Legislature(2021 - 2022)
2022-05-18 Senate Journal
Full Journal pdf2022-05-18 Senate Journal Page 2987 HB 349 CS FOR HOUSE BILL NO. 349(RES) "An Act relating to the establishment of oil and gas drilling units, spacing, and patterns" was read the third time. Senator Wielechowski moved the bill be returned to second reading for all amendments offered today. Without objection, the bill was returned to second reading. Senator Wielechowski offered Amendment No. 1 : Page 1, line 2, following "patterns": Insert "; making public certain information related to the oil and gas production tax; and relating to the duties of the Department of Revenue" Page 2, following line 14: Insert new bill sections to read: "* Sec. 4. 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) - (m) [AS 43.05.230(i) - (l)] or for purposes of investigation and law enforcement. The 2022-05-18 Senate Journal Page 2988 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. * Sec. 5. AS 43.05.230 is amended by adding a new subsection to read: (m) The information provided by a producer to the department on a return for the payment of oil production taxes assessed under AS 43.55.011 is public information. * Sec. 6. AS 43.55.890 is amended to read: Sec. 43.55.890. Disclosure of tax information. Notwithstanding any contrary provision of AS 40.25.100, and regardless of whether the information is considered under AS 43.05.230(e) to constitute statistics classified to prevent the identification of particular returns or reports, the department shall make publicly available online [MAY PUBLISH] the following information under this chapter, by producer [IF AGGREGATED AMONG THREE OR MORE PRODUCERS OR EXPLORERS], showing by month or calendar year and by lease or property, unit, or area of the state: (1) the identity of the producer; (2) [(1)] the amount of oil or gas production produced by the producer; (3) [(2)] the total amount of taxes levied under this chapter or paid by the producer under this chapter; (4) [(3)] the effective tax paid by the producer [RATES] under this chapter; (5) [(4)] the gross value of oil or gas at the point of production produced by the producer; (6) [(5)] the transportation costs for oil or gas incurred by the producer; (7) the total [(6)] qualified capital expenditures of the producer, as defined in AS 43.55.023; (8) the total [(7)] exploration expenditures of the 2022-05-18 Senate Journal Page 2989 producer under AS 43.55.025; (9) the [(8)] production tax values of oil or gas under AS 43.55.160 produced by the producer; (10) the total [(9)] lease expenditures of the producer under AS 43.55.165; (11) the total [(10)] adjustments to lease expenditures made by the producer under AS 43.55.170; (12) [(11)] tax credits applicable or potentially applicable to the producer against taxes levied by this chapter. * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to read: APPLICABILITY. AS 40.25.100(a), as amended by sec. 4 of this Act, AS 43.05.230(m), enacted by sec. 5 of this Act, and AS 43.55.890, as amended by sec. 6 of this Act, apply to information provided by a producer on a return filed on or after the effective date of this Act." Senator Wielechowski moved for the adoption of Amendment No. 1. Objections were heard. The question being: "Shall Amendment No. 1 be adopted?" The roll was taken with the following result: CSHB 349(RES) Second Reading Amendment No. 1? YEAS: 6 NAYS: 11 EXCUSED: 0 ABSENT: 3 Yeas: Begich, Gray-Jackson, Kawasaki, Kiehl, Olson, Wielechowski Nays: Costello, Holland, Hughes, Micciche, Myers, Reinbold, Revak, Shower, Stevens, von Imhof, Wilson Absent: Bishop, Hoffman, Stedman and so, Amendment No. 1 failed. Senator Wielechowski offered Amendment No. 2 : Page 1, line 2, following "patterns": Insert "; relating to credits against the oil and gas production tax; and providing for an effective date." 2022-05-18 Senate Journal Page 2990 Page 2, following line 14: Insert new bill sections to read: "* Sec. 4. AS 43.55.024(j) is amended to read: (j) A producer may apply against the producer's tax liability for the calendar year under AS 43.55.011(e) a tax credit in the amount specified in this subsection for each barrel of oil taxable under AS 43.55.011(e) that does not receive a reduction in the gross value at the point of production under AS 43.55.160(f) or (g) and that is produced during a calendar year after December 31, 2013, from leases or properties north of 68 degrees North latitude. A tax credit under this subsection may not reduce a producer's tax liability for a calendar year under AS 43.55.011(e) below the amount calculated under AS 43.55.011(f). The amount of the tax credit for a barrel of taxable oil subject to this subsection produced during a month of the calendar year is (1) $5 [$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) $4 [$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) $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; (4) $2 [$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; (5) $1 [$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; (6) zero [$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; (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; (8) $1 FOR EACH BARREL OF TAXABLE OIL IF 2022-05-18 Senate Journal Page 2991 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; (9) ZERO IF THE AVERAGE GROSS VALUE AT THE POINT OF PRODUCTION FOR THE MONTH IS GREATER THAN OR EQUAL TO $150 A BARREL]. * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: