Legislature(2017 - 2018)BARNES 124
02/21/2017 01:30 PM House TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB60 | |
| HB131 | |
| HB117 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 60 | TELECONFERENCED | |
| *+ | HB 131 | TELECONFERENCED | |
| *+ | HB 117 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 60-MOTOR FUEL TAX;TRANSPORTATION MAINT. FUND
1:34:05 PM
CO-CHAIR WOOL announced that the first order of business would
be HOUSE BILL NO. 60, "An Act relating to the motor fuel tax;
relating to the disposition of revenue from the motor fuel tax;
relating to a transportation maintenance fund; and providing for
an effective date."
1:34:30 PM
CO-CHAIR STUTES moved to adopt the proposed committee substitute
(CS) for HB 60, Version 30-GH1794\D, Nauman, 2/20/17, as a
working document. There being no objection, Version D was
before the committee.
1:35:07 PM
LAURA STIDOLPH, Staff to Representative Adam Wool, Alaska State
Legislature, discussed changes to HB 60 proposed under Version
D. She said that the first change is in the title on page 1,
line 2, and it inserts "establishing" after "fuel tax". She
explained that the change in the title makes it clear that the
Transportation Maintenance Fund ("the fund") is being
established under HB 60. Ms. Stidolph continued that Section 1
is new and it is legislative intent language that clarifies that
each subaccount of the fund (motor fuel, aviation/jet fuel, and
marine fuel) be used specifically for infrastructure and
expenses related to each user group. She explained that Co-
Chairs Wool and Stutes wanted the intent of this bill to be
clear to ensure that all revenue generated would be used to
improve roads, highways, harbors, ports, airports, and ferries.
MS. STIDOLPH explained that the next five changes were made to
Sections 7, 8, 9, 10, and 11 to ensure funds cannot be used for
anything other than that which they are specified. She declared
that funds do not lapse and remain available for the next fiscal
year. She explained the intent for this was so the Department
of Transportation & Public Facilities (DOT&PF) would have to
build and maintain infrastructure for each user group being
taxed.
1:37:09 PM
MATT GRUENING, Staff, Representative Louise Stutes, Alaska State
Legislature, stated that the language in Section 12, page 6,
lines 26-27, of Version D was added to allow an exemption for
commercial fishing watercraft. He noted that a mistake in
drafting Version D resulted in the use of the term "commercial
watercraft"; the correct term should be ["watercraft engaged in
commercial fishing"]. He explained the reason for the exemption
was because a fisheries tax would be forthcoming next year, and
commercial fishermen are a user group that would be double hit
by both the fuel tax increase and the upcoming fisheries tax.
Mr. Gruening explained the reason for specifying that the
watercraft are engaged in commercial fishing is so that barges
and cruise ships would not be included in the exemption. He
said that although commercial fisherman would be eligible for a
three-cent rebate, they would still have an overall increase.
He clarified that the user group currently pays five cents per
gallon, under the proposed legislation that amount would be
doubled to [10 cents], and then with the rebate commercial
fisherman would be paying seven cents per gallon in fuel tax.
1:38:30 PM
REPRESENTATIVE NEUMAN offered his understanding that it is the
intent to carve out a special reduction for commercial fishing
watercraft.
MR. GRUENING answered that is correct.
REPRESENTATIVE NEUMAN inquired whether a licensed and registered
sport guide who used their boat professionally would qualify for
the exemption.
MR. GRUENING explained that currently the term "commercial
watercraft" or "commercial fishing watercraft" are not defined
in HB 60 or in statute. He indicated that a forthcoming
amendment to Version D would clarify the terminology.
1:39:46 PM
MR. GRUENING continued with the sectional analysis. He said
that Section 13, page 7, lines 6-8 is another reference to the
three-cent rebate for what is supposed to be commercial fishing
marine fuel. Mr. Gruening pointed out that the most substantive
change is in Section 19, on page 8, line 16, of Version D, which
would change the effective date from 2018 to 2019. He noted
that Co-Chairs Wool and Stutes feel that a year break in
administering the tax increase is necessary to provide a little
relief to allow industry time to adapt.
