Legislature(2015 - 2016)
2016-04-12 House Journal
Full Journal pdf2016-04-12 House Journal Page 2234 HB 247 The following, which was held to today's calendar (page 2206), was read the third time: CS FOR HOUSE BILL NO. 247(FIN) "An Act relating to interest applicable to delinquent tax; relating to the oil and gas production tax, tax payments, and credits; relating to the minimum oil and gas production tax; relating to refunds for the gas storage facility tax credit, the liquefied natural gas storage facility tax credit, and the qualified in-state oil refinery infrastructure expenditures tax credit; relating to the assessment of an oil and gas production tax imposed; relating to oil and gas lease expenditures and production tax credits for municipal entities; relating to a bond or cash deposit required for an oil or gas business; establishing a legislative working group to study the tax structure for oil and gas produced south of 68 degrees North latitude; and providing for an effective date." Representative Thompson moved and asked unanimous consent that CSHB 247(FIN) be returned to second reading for the specific purpose of considering Amendment No. 1. There being no objection, it was so ordered. 2016-04-12 House Journal Page 2235 The Speaker stated that, without objection, CSHB 247(FIN) would be returned to second reading for all amendments. Amendment No. 1 (title amendment) was offered by Representative Thompson: Page 1, lines 5 - 6: Delete "relating to the assessment of an oil and gas production tax imposed;" Representative Thompson moved and asked unanimous consent that Amendment No. 1 be adopted. Representative Kawasaki objected and withdrew the objection. There being no further objection, Amendment No. 1 was adopted, and the new title follows: CS FOR HOUSE BILL NO. 247(FIN)(title am) "An Act relating to interest applicable to delinquent tax; relating to the oil and gas production tax, tax payments, and credits; relating to the minimum oil and gas production tax; relating to refunds for the gas storage facility tax credit, the liquefied natural gas storage facility tax credit, and the qualified in-state oil refinery infrastructure expenditures tax credit; relating to oil and gas lease expenditures and production tax credits for municipal entities; relating to a bond or cash deposit required for an oil or gas business; establishing a legislative working group to study the tax structure for oil and gas produced south of 68 degrees North latitude; and providing for an effective date." Amendment No. 2 was offered by Representatives Gara, Kawasaki, Kreiss-Tomkins, Drummond, Tuck, Kito, Wool, and Tarr: Page 5, line 30, through page 7, line 3: Delete all material and insert: "(2) oil and gas produced on and after January 1, 2017, but before January 1, 2022, from leases or properties that include land north of 68 degrees North latitude, (A) by a producer that does not qualify under (B) of this paragraph, may not be less than 2016-04-12 House Journal Page 2236 (i) 10 percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is more than $85; (ii) nine percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $80 but not over $85; (iii) eight percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $75 but not over $80; (iv) seven percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $70 but not over $75; (v) six percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $65 but not over $70; (vi) five percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $60 but not over $65; or (vii) four percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is $60 or less; or (B) by a producer that produces less than an average of 30,000 barrels of oil a day, in total, from leases or properties located north of 68 degrees North latitude and that produces oil or gas that qualifies for a reduction in the gross value of the point of production under 2016-04-12 House Journal Page 2237 AS 43.55.160(f) may not be less than (i) 10 percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is more than $100; (ii) nine percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $95 but not over $100; (iii) eight percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $90 but not over $95; (iv) seven percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $85 but not over $90; (v) six percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $80 but not over $85; (vi) five percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $75 but not over $80; or (vii) four percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is $75 or less; and (3) oil produced on and after January 1, 2022, from leases or properties that include land north of 68 degrees North latitude, (A) by a producer that does not qualify under (B) of this paragraph, may not be less than 2016-04-12 House Journal Page 2238 (i) 10 [(A) FOUR] percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is more than $85 [$25]; (ii) nine [(B) THREE] percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $80 [$20] but not over $85 [$25]; (iii) eight [(C) TWO] percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $75 [$17.50] but not over $80 [$20]; (iv) seven [(D) ONE] percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $70 [$15] but not over $75; (v) six percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $65 but not over $70; (vi) five percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $60 but not over $65 [$17.50]; or (vii) four [(E) ZERO] percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is $60 [$15] or less; or (B) by a producer that produces less than an average of 30,000 barrels of oil a day, in total, from leases or properties located north of 68 degrees North latitude 2016-04-12 House Journal Page 2239 and that produces oil that qualifies for a reduction in the gross value of the point of production under AS 43.55.160(f) may not be less than (i) 10 percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is more than $100; (ii) nine percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $95 but not over $100; (iii) eight percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $90 but not over $95; (iv) seven percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $85 but not over $90; (v) six percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $80 but not over $85; (vi) five percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is over $75 but not over $80; or (vii) four percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil for sale on the United States West Coast during the calendar year for which the tax is due is $75 or less." 2016-04-12 House Journal Page 2240 Page 11, lines 14 - 15: Delete "zero percent, one percent, two percent, three percent, or four percent, as applicable," Insert "the [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE PERCENT, OR FOUR] percent [, AS] applicable under AS 43.55.011(f) [,]" Page 13, lines 6 - 7: Delete "zero percent, one percent, two percent, three percent, or four percent, as applicable," Insert "the [ZERO PERCENT, ONE PERCENT, TWO PERCENT, THREE PERCENT, OR FOUR] percent [, AS] applicable under AS 43.55.011(f) [,]" Representative Gara moved and asked unanimous consent that Amendment No. 2 be adopted. Representative Thompson objected. