HB 287-A: OIL & GAS TAX CREDIT FUND APPROP.  1:06:50 PM CHAIR PATKOTAK announced that the first order of business would be HOUSE BILL NO. 287, "An Act making an appropriation for oil and gas tax credits; and providing for an effective date." CHAIR PATKOTAK noted that committee members should have received the follow-up to their questions from the bill's [2/9/22] hearing. He invited members to ask any further questions. 1:07:34 PM REPRESENTATIVE HANNAN said she did not see an answer from the Department of Law (DOL) or the Department of Revenue (DOR) to her question about the lapsing fund structure and the choice of language included in HB 287. REPRESENTATIVE PATKOTAK said DOL is not online but that a memo should have been posted to BASIS regarding the "sweepability." REPRESENTATIVE RAUSCHER, prime sponsor, noted that DOL's busy schedule did not allow for the department to be online today. 1:08:49 PM CONOR BELL, Fiscal Analyst, Legislative Finance Division, Alaska State Legislature, responded to Representative Hannan's inquiry. The oil and gas tax credit fund is not subjected to the sweep, he explained, because the sweep provision applies to money in the general fund available for appropriation. The amount in the oil and gas tax credit fund has already been appropriated, so when that money goes from the fund to producers or companies, it is paying for those tax credits and the legislature doesn't have to approve an appropriation for those payments that go out, and since it doesn't require further appropriation it's not subject to the sweep. 1:09:48 PM COLLEEN GLOVER, Director, Tax Division, Department of Revenue (DOR), added that the oil and gas tax credit fund is not subject to lapse, and Mr. Bell's response answers the question about whether it is sweepable. 1:10:31 PM REPRESENTATIVE HANNAN drew attention to Mr. Bell's memorandum of 2/10/22 answering Representative Schrage's question about there being two bills [HB 250 and HB 287]. She pointed out that both bills include $60 million for oil tax credit, which would be a total appropriation of $120 million into the oil and gas tax credit fund should both bills be enacted. Given that amount would exceed the minimum tax due this year, she asked whether $60 million would remain in the fund to start out fiscal year 2023 (FY 23) or whether the minimum tax owed for FY 22 would be exceeded. REPRESENTATIVE RAUSCHER replied that the two bills would be sorted out upon reaching the House Finance Committee, and that that committee would not let the appropriations from each bill be added together. REPRESENTATIVE PATKOTAK added that HB 250 hasn't yet left the House Finance Committee, which is the next assigned committee for HB 287. 1:12:50 PM REPRESENTATIVE SCHRAGE asked why the undesignated general fund (UGF) was used in HB 287 as opposed to the constitutional budget reserve (CBR) as previously proposed. REPRESENTATIVE RAUSCHER answered that last year's appropriation from the CBR was tripped up because of the way the different caucuses within the House view the usage of the CBR. A [3/4 vote of each body] is needed to use the CBR, which is one of the reasons it failed. [Using the UGF] ensures that the legislature doesn't have to go through that again. REPRESENTATIVE SCHRAGE said there seems to be broad support for paying off the state's debts. He asked whether it would show a stronger statement of support if CBR funds were used given the higher vote threshold to fund these oil and gas tax credits. He further asked whether there is enough money in the CBR from which to pull these funds. REPRESENTATIVE RAUSCHER responded that he already gave his opinion on why he chose this route, and he still believes it is the best route. He offered his opinion that passing it in both bodies is the important thing and would say more to the oil companies than not getting the appropriation at all. 1:15:37 PM REPRESENTATIVE PATKOTAK announced that HB 287 was held over.