Legislature(2011 - 2012)SENATE FINANCE 532
03/19/2012 01:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 192 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE BILL NO. 192
"An Act relating to the oil and gas production tax;
and providing for an effective date."
1:07:41 PM
Co-Chair Stedman addressed the current meeting's agenda. He
stressed that the public testimony would be limited to two
minutes per person.
1:11:20 PM
KAREN COWART, SELF, ANCHORAGE (via teleconference),
testified against SB 192. She shared that her husband had
worked on the pipeline. She felt that money that could
support Alaskans was going to other parts of the world.
1:11:34 PM
AVES THOMPSON, ALASKA TRUCKING ASSOCIATION, ANCHORAGE (via
teleconference), spoke in support of HB 110. He felt that
SB 192 needed to make some major changes before it moved
from committee. He stressed the importance of keeping the
pipeline full and running.
1:13:28 PM
PETE STOKES, SELF, ANCHORAGE (via teleconference),
testified against SB 192 in its current form. He had worked
in the oil and gas industry for ten years in Alaska. He
felt that the oil and gas progressivity rate was the reason
that there was no new investment.
1:15:29 PM
PETER MACKSEY, STEEL FAB, ANCHORAGE (via teleconference),
spoke against SB 192. He stressed that the state relied on
the oil revenue.
1:16:40 PM
LORA REINBOLD, SELF, ANCHORAGE (via teleconference),
encouraged the committee to consider Pedro Van Meur's
testimony. She encouraged meaningful tax reform. She
stressed that the future of Alaska was grim. She pointed
out increased production along with increased government
spending. She stressed that the Alaska Clear and Equitable
Share Act (ACES) was not actually clear and equitable.
1:18:51 PM
MICHAEL JESPERSON, SELF, ANCHORAGE (via teleconference),
spoke against SB 192 in its current form. He felt that the
bill did not make meaningful changes, and did not give the
House enough time to make considerations. He felt that HB
110 should be incorporated into SB 192.
1:20:30 PM
JAKE JACOBSON, SELF, KODIAK (via teleconference), opposed
sacrificing Alaska oil revenues for oil company profits. He
felt that ACES needed to be changed. He felt that the
Trans-Alaska Pipeline System (TAPS) should be available to
independent companies. He felt that the "oil should be left
in the ground, and the money should stay in the bank."
1:23:38 PM
JEAN WOODS, SELF AND FAMILY, MATSU (via teleconference),
testified against SB 192. She felt that Alaska should
receive its fair share of the oil revenue. She furthered
that the bill did not reduce taxes enough, and the oil
companies paid Alaska money. She encouraged the committee
to focus efforts on HB 110.
1:25:38 PM
RICHARD BENEVILLE, NOME DISCOVERY TOURS, NOME CHAMBER OF
COMMERCE, NOME (via teleconference), spoke against SB 192.
He did not feel that the bill would address meaningful
changes. He felt that Alaska needed to be attractive in the
global market.
1:27:28 PM
JOSEF PRINCIOTTA, SELF, ANCHORAGE (via teleconference),
stressed that corporations were conducting themselves in an
inhumane manner. He felt Alaska's current oil and gas tax
system was very fair. He pointed out that Alaska provided a
capable labor force.
1:29:38 PM
DEBORAH BROLLINI, SELF, ANCHORAGE (via teleconference),
spoke against SB 192. She shared that she had worked on
several projects related to engineering in the oil and gas
industry. She noted that producers were spending millions
of dollars outside of Alaska. She felt that HB 110 could be
a good alternative to SB 192.
1:31:36 PM
JASON BRUNE, SELF, ANCHORAGE (via teleconference), spoke
against SB 192. He was more supportive of HB 110. He did
not agree with the Senate's reasoning for not considering
HB 110. He stressed that oil prices were increasing, and
North Slope oil development was at one-third of its peak.