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 2 YEAS: 13 NAYS: 25 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool Nays: Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 2 was not adopted. Amendment No. 3 was not offered. Amendment No. 4 was offered by Representatives Gara, Kawasaki, Kreiss-Tomkins, Wool, Tarr, Drummond, Tuck, and Kito: 2016-04-12 House Journal Page 2241 Page 1, line 3, following "tax;" (title amendment): Insert "repealing a maximum production tax for certain oil;" Page 5, following line 4: Insert a new bill section to read: "* Sec. 10. AS 43.55.011(e) is amended to read: (e) There is levied on the producer of oil or gas a tax for all oil and gas produced each calendar year from each lease or property in the state, less any oil and gas the ownership or right to which is exempt from taxation or constitutes a landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as otherwise provided under (f), (j), [(k),] (o), and (p) of this section, for oil and gas produced (1) before January 1, 2014, the tax is equal to the sum of (A) the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and (B) the sum, over all months of the calendar year, of the tax amounts determined under (g) of this section; (2) on and after January 1, 2014, and before January 1, 2022, the tax is equal to the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 35 percent; (3) on and after January 1, 2022, the tax for (A) oil is equal to the annual production tax value of the taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent; (B) gas is equal to 13 percent of the gross value at the point of production of the taxable gas; if the gross value at the point of production of gas produced from a lease or property is less than zero, that gross value at the point of production is considered zero for purposes of this subparagraph." Renumber the following bill sections accordingly. Page 7, line 8: Delete ", (k)," Insert "[, (k),]" 2016-04-12 House Journal Page 2242 Page 7, line 11: Delete ", (k)," Insert "[, (k),]" Page 7, line 13: Delete ", (k)," Insert "[, (k),]" Page 7, line 15: Delete "or (k) of this section for the production of oil" Insert "[OR (k) OF THIS SECTION FOR THE PRODUCTION OF OIL]" Page 7, line 19: Delete ", (k)," Insert "[, (k),]" Page 9, line 4: Delete "oil or" Insert "[OIL OR]" Delete ", (k)," Insert "[, (k),]" Page 9, line 28: Delete "oil or" Insert "[OIL OR]" Page 9, line 29: Delete ", (k)," Insert "[, (k),]" Page 9, line 31: Delete "or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil" Insert "[OR SET OUT IN AS 43.55.011(k)(1) OR (2), AS APPLICABLE, FOR OIL]" Page 10, lines 3 - 5: Delete "and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the amount of taxable oil produced during the month for 2016-04-12 House Journal Page 2243 the amount of taxable oil produced during the calendar year" Insert "[AND SUBSTITUTING IN AS 43.55.011(k)(1)(A) OR (2)(A), AS APPLICABLE, THE AMOUNT OF TAXABLE OIL PRODUCED DURING THE MONTH FOR THE AMOUNT OF TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR]" Page 11, line 27: Delete "oil or" Insert "[OIL OR]" Delete ", (k)," Insert "[, (k),]" Page 12, line 2: Delete "oil or gas, respectively," Insert "[OIL OR] gas [, RESPECTIVELY,]" Page 12, line 4: Delete "oil or gas, respectively," Insert "[OIL OR] gas [, RESPECTIVELY,]" Page 12, line 18: Delete "oil or" Insert "[OIL OR]" Page 12, line 19: Delete ", (k)," Insert "[, (k),]" Page 12, line 21: Delete "or set out in AS 43.55.011(k)(1) or (2), as applicable, for oil" Insert "[OR SET OUT IN AS 43.55.011(k)(1) OR (2), AS APPLICABLE, FOR OIL]" Page 12, lines 24 - 26: Delete "and substituting in AS 43.55.011(k)(1)(A) or (2)(A), as applicable, the amount of taxable oil produced during the month for the amount of taxable oil produced during the calendar year" Insert "[AND SUBSTITUTING IN AS 43.55.011(k)(1)(A) OR (2)(A), AS APPLICABLE, THE AMOUNT OF TAXABLE OIL 2016-04-12 House Journal Page 2244 PRODUCED DURING THE MONTH FOR THE AMOUNT OF TAXABLE OIL PRODUCED DURING THE CALENDAR YEAR]" Page 25, following line 12: Insert a new bill section to read: "* Sec. 32. AS 43.55.160(e) is amended to read: (e) Any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would otherwise be deductible by a producer in a calendar year but whose deduction would cause an annual production tax value calculated under (a)(1) or (h) of this section of taxable oil or gas produced during the calendar year to be less than zero may be used to establish a carried-forward annual loss under AS 43.55.023(b). However, the department shall provide by regulation a method to ensure that, for a period for which a producer's tax liability is limited by AS 43.55.011(j), [(k),] (o), or (p), or former AS 43.55.011(k), any adjusted lease expenditures under AS 43.55.165 and 43.55.170 that would otherwise be deductible by a producer for that period but whose deduction would cause a production tax value calculated under (a)(1)(C), (D), (E), or (F), or (h)(3) of this section to be less than zero are accounted for as though the adjusted lease expenditures had first been used as deductions in calculating the production tax values of oil or gas subject to any of the limitations under AS 43.55.011(j), [(k),] (o), or (p) or former AS 43.55.011(k) that have positive production tax values so as to reduce the tax liability calculated without regard to the limitation to the maximum amount provided for under the applicable provision of AS 43.55.011(j), [(k),] (o), or (p) or former AS 43.55.011(k). Only the amount of those adjusted lease expenditures remaining after the accounting provided for under this subsection may be used to establish a carried-forward annual loss under AS 43.55.023(b). In this subsection, "producer" includes "explorer."" Renumber the following bill sections accordingly. Page 35, line 10: Delete "26, and 27" Insert "27, and 28" 2016-04-12 House Journal Page 2245 Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 18, 19, 29, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" Page 35, line 21: Delete "sec. 42" Insert "sec. 44" Page 35, line 23: Delete "sec. 42" Insert "sec. 44" Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2246 Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 25, 45, and 49" Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 18, 19, 29 - 31, 35 - 39, 41, 44, 47, and 48" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" Representative Gara moved and asked unanimous consent that Amendment No. 4 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 4 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 4 YEAS: 14 NAYS: 24 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Munoz, Ortiz, Spohnholz, Tarr, Tuck, Wool Nays: Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 4 was not adopted. Amendment No. 5 was not offered. 