REPRESENTATIVE NEUMAN mentioned that the committee had heard
from the department about motor fuel tax revenue going back to
different user groups. He inquired how the state would keep
track of the taxes generated by each user group. He also wanted
to know how the state would ensure revenues are equitably
allocated to maintain infrastructure for the proper user group.
Representative Neuman asked specifically about "snow machine"
operators in the Matanuska-Susitna (Mat-Su) Borough and how the
state would ensure the revenue generated from off-road fuel
purchases would be used on trail maintenance.
MR. GRUENING shared that under Alaska State Constitution, funds
cannot really be dedicated. He clarified that there is no real
mechanism to ensure funds are allocated for use on
infrastructure for the proper user group. He noted that one of
the reasons for the inclusion of the intent language in Version
D is to show the sponsor's attempt to do the most possible to
suggest that funds be used for their intended purposes. Mr.
Gruening added that the bill sponsors did not specifically
address the off-road [vehicle] use in the tightening of the
sections in Version D.
REPRESENTATIVE NEUMAN offered his understanding that there is
already language in statute suggesting that the money go back to
where it is collected. He asked whether there is currently any
money that goes back into trails from what is collected from all
of the people that buy fuel for all-terrain vehicles (ATVs).
CO-CHAIR WOOL stated that right now off-road vehicles are
eligible for a rebate. He explained that currently users
purchasing fuel for heavy equipment, four wheelers, or snow
machines have to fill out the paperwork and turn it into the
state. Co-Chair Wool noted that under the current fuel tax
structure, as well as the proposed legislation, there are no
funds allocated for trails. He offered his understanding that
there is a current suggested designation for licensing fees from
snow machines to go back into trails. He added that there is a
rumor the funds were not used for trails.
REPRESENTATIVE NEUMAN suggested that the committee could work on
something to help designate funds from off-road vehicle fuel
purchases to go toward maintenance. He shared his belief that
Governor Walker vetoed $250 thousand from the Snowmobile Trails
Advisory Council (SnowTRAC) fund in 2016. Representative Neuman
shared that he would like the bill to ensure the various user
groups feel comfortable knowing the taxes paid go back to the
reason why the taxes were propagated in the first place. He
provided his recollection that the federal government gives the
state money back from federal gasoline taxes collected.
Representative Neuman questioned whether any of that money went
back toward trails.
1:44:52 PM
REPRESENTATIVE SULLIVAN-LEONARD stated that she had Legislative
Legal Services draft an opinion in regard to designated funds.
She shared her opinion that as much as Version D looks to
tighten the allocation of funds, "the true nature of designated
funds still are not truly designated for any particular
purpose." She asked how it could be ensured that, for example,
the Alaska Marine Highway System (AMHS) wouldn't be allowed to
pull funds over from motor fuel. Representative Sullivan-
Leonard offered that she still had concerns because there is no
true mechanism to allow funds to stay in one particular area.
MR. GRUENING described that there are dedicated funds and
designated funds. He noted that there is no way to dedicate
funds for a specific purpose, but future legislators do look at
legislative intent as a guide to follow. Mr. Gruening added
that commitments from the department and the administration can
be secured to help bolster intent language. He said that the
more intent that can be put into legislation the easier it is
for future committees to look at and see what the committee was
thinking.
CO-CHAIR WOOL stated that amendments to Version D would be
accepted [until] tomorrow at 3 p.m.
[HB 60 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB60 OMB Response 2.15.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 60 |
| HB131 ver D.PDF |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB131 Sponsor Statement.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB131 Fiscal Note DOT-DES 2.17.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB117 v D 2.13.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 Sponsor Statement 02.20.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 Fiscal Note DOT 02.19.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 1% for Art Q&A.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| SB3 Supporting Document - ASCA Letter 2.6.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
SB 3 |
| CSHB60 (TRA) ver D Work Draft.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 60 |