Legislature(2005 - 2006)
2006-05-08 House Journal
Full Journal pdf2006-05-08 House Journal Page 3902 SB 305 The following, which was held from the May 7, 2006, calendar (page 3854), was before the House in third reading: HCS FOR CS FOR SENATE BILL NO. 305(FIN) am H "An Act repealing the oil production tax and the gas production tax and providing for a production tax on oil and gas; relating to 2006-05-08 House Journal Page 3903 the calculation of the gross value at the point of production of oil and gas and to the determination of the value of oil and gas for purposes of the production tax on oil and gas; providing for tax credits against the production tax on oil and gas; relating to the relationship of the production tax on oil and gas to other taxes, to the dates those tax payments and surcharges are due, to interest on overpayments of the tax, and to the treatment of the tax in a producer's settlement with the royalty owners; relating to flared gas, and to oil and gas used in the operation of a lease or property under the production tax; relating to the prevailing value of oil and gas under the production tax; relating to surcharges on oil; relating to statements or other information required to be filed with or furnished to the Department of Revenue, to the penalty for failure to file certain reports for the tax, to the powers of the Department of Revenue, and to the disclosure of certain information required to be furnished to the Department of Revenue as applicable to the administration of the tax; relating to criminal penalties for violating conditions governing access to and use of confidential information relating to the tax, and to the deposit of tax money collected by the Department of Revenue; amending the definitions of 'gas,' 'oil,' and certain other terms for purposes of the production tax, and as the definition of the term 'gas' applies in the Alaska Stranded Gas Development Act, and adding further definitions; making conforming amendments; and providing for an effective date." Representative Kelly moved and asked unanimous consent that HCS CSSB 305(FIN) am H be returned to second reading for the specific purpose of rescinding previous action in failing to adopt Amendment No. 1 (page 3839). There being no objection, it was so ordered. The Speaker stated that, without objection, HCS CSSB 305(FIN) am H would be returned to second reading for all amendments. Representative Kelly moved and asked unanimous consent that the House rescind previous action in failing to adopt Amendment No. 1. There was objection. 2006-05-08 House Journal Page 3904 Representative Kelly placed a call of the House and lifted the call. Representative Coghill moved and asked unanimous consent that Representative Kapsner be excused from a call of the House to 9:40 p.m., today. There being no objection, it was so ordered. Representative Coghill placed a call of the House on the bill. The call was satisfied. The question being: "Shall the House rescind previous action in failing to adopt Amendment No. 1?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Rescind Previous Action/Amendment No. 1 YEAS: 23 NAYS: 16 EXCUSED: 1 ABSENT: 0 Yeas: Berkowitz, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Holm, Kelly, Kerttula, LeDoux, Lynn, Neuman, Olson, Seaton, Stoltze, Thomas Nays: Anderson, Chenault, Foster, Hawker, Joule, Kohring, Kott, McGuire, Meyer, Moses, Ramras, Rokeberg, Salmon, Samuels, Weyhrauch, Wilson Excused: Kapsner And so, the motion passed. Amendment No. 1 (page 3838) was before the House. Amendment No. 2 to Amendment No. 1 was offered by Representative Kott: Delete "22.5" Insert "21" 2006-05-08 House Journal Page 3905 Representative Kott moved and asked unanimous consent that Amendment No. 2 to Amendment No. 1 be adopted. There was objection. The question being: "Shall Amendment No. 2 to Amendment No. 1 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 2 to Amendment No. 1 YEAS: 22 NAYS: 17 EXCUSED: 1 ABSENT: 0 Yeas: Anderson, Gatto, Harris, Hawker, Holm, Joule, Kelly, Kohring, Kott, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Rokeberg, Salmon, Samuels, Stoltze, Thomas, Weyhrauch, Wilson Nays: Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Foster, Gara, Gardner, Gruenberg, Guttenberg, Kerttula, LeDoux, Ramras, Seaton Excused: Kapsner Stoltze changed from "Nay" to "Yea". And so, Amendment No. 2 to Amendment No. 1 was adopted. Representative