Legislature(2003 - 2004)
05/06/2004 04:16 PM House RLS
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HCR 39-ALASKA ROYALTY AND REVENUE TASK FORCE CHAIR ROKEBERG announced that the final order of business would be HOUSE CONCURRENT RESOLUTION NO. 39, Establishing the Alaska Royalty and Revenue Task Force. Number 471 REPRESENTATIVE KOTT moved to adopt CSHCR 39, Version 23- LS1971\U, as the working document. REPRESENTATIVE McGUIRE objected for discussion purposes. She pointed out that HCR 39 originally stated that the entity would consist of seven members of the legislature chosen jointly by the presiding officers of the House and the Senate, of which three would be chosen from a list produced by the Minority members. CHAIR ROKEBERG interjected that he would prefer to have Version U before the committee because [the original version] "is not even a read across bill." REPRESENTATIVE McGUIRE removed her objection. Number 485 REPRESENTATIVE CHERYLL HEINZE, Alaska State Legislature, spoke as the chair of the House Special Committee on Economic Development, International Trade and Tourism, which requested the legislation of the House Rules Standing Committee. She explained that HCR 39 is really about looking at the revenue the state receives through the property tax, corporate income tax, and severance tax. It has been 15 years since these taxes have been revisited. The [goal] of the commission is to make Alaska competitive and inform Alaskans of the state's position globally. CHAIR ROKEBERG inquired as to why the entity is a commission that includes two experts who aren't members of the legislature. REPRESENTATIVE HEINZE acknowledged that the entity could have been a task force, however a commission seems to have a bit more importance. With regard to the experts, Representative Heinze said she doesn't believe anyone in the legislature is well versed in the oil and gas tax structure in Alaska. Number 508 CHAIR ROKEBERG acknowledged that there seems to be some controversy with regard to the makeup of the committee. Therefore, he asked Representative Heinze her preference for the commission's makeup. REPRESENTATIVE HEINZE related her preference for the structure put forth in the original legislation. As mentioned earlier, the original legislation consisted of seven members of the legislature chosen by the presiding officers of each body. The original makeup of the commission included five members from the Majority and two members from the Minority and the chair of the Joint Committee on Legislative Budget and Audit. The thought was that the chair of the Joint Committee on Legislative Budget and Audit would provide some continuity, with which she agreed. REPRESENTATIVE McGUIRE recalled discussion of not having the consultants actually be members of the committee, but rather have them report neutral, unbiased findings. If the aforementioned was the case, then two other legislative members could be jointly appointed. Representative McGuire opined that it's fairly unorthodox for an unelected official who isn't a member of the legislature to be member of a legislative commission. REPRESENTATIVE KOTT noted his agreement with Representative McGuire. He related his belief that the commission should consist of three members chosen by the presiding officer of the Senate, three members chosen by the presiding officer of the House, and the chair of Joint Committee on Legislative Budget and Audit. Of the three members from each body, two would be from the Majority and one from the Minority. The work of the two experts chosen jointly by the presiding officers of each body is specified on page 2, lines 20-22. Representative Kott clarified that the two experts aren't members of the commission but rather are consultants. He emphasized that he didn't want this commission to be biased in any way. "The consultants will actually be the ones that participate, coordinate, and evaluate the current fiscal oil and gas regimes and ... tax structure. They will report back to the membership that makeup the commission ...." Although the legislation specifies that the consultants will provide the report to the chair of the Joint Committee on Legislative Budget and Audit, if that person sits on the commission there is no need for such. REPRESENTATIVE HEINZE clarified that the original structure was such that the experts weren't on the commission but rather served as unbiased consultants. REPRESENTATIVE KERTTULA reminded the committee that the makeup of the Special Committee on Mergers was similar to what is being proposed in this resolution, although it may have had a bit more freedom in terms of who was on the committee. She highlighted that the Special Committee on Mergers chose the experts, not the presiding officers. She suggested that the aforementioned should be the case for this commission. Number 572 REPRESENTATIVE KOTT moved that the committee adopt Conceptual Amendment 1, as follows: Page 2, line 10; Delete "nine" Insert "seven" There being no objection, Conceptual Amendment 1 was adopted. REPRESENTATIVE KOTT moved that the committee adopt Conceptual Amendment 2, which would change the language on [page 2, lines 12-15] such that it would read as follows: "seven members of the legislature, three chosen by the Speaker of the House, three chosen by the President of the Senate, of which one of the three must be a Minority member, and the chair of the Legislative Budget and Audit Committee." There being no objection, Conceptual Amendment 2 was adopted. REPRESENTATIVE KOTT moved that the committee adopt Conceptual Amendment 3, as follows: Page 3; Delete lines 16-17. There being no objection, Conceptual Amendment 3 was adopted. Number 588 CHAIR ROKEBERG said he didn't believe the Uniform Rules covers commissions. REPRESENTATIVE HEINZE related that Judy Ohmer, Staff to Representative Pete Kott, reviewed the matter of commissions in the legislature with Legislative Legal and Research Services. TAPE 04-6, SIDE B REPRESENTATIVE HEINZE informed the committee that the recommendation was that a commission would be better than a task force. CHAIR ROKEBERG said the entity being created by this resolution is