CSHCR 39(RLS): Establishing the Alaska Royalty and Revenue Committee.
00 CS FOR HOUSE CONCURRENT RESOLUTION NO. 39(RLS) 01 Establishing the Alaska Royalty and Revenue Committee. 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 market; 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 a tax structure that retains an inadequate value of those resources for 15 Alaskans violates the constitutional obligation to develop the state's resources for the 16 maximum benefit of Alaskans; and
01 WHEREAS maximizing oil and gas production and the benefits from the production 02 of oil and gas is in the best interests of the state; and 03 WHEREAS the tax and royalty structures in place in the state's oil and gas sector are 04 a portion of the cost of production and affect the competitive ability of Alaska to maintain and 05 attract new capital investments; and 06 WHEREAS it is appropriate to reevaluate periodically the state's system of oil and 07 gas taxes as the scope and cost of oil and gas exploration and production operations change 08 over time; 09 BE IT RESOLVED that the Alaska State Legislature establishes the Alaska Royalty 10 and Revenue Committee to review and analyze the state's current oil and gas royalty and tax 11 structures; and be it 12 FURTHER RESOLVED that the committee shall be composed of seven members to 13 include three members of the House of Representatives appointed by the speaker of the 14 House, one of whom shall be a member of the minority, three members of the Senate 15 appointed by the Senate President, one of whom shall be a member of the minority, and the 16 chair of the Legislative Budget and Audit Committee; and be it 17 FURTHER RESOLVED that the Speaker of the House of Representatives shall 18 appoint the committee chair; and be it 19 FURTHER RESOLVED that the committee may study issues and collect 20 information, including confidential information under terms and conditions that preserve its 21 confidentiality, hold hearings should the committee consider hearings desirable with the 22 power to compel attendance by subpoena if necessary, work with outside consultants, and 23 take whatever other action may be appropriate; and be it 24 FURTHER RESOLVED that the committee retain consultants with expertise in 25 global oil and gas fiscal structures to perform a comprehensive study and prepare a report on 26 the state's oil and gas tax and royalty regime; and be it 27 FURTHER RESOLVED that the study identify alternative state revenue and 28 industry incentive structures that maximize the state's oil and gas revenue, promote 29 development of known oil and gas resources, and encourage additional exploration and 30 development with consideration of the widest possible range of world oil prices; and be it 31 FURTHER RESOLVED that the study analyze the consequences of existing and
01 alternative tax structures on Alaska's competitiveness in maintaining existing and attracting 02 new industry investment; and be it 03 FURTHER RESOLVED that the results shall be documented in a final report of 04 findings made to the committee; and be it 05 FURTHER RESOLVED that the committee shall assist and facilitate the contractor 06 or contractors in the performance of the study; and be it 07 FURTHER RESOLVED that the committee begin work on June 1, 2004, or as soon 08 after that date as possible; and be it 09 FURTHER RESOLVED that the committee may meet during the interim; and be it 10 FURTHER RESOLVED that the committee shall submit the report of findings to the 11 Legislative Budget and Audit Committee, who shall present the report to the Twenty-Fourth 12 Alaska State Legislature not later than March 1, 2005; and be it 13 FURTHER RESOLVED that the committee is terminated not later than the 14 adjournment of the First Regular Session of the Twenty-Fourth Alaska State Legislature.