Legislature(2001 - 2002)

02/06/2001 01:39 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                      February 6, 2001                                                                                          
                          1:39 PM                                                                                               
                                                                                                                                
TAPE HFC 01 - 21, Side 1                                                                                                        
TAPE HFC 01 - 21, Side 2                                                                                                        
TAPE HFC 01 - 22, Side 1                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 1:39 PM.                                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Bill Williams, Co-Chair                                                                                          
Representative Con Bunde, Vice-Chair                                                                                            
Representative John Davies                                                                                                      
Representative Carl Moses                                                                                                       
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
Representative Jim Whitaker                                                                                                     
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Eric Croft                                                                                                       
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Norman Rokeberg;  Senator Robin Taylor;  Eddy                                                                   
Jeans, Manager,  School Finance, Department of  Education and                                                                   
Early  Development;  Tom  Bringham,   Director,  Division  of                                                                   
Statewide  Planning, Department  of  Transportation &  Public                                                                   
Facilities;  Sarah  Keenay,  Southeast   Alaska  Conservation                                                                   
Council,  Juneau;  Frank Dillon,  Executive  Vice  President,                                                                   
Alaska Trucking Association, Anchorage.                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Debbie Ossiander, Anchorage School District, Anchorage.                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
HB 8      An   Act   establishing    the   Legislative   Road                                                                   
          Development Task Force; and providing for an                                                                          
          effective date.                                                                                                       
                                                                                                                                
          CS HB 8 (FIN) was reported out of Committee with a                                                                    
          "do pass" recommendation and with a fiscal note by                                                                    
          the Legislative Affairs Agency.                                                                                       
HB 90     An Act relating to reimbursement of municipal                                                                         
          bonds for school construction; and providing for                                                                      
          an effective date.                                                                                                    
                                                                                                                                
          HB 90 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HOUSE BILL 90                                                                                                                 
                                                                                                                                
     An Act relating to reimbursement of municipal bonds for                                                                    
     school construction; and providing for an effective                                                                        
     date.                                                                                                                      
                                                                                                                                
Co-Chair  Mulder  explained  that   HB  90  would  correct  a                                                                   
technical error to HB 281, Chapter  130, SLA 2000, the school                                                                   
capital funding and  bond debt reimbursement bill.   The bill                                                                   
intended to provide bond debt  reimbursement for several bond                                                                   
obligations   previously  approved   by   voters.     Several                                                                   
districts  had  voters  approved   bonds  prior  to  securing                                                                   
approval  from   the  Commissioner   of  the  Department   of                                                                   
Education and  Early Development.  The action  would preclude                                                                   
them   from  securing   intended   reimbursement  under   the                                                                   
provisions of last year's bill.                                                                                                 
                                                                                                                                
He added  that HB 90 would  correct that technical  error and                                                                   
that  it  would  not  expand  any  authorizations  previously                                                                   
provided.   It would simply  allow those intended  to receive                                                                   
bond  debt reimbursement  to  do  so.   He  advised that  the                                                                   
legislation would  affect the  Municipality of Anchorage  and                                                                   
the Northwest Arctic Borough.                                                                                                   
                                                                                                                                
Co-Chair  Mulder noted  that there was  another amendment  to                                                                   
the  proposed legislation.   He  requested that  the bill  be                                                                   
held in Committee for further work.                                                                                             
                                                                                                                                
Representative  Harris referenced Page  4, Line 19,  pointing                                                                   
out a typographical error; the  "P" should be changed to "O".                                                                   
Co-Chair Mulder agreed, noting  that the technical change and                                                                   
would be made by the legal drafters.                                                                                            
                                                                                                                                
EDDY JEANS, MANAGER, SCHOOL FINANCE,  DEPARTMENT OF EDUCATION                                                                   
AND EARLY DEVELOPMENT, commented  in response to queries made                                                                   
by  Representative  Whitaker and  Representative  J.  Davies,                                                                   
indicating that  the bill would  not change the  reallocation                                                                 
structure.   He added  that he  was not  aware of any  school                                                                   
districts opposed to the idea.                                                                                                  
                                                                                                                                
Co-Chair  Williams  directed that  HB  90  would be  HELD  in                                                                   
Committee for further consideration.                                                                                            
                                                                                                                                
