Legislature(2013 - 2014)BARNES 124

02/26/2013 01:00 PM House TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 109 NAMING MICHAEL WILEY BRIDGE TELECONFERENCED
Moved Out of Committee
*+ HJR 10 CONST. AM: TRANSPORTATION FUND TELECONFERENCED
Moved Out of Committee
*+ HB 123 DEDICATED TRANSPORT FUND/PUB TRANSPORT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
              HJR 10-CONST. AM: TRANSPORTATION FUND                                                                         
                [Contains discussion of HB 123.]                                                                                
                                                                                                                                
1:23:36 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR ISAACSON  announced that  the next  order of  business                                                              
would be  HOUSE JOINT RESOLUTION  NO. 10, Proposing  amendments to                                                              
the   Constitution   of   the   State   of   Alaska   creating   a                                                              
transportation infrastructure fund.                                                                                             
                                                                                                                                
1:23:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON, testifying as sponsor of  HJR 10, began                                                              
by  explaining  the  reason  the state  should  create  an  Alaska                                                              
Transportation  Infrastructure Fund  (ATIF).   She stated  that in                                                              
FY  14, 79  percent  of Alaska's  transportation  funding will  be                                                              
derived  from the  federal government,  which is  reduced from  84                                                              
percent  of federal  funding for  transportation  in FY  10.   The                                                              
state  currently has  $20 billion  in  backlog for  transportation                                                              
projects  as  well   as  $700  million  in   deferred  maintenance                                                              
projects.   The state cannot even  keep up with  maintenance needs                                                              
let alone its  other transportation needs.  She  reported that the                                                              
federal government  has passed  a new  two-year highway  bill, MAP                                                              
21.   The  overall  federal funding  remains  consistent with  the                                                              
Federal   Highway  Administration's   (FHWA)  Safe,   Accountable,                                                              
Flexible,  Efficient  Transportation  Equity  Act:  A  Legacy  for                                                              
Users  (SAFETEA-LU) funding;  however,  funding for  roads not  on                                                              
the national highway  program has been cut by 50  percent.  Alaska                                                              
only has eight roads  on the national highway program  - the least                                                              
in the  nation - which  means that  Alaska will see  substantially                                                              
less  funding for  borough or  city roads,  she said.   This  will                                                              
happen  since categories  of  funding have  been  reduced and  the                                                              
FHWA  is  much more  restrictive  than  in  the  past.   In  fact,                                                              
Alaska's U.S.  Congressional delegation  has told the  legislature                                                              
that  Alaska needs  to rely  less  on the  federal government  and                                                              
should  start shouldering  some  of the  burden  of improving  its                                                              
transportation   infrastructure.     Federal   funding  has   been                                                              
diminishing  in  many  other  areas,  which  translates  into  the                                                              
general  fund dollars  also shrinking,  making every  department's                                                              
portion  less, as  well.   This resolution  is  about meeting  the                                                              
ever  growing transportation  needs.   She asked  how Alaska  will                                                              
keep  up when  it  cannot even  keep  up with  its  transportation                                                              
maintenance, let alone financing new roads.                                                                                     
                                                                                                                                
1:26:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON related  that over  the past  four years                                                              
this  transportation   committee  has  listened  to   the  DOT&PF,                                                              
grassroots   organizations,   and  transportation   companies   to                                                              
identify challenges  in transportation in Alaska's  geographically                                                              
diverse state.   This  committee traveled  to villages  and viewed                                                              
rural  airports  and  rode  Alaska's urban  highways  to  see  the                                                              
challenges  with  respect  to  safety  and  deferred  maintenance.                                                              
This committee  heard from the  Alaska Municipal League  (AML) and                                                              
the Matanuska-Susitna  Borough (MSB), who have teamed  together to                                                              
contract  an  independent  study   on  the  fiscal  challenges  of                                                              
transportation.    This  committee  has heard  from  the  National                                                              
Conference of  State Legislatures  (NCSL) to hear  solutions other                                                              
states   have   implemented  to   address   their   transportation                                                              
problems.     She  pointed   out  that   Larry  Persily,   Federal                                                              
Coordinator for  Alaska Natural  Gas Transportation Projects,  has                                                              
put  together a  list of  all the  transportation funding  options                                                              
available  to address  the  fiscal shortfalls  of  our long  range                                                              
transportation  plan and  his list  is in members'  packets.   The                                                              
culmination  of all  those hours  of  committee hearings,  travel,                                                              
and research has resulted in a three-part solution.                                                                             
                                                                                                                                
