Legislature(2013 - 2014)CAPITOL 120

04/09/2013 09:30 AM RULES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 9:00 a.m. on 4/10/13 for HB 23 --
+ HB 23 KNIK ARM BRIDGE AND TOLL AUTHORITY TELECONFERENCED
Heard & Held
<Bill Held Over to 4/10>
+ HB 167 ARCHITECTS, ENGINEERS, SURVEYORS TELECONFERENCED
Moved CSHB 167(RLS) Out of Committee
+ SB 31 NAMING AKHIOK RUNWAY TELECONFERENCED
Moved HCS SB 31(RLS) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
                 HOUSE RULES STANDING COMMITTEE                                                                               
                         April 9, 2013                                                                                          
                           9:35 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Craig Johnson, Chair                                                                                             
Representative Mike Chenault                                                                                                    
Representative Mike Hawker                                                                                                      
Representative Bob Herron                                                                                                       
Representative Wes Keller                                                                                                       
Representative Kurt Olson                                                                                                       
Representative Max Gruenberg                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Shelley Hughes                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 23                                                                                                               
"An  Act relating  to  bonds  of the  Knik  Arm  Bridge and  Toll                                                               
Authority; relating  to reserve funds of  the authority; relating                                                               
to  taxes and  assessments on  a  person that  is a  party to  an                                                               
agreement  with  the authority;  and  establishing  the Knik  Arm                                                               
Crossing fund."                                                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 167                                                                                                              
"An Act relating to the regulation of architects, engineers,                                                                    
land surveyors, and landscape architects."                                                                                      
                                                                                                                                
     - MOVED CSHB 167(RLS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 31                                                                                                              
"An Act naming the runway at the state-owned airport in Akhiok                                                                  
the Jim Andie and Robin Starrett Memorial Runway."                                                                              
                                                                                                                                
     - MOVED HCS SB 31(RLS) OUT OF COMMITTEE                                                                                    
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  23                                                                                                                  
SHORT TITLE: KNIK ARM CROSSING; AHFC                                                                                            
SPONSOR(s): REPRESENTATIVE(s) NEUMAN, HUGHES                                                                                    
                                                                                                                                
01/16/13       (H)       PREFILE RELEASED 1/7/13                                                                                
01/16/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (H)       TRA, FIN                                                                                               
02/28/13       (H)       TRA AT 2:00 PM BARNES 124                                                                              
02/28/13       (H)       Heard & Held                                                                                           
02/28/13       (H)       MINUTE(TRA)                                                                                            
03/12/13       (H)       TRA AT 1:00 PM BARNES 124                                                                              
03/12/13       (H)       Heard & Held                                                                                           
03/12/13       (H)       MINUTE(TRA)                                                                                            
03/21/13       (H)       TRA AT 1:00 PM BARNES 124                                                                              
03/21/13       (H)       Moved Out of Committee                                                                                 
03/21/13       (H)       MINUTE(TRA)                                                                                            
03/22/13       (H)       TRA RPT 5DP 2AM                                                                                        
03/22/13       (H)       DP: LYNN, JOHNSON, GATTIS, ISAACSON,                                                                   
                         P.WILSON                                                                                               
03/22/13       (H)       AM: FEIGE, KREISS-TOMKINS                                                                              
03/28/13       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/28/13       (H)       Heard & Held                                                                                           
03/28/13       (H)       MINUTE(FIN)                                                                                            
04/02/13       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/02/13       (H)       Moved CSHB  23(FIN) Out of Committee                                                                   
04/02/13       (H)       MINUTE(FIN)                                                                                            
04/03/13       (H)       FIN RPT CS(FIN) 3DP 1NR 6AM                                                                            
04/03/13       (H)       DP: NEUMAN, T.WILSON, STOLTZE                                                                          
04/03/13       (H)       NR: THOMPSON                                                                                           
04/03/13       (H)       AM: KAWASAKI, HOLMES, MUNOZ, EDGMON,                                                                   
                         GARA, COSTELLO                                                                                         
04/08/13       (H)       RETURNED TO RLS COMMITTEE                                                                              
04/09/13       (H)       RLS AT 9:30 AM CAPITOL 120                                                                             
                                                                                                                                
BILL: HB 167                                                                                                                  
SHORT TITLE: ARCHITECTS, ENGINEERS, SURVEYORS                                                                                   
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/15/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/15/13       (H)       L&C                                                                                                    
03/29/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/29/13       (H)       Moved Out of Committee                                                                                 
03/29/13       (H)       MINUTE(L&C)                                                                                            
04/01/13       (H)       L&C RPT 3DP 2NR                                                                                        
04/01/13       (H)       DP: SADDLER, JOSEPHSON, OLSON                                                                          
04/01/13       (H)       NR: CHENAULT, REINBOLD                                                                                 
04/09/13       (H)       RLS AT 9:30 AM CAPITOL 120                                                                             
                                                                                                                                
