Legislature(2015 - 2016)BARNES 124
02/26/2016 03:15 PM LABOR & COMMERCE
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HB 268-AIDEA:DIVIDEND TO STATE;INCOME;VALUATION 3:18:33 PM CHAIR OLSON announced that the only order of business would be HOUSE BILL NO. 268, "An Act relating to the dividends from the Alaska Industrial Development and Export Authority; relating to the meaning of 'mark-to-market fair value,' 'net income,' 'project or development,' and 'unrestricted net income' for purposes of the Alaska Industrial Development and Export Authority; and providing for an effective date." 3:18:46 PM GENE THERRIAULT, Deputy Director for Energy Policy Development, Alaska Energy Authority/Alaska Industrial Development and Export Authority, Department of Commerce, Community & Economic Development, reminded the committee the purpose of the bill was to expand on the current statutory exemption that allows Alaska Industrial Development and Export Authority (AIDEA) to "back certain things out" of the audited financial statement which is bringing a lot of volatility to the calculation of the state's dividend. He assured the committee that AIDEA would continue to abide by all accounting rules to attain a financial audited statement, and the legislature would indicate which projects to back out in order to ensure a smoother net earnings on which to calculate the dividend. Mr. Therriault directed attention to additional language added to the bill on page 2, beginning on line 3 [and continuing to line 26] which read: ... excluding amounts attributable to intergovernmental transfers, capital contributions, grants, [OR IMPAIRMENT] losses on a project or development to the extent [DEVELOPMENT PROJECTS] financed with state or federal grants or appropriations, mark-to-market fair value based accounting entries, and noncash accounting entries related to retirement obligations [UNDER AS 44.88.172]; (4) "project or development" means (A) an Arctic infrastructure development as defined in AS 44.88.900(2); (B) a development project as defined in AS 44.88.900(6); (C) a project as defined in AS 44.88.900(13); or (D) a qualified energy development as defined in AS 44.88.900(16); (5) [(3)] "unrestricted net income" means the unrestricted change in net position, or the equivalent term under generally accepted accounting principles, of the revolving fund, the Alaska Industrial Development and Export Authority sustainable energy transmission and supply development fund (AS 44.88.660), or the Arctic infrastructure development fund (AS 44.88.810) as set out in the audited financial statements of the authority for the base fiscal year, excluding amounts attributable to intergovernmental transfers, capital contributions, grants, [OR IMPAIRMENT] losses on a project or development to the extent [DEVELOPMENT PROJECTS] financed with state or federal grants or appropriations, mark-to-market fair value based accounting entries, and noncash accounting entries related to retirement obligations [UNDER AS 44.88.172]. 3:20:12 PM CHAIR OLSON opened public testimony on HB 268. After ascertaining that no one wished to testify on HB 268, public testimony was closed. 3:20:39 PM REPRESENTATIVE COLVER moved to report HB 268 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 268 was reported from the House Labor and Commerce Standing Committee.
|HB268 Supporting Documents-AIDEA Dividend ImpactV13 Presentation 02-26-16.pdf||
HL&C 2/26/2016 3:15:00 PM