04/16/2016 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 100(FIN)                                                                                                
                                                                                                                                
     "An Act  establishing a credit  against the  net income                                                                    
     tax   for   an   in-state  processing   facility   that                                                                    
     manufactures urea, ammonia,  or gas-to-liquid products;                                                                    
     relating  to  establishing  the value  of  the  state's                                                                    
     royalty  share of  gas  production  based on  contracts                                                                    
     with  certain   in-state  processing   facilities  that                                                                    
     manufacture urea, ammonia,  or gas-to- liquid products;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
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TOM WRIGHT, STAFF, SENATOR MIKE CHENAULT, explained the                                                                         
legislation.                                                                                                                    
                                                                                                                                
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Senator Bishop MOVED to ADOPT Amendment 1, 29-LS0423\S.4,                                                                       
Nauman, 4/12/16 (copy on file):                                                                                                 
                                                                                                                                
     Page2, line 8:                                                                                                             
     Delete "and"                                                                                                               
                                                                                                                                
     Page 2, line 20, following the second occurrence of                                                                        
     "gas":                                                                                                                     
                                                                                                                                
          Insert "; and                                                                                                         
                                                                                                                                
          (3) the agreement requires, to the maximum extent                                                                     
          permitted by law, the lessee to                                                                                       
                                                                                                                                
               (A) hire qualified  residents from throughout                                                                    
               the  state for  the management,  engineering,                                                                    
               construction, operation,  and maintenance of,                                                                    
               and  other  positions   for,  a  natural  gas                                                                    
               pipeline project;                                                                                                
               (B) establish hiring  facilities in the state                                                                    
               or  use  existing  hiring facilities  in  the                                                                    
               state; and                                                                                                       
               (C)  use,  as  far as  practicable,  the  job                                                                    
               centers and  associated services  operated by                                                                    
               the   Department  of   Labor  and   Workforce                                                                    
               Development   and  an   Internet-based  labor                                                                    
               exchange system operated by the state"                                                                           
                                                                                                                                
     Page 3, line 5, following "shall":                                                                                         
                                                                                                                                
          Insert"(l)"                                                                                                           
                                                                                                                                
     Page 3, line 10, following "gas":                                                                                          
                                                                                                                                
          Insert "; and demonstrate to the department that                                                                      
          the taxpayer, to the maximum extent possible,                                                                         
                                                                                                                                
     A) hires qualified residents  from throughout the state                                                                    
     for   the    management,   engineering,   construction,                                                                    
     operation,  and  maintenance  of, and  other  positions                                                                    
     for, a natural gas pipeline project;                                                                                       
     (B) establishes hiring facilities in the state or uses                                                                     
     existing hiring facilities in the state; and                                                                               
     (C) uses,  as far as  practicable, the job  centers and                                                                    
     associated  services  operated  by  the  Department  of                                                                    
     Labor  and Workforce  Development or  an Internet-based                                                                    
     labor exchange system operated by the state"                                                                               
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
Senator Bishop  explained the amendment.  He stated  that it                                                                    
complemented the intent of the bill.                                                                                            
                                                                                                                                
Senator  Hoffman  wanted  to  be  listed  as  a  sponsor  of                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Senator  Dunleavy queried  the  change to  page  2, line  6.                                                                    
Senator Bishop replied  that the job center  system would be                                                                    
used to access the labor in the state.                                                                                          
                                                                                                                                
Senator Dunleavy  surmised that private and  public entities                                                                    
could access the system. Senator Bishop agreed                                                                                  
                                                                                                                                
9:13:58 AM                                                                                                                    
                                                                                                                                
Senator  Olson  wondered  if there  were  any  disagreements                                                                    
between Pt.  Thompson as opposed  to Cook Inlet,  as related                                                                    
to   constitutionality.  Senator   Bishop  replied   in  the                                                                    
negative.                                                                                                                       
                                                                                                                                
Senator   Olson   wondered   whether   the   amendment   was                                                                    
constitutional. Senator Bishop replied in the affirmative.                                                                      
                                                                                                                                
Senator Olson  asked whether the  sponsor was in  support of                                                                    
the amendment. Senator Bishop replied in the affirmative.                                                                       
                                                                                                                                
Co-Chair MacKinnon asked whether  the sponsor was in support                                                                    
of the amendment. Mr. Wright replied in the affirmative.                                                                        
                                                                                                                                
Vice-Chair Micciche supported the  amendment. He asked to be                                                                    
a cosponsor of the amendment. He  did not feel that the bill                                                                    
created an issue with constitutionality.                                                                                        
                                                                                                                                
Co-Chair MacKinnon  WITHDREW the  OBJECTION. There  being NO                                                                    
OBJECTION, Amendment 1 was adopted.                                                                                             
                                                                                                                                
Vice-Chair Micciche explained the fiscal note.                                                                                  
                                                                                                                                
                                                                                                                                
Vice-Chair Micciche  MOVED to report  SCS CSHB  100(FIN) out                                                                    
of  Committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SCS CSHB 100(FIN)  was REPORTED out of committee  with a "do                                                                    
pass"  recommendation  and  with  the  previously  published                                                                    
fiscal note: FN2 (REV).                                                                                                         
                                                                                                                                
9:17:28 AM                                                                                                                    
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