Legislature(2005 - 2006)HOUSE FINANCE 519
04/21/2006 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB54 | |
| SB304 | |
| SB308 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 54 | TELECONFERENCED | |
| + | SB 304 | TELECONFERENCED | |
| + | SB 308 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
April 21, 2006
9:00 a.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 9:00:59 AM.
MEMBERS PRESENT
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Mike Kelly
Representative Beth Kerttula
Representative Carl Moses
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Mike Chenault, Co-Chair
Representative Reggie Joule
ALSO PRESENT
Senator Fred Dyson; Ryan Makinster, Staff, Senator John
Cowdery; Mike Neely, Diamond Parking, Anchorage; Patrick
Gamble, President and CEO, Alaska Railroad Corporation; Bill
O'Leary, Vice President, Finance, Alaska Railroad
Corporation; Representative Carl Gatto
PRESENT VIA TELECONFERENCE
Dan Coffee, Ernouf and Coffee, Anchorage; John Torgerson,
Deputy Commissioner for Aviation, Department of
Transportation and Public Facilities; John Steiner,
Assistant Attorney General, Department of Law
SUMMARY
CSSB 54(FIN)
"An Act amending protective order statutes for
crimes involving stalking to include crimes
involving sexual assault and sexual abuse, to
provide for other relief ordered by a court, to
add the protective orders to a centralized
registry, to prevent denial solely for a lapse of
time, and to require notification of the court of
known civil or criminal actions involving the
petitioner or respondent; relating to
notifications to victims of sexual assault and to
mandatory arrest for crimes involving violation of
protective orders and violation of conditions of
release; and amending Rule 65, Alaska Rules of
Civil Procedure."
CSSB 54 (FIN) was REPORTED out of Committee with a
"do pass" recommendation and with two zero fiscal
notes by the Department of Administration, a zero
fiscal note by the Department of Corrections, a
zero fiscal note by the Department of Law, and two
fiscal notes by the Department of Public Safety.
SB 304 "An Act relating to the privileges of airport
parking shuttles and to fees or charges imposed on
a person who is not a lessee or holder of a
privilege to use the property or a facility of an
airport."
SB 304 was heard and HELD in Committee for further
consideration.
SB 308 "An Act authorizing the Alaska Railroad
Corporation to issue revenue bonds to finance rail
transportation projects that qualify for federal
financial participation; and providing for an
effective date."
SB 308 was heard and HELD in Committee for further
consideration.
9:01:09 AM
CS FOR SENATE BILL NO. 54(FIN)
"An Act amending protective order statutes for crimes
involving stalking to include crimes involving sexual
assault and sexual abuse, to provide for other relief
ordered by a court, to add the protective orders to a
centralized registry, to prevent denial solely for a
lapse of time, and to require notification of the court
of known civil or criminal actions involving the
petitioner or respondent; relating to notifications to
victims of sexual assault and to mandatory arrest for
crimes involving violation of protective orders and
violation of conditions of release; and amending Rule
65, Alaska Rules of Civil Procedure."
SENATOR FRED DYSON explained that the bill has never had a
negative vote so far. He related that the head of the
sexual assault unit in Anchorage requested this bill because
some judges would not grant a protective order to a rape
victim because it was not mentioned in the code. This bill
corrects that. It also cleans up other areas in protective
orders.
Senator Dyson noted that Section 10 has a provision
regarding protective orders and prior violations.
9:04:49 AM
Representative Weyhrauch thanked the sponsor for providing
the corrections contained in the bill.
Senator Dyson reported that there are several supporters of
the bill present today who are willing to testify if needed.
Representative Stoltze noted appreciation for the bill and
especially Section 10, which applies to court systems.
Co-Chair Meyer noted the six fiscal notes.
9:07:42 AM
Representative Foster MOVED to REPORT CSSB 54 (FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSSB 54 (FIN) was REPORTED out of Committee with a "do pass"
recommendation and with two zero fiscal notes by the
Department of Administration, a zero fiscal note by the
Department of Corrections, a zero fiscal note by the
Department of Law, and two fiscal notes by the Department of
Public Safety.
9:08:34 AM
SENATE BILL NO. 304
"An Act relating to the privileges of airport parking
shuttles and to fees or charges imposed on a person who
is not a lessee or holder of a privilege to use the
property or a facility of an airport."
RYAN MAKINSTER, STAFF, SENATOR JOHN COWDERY, said he is
representing the Senate Transportation Subcommittee. Under
Alaska law, commercial vehicles that deliver people to the
airport fall into one of six general categories: limos, tour
buses, standard bus service, off-airport shuttles, off-
airport car rental shuttles and courtesy vehicles.
