Legislature(2011 - 2012)CAPITOL 120

03/25/2011 01:00 PM House JUDICIARY


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 171 ARRESTS FOR MISDEMEANORS TELECONFERENCED
Heard & Held
+ HJR 4 CONST. AM: TRANSPORTATION FUND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 23 COMPUTER PRIVACY TELECONFERENCED
Moved CSHB 23(JUD) Out of Committee
             HJR 4 - CONST. AM: TRANSPORTATION FUND                                                                         
                                                                                                                                
[Contains brief  mention of HB  30 and  HB 31, which  address the                                                               
funding and other necessary statutory  changes related to HJR 4's                                                               
proposed transportation infrastructure fund.]                                                                                   
                                                                                                                                
2:13:25 PM                                                                                                                    
                                                                                                                                
CHAIR GATTO announced  that the final order of  business would be                                                               
HOUSE  JOINT  RESOLUTION  NO.  4,  Proposing  amendments  to  the                                                               
Constitution  of the  State of  Alaska creating  a transportation                                                               
infrastructure fund.  [Before the committee was CSHJR 4(TRA).]                                                                  
                                                                                                                                
2:13:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON, Alaska State  Legislature, speaking                                                               
as one of the joint prime  sponsors, explained that [if passed by                                                               
the legislature,] HJR 4 would  place before the voters a proposed                                                               
amendment  to  the  Alaska   State  Constitution  establishing  a                                                               
dedicated fund -  in the form of  a transportation infrastructure                                                               
fund  -  that  would  be used  to  fund  Alaska's  transportation                                                               
projects.   In fiscal year  2010 (FY 10), 87 percent  of Alaska's                                                               
transportation budget  came from the federal  government, but the                                                               
current federal  reauthorization legislation has  already expired                                                               
and  been extended  many times,  and so  those federal  funds are                                                               
only   going  to   be  available   through  September   of  2011.                                                               
Furthermore,  the new  federal reauthorization  is rumored  to be                                                               
quite  a bit  smaller, and  is  considered to  be unfavorable  to                                                               
states  with  small  populations  due to  its  emphasis  on  mass                                                               
transit,   high-speed    rail,   and    "green"   transportation.                                                               
Therefore, as federal funding continues  to diminish, Alaska will                                                               
have   to  shoulder   more  financial   responsibility  for   its                                                               
transportation  infrastructure.     Investment  in   the  state's                                                               
transportation infrastructure  creates a  competitive environment                                                               
that  attracts additional  economic investments,  which translate                                                               
into jobs for Alaskans.  House  Joint Resolution 4 is intended to                                                               
provide for Alaska's ever-growing transportation needs.                                                                         
                                                                                                                                
REPRESENTATIVE  P. WILSON  noted  that over  the  last couple  of                                                               
years,  the  House  Transportation Standing  Committee  has  been                                                               
seeking   and  receiving   testimony  from   the  Department   of                                                               
Transportation   &   Public  Facilities   (DOT&PF),   "grassroots                                                               
organizations,"  and   transportation  companies   regarding  the                                                               
challenges  of  transportation  in   Alaska  resulting  from  its                                                               
geographical  diversity,   and  has   visited  rural   and  urban                                                               
communities across  the state, learning about  their airports and                                                               
basic  transportation infrastructures,  and  the challenges  they                                                               
face  regarding   safety,  [traffic]  congestion,   and  deferred                                                               
maintenance.  Furthermore, the Alaska  Municipal League (AML) and                                                               
the   Matanuska-Susitna   (MAT-SU)   Borough  arranged   for   an                                                               
independent   study  to   be  conducted   regarding  the   fiscal                                                               
challenges of  transportation; the  National Conference  of State                                                               
Legislatures  (NCSL) provided  information  regarding what  other                                                               
states are  doing to address  their transportation-infrastructure                                                               
budget gaps; and  the federal coordinator for  Alaska natural gas                                                               
transportation projects  provided a  list of all  funding options                                                               
available to address the fiscal shortfalls that Alaska's long-                                                                  
range transportation plan has outlined.                                                                                         
                                                                                                                                