1:33:48 PM
VINCE BELTRAMI, PRESIDENT, ALASKA AFL CIO, ANCHORAGE (via
teleconference), testified in support of SB 192. He
stressed that many union members needed the industry to be
held accountable. He felt that the governor and industry
had lined up testifiers to speak against SB 192.
1:36:58 PM
BRENT SENETTE, CH2MHILL, ANCHORAGE (via teleconference),
testified against SB 192. He encouraged the committee to
consider HB 110. He felt that the progressivity tax on oil
production was detrimental to Alaska. He stressed that
there was a myriad of businesses in Alaska that provided
jobs related to the oil and gas industry.
1:38:55 PM
ANDY ROGERS, SELF AND FAMILY, ANCHORAGE (via
teleconference), testified against SB 192. He felt that the
committee substitute was passed out the Senate Resource
Committee in a questionable manner. He thanked Senators
McGuire and Wagoner for their attempts to make changes to
the bill.
1:41:39 PM
RACHAEL PETRO, PRESIDENT AND CEO, ALASKA STATE CHAMBER OF
COMMERCE, ANCHORAGE (via teleconference), spoke against SB
192. She felt that there needed to be meaningful changes to
the current tax structure. She pointed out that Alberta and
North Dakota recently lowered their taxes, and the oil
industry in those areas was booming.
1:44:01 PM
LYNN JOHNSON, PRESIDENT, DOWLAND-BACH, ANCHORAGE (via
teleconference), testified against SB 192. He felt that the
current tax structure was not competitive with North Dakota
and Texas. He felt that there was nothing superior about
Alaska's oil, so ACES needed to be changed in a meaningful
way.
1:46:24 PM
CHUCK BECKER, SELF AND SPOUSE, ANCHORAGE (via
teleconference), explained that he had served in the
military overseas, and had seen how different communities
dealt with different oil tax structures. He stressed that
the current tax structure was detrimental to the state. He
stated that the current production tax did not encourage
investment in the state. He encouraged the committee to
consider a bill that would make Alaska more competitive on
a global scale.
1:48:05 PM
TOM HENDRIX, BUSINESS OWNER, ANCHORAGE (via
teleconference), encouraged the committee to adjust the
structure of SB 192 to something similar to HB 110. He
explained that his job had taken him to Alberta and North
Dakota, in the hopes for work with producers in those
areas. He emphasized that he would like to keep his
business in Alaska.
1:50:40 PM
DEANTHA CROCKETT, SELF, ANCHORAGE (via teleconference),
testified in opposition to SB 192. He would like to see
TAPS at full capacity.
1:51:40 PM
TED BARAN, SELF, ANCHORAGE (via teleconference), did not
feel that SB 192 went far enough to make meaningful changes
to the current tax structure. He felt that the state
savings would not last forever. He explained that Alaska
did not have a state income tax and the permanent fund
dividend (PFD), and he hoped to continue that lifestyle.
1:53:46 PM
CORAL HOWE, SELF AND BUSINESS OWNER, FAIRBANKS (via
teleconference), testified against SB 192. She explained
that her great-grandfather came to Alaska. She stressed
that 80 percent of her business dealt directly or
indirectly with the oil industry.
1:56:49 PM
LISA HERBERT, FAIRBANKS CHAMBER OF COMMERCE (via
teleconference), testified against SB 192. She commented
that the members of the Fairbanks Chamber of Commerce were
direct or indirect representatives of the oil industry.
1:58:36 PM
MARY SHIELDS, GENERAL MANAGER, NORTHWEST TECHNICAL
SERVICES, ANCHORAGE (via teleconference), spoke against SB
192. She agreed with the previous positions of the
testifiers who had spoken against SB 192. She encouraged
adjustments to SB 192 to align more closely with HB 110.
2:00:09 PM
FRANK FLAVIN, FLAVIN PHOTOGRAPHY, ANCHORAGE (via
teleconference), testified against SB 192. He remarked that
Alaska would not exist or be prominent without oil. He
encouraged new development, and stressed changes to SB 192
to make Alaska more competitive with other oil regimes.
