                          
          Delete "sec. 11"                                                                                                      
          Insert "sec. 12"                                                                                                      
                                                                                                                                
     Page 20, following line 28:                                                                                                
          Insert a new bill section to read:                                                                                    
        "* Sec. 22. AS 43.55.025 is  amended by adding a new                                                                
     subsection to read:                                                                                                        
          (q)  An exploration expenditure incurred after                                                                        
     December 31, 2013,  to explore  for oil or  gas located                                                                    
     north of  68 degrees North  latitude that is  the basis                                                                    
     for a credit under (a)(1),  (2), or (3) of this section                                                                    
     may not  also be the  basis for a credit  claimed under                                                                    
     AS 43.55.023 or this section."                                                                                             
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 30, line 2:                                                                                                           
          Delete "26 - 28"                                                                                                      
          Insert "28 - 30"                                                                                                      
                                                                                                                                
     Page 30, line 4:                                                                                                           
          Delete "25"                                                                                                           
          Insert "27"                                                                                                           
                                                                                                                                
     Page 30, line 6:                                                                                                           
          Delete "11, 13, and 14"                                                                                               
          Insert "12, 14, and 15"                                                                                               
                                                                                                                                
     Page 30, line 8:                                                                                                           
                                                                                                                                
SENATOR FRENCH objected.                                                                                                        
                                                                                                                                
MS.  DOWLING explained  that Amendment  7 was  the "anti-stacking                                                               
provision." She said  that the new section 9 was  designed to put                                                               
producers on  notice that they  should take a look  at subsection                                                               
(q) by  inserting "except  as provided  in AS  43.55.025(q)". The                                                               
restriction in (q)  specifies that a North  Slope producer cannot                                                               
use the  same expenditures for  both a loss carry  forward credit                                                               
and for  an exploration credit. They  can be used for  one or the                                                               
other but  not both. This  is consistent with Alaska  policy that                                                               
disfavors allowing multiple credits  or deductions using the same                                                               
expense.  Their experts  have said  that  not putting  in such  a                                                               
section  would risk  having credits  taken under  .023(a) in  the                                                               
amount  of 30  percent and  then the  loss carry  forward in  the                                                               
amount of  35 percent for  a total  of 65 percent.  The amendment                                                               
had  further  conforming  changes  to  account  for  the  desired                                                               
effective  date of  these new  provisions and  an instruction  to                                                               
renumber the remaining sections of the bill.                                                                                    
                                                                                                                                
3:52:48 PM                                                                                                                    
SENATOR FRENCH asked for a walk  through of how the credits could                                                               
be stacked in the absence of this amendment and in its presence.                                                                
                                                                                                                                
3:53:17 PM                                                                                                                    
MR.  PAWLOWSKI explained  that there  are  separate credits.  The                                                               
.023(b) credit is  the loss carry forward and the  .025 credit is                                                               
the exploration  credit. A  company makes  an expenditure  and it                                                               
qualifies  for the  credit  based on  that  expenditure. So,  you                                                               
could make an expenditure for  an exploration well under .025 and                                                               
use that  same expenditure to  claim a credit under  .023(b). So,                                                               
functionally you would end up with a 65 percent credit.                                                                         
                                                                                                                                
SENATOR  FRENCH asked  if the  exploration credit  would also  be                                                               
accumulating at 15 percent as if it were a net operating loss.                                                                  
                                                                                                                                
MR. PAWLOWSKI  answered no.  The intent of  this amendment  is to                                                               
make sure you  cannot claim expenditures twice. The  EIC that was                                                               
expanded in the  CS is one that remains monetizable  by the state                                                               
for   exploration  expenditures   only.  The   .025  credit   has                                                               
limitations  related to  having to  come into  the Department  of                                                               
Natural  Resources   and  prequalify   the  expenditures   as  an                                                               
exploration  target  and then  share  the  information from  that                                                               
exploration  with it.  The  difference  between that  exploration                                                               
credit  and the  blanket  .023 (b)  credit is  that  there is  no                                                               
similar qualification  other than the expenditure  was made. This                                                               
puts the taxpayer in a position of deciding on one or the other.                                                                
                                                                                                                                
SENATOR FRENCH asked the relative value of each.                                                                                
                                                                                                                                
MR. PAWLOWSKI answered the exploration  incentive credit (EIC) is                                                               
30 percent if  within 25 miles of a unit  boundary and 40 percent                                                               
if  farther than  25 miles  from  a unit  boundary. Brooks  Range                                                               
Petroleum  testified that  most of  the area  within the  central                                                               
North Slope  is within that 30  percent range. So, it's  30 or 40                                                               
percent depending on distance from  infrastructure; then the loss                                                               
carry  forward credit  in  the  CS is  35  percent  of the  loss,                                                               
assuming the taxpayer had no revenues.                                                                                          
                                                                                                                                
3:56:45 PM                                                                                                                    
SENATOR  FRENCH  asked  if  he  had any  idea  which  credit  the                                                               
producers prefer.                                                                                                               
                                                                                                                                