1:27:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P.  WILSON  summarized the  three  part  solution:                                                              
One,   the    legislature   should    reinstate   the    dedicated                                                              
transportation   fund;   in   other    words   pass   the   Alaska                                                              
Transportation Infrastructure  Fund.  Two, the  legislature should                                                              
maintain Alaska's  existing transportation funding  by maintaining                                                              
its  operational  and  capital budget  and  address  the  deferred                                                              
maintenance backlog.   Three, the  DOT&PF should execute  more 100                                                              
percent  state-funded projects  rather than  using federal  funds.                                                              
She clarified  that state-funded  projects do  not have  to follow                                                              
the   highly    constrictive   and    lengthy   Federal    Highway                                                              
Administration  (FHWA) procedures  which are  often expensive  and                                                              
time   consuming.      With   state-funded    projects,   Alaska's                                                              
constituents  will see the  direct benefits.   For example,  state                                                              
funds  were  used  to  construct  the  Elmore  Road  extension  in                                                              
Anchorage,  which was  completed in  three years  rather than  the                                                              
ten  years it  normally  would have  taken  under federal  funding                                                              
processes [FHWA].   This  resolution, HJR 10,  is not  intended to                                                              
diminish  the state's  partnership  with the  federal  government,                                                              
but its goal is  to create a dedicated revenue  stream in addition                                                              
to  the capital  projects  to  provide for  transportation  needs.                                                              
She  emphasized  that  this  fund  is  not  intended  to  supplant                                                              
capital budget  funds.   Additionally, the ATIF  will grow  as the                                                              
investment returns on the fund compound.                                                                                        
                                                                                                                                
1:29:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  P. WILSON  related the  endowment would  initially                                                              
be seeded  with $2 billion  [in general  fund appropriation].   In                                                              
addition to the  investment returns of the endowment,  HJR 10 will                                                              
require  revenues   from  fuel  taxes,   the  Division   of  Motor                                                              
Vehicle's fees,  taxes on tires,  drivers' license fees,  fees for                                                              
identification cards,  and motor vehicle rental taxes  to feed the                                                              
fund.  The ATIF  can expect to generate approximately  $86 million                                                              
in  the first  year and  $133 million  the second  year, and  will                                                              
increase by about  $4 million each subsequent year.   She referred                                                              
to   a  spreadsheet   in  members'   packets   developed  by   the                                                              
Legislative  Finance  Division  that  estimates  the  [ATIF]  fund                                                              
balance  and the amount  that is  projected to  be available  each                                                              
year based on provisions of the enabling legislation.                                                                           
                                                                                                                                
1:30:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON said historians  have reported  that the                                                              
drafters of  Alaska's Constitution  were concerned that  dedicated                                                              
funds  would   impair  future  legislatures  from   responding  to                                                              
evolving public  needs.  Thus  the drafters created  two dedicated                                                              
funds:   one for  highways  and one for  water and  harbors.   The                                                              
public's need for  dependable and efficient  transportation hasn't                                                              
changed since  the constitution  was written;  instead, the  needs                                                              
have  only grown.   An  excerpt from  the  speech Governor  Hickel                                                              
gave for  his State of the  State address almost twenty  years ago                                                              
demonstrates that  a dedicated transportation  fund is not  such a                                                              
radical a  proposal to  consider.  She  quoted Governor  Hickel as                                                              
saying, "Over  half the  states already have  one.  Alaskans  will                                                              
receive  more  stable  service levels  with  a  dedicated  revenue                                                              
stream and  if new revenues are  needed, Alaskans will  be assured                                                              
that  any new  transportation  fees  will go  to  transportation."                                                              
She  urged members  that Alaska  needs to  take action  now.   The                                                              
future  of  the   economic  and  social  well-being   of  Alaska's                                                              
citizens  is critically  dependent  on a  reliable  transportation                                                              
system.   This  change  to  Alaska's  Constitution would  allow  a                                                              
reinstatement of  the dedicated transportation  fund is  needed to                                                              
create a  modern and  reliable transportation  system for  Alaska.                                                              
Transportation  investment   creates  a  competitive   environment                                                              
which would  attract additional  economic  investment to grow  the                                                              
general  fund, she  said.   This  resolution is  not the  enabling                                                              
statute that  will define how  the fund  will be managed,  how the                                                              
funds  will be  distributed, or  who  the funds  will receive  the                                                              
funds.   She concluded  by reminding  committee members  that this                                                              
resource, [the ATIF]  will allow the public to  vote on recreating                                                              
the ATIF.   She respectfully requested  the committee move  HJR 10                                                              
today.                                                                                                                          
                                                                                                                                