Depending on the vehicle's classification, a fee is charged
depending on the access to the airport. Under statute,
these fees are supposed to be reasonable and uniform for the
same class of privileges and services, and to be established
with due regard to the property and improvements used and
the expense of operation by the state. He emphasized that
the fees are to be uniform.
Mr. Makinster related that recently the Department of
Transportation proposed regulations which would charge off-
airport valet parking services a tax equal to 8 percent of
their gross revenues, or over $100,000 per year. Currently,
they are being charged a yearly rate based on the number of
shuttles they have, or about $2,500 per year. The proposed
regulations would also require a private entity without a
lease agreement to open their books to show gross sales.
The sponsor of the bill disagrees with this idea.
Mr. Makinster noted that the purpose of the bill is not to
set rates, but to clarify the law so that the rates are
reasonable and uniform and based on use, not on a percentage
of gross revenue.
Representative Hawker asked for an explanation of the fiscal
note. Mr. Makinster replied that it is a zero note. It is
not a cost to the state, but is funded through landing fees.
The airlines don't have a problem with it.
9:14:10 AM
Representative Hawker related that the current fiscal note
suggests that the fiscal burden would be shifted to the
airlines. He maintained that that is not an accurate
statement because the bill would not allow DOT or the
airport to shift the burden from the airlines, where it
currently exists, to the rental car facility. Mr. Makinster
agreed.
Representative Hawker cited in the description of the fiscal
note, "the bill would undermine changes the legislature
enacted last year to AS 02.15.090H and one to provide the
financing mechanism customer facility charge for the
Anchorage Airport rental car facility currently under
construction." He asked if the bill would undermine changes
made last year. Mr. Makinster replied that the on-airport
car rental companies would assume all costs for that unit.
The language in the fiscal note seems to be in direct
violation of the promise made last year. The reassurance
was made last year that the cost would only be absorbed by
those using the new airport rental center. Representative
Hawker suggested that the drafter of the fiscal note amend
it.
9:18:16 AM
MIKE NEELY, DIAMOND PARKING, ANCHORAGE, testified in support
of the bill. He described the facility and the land trade
and purchase involving the Municipality of Anchorage. He
pointed out that Diamond Parking owns the former Spenard
Community dump and has developed it into a facility with a
capacity to park nearly 1,200 vehicles at a cost of $12
million. Diamond Parking sells service. People park their
cars at their facility, are picked up at their car, and
transported to the airport, then picked up again when they
return. Diamond Parking is open 24 hours a day, 365 days a
year, employing 25 to 30 people, with an annual payroll of
half a million dollars. To do business at the airport,
Diamond Parking is currently required to have ramp passes
for each of the shuttle buses to drive onto airport
property. They purchase 5 annual passes at $500 each, which
is a fair rate and compares to rates charged to for similar
service.
Mr. Neely reported that in addition to the ramp pass
expense, the airport is seeking a percentage of the gross
revenue. Based on projections for 2006, this amount could
be as high as $l20,000 and would be the difference between
profit and loss. He opined that it is not fair. All other
businesses that pick up and drop off customers from off-
airport facilities are charged a flat fee. Diamond Parking
has been trying to come to an agreement with the airport.
He spoke of two other facilities, one in Salt Lake City and
one in Spokane. In Spokane a flat fee is paid. In Salt
Lake City the fee is paid on a per-trip basis. Both methods
are fair.
Mr. Neely related that Diamond Parking has proposed two
solutions, a per car fee and a per bus trip fee. Seattle,
Portland and Salt Lake City use the per bus trip fee.
Diamond Parking also proposed to install the equipment, but
both methods were flatly rejected in favor of the status quo
of 8 percent.
9:23:52 AM
DAN COFFEE, ERNOUF AND COFFEE, ANCHORAGE, concurred with Mr.
Neely's testimony. He reported that the airport's attitude
is "but for the airport there would be no off-airport
parking". He maintained that state statute says that people
will be charged commensurate with the amount of airport they
use. He disagreed that the airport is entitled to a
percentage of gross proceeds of anything that does business
with the airport. The current law needs to be followed. He
stated that airport parking already has a competitive
advantage, and has taken the easy way out by taking 8
percent of the gross profit. He requested that the
committee address this issue. He addressed the fiscal note
and the parking garage. He spoke of past ownership in a car
rental. He dispelled the fear that car rentals would move
off airport.
Representative Stoltze asked about the process for
administrative appeal. Mr. Coffee described the in-house
procedure that allows an aggrieved party to challenge a
regulation prior to going to court. So far, only a hearing
officer has been appointed and there has been no hearing.
Representative Stoltze said it is not likely to be resolved
soon.
Co-Chair Meyer mentioned the zero fiscal note by the
Department of Transportation and Public Facilities.