BILL: SB  31                                                                                                                  
SHORT TITLE: NAMING AKHIOK RUNWAY AND KODIAK AIRPORT                                                                            
SPONSOR(s): STEVENS                                                                                                             
                                                                                                                                
01/22/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/13       (S)       TRA                                                                                                    
02/07/13       (S)       TRA AT 1:30 PM BUTROVICH 205                                                                           
02/07/13       (S)       Moved SB 31 Out of Committee                                                                           
02/07/13       (S)       MINUTE(TRA)                                                                                            
02/08/13       (S)       TRA RPT  5DP                                                                                           
02/08/13       (S)       DP: EGAN, FAIRCLOUGH, DYSON, FRENCH,                                                                   
                         BISHOP                                                                                                 
02/20/13       (S)       TRANSMITTED TO (H)                                                                                     
02/20/13       (S)       VERSION: SB  31                                                                                        
02/22/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/13       (H)       TRA                                                                                                    
03/05/13       (H)       TRA AT 1:00 PM BARNES 124                                                                              
03/05/13       (H)       Moved Out of Committee                                                                                 
03/05/13       (H)       MINUTE(TRA)                                                                                            
03/07/13       (H)       TRA RPT 6DP                                                                                            
03/07/13       (H)       DP: LYNN, JOHNSON, ISAACSON, GATTIS,                                                                   
                         KREISS-TOMKINS, P.WILSON                                                                               
04/08/13       (H)       RETURNED TO RLS COMMITTEE                                                                              
04/09/13       (H)       RLS AT 9:30 AM CAPITOL 120                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MIA COSTELLO                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of HB 23, presented                                                                       
Amendment 1.                                                                                                                    
                                                                                                                                
DAN FAUSKE, CEO/Executive Director                                                                                              
Alaska Housing Finance Corporation (AHFC)                                                                                       
Department of Revenue;                                                                                                          
President, Alaska Gasline Development Corporation (AGDC)                                                                        
POSITION STATEMENT:  Provided testimony on proposed Amendment 1                                                               
to CSHB 23(FIN).                                                                                                                
                                                                                                                                
REPRESENTATIVE MARK NEUMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as one  of the joint prime sponsors of                                                             
HB 23.                                                                                                                          
                                                                                                                                
MICHAEL FOSTER, Chair                                                                                                           
Board of Directors                                                                                                              
Knik Arm Bridge and Toll Authority (KABATA)                                                                                     
POSITION STATEMENT:   Testified in  opposition to Amendment  1 to                                                             
CSHB 23(FIN).                                                                                                                   
                                                                                                                                
ANNA LATHIM, Staff                                                                                                              
Representative Olson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented Amendment  1 to HB 167  on behalf                                                             
of  the House  Labor  and Commerce  Standing  Committee of  which                                                               
Representative Olson is the chair.                                                                                              
                                                                                                                                
ASTRID ROSE, Staff                                                                                                              
Representative Alan Austerman                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented Amendment 1 to SB 31.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
9:35:58 AM                                                                                                                    
                                                                                                                                
CHAIR  CRAIG JOHNSON  called the  House Rules  Standing Committee                                                             
meeting to order at 9:35  a.m.  Representatives Chenault, Hawker,                                                               
Herron,  Keller, Olson,  Gruenberg, and  Johnson were  present at                                                               
the  call  to  order.   Also  in  attendance  was  Representative                                                               
Hughes.                                                                                                                         
                                                                                                                                
                 HB  23-KNIK ARM CROSSING; AHFC                                                                             
                                                                                                                                
9:36:18 AM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  announced that the  first order of  business would                                                               
be HOUSE BILL NO.  23, "An Act relating to bonds  of the Knik Arm                                                               
Bridge  and Toll  Authority;  relating to  reserve  funds of  the                                                               
authority; relating to taxes and  assessments on a person that is                                                               
a party to an agreement  with the authority; and establishing the                                                               
Knik  Arm  Crossing  fund."    [Before  the  committee  was  CSHB                                                               
23(FIN).]                                                                                                                       
                                                                                                                                
9:36:28 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER  moved that  the committee  adopt Amendment                                                               
1, labeled 28-LS0141\O.24, Martin,  4/8/13. [Text provided at the                                                               
end of the section of minutes pertaining to HB 23.]                                                                             
                                                                                                                                