HOUSE BILL NO. 8                                                                                                              
                                                                                                                                
     An  Act establishing  the  Legislative Road  Development                                                                   
     Task Force; and providing for an effective date.                                                                           
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  NORMAN  ROKEBERG explained  that  HB 8  would                                                                   
establish a  Legislative Pioneer Road Development  Task Force                                                                   
whose duties would include:                                                                                                     
                                                                                                                                
     ·    Research  existing plans  for  road development  in                                                                   
          the State;                                                                                                            
     ·    Identify  roads  that  are  important  to  Alaska's                                                                   
          future economic development;                                                                                          
     ·    Study feasibility of  developing or upgrading roads                                                                   
          in order to promote future economic development;                                                                      
     ·    Determine  availability  and  source  of  funds  to                                                                   
          develop or upgrade those roads;                                                                                       
     ·    Review  alternative  funding  sources  for  ongoing                                                                   
          maintenance; and                                                                                                      
     ·    Establish  a  priority   ranking  for  projects  to                                                                   
          develop or upgrade the roads identified by the                                                                        
          Task Force.                                                                                                           
                                                                                                                                
Representative  Rokeberg  noted  that the  Task  Force  would                                                                   
include various memberships as  described in the legislation.                                                                   
He  commented that  without  having a  better  transportation                                                                   
infrastructure, many  areas in Alaska cannot  be developed to                                                                   
their  fullest  potential.     The  legislation  proposes  to                                                                   
establish roads for consideration.   Many of these roads have                                                                   
been discussed  by previous legislatures and  the discussions                                                                   
have impressed a  need for "forward thinking".   He suggested                                                                   
that this legislation would provide that.                                                                                       
                                                                                                                                
Representative Rokeberg  affirmed that Alaska  must get roads                                                                   
"up and  going" in order to  benefit the entire State.   Both                                                                   
natural resource  development and  tourism will benefit  from                                                                   
such a  project.  He recommended  that the Task  Force should                                                                   
complete  their  work  and make  recommendations  by  January                                                                   
2002.                                                                                                                           
                                                                                                                                
Vice-Chair  Bunde MOVED  to  adopt the  committee  substitute                                                                   
work draft #22-LS0102\J,  Utermohle, 2/5/01.   There being NO                                                                   
OBJECTION, the committee substitute was adopted.                                                                                
                                                                                                                                
Representative  Davies  asked for  an  itemized  list of  the                                                                   
changes made to the work draft.                                                                                                 
                                                                                                                                
Vice-Chair Bunde listed the changes:                                                                                            
                                                                                                                                
     ·    Page 2, Line 4, adding  one member who resides in a                                                                   
          rural area;                                                                                                           
     ·    Page 3, Line 18, adding the Shelter Cove Road; and                                                                    
     ·    Page 3, Line 28, the repealed date language.                                                                          
                                                                                                                                
Representative Rokeberg stated  that he did not object to the                                                                   
addition of Cove  Road, however, he believed  that moving the                                                                   
                     th                                                                                                         
date back to March 15  could be  problematic.  He recommended                                                                   
                                      th                                                                                        
compromising by  adding a February  15  date.   Additionally,                                                                   
Representative  Rokeberg indicated that  he would  prefer the                                                                   
Task  Force  representation  more  from  rural  Alaska.    He                                                                   
believed  that  the committee  substitute  had  replaced  the                                                                   
rural member.  He counseled the  Committee how dangerous that                                                                   
could be.                                                                                                                       
                                                                                                                                
Co-Chair  Williams acknowledged  that he  was not settled  on                                                                   
the date,  and that he foresaw  more and more  people wanting                                                                   
to participate on the Task Force.                                                                                               
                                                                                                                                
Representative Davies voiced his  concern with the make-up of                                                                   
the Task Force  membership.  He believed that  the membership                                                                   
was heavily weighted toward development interests.                                                                              
                                                                                                                                
Representative  Rokeberg mentioned  the Resource  Development                                                                   
Council (RDC) membership.                                                                                                       
                                                                                                                                
Representative   Hudson   commended   the  attempt   of   the                                                                   
legislation  to   develop  a  broad  view  on   road  systems                                                                   
throughout the State.  He inquired  if there had been similar                                                                   
action taken on the Railroad extension question.                                                                                
                                                                                                                                
Representative Rokeberg did not know the answer to that.                                                                        
                                                                                                                                
Representative  Lancaster questioned  why  Railroads had  not                                                                   
been  included  in  the  legislation.   He  pointed  out  his                                                                   
amendment.                                                                                                                      
                                                                                                                                
