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