1:32:52 PM                                                                                                                    
                                                                                                                                
VICE  CHAIR  ISAACSON said  he  appreciated  the fact  that  Chair                                                              
Wilson has  been working on a  dedicated transportation and  he is                                                              
delighted to help  move HJR 10 forward.  He recalled  the Division                                                              
of  Motor Vehicles  (DMV) will  be funded  such that  it will  not                                                              
diminish   the   fund,  but   will   help  reduce   general   fund                                                              
expenditures.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  P.  WILSON responded  that  the DMV  currently  is                                                              
funded through  the receipts  it receives  and [the resolution  or                                                              
bill]  will  not change  the  funding  mechanism.   In  fact,  the                                                              
funding  mechanism  for fees  and  taxes already  designated  will                                                              
remain the  same, including  fees for  specialized license  plates                                                              
or airplane fuel taxes, she said.                                                                                               
                                                                                                                                
1:34:24 PM                                                                                                                    
                                                                                                                                
VICE CHAIR ISAACSON  understood [the ATIF] is not  just to provide                                                              
for maintenance  and operations  (M&O) but  will connect  Alaska's                                                              
communities to each other.                                                                                                      
                                                                                                                                
REPRESENTATIVE  P. WILSON agreed.   She  explained that  she hoped                                                              
[the  ATIF] would  make a  big difference  to the  economy of  the                                                              
state.   She offered  her belief  that Alaska  currently does  not                                                              
have enough  transportation  infrastructure in  the state.   Thus,                                                              
by  using  the  fund  she hoped  many  Roads  to  Resources  (R2R)                                                              
projects  would  be  finished  and  these  projects  will  connect                                                              
communities to one another.                                                                                                     
                                                                                                                                
VICE CHAIR  ISAACSON remarked  the ATIF  would also possibly  fund                                                              
Revised Statute 2477 rights-of-way trails (R.S. 2477).                                                                          
                                                                                                                                
1:35:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KREISS-TOMKINS asked  for  the legal  relationship                                                              
between  the  HJR  10  and  HB 123.    He  understood  HJR  10  is                                                              
necessary  for  the bill  to  take  place  and if  the  resolution                                                              
passes the  legislature and the voters,  the [ATIF] fund  would be                                                              
ready to go.                                                                                                                    
                                                                                                                                
REPRESENTATIVE P.  WILSON answered yes; but clarified  that HB 123                                                              
is the  enabling legislation  that provides  the framework  and HB
122 would appropriate the $2 billion into the endowment fund.                                                                   
                                                                                                                                
1:36:13 PM                                                                                                                    
                                                                                                                                
AVES THOMPSON,  Executive Director,  Alaska Trucking  Association,                                                              
Inc.  (ATA)  stated  that  the ATA  is  a  statewide  organization                                                              
representing  the interests  of its  nearly  200 member  companies                                                              
from  Barrow  to  Ketchikan.    He   said  that  freight  movement                                                              
represents a  large chunk of Alaska's  economy and impacts  all of                                                              
us each and every  day.  He also said, "The simple  truth is, that                                                              
if you got  it a truck brought  it."  One of ATA's  top priorities                                                              
is  to establish  a  state  transportation  fund to  invest  state                                                              
dollars in  our transportation systems.   Trucks rely on  the road                                                              
system  to deliver  the  goods to  ensure  a safe  and  productive                                                              
transportation   system  and   it  is  necessary   to  fund   road                                                              
improvements.                                                                                                                   
                                                                                                                                