Representative   Rokeberg  understood   the  intent   of  the                                                                   
amendment,  however,  acknowledged  that many  groups  wanted                                                                   
representation.   He agreed  that could  be a good  addition,                                                                   
however, it  might dilute the  intention of the  legislation.                                                                   
He believed  that  the focus of  the Task  Force should  make                                                                   
order and prioritize road concerns.                                                                                             
                                                                                                                                
SENATOR ROBIN TAYLOR voiced support  for the legislation.  He                                                                   
stated that  no roads had been  built in his  Senate district                                                                   
during  the referenced  time  span.   There  were over  3,000                                                                   
miles of  road built by the  United States Forest  Service on                                                                   
the Prince of  Wales Island during that same  period of time.                                                                   
Senator Taylor  emphasized that there should  be a meaningful                                                                   
transportation system throughout the State.                                                                                     
                                                                                                                                
He commented on  the history of the Whittier  Road and Tunnel                                                                   
and  the 15  years  that it  took  to build  that  road.   He                                                                   
reminded members  that Senator  Ted Stevens has  appropriated                                                                   
millions of dollars to Department  of Transportation & Public                                                                   
Facilities and to  date, not one inch of road  has been built                                                                   
on the Bradfield Road proposal.                                                                                                 
                                                                                                                                
Senator  Taylor applauded  the  House Finance  Committee  for                                                                   
considering  this  issue,  while urging  consideration  of  a                                                                   
better road system throughout the State of Alaska.                                                                              
                                                                                                                                
Co-Chair Mulder inquired about  the logging roads being built                                                                   
in Senator Taylor's district.                                                                                                   
                                                                                                                                
Senator Taylor  explained that  those roads were  being built                                                                   
in  Senator Austerman's  district  and that  they were  being                                                                   
done by the  Army Corps of Engineers.  He  reminded Committee                                                                   
members  that a  road  runs twenty-four  hours  a day,  while                                                                   
ferries run a few times a week.                                                                                                 
                                                                                                                                
Representative  Whitaker  asked   how  Senator  Taylor  would                                                                   
characterize the problem.                                                                                                       
                                                                                                                                
Senator Taylor  responded that there are good  employees that                                                                   
work  at Department  of Transportation  & Public  Facilities;                                                                   
however,  the Governor  and his  staff condition  them.   The                                                                   
Administration does  not want any new roads  built, but would                                                                   
rather build a new high-speed  ferry for $60 million dollars.                                                                   
                                                                                                                                
Representative  Whitaker  inquired   if  Senator  Taylor  was                                                                   
calling  it  "gubernatorial  resistance".     Senator  Taylor                                                                   
interjected  that any  road  building discussion  is  usually                                                                   
"killed"  by   the  Governor,  which  is  reflected   in  the                                                                   
Statewide  Transportation Improvement  Program (STIP)  agenda                                                                   
each year.                                                                                                                      
                                                                                                                                
Representative  Davies  inquired if  100%  of  the people  in                                                                   
Southeast  Alaska   want  a  road  built.     Senator  Taylor                                                                   
explained that it would never  be 100%.  He stressed that the                                                                   
people of  the communities want  to be heard and  that access                                                                   
should happen.  He reiterated  that there could never be 100%                                                                   
agreement.                                                                                                                      
                                                                                                                                
Representative  Harris  agreed in  part  with Senator  Taylor                                                                   
that the  Task Force  should not  be expanded  to large.   He                                                                   
agreed that  the project  needs to move  forward in  order to                                                                   
help   promote  economic   development   within  the   State.                                                                   
Representative Harris suggested  that the bill be streamlined                                                                   
so that  the project could  move forward, stressing  that the                                                                   
State will need  to be committed to add funding  to make this                                                                   
happen.                                                                                                                         
                                                                                                                                
Vice-Chair  Bunde asked  if  the way  the  roads were  listed                                                                   
indicated   their   priority.       Representative   Rokeberg                                                                   
interjected  that the  Task Force  would  be responsible  for                                                                   
creating the priorities.                                                                                                        
                                                                                                                                
Vice-Chair Bunde  commented that  the Task Force  costs would                                                                   
not be  expensive, however,  the cost  of building  the roads                                                                   
would  be.    He  agreed  that  the  voice  of  the  citizens                                                                   
throughout  the  State,  should  be heard.    He  recommended                                                                   
someone who  is not interested  in road concerns be  added to                                                                   
the Task Force membership.                                                                                                      
                                                                                                                                
