Legislature(2005 - 2006)

08/09/2006 11:11 AM House FIN


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11:11:29 AM Start
11:11:46 AM SB3002
11:19:29 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       August 9, 2006                                                                                           
                         11:11 a.m.                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House Finance Committee meeting to                                                                    
order at 11:11:29 AM.                                                                                                         
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Mike Hawker                                                                                                      
Representative Jim Holm                                                                                                         
Representative Mike Kelly                                                                                                       
Representative Beth Kerttula                                                                                                    
Representative Bruce Weyhrauch                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Moses                                                                                                       
Representative Richard Foster                                                                                                   
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
William Corbus, Commissioner, Department of Revenue                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 3002   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.                                                                                      
                                                                                                                                
          SB 3002 was REPORTED out of Committee with a "do                                                                      
          pass" recommendation  and with a zero  fiscal note:                                                                   
          REV #3.                                                                                                               
                                                                                                                                
11:11:46 AM                                                                                                                   
CS FOR SENATE BILL NO. 3002(NGD)                                                                                              
                                                                                                                                
     An  Act  amending  the time  allowed  under  the  Alaska                                                                   
     Stranded  Gas Development  Act for  the commissioner  of                                                                   
     revenue   to   summarize    public   comments,   propose                                                                   
     amendments,   if   any,   and  make   findings   and   a                                                                   
    determination; and providing for an effective date.                                                                         
                                                                                                                                
WILLIAM   CORBUS,   COMMISSIONER,  DEPARTMENT   OF   REVENUE,                                                                   
observed  that under  the Stranded  Gas  Development Act  the                                                                   
Administration  has  30 days  following  the  closure of  the                                                                   
public  comment  process  to  prepare  a  summary  of  public                                                                   
comments received.  The Department renegotiates  the contract                                                                   
and issues  the final fiscal  interest findings.  The purpose                                                                   
of  the  legislation  is  to  extent  the  time  allowed  for                                                                   
negotiation and the final fiscal  interest findings for up to                                                                   
                                                  th                                                                            
120 days. The public  process was begun on May  10  and ended                                                                   
on July  24, 2006 (75 days).  Included in the  public process                                                                   
were:  eleven days  of  legislative briefings,  seven  public                                                                   
hearings, and  six public forums  by the Administration.  The                                                                   
Administration  received  2,158 comments,  which  need to  be                                                                   
analyzed.  He stressed  that additional  time  was needed  to                                                                   
complete  the  process  of  renegotiating  the  contract  and                                                                   
preparing findings.                                                                                                             
                                                                                                                                
11:15:19 AM                                                                                                                   
                                                                                                                                
Commissioner  Corbus  observed  that  contract  analysis  and                                                                   
renegotiation  is also partially  dependent on [the  adoption                                                                   
of] Petroleum  Production Tax (PPT) legislation,  which added                                                                   
to the delay.                                                                                                                   
                                                                                                                                
11:16:24 AM                                                                                                                   
                                                                                                                                
In  response   to  a  question  by  Representative   Stoltze,                                                                   
Commissioner Corbus reiterated  that the public process ended                                                                   
on July  24, 2006. The legislation  would extend  the process                                                                   
to 120 days (toward the end of November).                                                                                       
                                                                                                                                
11:18:46 AM                                                                                                                   
                                                                                                                                
Co-Chair  Chenault  noted  the   two  previous  fiscal  notes                                                                   
pertained to  previous versions  and would not  accompany the                                                                   
legislation. He observed  that a new zero fiscal  note, dated                                                                   
8/9/06, would be issued by the Department of Revenue.                                                                           
                                                                                                                                
11:19:29 AM                                                                                                                   
                                                                                                                                
Representative Hawker  MOVED to report CSSB  3002(NGD) out of                                                                   
Committee with  the accompanying  new REV fiscal  note. There                                                                   
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
SB  3002 was  REPORTED  out of  Committee  with  a "do  pass"                                                                   
recommendation and with a zero fiscal note: REV #3.                                                                             
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:20 AM.                                                                                          
                                                                                                                                
                                                                                                                                

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