Legislature(2003 - 2004)
05/01/2004 05:35 PM House CRA
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ALASKA STATE LEGISLATURE
HOUSE COMMUNITY AND REGIONAL AFFAIRS
STANDING COMMITTEE
May 1, 2004
5:35 p.m.
MEMBERS PRESENT
Representative Carl Morgan, Chair
Representative Kelly Wolf, Vice Chair
Representative Tom Anderson
Representative Ralph Samuels
Representative Albert Kookesh
MEMBERS ABSENT
Representative Pete Kott
Representative Sharon Cissna
COMMITTEE CALENDAR
HOUSE BILL NO. 562
"An Act relating to the establishment of the Interior Rivers
Port Authority; and providing for an effective date."
- MOVED HB 562 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 382(CRA) am
"An Act relating to replat approval; relating to the platting of
right-of-way acquired through eminent domain proceedings; and
providing for an effective date."
- SCHEDULED BUT NOT HEARD
SENATE BILL NO. 387 am
"An Act authorizing the making of certain commercial fishing
loans to eligible community quota entities for the purchase of
certain fishing quota shares; and providing for an effective
date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 562
SHORT TITLE: INTERIOR RIVERS PORT AUTHORITY
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS
05/01/04 (H) READ THE FIRST TIME - REFERRALS
05/01/04 (H) CRA
05/01/04 (H) CRA AT 2:00 PM CAPITOL 124
WITNESS REGISTER
PAUL FUHS
Anchorage, Alaska
POSITION STATEMENT: Explained HB 562 and what the Interior
Rivers Port Authority could accomplish.
SALLY SADDLER, Legislative Liaison
Division of Community Advocacy
Department of Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified that the concept embodied in HB
562 has merit, but requested more time to review the
legislation.
BOB CHARLES
Calista Corporation
Anchorage, Alaska
POSITION STATEMENT: Informed the committee that the Calista
Corporation wholeheartedly supports HB 562.
JOHN MACKINNON, Deputy Commissioner of Highway & Public
Facilities
Office of the Commissioner
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Testified that the concept embodied in HB
562 has merit, but requested more time to review the
legislation.
ACTION NARRATIVE
TAPE 04-16, SIDE A
Number 0001
CHAIR CARL MORGAN called the House Community and Regional
Affairs Standing Committee meeting to order at 5:35 p.m.
Representatives Morgan, Wolf, Anderson, Samuels, and Kookesh
were present at the call to order.
HB 562-INTERIOR RIVERS PORT AUTHORITY
CHAIR MORGAN announced that the only order of business would be
HOUSE BILL NO. 562, "An Act relating to the establishment of the
Interior Rivers Port Authority; and providing for an effective
date."
Number 0053
CHAIR MORGAN, as chair of the House Community and Regional
Affairs Standing Committee, sponsor of HB 562, drew attention to
the sponsor statement, which is included in the committee
packet.
Number 0110
PAUL FUHS informed the committee that he was asked to help with
this legislation because he has worked on most of the existing
state port authority legislation. He also informed the
committee that he has been the chair of the Alaska Industrial
Development & Export Authority (AIDEA), the Alaska Energy
Authority (AEA), and the Municipal Bond Bank. Therefore, he
offered to answer questions regarding the financial sections of
this legislation. Mr. Fuhs explained that HB 562 is merely
permissive and allows the people in the [Interior] region to
have a framework for regional cooperation in which [the Interior
Rivers Port Authority (IRPA)] could contract, receive funding,
could bond and enter into agreements with other entities, and
directly administer state lands in the area as a state agency
with regard to rights-of-way. This is all about transportation,
energy, and waste management.
MR. FUHS directed attention to page 15 of the legislation and
the provision entitled "Credit of state not pledged". He
explained that if [IRPA] enters into revenue bonds, it's the
debt of the authority itself rather than the state. Therefore,
the authority can't pledge the full faith and credit of the
state to a project. The aforementioned creates a good third-
party due diligence on anything proposed because the authority
would have to go to the market to sell the bonds. Mr. Fuhs
highlighted that IRPA would be able to do transfer of
responsibility agreements (TORA) with agencies in order to
implement state projects. A port authority provides a clear
focus on the project, and therefore it isn't lost as part of
some large administrative function.
