11/06/2007 05:00 PM House FINANCE

HOUSE BILL NO. 2001                                                                                                           
                                                                                                                                
     "An Act  relating to the  production tax on oil  and gas                                                                   
     and to conservation  surcharges on oil;  relating to the                                                                   
     issuance  of advisory  bulletins and  the disclosure  of                                                                   
     certain information  relating to the production  tax and                                                                   
     the  sharing  between agencies  of  certain  information                                                                   
     relating  to the production  tax and to  oil and  gas or                                                                   
     gas  only leases;  amending the  State Personnel  Act to                                                                   
     place in  the exempt service  certain state oil  and gas                                                                   
     auditors and  their immediate supervisors;  establishing                                                                   
     an oil and  gas tax credit fund and  authorizing payment                                                                   
     from  that fund; providing  for retroactive  application                                                                   
     of certain statutory and  regulatory provisions relating                                                                   
     to the  production tax on  oil and gas and  conservation                                                                   
     surcharges  on oil;  making  conforming amendments;  and                                                                   
     providing for an effective date."                                                                                          
                                                                                                                                
Co-Chair Chenault reviewed committee rules and etiquette.                                                                       
                                                                                                                                
Co-Chair Chenault  noted that  CSHB 2001 (RES),  25-GH0014\V,                                                                   
was  before  the committee.    Due  to  the lateness  of  the                                                                   
reception of the  bill, there will be no testimony  until the                                                                   
following day.   Public testimony will be held  on November 8                                                                   
at 5:30  PM.  He  urged the members  to be diligent  in their                                                                   
questioning  due  to  the  remaining  time  allotted  to  the                                                                   
special session.                                                                                                                
                                                                                                                                
5:18:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer spoke  to  the Legislative  Ethics  Act -  AS                                                                   
24.60.010,   which  establishes   standard  of  conduct   for                                                                   
legislators.   He read from the  Act as it pertains  to "part                                                                   
time citizen legislators".  He  discussed the perception of a                                                                   
conflict of interest due to his  own employment and commented                                                                   
on how  conflict of  interest is  defined in  state law.   He                                                                   
paraphrased AS 24.60.030(g): "A  legislator may not vote on a                                                                   
question  if  a  legislator  has   a  substantial  equity  or                                                                   
ownership interest in a business,  investment, real property,                                                                   
lease,  or other  enterprise,  (2)  the equity  or  ownership                                                                   
interest would be affected by  the action to be voted on and,                                                                   
(3)  the effect  of  the action  on a  legislator's  interest                                                                   
would be greater than the effect  on others in a legislator's                                                                   
or employee's profession, occupation, industry, or region."                                                                     
                                                                                                                                
Co-Chair  Meyer   noted  that   he  is  a  Facility   Support                                                                   
Coordinator   with   ConocoPhillips   Alaska,  but   has   no                                                                   
substantial equity  or ownership interest  in ConocoPhillips,                                                                   
nor  involvement   in   decision  making   on  oil   and  gas                                                                   
development,  exploration,  and  investment  in Alaska.    He                                                                   
reported  on  being  sensitive  to a  perceived  conflict  of                                                                   
interest  and   noted  that  he  has  always   disclosed  his                                                                   
perceived  conflicts.    He  emphasized   the  importance  of                                                                   
keeping the  process open.   He cited  Uniform Rule 34  B and                                                                   
asked permission  of the committee to be excused  from voting                                                                   
on this bill.                                                                                                                   
                                                                                                                                
Representative  Thomas objected.    Co-Chair Chenault  stated                                                                   
that Co-Chair Meyer  would be required to participate  in the                                                                   
House Finance Committee process.                                                                                                
                                                                                                                                
5:22:21 PM                                                                                                                    
                                                                                                                                
Representative  Gara  asked for  more  information  regarding                                                                   
scheduling of  witnesses.   Co-Chair Chenault estimated  that                                                                   
the  bill  would be  moved  out  of committee  by  Friday  or                                                                   
Saturday  in  order   to  allow  the  other   body  time  for                                                                   
deliberation.                                                                                                                   
                                                                                                                                
Representative  Thomas asked  if  the CS  should be  adopted.                                                                   
Co-Chair Chenault  noted that rules did not  require adoption                                                                   
of the CS (RES) version.                                                                                                        
                                                                                                                                
Representative Nelson requested  a side-by-side comparison of                                                                   
previous versions.                                                                                                              
                                                                                                                                
5:24:39 PM                                                                                                                    
                                                                                                                                
Representative  Hawker  further  commented  on  the  code  of                                                                   
ethics.  He noted that his spouse  is employed in the oil and                                                                   
gas industry  and added that neither  he nor his  spouse have                                                                   
no  direct  pecuniary   interest  in  the  outcome   of  this                                                                   
legislation.                                                                                                                    
                                                                                                                                
5:25:46 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT CSHB 2001 (RES).                                                                             
                                                                                                                                
Representative Hawker OBJECTED  and requested an explanation.                                                                   
                                                                                                                                
Representative  Gara noted  that there  were rumors  that the                                                                   
Oil and Gas version would be the one before the committee.                                                                      
                                                                                                                                
Representative Hawker WITHDREW his OBJECTION.                                                                                   
                                                                                                                                
CSHB 2001 (RES)  was heard and HELD in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
5:27:08 PM