HB 58 - OIL & GAS AUDITS                                                                                                      
                                                                                                                                
CHAIRMAN KOTT announced that the  final order of business would be                                                              
HOUSE BILL  NO. 58, "An Act  relating to certain  audits regarding                                                              
oil and gas royalty and net profits  and to audits regarding costs                                                              
relating  to  exploration  incentive   credits  and  oil  and  gas                                                              
exploration licenses; and providing for an effective date."                                                                     
                                                                                                                                
Number 0342                                                                                                                     
                                                                                                                                
CAROL  CARROLL,  Director,  Central Office,  Division  of  Support                                                              
Services,  Department  of  Natural   Resources,  came  forward  to                                                              
explain  HB  58.    She  advised  members  that  the  bill  simply                                                              
transfers  some  oil  and  gas auditors  from  the  Department  of                                                              
Revenue  back  to  the Department  of  Natural  Resources.    Both                                                              
departments  agree  this should  be  done,  and it  will  increase                                                              
efficiency  and productivity.   She noted  that Mike Barnhill  was                                                              
present from the Department of Law to answer legal questions.                                                                   
                                                                                                                                
[End of tape 00-46; no testimony is missing.]                                                                                   
                                                                                                                                
TAPE 00-47, SIDE A                                                                                                              
                                                                                                                                
REPRESENTATIVE KERTTULA asked if  the written amendment in packets                                                              
was necessary to change the title.  That amendment read:                                                                        
                                                                                                                                
     Change title by adding the underlined                                                                                      
                                                                                                                                
     An Act relating to certain audits  regarding oil and gas                                                                   
     royalty and  net profits and  to audits regarding  costs                                                                   
     relating  to exploration incentive  credits and  oil and                                                                   
     gas   exploration   licenses;   repealing   the   notice                                                                 
     requirement for  the issuance of final  written findings                                                                 
     regarding  sale, lease,  or disposal  of an interest  in                                                                 
     state land  or resources for  oil and gas subject  to AS                                                                 
     38.05.180(b); and providing for an effective date.                                                                       
                                                                                                                                
     Add to page 4 line 28 the underlined                                                                                       
                                                                                                                                
     Sec.     7.      AS     38.05.036(d),      38.05.036(e),                                                                   
     38.05.945(a)(3)(B), and AS 43.05.010(15) are repealed.                                                                   
                                                                                                                                
MS. CARROLL answered that it is an  amendment from the department,                                                              
but she  didn't necessarily believe  it had to be  adopted because                                                              
HB 259,  which is  in this committee,  does the  same thing.   She                                                              
then advised members that since [HB  58] was introduced last year,                                                              
it has an  effective date of  1999 that, if the  committee wishes,                                                              
should be changed to 2000.                                                                                                      
                                                                                                                                
CHAIRMAN KOTT  noted that  his staff had  pointed that out  to him                                                              
earlier.    [It  was then  indicated  that  a  proposed  committee                                                              
substitute (CS)  had already been requested regarding  the updated                                                              
effective date.]                                                                                                                
                                                                                                                                
Number 0167                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JAMES  made  a  motion  to move  HB  58  from  the                                                              
committee with  individual recommendations  and the  attached zero                                                              
fiscal note.   There  being no  objection, it  was so ordered  and                                                              
[because of the  technical amendment changing the  effective date]                                                              
CSHB  58(JUD)   was  moved  from  the  House   Judiciary  Standing                                                              
Committee.