2006-07-12                     House Journal                      Page 4222
HB 3002                                                                                           
HOUSE BILL NO. 3002 by the House Rules Committee by request of                                      
the Governor, entitled:                                                                             
                                                                                                    
     "An Act relating to the Alaska Stranded Gas Development Act;                                   
     relating to municipal impact money received under the terms of a                               
     stranded gas fiscal contract; relating to determination of full and                            
     true value of property and required contributions for education in                             
     municipalities affected by stranded gas fiscal contracts; and                                  
     providing for an effective date."                                                              
                                                                                                    
was read the first time and referred to the Judiciary and Finance                                   
Committees.                                                                                         
                                                                                                    
The following fiscal note(s) apply:                                                                 
                                                                                                    
1.  Zero, Dept. of Natural Resources                                                                
2.  Zero, Dept. of Revenue                                                                          
                                                                                                    
The Governor's transmittal letter dated July 12, 2006, follows:                                     
                                                                                                    
"Dear Speaker Harris:                                                                               
                                                                                                    
Under the authority of article III, section 18, of the Alaska                                       
Constitution, I am transmitting a bill relating to the Alaska Stranded                              

2006-07-12                     House Journal                      Page 4223
Gas Development Act.  This bill is a shorter version of SB 2004,                                    
which was introduced at my request during the Second Special Session                                
of the Twenty-Fourth Alaska State Legislature.  The provisions of the                               
present bill are based largely on certain amendments to SB 2004 that                                
were reflected in CSSB 2004(NGD).  The bill I am transmitting would                                 
authorize the commissioner of revenue to negotiate fiscal terms                                     
relating to oil, and includes provisions relating to certain payments to                            
municipalities and nonprofit organizations.                                                         
                                                                                                    
I continue to believe that the proposed fiscal contract originally                                  
negotiated with the producers would be in the public interest.                                      
However, it is my intent to be responsive to the concerns expressed by                              
the Legislature and members of the public concerning the provisions                                 
in the fiscal contract that provide for fiscal certainty for certain taxes                          
levied on the production of oil.  I encourage the Legislature to                                    
continue review the fiscal contract and consider amendments to the                                  
Stranded Gas Development Act that will provide a sound foundation                                   
throughout the duration of the contract.  I pledge the full cooperation                             
of my administration to assist you in this effort, which is in the long-                            
term fiscal interest of the state.                                                                  
                                                                                                    
I urge your prompt and favorable consideration of this bill.                                        
                                                                                                    
                                 Sincerely yours,                                                   
                                 /s/                                                                
                                 Frank H. Murkowski                                                 
                                  Governor"