MR.  PAWLOWSKI  said no;  he  thought  it  would depend  on  each                                                               
individual  company. The  committee  heard from  Brooks Range  in                                                               
particular that  the revision  to the EIC  was material  to their                                                               
company.                                                                                                                        
                                                                                                                                
3:57:35 PM                                                                                                                    
SUSAN  POLLARD, Assistant  Attorney  General,  Department of  Law                                                               
(DOL), Juneau, Alaska,   added that the  previous explanation for                                                               
this amendment was correct except  for the reference to section 9                                                               
where (p) through  (u) refers to the section  .023 statute, which                                                               
provides the  new rules  for the carry  forward loss  credit. The                                                               
amendment they  are looking at  now adds an exception  to section                                                               
.025,  which  is  the  exploration   incentive  credit  that  Mr.                                                               
Pawlowski was just referring to.                                                                                                
                                                                                                                                
SENATOR FRENCH removed his objection.                                                                                           
                                                                                                                                
CHAIR  GIESSEL,  finding  no further  objection,  announced  that                                                               
Amendment 7 was adopted.                                                                                                        
                                                                                                                                
3:58:34 PM                                                                                                                    
SENATOR  DYSON  moved  to  report CSSB  21(RES),  version  \N  as                                                               
amended,  from committee  [with  individual recommendations]  and                                                               
attached fiscal notes.                                                                                                          
                                                                                                                                
SENATOR FRENCH objected saying he  thought the process was rushed                                                               
and  the  amendments  they just  adopted  made  some  significant                                                               
changes; and  the CS put in  front of them last  Friday basically                                                               
revamps the  governor's bill.  The fiscal  notes, which  they had                                                               
received this afternoon had not  been discussed either. He didn't                                                               
feel confident of the work.                                                                                                     
                                                                                                                                
SENATOR  DYSON said  he wanted  to amend  his previous  motion to                                                               
include individual recommendations and the letter of intent.                                                                    
                                                                                                                                
SENATOR MICCICHE  said he  appreciated the  process the  bill had                                                               
gone  through;  the  committee  had spent  many  hours  and  some                                                               
members had spent  hundreds of hours processing this  bill in two                                                               
different committees.  It will also  go to the  Finance Committee                                                               
that would have another opportunity to review it.                                                                               
                                                                                                                                
4:01:00 PM                                                                                                                    
SENATOR MCGUIRE asked Mr. Pawlowski  about the fiscal note on the                                                               
Competitiveness  Review  Board.  She agreed  with  the  personnel                                                               
services and  the travel  and the  fact that  they would  have at                                                               
least two  meetings, but  she didn't  necessarily agree  with the                                                               
estimated $835,000 per year for  costs that are based on previous                                                               
DOR consulting contracts for oil  and gas and related issues. The                                                               
board is  not meant to  supplant what the  DOR is doing,  and she                                                               
didn't know  that is  was meant  to do up  to a  million dollars'                                                               
worth of personnel services.                                                                                                    
                                                                                                                                
MR.  PAWLOWSKI said  the department  appreciated the  dialogue on                                                               
this issue,  and said the  Competitiveness Review  Board language                                                               
could be interpreted such that  they will engage in services with                                                               
types  of groups  like PFC  and Gaffney  Cline &  Associates. The                                                               
fiscal  note was  modeled  after those  kinds  of contracts.  The                                                               
personnel services  component is already  in the 2014  budget. No                                                               
new positions  are being added for  this board and it  would need                                                               
professional level engagement.                                                                                                  
                                                                                                                                
SENATOR FRENCH maintained his objection.                                                                                        
                                                                                                                                
CHAIR  GIESSEL  asked for  a  roll  call  on  moving SB  21  from                                                               
committee.                                                                                                                      
                                                                                                                                
A roll call  vote was taken: Senators  McGuire, Micciche, Bishop,                                                               
Dyson,  Fairclough and  Giessel voted  yea; Senator  French voted                                                               
nay. Therefore,  CSSB 21(RES), version  N as amended,  moved from                                                               
committee with attached  fiscal notes, letter of  intent and with                                                               
individual recommendations.                                                                                                     

Document Name Date/Time Subjects
SB 21CS Fiscal Note DNR-DOG 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21CS Fiscal Note DOR-TAX 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21CS Fiscal Note DOR-COMM 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SJR 3 vs N.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SJR 3 Sponsor Statement.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SJR 3 SRES fiscal zero note.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SRES Fiscal Note
SJR 3 Supp Article anwr.org.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SJR 3 Arctic Power 49 ANWR Bullet Points.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SJR 3 Supp Letter RDC Portman 2013.02.22.pdf SRES 2/27/2013 3:30:00 PM
SJR 3
SB 21 CS Written Testimony DeborahBrollini 2013.02.25.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21 SRES FINAL Letter of Intent 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21 SRES Memorandum to SFIN 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21 Amendment N.7 SRES 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21 Amendment N.9 RES 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
SB 21 Amendment N.10 SRES 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SB 21
CS SS SJR 3 vs C.PDF SRES 2/27/2013 3:30:00 PM
SJR 3
SJR 3 Opp Letter 2013.02.27.pdf SRES 2/27/2013 3:30:00 PM
SJR 3