really a joint committee, and therefore it should be called such. Number 580 CHAIR ROKEBERG moved that the committee adopt Conceptual Amendment 4, which would conform the entire resolution such that it would refer to "committee" or "joint committee" as appropriate. There being no objection, Conceptual Amendment 4 was adopted. REPRESENTATIVE McGUIRE pointed out that in the original version there is a "WHEREAS" clause on page 1, lines 7-8, that is not included in Version U. She characterized the language on page 1, lines 7-8, of the original version as the crux of the issue. Number 569 REPRESENTATIVE McGUIRE moved that the committee adopt Conceptual Amendment 5, which would insert the following language: "WHEREAS the legislature has a constitutional obligation to develop the state's resources for the maximum benefit of the people" CHAIR ROKEBERG objected for purposes of discussion. He then removed his objection. Therefore, Conceptual Amendment 5 was adopted. REPRESENTATIVE KERTTULA noted that it may be necessary for the committee to receive confidential information, and asked about inserting language that would allow such. Number 564 REPRESENTATIVE KERTTULA moved that the committee adopt Conceptual Amendment 6, which would insert language specifying, "that the committee has the authority to request and receive confidential information". She indicated that the language would be a "[FURTHER] RESOLVED" provision. There being no objection, Conceptual Amendment 6 was adopted. CHAIR ROKEBERG highlighted that by making this entity a committee, which will function under the Uniform Rules; it will be allowed to enter into executive sessions. REPRESENTATIVE KOTT turned attention to the reference to members of the [committee] who aren't legislators on page 3, lines 6-10. He noted that now all members of the committee are legislators. Therefore, he related his belief that any travel done by the consultants would be covered in the consultants' contract while legislators will be covered under any existing travel arrangements. Number 535 REPRESENTATIVE KOTT moved that the committee adopt Conceptual Amendment 7, as follows: Page 3, lines 6-10 Delete all material. Number 532 REPRESENTATIVE McGUIRE moved to report CSHCR 39, Version 23- LS1971\U, as amended, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE KOTT drew attention to page 3, lines 11-13, which specifies that the [committee] is to present its report to the Legislative Budget and Audit Committee, who is to present the report to the legislature. However, the chair of the Joint Committee on Legislative Budget and Audit is a member of the proposed committee, and therefore could present the report to the committee, he suggested. REPRESENTATIVE BERKOWITZ opined that it seems appropriate that the findings be submitted toward the beginning of session so that if there is the need for the legislature to act, it has the opportunity to do so. CHAIR ROKEBERG pointed out that the [committee] would be terminated "not later than the adjournment of the First Regular Session of the Twenty-Fourth Alaska State Legislature." REPRESENTATIVE BERKOWITZ expressed the need for the legislature to be able to move on any incentive program quickly, particularly in relation to exploration and development. Therefore, he suggested that a February 1st deadline would be appropriate. REPRESENTATIVE KOTT said that he would agree to a time certain date or as soon as practical. Number 511 REPRESENTATIVE COGHILL noted that he would agree with Representative Berkowitz to some degree, although he suggested that March may be a better timeframe. REPRESENTATIVE McGUIRE withdrew her motion to report CSHCR 39, as amended, from committee. CHAIR ROKEBERG commented that this committee should do its work appropriately. Even if the committee has a termination date some time during the next session, the consultants would want the ability to report. Therefore, the contract would continue and "oversight" of the committee would remain. Chair Rokeberg expressed that he would be "happy" with some sort of compromise, but not at the end of the first regular session. Number 497 REPRESENTATIVE BERKOWITZ [moved that the committee adopt Conceptual Amendment 7], which would [insert language on page 3, lines 11-12] specifying that a report be submitted no later than March 1, 2005. CHAIR ROKEBERG objected for discussion purposes. REPRESENTATIVE KERTTULA recalled that the Special Committee on Mergers had a deadline by which it had to report. CHAIR ROKEBERG interjected that there is some benefit to that. REPRESENTATIVE KERTTULA submitted that if the Special Committee on Mergers could meet its deadline, then this proposed committee shouldn't have any problem. In response to Chair Rokeberg, she recalled that the Special Committee on Mergers existed from the end of a [second regular session] through an interim. Representative Kerttula pointed out that the experts have to perform the bulk of the work. CHAIR ROKEBERG expressed the need for this proposed committee to have public input and hearings. REPRESENTATIVE COGHILL stated that March would be in the middle of session, and therefore there will be time to act on that information or obtain new information, if necessary. However, if the report is too early, "you might thwart the work." CHAIR ROKEBERG maintained his objection. A roll call vote was taken. Representatives McGuire, Morgan, Berkowitz, Kerttula, Kott, and Coghill voted in favor of [Conceptual Amendment 7]. Representative Rokeberg voted against it. Therefore, [Conceptual Amendment 7] was adopted by a vote of 6-1. Number 468 REPRESENTATIVE McGUIRE moved to report CSHCR 39, Version 23- LS1971\U, as amended, out of committee with individual recommendations and the accompanying fiscal notes. REPRESENTATIVE KOTT objected for purposes of discussion. He pointed out that the fiscal note addresses a nine-member task force and since the [committee] now consists of seven members it may reduce the fiscal note a bit. Representative Kott removed his objection. There being no objection, CSHCR 39(RLS) was reported from the House Rules Standing Committee.
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