Kelly moved and asked unanimous consent to withdraw Amendment No. 1 as amended. There being no objection, it was so ordered. Amendment No. 4 was offered by Representative Rokeberg: Page 5, lines 7 - 26: Delete all material and insert: "(i) For a month that ends before April 1, 2021, the total tax levied by (e) and (g) of this section on gas produced from a lease or property in the Cook Inlet sedimentary basin may not exceed (1) for a lease or property that first commenced commercial production of gas before April 1, 2006, (A) the amount of gas produced from the lease or property, (B) multiplied by the average rate of tax that was imposed under this chapter on 2006-05-08 House Journal Page 3906 gas produced from the lease or property for the 12-month period ending on March 31, 2006, and (C) multiplied by the average prevailing value for gas delivered in the Cook Inlet area for the 12-month period ending March 31, 2006, as determined by the department under AS 43.55.020(f); (2) for a lease or property that first commences commercial production of gas after March 31, 2006, (A) the amount of gas produced from the lease or property, (B) multiplied by the average rate of tax that was imposed under this chapter on gas produced from all leases or properties in the Cook Inlet sedimentary basin for the 12-month period ending on March 31, 2006, and (C) multiplied by the average prevailing value for gas delivered in the Cook Inlet area for the 12-month period ending March 31, 2006, as determined by the department under AS 43.55.020(f)." Page 19, lines 19 - 28: Delete "Except as provided in (f) of this section, for purposes of AS 43.55.011(e) and (g), the production tax value of the taxable oil and gas produced during a month is (1) the total of (A) the gross value at the point of production of the oil taxable under AS 43.55.011(e) and (g) and produced by the producer from all leases or properties in the state, less three-quarters of the gross value at the point of production of the oil taxable under AS 43.55.011(e) and (g) and produced by the producer from leases or properties in the Cook Inlet sedimentary basin, and (B) one-third of the gross value at the point of production of the gas taxable under AS 43.55.011(e) and (g) and produced by the producer from all leases or properties in the state, (2) less the producer's lease expenditures for the month as adjusted under (e) of this section." Insert "Except as provided in (f) of this section, for purposes of AS 43.55.011(e) and (g), the production tax value of the taxable oil and gas produced during a month, other than gas produced from leases or properties in the Cook Inlet sedimentary basin, is (1) the total of (A) the gross value at the point of production of the oil taxable under AS 43.55.011(e) and (g) and produced by the producer from all leases or properties in the state, less three-quarters of the gross value at the point of production of the oil taxable under AS 43.55.011(e) and (g) and produced by the producer from leases or properties in the Cook Inlet sedimentary basin, and (B) two-thirds of the gross value at the 2006-05-08 House Journal Page 3907 point of production of the gas taxable under AS 43.55.011(e) and (g) and produced by the producer from all leases or properties in the state outside the Cook Inlet sedimentary basin, less one-sixth of the gross value at the point of production of the gas taxable under AS 43.55.011(e) and (g) and produced by the producer from all leases or properties in the state located south of 68 degrees 15 minutes North latitude outside of the Cook Inlet sedimentary basin, (2) less the producer's lease expenditures for the month as adjusted under (e) of this section, other than lease expenditures applicable to gas produced from leases or properties in the Cook Inlet sedimentary basin. Except as provided in (f) of this section, for the purposes of AS 43.55.011(e) and (g), the production tax value of the taxable gas produced during a month from leases or properties in the Cook Inlet sedimentary basin is one-third of the gross value at the point of production of the gas taxable under AS 43.55.011(e) and (g) and produced by the producer from those leases or properties, less the producer's lease expenditures for the month applicable to gas produced from leases or properties in the Cook Inlet sedimentary basin, as adjusted under (e) of this section." Page 19, line 28, following "However,": Delete "the" Insert "a" Page 20, line 6: Delete "the" Insert "a" Page 20, line 7: Delete "the taxable oil and" Insert "taxable oil or" Page 20, line 11, following "cause": Delete "the" Insert "a" Page 20, lines 11 - 12: Delete "the taxable oil and" Insert "taxable oil or" 2006-05-08 House Journal Page 3908 Page 21, line 28, following "gas": Insert "; (4) the lease expenditures that are applicable to oil or gas produced in an area of the state shall be determined under regulations adopted by the department that provide for reasonable methods of allocating costs between oil and gas and between areas of the state" Representative Rokeberg moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Holm objected. Amendment to Amendment No. 4 was offered by Representative Holm: Delete all material and insert: "Page 3, line 28: Delete "Except as otherwise provided under (i) of this section, the" Insert "The" Page 4, line 28: Delete "Except as otherwise provided under (i) of this section, the" Insert "The" Page 5, lines 7 - 26: Delete all material." Representative Holm moved and asked unanimous consent that Amendment to Amendment No. 4 be adopted. Representative Rokeberg objected. **The presence of Representative Kapsner, who was excused (page 3904), was noted. The question being: "Shall Amendment to Amendment No. 4 be adopted?" The roll was taken with the following result: 2006-05-08 House Journal Page 3909 HCS CSSB 305(FIN) am H Second Reading Amendment to Amendment No. 4 YEAS: 8 NAYS: 32 EXCUSED: 0 ABSENT: 0 Yeas: Coghill, Elkins, Guttenberg, Holm, Kelly, Ramras, Thomas, Weyhrauch Nays: Anderson, Berkowitz, Chenault, Cissna, Crawford, Croft, Dahlstrom, Foster, Gara, Gardner, Gatto, Gruenberg, Harris, Hawker, Joule, Kapsner, Kerttula, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Rokeberg, Salmon, Samuels, Seaton, Stoltze, Wilson And so, Amendment to Amendment No. 4 was not adopted. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 4 YEAS: 36 NAYS: 4 EXCUSED: 0 ABSENT: 0 Yeas: Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Foster, Gara, Gardner, Gatto, Gruenberg, Harris, Hawker, Joule, Kapsner, Kelly, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Salmon, Samuels, Seaton, Stoltze, Thomas, Wilson Nays: Guttenberg, Holm, Kerttula, Weyhrauch And so, Amendment No. 4 was adopted. Amendment No. 6 (page 3846) was again offered by Representative Weyhrauch. Representative Weyhrauch moved and asked unanimous consent that Amendment No. 6 be adopted. 2006-05-08 House Journal Page 3910 Representative Kerttula objected. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 6 YEAS: 31 NAYS: 9 EXCUSED: 0 ABSENT: 0 Yeas: Anderson, Berkowitz, Chenault, Coghill, Crawford, Croft, Dahlstrom, Elkins, Foster, Gardner, Gruenberg, Harris, Hawker, Holm, Kelly, Kohring, Kott, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson Nays: Cissna, Gara, Gatto, Guttenberg, Joule, Kapsner, Kerttula, LeDoux, Salmon And so, Amendment No. 6 was adopted. Amendment No. 25 was offered by Representative Croft: Page 19, line 25: Delete "one-third of" Page 19, line 27, following "in the state": Insert "north of 68 degrees, 10 minutes latitude" Representative Croft moved and asked unanimous consent that Amendment No. 25 be adopted. There was objection. The question being: "Shall Amendment No. 25 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 25 YEAS: 13 NAYS: 27 EXCUSED: 0 ABSENT: 0 2006-05-08 House Journal Page 3911 Yeas: Berkowitz, Cissna, Crawford, Croft, Gara, Gardner, Gruenberg, Guttenberg, Joule, Kapsner, McGuire, Moses, Salmon Nays: Anderson, Chenault, Coghill, Dahlstrom, Elkins, Foster, Gatto, Harris, Hawker, Holm, Kelly, Kerttula, Kohring, Kott, LeDoux, Lynn, Meyer, Neuman, Olson, Ramras, Rokeberg, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson And so, Amendment No. 25 was not adopted. Amendment No. 30 was offered by Representative Harris: Page 3, line 29: Delete "20" Insert "21" Page 4, line 19: Delete "20" Insert "21" Representative Kelly moved and asked unanimous consent that Amendment No. 30 be adopted. There was objection. Amendment No. 1 to Amendment No. 30 was offered by Representative Kelly: Delete "21" Insert "22.5" Representative Kelly moved and asked unanimous consent that Amendment No. 1 to Amendment No. 30 be adopted. There was objection. The question being: "Shall Amendment No. 1 to Amendment No. 30 be adopted?" The roll was taken with