Legislature(1993 - 1994)

01/27/1994 03:35 PM Senate TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 CHAIRMAN SHARP brings up SB 256 INCREASE AVIATION FUEL TAX as the             
 only order of business before the Senate Transportation Committee             
 today.  The chairman calls the Commissioner of the Department of              
 Transportation & Public Facilities as the first witness.                      
                                                                               
                                                                               
 Number 020                                                                    
                                                                               
 BRUCE A. CAMPBELL, Commissioner, Department of Transportation &               
 Public Facilities (DOT), states the department began developing SB
 256 to help offset maintenance costs at rural airports.  Originally           
 DOT simply instituted regulations to charge landing fees at rural             
 airports, but some air carriers took the department to court, and             
 the court declared that the regulations had been improperly                   
 adopted.  So the regulations were declared null and void.                     
 Commissioner Campbell says he met with some of the air carriers in            
 Anchorage, and a compromise was reached in which the carriers                 
 stated they would support a minor increase in the fuel tax over               
 reinstituting landing fees at rural airports.  This is also                   
 preferable to Commissioner Campbell because it is difficult to                
 collect fees at some of the small, rural airports.                            
                                                                               
 Number 058                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Commissioner Campbell why the air                 
 carriers are opposed to landing fees.                                         
                                                                               
 Number 065                                                                    
                                                                               
 COMMISSIONER CAMPBELL replies that landing fees are difficult to              
 monitor and DOT would have to rely on the records kept by the air             
 carriers.  The air carriers with regularly scheduled flights had a            
 fear that less regular carriers would not keep very good records of           
 flights; as a result, the regular carriers would end up paying more           
 than their fair share.                                                        
                                                                               
 Number 071                                                                    
                                                                               
 SENATOR RANDY PHILLIPS asks Commissioner Campbell how much money              
 the landing fees would have generated.                                        
                                                                               
 Number 075                                                                    
                                                                               
 COMMISSIONER CAMPBELL responds that landing fees would have                   
 generated about 1.4 to 1.5 million dollars, while the slight                  
 increase in gas tax will generate about 1.7 million dollars.  The             
 slightly higher figure for a gas tax takes into account inflation.            
                                                                               
 Number 080                                                                    
                                                                               
 SENATOR RANDY PHILLIPS comments he does not like taxes but he sure            
 likes fees.                                                                   
                                                                               
 Number 083                                                                    
                                                                               
 CHAIRMAN SHARP asks Senator Kelly if he recalls when landing fees             
 were disallowed by the courts last year and fees had to be refunded           
 to the carriers, so the legislature was asked to look at another              
 approach.  Senator Kelly does not recall working on that.  The                
 chairman calls the next witness.                                              
                                                                               
 Number 092                                                                    
                                                                               
 REED STOOPS, representing the Alaska Air Carriers Assn., states the           
 Alaska Air Carriers Assn. has approximately 120 members and                   
 represents all the major carriers, most of the medium sized                   
 carriers, and even some of the small carriers.  The Alaska Air                
 Carriers Assn. supports SB 256.  The association prefers an                   
 increase in fuel tax as opposed to landing fees.  An additional               
 reason the association supports an increase in fuel tax, other than           
 the reason previously stated by Commissioner Campbell, is that                
 there is a higher cost involved in collecting landing fees than               
 there is in collecting additional fuel taxes.  This means there               
 will be a greater net amount of money available for maintenance of            
 airports if fuel taxes are increased, rather than imposing landing            
 fees.  Mr. Stoops adds that the Alaska Air Carriers Assn. prefers             
 the draft committee substitute to the original bill.                          
                                                                               
 Number 140                                                                    
                                                                               
 SENATOR KELLY asks if this increase in fuel taxes will totally do             
 away with landing fees at rural airports.  Commissioner Campbell              
 replies it will only do away with landing fees at rural airports,             
 and does not do away with landing taxes at larger airports.  It               
 will not have any effect on personnel, since the landing fees were            
 collected by existing personnel based in Anchorage.  Senator Kelly            
 asks what the difference is between SB 256 and the committee                  
 substitute.                                                                   
                                                                               
 Number 154                                                                    
                                                                               
 CHAIRMAN SHARP responds the main difference is on page 1, lines 7             
 through 9, and essentially says you can't have both landing fees              
 and increased fuel taxes.                                                     
                                                                               
 Number 158                                                                    
                                                                               
 SENATOR KELLY moves the adoption of CSSB 256(TRA).                            
                                                                               
 Number 161                                                                    
                                                                               
 SENATOR KERTTULA and SENATOR RANDY PHILLIPS state they are opposed            
 to SB 256, but will not oppose releasing it from committee.                   
                                                                               
 Number 167                                                                    
                                                                               
 CHAIRMAN SHARP states CSSB 256(TRA) has been adopted.                         
                                                                               
                                                                               
 Number 171                                                                    
                                                                               
 SENATOR KELLY asks CSSB 256(TRA) be moved from committee with                 
 individual recommendations.                                                   
                                                                               
 Number 174                                                                    
                                                                               
 CHAIRMAN SHARP, hearing no objection, discharges CSSB 256(TRA) from           
 the Senate Transportation Committee.                                          

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