2016-04-12 House Journal Page 2247 Amendment No. 6 was offered by Representatives Josephson, Tarr, Drummond, Gara, Kreiss-Tomkins, Tuck, Kito, and Kawasaki: Page 16, line 20, following "AS 43.55.011(e).": Insert "After December 31, 2016, a producer may not take a credit under this subsection after five consecutive years of claiming a credit under this subsection or eight years after the year a credit is first claimed under this subsection, whichever is first." Representative Josephson moved and asked unanimous consent that Amendment No. 6 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 6 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 6 YEAS: 16 NAYS: 22 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Edgmon, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Munoz, Ortiz, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Foster, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 6 was not adopted. Amendment No. 7 was offered by Representatives Tarr, Kawasaki, Wool, Drummond, Kreiss-Tomkins, Gara, Tuck, and Kito: Page 25, following line 12: Insert a new bill section to read: "* Sec. 31. AS 43.55.150 is amended by adding a new subsection to read: 2016-04-12 House Journal Page 2248 (d) The gross value at the point of production may not be less than zero." Renumber the following bill sections accordingly. Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 43" Page 35, line 17: Delete "35, and 36" Insert "36, and 37" Page 35, line 18: Delete "sec. 42" Insert "sec. 43" Page 35, line 21: Delete "sec. 42" Insert "sec. 43" Page 35, line 23: Delete "sec. 42" Insert "sec. 43" Page 35, line 26: Delete "sec. 42" Insert "sec. 43" Page 35, line 29: Delete "sec. 42" Insert "sec. 43" Page 35, line 31: Delete "sec. 42" Insert "sec. 43" Page 36, line 4: Delete "sec. 33" Insert "sec. 34" 2016-04-12 House Journal Page 2249 Page 36, line 5: Delete "sec. 42" Insert "sec. 43" Page 36, line 7: Delete "sec. 42" Insert "sec. 43" Page 37, line 2: Delete "43, and 47" Insert "44, and 48" Page 37, line 4: Delete "33 - 37, 39, 42, 45, and 46" Insert "34 - 38, 40, 43, 46, and 47" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 50 and 51" Representative Tarr moved and asked unanimous consent that Amendment No. 7 be adopted. Representative Neuman objected. The question being: "Shall Amendment No. 7 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 7 YEAS: 19 NAYS: 19 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz, Seaton, Spohnholz, Tarr, Tuck, Vazquez, Wool Nays: Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Stutes, Talerico, Thompson, Tilton, Wilson 2016-04-12 House Journal Page 2250 Excused: Colver, Hawker And so, Amendment No. 7 was not adopted. Amendment No. 8 was not offered. Amendment No. 9 was offered by Representatives Kawasaki, Drummond, Kreiss-Tomkins, Gara, Tuck, Kito, Guttenberg, and Tarr: Page 1, line 1, following "tax;" (title amendment): Insert "relating to confidential tax information in the possession of the Department of Revenue;" Page 4, following line 1: Insert new bill sections to read: "* Sec. 7. AS 43.05.230(f) is amended to read: (f) A wilful violation of the provisions of this section or of a condition imposed under AS 43.55.040(1)(B) is punishable by a fine of not more than $5,000, or by imprisonment for not more than two years, or by both. The penalty under this subsection may be in addition to, and not in place of, an applicable criminal sanction under state or federal law. * Sec. 8. AS 43.05.230 is amended by adding a new subsection to read: (l) The department may disclose confidential tax information, documents, or other materials related to a credit for oil and gas investment, exploration, production, delivery, storage, or use against a tax imposed under AS 43.20 or AS 43.55 to a legislator, an agent of a legislator or a legislative committee, or a contractor of a legislator or a legislative committee if (1) the information is disclosed during an executive session of a committee hearing or an executive session of a meeting of one house of the legislature as a committee of the whole; (2) only legislators, agents, and contractors complying with the remainder of this subsection are in attendance at the committee meeting; (3) written information, documents, or other materials are clearly labeled as confidential tax information; (4) the legislator, agent, or contractor has executed an 2016-04-12 House Journal Page 2251 agreement with the department (A) that acknowledges that tax information, documents, and materials received under this subsection are confidential by law; (B) that acknowledges that it is illegal to publicly disclose confidential tax information, documents, or materials received under this subsection unless the information is otherwise publicly available; and (C) in which the legislator, agent, or contractor agrees not to (i) disclose the information received during the meeting or the contents of documents or materials viewed during a committee meeting under this section; and (ii) remove any written information, documents, or materials from the physical location of the committee meeting." Renumber the following bill sections accordingly. Page 35, line 10: Delete "Sections 7 - 9, 26, and 27" Insert "Sections 9 - 11, 28, and 29" Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 19, 20, 30, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" Page 35, line 21: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2252 Page 35, line 23: Delete "sec. 42" Insert "sec. 44" Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 26, 45, and 49" Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" 2016-04-12 House Journal Page 2253 Representative Tarr moved and asked unanimous consent that Amendment No. 9 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 9 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 9 YEAS: 14 NAYS: 24 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Gara, Guttenberg, Herron, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool Nays: Chenault, Edgmon, Foster, Gattis, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 9 was not adopted. Amendment No. 10 was offered by Representatives Josephson and Kawasaki: Page 1, line 3, following "tax;" (title amendment): Insert "relating to a minimum production tax on oil;" Page 5, following line 4: Insert a new bill section to read: "* Sec. 10. AS 43.55.011(e) is amended to read: (e) There is levied on the producer of oil or gas a tax for all oil and gas produced each calendar year from each lease or property in the state, less any oil and gas the ownership or right to which is exempt from taxation or constitutes a landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as otherwise provided under (f), (j), (k), and (o) - (q) [(o), AND (p)] of this section, for oil and gas produced (1) before January 1, 2014, the tax is equal to the