the following result: 2006-05-08 House Journal Page 3912 HCS CSSB 305(FIN) am H Second Reading Amendment No. 1 to Amendment No. 30 YEAS: 21 NAYS: 19 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Coghill, Crawford, Croft, Dahlstrom, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Holm, Kelly, Kerttula, LeDoux, Lynn, Neuman, Olson, Seaton, Stoltze, Thomas Nays: Anderson, Chenault, Elkins, Foster, Harris, Hawker, Joule, Kapsner, Kohring, Kott, McGuire, Meyer, Moses, Ramras, Rokeberg, Salmon, Samuels, Weyhrauch, Wilson And so, Amendment No. 1 to Amendment No. 30 was adopted. The question being: "Shall Amendment No. 30 as amended be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 30 as amended YEAS: 22 NAYS: 18 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Coghill, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Holm, Kelly, Kerttula, LeDoux, Lynn, Neuman, Olson, Seaton, Stoltze, Thomas Nays: Anderson, Chenault, Foster, Harris, Hawker, Joule, Kapsner, Kohring, Kott, McGuire, Meyer, Moses, Ramras, Rokeberg, Salmon, Samuels, Weyhrauch, Wilson And so, Amendment No. 30 as amended was adopted. Amendment No. 14 was offered by Representative Hawker: Page 5, line 2: Delete "35" Insert "45" 2006-05-08 House Journal Page 3913 Representative Hawker moved and asked unanimous consent that Amendment No. 14 be adopted. Representative Kelly objected. The question being: "Shall Amendment No. 14 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 14 YEAS: 17 NAYS: 23 EXCUSED: 0 ABSENT: 0 Yeas: Anderson, Chenault, Coghill, Foster, Hawker, Holm, Kohring, Kott, Meyer, Moses, Olson, Ramras, Rokeberg, Salmon, Samuels, Weyhrauch, Wilson Nays: Berkowitz, Cissna, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Joule, Kapsner, Kelly, Kerttula, LeDoux, Lynn, McGuire, Neuman, Seaton, Stoltze, Thomas And so, Amendment No. 14 was not adopted. Amendment No. 17 was offered by Representatives Ramras, Thomas, and Anderson: Page 2, line 13: Delete "sec. 11" Insert "sec. 18" Page 2, line 22: Delete "secs. 26 and 28" Insert "secs. 33 and 35" Page 2, following line 25: Insert new bill sections to read: "* Sec. 2. AS 21.89.070(c) is amended to read: (c) A contribution claimed as a credit under this section may not (1) be claimed as a credit under more than one provision of this title; and 2006-05-08 House Journal Page 3914 (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.075, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000. * Sec. 3. AS 21.89.075(c) is amended to read: (c) A contribution claimed by a taxpayer as a credit under this section may not (1) be claimed as a credit under more than one provision of this title; (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000; or (3) be claimed as a credit unless the contribution qualifies for the credit under (d) of this section." Renumber the following bill sections accordingly. Page 3, following line 1: Insert a new bill section to read: "* Sec. 5. AS 43.20.014(d) is amended to read: (d) A contribution claimed as a credit under this section may not (1) be claimed as a credit under another provision of this title; (2) also be allowed as a deduction under 26 U.S.C. 170 against the tax imposed by this chapter; and (3) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000." Renumber the following bill sections accordingly. Page 6, following line 4: Insert new bill sections to read: "* Sec. 10. AS 43.55.019(a) is amended to read: (a) For cash contributions accepted for direct instruction, research, and educational support purposes, including library and museum acquisitions, and contributions to endowment, by an 2006-05-08 House Journal Page 3915 Alaska university foundation or by a nonprofit, public or private, Alaska two-year or four-year college accredited by a regional accreditation association, a producer of oil or gas is allowed as a credit against the taxes [TAX] due under this chapter (1) 50 percent of contributions of not more than $100,000; and (2) 100 percent of the next $100,000 of contributions. * Sec. 11. AS 43.55.019(d) is amended to read: (d) A contribution claimed as a credit under (a) of this section may not (1) be claimed as a credit under another provision of this title; and (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.56.018, AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000. * Sec. 12. AS 43.55.019(e) is amended to read: (e) The department shall [MAY], by