ALASKA STATE LEGISLATURE  HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS  February 1, 2006 9:07 a.m. MEMBERS PRESENT Representative Bruce Weyhrauch, Chair Representative Ralph Samuels Representative Paul Seaton Representative Peggy Wilson MEMBERS ABSENT  Representative Norman Rokeberg Representative Max Gruenberg Representative Carl Moses COMMITTEE CALENDAR HOUSE BILL NO. 63 "An Act relating to the oil and gas properties production (severance) tax as it applies to oil; establishing a minimum rate of tax for certain fields of five percent; providing for an adjustment to increase the tax collected when oil prices exceed $20 per barrel and to reduce the tax collected when oil prices fall below $16 per barrel; and providing for relief from the tax when the price per barrel is low or when the taxpayer demonstrates that a reduction in the tax is necessary to establish or reestablish production from an oil field or pool that would not otherwise be economically feasible." - HEARD AND HELD HOUSE BILL NO. 223 "An Act levying a tax on certain known resources of natural gas, conditionally repealing the levy of that tax, and authorizing a credit for payments of that tax against amounts due under the oil and gas properties production (severance) tax if requirements relating to the sale and delivery of the natural gas are met; and providing for an effective date." - HEARD AND HELD HOUSE BILL NO. 374 "An Act relating to establishment of a retirement benefit liability account in the Department of Revenue and redirecting deposit of annual dividends of the Alaska Housing Finance Corporation to that account; and providing for an effective date." - BILL HEARING CANCELED HOUSE BILL NO. 375 "An Act relating to the retirement benefit liability account and appropriations from that account; relating to deposits of certain income earned on money received as a result of State v. Amerada Hess, et al., 1JU-77-847 Civ. (Superior Court, First Judicial District); and providing for an effective date." - BILL HEARING CANCELED PREVIOUS COMMITTEE ACTION BILL: HB 63 SHORT TITLE: OIL SEVERANCE TAX SPONSOR(S): REPRESENTATIVE(S) GARA 01/12/05 (H) READ THE FIRST TIME - REFERRALS 01/12/05 (H) W&M, O&G, RES, FIN 03/18/05 (H) W&M AT 8:30 AM CAPITOL 106 03/18/05 (H) Heard & Held 03/18/05 (H) MINUTE(W&M) 01/13/06 (H) W&M AT 9:00 AM CAPITOL 106 01/13/06 (H) Heard & Held 01/13/06 (H) MINUTE(W&M) 02/01/06 (H) W&M AT 9:00 AM CAPITOL 106 BILL: HB 223 SHORT TITLE: NATURAL GAS PIPELINE INCENTIVE/ GAS TAX SPONSOR(S): REPRESENTATIVE(S) CROFT 03/17/05 (H) READ THE FIRST TIME - REFERRALS 03/17/05 (H) W&M, O&G, RES 04/25/05 (H) W&M AT 8:30 AM CAPITOL 106 04/25/05 (H) Heard & Held 04/25/05 (H) MINUTE(W&M) 01/11/06 (H) W&M AT 9:00 AM CAPITOL 106 01/11/06 (H) Heard & Held 01/11/06 (H) MINUTE(W&M) 01/18/06 (H) W&M AT 9:00 AM CAPITOL 106 01/18/06 (H) Heard & Held 01/18/06 (H) MINUTE(W&M) 01/25/06 (H) W&M AT 9:00 AM CAPITOL 106 01/25/06 (H) Heard & Held 01/25/06 (H) MINUTE(W&M) 02/01/06 (H) W&M AT 9:00 AM CAPITOL 106 WITNESS REGISTER No witnesses to record ACTION NARRATIVE CHAIR BRUCE WEYHRAUCH called the House Special Committee on Ways and Means meeting to order at 9:07:07 AM. Representatives Weyhrauch, Samuels, and Seaton were present at the call to order. Representative Wilson arrived as the meeting was in progress. HB 63-OIL SEVERANCE TAX 9:07:16 AM CHAIR WEYHRAUCH announced that the first order of business would be HOUSE BILL NO. 63, "An Act relating to the oil and gas properties production (severance) tax as it applies to oil; establishing a minimum rate of tax for certain fields of five percent; providing for an adjustment to increase the tax collected when oil prices exceed $20 per barrel and to reduce the tax collected when oil prices fall below $16 per barrel; and providing for relief from the tax when the price per barrel is low or when the taxpayer demonstrates that a reduction in the tax is necessary to establish or reestablish production from an oil field or pool that would not otherwise be economically feasible." 9:08:17 AM CHAIR WEYHRAUCH, having determined there was no further testimony or questions on HB 63, announced that the bill would be addressed at the next meeting before closing public testimony. [HB 63 was held over.] HB 223-NATURAL GAS PIPELINE INCENTIVE/ GAS TAX 9:11:07 AM CHAIR WEYHRAUCH announced that the final order of business would be HOUSE BILL NO. 223, "An Act levying a tax on certain known resources of natural gas, conditionally repealing the levy of that tax, and authorizing a credit for payments of that tax against amounts due under the oil and gas properties production (severance) tax if requirements relating to the sale and delivery of the natural gas are met; and providing for an effective date." CHAIR WEYHRAUCH, having determined there was no further testimony or questions on HB 223, announced that the bill would be brought up at the next meeting before closing public testimony. [HB 223 was held over.] 9:11:45 AM ADJOURNMENT  There being no further business before the committee, the House Special Committee on Ways and Means meeting was adjourned at 9:11 a.m.