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Title 44. State Government


Published: 2015

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Sec. 43.98.030. Film production tax credit. [See delayed repeal note]..

 (a) The department shall provide a transferable film production tax credit certificate to a producer, as defined in AS 44.25.190 , for qualified production expenditures under AS 44.25.100 - 44.25.190. The department shall publish the name and contact information for each person provided a transferable tax credit certificate under this subsection.

 (b) A tax credit certificate provided under (a) of this section may be sold, assigned, exchanged, conveyed, or otherwise transferred in whole or in part.

 (c) A taxpayer acquiring a transferable tax credit certificate may use the credit or a portion of the credit to offset taxes imposed under AS 21.09.210 , AS 21.66.110 , AS 43.20, AS 43.55.011 , AS 43.56, AS 43.65, AS 43.75, and AS 43.77. Except as provided in (e) of this section, any portion of the credit not used may be used at a later period or transferred under (b) of this section.

 (d) The department shall adopt regulations necessary for the administration of this section.

 (e) A transferable film production tax credit certificate provided under (a) of this section, whether sold, assigned, exchanged, conveyed, or otherwise transferred, in whole or in part, must be used within six years after being provided by the department.

 (f) The total amount of tax credits provided in the aggregate under this section may not exceed

 (1) $100,000,000 for productions qualified under former AS 44.33.234 before July 1, 2013; and

 (2) $200,000,000 for productions qualified under AS 44.25.120 after June 30, 2013, and before July 1, 2023.

 (g) A person acquiring two or more film production tax credit certificates provided under (a) of this section may combine the unused amounts of the credits for sale, assignment, exchange, conveyance, or other transfer. At the request of a person holding a film production tax credit, the department shall replace a certificate that represents the full amount of tax credit available with multiple certificates that each represent a portion of the total tax credit available for the purpose of sale, assignment, exchange, conveyance, or other transfer under this subsection or, on request, shall provide one tax credit certificate that represents the combined value of multiple tax credit certificates. A tax credit certificate provided by the department under this subsection must state the expiration date and the amount of each credit that is included in the certificate. Combining or splitting unused amounts of credits under this subsection does not change or extend the time period in which each credit that is included in the combination or split must be used.

 (h) Subject to appropriation, the department may purchase a transferable film production tax credit certificate for 75 percent of the amount of each credit that is included in the certificate.

Article 04. OIL AND GAS COMPETITIVENESS REVIEW BOARD

Sec. 43.98.040. Oil and Gas Competitiveness Review Board.

 (a) The Oil and Gas Competitiveness Review Board is established in the department.

 (b) The board shall consist of 11 members as follows:

 (1) two members nominated by the two leading nonprofit trade associations representing the oil and gas industry in the state and appointed by the governor, with one member nominated by each association;

 (2) the chair of the Alaska Oil and Gas Conservation Commission or the chair's designee;

 (3) three members of the public appointed by the governor, including one member who is a petroleum engineer, one member who is a geologist, and one member who is a financial analyst;

 (4) the commissioner of environmental conservation or the commissioner's designee;

 (5) the commissioner of natural resources or the commissioner's designee;

 (6) the commissioner of revenue or the commissioner's designee;

 (7) two members of the public who do not represent the oil and gas industry, appointed by the governor.

 (c) The governor shall, every two years, designate one of the members as chair.

 (d) Members of the board appointed under (b)(1), (3), and (7) of this section serve for four years. An individual who has served on the board may be reappointed.

 (e) A vacancy on the board shall be filled in the manner of the original appointment.

 (f) A member of the board may be removed and replaced at the discretion of the governor.

 (g) The members of the board appointed under (b)(1), (3), and (7) of this section serve without compensation but shall receive per diem and travel expenses authorized for boards and commissions under AS 39.20.180.

 (h) The board may enter into contracts for professional services. The department shall provide staff for administrative support for the board.

 (i) The board shall meet at least once in a calendar year.

Sec. 43.98.050. Duties.

The duties of the board include the following:

 (1) establish and maintain a salient collection of information related to oil and gas exploration, development, and production in the state and related to tax structures, rates, and credits in other regions with oil and gas resources;

 (2) review historical, current, and potential levels of investment in the state's oil and gas sector;

 (3) identify factors that affect investment in oil and gas exploration, development, and production in the state, including tax structure, rates, and credits; royalty requirements; infrastructure; workforce availability; and regulatory requirements;

 (4) review the competitive position of the state to attract and maintain investment in the oil and gas sector in the state as compared to the competitive position of other regions with oil and gas resources;

 (5) in order to facilitate the work of the board, establish procedures to accept and keep confidential information that is beneficial to the work of the board, including the creation of a secure data room and confidentiality agreements to be signed by individuals having access to confidential information;

 (6) make written findings and recommendations to the Alaska State Legislature before

 (A) January 31, 2015, or as soon thereafter as practicable, regarding

 (i) changes to the state's regulatory environment and permitting structure that would be conducive to encouraging increased investment while protecting the interests of the people of the state and the environment;

 (ii) the status of the oil and gas industry labor pool in the state and the effectiveness of workforce development efforts by the state;

 (iii) the status of the oil-and-gas-related infrastructure of the state, including a description of infrastructure deficiencies; and

 (iv) the competitiveness of the state's fiscal oil and gas tax regime when compared to other regions of the world;

 (B) January 15, 2017, regarding

 (i) the state's tax structure and rates on oil and gas produced south of 68 degrees North latitude;