Representative Rokeberg disagreed  with Vice-Chair Bunde.  He                                                                   
pointed  out that  the  Task Force  would  not supercede  any                                                                   
environmental or other concerns.   He believed that to invite                                                                   
someone  from  the  community   that  wants  to  "stop"  road                                                                   
building could be problematic.                                                                                                  
                                                                                                                                
Vice-Chair  Bunde addressed  the  Task Force  and the  fiscal                                                                   
responsibilities associated with their actions.                                                                                 
                                                                                                                                
Representative Hudson  recommended that a Task  Force of that                                                                   
size should  provide an  updated status  of roads  throughout                                                                   
the State.  He agreed that type  of information was important                                                                   
for good public  policy, while referencing the  road to Atlin                                                                   
and  the   State's  inability   to  get  Canada's   approval.                                                                   
Representative Hudson  agreed that the Task Force  would be a                                                                   
"good"  thing to  use to  determine  the status  of the  road                                                                   
system throughout the State.                                                                                                    
                                                                                                                                
Representative  Davies asked  what kind  of economic  factors                                                                   
would be considered  by the Task Force and  if those concerns                                                                   
would be restricted to roads only.                                                                                              
                                                                                                                                
Representative Rokeberg advised  that the manner in which the                                                                   
bill was drafted, the membership  would be determined through                                                                   
the Committee process.   He noted the amendment,  which spoke                                                                   
to those  concerns.   He proposed  that the  "needs" of  each                                                                   
community  should determine  how  the Task  Force would  rate                                                                   
each area.                                                                                                                      
                                                                                                                                
Co-Chair  Williams referenced  the  committee substitute  and                                                                   
commented that RDC  does have a broad spectrum  of membership                                                                   
throughout the private  sector.  He noted that  the committee                                                                   
substitute  asked that  the  Task Force  report  back at  the                                                                   
beginning  of the year,  rather than  the original  requested                                                                   
                th                                                                                                              
date of March 15.                                                                                                               
                                                                                                                                
Co-Chair  Mulder agreed  that changing  the date  was a  good                                                                   
move.   If the Task  Force proves to  be effective,  then the                                                                   
Legislature could take action to extend its life.                                                                               
                                                                                                                                
TAPE HFC 01 - 21, Side B                                                                                                      
                                                                                                                                
Representative  Davies  commented  that construction  of  the                                                                   
roads would be  the cheap part, as construction  of the roads                                                                   
would be done mostly with federal  funding.  He stressed that                                                                   
upkeep would be  the expensive aspect and asked  if the State                                                                   
could afford those  costs.  He reminded members  how much the                                                                   
Legislature has been cutting the maintenance funding.                                                                           
                                                                                                                                
Co-Chair Mulder  reiterated that  roads could bring  economic                                                                   
development to the State.                                                                                                       
                                                                                                                                
Co-Chair Williams  interjected that the Committee  could have                                                                   
this debate later during the meeting.                                                                                           
                                                                                                                                
Representative  Rokeberg  stressed that  it  is important  to                                                                   
recognize that economic development  does have costs and that                                                                   
Alaska has had  minimal economic development  for many years.                                                                   
He believed that  the comments of Senator Taylor  were to the                                                                   
point of concern.                                                                                                               
                                                                                                                                
Representative  Davies  criticized,  noting that  the  entire                                                                   
State  infrastructure rests  on oil.   Oil  does not  provide                                                                   
enough  solid  funding  to  increase  the  infrastructure  as                                                                   
proposed.  Oil  cannot support the development,  unless it is                                                                   
complimented with a statewide tax.                                                                                              
                                                                                                                                
Co-Chair  Williams reiterated  that these  concerns would  be                                                                   
debated before the bill moves from Committee.                                                                                   
                                                                                                                                
TOM  BRINGHAM,  DIRECTOR,  DIVISION  OF  STATEWIDE  PLANNING,                                                                   
DEPARTMENT OF  TRANSPORTATION & PUBLIC FACILITIES,  indicated                                                                   
some of the concerns of the Department:                                                                                         
                                                                                                                                