regulation, establish procedures by which a taxpayer may allocate a pro rata share of a credit claimed under this section against monthly tax payments made during the tax year. * Sec. 13. AS 43.55.019 is amended by adding new subsections to read: (f) A producer of oil or gas is allowed a credit against the taxes due under this chapter for cash charitable contributions not included in (a) of this section and accepted by a qualified recipient of (1) 25 percent of the first $100,000 of its qualified charitable contribution amount for a calendar year; (2) 37.5 percent of the next $900,000 of its charitable contribution amount for a calendar year above $100,000; and (3) 50 percent of the next $4,000,000 of its charitable contribution amount for a calendar year above $1,000,000. (g) For the purposes of determining the charitable contribution amount in (f) of this section, the charitable contribution amount for a producer of oil or gas for a calendar year is four times the amount of the contributions by the producer during that year accepted by qualified recipients in the judicial district of the state in which the amount of the producer's contributions accepted by qualified recipients that year in that 2006-05-08 House Journal Page 3916 judicial district is the lowest among all judicial districts. A contribution made under a contract with the state or an explicit moral obligation, agreement, or understanding with the state may not be considered for purposes of (f) - (i) of this section. (h) A contribution claimed as a credit under (f) of this section may not be claimed as a credit under any other provision of this title. (i) For purposes of (f) - (i) of this section, "qualified recipient" means (1) a charitable entity active in the state that is qualified under 26 U.S.C. 501(c)(3) (Internal Revenue Code); (2) the state, or an agency, instrumentality, or program of the state; (3) a municipality or other political subdivision of the state, or an agency, instrumentality, or program of a municipality or political subdivision of the state." Renumber the following sections accordingly. Page 31, following line 26: Insert new bill sections to read: "* Sec. 41. AS 43.56.018(d) is amended to read: (d) A contribution claimed as a credit under this section may not (1) be claimed as a credit under another provision of this title; and (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.65.018, AS 43.75.018, or AS 43.77.045, exceed $150,000. * Sec. 42. AS 43.65.018(d) is amended to read: (d) A contribution claimed as a credit under this section may not (1) be claimed as a credit under another provision of this title; and (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.75.018, or AS 43.77.045, exceed $150,000. * Sec. 43. AS 43.75.018(d) is amended to read: 2006-05-08 House Journal Page 3917 (d) A contribution claimed as a credit under this section may not (1) be claimed as a credit under another provision of this title; and (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.65.018, or AS 43.77.045, exceed $150,000. * Sec. 44. AS 43.77.045(c) is amended to read: (c) A contribution claimed as a credit under this section may not (1) be claimed as a credit under another provision of this title; and (2) when combined with credits taken during the taxpayer's tax year under AS 21.89.070, 21.89.075, AS 43.20.014, AS 43.55.019(a) [AS 43.55.019], AS 43.56.018, AS 43.65.018, or AS 43.75.018, exceed $150,000." Renumber the following bill sections accordingly. Page 32, line 1: Delete "Sections 5, 7 - 10, 12, 13, 15 - 18, 20, 24, and 26 - 34" Insert " Sections 8, 14 - 17, 19, 20, 22 - 25, 27, 31, 33 - 40, and 45" Page 32, line 2: Delete "sec. 25" Insert "sec. 32" Page 32, line 4: Delete "Section 11" Insert "Section 18" Page 32, line 5: Delete "sec. 11" Insert "sec. 18" Page 32, line 9: Delete "sec. 12" Insert "sec. 19" 2006-05-08 House Journal Page 3918 Page 32, line 11: Delete "sec. 12" Insert "sec. 19" Page 32, line 14: Delete "sec. 12" Insert "sec. 19" Page 32, line 16: Delete "sec. 12" Insert "sec. 19" Page 32, line 18: Delete "sec. 12" Insert "sec. 19" Page 32, line 20: Delete "sec. 12" Insert "sec. 19" Page 32, line 22: Delete "sec. 12" Insert "sec. 19" Page 32, line 24: Delete "sec. 25" Insert "sec. 32" Page 32, line 27: Delete "sec. 25" Insert "sec. 32" Page 33, line 3: Delete "sec. 7" Insert "sec. 14" Page 33, line 4: Delete "sec. 7" Insert "sec. 14" 2006-05-08 House Journal