Legislature(1995 - 1996)
04/20/1995 05:10 PM House WTR
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON
WORLD TRADE AND STATE/FEDERAL RELATIONS
April 20, 1995
5:10 p.m.
MEMBERS PRESENT
Representative Ramona Barnes, Chairman
Representative Gary Davis
Representative Bill Williams
Representative Gene Kubina
MEMBERS ABSENT
Representative Gail Phillips, Vice Chairman
Representative Eldon Mulder
Representative Jerry Mackie
COMMITTEE CALENDAR
* HJR 39: Relating to the Northern Sea Route.
PASSED OUT OF COMMITTEE
* HJR 31: Urging the United States Congress to consider and
enact legislation to revise the Internal Revenue
Service Code to levy a flat tax.
PASSED OUT OF COMMITTEE
* HJR 41: Supporting an exemption from the Jones Act for bulk
commodities, such as coal and coal derived fuels,
produced in Alaska.
PASSED OUT OF COMMITTEE
(* First public hearing)
WITNESS REGISTER
ORSON P. SMITH, PE, PhD.
Coastal Engineer/Oceanographer
Civil Works Branch
United States Army Corps of Engineers
Post Office Box 898
Anchorage, Alaska 99506-0898
Telephone: 753-2632
POSITION STATEMENT: Supported HJR 39
PAUL FUHS, Self
10652 Portar Lane
Juneau, Alaska 99801
Telephone: 790-3030
POSITION STATEMENT: Supported HJR 39
REPRESENTATIVE JEANNETTE JAMES
Alaska State Legislature
State Capitol, Room 102
Juneau, Alaska 99801-1182
Telephone: 645-3743
POSITION STATEMENT: Offered sponsor statement to HJR 31
JACK PHELPS, Legislative Assistant
Representative Bill Williams
Alaska State Legislature
State Capitol, Room 128
Juneau, Alaska 99801-1182
Telephone: 465-3424
POSITION STATEMENT: Provided position statement for HJR 41
THOMAS CRAFFORD, Manager
Minerals and Coal
Cook Inlet Region, Inc.
2525 C Street, Suite 500
Anchorage, Alaska 99503
Telephone: 274-8638
POSITION STATEMENT: Supported HJR 41
PREVIOUS ACTION
BILL: HJR 39
SHORT TITLE: NORTHERN SEA ROUTE DEVELOPMENT
SPONSOR(S): SP CMTE WORLD TRADE & ST/FED RELATIONS
JRN-DATE JRN-PG ACTION
03/27/95 932 (H) READ THE FIRST TIME - REFERRAL(S)
03/27/95 932 (H) WTR, TRANSPORTATION
04/20/95 (H) WTR AT 05:00 PM CAPITOL 408
BILL: HJR 31
SHORT TITLE: ENDORSE FEDERAL FLAT INCOME TAX
SPONSOR(S): REPRESENTATIVE(S) JAMES,Kott
JRN-DATE JRN-PG ACTION
02/15/95 369 (H) READ THE FIRST TIME - REFERRAL(S)
02/15/95 369 (H) FINANCE
02/27/95 511 (H) COSPONSOR(S): KOTT
03/15/95 756 (H) WTR REFERRAL ADDED
04/20/95 (H) WTR AT 05:00 PM CAPITOL 408
BILL: HJR 41
SHORT TITLE: JONES ACT EXEMPTION FOR BULK COMMODITIES
SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,Bunde,Kott
JRN-DATE JRN-PG ACTION
04/06/95 1051 (H) READ THE FIRST TIME - REFERRAL(S)
04/06/95 1051 (H) WTR, TRANSPORTATION
04/11/95 1270 (H) COSPONSOR(S): KOTT
04/20/95 (H) WTR AT 05:00 PM CAPITOL 408
ACTION NARRATIVE
There is no tape available due to technical difficulties.
The meeting of the House Special Committee on World Trade and
State/Federal Relations was called to order by Chairman Ramona
Barnes at 5:10 p.m. Members present at the call to order were
Representatives Barnes, Davis and Kubina. Members absent were
Representatives Phillips, Mulder, Williams and Mackie.
CHAIRMAN RAMONA BARNES stated that there was not a quorum
present, but would conduct the meeting until such time as a
quorum could be satisfied.
HJR 39 - NORTHERN SEA ROUTE DEVELOPMENT
DR. ORSON P. SMITH, Project Manager for the study of the Northern
Sea Route for the United States Army Corps of Engineers,
testified via teleconference from Anchorage in support of HJR 39,
reiterating much of his testimony from a previous World Trade
State/Federal Committee meeting (3/23/95). Dr. Smith urged
passage of the Resolution.
PAUL FUHS, spoke in favor of HJR 39, stating that he had no
changes to make to the legislation. He hoped the legislature
would be able to act on the Resolution this session.
REPRESENTATIVE GARY DAVIS informed the committee that he would
confer with his committee to waive HJR 39 from the House
Transportation Committee.