CHAIR JOHNSON objected.                                                                                                         
                                                                                                                                
9:37:06 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MIA COSTELLO,  Alaska State Legislature, explained                                                               
that  Amendment  1  transfers  the   Knik  Arm  Bridge  and  Toll                                                               
Authority  (KABATA) to  the  Alaska  Housing Finance  Corporation                                                               
(AHFC) as a subsidiary corporation.   The AHFC Board would become                                                               
KABATA's board and  AHFC would retain all the  powers the current                                                               
KABATA  Board  has.    Amendment  1  would  name  the  subsidiary                                                               
corporation  the Knik  Crossing  Development Corporation  (KCDC).                                                               
Most of  Amendment 1 is  conforming changes to  change references                                                               
from  "authority" to  "corporation".   Amendment  1 preserves  AS                                                           
19.75, which  is the enabling  statute for KABATA.   Furthermore,                                                               
Amendment  1 provides  for  a smooth  transition  of the  assets,                                                               
obligations,  rights,  titles, interest,  agreements,  contracts,                                                               
instruments,   indebtedness,   investments,  leases,   real   and                                                               
personal property,  lines of credit, gifts,  grants, loans, fees,                                                               
rents,   tolls,  civil   actions,   revenue,  funds,   insurance,                                                               
licenses, permits,  studies, and  intellectual property  to AHFC.                                                               
Amendment 1  would also  automatically transfer  KABATA's current                                                               
budget.  Additionally, Amendment 1  allows for the current KABATA                                                               
Board to  serve as an  advisory board to  the KCDC Board  for one                                                               
year.    Representative Costello  told  the  committee that  this                                                               
bridge has been discussed since  before statehood and the purpose                                                               
of Amendment  1 is to  bring the best  team forward.   She opined                                                               
that  marrying  the  KABATA Board  with  AHFC's  experience  will                                                               
provide solid  footing for  this project  moving forward.   Under                                                               
the proposal  in Amendment 1, there  would be new energy  as AHFC                                                               
reviews all of the activities,  returns to the legislature with a                                                               
report,  and works  hand-in-hand with  the individuals  currently                                                               
working on this project.   In conclusion, Representative Costello                                                               
encouraged the committee to seriously consider Amendment 1.                                                                     
                                                                                                                                
9:40:56 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked whether  anyone will  discuss the                                                               
legal changes of  Amendment 1, including liability  for debts and                                                               
anything else that may be created  as a result of this amendment.                                                               
Representative  Gruenberg  expressed  concern  regarding  whether                                                               
AHFC will be  responsible for any of KABATA's  existing or future                                                               
debts.    He  expressed  further concern  with  the  relationship                                                               
between KABATA and the proposed new entity, KCDC.                                                                               
                                                                                                                                
9:42:21 AM                                                                                                                    
                                                                                                                                
CHAIR  JOHNSON related  his understanding  from  AHFC staff  that                                                               
additional language may need to be included.                                                                                    
                                                                                                                                
9:43:26 AM                                                                                                                    
                                                                                                                                
DAN  FAUSKE,  CEO/Executive   Director,  Alaska  Housing  Finance                                                               
Corporation  (AHFC),  Department  of Revenue;  President,  Alaska                                                               
Gasline   Development    Corporation   (AGDC),    responding   to                                                               
Representative Gruenberg,  began by noting that  since [Amendment                                                               
1] occurred late  in the day yesterday, he was  not completely up                                                               
to speed on  the matter.  In discussions with  counsel and others                                                               
today  regarding [Amendment  1], the  main goal  is to  take care                                                               
with what  is brought  into AHFC  in terms of  how it  matches up                                                               
with the  AA+ rating of AHFC  and how rating analysts  and others                                                               
view it  in terms of AHFC's  rating.  Therefore, much  care needs                                                               
to be taken with the language, which is under review now.                                                                       
                                                                                                                                
9:44:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  inquired as to the  legal relationships                                                               
between [AHFC  and KCDC] and  between KCDC  and KABATA.   He then                                                               
expressed the  need for there  to be  an understanding as  to how                                                               
well the  proposal in Amendment 1  fits with the mission  of AHFC                                                               
and its bond  rating.  He then questioned  whether the subsidiary                                                               
corporation  type  of   entity  is  the  best   choice  from  the                                                               
perspective of protecting the state and AHFC.                                                                                   
                                                                                                                                
MR. FAUSKE informed the committee  that when the Northern Tobacco                                                               
Securitization Corporation was created a  number of years ago, it                                                               
was created  as a  subsidiary corporation  and issued  bonds that                                                               
were solely  the responsibility of  the corporation of AHFC.   He                                                               
noted that AGDC was treated much  the same way.  Therefore, there                                                               
are ways to accomplish this.                                                                                                    
                                                                                                                                
