06/06/2016 02:00 PM House CONFERENCE COMMITTEE ON HB247
| Audio | Topic |
|---|---|
| Start | |
| HB247 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 247 | ||
29TH ALASKA STATE LEGISLATURE
CONFERENCE COMMITTEE ON HB247
Bill Ray Center
Juneau, Alaska
June 6, 2016
2:04 p.m.
MEMBERS PRESENT
Representative David Talerico, Chair
Representative Kurt Olson
Representative Geran Tarr
Senator Cathy Giessel, Chair
Senator John Coghill
Senator Peter Micciche
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 247
"An Act relating to confidential information status and public
record status of information in the possession of the Department
of Revenue; relating to interest applicable to delinquent tax;
relating to disclosure of oil and gas production tax credit
information; 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 minimum tax for certain
oil and gas production; relating to the minimum tax calculation
for monthly installment payments of estimated tax; relating to
interest on monthly installment payments of estimated tax;
relating to limitations for the application of tax credits;
relating to oil and gas production tax credits for certain
losses and expenditures; relating to limitations for
nontransferable oil and gas production tax credits based on oil
production and the alternative tax credit for oil and gas
exploration; relating to purchase of tax credit certificates
from the oil and gas tax credit fund; relating to a minimum for
gross value at the point of production; relating to lease
expenditures and tax credits for municipal entities; adding a
definition for "qualified capital expenditure"; adding a
definition for "outstanding liability to the state"; repealing
oil and gas exploration incentive credits; repealing the
limitation on the application of credits against tax liability
for lease expenditures incurred before January 1, 2011;
repealing provisions related to the monthly installment payments
for estimated tax for oil and gas produced before January 1,
2014; repealing the oil and gas production tax credit for
qualified capital expenditures and certain well expenditures;
repealing the calculation for certain lease expenditures
applicable before January 1, 2011; making conforming amendments;
and providing for an effective date."
- MOVED CCS HB 247 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 247
SHORT TITLE: TAX;CREDITS;INTEREST;REFUNDS;O & G
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/19/16 (H) READ THE FIRST TIME - REFERRALS
01/19/16 (H) RES, FIN
02/03/16 (H) RES AT 1:00 PM BARNES 124
02/03/16 (H) Heard & Held
02/03/16 (H) MINUTE(RES)
02/05/16 (H) RES AT 1:00 PM BARNES 124
02/05/16 (H) -- MEETING CANCELED --
02/10/16 (H) RES AT 1:00 PM BARNES 124
02/10/16 (H) Heard & Held
02/10/16 (H) MINUTE(RES)
02/12/16 (H) RES AT 1:00 PM BARNES 124
02/12/16 (H) Heard & Held
02/12/16 (H) MINUTE(RES)
02/13/16 (H) RES AT 1:00 PM BARNES 124
02/13/16 (H) -- MEETING CANCELED --
