05/05/1993 01:00 PM House FIN

  SB 198    An  Act   exempting  certain  activities   of  the                 
            Department of Transportation and Public Facilities                 
            from    the    regulation   provisions    of   the                 
            Administrative  Procedure  Act and  allowing other                 
            procedures for those activities; and providing for                 
            an effective date.                                                 
                                                                               
            SB  198  was reported  out  of Committee  with "no                 
            recommendation" and with a zero fiscal note by the                 
            Department  of Health  and  Social Services  dated                 
            4/18/93.                                                           
  SENATE BILL 198                                                              
                                                                               
       "An Act  exempting certain activities of the Department                 
       of  Transportation  and   Public  Facilities  from  the                 
       regulation provisions of  the Administrative  Procedure                 
       Act and allowing other procedures for those activities;                 
       and providing for an effective date."                                   
                                                                               
  BRUCE CAMPBELL, COMMISSIONER,  DEPARTMENT OF  TRANSPORTATION                 
  AND PUBLIC FACILITIES, stated based on the court decision in                 
  the  rural  airport  landing  fee  lawsuit,   Anchorage  and                 
  Fairbanks (FIA)  International Airports  may be  required to                 
  establish all fees  and fee  changes through the  regulatory                 
  process defined in the Administrative Procedures Act.                        
                                                                               
  AIA and FIA establish landing fees, terminal rent, and other                 
  airline  fees  through uniform  Airline  Operating Agreement                 
  formulas  negotiated  with  the  airlines  serving  the  two                 
  airports.                                                                    
                                                                               
  Representative Hoffman asked the  changes intended for rural                 
  airports.   Commissioner Campbell stated that those proposed                 
  regulations  have  been  discussed   in  the  Administrative                 
  Procedures Act.                                                              
                                                                               
  Representative Foster  provided the Committee with  a letter                 
                                                                               
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  from  Northern  Air  Cargo, Inc.  (NAC).    [Attachment #3].                 
  Commissioner  Campbell  replied  he  had  responded to  that                 
  letter addressing the word changes.   [Attachment #1 &  #2].                 
  He offered to  provide a "Letter  of Intent" addressing  the                 
  legislative enforcement.                                                     
                                                                               
  Representative Grussendorf asked if the proposed legislation                 
  was prepared because previous  DOTPF Commissioner's did  not                 
  follow  the Administrative  Procedures Act  and consequently                 
  were  sued.    Commissioner Campbell  replied  the  Attorney                 
  General  thought  the  legislation  was  necessary  or   the                 
  possibility  that the State  would be  subject to  law suits                 
  from   any   party  who   had   established  rates   at  the                 
  international   airports    under   previous    regulations.                 
  Representative    Grussendorf    pointed   out    that   the                 
  international airports would be exempt from the act.                         
                                                                               
  Commissioner Campbell noted there would be no increased fees                 
  resulting from the  implementation of  the legislation.   He                 
  added, the State  was sued because  it had not followed  the                 
  Administrative Procedures  Act.   Currently, no  one is  due                 
  money from the international airport.                                        
                                                                               
  Co-Chair MacLean asked if adequate  public hearings had been                 
  scheduled for the bill.  Commissioner Campbell replied there                 
  would be a new  newspaper add running for three  weeks prior                 
  to the  public hearings.   Representative  MacLean asked  if                 
  fees   would   be  established   for  the   rural  carriers.                 
  Commissioner Campbell  stated  the  legislation  would  only                 
  affect   the  international   airports   in  Anchorage   and                 
  Fairbanks.  He  added, the  Department could establish  fees                 
  under A.P.A.                                                                 
                                                                               
  Representative  Hoffman  asked   who  was  responsible   for                 
  establishing the fees.   Commissioner Campbell replied,  law                 
  defines that fees be set by order of the Commissioner.                       
                                                                               
  (Tape Change, HFC 93-129, Side 2).                                           
                                                                               
  MITCH GRAVO,  NORTHERN AIR  CARGO, INC.,  ANCHORAGE, ALASKA,                 
  commented  on  a   concern  in  the   legislation  regarding                 
  litigation  on  the  rural airports  and  the  authority the                 
  Commissioner is given.   He feared that persons  not subject                 
  to  litigation would have their rates  and fees increased to                 
  make  up  for  the decrease  resulting  from  the judgement.                 
  Commissioner Campbell explained the money paid in  judgments                 
  to  the  carriers   would  be   subject  to  a   legislative                 
  appropriation.                                                               
                                                                               
  Representative Brown questioned the relationship between the                 
  international and the rural airports finances.  Commissioner                 
  Campbell pointed out  they are separate.   The international                 
                                                                               
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  airports operate  from a  revolving fund,  with the  landing                 
  fees  and  the  charges  to   those  airports  pay  for  the                 
  operation.                                                                   
                                                                               
  Representative  Foster  MOVED  to  report   SB  198  out  of                 
  Committee   with   individual   recommendations    and   the                 
  accompanying fiscal note.  There being  NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  SB   198   was   reported   out   of  Committee   with   "no                 
  recommendation"  and  with   a  zero  fiscal  note   by  the                 
  Department  of Transportation  and  Public Facilities  dated                 
  4/18/93.