9:47:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  expressed  another  concern  regarding                                                               
whether KCDC being  under AHFC would create  a potential conflict                                                               
of interest.                                                                                                                    
                                                                                                                                
MR.  FAUSKE, noting  that  he  did so  when  AHFC  took on  AGDC,                                                               
assured the committee  that the proposal in  Amendment 1 wouldn't                                                               
result in  anything suffering  due to some  additional work.   He                                                               
related his view that this is  a finance mechanism, and thus is a                                                               
solvable issue.                                                                                                                 
                                                                                                                                
9:48:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  inquired  as to  whether  AHFC's  team                                                               
needs time to review Amendment 1.                                                                                               
                                                                                                                                
MR. FAUSKE related  his belief that in a few  hours the committee                                                               
will see legislation that is very  similar to House Bill 369 from                                                               
the 26th  Alaska State  Legislature, which  enabled AGDC  to come                                                               
into existence.  Although  AHFC is busy with HB 4  and HB 50, the                                                               
AHFC  team is  fine and  can address  [Amendment 1]  in a  fairly                                                               
quick timeframe.                                                                                                                
                                                                                                                                
9:49:47 AM                                                                                                                    
                                                                                                                                
CHAIR  JOHNSON acknowledged  that this  proposal had  come before                                                               
AHFC very quickly, and therefore he  asked whether AHFC can do it                                                               
and still provide  the citizens of the state  and the legislature                                                               
a certain level of confidence that  this is moving forward in the                                                               
appropriate direction.                                                                                                          
                                                                                                                                
MR.  FAUSKE  answered absolutely,  but  highlighted  the need  to                                                               
study [the proposal in Amendment 1].   He mentioned that he knows                                                               
some of those involved  with KABATA and he has a  lot of faith in                                                               
their capabilities and  thus will seek their  guidance in putting                                                               
together an appropriate package.                                                                                                
                                                                                                                                
9:50:38 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG inquired  as to how AHFC  will deal with                                                               
KABATA's less than stellar rating in its recent audit.                                                                          
                                                                                                                                
MR.  FAUSKE answered  that  AHFC will  analyze  and discuss  [the                                                               
audit]  with  those involved  with  KABATA  to determine  whether                                                               
there  are  issues  that  can  be solved  or  whether  there  are                                                               
misunderstandings or overstatements in the audit.                                                                               
                                                                                                                                
9:51:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MARK NEUMAN,  Alaska State  Legislature, speaking                                                               
as one of  the joint prime sponsors  of HB 23, stated  that HB 23                                                               
encompasses six  years' worth of  work that has  been scrutinized                                                               
by   various   entities,   including  the   administration,   the                                                               
Department of  Law (DOL),  the Department  of Revenue  (DOR), and                                                               
the Department of Transportation  & Public Facilities (DOT&PF) to                                                               
ensure  that  the  state's  interests are  protected.    He  then                                                               
expressed  concern  that  there  seems  to be  a  need  to  place                                                               
[KABATA] under  AHFC because  of a  public perception.   However,                                                               
there will always  be folks, he opined, who oppose  projects.  In                                                               
fact,  some have  said  that  if this  project  went through  the                                                               
military base, they  wouldn't object to it at all.   He expressed                                                               
further concern  with the unknown impacts  of last-minute changes                                                               
and noted  that the governor  is fully onboard with  CSHB 23(FIN)                                                               
because of  his faith in  his staff.  Representative  Neuman then                                                               
related the need  to ensure that the reserve fund  is in place in                                                               
order   for  the   Transportation   Infrastructure  Finance   and                                                               
Innovation  Act  of  1998  (TIFIA)  loan  to  proceed,  which  is                                                               
projected to  be let  in the next  three months.   At stake  is a                                                               
TIFIA loan at  a low interest rate in the  amount of $350 million                                                               
to  the private  partner from  the federal  government to  ensure                                                               
that the  tariff rates are  low, which  is not dissimilar  to the                                                               
efforts to ensure  that the rates for in-state gas  are low under                                                               
HB  4.   Furthermore, [CSHB  23(FIN)] includes  an increase  from                                                               
$500  million  to  $600  million in  federal  funds  for  private                                                               
activity  bonds  that  would  go  to the  private  partner.    He                                                               
reiterated  the need  to  ensure the  state  doesn't risk  losing                                                               
those  funds to  build this  road project  and maintain  the best                                                               
toll  rate for  Alaskans.   He  also expressed  concern with  the                                                               
message the  [adoption of  Amendment 1]  would send  to industry.                                                               
Representative Neuman  opined that having only  recently reviewed                                                               
Amendment  1, he  doesn't know  exactly what  it does  to HB  23.                                                               
However, for  the last  three years, the  best people  Alaska has                                                               
have scrutinized HB  23 and even reached out  to CitiGroup Global                                                               
Markets Inc. ("CitiGroup"), one  of the most recognized financial                                                               
institutions in the world, to be  used as an advisor [to KABATA].                                                               
[The  KABATA]   has  secured  the   financial  advice   of  David                                                               
Livingstone, CitiGroup,  who has put  together 48 3P  projects in                                                               
his career.   Mr.  Livingstone is the  head 3P  project developer                                                               
design for CitiGroup as a  financial advisor.  The financials for                                                               
KABATA, he stressed,  are very complete and are  [the product] of                                                               
some  of  the  best  in  the world.    He  highlighted  that  Mr.                                                               
Livingstone, CitiGroup,  and Mr.  Stark, Department of  Law, have                                                               
worked  on HB  23 for  five  years.   Representative Neuman  then                                                               
stressed  concern  regarding  the  possibility of  delay  of  the                                                               
project that would  cause Alaska to lose this  project because of                                                               
politics.                                                                                                                       
                                                                                                                                