2:01:51 PM
JIM CHRISTIAN, VOSS, ANCHORAGE (via teleconference),
testified against SB 192. He explained that TAPS was the
"life blood" of Alaska. He stressed that an oil company
investment environment needed to be supported by the
legislature.
2:03:24 PM
JAMELIOS SATED, SELF, ANCHORAGE (via teleconference), spoke
in support of SB 192. She felt that it was difficult to
determine what were fact, fiction, and propaganda. She
pointed out that the oil companies were using money from
Alaska to invest in elsewhere. She stressed that Alaska was
seeing a very high employment rate.
2:06:00 PM
STEVE CASSELL, SELF, ANCHORAGE (via teleconference), shared
a personal story about his family and his work on the North
Slope for British Petroleum. He felt that oil development
was lacking in Alaska. He noted that when oil revenues
decline, property taxes rise. He felt that there needed to
be a proper combination of SB 192 and HB 110, to make
meaningful change to the current tax structure.
2:08:20 PM
CLIFF KILLANY, SELF, ANCHORAGE (via teleconference),
testified against SB 192. He noted that he had worked for
three different companies on the North Slope. He felt that
the current tax structure was detrimental to the oil
industry. He pointed out that Alaska was losing business to
North Dakota, Alberta, and Texas.
2:11:33 PM
JERRY AHWINONA, SELF, ANCHORAGE (via teleconference),
appreciated the legislature's service to the native
community and the state of Alaska. He felt that smaller oil
companies should be encouraged to produce and invest in
Alaska.
2:14:35 PM
BRIAN CLEMONS, INDUSTRY WORKER, ANCHORAGE (via
teleconference), testified in support of the removal of a
progressivity rate. He encouraged a diversified economy. He
encouraged a structure that would allow for investment and
entrepreneurial endeavors.
2:17:21 PM
RADA KAHADJINOVA, SELF, ANCHORAGE (via teleconference),
encouraged changing the current tax structure to promote
new development. She stressed that new production would
allow for new jobs and new revenue contributions to the
Permanent Fund.
2:19:13 PM
MILA UMANSKAYA, SELF, ANCHORAGE (via teleconference), would
like to see tax reform that would increase oil production,
make Alaska more competitive, and stimulate Alaska's
infrastructure development.
2:19:39 PM
FRANK O'CONNOR, INDUSTRY WORKER, ANCHORAGE (via
teleconference), shared some personal stories regarding
businesses leaving New York in search of a friendlier
economic environment. He noted other states that were
living in a deficit, and hoped that Alaska would never live
in a deficit.
2:21:26 PM
JOHN STUTSNEN, INDUSTRY WORKER, ANCHORAGE (via
teleconference), explained that corporations were not evil,
and felt that they encouraged jobs. He explained that he
was doing maintenance work in the oil industry, because
there was very little development. He noted that some
contractors had moved out of state, because of the lack of
business.
2:23:07 PM
WARREN LUCAS, INDUSTRY WORKER, ANCHORAGE (via
teleconference), testified against SB 192, and supported HB
110.
2:23:56 PM
JIM NEELEY, INDUSTRY WORKER, ANCHORAGE (via
teleconference), testified against SB 192, and added that
Alaska should be competitive on a global scale.
2:25:31 PM
BRAD CLARKE, INDUSTRY WORKER, ANCHORAGE (via
teleconference), spoke against SB 192, and felt that
competitiveness should be a focus of any legislation. He
stressed that most projects were currently maintenance
projects. He felt that there was little incentive for new
oil projects.
2:26:53 PM
HEATHER MARCH, INDUSTRY WORKER, ANCHORAGE (via
teleconference), supported significant and meaningful tax
reform.
2:27:37 PM
ELI STEINE, INDUSTRY WORKER, ANCHORAGE (via
teleconference), stressed that Alaska had many economic and
recreational opportunities. He wanted to stay in the state,
but was worried that there would not be continued
opportunities in Alaska. He hoped that the committee would
consider legislation that encouraged oil industry business.