sum of 2016-04-12 House Journal Page 2254 (A) the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and (B) the sum, over all months of the calendar year, of the tax amounts determined under (g) of this section; (2) on and after January 1, 2014, and before January 1, 2022, the tax is equal to the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 35 percent; (3) on and after January 1, 2022, the tax for (A) oil is equal to the annual production tax value of the taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent; (B) gas is equal to 13 percent of the gross value at the point of production of the taxable gas; if the gross value at the point of production of gas produced from a lease or property is less than zero, that gross value at the point of production is considered zero for purposes of this subparagraph." Renumber the following bill sections accordingly. Page 6, lines 2 - 5: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 6, lines 8 - 11: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 7, following line 20: Insert a new bill section to read: "* Sec. 13. AS 43.55.011 is amended by adding a new subsection to read: (q) The total amount of tax credits that may be applied against the tax levied by (f) of this section for a calendar year may 2016-04-12 House Journal Page 2255 not exceed the sum of the amount of the tax credits or fractions of tax credits that are allowed under AS 43.55.020(a) to be subtracted in calculating the installment payments of estimated tax for each month in the calendar year." Renumber the following bill sections accordingly. Page 7, line 24, following "AS 43.55.011(f)": Insert "or (q)" Page 15, line 9, following "AS 43.55.011(f)": Insert "or (q)" Page 17, line 2, following "AS 43.55.011(f)": Insert "or (q)" Page 19, line 9, following "AS 43.55.011(f)": Insert "or (q)" Page 19, line 13, following "AS 43.55.011(f)": Insert "or (q)" Page 19, line 20, following "AS 43.55.011(f)": Insert "or (q)" Page 22, line 8, following "AS 43.55.011(f)": Insert "or (q)" Page 35, line 10, following "APPLICABILITY.": Insert "(a)" Page 35, line 10: Delete "26, and 27" Insert "28, and 29" Page 35, following line 11: Insert a new subsection to read: "(b) The limitations on the use of tax credits in AS 43.55.011(q), added by sec. 13 of this Act, AS 43.55.019(e), as amended by sec. 14 of this Act, AS 43.55.020(a), as amended by sec. 15 of this Act, 2016-04-12 House Journal Page 2256 AS 43.55.023(c), as amended by sec. 18 of this Act, AS 43.55.024(f), as amended by sec. 22 of this Act, AS 43.55.024(g), as amended by sec. 23 of this Act, and AS 43.55.025(q), added by sec. 27 of this Act, apply to credits applied to reduce a tax liability for a tax year starting on or after the effective date of secs. 13, 14, 15, 18, 22, 23, and 27 of this Act." Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 19, 20, 30, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" Page 35, line 21: Delete "sec. 42" Insert "sec. 44" Page 35, line 23: Delete "sec. 42" Insert "sec. 44" Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2257 Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 26, 45, and 49" Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" Representative Josephson moved and asked unanimous consent that Amendment No. 10 be adopted. Representative Talerico objected. The question being: "Shall Amendment No. 10 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 10 YEAS: 17 NAYS: 21 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool 2016-04-12 House Journal Page 2258 Nays: Chenault, Edgmon, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 10 was not adopted. Amendment No. 11 was offered by Representatives Guttenberg, Kawasaki, Tarr, Tuck, Gara, Drummond, and Josephson: Page 1, line 1, following "tax;" (title amendment): Insert "relating to information concerning tax credits and tax credit certificates;" Page 3, following line 4: Insert a new bill section to read: "* Sec. 6. AS 40.25.100(a) is amended to read: (a) Information in the possession of the Department of Revenue that discloses the particulars of the business or affairs of a taxpayer or other person, including information under AS 38.05.020(b)(11) that is subject to a confidentiality agreement under AS 38.05.020(b)(12), is not a matter of public record, except as provided in AS 43.05.230(i) - (n) [AS 43.05.230(i) OR (k)] or for purposes of investigation and law enforcement. The information shall be kept confidential except when its production is required in an official investigation, administrative adjudication under AS 43.05.405 - 43.05.499, or court proceeding. These restrictions do not prohibit the publication of statistics presented in a manner that prevents the identification of particular reports and items, prohibit the publication of tax lists showing the names of taxpayers who are delinquent and relevant information that may assist in the collection of delinquent taxes, or prohibit the publication of records, proceedings, and decisions under AS 43.05.405 - 43.05.499." Renumber the following bill sections accordingly. Page 4, following line 1: Insert a new bill section to read: "* Sec. 8. AS 43.05.230 is amended by adding new subsections to 2016-04-12 House Journal Page 2259 read: (l) The following information for persons claiming a credit under AS 43.55 or applying to the department for the purchase of a transferable tax credit certificate under AS 43.55.028 is public unless the department determines that the information meets an exception under AS 40.25.120(a): (1) the name of each person (A) claiming a credit under AS 43.55; (B) from whom the department purchases a transferable tax credit certificate under AS 43.55.028; and (2) the amount of each (A) credit under AS 43.55 claimed by the person in the calendar year, except for the credit in AS 43.55.024(j); and (B) transferable tax credit certificate purchased from the person under AS 43.55.028. (m) A person may not claim a credit under AS 43.55 or apply to the department for the purchase of a transferable tax credit certificate under AS 43.55.028 unless the person has signed an agreement with the department acknowledging the application of (l) of this section. (n) Within five days after claiming a credit under AS 43.55 or applying to the department for the purchase of a tax credit certificate or a refund or payment under AS 43.55.028, a person may request that the department determine whether the information under (l) of this section qualifies for an exception under AS 40.25.120(a). The department shall make a determination and provide written notice to the person within 10 days after a request under this subsection. Notwithstanding AS 43.05.240, a determination under this subsection is a final administrative decision subject to review by a superior court under AS 44.62 (Administrative Procedure Act)." Renumber the following bill sections accordingly. Page 35, line 10: Delete "Sections 7 - 9, 26, and 27" Insert "Sections 9 - 11, 28, and 29" Page 35, lines 15 - 16: 2016-04-12 House Journal Page 2260 Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 19, 20, 30, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" Page 35, line 21: Delete "sec. 42" Insert "sec. 44" Page 35, line 23: Delete "sec. 42" Insert "sec. 44" Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2261 Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 26, 45, and 49" Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" Representative Guttenberg moved and asked unanimous consent that Amendment No. 11 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 11 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 11 YEAS: 13 NAYS: 25 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool Nays: Chenault, Edgmon, Foster, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Colver, Hawker And so, Amendment No. 11 was not adopted. 