Legislature(2015 - 2016)BARNES 124

02/26/2016 03:15 PM LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

Audio Topic
03:18:25 PM Start
03:18:33 PM HB268
03:21:36 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 268 AIDEA:DIVIDEND TO STATE;INCOME;VALUATION TELECONFERENCED
Moved HB 268 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
* Written Testimony Submitted at hlac@akleg.gov *
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 26, 2016                                                                                        
                           3:18 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Jim Colver                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Andy Josephson                                                                                                   
Representative Sam Kito                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Shelley Hughes, Vice Chair                                                                                       
Representative Cathy Tilton                                                                                                     
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 268                                                                                                              
"An  Act relating  to the  dividends from  the Alaska  Industrial                                                               
Development  and Export  Authority;  relating to  the meaning  of                                                               
'mark-to-market   fair   value,'   'net  income,'   'project   or                                                               
development,' and  'unrestricted net income' for  purposes of the                                                               
Alaska   Industrial  Development   and   Export  Authority;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 268 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 268                                                                                                                  
SHORT TITLE: AIDEA:DIVIDEND TO STATE;INCOME;VALUATION                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/20/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        

01/20/16 (H) L&C, FIN 02/17/16 (H) L&C AT 3:15 PM BARNES 124 02/17/16 (H) Heard & Held 02/17/16 (H) MINUTE(L&C) 02/26/16 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER GENE THERRIAULT, Deputy Director Energy Policy Development Alaska Energy Authority/Alaska Industrial Development and Export Authority Department of Commerce, Community & Economic Development Anchorage, Alaska POSITION STATEMENT: Testified during the hearing on HB 268. ACTION NARRATIVE 3:18:25 PM CHAIR KURT OLSON called the House Labor and Commerce Standing Committee meeting to order at 3:18 p.m. Representatives Olson, LeDoux, Colver, Josephson, and Kito were present at the call to order. HB 268-AIDEA:DIVIDEND TO STATE;INCOME;VALUATION 3:18:33 PM CHAIR OLSON announced that the only order of business would be HOUSE BILL NO. 268, "An Act relating to the dividends from the Alaska Industrial Development and Export Authority; relating to the meaning of 'mark-to-market fair value,' 'net income,' 'project or development,' and 'unrestricted net income' for purposes of the Alaska Industrial Development and Export Authority; and providing for an effective date." 3:18:46 PM GENE THERRIAULT, Deputy Director for Energy Policy Development, Alaska Energy Authority/Alaska Industrial Development and Export Authority, Department of Commerce, Community & Economic Development, reminded the committee the purpose of the bill was to expand on the current statutory exemption that allows Alaska Industrial Development and Export Authority (AIDEA) to "back certain things out" of the audited financial statement which is bringing a lot of volatility to the calculation of the state's dividend. He assured the committee that AIDEA would continue to abide by all accounting rules to attain a financial audited statement, and the legislature would indicate which projects to back out in order to ensure a smoother net earnings on which to calculate the dividend. Mr. Therriault directed attention to additional language added to the bill on page 2, beginning on line 3 [and continuing to line 26] which read: ... excluding amounts attributable to intergovernmental transfers, capital contributions, grants, [OR IMPAIRMENT] losses on a project or development to the extent [DEVELOPMENT PROJECTS] financed with state or federal grants or appropriations, mark-to-market fair value based accounting entries, and noncash accounting entries related to retirement obligations [UNDER AS 44.88.172]; (4) "project or development" means (A) an Arctic infrastructure development as defined in AS 44.88.900(2); (B) a development project as defined in AS 44.88.900(6); (C) a project as defined in AS 44.88.900(13); or (D) a qualified energy development as defined in AS 44.88.900(16); (5) [(3)] "unrestricted net income" means the unrestricted change in net position, or the equivalent term under generally accepted accounting principles, of the revolving fund, the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund (AS 44.88.660), or the Arctic infrastructure development fund (AS 44.88.810) as set out in the audited financial statements of the authority for the base fiscal year, excluding amounts attributable to intergovernmental transfers, capital contributions, grants, [OR IMPAIRMENT] losses on a project or development to the extent [DEVELOPMENT PROJECTS] financed with state or federal grants or appropriations, mark-to-market fair value based accounting entries, and noncash accounting entries related to retirement obligations [UNDER AS 44.88.172]. 3:20:12 PM CHAIR OLSON opened public testimony on HB 268. After ascertaining that no one wished to testify on HB 268, public testimony was closed. 3:20:39 PM REPRESENTATIVE COLVER moved to report HB 268 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 268 was reported from the House Labor and Commerce Standing Committee. 3:21:36 PM ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 3:21 p.m.

Document Name Date/Time Subjects
HB268 Supporting Documents-AIDEA Dividend ImpactV13 Presentation 02-26-16.pdf HL&C 2/26/2016 3:15:00 PM
HB 268