REPRESENTATIVE P.  WILSON relayed that  HJR 4 is  the culmination                                                               
of all  that research, and  is not intended to  diminish Alaska's                                                               
relationship  with   the  federal   government.     Instead,  the                                                               
intention  is to  provide  for a  dedicated  revenue stream  that                                                               
would  allow more  transportation projects  to be  completed more                                                               
quickly and  for less money.   Alaska needs to take  advantage of                                                               
both  the   cost-  and  time-savings  afforded   by  state-funded                                                               
projects in order to address the state's growing transportation-                                                                
infrastructure  needs.    It is  anticipated  that  the  proposed                                                               
transportation  infrastructure  fund  would move  projects  along                                                               
much faster, from conception  to completion, because state-funded                                                               
projects do not  have to follow the  federal government's highly-                                                               
prescriptive and  lengthy procedures - which  are often expensive                                                               
and time consuming  - thereby allowing constituents  to enjoy the                                                               
benefits  of such  projects much  sooner.   For example,  because                                                               
state  funds  were  used  for the  Elmore  Road  extension,  that                                                               
project was  completed in less  than three years rather  than the                                                               
seven  to ten  years it  would have  taken had  following federal                                                               
procedures been required.                                                                                                       
                                                                                                                                
2:17:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   P.   WILSON    explained   that   the   proposed                                                               
transportation infrastructure  fund, in addition to  being seeded                                                               
with $1 billion and receiving  yearly revenue from Alaska's motor                                                               
fuel taxes,  vehicle registration  fees, studded tire  taxes, and                                                               
vehicle rental  taxes, would continue  to grow as  its investment                                                               
returns are  compounded.   Under HJR  4, in  any given  year, the                                                               
legislature  could appropriate  up to  50 percent  of its  yearly                                                               
revenue, and  up to 6 percent  of its market value  averaged over                                                               
the  previous five  fiscal  years.   According  to  a handout  in                                                               
members' packets  developed by the  Department of  Revenue (DOR),                                                               
the  proposed transportation  infrastructure fund  is anticipated                                                               
to generate  approximately $103  million the  first year,  and to                                                               
increase every  year after  that by between  $3 million  and $3.5                                                               
million.    The  legislature  would   use  the  same  process  to                                                               
appropriate  money from  the fund  as it  currently uses  for the                                                               
capital budget.                                                                                                                 
                                                                                                                                
REPRESENTATIVE P.  WILSON indicated  that there are  three pieces                                                               
of legislation  that together would  enable the  establishment of                                                               
the proposed  transportation infrastructure  fund:  [HJR  4 would                                                               
place  the  proposed  change to  the  Alaska  State  Constitution                                                               
before the voters,  HB 31 would provide for  the appropriation of                                                               
the initial $1  billion to the fund, and HB  30 would provide the                                                               
other  necessary statutory  changes].   As currently  outlined in                                                               
the legislation, appropriations  from the proposed transportation                                                               
infrastructure fund could be  used for any transportation-related                                                               
needs  such as  capital projects  and large  deferred-maintenance                                                               
projects.  And  should the legislature later choose  to, it could                                                               
make further statutory changes such  that appropriations from the                                                               
fund could also  be used for DOT&PF  operations, thereby ensuring                                                               
that the legislature has the  flexibility to use the appropriated                                                               
funds as it sees fit.                                                                                                           
                                                                                                                                
2:20:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  relayed  that  those who've  testified                                                               
before the House Transportation  Standing Committee on this issue                                                               
agree that the  state needs a reliable revenue  stream that won't                                                               
fluctuate  from year  to year,  and  proffered that  HJR 4  would                                                               
provide just that; with such  a reliable revenue stream in place,                                                               
the state would  be able to implement a  transportation plan that                                                               
would be  independent from the  federal government.   Historians,                                                               
she  proffered,  write that  the  drafters  of the  Alaska  State                                                               
Constitution were  concerned that  providing for  dedicated funds                                                               
would  impair future  legislatures  from  responding to  evolving                                                               
public needs.  However,  24 states have constitutionally-required                                                               
dedicated  funds,   and  the  public  need   for  dependable  and                                                               
efficient transportation  has only  grown since the  Alaska State                                                               
Constitution was written.  She  offered her understanding that in                                                               
one  of his  speeches, former  Governor Hickel  indicated support                                                               
for the Alaska State Constitution  being changed to provide for a                                                               
dedicated transportation fund.                                                                                                  
                                                                                                                                