2016-04-12 House Journal Page 2262 Amendment No. 12 was offered by Representative Seaton: Page 6, lines 2 - 5: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 6, lines 8 - 11: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 16, line 6, following "January 1, 2016,": Insert "and before January 1, 2017," Page 16, line 8, following "loss.": Insert "For lease expenditures incurred after December 31, 2016, to explore for, develop, or produce oil or gas deposits located north of 68 degrees North latitude, a producer or explorer may elect to take a tax credit in the amount of 25 percent of a carried- forward annual loss." Page 20, lines 3 - 27: Delete all material and insert: "(1) [$8 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS LESS THAN $80 A BARREL; (2) $7 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $80 A BARREL, BUT LESS THAN $90 A BARREL; (3) $6 FOR EACH BARREL OF TAXABLE OIL IF THE AVERAGE GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $90 A BARREL, BUT LESS THAN $100 A BARREL; 2016-04-12 House Journal Page 2263 (4)] $5 for each barrel of taxable oil if the average gross value at the point of production for the month is [GREATER THAN OR EQUAL TO $100 A BARREL, BUT] less than $110 a barrel; (2) [(5)] $4 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $110 a barrel, but less than $120 a barrel; (3) [(6)] $3 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $120 a barrel, but less than $130 a barrel; (4) [(7)] $2 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $130 a barrel, but less than $140 a barrel; (5) [(8)] $1 for each barrel of taxable oil if the average gross value at the point of production for the month is greater than or equal to $140 a barrel, but less than $150 a barrel; (6) [(9)] zero if the average gross value at the point of production for the month is greater than or equal to $150 a barrel." Page 22, line 10: Delete "The" Insert "Subject to the limitations in (k) of this section, the [THE]" Page 22, lines 14 - 16: Delete "The department may not purchase a total of more than $100,000,000 in tax credit certificates from a person in a calendar year." Page 23, line 3: Delete "a new subsection" Insert "new subsections" Page 23, following line 18: Insert a new subsection to read: "(k) In a calendar year, the department may not purchase tax credit certificates issued under this chapter if the sum of the purchases exceeds $50,000,000 a person or $200,000,000 a unit. If the total of the credit purchases applied for under this section and subject to the limitation in this subsection exceeds $200,000,000 2016-04-12 House Journal Page 2264 for a unit, the department shall prorate the purchase of tax credit certificates based on ownership interest in the unit. When calculating a sum of purchases under this subsection, the department shall include amounts used to reduce an outstanding liability under (j) of this section." Page 35, line 10, following "APPLICABILITY.": Insert "(a)" Page 35, following line 11: Insert a new subsection to read: "(b) The limitations on the use of tax credits added in AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a), as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and AS 43.55.025(q), added by sec. 25 of this Act, apply to credits applied to reduce a tax liability for a tax year starting on or after the effective date of secs. 12, 13, 16, 20, 21, and 25 of this Act." Representative Seaton moved and asked unanimous consent that Amendment No. 12 be adopted. Representative Pruitt objected. The question being: "Shall Amendment No. 12 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 12 YEAS: 19 NAYS: 19 EXCUSED: 2 ABSENT: 0 Yeas: Claman, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson 2016-04-12 House Journal Page 2265 Excused: Colver, Hawker And so, Amendment No. 12 was not adopted. Amendment No. 13 was offered by Representative Seaton: Page 15, following line 9: Insert a new bill section to read: "* Sec. 14. AS 43.55.023(a) is amended to read: (a) A producer or explorer may take a tax credit for a qualified capital expenditure as follows: (1) notwithstanding that a qualified capital expenditure may be a deductible lease expenditure for purposes of calculating the production tax value of oil and gas under AS 43.55.160(a), unless a credit for that expenditure is taken under AS 38.05.180(i), AS 41.09.010, AS 43.20.043, or AS 43.55.025, a producer or explorer that incurs a qualified capital expenditure (A) south of 68 degrees North latitude and outside the Cook Inlet sedimentary basin may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that expenditure; (B) in the Cook Inlet sedimentary basin before July 1, 2016, may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that expenditure; (2) a producer or explorer may take a credit for a qualified capital expenditure incurred in connection with geological or geophysical exploration or in connection with an exploration well only if the producer or explorer (A) agrees, in writing, to the applicable provisions of AS 43.55.025(f)(2); and (B) submits to the Department of Natural Resources all data that would be required to be submitted under AS 43.55.025(f)(2); (3) a credit for a qualified capital expenditure incurred to explore for, develop, or produce oil or gas deposits located north of 68 degrees North latitude may be taken only if the expenditure is incurred before January 1, 2014." Renumber the following bill sections accordingly. 