Page 3919 Page 33, line 11: Delete "sec. 5" Insert "sec. 8" Delete "sec. 7" Insert "sec. 14" Page 33, line 13: Delete "sec. 5" Insert "sec. 8" Page 33, line 16: Delete "18" Insert "25" Page 33, line 17: Delete "sec. 18" Insert "sec. 25" Page 33, line 23: Delete "sec. 18" Insert "sec. 25" Page 33, line 25: Delete "sec. 26" Insert "sec. 33" Delete "sec. 28" Insert "sec. 35" Page 33, line 27: Delete "sec. 26" Insert "sec. 33" Delete "sec. 28" Insert "sec. 35" Page 34, line 2: Delete "sec. 26" Insert "sec. 33" Delete "sec. 28" Insert "sec. 35" 2006-05-08 House Journal Page 3920 Page 34, line 4: Delete "sec. 26" Insert "sec. 33" Delete "sec. 28" Insert "sec. 35" Page 34, line 6: Delete "26" Insert "33" Delete "sec. 28" Insert "sec. 35" Page 34, line 8: Delete "secs. 26 and 28" Insert "secs. 33 and 35" Page 34, line 14: Delete "sec. 26" Insert "sec. 33" Page 34, line 15: Delete "sec. 28" Insert "sec. 35" Page 34, lines 24 - 25: Delete "secs. 5, 7 - 10, 12, 13, 15 - 18, 20, 24 - 34, and 36" Insert "secs. 8, 14 - 17, 19, 20, 22 - 25, 27, 31 - 40, 45, and 47" Page 35, following line 5: Insert a new paragraph to read: "(4) AS 43.55.019 from "Oil or gas producer education credit" to "Oil or gas producer education and charitable contribution credits";" Renumber the following paragraphs accordingly. Page 35, lines 12 - 13: Delete "secs. 5, 7 - 10, 12, 13, 15 - 18, 20, and 24 - 36" Insert "secs. 8, 14 - 17, 19, 20, 22 - 25, 27, 31 - 40, and 45 - 47" 2006-05-08 House Journal Page 3921 Representative Ramras moved and asked unanimous consent that Amendment No. 17 be adopted. There was objection. Representative Ramras moved and asked unanimous consent to withdraw Amendment No. 17. There being no objection, it was so ordered. Amendment No. 19 was offered by Representative Gara: Page 11, lines 23 - 24: Delete "on or after April 1, 2001" Insert "after December 31, 2005" Representative Gara moved and asked unanimous consent that Amendment No. 19 be adopted. There was objection. The question being: "Shall Amendment No. 19 be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 19 YEAS: 12 NAYS: 28 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Crawford, Croft, Gara, Gardner, Gruenberg, Guttenberg, Joule, Kapsner, Kerttula, Salmon Nays: Anderson, Chenault, Coghill, Dahlstrom, Elkins, Foster, Gatto, Harris, Hawker, Holm, Kelly, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson And so, Amendment No. 19 was not adopted. Amendment No. 22 was offered by Representatives Gara, Berkowitz, and Kerttula: 2006-05-08 House Journal Page 3922 Page 1, line 1 through Page 2, line 9 (title amendment): Delete all material. Insert ""An Act providing for a production tax on oil and gas; repealing the oil and gas production (severance) tax; relating to the calculation of the gross value at the point of production of oil or gas and to the determination of the value of oil and gas for purposes of the production tax on oil and gas; providing for tax credits against the tax for certain expenditures and losses; relating to the relationship of the production tax on oil and gas to other taxes, to the dates those tax payments and surcharges are due, to interest on overpayments of the tax, and to the treatment of the tax in a producer's settlement with the royalty owners; relating to flared gas, and to oil and gas used in the operation of a lease or property under the production tax; relating to the prevailing value of oil or gas under the production tax; relating to surcharges on oil; relating to statements or other information required to be filed with or furnished to the Department of Revenue, to the penalty for failure to file certain reports for the tax, to the powers of the Department of Revenue, and to the disclosure of certain information required to be furnished to the Department of Revenue as applicable to the administration of the tax; relating to criminal penalties for violating conditions governing access to and use of confidential information relating to the tax, and to the deposit of tax money collected by the Department of Revenue; amending the definitions of 'gas,' 'oil,' and certain other terms for purposes of the production tax, and as the definition of the term 'gas' applies in the Alaska Stranded Gas Development Act, and adding further definitions; making conforming amendments; and providing for an effective date."" Page 2, line 11 through Page 35, line 14: Delete all