REPRESENTATIVE P. WILSON  went on to explain that  under a change                                                               
made  by   the  prior  committee,  the   proposed  transportation                                                               
infrastructure  fund  would  no   longer  include  revenues  from                                                               
[airport leases] due to a  federal requirement that such revenues                                                               
be returned to the airports they were collected from.                                                                           
                                                                                                                                
[Chair Gatto turned the gavel over to Representative Keller.]                                                                   
                                                                                                                                
REPRESENTATIVE P. WILSON mentioned  that members' packets include                                                               
a  list of  those who  support  HJR 4  and would  be seeking  its                                                               
passage in  the November 2012  general election.   In conclusion,                                                               
she opined  that Alaska must  provide for and maintain  a modern,                                                               
reliable transportation  system in  order to ensure  the economic                                                               
and   social   wellbeing   of  its   citizens,   and   that   the                                                               
constitutional change  provided for  via HJR  4 -  establishing a                                                               
dedicated transportation fund - would  allow the state to do just                                                               
that.                                                                                                                           
                                                                                                                                
REPRESENTATIVE HOLMES  - referring to  language on page  1, lines                                                               
14-15,  of  HJR  4  regarding  aviation  fuel  taxes,  and  to  a                                                               
memorandum  by  Legislative  Legal and  Research  Services  dated                                                               
February 25, 2011,  [commenting on federal law as  it pertains to                                                               
such   taxes]  -   questioned  whether,   if  HJR   4's  proposed                                                               
constitutional  change  is approved  by  the  voters, any  future                                                               
changes  to  Alaska's  aviation   fuel  taxes  would  require  an                                                               
additional constitutional change.                                                                                               
                                                                                                                                
[Representative Keller returned the gavel to Chair Gatto.]                                                                      
                                                                                                                                
2:25:24 PM                                                                                                                    
                                                                                                                                
BECKY ROONEY,  Staff, Representative  Peggy Wilson,  Alaska State                                                               
Legislature,  on  behalf  of Representative  P.  Wilson,  one  of                                                               
HJR 4's  joint  prime  sponsors,  offered  her  belief  that  any                                                               
changes the  legislature wishes to  make in the  future regarding                                                               
the appropriation of  aviation fuel taxes could  be addressed via                                                               
a statutory change  rather than via another change  to the Alaska                                                               
State  Constitution,  and  mentioned   that  under  current  law,                                                               
60 percent of aviation-fuel  tax revenue must be  refunded to the                                                               
municipality  responsible  for the  airport  from  which the  tax                                                               
revenue  came,   and  that  [the   aforementioned  HB   30  would                                                               
additionally  allow] a  portion  of the  appropriations from  the                                                               
proposed  transportation  infrastructure  fund  to  be  used  for                                                               
aviation-related projects.  In response  to another question, she                                                               
indicated that  use of the phrase,  "other transportation-related                                                               
fees  and  funds  designated  by  the  legislature"  on  page  2,                                                               
lines 2-3,  is   meant  to  provide  the   legislature  with  the                                                               
[constitutional]  flexibility  to  address such  fees  and  funds                                                               
should any be established in the future.                                                                                        
                                                                                                                                
REPRESENTATIVE  HOLMES surmised,  then, that  use of  the phrase,                                                               
"transportation  and related  facilities that  are designated  by                                                               
law" on page  2, lines 9-10, is meant to  provide the legislature                                                               
with   similar   [constitutional]  flexibility   regarding   what                                                               
appropriations  from the  proposed transportation  infrastructure                                                               
fund could be used for.                                                                                                         
                                                                                                                                
REPRESENTATIVE  P.  WILSON concurred.    In  response to  another                                                               
question, she ventured  that allowing for up to 6  percent of the                                                               
market value  of the proposed transportation  infrastructure fund                                                               
averaged over the  previous five fiscal years  to be additionally                                                               
appropriated  would  provide   the  legislature  with  sufficient                                                               
flexibility, and  pointed out that  the legislature  could choose                                                               
to appropriate less  than 6 percent.  In response  to a question,                                                               
she offered her understanding that  currently the fees referenced                                                               
in HJR 4 are deposited into the general fund (GF).                                                                              
                                                                                                                                