9:59:30 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN then  referred  to the  report written  by                                                               
Kris Curtis, Legislative Auditor,  Legislative Audit Division, in                                                               
which she states that "traffic  projections are based on economic                                                               
assumptions  and data  that are  unreasonably optimistic,"  which                                                               
sets a tone for the reader.   The report, however, actually says,                                                               
"This  also suggests  that [Wilbur  Smith  and Associates]  WSA's                                                               
projections may  be somewhat optimistic."   The report  also says                                                               
to base  it on the ISER  toll revenues.  The  2009 [ISER] traffic                                                               
projections for 2010  were 80,300 with a total  for Anchorage and                                                               
the  Mat-Su of  368,600.    The actual  census  report was  about                                                               
89,000 and thus ISER was about  9,000 under the actual count with                                                               
a total of  381,000.  He then related that  the KABATA projection                                                               
for  2035  was  191,000,  while  the  2009  ISER  projection  was                                                               
171,000.   If  one takes  into account  the 9,000  that ISER  was                                                               
short from the 2010 census and  correlates and corrects it to the                                                               
actual census,  the KABATA and  ISER difference is 103  people in                                                               
the year 2035.  Those  projections are fairly close, he remarked.                                                               
Representative Neuman  stressed that  there hasn't been  a chance                                                               
to discuss the real numbers, which he opined is important.                                                                      
                                                                                                                                
REPRESENTATIVE  NEUMAN  stated  that  there  have  been  supplied                                                               
estimates of total  revenue starting in 2017 at  $6,700, which he                                                               
characterized as fairly low.   Furthermore, the projection on out                                                               
growth  doesn't include  any chance  of a  pipeline being  built.                                                               
The  Alaska  Stand  Alone  Pipeline (ASAP)  is  projected  to  be                                                               
constructed at  Point MacKenzie,  which is  where this  bridge is                                                               
planned  to  cross  and  where   there  is  14  square  miles  of                                                               
industrial land.   Due to the aforementioned,  he suggested there                                                               
will  likely be  more expansion  and  growth than  there is  now.                                                               
Returning to  Amendment 1,  Representative Neuman  reiterated his                                                               
concern  regarding  whether  it  will cause  a  "hiccup"  in  the                                                               
availability  of  approximately  $950   million  in  federal  low                                                               
interest loans  to the private partner  of this project.   Such a                                                               
delay will  kill this project,  he opined.   He pointed  out that                                                               
HB 23 has a  zero fiscal note and allows DOL,  DOR, and DOT&PF to                                                               
put forth  a request  for proposals (RFP)  that states  a maximum                                                               
moral obligation of $1.14 billion.   The aforementioned, he said,                                                               
is the  absolute worst  case scenario  in terms  of cost  and Mr.                                                               
Stark testified  in the House  Finance Committee that  the chance                                                               
of  that is  5  percent.   More likely,  this  project will  come                                                               
online on time due to the  professionals that work for the state,                                                               
he opined.   Representative  Neuman stated  that he  will support                                                               
Amendment 1  if the  administration, Mr.  Fauske, and  Mr. Foster                                                               
find  there  is no  problem  with  delaying  the project  and  no                                                               
problem with  the loss of  [the TIFIA]  funds.  However,  if it's                                                               
determined the  project will be  delayed, which  will essentially                                                               
kill  the project,  then  he can't  support Amendment  1.   As  a                                                               
member of  the Mat-Su  delegation, Representative  Neuman pointed                                                               
out that there  are 13,000 people driving down  the Glenn Highway                                                               
daily and their lives are put on the line.                                                                                      
                                                                                                                                
