HB 63 - MOTOR FUEL TAX EXEMPTION Number 0025 CHAIRMAN KOTT announced the committee would address HB 63, "An Act extending the motor fuel tax exemption for fuel sold for use in jet propulsion aircraft to fuel used in those aircraft for flights that continue from a foreign country; and providing for an effective date." He asked for a motion to rescind the action of moving out of committee HB 63(RLS), Version R. Number 0070 REPRESENTATIVE GAIL PHILLIPS moved that the Rules Committee reconsider action in passing out HB 63(RLS), so that the committee may bring the bill back before the members. CHAIRMAN KOTT said, "For a clearer motion, I suspect that still leaves a rescinding motion available." Number 0096 REPRESENTATIVE KIM ELTON objected to Representative Phillips' motion. He asked for a description of why the bill needs to be back before the committee. REPRESENTATIVE PHILLIPS indicated there is a need for another amendment. CHAIRMAN KOTT informed the committee that the amendment is contained in Version T of HB 63. He noted he understands there is also another amendment that will be introduced. REPRESENTATIVE PHILLIPS pointed out that the committee can't do anything until the bill is before the committee. Number 0140 REPRESENTATIVE ELTON removed his objection. CHAIRMAN KOTT said there is a motion to reconsider the action of the committee on CSHB 63(RLS). He asked if there was an objection. Hearing none, CSHB 63(RLS), as amended, Version R, was before the committee. Number 0201 REPRESENTATIVE BRIAN PORTER asked if there needs to be a motion to adopt Version R. CHAIRMAN KOTT indicated the committee had already adopted Version R which was the version that was moved from the committee. He said Version R is now again before the committee. REPRESENTATIVE PORTER asked if there is a need to adopt Version T. CHAIRMAN KOTT said, "I think we'll withhold that motion pending the sponsor's staff introduction of a new amendment that may be relevant to Version R." Number 0237 NANCY KELLY, Administrative Assistant to Representative Gene Therriault, Alaska State Legislature, came before the committee. CHAIRMAN KOTT asked Ms. Kelly if she has copies of the proposed amendment. MS. KELLY responded in the affirmative and gave the committee members a copy. Number 0245 CHAIRMAN KOTT called for an at-ease at 5:18 p.m. The meeting was called back to order at 5:22 p.m. REPRESENTATIVE PHILLIPS suggested that staff review the proposed amendment to make sure everything is in order. She suggested not taking action. Number 0303 CHAIRMAN KOTT asked Ms. Kelly to explain the amendment. MS. KELLY explained the amendment was an earlier amendment dated 4/22/97, Version P.8. She said some of the language of the amendment was rewritten. The amendment is similar to Version P.8, except for a couple of changes. She said Section 2(A) was slightly changed. Ms. Kelly said, "Section (A)2, (3) are the same. Section (B) is almost the same except for one change. In Section (C), we added `a resident worker', where it states `resident.' Everything else basically is the same all the way down through line 16 on page 3 of that amendment - P.8 except for a slight change in wording on line 17 of our amendment. We also deleted the last section, page 3, lines 17 through 22, due to constitutionality. We had received a partial opinion from Jack Chenoweth, the drafter, as far as the constitutionality of some of the terms in that amendment, dated 4/22. He is working on a complete one for us addressing all the issues in it. I do have copies of that if you'd like to have that. And so that's why we redrafted some of the wording to make it doable. Mr. Chenoweth stated to Representative Therriault this morning that the deletion on the nonseverability clause is applicable because -- and the Representative was concerned about an outside firm being able to come in and -- it would allow an outside firm to come in and sue and win on a case against a local firm. Mr. Chenoweth agrees with that idea which is why we deleted that nonseverability issue. Representative Therriault is, of course, all for local hire. He just wanted to insert some language that would be usable for the refineries to the original amendment. Hopefully, he'll explain it to you." Number 0580 REPRESENTATIVE PORTER referred to page 2, lines 12 and 13... MS. KELLY interjected that the entire amendment was for Version R, as they have not received a copy of Version T. REPRESENTATIVE PORTER said, "Section 2 of the amendment just obliterated that whole section, but now you're amending it, so something is wrong." He pointed out that if it starts on page 2, line 6, you would have eliminated Section 2 of Version T. He said you can't eliminate it then amend it. MS. KELLY said she was initially addressing Version R as she hasn't seen Version T. REPRESENTATIVE PORTER apologized and noted he was referring to Version R. Number 0677 REPRESENTATIVE ELTON said Section 2 of Version R would become the new Section 3. MS. KELLY added that it would have to be renumbered. Number 0721 REPRESENTATIVE ELTON agreed with Representative Phillips in that the committee needs time to review the amendment. He said, "I think both this amendment to Version R and the new Version of T are trying to accomplish the same thing and I think there are a couple of places in which the wording is a little bit different." Representative Elton said he needs time to decide which version is best. Number 0722 REPRESENTATIVE BILL WILLIAMS said Mr. Chenoweth drafted both versions of the bill and suggested that he explain the bills. Number 0812 CHAIRMAN KOTT said it is his intent to hold the bill over until the following day. He asked the committee to put Version T aside and work with Version R. He noted staff would try and fit in Amendment P.10 into Version R. REPRESENTATIVE PORTER said he would like to understand what the amendment does that is before the committee. Number 0885 MS. KELLY said it specifically addresses the issue of local hire. It sets up some provisions for a refiner, if a refiner chooses to expand... REPRESENTATIVE PORTER said he would like the explanation when the committee meets again on the bill. MS. KELLY indicated she would provide the explanation at the next hearing on the bill. She said if the committee prefers, the amendment could be rolled into a proposed committee substitute. CHAIRMAN KOTT said the committee would work on that once it is determined that there are similarities between the original version, the amendment and committee substitute. CHAIRMAN KOTT indicated HB 63 would be held until the following day.