Legislature(2013 - 2014)

03/28/2014 03:30 PM L&C

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
          HB 230-AIDEA BONDS FOR PROCESSING FACILITIES                                                                      
3:35:12 PM                                                                                                                    
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL  NO. 230,  "An  Act  allowing the  Alaska  Industrial                                                               
Development and  Export Authority  to issue bonds  for an  oil or                                                               
gas   processing  facility;   and  creating   the  oil   and  gas                                                               
infrastructure fund to finance construction  or improvement of an                                                               
oil or gas processing facility."                                                                                                
CHAIR OLSON removed  his objection [Version N,  which was adopted                                                               
on March 24, 2014, was before the committee].                                                                                   
3:35:48 PM                                                                                                                    
REPRESENTATIVE PAUL  SEATON, Alaska State  Legislature, explained                                                               
the  changes in  the proposed  committee substitute  (CS) for  HB
230,  Version N.   He  stated that  this version  will allow  the                                                               
Alaska  Industrial  Development  & Export  Authority  (AIDEA)  to                                                               
issue development bonds for oil  and gas processing facilities on                                                               
the North Slope in order  to incentivize obtaining additional oil                                                               
in the pipeline, in particular  from small independent operators.                                                               
In addition, on  page 2, lines 21-23, at the  suggestion of legal                                                               
services, language  was added  to make it  easier to  qualify for                                                               
tax  credits.   He  commented  that  this  language needs  to  be                                                               
further addressed; hence the pending amendment.                                                                                 
3:36:56 PM                                                                                                                    
REPRESENTATIVE JOHNSON  moved to  adopt Amendment 1,  labeled 28-                                                               
LS1053\N.1, Nauman, 3/24/14, which read:                                                                                        
     Page 1, lines 2 - 3:                                                                                                       
          Delete   "providing   a   tax   credit   for   the                                                                  
          construction or improvement of an oil or gas                                                                        
     processing facility;"                                                                                                    
     Page 2, lines 16 - 28:                                                                                                     
          Delete all material.                                                                                                  
     Renumber the following bill sections accordingly.                                                                          
CHAIR OLSON objected for the purpose of discussion.                                                                             
3:37:25 PM                                                                                                                    
REPRESENTATIVE SEATON explained that  Amendment 1 will remove the                                                               
tax credit since it would  also have inadvertently affected SB 21                                                               
tax credits.  There was no intention to do so, he said.                                                                         
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
3:37:54 PM                                                                                                                    
REPRESENTATIVE JOHNSON  moved to  adopt Amendment 2,  labeled 28-                                                               
LS0153\N.2, Nauman, 3/25/14, which read:                                                                                        
     Page 2, line 4:                                                                                                            
          Delete "for allow"                                                                                                    
          Insert "allow for"                                                                                                    
CHAIR OLSON objected for purpose of discussion.                                                                                 
REPRESENTATIVE   SEATON   thanked  Representative   Saddler   for                                                               
pointing out  the inversion of  words.  He characterized  this as                                                               
being a technical change.                                                                                                       
There being no further objection, Amendment 2 was adopted.                                                                      
3:38:50 PM                                                                                                                    
REPRESENTATIVE JOHNSON  moved to  report the  proposed CS  for HB
230,  Version   N,  labeled  28-LS1053\N,  Nauman,   3/17/14,  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the  accompanying fiscal  note.   There being  no objection,  the                                                               
CSHB  230(L&C)  was reported  from  the  House Labor  &  Commerce                                                               
Standing Committee.                                                                                                             

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