06/02/2016 03:00 PM House FINANCE

HOUSE BILL NO. 4003                                                                                                           
                                                                                                                                
     "An Act relating to the motor fuel tax; and providing                                                                      
     for an effective date."                                                                                                    
                                                                                                                                
3:04:11 PM                                                                                                                    
                                                                                                                                
Representative Gara took issue with  the order of the bills.                                                                    
He thought industry should pay before taxing individuals.                                                                       
                                                                                                                                
Representative Wilson  stated that industry paid  for all of                                                                    
the taxes,  including gasoline. She  was concerned  that the                                                                    
committee did  not have all  of the information and  did not                                                                    
know what impact  it would have on the  economy. She thought                                                                    
it was important to ensure  that as many areas of government                                                                    
as possible were self-sufficient.                                                                                               
                                                                                                                                
Representative Kawasaki had concerns  over the bill for many                                                                    
of the same reasons  Representative Wilson had mentioned. He                                                                    
referred to the subject of  jet fuel, which had been brought                                                                    
up in  a previous meeting  and had inspired him  to research                                                                    
negotiated  prices in  the United  States. He  thought there                                                                    
should  have   been  a  cost   analysis  completed   by  the                                                                    
department prior to  the introduction of the  bill. He spoke                                                                    
to gas  prices in  the Northwest region  of the  country. He                                                                    
did  not know  if the  taxes were  punitive and  would drive                                                                    
away business. He thought more  analysis on economic impacts                                                                    
was   warranted.  He   agreed  with   Representative  Gara's                                                                    
comments.  He spoke  to  the  tax system  in  the state.  He                                                                    
thought the  oil and gas  tax system needed to  be addressed                                                                    
before looking at taxes on individual citizens.                                                                                 
                                                                                                                                
3:07:53 PM                                                                                                                    
                                                                                                                                
Co-Chair Neuman  expressed his concerns  about the  bill. He                                                                    
stated that  35,000 Alaskans drove a  100-mile daily commute                                                                    
to Anchorage  from Mat-Su.  He discussed  the danger  of the                                                                    
highway  and the  needed  repairs. He  was  unsure that  the                                                                    
committee was prepared  with the right data.  He stated that                                                                    
people in  the Mat-Su tended  to drive larger  vehicles, and                                                                    
used more  fuel than other  areas of the state  with shorter                                                                    
commutes and less hazardous roads.                                                                                              
                                                                                                                                
Co-Chair Thompson noted representatives in the room.                                                                            
                                                                                                                                
Representative Gattis believed the  bills represented a huge                                                                    
change in the  way the state was doing  business. She echoed                                                                    
the comments of Representative Wilson.                                                                                          
                                                                                                                                
Vice-Chair Saddler discussed his  constituents living on the                                                                    
Glenn  Highway corridor.  He discussed  the need  for decent                                                                    
roads  and affordable  fuels. He  discussed fuel  prices. He                                                                    
stated  that he  would  support advancing  the  bill to  the                                                                    
floor.                                                                                                                          
                                                                                                                                
3:11:47 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  thought   valid  concerns  had  been                                                                    
addressed  pertaining  to  the   bills  on  the  agenda.  He                                                                    
associated  his comments  with Representative  Gattis' prior                                                                    
statements. He remarked that if  the bills did not leave the                                                                    
committee the governor would keep  calling them back, and he                                                                    
would  vote to  pass the  bills from  committee to  save the                                                                    
state money. He  did not support the bills,  and thought the                                                                    
committee process was being usurped.                                                                                            
                                                                                                                                
Representative  Gara  recalled that  in  the  past few  days                                                                    
there had been significant  criticism of the administration.                                                                    
He did  not see what  the administration had done  wrong. He                                                                    
spoke to the  state's $3.2 billion to  $3.7 billion deficit.                                                                    
He gave  the governor  credit for  putting together  a plan,                                                                    
and  thought criticism  of the  governor's  office had  been                                                                    
unfair.                                                                                                                         
                                                                                                                                
Representative  Gara opined  that  there were  many ways  to                                                                    
close  the fiscal  gap. He  believed  the gap  needed to  be                                                                    
closed in  a way that was  fair to all residents  across the                                                                    
state.  He did  not  see individuals  and corporations  with                                                                    
great privilege contributing  in a way that  was notable. He                                                                    
understood the  need to raise  funds, but wanted  the burden                                                                    
to be shared. He mentioned a corporate tax with exemptions.                                                                     
                                                                                                                                
Co-Chair  Thompson noted  that Representative  Josephson and                                                                    
Representative Reinbold were in attendance.                                                                                     
                                                                                                                                
3:17:32 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  was   concerned  about  who  was                                                                    
impacted by  the bill. He  considered that the bill  was the                                                                    
lowest  on his  priority  list and  he  thought it  affected                                                                    
people across the  board. He thought it was  more prudent to                                                                    
start  with  larger  fiscal  issues  before  taking  on  the                                                                    
smaller ones. He thought the  package of bills on the agenda                                                                    
was difficult.                                                                                                                  
                                                                                                                                
3:20:50 PM                                                                                                                    
                                                                                                                                
Co-Chair  Neuman  MOVED  to REPORT  CSHB  4003(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Wilson OBJECTED. She  was unsure how the bill                                                                    
would  affect  business  and individuals,  and  without  the                                                                    
information was  unwilling to move the  bill from committee.                                                                    
She discussed use of heating fuel in her district.                                                                              
                                                                                                                                
Co-Chair Neuman noted  that the motion was to  move the bill                                                                    
from committee.                                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Saddler, Edgmon, Gara,  Guttenberg, Pruitt, Munoz,                                                                    
Neuman, Thompson                                                                                                                
OPPOSED: Wilson, Gattis, Kawasaki                                                                                               
                                                                                                                                
The MOTION PASSED (8/3).                                                                                                        
                                                                                                                                
CSHB  4003(FIN)  was  REPORTED out  of  committee  with  "no                                                                    
recommendation"  and with  one fiscal  impact note  from the                                                                    
Department of Revenue.                                                                                                          
                                                                                                                                
3:23:27 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:26:48 PM                                                                                                                    
RECONVENED