2016-04-12 House Journal Page 2266 Page 15, line 10, following "AS 43.55.023(a)": Insert ", as amended by sec. 14 of this Act," Page 15, lines 17 - 19: Delete "may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 10 [20] percent of that expenditure" Insert "(A) south of 68 degrees North latitude and outside the Cook Inlet sedimentary basin may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 10 [20] percent of that expenditure; (B) in the Cook Inlet sedimentary basin before July 1, 2016, may also elect to apply a tax credit against a tax levied by AS 43.55.011(e) in the amount of 20 percent of that expenditure;" Page 16, line 17, following "December 31, 2016,": Insert "and before January 1, 2018," Page 16, line 19: Delete "10" Insert "25" Delete "loss." Insert "loss. For lease expenditures incurred after December 31, 2017, to explore for, develop, or produce oil or gas deposits located in the Cook Inlet sedimentary basin, a producer or explorer may elect to take a credit in the amount of 20 percent of a carried-forward annual loss." Page 18, lines 18 - 19: Delete "January 1, 2018" Insert "January 1, 2017" Page 18, lines 20 - 21: Delete all material. Reletter the following subparagraph accordingly. Page 18, line 24: Delete "December 31, 2017" Insert "December 31, 2016" 2016-04-12 House Journal Page 2267 Page 35, line 10: Delete "26, and 27" Insert "27, and 28" Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 43" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 18, 19, 29, 36, and 37" Page 35, line 18: Delete "sec. 42" Insert "sec. 43" Page 35, line 21: Delete "sec. 42" Insert "sec. 43" Page 35, line 23: Delete "sec. 42" Insert "sec. 43" Page 35, line 26: Delete "sec. 42" Insert "sec. 43" Page 35, line 29: Delete "sec. 42" Insert "sec. 43" Page 35, line 31: Delete "sec. 42" Insert "sec. 43" Page 36, line 4: Delete "sec. 33" Insert "sec. 34" 2016-04-12 House Journal Page 2268 Page 36, line 5: Delete "sec. 42" Insert "sec. 43" Page 36, line 7: Delete "sec. 42" Insert "sec. 43" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 25, 44, and 48" Page 37, following line 3: Insert a new bill section to read: "* Sec. 51. Section 14 of this Act takes effect July 1, 2016." Renumber the following bill sections accordingly. Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 18, 19, 29 - 31, 34 - 38, 40, 43, 46, and 47" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 50 - 52" Representative Seaton moved and asked unanimous consent that Amendment No. 13 be adopted. Representative Wilson objected. **The presence of Representative Colver, who was excused (page 2211) was noted. The question being: "Shall Amendment No. 13 be adopted?" The roll was taken with the following result: CSHB 247(FIN)(title am) Second Reading Amendment No. 13 YEAS: 20 NAYS: 19 EXCUSED: 1 ABSENT: 0 2016-04-12 House Journal Page 2269 Yeas: Claman, Colver, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Hawker And so, Amendment No. 13 was adopted. Amendment No. 14 was offered by Representatives Tuck, Kito, Kawasaki, Tarr, Josephson, Kreiss-Tomkins, Spohnholz, Gara, Ortiz, Guttenberg, and Drummond: Page 5, following line 4: Insert a new bill section to read: "* Sec. 10. AS 43.55.011(e) is amended to read: (e) There is levied on the producer of oil or gas a tax for all oil and gas produced each calendar year from each lease or property in the state, less any oil and gas the ownership or right to which is exempt from taxation or constitutes a landowner's royalty interest or for which a tax is levied by AS 43.55.014. Except as otherwise provided under (f), (j), (k), (o), and (p) of this section, for oil and gas produced (1) before January 1, 2014, the tax is equal to the sum of (A) the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 25 percent; and (B) the sum, over all months of the calendar year, of the tax amounts determined under (g) of this section; (2) on and after January 1, 2014, and before January 1, 2017 [JANUARY 1, 2022], the tax is equal to the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 35 percent; (3) on and after January 1, 2017, and before January 1, 2022, the tax is equal to the sum of (A) the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 35 percent; and 2016-04-12 House Journal Page 2270 (B) the sum, over all the months of the calendar year, of the amounts determined under (g) of this section; (4) on and after January 1, 2022, the tax for (A) oil is equal to the sum of (i) the annual production tax value of the taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent; and (ii) the sum, over all the months of the calendar year, of the amounts determined under (g) of this section; (B) gas is equal to 13 percent of the gross value at the point of production of the taxable gas; if the gross value at the point of production of gas produced from a lease or property is less than zero, that gross value at the point of production is considered zero for purposes of this subparagraph." Renumber the following bill sections accordingly. Page 7, following line 3: Insert a new bill section to read: "* Sec. 12. AS 43.55.011(g) is amended to read: (g) For purposes of (e) of this section, the tax amount is determined as follows: (1) before January 1, 2014, for [FOR] each month of a calendar year [BEFORE 2014] for which the producer's average monthly production tax value under AS 43.55.160(a)(2) of a BTU equivalent barrel of the taxable oil and gas is more than $30, the amount of tax for purposes of (e)(1)(B) of this section is determined by multiplying the monthly production tax value of the taxable oil and gas produced during the month by the tax rate calculated as follows: (A) [(1)] if the producer's average monthly production tax value of a BTU equivalent barrel of the taxable oil and gas for the month is not more than $92.50, the tax rate is 0.4 percent multiplied by the number that represents the difference between that average monthly production tax value of a BTU equivalent barrel and $30; or (B) [(2)] if the producer's average monthly production tax value of a BTU equivalent barrel of the taxable oil and gas for 2016-04-12 House Journal Page 2271 the month is more than $92.50, the tax rate is the sum of 25 percent and the product of 0.1 percent multiplied by the number that represents the difference between the average monthly production tax value of a BTU equivalent barrel and $92.50, except that the sum determined under this subparagraph [PARAGRAPH] may not exceed 50 percent; (2) on or after January 1, 2017, for each month of the calendar year for which the producer's average monthly production tax value under AS 43.55.160(a)(2) of a BTU equivalent barrel of the taxable oil and gas is more than $50, the difference between the monthly production tax value of a BTU equivalent barrel and $50 multiplied by the volume of oil and gas produced by the producer for the month multiplied by 10 percent." Renumber the following bill sections accordingly. Page 11, line 4: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 11, line 18: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 11, line 30: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 12, line 8: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 13, line 10: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the 2016-04-12 House Journal Page 2272 month under AS 43.55.011(g), as applicable," Page 13, line 25: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 14, line 3: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 14, line 17: Delete "35 percent" Insert "the sum of 35 percent and the tax rate calculated for the month under AS 43.55.011(g), as applicable," Page 35, line 10: Delete "26, and 27" Insert "28, and 29" Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "secs. 17, 18, 28, 35, and 36" Insert "secs. 19, 20, 30, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" Page 35, line 21: Delete "sec. 42" Insert "sec. 44" Page 35, line 23: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2273 Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 26, 45, and 49" Page 37, line 4: Delete "Sections 17, 18, 28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "Sections 19, 20, 30 - 32, 35 - 39, 41, 44, 47, and 48" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" Representative Tuck moved and asked unanimous consent that Amendment No. 14 be adopted. Representative Thompson objected. 