Legislature(2003 - 2004)

05/18/2003 01:03 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
     CS FOR SENATE BILL NO. 112(TRA)                                                                                            
     "An Act  increasing the motor  fuel tax; repealing the  special                                                            
     tax  rates  on  blended  fuels; removing  the  motor  fuel  tax                                                            
     exemption  of the Alaska Railroad; relating to  tax refunds for                                                            
     government  agency  purchases  of fuel;  and providing  for  an                                                            
     effective date."                                                                                                           
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Co-Chair  Wilken stated  that this  bill would  "increase the  motor                                                            
fuel tax."  He indicated  a proposed committee  substitute,  Version                                                            
Co-Chair Green  moved for adoption  of CS SB 112, 23-GS1118\W,  as a                                                            
working draft.                                                                                                                  
Co-Chair Wilken objected for an explanation.                                                                                    
KEVIN    JARDELL,    Assistant    Commissioner,     Department    of                                                            
Administration,   testified   to  the  changes   in  the   committee                                                            
substitute. He  stated that the "uncontroversial portions  have been                                                            
removed". He spoke  to the request for proposals (rfp)  the Division                                                            
of Finance  issued for  credit cards  and the  provision that  those                                                            
credit  cards must  be authorized  for  use in purchasing  fuel.  He                                                            
indicated he  had elaborated on this  subject at a previous  hearing                                                            
and  stated  that  this  bill  was  chosen   as  the  "vehicle"  for                                                            
implementing  the intended  policy.  He remarked  that because  this                                                            
legislation  was not  progressing  through the  Legislature, it  was                                                            
determined  that the motor fuel tax  provisions would be  deleted to                                                            
allow consideration of  the credit card provision. He clarified that                                                            
only  language  pertaining  to  credit  cards is  contained  in  the                                                            
committee substitute.                                                                                                           
Senator Hoffman  opined that the committee  substitute is,  "a major                                                            
move in the right direction."                                                                                                   
There was no objection  and the committee substitute Version "W" was                                                            
ADOPTED as a working draft.                                                                                                     
Senator Taylor  offered a  motion to report  the CS SB 112,  Version                                                            
"W" from Committee  with individual recommendations  and forthcoming                                                            
fiscal notes.                                                                                                                   
Without objection  CS SB  112 (FIN) MOVED  from Committee with  zero                                                            
fiscal notes  dated 5/18/03  from the Department  of Administration                                                             
and the Department of Revenue.                                                                                                  
AT EASE 1:26 PM / 6:58 PM                                                                                                       

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