MR.  THOMPSON  said  that  thousands   of  truck  drivers  are  on                                                              
Alaska's  highways every  day  and it's  important  to keep  their                                                              
workplace safe and  productive.  Thus ATA supports  a state funded                                                              
transportation  program that will  fund Alaska's highway  projects                                                              
over  and   above  current   capital  expenditure   levels.     He                                                              
understood  he ATIF  would  also allow  Alaska  to focus  Alaska's                                                              
federal dollars  on the National  Highway System (NHS)  in Alaska.                                                              
He  identified these  connecting  routes as  ones  that carry  the                                                              
most traffic  and freight on  highways in  Alaska.  The  state has                                                              
heard repeatedly  that the Federal Highway  Administration funding                                                              
(FHWA) will  be reduced in the  near future.  Alaska's  network of                                                              
highways  allow  for safe  and  efficient  movement of  more  than                                                              
62,000 tons  of freight each day  and Alaska needs to  continue to                                                              
provide  a reliable  and  predictable  funding stream  to  support                                                              
this system.   A number of mega  projects are on the  horizon that                                                              
will  require  a   dependable  system  of  freight   corridors  to                                                              
maintain  to  support and  maintain  the  flow of  equipment  that                                                              
Alaskans  will need.   The ATIF  will help  provide the  necessary                                                              
funding  for these roads  and highways  and will  help meet  local                                                              
project needs.  He  stated that HJR 10 will put  a vote before the                                                              
people to give  voters a chance to  decide on whether to  create a                                                              
dedicated  transportation  fund.   Transportation  user  fees  and                                                              
taxes  are much  easier to  pay when they  are used  to build  and                                                              
maintain Alaska's  highway system.   He concluded by  stating that                                                              
ATA  supports  HJR 10.    He  urged  the committee  to  move  this                                                              
resolution forward.                                                                                                             
                                                                                                                                
1:39:04 PM                                                                                                                    
                                                                                                                                
BARBARA HUFF TUCKNESS,  Director, Teamsters Local  959, stated the                                                              
Teamsters  Local 959 [Teamsters]  consists  of 7,000 members  that                                                              
strongly  support  HJR  10.   She  said  that  the  constitutional                                                              
amendment  is   long  overdue.     Additionally,  she   added  the                                                              
Teamster's support  for HB 123,  which ties the package  together.                                                              
She pointed out  that the Teamsters represent members  who work in                                                              
the  trucking industry,  and  other industries,  including  health                                                              
care,  mining,  and  telecommunications   with  the  exception  of                                                              
tourism and  fisheries.   She indicated  Alaska has experienced  a                                                              
lack  of  road  systems  and  timeliness  in  receiving  goods  is                                                              
important.  She stated  that some of you have had  my boss in your                                                              
office  and   heard  him   ask,  "When's   the  last  major   road                                                              
construction  project  that  you've  seen  in  the  state?"    She                                                              
recalled that  the answer goes back  to the Pogo mine  when former                                                              
Governor  Steve Cowper  was in office.   The  Teamsters hope  this                                                              
constitution  amendment will  move forward.   It  puts in place  a                                                              
system that  takes away  Alaska's dependence  on federal  funding.                                                              
She  suggested that  U.S. Congressman  Don Young  has worked  very                                                              
hard  to  secure  federal  funding  for  Alaska.    The  Teamsters                                                              
believe it's  time the state prepares  for its own needs.   Alaska                                                              
should  move   forward  with  its  own  transportation   projects,                                                              
whether  they are  new  roads or  maintenance  of existing  roads.                                                              
She reiterated  Representative P.  Wilson's plan for  cost savings                                                              
by  using state  dollars  on projects  instead  of federal  [FHWA]                                                              
dollars.   In fact, state dollars  have the ability to  go farther                                                              
than federal  funding since  Alaska doesn't  have the  constraints                                                              
attached  to its  funding  as does  federal  funding.   She  urged                                                              
members to support HJR 10.                                                                                                      
                                                                                                                                
