Legislature(2017 - 2018)SENATE FINANCE 532
04/29/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB111 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 111 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 29, 2017
9:02 a.m.
9:02:32 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof (via teleconference)
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
ALSO PRESENT
Elstun Lauesen, Self, Juneau; Judy Crondahl, Self, Juneau;
Senator Cathy Giessel; Senator John Coghill; Representative
Tammie Wilson.
PRESENT VIA TELECONFERENCE
Gail Philips, KEEP Alaska, Anchorage; Andy Bond, Self,
Anchorage; James McMilon, Teamsters Local 959, Fairbanks;
Tom Walsh, Self, Anchorage; Keith Silver, Self, Anchorage;
Carl Portman, Self, Anchorage; Ben Mulligan, Self,
Anchorage; Curtis Thayer, President and CEO, Alaska
Chamber, Anchorage; Kati Capozzi, Self, Anchorage; Cathy
Duxbury, Self, Anchorage; Jim Plaquet, Self, Birch Lake;
Mike Coons, Self, Palmer; Joe Rintala, Teamsters Local 959,
Anchorage; Alex Vaughan, Self, Anchorage; William
Willenbrunk, Self, Anchorage; James Udelhoven, Self,
Kasilof; Kelly Droop, Self, Anchorage; Ben Anglen, Self,
Anchorage; Faith Martineau, Self, Eagle River; Bart Meyer,
Self, Sitka; Stacey Wayne, Self, Sitka; Marleanna Hall,
Executive Director Resource Development Council, Anchorage;
Rebecca Logan, General Manager, Alaska Support Industry
Alliance, Anchorage; Renee Limoge Reeve, Self, Anchorage;
Sandra Udelhoven, Self, Kanik; Jake Jacobson, Self, Kodiak;
Pamela Miller, Self, Fairbanks; John Sonin, Self, Juneau;
Karla Hart, Self, Juneau; Alicia Siira, Executive Director,
Alaska Miners Association, Anchorage; Jeremy Price, Alaska
Director, Americans for Prosperity, Anchorage; Mike
Davidson, Self, Girdwood; Gary McDonald, Self, Anchorage;
Stephen Sorensen, Self, Juneau; Michael Jesperson, Self,
Anchorage; Tim Gallagher, Self, Anchorage; John Shively,
Self, Anchorage; Joan Franz, Self, Fairbanks; Edward
Wesley, Self, Anchorage; Evelynn Trefon, Self, Newhalen;
Wendy Alward, Self, Anchorage; Frank Kelty, Self, Unalaska;
Maynard Tapp, Self, Anchorage; Bonnie Lillie, Self,
Anchorage; Cameron Cowles, Self, Anchorage.
SUMMARY
CSHB 111(FIN)(efd fld)
OIL & GAS PRODUCTION TAX;PAYMENTS;CREDITS
CSHB 111(FIN)(efd fld) was HEARD and HELD in
committee for further consideration.
CS FOR HOUSE BILL NO. 111(FIN)(efd fld)
"An Act relating to the oil and gas production tax,
tax payments, and credits; relating to interest
applicable to delinquent oil and gas production tax;
relating to carried-forward lease expenditures based
on losses and limiting those lease expenditures to an
amount equal to the gross value at the point of
production of oil and gas produced from the lease or
property where the lease expenditure was incurred;
relating to information concerning tax credits, lease
expenditures, and oil and gas taxes; relating to the
disclosure of that information to the public; relating
to an adjustment in the gross value at the point of
production; and relating to a legislative working
group."
9:04:10 AM
^PUBLIC TESTIMONY
9:04:16 AM
GAIL PHILIPS, KEEP ALASKA, ANCHORAGE (via teleconference),
testified in support of the most recent version of the
bill. She opposed restructuring of the current oil and gas
tax policy.
9:05:10 AM
ANDY BOND, SELF, ANCHORAGE (via teleconference), testified
in support of the most recent version of the bill, and
opposed the house version of the bill. He felt that Alaska
could not compete at the lower cost of oil and gas
production in the lower 48.
9:07:03 AM
JAMES MCMILON, TEAMSTERS LOCAL 959, FAIRBANKS (via
teleconference), testified against legislation that would
negatively impact the oil and gas production. He stressed
that more production would result in more jobs.
9:09:17 AM
TOM WALSH, SELF, ANCHORAGE (via teleconference), shared
that his company was suffering from low oil prices. He
spoke against the legislation.