RETROACTIVITY. Section 4 of this Act is retroactive to January 1, 2022. * Sec. 6. Sections 4 and 5 of this Act take effect immediately under AS 01.10.070(c)." Senator Wielechowski moved for the adoption of Amendment No. 2. Objections were heard. The question being: "Shall Amendment No. 2 be adopted?" The roll was taken with the following result: CSHB 349(RES) Second Reading Amendment No. 2? YEAS: 7 NAYS: 12 EXCUSED: 0 ABSENT: 1 Yeas: Begich, Gray-Jackson, Kawasaki, Kiehl, Olson, Stedman, Wielechowski Nays: Bishop, Costello, Holland, Hughes, Micciche, Myers, Reinbold, Revak, Shower, Stevens, von Imhof, Wilson Absent: Hoffman and so, Amendment No. 2 failed. Senator Kiehl offered Amendment No. 3 : Pg. 2, Following line 14: Insert a new section to read: 2022-05-18 Senate Journal Page 2992 "* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: CONVEYANCE OF STATE LAND TO THE CITY AND BOROUGH OF JUNEAU. The Department of Natural Resources shall, without cost, convey all rights, titles, and interests to the following parcels of land situated within United States Survey No. 7 Townsite of Juneau and Alaska Tidelands Survey No. 3, Juneau Recording District, First Judicial District, Juneau, Alaska, containing 3.55 acres of land, more or less, to the City and Borough of Juneau, subject to the reservations described in AS 38.05.125 and the provisions of AS 38.05.127: (1) All of Tract A, Downtown Transportation Center Plat, recorded as Plat No. 2009-11, Juneau Recording District; (2) Lots 7 and 8, Block 1, United States Survey No. 7, Townsite of Juneau; (3) Lots 1, 2, 3, 6, 7, and 8, Block 6, United States Survey No. 7, Townsite of Juneau, excluding the following particularly described parcel: Beginning at? the west corner of Lot 8; thence South 41 degrees 17 minutes East along the southwest line of Lot 8, a distance of 14.13 feet; thence northerly a distance of 20.0 feet, more or less, to a point on the northwest line of Lot 8, said point being North 48 degrees 43 minutes East a distance of 14.13 feet from the point of beginning; thence South 48 degrees 43 minutes West, along the northwest line of Lot 8, a distance of 14.13 feet to the point of beginning; (4) Lots 3, 4, 5, and 6, Block D, United States Survey No. 7, Townsite of Juneau, and the following particularly described parcel: Beginning at the north corner of Lot 5; thence South 48 degrees 43 minutes West, on the northwest lot line a distance of 50.0 feet to the west corner of Lot 5; thence North 41 degrees 17 minutes West a distance of 20.0 feet; thence North 48 degrees 43 minutes East a distance of 61.58 feet; thence South 36 degrees 44 minutes East a distance of 120.78 feet; thence South 48 degrees 43 minutes West a distance of 2.0 feet to the east corner of Lot 5; thence North 41 degrees 17 minutes? West, along the northwest lot line, a distance of 100.40 feet to the point of beginning; excluding the southwest 8.94 feet of Lot 6, Block D; (5) Lots 2, 3, 4, 5, 6, and 7, Block E, United States Survey 2022-05-18 Senate Journal Page 2993 No. 7, Townsite of Juneau, excluding the following particularly described parcels: (A) Beginning at the west corner of Lot 2; thence North 48 degrees 43 minutes East along the northwest line of Lot 2, a distance of 18.06 feet; thence South 82 degrees 25 minutes 10 seconds East a distance of 149.86 feet to a point on the southeast line of said Lot 4; thence South 48 degrees 43 minutes West a distance of 17.83 feet to the most southerly corner of Lot 4; thence North 76 degrees 36 minutes West a distance of 40.30 feet to an angle point on the south line of Lot 3, said point being Corner 10 of Alaska Tidelands Survey No. 3; thence North 84 degrees 38 minutes West a distance of 110.0 feet to the point of beginning; (B) Beginning at the south corner of Lot 7; thence North 52 degrees 42 minutes West along the southwest line of Lot 7 a distance of 66.90 feet, the line being coincident with the boundary line between United States Survey No. 7 and Alaska Tideland Survey No. 3; thence North 43 degrees 23 minutes East a distance of 7.87 feet; thence South 52 degrees 42 minutes East a distance of 50.40 feet to the southeast line of Lot 7; thence South 48 degrees 43 minutes West along the lot line a distance of 18.06 feet to the point of beginning." Senator Kiehl moved for the adoption of Amendment No. 3. Senator Reinbold objected, then withdrew her objection. There being no further objection, Amendment No. 3 was adopted. Senator Stevens offered Amendment No. 4 : Page 1, line 2, following "patterns": Insert "; providing for the transfer of and addition of names to a personal use cabin permit for a cabin on state land; and providing for an effective date" Page 2, following line 14: Insert new bill sections to read: "* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSFER OF PERMIT FOR PERSONAL USE CABIN ON STATE LAND. (a) Notwithstanding regulations adopted by the Department of Natural Resources in 1984 and amendments to those 2022-05-18 Senate Journal Page 2994 regulations adopted by that department in 1993, 2001, and 2018 under the authority of AS 38.04.035, 38.04.900, AS 38.05.020, AS 41.21.020, and AS 44.37.011 as those provisions read on the date those regulations were adopted, that state that a personal use cabin permit is not transferable or assignable and is valid only during the lifetime of the original holder of the permit, the department shall, (1) at the request of an