1:42:20 PM                                                                                                                    
                                                                                                                                
JOHN   MACKINNON,    Executive   Director,   Associated    General                                                              
Contractors  of  Alaska (AGC-AK),  stated  that  the AGC-AK  is  a                                                              
construction  trade association  comprised  of  650 businesses  in                                                              
Alaska.   He related  that a  state-funded transportation  program                                                              
is an  essential element.   He said his  comments are  relevant to                                                              
both  HJR 10  and HB  123.   He thanked  Chair P.  Wilson for  her                                                              
support  and persistence  in pursuing  this effort.   He  recalled                                                              
this  is the  third or  fourth year  she has  pursued a  dedicated                                                              
transportation  fund.   He acknowledged  that Chair  Wilson is  as                                                              
passionate  about this  issue  as are  many  of his  members.   He                                                              
related  that  he   speaks  from  a  position   of  knowledge  and                                                              
experience.   He  previously served  as a  deputy commissioner  of                                                              
DOT&PF in  2003-2007 and  for the  past five  years has  served as                                                              
the  executive director  of  AGC-AK.   He related  he  has a  good                                                              
understanding of  the current transportation program,  the federal                                                              
program,  the  state  appropriation  process,  the  transportation                                                              
priorities, and problems  and needs of the state.   He highlighted                                                              
the  important  aspects  of  the ATIF,  including  that  it  would                                                              
provide  substantial  state  funding  to  adequately  address  the                                                              
needs   of  Alaska;   a  user  fee   program;   and  in  HB   123,                                                              
prioritization of  projects based on  need and not politics.   The                                                              
goal  of  a state-funded  program  is  to  increase the  level  of                                                              
funding for  transportation projects  to supplement the  declining                                                              
federal  program.    A regular  source  of  state  funding  allows                                                              
alternatives  to  the  federal program.    Prior  testifiers  have                                                              
indicated  state  dollars  go further  than  federal  dollars,  he                                                              
said.   He offered his  belief that this  is not an  exaggeration.                                                              
He  explained  that  the  DOT&PF  routinely  estimates  a  federal                                                              
dollar  being worth  about 75 cents  compared  to a state  dollar.                                                              
He offered his support for HJR 10 and HB 123.                                                                                   
                                                                                                                                
1:45:02 PM                                                                                                                    
                                                                                                                                
VICE CHAIR  ISAACSON, after first  determining no one  else wished                                                              
to testify, closed public testimony on HJR 10.                                                                                  
                                                                                                                                
1:45:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE moved  to  report HJR  10  out of  committee                                                              
with  individual  recommendations   and  the  accompanying  fiscal                                                              
note.   There being  no objection,  HJR 10  was reported  from the                                                              
House Transportation Standing Committee.                                                                                        
                                                                                                                                
VICE CHAIR ISAACSON returned the gavel to Chair P. Wilson.                                                                      

Document Name Date/Time Subjects
HB 109 letter of support Homer Electric Association.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 Michael G Wiley Bridge Background Material.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 Michael G Wiley Bridge Sponsor Statement.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 support letters.msg HTRA 2/26/2013 1:00:00 PM
HB 109
HJR010A.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 - Sponsor Stmt Ver U.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 Exec Summary AK Trans Finance Study.pdf HTRA 2/26/2013 1:00:00 PM
NCSL-AASHTO Alaska profile.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
NCSL-AASHTO Study EXEC-SUM.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB0123A.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB 123 -ATIF Sponsor Stmt Ver C.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB109-DOT-CRHA-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HJR010-OOG-DOE-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 AML 2013Priorities.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB 109 Support Letter CIAA.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HJR 10 Support LTR Union of Operating Eng.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB123-DCCED-DCRA-02-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DCCED-DED-02-23-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOA-DMV-2-23-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOR-TRS-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOT-PD-2-22-2013.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB 123 Persily Report.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HJR 10
ATIF_2-25-13 payout spreadsheet.pdf HTRA 2/26/2013 1:00:00 PM
HB 122
HB 123
HJR 10
HJR 10, HB 123
HJR 10 HB 122 123 AOPA support letter.pdf HTRA 2/26/2013 1:00:00 PM
HB 122
HB 123
HJR 10