02/22/16 (H) RES AT 1:00 PM BARNES 124
02/22/16 (H) Heard & Held
02/22/16 (H) MINUTE(RES)
02/24/16 (H) RES AT 1:00 PM BARNES 124
02/24/16 (H) Heard & Held
02/24/16 (H) MINUTE(RES)
02/25/16 (H) RES AT 8:30 AM BARNES 124
02/25/16 (H) Heard & Held
02/25/16 (H) MINUTE(RES)
02/25/16 (H) RES AT 1:00 PM BARNES 124
02/25/16 (H) Heard & Held
02/25/16 (H) MINUTE(RES)
02/26/16 (H) RES AT 1:00 PM BARNES 124
02/26/16 (H) Heard & Held
02/26/16 (H) MINUTE(RES)
02/27/16 (H) RES AT 10:00 AM BARNES 124
02/27/16 (H) Heard & Held
02/27/16 (H) MINUTE(RES)
02/29/16 (H) RES AT 1:00 PM BARNES 124
02/29/16 (H) Heard & Held
02/29/16 (H) MINUTE(RES)
02/29/16 (H) RES AT 6:00 PM BARNES 124
02/29/16 (H) Heard & Held
02/29/16 (H) MINUTE(RES)
03/01/16 (H) RES AT 1:00 PM BARNES 124
03/01/16 (H) Heard & Held
03/01/16 (H) MINUTE(RES)
03/02/16 (H) RES AT 1:00 PM BARNES 124
03/02/16 (H) Heard & Held
03/02/16 (H) MINUTE(RES)
03/02/16 (H) RES AT 6:00 PM BARNES 124
03/02/16 (H) Heard & Held
03/02/16 (H) MINUTE(RES)
03/07/16 (H) RES AT 1:00 PM BARNES 124
03/07/16 (H) Heard & Held
03/07/16 (H) MINUTE(RES)
03/07/16 (H) RES AT 6:00 PM BARNES 124
03/07/16 (H) Heard & Held
03/07/16 (H) MINUTE(RES)
03/08/16 (H) RES AT 1:00 PM BARNES 124
03/08/16 (H) Heard & Held
03/08/16 (H) MINUTE(RES)
03/09/16 (H) RES AT 1:00 PM BARNES 124
03/09/16 (H) Heard & Held
03/09/16 (H) MINUTE(RES)
03/11/16 (H) RES AT 1:00 PM BARNES 124
03/11/16 (H) -- MEETING CANCELED --
03/14/16 (H) RES AT 1:00 PM BARNES 124
03/14/16 (H) Heard & Held
03/14/16 (H) MINUTE(RES)
03/14/16 (H) RES AT 6:00 PM BARNES 124
03/14/16 (H) Heard & Held
03/14/16 (H) MINUTE(RES)
03/16/16 (H) RES AT 1:00 PM BARNES 124
03/16/16 (H) Scheduled but Not Heard
03/18/16 (H) RES AT 1:00 PM BARNES 124
03/18/16 (H) Scheduled but Not Heard
03/19/16 (H) RES AT 1:00 PM BARNES 124
03/19/16 (H) Heard & Held
03/19/16 (H) MINUTE(RES)
03/21/16 (H) RES AT 1:00 PM BARNES 124
03/21/16 (H) Heard & Held
03/21/16 (H) MINUTE(RES)
03/21/16 (H) RES AT 6:00 PM BARNES 124
03/21/16 (H) -- MEETING CANCELED --
03/22/16 (H) RES AT 1:00 PM BARNES 124
03/22/16 (H) Heard & Held
03/22/16 (H) MINUTE(RES)
03/22/16 (H) RES AT 6:00 PM BARNES 124
03/22/16 (H) Moved CSHB 247(RES) Out of Committee
03/22/16 (H) MINUTE(RES)
03/23/16 (H) RES RPT CS(RES) NT 5DP 1DNP 1NR 2AM
03/23/16 (H) DP: CHENAULT, OLSON, JOHNSON, NAGEAK,
TALERICO
03/23/16 (H) DNP: TARR
03/23/16 (H) NR: HERRON
03/23/16 (H) AM: SEATON, JOSEPHSON
03/23/16 (H) RES AT 1:00 PM BARNES 124
03/23/16 (H) <Bill Hearing Canceled>
03/24/16 (H) FIN AT 9:30 AM HOUSE FINANCE 519
03/24/16 (H) Heard & Held
03/24/16 (H) MINUTE(FIN)
03/25/16 (H) RES AT 1:00 PM BARNES 124
03/25/16 (H) <Bill Hearing Canceled>
03/31/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/31/16 (H) Heard & Held
03/31/16 (H) MINUTE(FIN)
03/31/16 (H) FIN AT 5:00 PM HOUSE FINANCE 519
03/31/16 (H) Heard & Held
03/31/16 (H) MINUTE(FIN)
04/01/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/01/16 (H) Heard & Held
