Legislature(2015 - 2016)SENATE FINANCE 532
04/14/2016 08:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| HB314 | |
| SB130 | |
| HCR4 | |
| HB77 | |
| SB130 | |
| SB206 | |
| SB130 | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 130 | TELECONFERENCED | |
| += | HB 247 | TELECONFERENCED | |
| += | HB 77 | TELECONFERENCED | |
| + | HCR 4 | TELECONFERENCED | |
| + | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 314 | TELECONFERENCED | |
| += | SB 206 | TELECONFERENCED | |
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; 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 minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:09:49 AM
AT EASE
8:10:28 AM
RECONVENED
MARLEANNA HALL, EXECUTIVE DIRECTOR, RESOURCE DEVELOPMENT
COUNCIL, JUNEAU, testified in opposition to the bill. She
thought that raising taxes on the industry would not
stimulate growth. She felt changing the oil tax regime
would make Alaska's oil and gas industry seem unstable. She
discussed the recent increase in oil throughput and
referenced the tax credit. She noted that the members of
the council were not asking for a tax decrease, rather to
maintain the current structure in order to decrease the
possibility of volatility.
8:13:12 AM
BRAD FAULKNER, SELF, HOMER (via teleconference), testified
in support of the bill. He related that he had started
working on the pipeline when he was 18, and had worked in
the oil He thought oil tax credits in Cook Inlet would
never pay themselves off, and thought oil tax credits on
the North Slope were set up to boost the oil industry. He
felt the Senate was controlled by the oil industry. He
thought it was long since time to get rid of the tax
credits.
8:16:12 AM
DAVE HANSON, SELF, ANCHORAGE (via teleconference),
testified in favor of the bill. He described himself as a
fiscal conservative, and felt the state could not afford
the oil tax credit program. He discussed the fiscal
situation in the state and commented that low oil prices
were the cause of the oil industry's financial problems. He
highlighted the importance of jobs in the oil industry.
8:19:15 AM
BARBARA HUFF TUCKNESS, DIRECTOR, GOVERNMENT AND LEGISLATIVE
AFFAIRS, TEAMSTERS LOCAL 959, JUNEAU, felt that the current
committee substitute was better than the original bill. She
stressed that the legislation would impact many jobs. She
felt that previously passed oil and gas legislation, SB 21,
had a positive impact on the workers in the oil and gas
industry.
8:21:50 AM
RENEE REEVE, ALASKA SUPPORT INDUSTRY ALLIANCE, ANCHORAGE
(via teleconference); testified in opposition to the bill,
and referred to other members of the alliance that were in
the room to testify in opposition as well.
[Ms. Reeve gave her testimony, then the following
individuals read their names and affiliations for the
record, also in opposition to the bill.]
8:22:21 AM
BEN SCHOFFMANN, KAKIVIK ASSET MANAGEMENT, ANCHORAGE (via
teleconference), testified in opposition to the bill.
REED CHRISTENSEN, DOWLAND-BACH CORPORATION, ANCHORAGE (via
teleconference), testified in opposition to the bill.
TERRY SMITH, UNIFIED OPERATIONS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
CHANTAL WALSH, PETROTECHNICAL RESOURCES OF ALASKA,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
TOM WALSH, PETROTECHNICAL RESOURCES OF ALASKA, ANCHORAGE
(via teleconference), testified in opposition to the bill.
MIKE HEIRING, UDELHOVEN OILFIELD SYSTEM SERVICES, ANCHORAGE
(via teleconference), testified in opposition to the bill.
CATHY DUXBURY, UDELHOVEN OILFIELD SYSTEM SERVICES,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
SCOTT VIERA, NORTHSTAR TERMINAL & STEVEDORE, ANCHORAGE (via
teleconference), testified in opposition to the bill.
PETE STOKES, PETROTECHNICAL RESOURCES OF ALASKA, ANCHORAGE
(via teleconference), testified in opposition to the bill.
MAYNARD TAPP, HAWK CONSULTANTS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
PATRICK WALSH, PEAK OILFIELD SERVICES, ANCHORAGE (via
teleconference), testified in opposition to the bill.
JEFF BENTZ, NORTHSTAR TERMINAL & STEVEDORE, ANCHORAGE (via
teleconference), testified in opposition to the bill.
DALE KISSEE, PRESIDENT, CONAM CONSTRUCTION, ANCHORAGE (via
teleconference), testified in opposition to the bill.