2016-04-12 House Journal Page 2274 The question being: "Shall Amendment No. 14 be adopted?" The roll was taken with the following result: CSHB 247(FIN) am Second Reading Amendment No. 14 YEAS: 13 NAYS: 26 EXCUSED: 1 ABSENT: 0 Yeas: Claman, Drummond, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Spohnholz, Tarr, Tuck, Wool Nays: Chenault, Colver, Edgmon, Foster, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Seaton, Stutes, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Hawker And so, Amendment No. 14 was not adopted. Amendment No. 15 was offered by Representative Seaton: Page 23, lines 9 - 10: Delete "With the applicant's or claimant's consent, the" Insert "The" Page 32, line 24, following "subdivisions;": Insert "and" Page 32, line 26: Delete "; and" Insert "." Page 32, lines 27 - 29: Delete all material. Page 33, lines 16 - 21: Delete all material and insert: "(1) material, equipment, and supplies delivered in the state; (2) labor, including employee benefits; (3) taxes and other amounts due to the city and borough, 2016-04-12 House Journal Page 2275 in that order; (4) repair of public facilities; (5) taxes and other amounts due to the state." Representative Seaton moved and asked unanimous consent that Amendment No. 15 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 15 be adopted?" The roll was taken with the following result: CSHB 247(FIN) am Second Reading Amendment No. 15 YEAS: 20 NAYS: 19 EXCUSED: 1 ABSENT: 0 Yeas: Claman, Colver, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Munoz, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Hawker And so, Amendment No. 15 was adopted. Amendment No. 16 was offered by Representative Thompson: Page 25, line 30: Delete "five" Insert "seven" Page 26, lines 2 - 3: Delete "January 1, 2021" Insert "January 1, 2023" Representative Thompson moved and asked unanimous consent that Amendment No. 16 be adopted. 2016-04-12 House Journal Page 2276 Representative Kawasaki objected. The question being: "Shall Amendment No. 16 be adopted?" The roll was taken with the following result: CSHB 247(FIN) am Second Reading Amendment No. 16 YEAS: 21 NAYS: 17 EXCUSED: 1 ABSENT: 1 Yeas: Chenault, Colver, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Nays: Claman, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Excused: Hawker Absent: LeDoux And so, Amendment No. 16 was adopted. Amendment No. 17 was offered by Representative Thompson: Page 6, lines 2 - 5: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 6, lines 8 - 11: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 19, line 22, through page 20, line 27: Delete all material. Renumber the following bill sections accordingly. 2016-04-12 House Journal Page 2277 Page 35, line 10, following "APPLICABILITY.": Insert "(a)" Page 35, line 10: Delete "26, and 27" Insert "25, and 26" Page 35, following line 11: Insert a new subsection to read: "(b) The limitations on the use of tax credits added in AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a), as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and AS 43.55.025(q), added by sec. 24 of this Act, apply to credits applied to reduce a tax liability for a tax year starting on or after the effective date of secs. 12, 13, 16, 20, 21, and 24 of this Act." Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 41" Page 35, line 17: Delete "28, 35, and 36" Insert "27, 34, and 35" Page 35, line 18: Delete "sec. 42" Insert "sec. 41" Page 35, line 21: Delete "sec. 42" Insert "sec. 41" Page 35, line 23: Delete "sec. 42" Insert "sec. 41" Page 35, line 26: Delete "sec. 42" Insert "sec. 41" 2016-04-12 House Journal Page 2278 Page 35, line 29: Delete "sec. 42" Insert "sec. 41" Page 35, line 31: Delete "sec. 42" Insert "sec. 41" Page 36, line 4: Delete "sec. 33" Insert "sec. 32" Page 36, line 5: Delete "sec. 42" Insert "sec. 41" Page 36, line 7: Delete "sec. 42" Insert "sec. 41" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 23, 42, and 46" Page 37, line 4: Delete "28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "27 - 29, 32 - 36, 38, 41, 44, and 45" Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 48 and 49" Representative Thompson moved and asked unanimous consent that Amendment No. 17 be adopted. Representative Gara objected. Representative Thompson moved and asked unanimous consent to withdraw Amendment No. 17. There being no objection, it was so ordered. 2016-04-12 House Journal Page 2279 Amendment No. 18 was offered by Representative Thompson: Page 23, following line 2: Insert a new bill section to read: "* Sec. 27. AS 43.55.028(g) is amended to read: (g) The department shall [MAY] adopt regulations to carry out the purposes of this section, including standards and procedures to allocate available money among applications for purchases under this chapter and claims for refunds and payments under AS 43.20.046, 43.20.047, or 43.20.053 when the total amount of the applications for purchase and claims for refund exceed the amount of available money in the fund. The regulations adopted by the department (1) may not, when allocating available money in the fund under this section, distinguish an application for the purchase of a credit certificate issued under former AS 43.55.023(m) or a claim for a refund or payment under AS 43.20.046, 43.20.047, or 43.20.053; (2) must grant a preference to an applicant if at least 75 percent of the applicant's workforce in the state in the previous calendar year was composed of resident workers; in this paragraph, "resident worker" has the meaning given in AS 43.40.092(b)." Renumber the following bill sections accordingly. Page 35, line 10: Delete "27" Insert "28" Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 43" Page 35, line 17: Delete "28, 35, and 36" Insert "29, 36, and 37" Page 35, line 18: Delete "sec. 42" Insert "sec. 43" 2016-04-12 House Journal Page 2280 Page 35, line 21: Delete "sec. 42" Insert "sec. 43" Page 35, line 23: Delete "sec. 42" Insert "sec. 43" Page 35, line 26: Delete "sec. 42" Insert "sec. 43" Page 35, line 29: Delete "sec. 42" Insert "sec. 43" Page 35, line 31: Delete "sec. 42" Insert "sec. 43" Page 36, line 4: Delete "sec. 33" Insert "sec. 34" Page 36, line 5: Delete "sec. 42" Insert "sec. 