CS FOR HOUSE BILL NO. 331(FIN) "An Act establishing the Alaska Tax Credit Certificate Bond Corporation; relating to the issuance of bonds by the Alaska Tax Credit Certificate Bond Corporation; relating to purchases of tax credit certificates and refunds and payments of tax credits; relating to the oil and gas tax credit fund; relating to overriding royalty interest agreements; providing for an effective date by repealing the effective date of secs. 2, 5, 8, 10, 31, 37, and 40, ch. 3, SSSLA 2017; and providing for an effective date." Co-Chair MacKinnon relayed that HB 331 was heard during the morning Senate Finance Committee meeting (May 8, 2018 - 9:40 a.m.) and the bill hearing would continue with public testimony. Co-Chair MacKinnon OPENED public testimony. 2:05:52 PM BEN MULLIGAN, VICE-PRESIDENT, THE ALASKA CHAMBER, ANCHORAGE (via teleconference), spoke in support of the bill. He related that the Alaska Chamber supported efforts by the state to pay the credit obligations. He felt that the state had taken too long in paying off the credit obligations and opined that the action created a "negative business climate, which damaged its reputation" and threatened future investment. The chamber encouraged the committee to support the measure as a way to restore credibility among the business community. 2:07:10 PM ED KING, PRINCIPAL ECONOMIST, KING ECONOMICS, JUNEAU, voiced support for the bill. He discussed that currently four projects were stalled by the financial constraints of the companies involved. He believed that the projects were "constrained" due in part by the expectation of receiving their earned tax credit. The companies invested in marginal oil fields due to the credit program and the investment capital was not available from the market. He indicated that the projects would remain idle until the credits were paid. He thought that evidence supported the idea that the obligations "must" be paid. He believed that the state never had a statutory obligation to pay the credits but thought that legal grounds existed to demand payment and litigation would stall the projects longer. He supported paying the credits from the perspective of resource management; getting the fields into production quickly. He felt that paying all the credits out of the state coffers would put the Permanent Fund Dividend (PFD) at risk. 2:11:05 PM MARLEANNA HALL, EXECUTIVE DIRECTOR, RESOURCE DEVELOPMENT COUNCIL, ANCHORAGE (via teleconference), spoke in support of the bill. She explained that the Resource Development Council (RDC) was a trade association comprised of individuals and companies from the oil and gas, mining, fishing, forest products industries, and native corporations. The council believed that the bill was suitable and would help stimulate the state's economy by encouraging investment on the North Slope, deliver state revenue over the long-term, and provide more jobs. She believed in sustaining the health of the private sector. She opined that the bill would help restore Alaska's reputation as "a stable and reliable oil and gas jurisdiction." She remarked that the uncertainty regarding the payment of the tax credits has led to stalled projects. The credit payments would help the projects move forward. 2:13:49 PM BARBARA HUFF-TUCKNESS, DIRECTOR OF LEGISLATIVE and GOVERNMENTAL AFFAIRS, TEAMSTERS LOCAL 959, JUNEAU, spoke in favor of HB 331. She related that the although the bill was complicated it provided "much needed capital." She favored the changes made in the House Finance Committee that supported the Alaska workers through encouraging Alaska hires. She reported that recently many of the small companies were hiring Alaskans and were encouraging their contractors to do the same. Co-Chair MacKinnon CLOSED public testimony. Co-Chair MacKinnon announced that amendments were due the following day by 9am. CSHB 331(FIN) was HEARD and HELD in committee for further consideration.