MS.  ROONEY  added that  under  HJR  4, appropriations  from  the                                                               
proposed  transportation infrastructure  fund could  be used  for                                                               
costs related  to motor vehicle  licensing and  registration that                                                               
are  designated by  law.   In response  to another  question, she                                                               
offered her understanding that under  [HB 30,] certain specialty-                                                               
license-plate  fees  would  be   exempt  from  inclusion  in  the                                                               
proposed transportation infrastructure fund.                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON,  in response  to  further  questions,                                                               
offered her  understanding that the  federal funding  of Alaska's                                                               
FY 10  transportation budget totaled approximately  $400 million,                                                               
and  explained  that under  [HB  30,  a 19-member  Transportation                                                               
Infrastructure Fund  Advisory Council] would be  established that                                                               
would  prioritize  eligible transportation-related  projects  and                                                               
then submit a  report to the governor and  the legislature making                                                               
recommendations regarding  which projects should  receive funding                                                               
from the proposed transportation infrastructure fund.                                                                           
                                                                                                                                
2:34:51 PM                                                                                                                    
                                                                                                                                
TOM BRICE, Alaska District Council  of Laborers, relayed that the                                                               
Alaska  District  Council of  Laborers  supports  HJR 4,  and  is                                                               
always interested  in ensuring long-term, stable  funding sources                                                               
for Alaska's  transportation projects,  viewing HJR  4 as  one of                                                               
the instruments that  would help accommodate such.   He concluded                                                               
by  saying   that  the  Alaska   District  Council   of  Laborers                                                               
encourages  the committee  to move  forward with  the resolution,                                                               
and looks  forward to  [promoting] the  adoption of  the proposed                                                               
constitutional change.                                                                                                          
                                                                                                                                
2:36:17 PM                                                                                                                    
                                                                                                                                
DON ETHERIDGE,  Lobbyist, Alaska American Federation  of Laborers                                                               
- Congress of Industrial  Organizations (Alaska AFL-CIO), relayed                                                               
that both the Alaska AFL-CIO  and the Teamsters Local 959 support                                                               
HJR  4, and  look  forward  to [promoting]  the  adoption of  the                                                               
proposed constitutional  change, adding that  he, himself -  as a                                                               
seasonal  maritime  captain -  supports  HJR  4, and  is  looking                                                               
forward  to having  something like  [the proposed  transportation                                                               
infrastructure  fund  in place]  to  help  out with  the  state's                                                               
harbor  needs,   particularly  given   the  atrocious   state  of                                                               
disrepair  some of  the harbors  are  in, and  given the  current                                                               
limitations of the "municipal grant fund."                                                                                      
                                                                                                                                
2:37:45 PM                                                                                                                    
                                                                                                                                
RON AXTELL,  Vice President,  Laborers' Local  341, said  that as                                                               
someone  who's worked  in  the "heavy  highway  sector" for  many                                                               
years,  he strongly  supports [HJR  4's] proposed  change to  the                                                               
Alaska   State   Constitution   establishing   a   transportation                                                               
infrastructure fund.  Regardless that  the state does its best to                                                               
maintain its  roads and highways,  Alaska will always  be lagging                                                               
behind  unless  it  can  find  a  way  to  fund  maintenance  and                                                               
development,  and the  recent receipt  of  American Recovery  and                                                               
Reinvestment Act of 2009 (ARRA)  monies illustrates the effect of                                                               
not having such  a funding plan in place, he  ventured.  Alaska's                                                               
major highways are  in terrible shape, with  rutting from studded                                                               
tires.    How  long  will  Alaskans have  to  wait  before  their                                                               
highways are repaired?   This, he opined, is just  one example of                                                               
the   many  problems   with   Alaska's  existing   transportation                                                               
infrastructure.   As  a young  Alaska moves  forward, it  will be                                                               
forced  to pick  up the  funding  burden as  the federal  deficit                                                               
grows  and federal  monies to  states decrease.   With  financial                                                               
uncertainty looming on Alaska's  horizon, not moving forward with                                                               
[HJR  4's]  proposed  constitutional amendment  could  very  well                                                               
produce a greater strain on future state budgets.                                                                               
                                                                                                                                