original permit holder, (A) transfer the permit holder's permit to an immediate family member of the permit holder; or (B) add an immediate family member of the permit holder as an additional permittee with a right of survivorship in the permit; and (2) if the original permit holder of a permit that has not been transferred or assigned dies before the age provided by the National Center for Health Statistics as the average life expectancy of a person residing in the state at the time of the permit holder's birth, allow an immediate family member of the deceased permit holder to assume the privileges of the permit for a period equal to the difference between the original permit holder's age at death and the life expectancy determined under this paragraph. (b) Notwithstanding the regulations that state that a personal use cabin permit is not transferable or assignable and is valid only during the lifetime of the original holder, an immediate family member of an original personal use cabin permit holder or deceased personal use cabin permit holder may assume the privileges of a permit under (a) of this section only if the person is qualified under regulations adopted by the Department of Natural Resources. (c) For an immediate family member of a personal use cabin permit holder (1) to be added to or transferred a permit under (a)(1) of this section, the original permit holder must submit the immediate family member's name to the Department of Natural Resources; (2) to assume the privileges of a permit under (a)(2) of this section, the immediate family member must apply to the Department of Natural Resources within 30 days after the permit holder's death. (d) Once the original permit holder has died, a personal use cabin permit that an immediate family member has been transferred, or had the individual's name added to, under (a)(1) of this section is valid only during the lifetime of the immediate family member. (e) The Department of Natural Resources shall adopt regulations 2022-05-18 Senate Journal Page 2995 to implement this section. (f) In this section, "personal use cabin permit" means a permit issued by the Department of Natural Resources under regulations adopted by the department in 1984 and amendments to those regulations that were adopted in 1993, 2001, and 2018 to an individual to use an existing cabin that was placed on state land before August 1, 1984. * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to read: PERSONAL USE CABIN PERMITS THAT EXPIRED ON OR AFTER JANUARY 1, 2020, AND BEFORE THE EFFECTIVE DATE OF THIS ACT. (a) The Department of Natural Resources shall allow an immediate family member of the holder of a personal use cabin permit that allowed the holder to use an existing cabin that was placed on state land that was issued by the Department of Natural Resources under regulations adopted by the department in 1984 and amendments to those regulations that were adopted in 1993, 2001, and 2018 that expired on or after January 1, 2020, and before the effective date of this Act, because of the death of the original permit holder, to assume the former privileges of the expired permit as provided under sec. 4(a)(2) of this Act as though the permit had not expired. (b) Notwithstanding sec. 4(c)(2) of this Act, for an immediate family member of a personal use cabin permit holder to assume the former privileges of an expired permit under (a) of this section, the immediate family member must apply to the Department of Natural Resources within 60 days after the effective date of this section. (c) In calculating the period for which an immediate family member may assume the former privileges of an expired permit under (a) of this section, the Department of Natural Resources shall count the period after January 1, 2020, that the original permit holder was deceased against the period the family member may assume the former privileges of the expired permit. * Sec. 6. Sections 4 and 5 ofthis Act take effect immediately under AS 01.10.070(c)." Senator Stevens moved for the adoption of Amendment No. 4. Senator Begich objected, then withdrew his objection. There being no further objection, Amendment No. 4 was adopted. 2022-05-18 Senate Journal Page 2996 CS FOR HOUSE BILL NO. 349(RES) am S(efd add S) was automatically in third reading. Senator Reinbold moved and asked unanimous consent to abstain from voting due to a conflict of interest. Objections were heard and Senator Reinbold was required to vote. The question being: "Shall CS FOR HOUSE BILL NO. 349(RES) am S(efd add S) "An Act relating to the establishment of oil and gas drilling units, spacing, and patterns; providing for the transfer of and addition of names to a personal use cabin permit for a cabin on state land; and providing for an effective date" pass the Senate?" The roll was taken with the following result: CSHB 349(RES) am S(efd add S) Third Reading - Final Passage Effective Date(s) YEAS: 19 NAYS: 0 EXCUSED: 0 ABSENT: 1 Yeas: Begich, Bishop, Costello, Gray-Jackson, Holland, Hughes, Kawasaki, Kiehl, Micciche, Myers, Olson, Reinbold, Revak, Shower, Stedman, Stevens, von Imhof, Wielechowski, Wilson Absent: Hoffman and so, CS FOR HOUSE BILL NO. 349(RES) am S(efd add S) passed the Senate. Senator Hughes moved and asked unanimous consent the vote on the passage of the bill be considered the vote on the effective date clause(s). Without objection, it was so ordered and the bill was referred to the Secretary for engrossment.