04/01/16 (H) MINUTE(FIN)
04/01/16 (H) FIN AT 5:00 PM HOUSE FINANCE 519
04/01/16 (H) Heard & Held
04/01/16 (H) MINUTE(FIN)
04/02/16 (H) FIN AT 8:30 AM HOUSE FINANCE 519
04/02/16 (H) -- Continued from 4/1/16 --
04/02/16 (H) FIN AT 2:00 PM HOUSE FINANCE 519
04/02/16 (H) -- Public Testimony --
04/04/16 (H) FIN AT 8:30 AM HOUSE FINANCE 519
04/04/16 (H) Heard & Held
04/04/16 (H) MINUTE(FIN)
04/04/16 (S) RES AT 3:30 PM BUTROVICH 205
04/04/16 (S) <Pending Referral>
04/05/16 (H) FIN AT 8:30 AM HOUSE FINANCE 519
04/05/16 (H) Heard & Held
04/05/16 (H) MINUTE(FIN)
04/05/16 (S) RES AT 3:30 PM BUTROVICH 205
04/05/16 (S) <Pending Referral> -- Invited Testimony
Only --
04/06/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/06/16 (H) Heard & Held
04/06/16 (H) MINUTE(FIN)
04/06/16 (S) RES AT 3:30 PM BUTROVICH 205
04/06/16 (S) <Pending Referral> -- Invited Testimony
Only --
04/07/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/07/16 (H) <Bill Hearing Canceled>
04/07/16 (S) RES AT 3:30 PM BUTROVICH 205
04/07/16 (S) <Pending Referral> --Invited Testimony
Only--
04/08/16 (H) FIN AT 8:30 AM HOUSE FINANCE 519
04/08/16 (H) -- MEETING CANCELED --
04/08/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/08/16 (H) Moved CSHB 247(FIN) Out of Committee
04/08/16 (H) MINUTE(FIN)
04/08/16 (S) RES AT 3:30 PM BUTROVICH 205
04/08/16 (S) <Pending Referral> --Invited Testimony
Only--
04/09/16 (H) FIN RPT CS(FIN) NT 1DP 4DNP 2NR 4AM
04/09/16 (H) DP: THOMPSON
04/09/16 (H) DNP: PRUITT, WILSON, KAWASAKI, GATTIS
04/09/16 (H) NR: SADDLER, NEUMAN
04/09/16 (H) AM: GARA, GUTTENBERG, EDGMON, MUNOZ
04/09/16 (S) RES AT 9:00 AM BUTROVICH 205
04/09/16 (S) <Pending Referral> --Invited Testimony
Only--
04/09/16 (S) RES AT 2:30 PM BUTROVICH 205
04/09/16 (S) <Pending Referral> --Invited Testimony
Only--
04/11/16 (S) RES AT 3:30 PM BUTROVICH 205
04/11/16 (S) <Pending Referral> -- Invited Testimony
Only --
04/13/16 (H) BEFORE HOUSE IN THIRD READING
04/13/16 (H) RETURNED TO RLS COMMITTEE
04/13/16 (S) FIN AT 1:30 PM SENATE FINANCE 532
04/13/16 (S) <Pending Referral> Invited Testimony
04/13/16 (S) FIN AT 5:00 PM SENATE FINANCE 532
04/13/16 (S) <Pending Referral> Invited Testimony
04/14/16 (S) FIN AT 8:00 AM SENATE FINANCE 532
04/14/16 (S) <Pending Referral>
04/14/16 (S) FIN AT 1:30 PM SENATE FINANCE 532
04/14/16 (S) <Pending Referral>
04/14/16 (S) FIN AT 5:00 PM SENATE FINANCE 532
04/14/16 (S) <Pending Referral>
04/20/16 (H) RLS AT 2:00 PM GRUENBERG 120
04/20/16 (H) -Postponed to a Call of the Chair on
4/21/16 TBD-
04/21/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/21/16 (H) -Postponed to a Call of the Chair on
4/22/16 TBA-
04/22/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/22/16 (H) -Postponed to a Call of the Chair on
4/23/16 TBA-
04/23/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/23/16 (H) -Postponed to a Call of the Chair on
4/24/16 TBA-