MR. FUHS pointed out that the fiscal note is indeterminate
because until everything is fleshed out, there won't be
knowledge with regard to the meetings required. He noted that
many agencies, including the Denali Commission, are interested
in this regional cooperation and look for efficiencies in areas
such as electrical interties, bulk fuel purchases, and waste
management. He explained that [IRPA] could be a potential
funding source, in which case the [port authority] would go
through the Joint Committee on Legislative Budget and Audit to
receive the funds.
MR. FUHS directed attention to page 23, line 23, where the
provision requires a regional development plan within a year
after the first meeting of IRPA. The plan must identify some
regional plans and potential projects in energy, transportation,
and opportunities for private resource development. Mr. Fuhs
turned to a map of the area included in the committee packet.
He pointed out that the map illustrates the confluence of the
railroad, the main roads of Alaska, the rivers, and the
potential interconnectivity of some of these areas. Therefore,
part of [the Interior River Port Authority] is focused on
economic development and keeping money within the region while
looking for efficiencies that would lower the cost of living.
Number 0456
REPRESENTATIVE KOOKESH asked if Mr. Fuhs envisioned IRPA
returning to the legislature next year for money. He
highlighted the language that specifies "The authority may
receive funding subject to appropriation by the legislature",
and inquired as to when that would happen.
MR. FUHS answered that it could happen this session or it could
happen in between [sessions] during which someone would have to
approach the Joint Committee on Legislative Budget and Audit.
Mr. Fuhs clarified that the fiscal note is really an
indeterminate fiscal note.
REPRESENTATIVE KOOKESH likened this to a user fee.
CHAIR MORGAN pointed out that the Interior River Port Authority
would be a nine-member organization. He informed the committee
that he has received support from all the major landowners, such
as Doyon, Limited, and Tanana Chiefs Conference, Inc. He
specified that IRPA will have one member from each of the
following entities: Doyon, Limited; Tanana Chiefs Conference;
Gana-A'Yoo, Limited; the MTNT Limited; the Kuskokwim
Corporation; the Kuskokwim Native Association; Calista,
Corporation; and an individual [employed by a private company]
with a physical presence in the area. The IRPA will also have
one public member and two ex officio members. The two ex
officio members will be the commissioner of the Department of
Transportation & Public Facilities or his or her designee and
the commissioner of Department of Community & Economic
Development or his or her designee. Chair Morgan noted that all
the positions, save the two ex officio members, will be
appointed by the governor from the list of names provided by
each of the entities to be represented.
MR. FUHS highlighted that a transportation network in this area
will more closely tie the area to Fairbanks and its businesses.
Number 0703
SALLY SADDLER, Legislative Liaison, Division of Community
Advocacy, Department of Community & Economic Development,
explained that the department has had a chance to perform a
preliminary review of HB 562, which it believes to have merit.
The department believes that establishing a regional development
authority such as IRPA would help the area take control of its
economic destiny. However, the department would like to have a
few more days to review the legislation and understand all of
its details.
CHAIR MORGAN informed the committee that a request to place HB
562 on Monday's calendar has been made.
Number 0810
BOB CHARLES, Calista Corporation, informed the committee that
the Calista Corporation wholeheartedly supports HB 562. The
IRPA is a worthwhile effort to help revitalize the economy of
both the Kuskokwim and the Yukon River systems. Furthermore, it
provides the ability to address the economic development needs
that exist throughout the area. With regard to Calista
Corporation, the IRPA would help forward its other projects.
Mr. Charles concluded by saying that he looked forward to the
legislature passing HB 562.
Number 0908
JOHN MACKINNON, Deputy Commissioner of Highway & Public
Facilities, Office of the Commissioner, Department of
Transportation & Public Facilities, echoed comments similar to
Ms. Saddler regarding only having a few days to review the
legislation. He further echoed comments regarding the belief
that the concept is meritorious, although the department would
like more time to review the legislation.
CHAIR MORGAN, upon determining no one else wished to testify,
closed public testimony.
Number 0958
REPRESENTATIVE ANDERSON moved to report HB 562 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 562 was reported from the
House Community and Regional Affairs Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Community and Regional Affairs Standing Committee meeting was
adjourned at 5:47 p.m.
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