     ·    The Department questions what is the best place to                                                                    
          spend the money that is available;                                                                                    
     ·    The Department questions where would the money                                                                        
          come from to maintain the proposed roads.  He                                                                         
          spoke to the reality of the maintenance budget,                                                                       
          and how new roads would be given negative points;                                                                     
     ·    He noted that the Regional Transportation Plan                                                                        
          extensively involves each of those communities.                                                                       
          He stressed that the proposal does not take into                                                                      
          consideration public involvement; and                                                                                 
     ·    That with any single purpose road, some sort of                                                                       
          transportation must be attached with it.                                                                              
                                                                                                                                
Mr. Bringham  corrected comments  made by Senator  Taylor and                                                                   
his reference  to the fact  that no  roads had been  built by                                                                   
the  Department  in Southeast  Alaska.   The  Southeast  Plan                                                                   
includes a road from Wrangell  to Fool's Inlet.  Mr. Bringham                                                                   
expounded that the  Canadians did not support  the concept of                                                                   
the Bradfield Road,  thus, the Department did  not pursue it.                                                                   
The federal  government does  not want the  State to  build a                                                                   
road that stops at the border.                                                                                                  
                                                                                                                                
Co-Chair  Williams suggested  that  the Task  Force would  be                                                                   
commissioned initially  to provide "fact finding".   Then the                                                                   
Legislature  could determine  if  funds were  available.   He                                                                   
addressed  the  single  purpose issue,  noting  that  concern                                                                   
would be the Task Force work agenda.                                                                                            
                                                                                                                                
Representative  Hudson stated  that the proposed  legislation                                                                   
could allow the  Legislature a fresh opportunity  to evaluate                                                                   
potential transportation concerns throughout the State.                                                                         
                                                                                                                                
Representative  Foster asked  if the  objection rests  in the                                                                   
fact that the  bill would circumvent public  involvement.  He                                                                   
thought  that  other  task forces  worked  closely  with  the                                                                   
public.    He  did  not  understand   the  objection  to  the                                                                   
proposal.                                                                                                                       
                                                                                                                                
In   response   to   comments   by   Representative   Foster,                                                                   
Representative J.  Davies explained that there  is not enough                                                                   
State  money  to  implement  the  concepts  of  the  proposed                                                                   
legislation.  He  stated that there would not  be much public                                                                   
input with passage of the legislation.                                                                                          
                                                                                                                                
Representative Davies questioned  the idea of "pioneer roads"                                                                   
and how much  development would be included  in that concept.                                                                   
He assumed that type of road would be primitive.                                                                                
                                                                                                                                
Mr. Brigham explained that a pioneer  road would be federally                                                                   
fundable  and would be  built at  a 20  M.P.H. standard.   He                                                                   
stated that it  would be similar to a logging  road and would                                                                   
be  used  to  haul  freight.   He  added  that  it  would  be                                                                   
difficult to use  it as a public passage road.   Mr. Bringham                                                                   
stressed  that the  road  to Cascade  Point  would  not be  a                                                                   
perspective pioneer road.                                                                                                       
                                                                                                                                
SARAH KEENAY, SOUTHEAST ALASKA  CONSERVATION COUNCIL (SEACC),                                                                   
JUNEAU,  voiced  support  of   the  concerns  made  by  local                                                                   
residents  and  Taku  River watershed  users,  who  would  be                                                                   
impacted  by construction  of a  road from  Juneau to  Atlin,                                                                   
British Columbia.   She noted that there had  been tremendous                                                                   
controversy surrounding  the proposed  road in the  watershed                                                                   
area.    Serious  concerns have  been  raised  regarding  the                                                                   
impact  on  the  Taku  River's   annual  $10  million  dollar                                                                   
commercial fishery.                                                                                                             
                                                                                                                                
Representative Foster  asked if SEACC would  support the bill                                                                   
if that  concern were not  included. Ms. Keenay  replied that                                                                   
she would need to check that out  with the Director of SEACC.                                                                   
                                                                                                                                
FRANK  DILLON,  EXECUTIVE  VICE  PRESIDENT,  ALASKA  TRUCKING                                                                   
ASSOCIATION,  ANCHORAGE, voiced  support  for the  bill.   He                                                                   
believed that  it would  not compete  with the Department  of                                                                   
Transportation &  Public Facilities to prioritize  roads, but                                                                   
rather would  provide an opportunity  to get people  together                                                                   
to  determine  the transportation  and  infrastructure  needs                                                                   
throughout the State.                                                                                                           
                                                                                                                                