REPRESENTATIVE BILL WILLIAMS arrived at 5:17 p.m.
REPRESENTATIVE RAMONA BARNES noted that with Representative
Williams presence, a quorum had been satisfied.
REPRESENTATIVE GENE KUBINA made a motion to move HJR 39 out of
committee with individual recommendations.
CHAIRMAN BARNES asked if there were any objections. Hearing
none, the motion passed out of the Special Committee on World
Trade and State/Federal Relations.
HJR 31 - ENDORSE FEDERAL FLAT INCOME TAX
REPRESENTATIVE JEANNETTE JAMES, sponsor of the Resolution, stated
the current federal Internal Revenue Code is characterized by
loopholes, exceptions, exemptions, complicated schedules, and
targeted tax breaks, which makes it difficult for the taxpayer to
calculate the tax obligation due. Thus, there is a real need to
replace the current system with one that is fairer and simpler.
This Resolution calls for the United States Congress to enact
legislation replacing the current IRS tax code with a fixed-rate
or "flat" tax. This will create a tax system that is less
difficult to comply with and tax all income once. A "flat" tax
would also exclude from the definition of taxable income the
earnings from personal and business savings, encouraging
individuals and families to save and invest a portion of their
incomes.
REPRESENTATIVE KUBINA asked if this would exempt all savings from
taxation. A scenario would be that people who earn millions each
year could place huge sums of money into personal savings and
thus escape being taxed.
REPRESENTATIVE JAMES said that it was the intent of the measure
to help the struggling and average income families who had
scrimped and saved all year long and then be penalized by taxes.
The current system does not work. She added that the "devil of
this Resolution is in the details," referring to the fact that
the millionaires and billionaires of this country would find ways
around this measure.
REPRESENTATIVE KUBINA suggested that deleting lines 14-16 on page
1, would tighten up the language and intent of the Resolution.
REPRESENTATIVE JAMES supported the suggested change.
REPRESENTATIVE DAVIS suggested amending HJR 39 by changing
"would" on line 14, page 1 to "could".
REPRESENTATIVE JAMES said she would support any change that would
keep in tact where individuals would not have to pay a "penalty"
for savings.
REPRESENTATIVE KUBINA made a motion to delete lines 14-16.
CHAIRMAN BARNES asked if there were any objections. Hearing
none, the motion passed.
REPRESENTATIVE DAVIS asked what percent of Internal Revenue
Service would be eliminated by this Resolution.
REPRESENTATIVE JAMES was not certain of the total effect the
Internal Revenue Service would feel by this measure.
REPRESENTATIVE DAVIS made a motion to move CSHJR 31(WTR) out of
committee with individual recommendations.
CHAIRMAN BARNES asked if there were any objections. Hearing
none, the motion passed.
HJR 41 - JONES ACT EXEMPTION FOR BULK COMMODITIES
JACK PHELPS, Legislative Assistant to Representative Bill
Williams, stated that HJR 41 asks Congress to carve out of the
Jones Act an exemption for Alaska bulk commodities, thus allowing
Alaska coal suppliers to respond to new opportunities in the
world market for coal. There are currently no United States
manufactured vessels capable of servicing large scale movements
of Alaska coal. Therefore, a Jones Act exemption is an important
part of any effort to market Alaska coal, especially since the
effort is likely to include markets in the western United States
and Hawaii.
MR. PHELPS said that Alaska is the only state that is
discriminated against by the Jones Act. Under current
conditions, Alaska suppliers of coal will be noncompetitive with
Asian coal shipments to the United States ports, which harms both
Alaska and the United States balance of trade.
MR. PHELPS added that HJR 41 is consistent with state policy set
forth in Title 44 which requires the Governor to use "best
efforts and all available means to persuade the United States
Congress to repeal" the Jones Act.
THOMAS CRAFFORD, Manager, Minerals and Coal for Cook Inlet
Region, Inc., testified in support of HJR 41 and that he's always
looking into safe methods for shipping coal.
CHAIRMAN BARNES asked Mr. Crafford if he was familiar with the
Healy Coal Project. She said that a Hawaii market would be very
advantageous for Alaska.
MR. CRAFFORD responded by saying that he knew of the project, but
was not totally familiar with it.
REPRESENTATIVE DAVIS asked Mr. Crafford about the status of the
Beluga coal fields.
MR. CRAFFORD stated that no one had stepped forward to work these
fields. Coal is a much different commodity in terms of handling
and shipping. It's not like oil, where if a spill would occur,
it would leave a major impact on the environment.
REPRESENTATIVE DAVIS made a motion to pass HJR 41 out of
committee with individual recommendations.
CHAIRMAN BARNES asked if there were any objections. Hearing
none, the motion passed.
ADJOURNMENT
There being no further business to come before the House Special
Committee on World Trade and State/Federal Relations, CHAIRMAN
BARNES adjourned the meeting at 5:45 p.m.
| Document Name | Date/Time | Subjects |
|---|