txt

HCR 39: Establishing the Alaska Royalty and Revenue Task Force.

00                    HOUSE CONCURRENT RESOLUTION NO. 39                                                                   
01 Establishing the Alaska Royalty and Revenue Task Force.                                                                 
02 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                               
03       WHEREAS the oil and gas industry operates in a diverse, competitive, and global                                 
04 landscape; and                                                                                                          
05       WHEREAS the state receives more than 70 percent of its unrestricted general fund                                
06 revenue from taxes and royalties on the production of its oil and gas resources; and                                    
07       WHEREAS the legislature has a constitutional obligation to develop the state's                                  
08 resources for the maximum benefit of Alaskans; and                                                                      
09       WHEREAS Alaska's major oil and gas taxes are the oil and gas property production                                
10 (severance) tax (AS 43.55), which was last significantly revised in 1989, the oil and gas                               
11 corporate income tax (AS 43.20.072), which was last significantly revised in 1981, and the oil                          
12 and gas exploration, production, and pipeline transportation property tax (AS 43.56), which                             
13 was enacted in 1973 and has had only relatively minor changes since then; and                                           
14       WHEREAS it is appropriate to reevaluate the state's present system of oil and gas                               
15 taxes at this time because the scope and cost of oil and gas production operations have                                 
16 significantly changed since the various pieces of the system were last put in place; and                                
01       WHEREAS a tax structure that retains an inadequate value of those resources for                                 
02 Alaskans violates that constitutional obligation; and                                                                   
03       WHEREAS the maximization of the benefits from the production of its oil and gas is                              
04 in the best interest of the state; and                                                                                  
05       WHEREAS maximizing oil and gas production is in the best interest of the state; and                             
06       WHEREAS the tax and royalty structures that the state uses to maximize the benefits                             
07 of oil and gas production in the state can affect the production of oil and gas in the state; and                       
08       WHEREAS the tax and royalty structures in place in the state's oil and gas sector are                           
09 a portion of the cost of production; and                                                                                
10       WHEREAS, in examining the oil and gas tax system, it would be imprudent to                                      
11 evaluate any portion of the tax system in isolation; and                                                                
12       WHEREAS the decisions to invest in new exploration and production are made by                                   
13 multinational corporations; and                                                                                         
14       WHEREAS these decisions are made based on global portfolios of production assets;                               
15 and                                                                                                                     
16       WHEREAS the global competitiveness of the state's oil and gas sector directly                                   
17 influences investment in the state's oil and gas sector;                                                                
18       BE IT RESOLVED that the Alaska State Legislature establishes the Alaska Royalty                                 
19 and Revenue Task Force to review and analyze the state's current oil and gas royalty and tax                            
20 structures; and be it                                                                                                   
21       FURTHER RESOLVED that the task force shall be composed of nine members to                                       
22 include                                                                                                                 
23            (1)  seven members of the legislature chosen jointly by the presiding officers of                            
24 the House of Representatives and the Senate, three of whom shall be chosen from a list                                  
25 provided jointly by the minority leaders of the House of Representatives and the Senate; and                            
26            (2)  two members, not members of the legislature, chosen jointly by the                                      
27 presiding officers of the House of Representatives and Senate; and be it                                                
28       FURTHER RESOLVED that the Speaker of the House of Representatives shall                                         
29 appoint the task force chair; and be it                                                                                 
30       FURTHER RESOLVED that the task force craft policies for recommendation to the                                   
31 Twenty-Fourth Alaska State Legislature that would maximize the long-term benefits of the                                
01 state's oil and gas resources to the state; and be it                                                                   
02       FURTHER RESOLVED that, in crafting policies that would maximize the long-term                                   
03 benefits to the state, the task force consider the state's competitiveness globally in attracting                       
04 capital to its oil and gas sector; and be it                                                                            
05       FURTHER RESOLVED that the task force address the factors affecting the state's                                  
06 competitiveness; and be it                                                                                              
07       FURTHER RESOLVED that, in crafting policies that maximize the long-term                                         
08 benefit to the state, the task force evaluate all of the mechanisms the state and its                                   
09 municipalities use to recover revenue from oil and gas production; and be it                                            
10       FURTHER RESOLVED that the task force may retain expert consultants for the                                      
11 purposes of assisting the task force in its mission; and be it                                                          
12       FURTHER RESOLVED that the task force begin work on June 1, 2004, or as soon                                     
13 after that date as possible; and be it                                                                                  
14       FURTHER RESOLVED that the task force may meet during the interim; and be it                                     
15       FURTHER RESOLVED that the members of the task force shall serve without                                         
16 compensation but are entitled to transportation expenses, and the members who are legislators                           
17 may claim per diem under the per diem allowance policy adopted under AS 24.10.130 and the                               
18 members who are not legislators are entitled to per diem as authorized for members of boards                            
19 and commissions under AS 39.20.180; and be it                                                                           
20       FURTHER RESOLVED that the task force shall submit a report and proposed                                         
21 legislation to the Twenty-Fourth Alaska State Legislature on the date of commencing of the                              
22 First Regular Session; and be it                                                                                        
23       FURTHER RESOLVED that the task force is terminated not later than the                                           
24 adjournment of the First Regular Session of the Twenty-Fourth Alaska State Legislature.