Legislature(2015 - 2016)BARNES 124

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

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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