9:10:56 AM
KEITH SILVER, SELF, ANCHORAGE (via teleconference),
testified that he wanted the state to have a consistent
fiscal policy.
9:12:40 AM
CARL PORTMAN, SELF, ANCHORAGE (via teleconference), spoke
against early versions of the bill. He felt that the
committee substitute had a reasonable compromise. He felt
that the best way to produce revenue for the state was to
increase oil production.
9:15:17 AM
BEN MULLIGAN, SELF, ANCHORAGE (via teleconference), spoke
in support of the current committee substitute of the bill.
9:16:32 AM
CURTIS THAYER, PRESIDENT AND CEO, ALASKA CHAMBER, ANCHORAGE
(via teleconference), spoke in support of the committee
substitute version of the bill.
9:18:11 AM
KATI CAPOZZI, SELF, ANCHORAGE (via teleconference), spoke
in support of the current version of the bill, but did not
support any change of the policy. She urged the committee
to make no further changes to the bill.
9:19:01 AM
ELSTUN LAUESEN, SELF, JUNEAU, spoke against the current
version of the bill.
9:22:28 AM
JUDY CRONDAHL, SELF, JUNEAU, shared a story about a
legislator who did not have a hand. She spoke in support of
the house version of the legislation.
9:25:24 AM
CATHY DUXBURY, SELF, ANCHORAGE (via teleconference), felt
that the legislature should not continually change the oil
and gas tax structure.
9:26:29 AM
JIM PLAQUET, SELF, BIRCH LAKE (via teleconference), spoke
in support of the current version of the bill.
9:27:45 AM
MIKE COONS, SELF, PALMER (via teleconference), spoke in
support of the focusing on the votes of the Alaskans.
9:30:13 AM
JOE RINTALA, TEAMSTERS LOCAL 959, ANCHORAGE (via
teleconference), spoke in support of the current version of
the legislation.
9:32:53 AM
ALEX VAUGHAN, SELF, ANCHORAGE (via teleconference), spoke
in support of legislation that encouraged oil production
and development.
9:35:32 AM
WILLIAM WILLENBRUNK, SELF, ANCHORAGE (via teleconference),
spoke in support of the current version of the bill.
9:36:55 AM
JAMES UDELHOVEN, SELF, KASILOF (via teleconference), spoke
in support of the most recent version of the bill.
9:38:15 AM
KELLY DROOP, SELF, ANCHORAGE (via teleconference),
testified in support of the current version of the bill.
9:39:27 AM
BEN ANGLEN, SELF, ANCHORAGE (via teleconference), spoke
against the original house version of the bill, and in
support of the current version.
9:41:39 AM
FAITH MARTINEAU, SELF, EAGLE RIVER (via teleconference),
spoke in support of the current version of the bill.
9:43:14 AM
BART MEYER, SELF, SITKA (via teleconference), testified in
support of the house version of the legislation.
9:45:30 AM
STACEY WAYNE, SELF, SITKA (via teleconference), spoke in
support of the house version of the bill.
9:48:53 AM
MARLEANNA HALL, EXECUTIVE DIRECTOR RESOURCE DEVELOPMENT
COUNCIL, ANCHORAGE (via teleconference),
9:51:04 AM
REBECCA LOGAN, GENERAL MANAGER, ALASKA SUPPORT INDUSTRY
ALLIANCE, ANCHORAGE (via teleconference), spoke in support
of the current legislation.
9:52:20 AM
RENEE LIMOGE REEVE, SELF, ANCHORAGE (via teleconference),
spoke in support of legislation that supported oil and gas
production and development.
9:53:25 AM
SANDRA UDELHOVEN, SELF, KANIK (via teleconference),
testified in support of the current version of the
legislation.
9:54:56 AM
JAKE JACOBSON, SELF, KODIAK (via teleconference), opposed
all oil credits.
9:56:51 AM
PAMELA MILLER, SELF, FAIRBANKS (via teleconference), spoke
against oil tax credits. She supported the house version of
the bill.
10:00:24 AM
AT EASE
10:01:26 AM
RECONVENED
10:01:32 AM
Co-Chair MacKinnon announced that there was an attempt to
determine the revenue that the oil industry had produced
for the state.
10:02:25 AM
JOHN SONIN, SELF, JUNEAU (via teleconference), spoke in
support of the house version of the bill.
10:06:02 AM
AT EASE
10:06:31 AM
RECONVENED
10:06:38 AM
Co-Chair MacKinnon announced that from 2006 to 2014 the
state paid $7.4 billion in credits, and received $40
billion in revenue.
