Legislature(2011 - 2012)SENATE FINANCE 532
04/11/2012 01:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB25 | |
| SB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 25 | ||
| = | SB 192 | ||
| + | HB 302 | TELECONFERENCED | |
| + | HB 366 | TELECONFERENCED | |
| += | HCR 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 25
"An Act relating to participation by the Alaska
Industrial Development and Export Authority in energy
projects."
5:57:52 PM
Co-Chair Hoffman MOVED to ADOPT the proposed committee
substitute for SB 25, Work Draft 27-LS0290\S.
Co-Chair Stedman OBJECTED for purpose of discussion.
DARWIN PETERSON, STAFF, SENATE FINANCE COMMITTEE, explained
the changes for CS SB 25 version S. He stated that Sections
3,4, and 5 had been added to the bill, and would exclude
the value of the lease hold interest on AIDEA owned
properties for the purpose of determining the full and true
value by the state only if the local government chooses to
exempt that property form the taxation. He furthered that
AIDEA owned 5 major properties in Alaska that were leased
to private operators: the aircraft maintenance facility at
the Ted Stevens International Airport, the Skagway Ore
Terminal, the Ketchikan Shipyard, the Red Dog Road and
Port, and the Snettisham Hydroelectric Dam and Power
Station. He said the full and true value determination was
important to municipal governments in a number of ways; it
determined the magnitude of the required local contribution
component of state education aid, it impacted the required
local share for school construction and major maintenance,
it effected the amount of federal impact aid to which
municipal school districts were entitled, and it limited
property taxing capacity. He relayed that the exemption of
the Red Dog Road and Port from the determination of the
full and true value had allowed the Northwest Arctic
Borough to avoid a loss of education funding estimated at
$1 million annually. He concluded that the legislation
would treat the rest of the AIDEA owned properties equally,
giving the municipalities the choice of imposing property
taxes or opting for the reduction in the local education
contribution.
Mr. Peterson discussed further changes in the bill:
Section 6 The following changes were made to new
section 6/old section 3:
1. No changes
Section 7 The following changes were made to new
section 7/old section 4:
1. No changes.
Deletion Section 5 (page 4 lines 1-15 of the X
version) was removed from the bill:
1. The subsequent sections were renumbered
accordingly.
Section 8 The language in section 8 retains the
language found in section 6 of the X version with the
following changes:
1. Replaced "energy project" with "qualified energy
development" on page 6, line 28 and page 7, line 23.
Section 9 The language in section 9 retains the
language found in section 7 of the X version with the
following change:
1. Replaced "energy project" with "qualified energy
development" on page 8, line 20.
Section 10 The language in section 10 retains the
language found in section 8 of the X version with no
changes.
Section 11 The language in section 9 retains the
language found in section 9 of the X version with no
changes.
Section 12 The language in section 9 retains the
language found in section 10 of the X version with the
following change:
1. Deleted the word "energy" preceding "loan" on page
9, line 17.
Section 13 The language in section 13 retains the
language found in section 11 of the X version with the
following changes:
1. Deleted the word "energy" preceding "loan" on page
9, line 19.
2. Deleted the word "energy" preceding "loan" on page
9, line 28.
3. Deleted the word "energy" preceding "loan" on page
10, line 12.
Section 14 The language in section 14 retains the
language found in section 12 of the X version with the
following change:
1. Deleted the word "energy" preceding "loan" on page
10, line 11.
Section 15 The language in section 15 retains the
language found in section 13 of the X version with no
changes.
Section 16 The language in section 14 retains the
language found in section 14 of the X version with the
following changes:
1. Replaced "energy projects" with "qualified energy
development" on page 11, line 9-10.
2. Replaced "energy projects" with "qualified energy
development" on page 12, line 2.
3. Replaced "energy projects" with "qualified energy
development" on page 12, line 3.
4. Replaced "energy projects" with "qualified energy
development" on page 12, line 7-8.
5. Replaced "energy projects" with "qualified energy
development" on page 12, line 13-14.
6. Replaced "energy projects" with "qualified energy
development" on page 12, line 17.
7. Inserted New Subsection (8) granting AIDEA the
power to pay off the principal and interest on bonds
issued by a municipal public utility and retain the
payments from the utility in a sinking fund.
8. Replaced "energy projects" with "qualified energy
development" on page 13, line 1.
9. Replaced "energy projects" with "qualified energy
development" on page 13, line 8-9.
Sect. 16 (Cont.)
10. Replaced "energy project" with "qualified energy
development" on page 13, line 11-12.
11. Replaced "energy project" with "qualified energy
development" on page 13, line 14-15.
Section 17 Section 17 retains the language previously
found in section 15 of the X version with the
following changes:
1. Replaced "energy project" with "qualified energy
development" on page 13 line 19.
2. Inserted "conservation" preceding "storage" on page
13, line 21.
3. Removed the conversion of natural gas, coal or
biomass to liquids (page 11, line 8), the processing,
refining, or upgrading of oil (page 11, line 9) and
enhanced oil recovery or carbon sequestration (page
11, line 11) from the definition of "qualified energy
development."
New Sect. 18 Added a new section 16 repealing Sections
2 and 8 of ch. 10, SLA 2010 (the language exempting an
integrated transportation and port facility owned by
the authority from taxation and the sunset of the
exemption.)
Section 19 Section 19 retains the language previously
found 16 of the X version.
6:02:31 PM
Co-Chair Stedman WITHDREW his OBJECTION. There being no
further objection Work Draft 27-LS0290\S was ADOPTED.
Senator McGuire remarked that the changes in the bill
correctly reflected the current financial climate. She
relayed interest in partnering with venture capitalists
across the globe. She hoped that the legislation would
contribute to the diversification of the state's economy.
6:04:13 PM
Co-Chair Stedman clarified that the legislation created a
stable energy and transmission supply development program
intended to generate more energy and electricity for the
state.
Co-Chair Stedman noted the two fiscal notes: FN2 (DCCED);
NEW FN (SFIN). He added that a new fiscal note from the
Department of Education and Early Childhood Development
that reflected the changes made in Sections 3, 4, and 5 was
forthcoming.
Co-Chair Hoffman MOVED to report CS SS SB 25 (FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 25(FIN) was REPORTED out of committee with a "do pass"
recommendation and with the previously published zero
fiscal note: FN2 (CED), one new fiscal impact note from the
Senate Finance Committee, and one forthcoming zero (EDC)
fiscal note.
6:05:36 PM
AT EASE
6:07:56 PM
RECONVENED