SFIN-260514-0900

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Call the Senate Finance Committee to order.

Today is Thursday, May 14th. We're in the State Capitol Senate Finance Room. We have full contingent: Senator Steadman, Senator Olson, Senator Keehl, Senator Merrick, Senator Kaufman, Senator Cronk, and myself, Senator Hoffman. We have two items on today's calendar, the first being HB 280, Appropriation Taxable Income, and Senate Bill Senate Bill 227, Tax Compact.

HB 280. This bill was first heard on April 21st. We took public testimony, reviewed the fiscal notes at the time. We do have a CS for introduction. Senator Steadman.

Thank you, Mr. Chairman. I move that the Finance Committee adopt the committee substitute substitute for House Bill 280 version T before the committee as a working document. I will object and ask Liz Harpold, staff to Senator Olson, to come to the table to explain the CS to the Senate Finance Committee.

Thank you. For the record, Liz Harpold, staff to Senator Olson and the Senate Finance Committee. What this CS does in version T is it continues to add to the work that was done in the House Finance Committee by further refining the definition of financial institutions. Appendix A in the named document contains the full detailed and industry-specific designation that ought to be used in this bill. That is the only change.

Thank you, Ms. Harpold. Are there questions on the the CS that has been presented to the committee? Seeing none, I will remove my objection. Is there further objection to adoption of the CS? It is adopted, and we will set this bill aside for further consideration.

That brings us to the second piece of legislation before the Senate Finance Committee, Senate Bill 227, Tax Oil and Gas Compact. Today's plan is to introduce the CS, set it aside, and hear this bill again on Monday, May 18th at 9:00 a.m. We'll hear invited testimony from members of the oil and gas industry at that meeting. Senator Steadman.

Thank you, Mr. Chairman. I move that the Finance Committee adopt the committee substitute for Senate Bill 227 Finance before the committee as our working document. And I would object to— for an explanation from David Scott, staff to Senator Steadman, for the explanation. Brief at ease. Brief at ease.

Sorry about that. We'll hear from Liz Harpo to explain the CS to the Senate Finance Committee. Thank you. Again, for the record, Liz Harpo, not David Scott, staff to Senator Olson in the Senate Finance Committee. Uh, so what this version of SB 227 does, uh, from version G to version O, uh, everything was removed except for oil and gas production tax.

Production Tax. And to give a very high-level synopsis of this, it reduces production tax rate from 35% to 17%, eliminates the gross value reduction, eliminates per barrel credits and sliding scale and GVR, the gross value reduction, and limits carryforward allowance to 40% of annual production tax liability. Thank you, Ms. Harpole. Is there Discussion on the CS. I remove my objection.

Is there objection from the committee to adopt the CS as our working document? Seeing none, that CS is adopted. We will set this bill aside. That concludes this— That concludes the meeting today. Our next meeting is scheduled for 1:30 this afternoon.

We are adjourned.