Some of the development throughout  Alaska would be important                                                                   
to  the entire  State.   He believed  that  the group  should                                                                   
include different  members from various communities  and that                                                                   
the  process should  not exclude  anyone  from the  anti-road                                                                   
viewpoint.                                                                                                                      
                                                                                                                                
Mr. Dillon  believed that  the Task  Force could create  more                                                                   
probability that a formal structure would be created.                                                                           
                                                                                                                                
Vice-Chair Bunde asked about the  comments regarding the road                                                                   
to Prudhoe Bay.                                                                                                                 
                                                                                                                                
Mr. Dillon did not foresee a road  developed in that area.  A                                                                   
road anywhere takes seven years  before "the dirt is actually                                                                   
turned".  He  hoped that U.S. Congressman Don  Young would be                                                                   
taking that into consideration  with the next serious highway                                                                   
bill.                                                                                                                           
                                                                                                                                
In  response to  concerns  voiced  by Vice-Chair  Bunde,  Mr.                                                                   
Dillon stated that without forming  a Task Force to raise the                                                                   
level of attention,  there would be no movement  forward.  He                                                                   
did not know how maintenance would be addressed.                                                                                
                                                                                                                                
Representative  Davies  believed  that  the  State  would  be                                                                   
better   off  focusing   maintenance   dollars  on   existing                                                                   
structures.   He asked  if the  Alaska Trucker's  Association                                                                   
would be  willing to  help provide some  kind of  support for                                                                   
the road systems throughout the State.                                                                                          
                                                                                                                                
Mr. Dillon acknowledged that the  Alaska Truckers Association                                                                   
does support  a fuel tax  to help maintain  roads.   He noted                                                                   
that  he  has  requested  that  taxes  be  increased  on  the                                                                   
industry several times.  With  regards to building the roads,                                                                   
one concept  is if no one were  to benefit, it would  not pay                                                                   
to  build that  specific infrastructure.    The State  cannot                                                                   
build roads for  work development only; there must  be a goal                                                                   
of economic enhancement produced throughout the State.                                                                          
                                                                                                                                
Vice-Chair   Bunde  MOVED   to  adopt   Amendment  #1,   #22-                                                                   
LS0102\F.2, Utermohle,  2/6/01.  He requested  that questions                                                                   
be referred to the bill's sponsor.                                                                                              
                                                                                                                                
Representative  Rokeberg  stated  that  the  amendment  would                                                                   
strengthen  the direction for  the Task  Force and  what they                                                                   
would  need to  accomplish.   The  issue would  be forced  to                                                                   
either make or not make the federal  government recognize the                                                                   
State's rights regarding rights-of-way.                                                                                         
                                                                                                                                
Representative  Davies  spoke  in support  of  the  amendment                                                                   
because  of  the  reference  to R.S.  2477.  In  response  to                                                                   
concerns voiced  by Representative J. Davies,  Representative                                                                   
Rokeberg point out that there  are no current cases enforcing                                                                   
the State's rights at this time.                                                                                                
                                                                                                                                
There being NO OBJECTION, Amendment #1 was adopted.                                                                             
                                                                                                                                
Representative Lancaster WITHDREW Amendment 2.                                                                                  
                                                                                                                                
Representative  Davies  MOVED  to  ADOPT  Amendment  #3,  22-                                                                   
LS010\F.3, Utermohle, 2/6/01.  Co-Chair Williams OBJECTED.                                                                      
                                                                                                                                
Representative Davies  spoke in support of the  amendment. He                                                                   
maintained  that the amendment  would delete  the need  for a                                                                   
Task Force and would be more directed  on cost effectiveness.                                                                   
He  pointed out  that  Subsection B  would  provide that  any                                                                   
municipality could nominate roads in the same manner.                                                                           
                                                                                                                                
Representative  Hudson pointed out  that there was  no fiscal                                                                   
note  accompanying  the  amendment.   He  questioned  if  the                                                                   
Department supported  it.  Representative  J. Davies  was not                                                                   
aware if the Department had seen the amendment.                                                                                 
                                                                                                                                
TAPE HFC 01 - 22, Side A                                                                                                      
                                                                                                                                
Representative  Davies  stated that  he  did  not think  that                                                                   
there would  be a great  expense to the Department,  pointing                                                                   
out that much of the infrastructure currently is in place.                                                                      
                                                                                                                                
