Legislature(1995 - 1996)
02/14/1995 01:35 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
FEBRUARY 14, 1995
1:35 P.M.
TAPE HFC 95 -21, Side 2, #000 - #506.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:35 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
Wilson Condon, Commissioner, Department of Revenue.
SUMMARY
CONFIRMATION HEARING:
Department of Revenue
Commissioner Designate Wilson Condon
CONFIRMATION HEARING: DEPARTMENT OF REVENUE - WILSON CONDON
WILSON CONDON, COMMISSIONER, DEPARTMENT OF REVENUE,
introduced himself to the House Finance Committee and stated
his intent to fairly represent the people of Alaska.
Representative Navarre asked if legislation would be
provided by the Department which would address tax disputes.
Mr. Condon replied to date, no legislative proposals have
been submitted addressing that concern. He added,
nevertheless, unresolved oil and gas tax revenue matters are
of concern for the Department.
Representative Kelly questioned Mr. Condon's participation
in the Stanford Law School Environmental and Natural
Resources Advisory Council, 1991-1994. Mr. Condon advised
that in the late '60's, when he was in law school,
environmental concerns and focus were in the fore front. He
noted that he was one of the founding members of the
Environmental Law Society at Stanford Law School. The
activities of that group included recruiting volunteers from
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various citizen groups to pursue environmental issues.
He continued, the second organization in which he was a
member was a group of advisors who serve as citizen support
and also an advisory group to the law school. That group
would advise on curriculum and changes made in order to
better prepare lawyers who were interested in pursuing
careers in those areas.
Representative Martin asked if Mr. Condon would support
Governor Knowles in disputes over controversies involving
the Alaska Permanent Fund Board and the Alaska Industrial
Development and Export Authority (AIDEA) Board. Mr. Condon
explained that his responsibilities with the Alaska
Permanent Fund Board are fiduciary related and judgments
would be made for the best interest of the Permanent Fund
Board. He emphasized that when interests of the Governor
were not be in align with the fund, it would be his
obligation to disagree with the Governor.
Although, the responsibility of AIDEA Board members are not
in a fiduciary realm, consequently, being appointed by the
Governor, would indicate that board members would support
implementation of policies that the Governor would want to
see occur. Mr. Condon stated that he would support any
decision made by the Governor in relationship to that board.
Representative Martin questioned the settlement made between
the Department of Law and the Department of Revenue
regarding back oil taxes and the existing relationship
between those departments. Mr. Condon acknowledged over the
past few years, the departments have been able to work
together amiably in order to bring closure to the back tax
disputes. He thought that the good relationship would
continue during the current Administration.
Mr. Condon explained the three large dispute cases currently
being addressed by the State. The first case involves Exxon
and that the remaining two cases are confidential. Those
two cases will generate one eighth the financial revenue
that was received from Exxon. The remaining concerns
regarding the oil and gas royalty issues are scheduled to go
to trial, April, 1995. Those issues relate to gas and gas
liquid production. He commented that the trial could take
two months in court, although, he hoped the matter could
settle before trial. That would be the end of royalty
litigation.
Representative Mulder asked Mr. Condon's perspective
regarding the Mark Air proposal. Mr Condon replied, that at
this date, he does not have the information provided by
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AIDEA consultants. He noted that the Department's criteria
would consider if the proposal was feasible, and if then
that proposal would work, would it provide jobs. When that
information has been accumulated, then a decision will be
made by the State to determine if the Department should take
the risk of spending those funds.
Co-Chair Foster asked Mr. Condon to summarize his
publication "Reforming the Mining Laws - The Case for a
Leasing System" (1971). Mr. Condom pointed out that the
paper was written when he was a third year law student. The
paper advocated a leasing system in-place-of the location
system for mining. He admitted that he did not know much
about mining when the paper was written.
Co-Chair Foster asked if Mr. Condon thought that leasing
could enhance the mining industry in Alaska. Mr. Condon
answered that the Constitution requires that there be a
leasing system. He concluded, there will be no revenue from
the mines, if there are no mines. People must express
interest in mining if mining is to be used as a revenue
generating source.
Co-Chair Hanley explained the standard confirmation report
form currently used does not indicate a "for" or "against"
vote of the Committee. He noted that the Alaska Statute's
require that there be a hearing on all appointed
commissioners, but not necessarily a vote. Representative
Navarre suggested sending a recommendation to the other
members of the House of Representatives, inasmuch as Mr.
Condon is a qualified candidate for Commissioner of Revenue.
Representative Martin agreed with Representative Navarre and
offered a positive recommendation for Mr. Condon based on a
review of his qualifications.
Representative Martin MOVED a consensus confirmation of Mr.
Wilson Condon as Commissioner of the Department of Revenue.
There being NO OBJECTION, it was confirmed.
ADJOURNMENT
The meeting adjourned at 2:05 P.M.
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