material and insert the content of CSSB 305(RES). Representative Gara moved and asked unanimous consent that Amendment No. 22 be adopted. There was objection. The question being: "Shall Amendment No. 22 be adopted?" The roll was taken with the following result: 2006-05-08 House Journal Page 3923 HCS CSSB 305(FIN) am H Second Reading Amendment No. 22 YEAS: 9 NAYS: 31 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Crawford, Croft, Gara, Gardner, Gruenberg, Guttenberg, Kerttula Nays: Anderson, Chenault, Coghill, Dahlstrom, Elkins, Foster, Gatto, Harris, Hawker, Holm, Joule, Kapsner, Kelly, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Salmon, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson And so, Amendment No. 22 was not adopted. Amendment No. 28 was offered by Representatives Crawford and Croft: Page 9, lines 7 - 10: Delete all material and insert: "(c) A credit or portion of a credit under this section may not be used to reduce a person's tax liability under AS 43.55.011(e) for any month (1) below six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (2) below zero for all other oil and gas produced in Alaska." Insert a new subsection to read: (d) Any unused credit or portion of a credit not used under this subsection may be applied in a later month." Reletter the following subsections accordingly. Page 19, lines 28 - 29: Delete "However, the production tax value calculated under this subsection may not be less than zero." Page 20, following line 3: Insert a new subsection to read: 2006-05-08 House Journal Page 3924 "(b) The production tax value calculated under this section may not be (1) less than six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (2) less than zero for all other oil and gas produced in Alaska." Reletter the following subsections accordingly. Page 20, lines 5 - 13: Delete all material and insert: "(1) any adjusted lease expenditures that would otherwise be deductible in a month but whose deduction would cause the production tax value calculated under (a) of this section of the taxable oil and gas produced during the month to be less than (A) six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (B) zero for all other oil and gas produced in Alaska may be added to the producer's adjusted lease expenditures for one or more other months in the same calendar year; (2) the total of any adjusted lease expenditures that are not deductible in any month during a calendar year because their deduction would cause the production tax value calculated under (a) of this section of the taxable oil and gas produced during one or more months to be less than (A) six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (B) zero for all other oil and gas produced in Alaska may be used to establish a carried-forward annual loss under AS 43.55.024(b);" Renumber following paragraph accordingly. Page 26, line 3, following "under (c)": Insert "and (d)" Page 26, line 30 through Page 27, line 4: Delete all material and insert: 2006-05-08 House Journal Page 3925 "(d) A tax credit authorized by this section may not be applied to reduce a producer's tax liability under AS 43.55.011(e) for any month (A) below six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (B) below zero for all other oil and gas produced in Alaska. (e) An unused portion of a tax credit that could otherwise be applied for a month but whose application would cause the producer's tax liability under AS 43.55.011(e) for the month to be less than (A) six percent of the gross value at the point of production for oil and gas produced in the area of Alaska lying north of 68 degrees North latitude; and (B) zero for all other oil and gas produced in Alaska may be applied for one or more other months in the same calendar year to the extent otherwise allowed under this section." Reletter the following subsections accordingly. Representative Crawford moved and asked unanimous consent that Amendment No. 28 be adopted. Representative Samuels objected. Amendment No. 1 to Amendment No. 28 was offered by Representative Weyhrauch: Delete "six percent" Insert "four percent" Representative Weyhrauch moved and asked unanimous consent that Amendment No. 1 to Amendment No. 28 be adopted. There being no objection, it was so ordered. The question being: "Shall Amendment No. 28 as amended be adopted?" The roll was taken with the following result: 2006-05-08 House Journal Page 3926 HCS CSSB 