HOUSE FINANCE COMMITTEE July 28, 2008 4:21 p.m. CALL TO ORDER Vice-Chair Bill Stoltze called the House Finance Committee meeting to order at 4:21:36 PM. MEMBERS PRESENT Representative Bill Stoltze, Vice-Chair Representative Les Gara Representative Mike Hawker Representative Mike Kelly Representative Bill Thomas Jr. MEMBERS ABSENT Representative Mike Chenault, Co-Chair Representative Harry Crawford Representative Kevin Meyer, Co-Chair Representative Richard Foster Representative Reggie Joule Representative Mike Kelly Representative Mary Nelson ALSO PRESENT PRESENT VIA TELECONFERENCE Paul Vinsel, Executive Director, United Fishermen of Alaska; Paul D. Kendall, Anchorage; Jerry McCutcheon, Anchorage; Deborah Williams, President, Alaska Conservation Solutions. GENERAL SUBJECT(S): The following overview was taken in log note format. Handouts will be on file with the House Finance Committee through the 25th Legislative Session, contact 465-6814. After the 25th Legislative Session they will be available through the Legislative Library at 465-3808. HOUSE BILL NO. 4004 "An Act suspending the motor fuel tax; and providing for an effective date." TIME SPEAKER DISCUSSION  4:21:52 PM PAUL VINSEL Spoke in favor of HB 4004. He described EXECUTIVE DIR. SE Alaska Fishermen's Alliance petition UNITED which calls for emergency federal FISHERMEN OF income tax credit for the high cost of ALASKA (UFA) fuel so that fishermen could get out on the fishing grounds. There have been 1853 signatures.  4:25:50 PM Representative Testified to the high cost of fishing Thomas because of fuel costs and suggested taking the petition to local municipalities.  4:26:32 PM Mr. Vinsel He talked about taking the petitions to local municipalities.  4:26:41 PM Vice-Chair Suggested putting a moratorium on local Stoltze governments regarding fuel taxes to provide relief.  4:27:46 PM PAUL D. Suggested converting Alaskan KENDALL, infrastructure to all-electric, ANCHORAGE including electric vehicles. He spoke testified via about a summit meeting. He thought teleconference leadership was key. He spoke to the pipeline and AGIA and the need to move away from fossil fuels. He was opposed to HB 4004 as a short gap measure.  4:34:17 PM JERRY Spoke in opposition to HB 4004. He MCCUTCHEON, testified that there is not enough ANCHORAGE taxes to make a difference. It gives a testified via tax break to those who don't need it. teleconference It would mean undoing accounting systems. Finally, at some future date the state will want to reinstate the tax which will be expensive.  4:35:39 PM DEBORAH Testified in opposition to HB 4004. She WILLIAMS, thought the relief offered should PRESIDENT, benefit the consumers. She referred to ALASKA ACS documents delineating the reasons CONSERVATION they are opposed to the legislation (On SOLUTIONS File). ACS thought the situation was a testified via good opportunity to find more creative teleconferencesolutions. The quick fix will hurt , (ACS) Alaskans in the long run. She listed the six reasons the legislation would not lower the price of motor fuel to the full extent of the suspension: · Will not result in actually lowering prices for consumers. According to recent findings about doing a similar thing at the federal level, eliminating federal tax would only transfer revenue from the government to companies.  · Alaska already has the lowest prices in the country. · Will be politically difficult to reinstate the tax, which makes the suspension indefinite. · All vehicles impose wear and tear on infrastructure and ought to contribute to maintain it. · Taxes are collected from visitors; suspension would lose that income. · Eight cents represents only 1.7 percent of what consumers pay. Ms. Williams suggested other methods of saving the money.  4:44:55 PM Representative Noted how difficult it was to bring Gara back the state income tax once it was suspended. He thought that could be avoided by only suspending the tax when oil is over a certain amount per barrel.  4:46:30 PM Ms. Williams Thought that approach would be complex and awkward. She reiterated her concerns and urged energy conservation, energy efficiency, and renewable energy.  4:48:12 PM Vice-Chair Acknowledged that HB 4004 would not Stoltze save a lot of money but still thought it was a step in the right direction.  4:48:29 PM Representative Discussed a lottery for hybrid cars Thomas which would lower the carbon footprint.    4:49:24 PM RECESS  5:09:43 PM RECONVENE  ADJOURNMENT The meeting was adjourned at 5:09 PM.