2:28:57 PM
EMILY COTS, INDUSTRY WORKER, ANCHORAGE (via
teleconference), testified in support of SB 192.
2:30:00 PM
KELLY WATERS, SELF, ANCHORAGE (via teleconference), spoke
in support of SB 192. He felt that ordinary Alaskans were
currently trying to make ends meet. He felt that the
testifiers were subject to the oil industry propaganda. He
alleged that HB 110 was an oil industry welfare bill.
2:32:45 PM
LEOPOLD BOREISIS, SELF, ANCHORAGE (via teleconference),
testified in support of SB 192. He shared that he had been
a professional hunter for 20 years. He pointed out that oil
companies made billions of dollars in profits. He felt that
there needed to be a reasonable and fair alternative to the
current tax structure.
2:34:06 PM
BLYTHE CAMPBELL, SELF, ANCHORAGE (via teleconference),
spoke against SB 192. She encouraged the committee to focus
their efforts on HB 110.
2:35:03 PM
ERIC DOWONEY, SELF, ANCHORAGE (via teleconference), felt
that the only guarantee was that the pipeline will dry up.
He suggested new ways to encourage oil in the pipeline.
2:36:23 PM
BRIAN HOVE, SELF, ANCHORAGE (via teleconference), testified
against SB 192. He stressed that Alaska's wealth relied on
oil. He felt that HB 110 would be a reliable option.
2:38:14 PM
JOE MORRISON, SELF, ANCHORAGE (via teleconference),
encouraged the committee to focus on incentives for
increased resource production. He shared an experience
regarding Alaskans' perspective on the economy in Alaska.
He felt that the long-term economic outlook in Alaska was
grim.
2:41:18 PM
PAT ABNEY, SELF, ANCHORAGE (via teleconference), testified
in support of SB 192. She felt that the corporations were
being considered more than the people of Alaska.
2:42:04 PM
AT EASE
2:47:20 PM
RECONVENED
2:48:01 PM
KIM GRIFFITH, SELF AND FAMILY, ANCHORAGE (via
teleconference), testified in support of a tax structure
that encouraged development.
2:48:59 PM
BILL WARREN, SELF, NIKISKI (via teleconference), spoke in
support of SB 192. He testified against HB 110.
2:50:23 PM
RAY METCALF, CITIZENS FOR ETHICAL GOVERNMENT, ANCHORAGE
(via teleconference), stressed that oil companies were
successful in convincing people of things that were not
true. He stated that Mexico's taxes on oil were higher than
Alaska. He noted that former tax breaks to oil companies
did not encourage new oil development.
2:54:17 PM
DAVID METHENY, SELF, ANCHORAGE (via teleconference),
testified in loose support of SB 192, and felt that ACES
was working fine for the state. He stressed that HB 110 was
a horrible bill, and had no focus on investment and new
jobs.
2:57:34 PM
KRISTA GONDER, NORTHERN INDUSTRIAL TRAINING, WASILLA (via
teleconference), testified against SB 192. She stated that
there needed to be significant changes to the bill in its
current form. She felt that short-term gains were stealing
away from the long-term gains. She stressed focusing on the
total government take, and making Alaska competitive on a
global scale.
2:59:26 PM
BRENDAN BABB, SELF, ANCHORAGE (via teleconference),
testified in favor of SB 192. He felt that Governor Parnell
was exaggerating the problems with the current structure.
SB 192 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman discussed the following day's agenda.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 192 Opposition Hopkinson.pdf |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Testimony Maloney.pdf |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 NOSI Opposition Testimony.pdf |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Opposition Testimony Harrison.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Opposition Testimony Cochrane.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Opposition Testimony Leon.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Opposition Testimony Whitley.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Opinion Tilsworth.docx |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Testimony Beedle.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Testimony Bonner.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Testimony Johnson.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Testimony Nelson.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Support Testimony Robbins.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Testimony Opposition Fairbanks.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |
| SB 192 Testimony.msg |
SFIN 3/19/2012 1:00:00 PM |
SB 192 |