04/24/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/24/16 (H) -Postponed to a Call of the Chair on
4/25/16 TBA-
04/25/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/25/16 (H) -Postponed to a Call of the Chair on
4/26/16 TBA-
04/26/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/26/16 (H) -Postponed to a Call of the Chair on
4/27/16 TBA-
04/27/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/27/16 (H) -Postponed to a Call of the Chair on
4/28/16 TBA-
04/28/16 (H) RLS AT 0:00 AM GRUENBERG 120
04/28/16 (H) -- Meeting Postponed to 5/2/16 --
05/02/16 (H) RLS AT 9:30 AM BELTZ 105 (TSBldg)
05/02/16 (H) -- Meeting Postponed to 5/3/16 at 9:30
a.m. --
05/03/16 (H) RLS AT 9:30 AM BELTZ 105 (TSBldg)
05/03/16 (H) -- MEETING CANCELED --
05/10/16 (H) RLS AT 9:30 AM BILL RAY CENTER 208
05/10/16 (H) Heard & Held
05/10/16 (H) MINUTE(RLS)
05/11/16 (H) RLS AT 9:00 AM BILL RAY CENTER 208
05/11/16 (H) Heard & Held
05/11/16 (H) MINUTE(RLS)
05/12/16 (H) RLS RPT 2D CS(RLS) NT 3DP 2NR 1AM
05/12/16 (H) DP: CHENAULT, OLSON, JOHNSON
05/12/16 (H) NR: HERRON, TUCK
05/12/16 (H) AM: KREISS-TOMKINS
05/12/16 (H) BEFORE HOUSE IN THIRD READING
05/12/16 (H) WITHDRAW AM NOS. 1,13 AS AM, 15, 16, 18
AS AM, & 19 UC
05/12/16 (H) WITHDRAW MOTION ADOPT FIN CS UC
05/12/16 (H) RLS AT 9:30 AM BILL RAY CENTER 208
05/12/16 (H) -- Continued at 9:40 a.m. from 5/11/16
--
05/13/16 (H) BEFORE HOUSE IN THIRD READING
05/13/16 (H) TRANSMITTED TO (S)
05/13/16 (H) VERSION: 2D CSHB 247(RLS) AM
05/14/16 (S) READ THE FIRST TIME - REFERRALS
05/14/16 (S) FIN
05/14/16 (S) FIN AT 1:30 PM BILL RAY CENTER 230
05/14/16 (S) Heard & Held
05/14/16 (S) MINUTE(FIN)
05/15/16 (S) FIN AT 9:00 AM BILL RAY CENTER 230
05/15/16 (S) Heard & Held
05/15/16 (S) MINUTE(FIN)
05/16/16 (S) FIN AT 2:00 PM BILL RAY CENTER 230
05/16/16 (S) -- MEETING CANCELED --
05/17/16 (S) FIN RPT SCS 3DP 1NR 3AM NEW TITLE
05/17/16 (S) DP: MACKINNON, HOFFMAN, MICCICHE
05/17/16 (S) NR: KELLY
05/17/16 (S) AM: BISHOP, DUNLEAVY, OLSON
05/17/16 (S) FIN AT 9:00 AM BILL RAY CENTER 230
05/17/16 (S) Moved SCS 2D CSHB 247(FIN) Out of
Committee
05/17/16 (S) MINUTE(FIN)
05/18/16 (S) VERSION: SCS 2D CSHB 247(FIN) AM S
05/18/16 (H) CONFERENCE COMMITTEE APPOINTED
05/18/16 (H) TALERICO (CHAIR), OLSON, TARR
05/23/16 (H) FOURTH SPECIAL SESSION BILL
05/23/16 (S) FOURTH SPECIAL SESSION BILL - WITH
PASSAGE OF HCR 401
05/24/16 (S) BILL ENGROSSED ON 5/18/16
05/24/16 (S) RECEDE MESSAGE READ AND HELD
05/24/16 (S) TAKEN UP
05/24/16 (S) CONFERENCE COMMITTEE APPOINTED
05/24/16 (S) GIESSEL (CHAIR), COGHILL, MICCICHE
06/06/16 (H) HB247 AT 8:00 AM BILL RAY CENTER 230
06/06/16 (H) Moved CCS HB 247 Out of Committee
06/06/16 (H) HB247 AT 2:00 PM BILL RAY CENTER 230
WITNESS REGISTER
No witnesses to report
ACTION NARRATIVE
2:04:09 PM
CHAIR DAVID TALERICO called the meeting of the Conference
Committee on HB 247 to order at 2:04 p.m. Present at the call
to order were Representatives Olson, Tarr, and Talerico, and
Senators Coghill, Micciche, and Giessel.