10:07:34 AM                                                                                                                   
                                                                                                                                
CHAIR  JOHNSON  requested  that Representative  Neuman  speak  to                                                               
Amendment 1 and offer his concluding remarks.                                                                                   
                                                                                                                                
10:07:42 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN reiterated that  he can support Amendment 1                                                               
if it  doesn't delay the  project or  place the federal  funds at                                                               
risk.                                                                                                                           
                                                                                                                                
10:08:21 AM                                                                                                                   
                                                                                                                                
MICHAEL  FOSTER,  Chair,  Board  of  Directors,  KABATA,  related                                                               
opposition to Amendment  1.  He told the committee  that he first                                                               
learned of Amendment 1 in  a meeting Saturday in Senator Huggins'                                                               
office  with Representatives  Costello, Pruitt,  and Holmes.   In                                                               
discussions regarding  the purpose  of Amendment  1, he  was told                                                               
that it's all about credibility  and that KABATA's credibility is                                                               
lacking.  Mr. Foster,  noting that  he  is a  volunteer not  paid                                                               
staff,  related his  belief that  the credibility  of KABATA  has                                                               
[improved]  since   he  took  over   four  to  five   years  ago.                                                               
Furthermore,  adding this  project to  AHFC at  a point  at which                                                               
it's close  to reality is an  added burden.  Moreover,  KABATA is                                                               
transportation and  is different  than dealing with  pipelines or                                                               
housing,  with  which AHFC  deals.    Mr. Foster  reiterated  his                                                               
opposition to  Amendment 1.  If  the sole purpose of  Amendment 1                                                               
is  to  strengthen the  credibility  of  KABATA, he  passionately                                                               
requested  that the  committee not  pass Amendment  1 but  rather                                                               
pass the  legislation as approved  by the governor and  allow the                                                               
project to move  forward.  Mr. Foster assured  the committee that                                                               
the credibility  of KABATA will  be strengthened and  the project                                                               
will be a  success.  Furthermore, he couldn't recall  any time in                                                               
the past  three years when  KABATA's credibility had  been called                                                               
into   question,  rather   he   recalled   quite  the   opposite.                                                               
Therefore, he characterized Amendment 1  as throwing the baby out                                                               
with the  bath water.   If the  desire is to  strengthen KABATA's                                                               
credibility, he  urged the committee  to pass the  legislation as                                                               
it will  strengthen KABATA's credibility  in the market  and with                                                               
the federal government related to the TIFIA funds.                                                                              
                                                                                                                                
10:12:45 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  HERRON inquired  as to  KABATA's response  to the                                                               
auditor.                                                                                                                        
                                                                                                                                
MR.  FOSTER   informed  the  committee  that   KABATA  had  three                                                               
opportunities  to respond  to the  Legislative  Budget and  Audit                                                               
Committee  through  the  pre-management  letter,  the  management                                                               
letter,  and  the  preliminary  report.   He  then  directed  the                                                               
committee's  attention to  Appendix D  on page  37 of  the audit,                                                               
which is the  Legislative Budget and Audit  Committee's review of                                                               
their model  versus KABATA's model.   The Legislative  Budget and                                                               
Audit Committee  model is  based on local  micro economics.   The                                                               
KABATA  model   is  based  on   regional  economics  that   is  a                                                               
traditional  job growth  model  linked to  local conditions,  and                                                               
thus is  based on  Anchorage, Wasilla, Fairbanks,  and Knik.   He                                                               
highlighted  that  the  Legislative Budget  and  Audit  Committee                                                               
model states  that there  are smaller  amounts of  residential in                                                               
the  [Knik  Goose  Bay]  KGB   corridor.    However,  Mr.  Foster                                                               
emphasized that  the KGB corridor  is one of the  fastest growing                                                               
regions  as exemplified  by the  increase in  transportation from                                                               
12,000 to  18,000 in  10 years.   Furthermore, the  Fairview area                                                               
would  be the  fourth largest  city in  the state  if it  were to                                                               
incorporate.    The KABATA model, on the other  hand, is based on                                                               
a larger  amount of residential  of KGB  with the effects  of the                                                               
bridge.   Mr. Foster said that  he could go through  [Appendix D]                                                               
point-by-point.   The difference between  the models is  that the                                                               
Legislative Budget  and Audit Committee  used the  Mat-Su Borough                                                               
School District  model as  its basis,  which doesn't  include the                                                               
impacts of  the Knik Arm  Crossing.   He related that  the reason                                                               
for the aforementioned is because at  the time of the model, they                                                               
couldn't  determine  for  certain  when [the  Knik  Arm  Crossing                                                               
impact]  would  occur.   Therefore,  the  Legislative Budget  and                                                               
Audit  Committee  model  is  based on  no  social,  economic,  or                                                               
demographic growth in the Knik  Goose Bay Point MacKenzie area as                                                               
a result of  the crossing.  However, KABATA's  model and analysis                                                               
does include the  Knik Arm Crossing.  Appendix D  on page 37 sums                                                               
it up,  he stressed.   He agreed with Representative  Neuman that                                                               
there is  a large  difference between  "unreasonably optimistic,"                                                               
which is  supposed to be  an unbiased opinion by  the Legislative                                                               
Budget  and  Audit  Committee,   and  the  "somewhat  optimistic"                                                               
opinion of  the consultant.   He  pointed out  that later  in the                                                               
report  the consultant  says that  [KABATA's]  regional model  is                                                               
probably fairer  than a  local model.   However, as  a one-person                                                               
shop out  of Arizona,  the consultant  has limited  resources and                                                               
time.   Furthermore, the consultant  doesn't even know  where the                                                               
project  is located  as illustrated  by the  cover photograph  of                                                               
Turnagain Arm rather than Knik Arm.                                                                                             
                                                                                                                                
