Legislature(2015 - 2016)BARNES 124

02/26/2016 03:15 PM LABOR & COMMERCE

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Audio Topic
03:18:25 PM Start
03:18:33 PM HB268
03:21:36 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 268 AIDEA:DIVIDEND TO STATE;INCOME;VALUATION TELECONFERENCED
Moved HB 268 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
* Written Testimony Submitted at hlac@akleg.gov *
        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.                                                                                    

Document Name Date/Time Subjects
HB268 Supporting Documents-AIDEA Dividend ImpactV13 Presentation 02-26-16.pdf HL&C 2/26/2016 3:15:00 PM
HB 268