JOHN TORGERSON, DEPUTY COMMISSIONER FOR AVIATION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, reported that there
is another pending fiscal note. He stated that the
Department remains opposed to the bill. He appreciated the
amendments made by the House Transportation Committee. He
questioned the intent of Section 2.
9:33:14 AM
Co-Chair Meyer asked about the pending fiscal note. Mr.
Torgerson thought the note, which is a zero note, would be
available later today. It addresses a recent amendment.
Co-Chair Meyer reported about the 8 percent parking fee that
is under appeal. Mr. Torgerson said a hearing officer was
assigned to the case.
9:36:08 AM
REPRESENTATIVE CARL GATTO asked about the 8 percent fee as
it applies to a car agency in Wasilla. He wondered at what
distance a person is not considered renting a car from the
airport. Mr. Torgerson replied that there is no specific
distance stated in statute, but there are no fees imposed in
Wasilla.
JOHN STEINER, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW,
addressed Representative Gatto's question. He related that
there is a possible fee for that distance if the car rental
agency has arranged for transportation, such as a cab. If
passengers take a cab on their own, the fee would not apply.
9:38:37 AM
Representative Hawker said he would be comfortable moving
the bill out of Committee upon the opportunity to see the
fiscal note.
Co-Chair Meyer decided to hold the bill until the afternoon.
SB 304 was heard and HELD in Committee for further
consideration.
9:39:57 AM
SENATE BILL NO. 308
"An Act authorizing the Alaska Railroad Corporation to
issue revenue bonds to finance rail transportation
projects that qualify for federal financial
participation; and providing for an effective date."
PATRICK GAMBLE, PRESIDENT AND CEO, ALASKA RAILROAD
CORPORATION, conveyed information about the bill, which
calls for legislative approval for the Railroad to sell
bonds not to exceed $165 million for an acceleration of a
track refurbishment. He provided background on the Alaska
Railroad. In 1996 the Alaska Railroad realized it was
entitled to certain federal subsidies for passenger carrying
railroads. Some of the money was earmarked for rebuilding
the mainline, which had been rebuilt in the 1950's after WW
II.
Mr. Gamble reported that receiving annual funding from
SAFETEA-LU provided an opportunity to accelerate the track
refurbishment program by issuing bonds. It also shortened
the project by as much as 10 years. This provides for a
more reliable, safer railroad. The bond debt service would
be repaid by the entitlements coming in each year, and the
amount of those entitlements would not equal 50 percent of
the total federal capital input.
9:44:32 AM
Mr. Gamble reported that the bond debt service would be paid
for by asking the legislature for approval to sell the
bonds. He reported that $225 million has been put into the
line so far. This project will not exceed $165 million in
tax-exempt bonds, and will allow for re-financing. The
length of the program would be a function of three separate
issuances.
Mr. Gamble referred to the trend line of derailments in the
Alaska Railroad on page 4 of the handout, "Alaska Railroad
Corporation - Legislative Request for Bonding Approval"
(copy on file.) He reported on train accident rates on page
5. The recent work has made an impact on the downward trend
of accident rates.
9:47:51 AM
Mr. Gamble referred to page 6, project information: 100
percent CWR from Anchorage to Fairbanks, all concrete ties
on curves less than 6 degrees, wooden ties all upgraded to a
35-year cycle, all ballast reset, complimented by ARRC
Bridge Program, and complimented by ARRC Collision Avoidance
program. The project is worthwhile and affordable.
9:50:43 AM
Mr. Gamble addressed why the project is timely on pages 7
and 8. He spoke to the proposed funding on page 9. ARRC
Board approval is required for each project and bond sale.
Mr. Gamble referred to the debt service graph on page 10.
He pointed out the information on joint elimination on page
12.
Representative Stoltze asked if any of the money is for
realigning curves. Mr. Gamble said it will be used for
putting joints in curves, but not straightening them.
Representative Stoltze asked about the northern route in his
district. He asked about naming mileposts. Mr. Gamble said
there are proposals to name more posts after past workers.
9:55:43 AM
Representative Holm mentioned that the low sulfur fuels are
no longer going to be produced in Flint Hills. Mr. Gamble
said this project will not be affected by that loss of
revenue, but others would. Representative Holm asked about
crushed rock vs. round rock. Mr. Gamble reported that all
remaining round rock would be replaced by crushed granite.
9:57:33 AM
Representative Stoltze asked about Hatcher Pass Mine rock.
Mr. Gamble said he has no awareness of that project. He
said his company is always looking for good rock.
Representative Stoltze asked for the status of negotiations
at the Eklutna Quarry. Mr. Gamble spoke to a new proposal
to settle a cultural issue regarding Eklutna. A memo of
agreement was adopted and great progress is being made.
Co-Chair Meyer stated intent to hold the bill for amendment
purposes.
SB 308 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 10:01 AM.
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