10:16:04 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HERRON then  inquired as to when  the P3 agreement                                                               
will be final.                                                                                                                  
                                                                                                                                
MR. FOSTER  answered that the  P3 agreement won't be  final until                                                               
the legislation  is known because  it's part of the  RFP process.                                                               
Once the legislation  is known and can be offered  to the private                                                               
developer,  the RFP  can be  completed, which  he estimated  will                                                               
take  2-3  months  to  complete  through DOL.    At  that  point,                                                               
sometime in the summer it should be issued.                                                                                     
                                                                                                                                
10:16:41 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE HAWKER opined that if there  is going to be such a                                                               
severe  indictment of  the state  legislative auditor  in public,                                                               
she  should be  given  the  chance to  respond.    The audit,  he                                                               
stated,  was conducted  by and  in  accordance with  professional                                                               
auditing standards.                                                                                                             
                                                                                                                                
CHAIR JOHNSON agreed to do so  when the committee returns to this                                                               
issue.                                                                                                                          
                                                                                                                                
10:17:30 AM                                                                                                                   
                                                                                                                                
CHAIR JOHNSON  announced that the  committee would recess  to the                                                               
call of chair.                                                                                                                  
                                                                                                                                
[The adoption of Amendment 1 to  HB 23 with an objection by Chair                                                               
Johnson was left pending.  HB 23 was held over.]                                                                                
                                                                                                                                
                  Amendment 1 to CSHB 23(FIN)                                                                               
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "relating to bonds of the Knik Arm Bridge                                                                    
     and Toll Authority"                                                                                                      
          Insert "creating the Knik Crossing Development                                                                      
       Corporation as a subsidiary of the Alaska Housing                                                                      
       Finance Corporation; relating to bonds of the Knik                                                                     
     Crossing Development Corporation"                                                                                        
                                                                                                                                
     Page 1, line 2:                                                                                                            
          Delete "authority"                                                                                                  
          Insert "corporation"                                                                                                
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "authority"                                                                                                  
          Insert "corporation"                                                                                                
          Delete "Arm"                                                                                                        
                                                                                                                                