Representative Rokeberg  objected to the amendment.   He felt                                                                   
that the heart  of the amendment would cut  out the essential                                                                   
parts  of the bill.   He  believed that  the present  process                                                                   
does not work  with the Statewide Transportation  Improvement                                                                   
Program  (STIP).   He  observed  that the  legislation  could                                                                   
state that the  goal of the Department of  Transportation and                                                                   
Public Facilities  was to  build a  certain number  of roads;                                                                   
however, he believed that it would  be better to make it more                                                                   
specific.                                                                                                                       
                                                                                                                                
Representative  Davies maintained  that  the amendment  would                                                                   
determine that  the Legislature  be the constituency  for the                                                                   
rural areas.   He stressed that the evaluation  process would                                                                   
be up-front and  that there are experts in  the Department to                                                                   
do  that  work.     He  reiterated  that  the  Department  is                                                                   
prepared to provide  the economic evaluation  and stated that                                                                   
the amendment could address policy direction.                                                                                   
                                                                                                                                
Co-Chair  Williams  understood the  problem  to  be that  the                                                                   
Department  does  not want  to  do  the  work at  this  time.                                                                   
Representative  J.  Davies  argued   that  was  not  what  he                                                                   
understood.                                                                                                                     
                                                                                                                                
Representative Hudson  suggested that what is  being proposed                                                                   
is  a  two-part  process.   The  proposed  legislation  would                                                                   
involve expanding  the awareness  of all the potential  roads                                                                   
and presenting a  list of the roads to the  Legislature.  The                                                                   
second  part of the  consideration would  be the  Legislature                                                                   
reconciling the determined facts  and defining public policy.                                                                   
                                                                                                                                
Representative Davies  believed that the first  step could be                                                                   
skipped and  that the Legislature  should provide  the policy                                                                   
direction at this time.                                                                                                         
                                                                                                                                
Representative Whitaker pointed  out that the information for                                                                   
the  policy position  might be  different  from the  existing                                                                   
policy.  He stressed  that the Task Force would  need to find                                                                   
reasons why it will work.                                                                                                       
                                                                                                                                
A roll call vote  was taken on the MOTION to  adopt Amendment                                                                   
#3.                                                                                                                             
                                                                                                                                
IN FAVOR:      Davies, Moses                                                                                                    
OPPOSED:       Bunde, Foster, Harris, Hudson, Lancaster,                                                                        
               Whitaker, Mulder, Williams                                                                                       
                                                                                                                                
Representative Croft was not present for the vote.                                                                              
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
Co-Chair  Mulder  MOVED  to  report  CS HB  8  (FIN)  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal note.                                                                                                       
                                                                                                                                
Co-Chair  Mulder WITHDREW  the MOTION  so that the  Committee                                                                   
could review the fiscal note.                                                                                                   
                                                                                                                                
Co-Chair Mulder  restated the  MOTION to  MOVE the  bill from                                                                   
Committee.                                                                                                                      
                                                                                                                                
Representative  Moses OBJECTED for  a comment.   He applauded                                                                   
the sponsor  for coming up  with the legislation.  He pointed                                                                   
out that the first road on the  list, noting that road was in                                                                   
much  better shape  fifty  years  ago than  it  is  now.   He                                                                   
stressed  that the  State cannot  and does  not maintain  the                                                                   
current road  systems.   Representative Moses emphasized  the                                                                   
need for a long-range fiscal plan.                                                                                              
                                                                                                                                
Representative Davies associated  with the comments voiced by                                                                   
Representative  Moses.  He  believed that  the intent  of the                                                                   
bill would  raise Alaskan's  expectations without  satisfying                                                                   
them.  He hoped  that the sponsor's intent  would provide for                                                                   
a long-range fiscal plan.                                                                                                       
                                                                                                                                
Vice-Chair Bunde  agreed with  the two previous  speakers and                                                                   
voiced his concern  with the backlog of  deferred maintenance                                                                   
problems throughout  the State  of Alaska.   He advised  that                                                                   
any pioneer roads should be focused  on economic development.                                                                   
                                                                                                                                
Representative Moses WITHDREW  his OBJECTION.  There being NO                                                                   
further  OBJECTION,  CS  HB  8  (FIN)  was  reported  out  of                                                                   
Committee.                                                                                                                      
                                                                                                                                
CS HB 8 (FIN) was reported out of Committee with a "do pass"                                                                    
recommendation and with a fiscal note by Legislative Affairs                                                                    
Agency dated 1/29/01.                                                                                                           
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:30 P.M.                                                                                          
                                                                                                                                

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