305(FIN) am H Second Reading Amendment No. 28 as amended YEAS: 23 NAYS: 17 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Harris, Holm, Joule, Kapsner, Kerttula, LeDoux, Lynn, Neuman, Salmon, Seaton, Stoltze, Weyhrauch Nays: Anderson, Chenault, Coghill, Foster, Hawker, Kelly, Kohring, Kott, McGuire, Meyer, Moses, Olson, Ramras, Rokeberg, Samuels, Thomas, Wilson And so, Amendment No. 28 as amended was adopted. Representative Weyhrauch moved and asked unanimous consent to rescind previous action in adopting Amendment No. 28 as amended. Representative Berkowitz objected. The question being: "Shall the House rescind previous action in adopting Amendment No. 28 as amended?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Rescind Previous Action/Amendment No. 28 as amended YEAS: 25 NAYS: 15 EXCUSED: 0 ABSENT: 0 Yeas: Anderson, Chenault, Coghill, Foster, Harris, Hawker, Holm, Kelly, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson Nays: Berkowitz, Cissna, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Joule, Kapsner, Kerttula, Salmon And so, the motion passed. 2006-05-08 House Journal Page 3927 Amendment No. 28 as amended was before the House. Amendment No. 2 to Amendment No. 28 as amended was offered by Representative Croft: Under Page 9, lines 7 - 10, following "production": Insert "for all producers producing an average of more than 50,000 barrels per day in a given taxing month, and zero for all other producers" Under Page 19, lines 28 - 29, following "production": Insert "for all producers producing an average of more than 50,000 barrels per day in a given taxing month, and zero for all other producers" Representative Croft moved and asked unanimous consent that Amendment No. 2 to Amendment No. 28 as amended be adopted. There was objection. The question being: "Shall Amendment No. 2 to Amendment No. 28 as amended be adopted?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Amendment No. 2 to Amendment No. 28 as amended YEAS: 18 NAYS: 22 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Crawford, Croft, Dahlstrom, Elkins, Gara, Gardner, Gatto, Gruenberg, Guttenberg, Joule, Kapsner, Kelly, Kerttula, Lynn, Salmon, Wilson Nays: Anderson, Chenault, Coghill, Foster, Harris, Hawker, Holm, Kohring, Kott, LeDoux, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Samuels, Seaton, Stoltze, Thomas, Weyhrauch And so, Amendment No. 2 to Amendment No. 28 as amended was not adopted. The question being: "Shall Amendment No. 28 as amended be adopted?" The roll was taken with the following result: 2006-05-08 House Journal Page 3928 HCS CSSB 305(FIN) am H Second Reading Amendment No. 28 as amended YEAS: 9 NAYS: 31 EXCUSED: 0 ABSENT: 0 Yeas: Berkowitz, Cissna, Croft, Gara, Gardner, Gruenberg, Guttenberg, Kapsner, Kerttula Nays: Anderson, Chenault, Coghill, Crawford, Dahlstrom, Elkins, Foster, Gatto, Harris, Hawker, Holm, Joule, Kelly, Kohring, Kott, LeDoux, Lynn, McGuire, Meyer, Moses, Neuman, Olson, Ramras, Rokeberg, Salmon, Samuels, Seaton, Stoltze, Thomas, Weyhrauch, Wilson Gara changed from "Nay" to "Yea". And so, Amendment No. 28 as amended was not adopted. Representative Rokeberg moved and asked unanimous consent that the House rescind previous action in adopting Amendment No. 30 as amended (page 3912). Representative Berkowitz objected. The question being: "Shall the House rescind previous action in adopting Amendment No. 30 as amended?" The roll was taken with the following result: HCS CSSB 305(FIN) am H Second Reading Rescind Previous Action/Amendment No. 30 as amended YEAS: 23 NAYS: 17 EXCUSED: 0 ABSENT: 0 Yeas: Anderson, Chenault, Coghill, Elkins, Foster, Gatto, Harris, Hawker, Holm, Joule, Kott, Lynn, McGuire, Meyer, Moses, Olson, Ramras, Rokeberg, Salmon, Samuels, Thomas, Weyhrauch, Wilson Nays: Berkowitz, Cissna, Crawford, Croft, Dahlstrom, Gara, Gardner, Gruenberg, Guttenberg, Kapsner, Kelly, Kerttula, Kohring, LeDoux, Neuman, Seaton, Stoltze And so, the motion passed. 2006-05-08 House Journal Page 3929 Amendment No. 30 as amended (page 3911) was before the House. Amendment No. 2 to Amendment No. 30 as amended was offered by Representative Rokeberg: Delete "20" Insert "21.5" Add to the amendment: "Page 8, line 30: Delete "20" Insert "21.5"" Representative Rokeberg moved and asked unanimous consent that Amendment No. 2 to Amendment No. 30 as amended be adopted. Representative Berkowitz objected. Representative Coghill lifted the call.