MR. AXTELL  offered his belief  that the  proposed transportation                                                               
infrastructure fund would help the  state resist the influence of                                                               
outside  organizations   that  would  prefer  Alaska   to  remain                                                               
undeveloped, and predicted that with  the establishment of such a                                                               
fund,  Alaska would  have  more control  over  which projects  to                                                               
proceed  with.    With  many jobs  and  businesses  reliant  upon                                                               
transportation  projects, completing  such projects  in a  timely                                                               
and  efficient manner  would be  a win-win  for everyone,  and it                                                               
would be  a large disappointment  for the  state to have  to tell                                                               
its  citizens that  it  would  like to  do  more development  and                                                               
improvement  but it  just  can't  seem to  find  the  money.   In                                                               
conclusion, he  asked the  committee to support  HJR 4  and bring                                                               
the proposed constitutional amendment before the voters.                                                                        
                                                                                                                                
2:40:24 PM                                                                                                                    
                                                                                                                                
KEVIN POMEROY,  Laborers Local  942, said he  supports HJR  4 and                                                               
agrees with  the sponsor that  Alaska isn't  going to be  able to                                                               
continue   relying  upon   federal  funding,   and  characterized                                                               
[HB 31's $1 billion  in seed money] as a  wonderful investment at                                                               
a  time when  the state  has a  little bit  of money  to spend  -                                                               
unlike some states in  the Lower 48.  Alaska is  going to have to                                                               
become more accountable with regard  to where it obtains funding,                                                               
particularly  given   that  because  Alaska  has   such  a  small                                                               
population,  other   states  are  more  likely   to  receive  any                                                               
available federal  funding.  For the  state to invest in  its own                                                               
development is a  great idea, he opined.   Consider, for example,                                                               
that   many   discussions   often    revolve   around   ways   to                                                               
enhance/promote tourism  and bring development to  the state, and                                                               
yet one of  the first things visitors to the  state see when they                                                               
arrive  is   the  condition  of   the  state's   airports,  ferry                                                               
terminals, and roadways  - Alaska's transportation infrastructure                                                               
- and  so it's important for  the state to be  able to illustrate                                                               
that  it's capable  of  taking care  of  its own  infrastructure,                                                               
which, in  addition to  promoting development,  is used  daily by                                                               
Alaskans for a variety of  reasons.  In conclusion, he reiterated                                                               
his support for HJR 4.                                                                                                          
                                                                                                                                
CHAIR  GATTO,  after ascertaining  that  no  one else  wished  to                                                               
testify on  the resolution, closed public  testimony, and relayed                                                               
that HJR 4 would be held over.                                                                                                  

Document Name Date/Time Subjects
HB171 Sponsor Statement 03-11-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Version B 02-25-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Fiscal Note-DOA-PDA 03-24-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Fiscal Note-DOC-OC 03-19-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Fiscal Note-DPS-DET 03-07-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Fiscal Note-LAW-CRIM 03-25-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Supporting Documents-Letter APOA 03-09-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Supporting Documents-Letters 03-09-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Supporting Documents-Opinion DOL 02-07-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Supporting Documents-Opinion Texas AG.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB171 Supporting Documents-Report Leg Research 10-07-10.pdf HJUD 3/25/2011 1:00:00 PM
HB 171
HB23 CS Version E 03-24-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 23
HB23 Explanation of Changes Version B to E 03-25-11.pdf HJUD 3/25/2011 1:00:00 PM
HB 23
HJR4 Sponsor Statement Version D 03-11-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 CS(TRA) Version D 03-09-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Fiscal Note-DOR-TRS 03-18-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Fiscal Note-OOG-DOE 02-11-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Email Steve Sorensen 02-14-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter AML 2011.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter Business Advocacy Committee 02-09-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter Harbormasters 02-14-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter Miners 01-2011.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter Mobility Coalition 02-15-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Letter State Chamber 02-13-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Opinion Legal Services 02-25-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Report Persily 09-28-09.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Resolution MSB 02-23-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4
HJR4 Supporting Documents-Table ATIF Payout 03-25-11.pdf HJUD 3/25/2011 1:00:00 PM
HJR 4