[Before the committee was CCS HB 247, Version 29-GH2609\AA.A, as
amended.]
HB 247-TAX;CREDITS;INTEREST;REFUNDS;O & G
2:04:39 PM
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 on HB 247 is
exempt from committee meeting notice requirements as specified
in Uniform Rule 23(g). He informed the committee that at the
previous meeting the conference committee approved four
amendments; however, Amendment 3, related to local hire, removed
language related to repurchase restrictions on companies from
the oil and gas tax credit fund, which was not the intent of the
committee. In order to adopt the amendment "as presented," the
committee will need to rescind its action adopting the
conference committee report, request limited powers of free
conference, and report out a new [conference] committee
substitute.
2:05:14 PM
SENATOR GIESSEL moved to rescind the committee's action in
reporting CCS HB 247 from committee. There being no objection,
it was so ordered.
2:05:38 PM
SENATOR GIESSEL moved to request limited powers of free
conference [from the presiding officers for the aforementioned
specific points of HB 247, regarding local hire and repurchase
restrictions], found in Section 35 of the House version and in
Section 25 of the Senate version.
2:05:56 PM
REPRESENTATIVE TARR informed the committee that [after the
conference committee meeting held at 8:11 a.m., 6/6/16], she
learned a different provision found in the Senate version of the
bill, related to delinquent taxes and interest rates, "could be
problematic according to the Department of Revenue." She said
the committee may use this opportunity to reconsider that
provision as well, if there is interest from committee members.
She said she was unsure of the nature of the problem; however,
the problem was brought to her attention.
[Although not stated on the record, the committee treated the
comments by Representative Tarr as an objection to the motion
for discussion purposes.]
CHAIR TALERICO expressed his belief that the conference
committee's limited powers are related to the one particular
subject matter [of Amendment 3].
2:07:10 PM
The committee took a brief at ease.
2:07:54 PM
REPRESENTATIVE TARR removed her objection. There being no
further objection, the motion to request limited powers of free
conference was approved.
2:08:13 PM
The committee took an at ease from 2:08 p.m. to 2:09 p.m.
2:09:56 PM
CHAIR TALERICO described a new conference committee substitute.
2:10:24 PM
The committee took a brief at ease.
2:10:54 PM
CHAIR TALERICO directed attention to CCS for HB 247, Version 29-
GH2609\EE, Nauman, 6/6/16, which includes all of the amendments
that passed in the conference committee meeting [held at 8:11
a.m., on 6/6/16], except for Amendment 3. He explained Version
EE would adopt the House local hire provisions, as shown on page
22, lines 11-16, which read:
(2) must, when allocating available money in the fund
under this section, 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; in this paragraph, "resident worker" has the
meaning given in AS 43.40.092(b):
CHAIR TALERICO continued to explain that the CCS leaves the
Senate repurchase restrictions intact, as shown on page 22,
lines 17-23, which read:
(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.
2:11:23 PM
SENATOR GIESSEL moved that pursuant to receiving limited powers,
the Conference Committee for HB 247 recommends that the House
and Senate adopt the CCS for HB 247, Version 29-GH2609\EE.
2:11:41 PM
REPRESENTATIVE TARR objected for discussion purposes. She
called attention to Section 8, in both the House and Senate
versions, and said DOR indicated that the language in the Senate
version could be problematic in figuring out the interest rate
on delinquent oil and gas taxes. Although she did not have
further supporting documents, Representative Tarr suggested the
aforementioned provision needs further consideration.
2:12:56 PM
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 for HB 247, Version EE. 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 for HB 247, Version EE. Therefore, the motion passed
by a vote of 2:1 (House) and 3:0 (Senate).
2:13:39 PM
ADJOURNMENT
There being no further business before the committee, the
meeting of the Conference Committee on HB 247 was adjourned at
2:13 p.m.
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