LEAH TALUS, STANTEK CONSULTING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
ADAM CRUM, NORTHERN INDUSTRIAL TRAINING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
DREMA FITZHUGH, HAWK CONSULTANTS, ANCHORAGE (via
teleconference), testified in opposition to the bill.
CARI-ANN CARTY, ALASKA PROCESS INDUSTRY CAREERS CONSORTIUM,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
JOSEPH COLONELL, COLONELL ASSOCIATES, ANCHORAGE (via
teleconference), testified in opposition to the bill.
STEVE POST, NORTH STAR EQUIPMENT, ANCHORAGE (via
teleconference), testified in opposition to the bill.
MARTHA PECK, ALASKA PROCESS INDUSTRY CAREERS CONSORTIUM,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
NICK PEPPERWORTH, UDELHOVEN OILFIELD SYSTEM SERVICES,
ANCHORAGE (via teleconference), testified in opposition to
the bill.
DENNIS HEBNER, SUPERIOR MACHINE AND WELDING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
BRIAN BENSON, AIR LIQUIDE, ANCHORAGE (via teleconference),
testified in opposition to the bill.
JOEY CRUM, NORTHERN INDUSTRIAL TRAINING, ANCHORAGE (via
teleconference), testified in opposition to the bill.
Ms. Reeve stated that all those introduced individuals were
opposed to the legislation.
8:24:20 AM
MICHAEL JESPERSON, SELF, ANCHORAGE (via teleconference),
spoke against the legislation. He stated that he and no one
in his family had ever worked for the oil industry.
SB 130 was HEARD and HELD in committee for further
consideration.
8:25:52 AM
AT EASE
8:28:14 AM
RECONVENED
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; 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 minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:36:37 AM
RICK KOCH, CITY OF KENAI (via teleconference), testified
against the bill. He thought it had fairly significant
negative impacts to the Railbelt. He thought there was a
difference in consumers between Cook Inlet and North Slope.
He encouraged the committee to consider the ultimate
consumer of the resource, and who would bear the burden of
the tax credit structure.
8:38:33 AM
DON LAICHAK, SELF, ANCHORAGE (via teleconference),
testified in opposition to the bill. He had worked for
several oil companies. He believed that smaller oil fields
were the future of the state. He discussed the numerous
costs associated with oil production.
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; 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 minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
8:54:17 AM
CURTIS THAYER, ALASKA CHAMBER OF COMMERCE, ANCHORAGE (via
teleconference), testified in opposition to SB 130. He
thought the state budget was not sustainable.
Vice-Chair Micciche noted that there may be additional
testimony for the bill.
SENATE BILL NO. 130
"An Act relating to confidential information status
and public record status of information in the
possession of the Department of Revenue; relating to
interest applicable to delinquent tax; relating to
disclosure of oil and gas production tax credit
information; 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 minimum tax for certain oil and gas
production; relating to the minimum tax calculation
for monthly installment payments of estimated tax;
relating to interest on monthly installment payments
of estimated tax; relating to limitations for the
application of tax credits; relating to oil and gas
production tax credits for certain losses and
expenditures; relating to limitations for
nontransferable oil and gas production tax credits
based on oil production and the alternative tax credit
for oil and gas exploration; relating to purchase of
tax credit certificates from the oil and gas tax
credit fund; relating to a minimum for gross value at
the point of production; relating to lease
expenditures and tax credits for municipal entities;
adding a definition for "qualified capital
expenditure"; adding a definition for "outstanding
liability to the state"; repealing oil and gas
exploration incentive credits; repealing the
limitation on the application of credits against tax
liability for lease expenditures incurred before
January 1, 2011; repealing provisions related to the
monthly installment payments for estimated tax for oil
and gas produced before January 1, 2014; repealing the
oil and gas production tax credit for qualified
capital expenditures and certain well expenditures;
repealing the calculation for certain lease
expenditures applicable before January 1, 2011; making
conforming amendments; and providing for an effective
date."
9:07:40 AM
DELICE CALCOPE, SELF, SUTTON (via teleconference),
testified in support of the bill. She was in favor of
raising taxes on the oil industries.
9:09:42 AM
MIKE COONS, SELF, PALMER (via teleconference), testified in
opposition to SB 130. He described himself as a
conservationist. He thought the tax credits had been
working and had stimulated more oil production and
exploration.
Vice-Chair Micciche CLOSED public testimony for SB 130.
Vice-Chair Micciche passed the gavel to Co-Chair MacKinnon.
SB 130 was HEARD and HELD in committee for further
consideration.
9:12:02 AM
AT EASE
9:15:03 AM
RECONVENED