 (ii) a tax structure that takes into account the unique economic circumstances for each oil and gas producing area south of 68 degrees North latitude;

 (iii) a reduction in the gross value at the point of production for oil and gas produced south of 68 degrees North latitude that is similar to the reduction in gross value at the point of production in AS 43.55.160(f) and (g);

 (iv) other incentives for oil and gas production south of 68 degrees North latitude;

 (C) January 31, 2021, or as soon thereafter as practicable, regarding

 (i) changes to the state's fiscal regime that would be conducive to increased and ongoing long-term investment in and development of the state's oil and gas resources;

 (ii) alternative means for increasing the state's ability to attract and maintain investment in and development of the state's oil and gas resources; and

 (iii) a review of the current effectiveness and future value of any provisions of the state's oil and gas tax laws that are expiring in the next five years.

Sec. 43.98.060. Information to be provided to board.

 (a) The commissioner of natural resources, the commissioner of revenue, the commissioner of environmental conservation, and other commissioners and state agencies that have responsibility for and maintain information related to oil and gas investment and activity in the state shall, at the request of the board, provide information required by the board to carry out the duties described in AS 43.98.050.

 (b) At the request of the board, and except for information that is confidential under AS 40.25.100 (a) or AS 43.05.230 and information required to be held confidential by the Alaska Oil and Gas Conservation Commission, a commissioner may disclose to the board information that is otherwise confidential after each member of the board and each staff member for the board with access to the information signs a confidentiality agreement prepared by the commissioner making the disclosure. Information that is confidential under AS 43.05.230 may not be disclosed to the board.

Sec. 43.98.070. Definition.

In AS 43.98.040 - 43.98.070, "board" means the Oil and Gas Competitiveness Review Board.

Chapter 43.99. GENERAL PROVISIONS

Sec. 43.99.010. Accounts to be kept by persons subject to tax.

A person subject to a tax shall keep in permanent form at the person's principal place of business or occupation within the state correct accounts in a manner that will readily disclose, upon examination, the amount of tax due the state. The department may adopt regulations for the making and keeping of these records.

Sec. 43.99.950. Definitions.

Except in AS 43.70, in this title,

 (1) "commissioner" means the commissioner of revenue; and

 (2) "department" means the Department of Revenue.

Title 44. STATE GOVERNMENT
Chapter 44.03. SOVEREIGNTY OF STATE

Sec. 44.03.010. Offshore water and land.

The jurisdiction of the state extends to water offshore from the coast of the state as follows:

 (1) the marginal sea to its outermost limits as those limits are from time to time defined or recognized by the United States of America by international treaty or otherwise;

 (2) the high seas to the extent that jurisdiction is claimed by the United States of America, or to the extent recognized by the usages and customs of international law or by agreement to which the United States of America or the state is a party;

 (3) submerged land including the subsurface of submerged land, lying under the water mentioned in this section.

Sec. 44.03.020. Ownership of water and submerged land.

The ownership of the water and submerged land described in AS 44.03.010 is in the state unless ownership of a parcel or area is held by a person or entity by a valid and effective instrument of conveyance or by operation of law.

Sec. 44.03.030. Construction of chapter.

This chapter does not limit or restrict

 (1) the jurisdiction of the state over a person or subject inside or outside the state that is exercisable by reason of citizenship, residence, or another reason recognized by law;

 (2) jurisdiction over or ownership of other water or land under other water inside or forming part of the boundaries of the state;

 (3) legislative jurisdiction of the United States over an area to which legislative jurisdiction is ceded by the state and which remains in the ownership of the United States.

Sec. 44.03.040. Reconciliation with other statutes.

This chapter does not alter the geographic area to which a statute of the state applies if the statute specifies the area precisely in miles or by another numerical designation of distance or position. Nothing in the statute or in this chapter is a waiver or relinquishment of jurisdiction over or ownership by the state of an area to which jurisdiction or ownership extends under another provision or rule of law.

Chapter 44.06. CAPITAL

Sec. 44.06.010. Site of capital.

The capital of the state is at the city of Juneau, Alaska.

Sec. 44.06.050. Purpose of AS 44.06.050 - 44.06.060.

The purpose of AS 44.06.050 - 44.06.060 is to guarantee to the people their right to know and to approve in advance all costs of relocating the capital or the legislature; to insure that the people will have an opportunity to make an informed and objective decision on relocating the capital or the legislature with all pertinent data concerning the costs to the state; and to insure that the costs of relocating the capital or the legislature will not be incurred by the state without the approval of the electorate.

Sec. 44.06.055. Relocation expenditures.

State money may be expended to relocate physically the capital or the legislature from the present location only after a majority of those voting in a statewide election have approved a bond issue that includes all bondable costs to the state of the relocation of a functional state legislature or capital to the new site over the twelve-year period following such approval. The commission established in AS 44.06.060 shall determine all bondable costs and total costs including, but not limited to, the costs of moving personnel and offices to the relocation site; the social, economic, and environmental costs to the present and relocation sites; and the costs to the state of planning, building, furnishing, using, and financing facilities at least equal to those provided by the present capital city.

Sec. 44.06.060. Commission.

The legislature shall establish a commission composed of nine members, including a chairperson and two persons from each judicial district, appointed by the governor and confirmed by the legislature, to determine the costs required by initiatives or legislative enactments authorizing relocation of any of the present functions of state government.