43" Page 36, line 7: Delete "sec. 42" Insert "sec. 43" Page 37, line 2: Delete "43, and 47" Insert "44, and 48" Page 37, line 4: Delete "28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "29 - 31, 34 - 38, 40, 43, 46, and 47" 2016-04-12 House Journal Page 2281 Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 50 and 51" Representative Thompson moved and asked unanimous consent that Amendment No. 18 be adopted. Representative Guttenberg objected. Amendment to Amendment No. 18 was offered by Representatives Guttenberg, Kawasaki, and Tuck: Under (2): Delete "75" Insert "80" Representative Guttenberg moved and asked unanimous consent that Amendment to Amendment No. 18 be adopted. Representative Neuman objected and withdrew the objection. There being no further objection, Amendment to Amendment 18 was adopted. There being no further objection, Amendment No. 18 as amended was adopted. CSHB 247(FIN) am was automatically in third reading. Representative Josephson moved and asked unanimous consent that CSHB 247(FIN) am be returned to second reading for the specific purpose of considering Amendment No. 3. There being no objection, it was so ordered. The Speaker stated that, without objection, CSHB 247(FIN) am would be returned to second reading for all amendments. Amendment No. 3 was offered by Representatives Josephson, Kawasaki, Tarr, Gara, Kreiss-Tomkins, Drummond, Tuck, and Kito: 2016-04-12 House Journal Page 2282 Page 6, line 1: Delete "[(A)] four" Insert "five [(A) FOUR]" Page 6, lines 2 - 5: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 6, line 8: Delete "four" Insert "five" Page 6, lines 8 - 11: Delete ", except that a credit authorized under this chapter may reduce the tax under this subsection to less than four percent, but not to less than two percent of the gross value at the point of production" Page 35, line 10, following "APPLICABILITY.": Insert "(a)" Page 35, following line 11: Insert a new subsection to read: "(b) The limitations on the use of tax credits added in AS 43.55.019(e), as amended by sec. 12 of this Act, AS 43.55.020(a), as amended by sec. 13 of this Act, AS 43.55.023(c), as amended by sec. 16 of this Act, AS 43.55.024(f), as amended by sec. 20 of this Act, AS 43.55.024(g), as amended by sec. 21 of this Act, and AS 43.55.025(q), added by sec. 25 of this Act, apply to credits applied to reduce a tax liability for a tax year starting on or after the effective date of secs. 12, 13, 16, 20, 21, and 25 of this Act." Representative Josephson moved and asked unanimous consent that Amendment No. 3 be adopted. Representative Saddler objected. 2016-04-12 House Journal Page 2283 The question being: "Shall Amendment No. 3 be adopted?" The roll was taken with the following result: CSHB 247(FIN) am Second Reading Amendment No. 3 YEAS: 17 NAYS: 22 EXCUSED: 1 ABSENT: 0 Yeas: Claman, Drummond, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, LeDoux, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Colver, Edgmon, Gattis, Herron, Hughes, Johnson, Keller, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Hawker And so, Amendment No. 3 was not adopted. Amendment No. 5 was offered by Representatives Tarr, Kawasaki, Kreiss-Tomkins, Drummond, Gara, Tuck, and Kito: Page 16, line 12: Delete "For" Insert "Subject to the limitations in (q) of this section, for" Page 16, line 16: Delete "For" Insert "Subject to the limitations in (q) of this section, for" Page 19, following line 3: Insert a new bill section to read: "* Sec. 20. AS 43.55.023 is amended by adding new subsections to read: (q) In a single calendar year, the department may not grant a credit accrued under (b) of this section against the taxes due under this chapter and a cash payment under AS 43.55.028 resulting from a credit under (b) of this section if the credit or payment, or the sum of the credit and payment, exceeds (1) $25,000,000 for each person; (2) $100,000,000 for each unit. 2016-04-12 House Journal Page 2284 (r) If the total application of credits accrued under (b) of this section against taxes due under this chapter and applications for cash payments under AS 43.55.028 resulting from a credit under (b) of this section exceed $100,000,000 for each unit, the department shall prorate the application of credits accrued under (b) of this section against taxes due under this chapter and applications for cash payments under AS 43.55.028 resulting from a credit under (b) of this section by ownership interest in the unit." Renumber the following bill sections accordingly. Page 22, following line 8: Insert a new bill section to read: "* Sec. 27. AS 43.55.028(a) is amended to read: (a) The oil and gas tax credit fund is established as a separate fund of the state. The purpose of the fund is to purchase transferable tax credit certificates issued under AS 43.55.023 and production tax credit certificates issued under AS 43.55.025 and to pay refunds and payments claimed under AS 43.20.046, 43.20.047, or 43.20.053. A purchase of a transferable tax credit certificate issued under AS 43.55.023 is subject to the limitations in AS 43.55.023(q)." Renumber the following bill sections accordingly. Page 35, line 10: Delete "26, and 27" Insert "27, and 29" Page 35, lines 15 - 16: Delete "sec. 42" Insert "sec. 44" Page 35, line 17: Delete "28, 35, and 36" Insert "30, 37, and 38" Page 35, line 18: Delete "sec. 42" Insert "sec. 44" 2016-04-12 House Journal Page 2285 Page 35, line 21: Delete "sec. 42" Insert "sec. 44" Page 35, line 23: Delete "sec. 42" Insert "sec. 44" Page 35, line 26: Delete "sec. 42" Insert "sec. 44" Page 35, line 29: Delete "sec. 42" Insert "sec. 44" Page 35, line 31: Delete "sec. 42" Insert "sec. 44" Page 36, line 4: Delete "sec. 33" Insert "sec. 35" Page 36, line 5: Delete "sec. 42" Insert "sec. 44" Page 36, line 7: Delete "sec. 42" Insert "sec. 44" Page 37, line 2: Delete "Sections 24, 43, and 47" Insert "Sections 25, 45, and 49" Page 37, line 4: Delete "28 - 30, 33 - 37, 39, 42, 45, and 46" Insert "30 - 32, 35 - 39, 41, 44, 47, and 48" 2016-04-12 House Journal Page 2286 Page 37, line 6: Delete "secs. 49 and 50" Insert "secs. 51 and 52" Representative Tarr moved and asked unanimous consent that Amendment No. 5 be adopted. Representative Saddler objected. The question being: "Shall Amendment No. 5 be adopted?" The roll was taken with the following result: CSHB 247(FIN) am Second Reading Amendment No. 5 YEAS: 17 NAYS: 22 EXCUSED: 1 ABSENT: 0 Yeas: Claman, Drummond, Edgmon, Foster, Gara, Guttenberg, Josephson, Kawasaki, Kito, Kreiss-Tomkins, Ortiz, Seaton, Spohnholz, Stutes, Tarr, Tuck, Wool Nays: Chenault, Colver, Gattis, Herron, Hughes, Johnson, Keller, LeDoux, Lynn, Millett, Munoz, Nageak, Neuman, Olson, Pruitt, Reinbold, Saddler, Talerico, Thompson, Tilton, Vazquez, Wilson Excused: Hawker And so, Amendment No. 5 was not adopted. CSHB 247(FIN) am was automatically in third reading. The Speaker stated that, without objection, CSHB 247(FIN) am would be held in third reading to tomorrow's calendar.