This last week the House passed HB 52 that helps to address residency issues that have come up in regards to the Alaska Permanent Fund Dividend. We hope to correct an unintended consequence from prior legislation that disallows our service men and women from being equally eligible for the PFD as our members of Congress. Once an Alaskan chooses to serve in the military, and is sworn into service, they do not have the option to choose to be physically present in Alaska. This bill will bring equality to those that serve our state and country.
Also last week we passed a bill to defend Alaskans’ constitutionally-protected right to keep and bear arms, proposing to make it a felony for any federal agent to enforce new federal gun laws in Alaska. House Bill 69, sponsored by Speaker of the House Mike Chenault, was filed in the wake of President Barack Obama’s recent executive orders and national debate on gun control. This bill is a very loud shout from the State of Alaska saying it’s time to stop the federal encroachments on states’ rights. We are tired of this slow and steady ripping away of our rights as a state. HB 69 amends the Alaska Firearm Freedom Act, which exempts firearms, accessories and ammunition manufactured in Alaska from all federal firearm control laws. This bill also adds language making any guns possessed in Alaska exempt, not just those made here.
The Resources Committee has been listening to presentations on the Oil & Gas Production Tax – HB 72 for the past several weeks. This bill is of extreme importance to every part of our state and it is imperative that we get it right. The issue of energy comes up in discussions with nearly every constituent that comes into my office. Although we, in Southeast Alaska, are certainly more blessed than most parts of the state in our costs of energy, we are dependent on the oil tax revenues from the oil companies in everything that touches our lives. We have had presentations and question and answer sessions by Department of Natural Resources, and the Department of Revenue, producers and explorers, consultants, attorneys and about everyone in between - or so it seems! We have been listening to testimony from the producers and explorers– both large and small. BP, ConocoPhillips, and ExxonMobil all shared their viewpoints and what they see as the pros and cons of the governors’ bill in comparison to the current ACES program. Brooks Range Petroleum, Pioneer Natural Resources & Armstrong Oil also gave us their thoughts on the pros and cons. We had a very interesting and informational presentation by an economist from the University of Alaska, Scott Goldsmith of ISER (which is a social, economic think tank at the university). We have also been reviewing the points that the Senate has determined need additional work. Between all of these perspectives we have to determine what will be in the best interests of the state in encouraging more production while also preserving our budgets that are oil dependent. We need a tax that is fair to Alaskans, encourages new production, is simple and balanced, and is competitive and durable. As you can imagine, there is a lot of work yet to be done.
One thing that many Alaskans may not realize is that the offshore energy development that occurs on the outer continental shelf (OCS), off the coast of Alaska, does not net Alaska any revenue sharing or share of the royalties from the federal government. Sharing a portion of the revenues from these offshore activities is a sensible policy and one that our Washington DC delegation is actively pursuing and one that we need to diligently watch. Alaska needs to get our fair share just like Louisiana, Texas and the other coastal states already do.
There will be no Peggy’s Corner next week - I look forward to speaking with you again the week of March 18th.
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