10:07:04 AM
KARLA HART, SELF, JUNEAU (via teleconference), spoke in
support of the house version of the legislation.
Co-Chair MacKinnon announced that there was a limitation on
the time that an uplift could occur. She stated that there
was an expiration on the credit, she remarked that 7 years
matched the federal code for deductibility for losses. Ms.
Hart felt that a large economic decision should not be made
in a hasty manner.
Senator Micciche stressed that cash credits were not
sustainable, and Alaska had the only cash credits in the
world.
10:12:28 AM
ALICIA SIIRA, EXECUTIVE DIRECTOR, ALASKA MINERS
ASSOCIATION, ANCHORAGE (via teleconference), testified in
support of the bill.
10:14:25 AM
JEREMY PRICE, ALASKA DIRECTOR, AMERICANS FOR PROSPERITY,
ANCHORAGE (via teleconference), spoke in support of
predictable tax rates for industry.
10:16:30 AM
MIKE DAVIDSON, SELF, GIRDWOOD (via teleconference),
testified in support of the house version of the bill.
10:19:41 AM
GARY MCDONALD, SELF, ANCHORAGE (via teleconference), spoke
in support of the legislation.
10:21:22 AM
STEPHEN SORENSEN, SELF, JUNEAU (via teleconference),
wondered whether there was a calculation that would allow
Alaskans to understand whether an oil company could deduct
their costs over a ten-year period, and whether the revenue
to Alaska would be sufficient to pay for the state
services.
Co-Chair MacKinnon announced that deducting expenses was a
standard business practice. Mr. Sorenson stated that there
would be a cash flow problem when businesses could deduct
100 percent of their costs over a short period of time.
Co-Chair MacKinnon stated that the losses were carried
forward at 35 cents on the dollar.
10:25:23 AM
Senator Micciche remarked that there was a current system
where certain allowable costs could be written off, and
there was no requirement that they produce oil to receive
reimbursement. He stressed that it was a problem. There was
an attempt to change the structure to only provide a credit
after production. Mr. Sorenson agreed and continued to make
his point as previously stated.
10:29:27 AM
MICHAEL JESPERSON, SELF, ANCHORAGE (via teleconference),
spoke against changing the tax structure.
10:30:43 AM
TIM GALLAGHER, SELF, ANCHORAGE (via teleconference),
supported legislation that would encourage a healthy oil
and gas industry.
10:33:11 AM
JOHN SHIVELY, SELF, ANCHORAGE (via teleconference), spoke
in support of the senate version of the bill.
10:35:48 AM
JOAN FRANZ, SELF, FAIRBANKS (via teleconference), spoke in
support of the house version of the bill.
10:37:20 AM
EDWARD WESLEY, SELF, ANCHORAGE (via teleconference), spoke
in support of the bill.
10:39:46 AM
EVELYNN TREFON, SELF, NEWHALEN (via teleconference), spoke
against credits to oil companies.
10:41:05 AM
WENDY ALWARD, SELF, ANCHORAGE (via teleconference),
supported the legislation.
10:42:30 AM
FRANK KELTY, SELF, UNALASKA (via teleconference), supported
the house version of the bill.
10:45:03 AM
MAYNARD TAPP, SELF, ANCHORAGE (via teleconference), did not
support adding costs to government operations or small
businesses.
Senator Micciche wondered whether Mr. Tapp supported the
senate or house version of the bill. Mr. Tapp replied that
he was in support of the revised version of HB 111.
10:48:02 AM
BONNIE LILLIE, SELF, ANCHORAGE (via teleconference),
testified in support of the bill.
10:49:40 AM
CAMERON COWLES, SELF, ANCHORAGE (via teleconference), spoke
in support of the bill. He echoed the Ms. Lillie's remarks.
Co-Chair MacKinnon CLOSED public testimony.
Senator Micciche felt that it might be difficult for some
testifiers to understand the issues.
Vice-Chair Bishop thanked the testifiers.
Co-Chair MacKinnon appreciated the impact of the public
hearing. She announced that public comments could be
submitted by email.
CSHB 111(FIN)(efd fld) was HEARD and HELD in committee for
further consideration.
ADJOURNMENT
10:54:33 AM
The meeting was adjourned at 10:54 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 111 Public Testimony Letters 3.pdf |
SFIN 4/29/2017 9:00:00 AM |
HB 111 |
| HB 111 Weissler Comment 4.29.17.pdf |
SFIN 4/29/2017 9:00:00 AM |
HB 111 |