     Page 1, following line 5:                                                                                                  
          Insert new bill sections to read:                                                                                     
        "* Section  1. AS 18.56.086 is  amended by  adding a                                                                
     new subsection to read:                                                                                                    
          (b)    The  corporation   shall  create  the  Knik                                                                    
     Crossing  Development   Corporation  as   a  subsidiary                                                                    
     corporation. The board shall  be the board of directors                                                                    
     of  the Knik  Crossing Development  Corporation and  is                                                                    
     authorized to  exercise all the  powers and  duties set                                                                    
     out in AS 19.75.                                                                                                           
        * Sec. 2. AS 19.75.011 is amended to read:                                                                            
          Sec.  19.75.011.  Purpose.   The  purpose  of  the                                                                  
     corporation [AUTHORITY]  created by this chapter  is to                                                                
     develop,  stimulate, and  advance the  economic welfare                                                                    
     of  the state  and  further the  development of  public                                                                    
     transportation  systems in  the vicinity  of the  Upper                                                                    
     Cook Inlet with  construction of a bridge  to span Knik                                                                    
     Arm and  connect the Municipality of  Anchorage and the                                                                    
     Matanuska-Susitna Borough.                                                                                                 
        * Sec. 3. AS 19.75.021(a)  is repealed and reenacted                                                                  
     to read:                                                                                                                   
          (a)   The  Knik  Crossing Development  Corporation                                                                    
     shall  be  a  subsidiary  corporation  created  by  the                                                                    
     Alaska Housing Finance Corporation under AS 18.56.086.                                                                     
        * Sec. 4. AS 19.75.021(b) is amended to read:                                                                         
          (b)    The  corporation  [AUTHORITY]  may  not  be                                                                
     terminated as  long as  it has  bonds, notes,  or other                                                                    
     obligations  outstanding.   Upon  termination   of  the                                                                    
     corporation [AUTHORITY],  its rights and  property pass                                                                
     to the Alaska Housing Finance Corporation [STATE].                                                                     
        * Sec. 5. AS 19.75.031  is repealed and reenacted to                                                                  
     read:                                                                                                                      
          Sec.    19.75.031.   Board    of   directors    of                                                                  
     corporation.  The board  of  directors  for the  Alaska                                                                  
     Housing  Finance  Corporation  shall be  the  board  of                                                                    
     directors   for    the   Knik    Crossing   Development                                                                    
     Corporation.                                                                                                               
        * Sec. 6. AS 19.75.041(a) is amended to read:                                                                         
          (a)   The  powers of  the corporation  [AUTHORITY]                                                                
     are vested in the board.                                                                                                   
        * Sec. 7. AS 19.75.041(c) is amended to read:                                                                         
          (c)   [THE GOVERNOR SHALL DESIGNATE  ONE MEMBER OF                                                                    
     THE  BOARD TO  SERVE AS  THE CHAIR  OF THE  BOARD.] The                                                                    
     [VOTING] members of  the board shall elect  a chair and                                                                
     other officers they determine desirable.                                                                                   
        * Sec. 8. AS 19.75.051 is amended to read:                                                                            
          Sec.    19.75.051.    Executive   director.    The                                                                  
     corporation  [AUTHORITY]  shall   employ  an  executive                                                                
     director  who may  not be  a member  of the  board. The                                                                    
     executive director  shall serve at the  pleasure of the                                                                    
     board.  The  board  shall   establish  the  duties  and                                                                    
     compensation of the executive director.                                                                                    
        * Sec. 9. AS 19.75.081 is amended to read:                                                                            
          Sec. 19.75.081. Legal advisor. The attorney                                                                         
     general  is  the  legal  counsel  for  the  corporation                                                                
     [AUTHORITY].  The  attorney  general shall  advise  the                                                                    
     corporation [AUTHORITY] in  legal matters and represent                                                                
     it in suits.                                                                                                               
        * Sec. 10. AS 19.75.111 is amended to read:                                                                           
          Sec. 19.75.111. Powers and duties of the                                                                            
     corporation  [AUTHORITY].   (a)  Except   as  otherwise                                                                
     explicitly   made   applicable   to   the   corporation                                                                
     [AUTHORITY],  the  performance   of  the  corporation's                                                                
     [AUTHORITY'S] duties  and the  exercise of  its powers,                                                                    
     including  its  powers  to issue  bonds  and  otherwise                                                                    
     incur  debt,  shall  be governed  exclusively  by  this                                                                    
     chapter.   In   furtherance   of  its   purposes,   the                                                                    
     corporation [AUTHORITY] may                                                                                            
               (1)  own, acquire, construct, develop,                                                                           
     create, reconstruct, equip,  operate, maintain, extend,                                                                    
     and  improve the  Knik Arm  bridge and  its appurtenant                                                                    
     facilities;                                                                                                                
               (2)  sue and be sued;                                                                                            
               (3)  adopt a seal;                                                                                               
               (4)  adopt, amend, and repeal regulations                                                                        
     under AS 44.62 and establish bylaws;                                                                                       
               (5)  make and execute agreements, contracts,                                                                     
     and all  other instruments  with any public  or private                                                                    
     person,  governmental unit  or agency,  corporation, or                                                                    
     other business  entity lawfully conducting  business in                                                                    
     the United  States for the  exercise of its  powers and                                                                    
     functions  under this  chapter and  for the  financing,                                                                    
     design,  construction,   maintenance,  improvement,  or                                                                    
     operation  of facilities,  properties,  or projects  of                                                                    
     the  corporation  [AUTHORITY],   including  making  and                                                                
     executing    contracts   with    any   person,    firm,                                                                    
     corporation, governmental  agency, or other  entity for                                                                    
     the purpose of                                                                                                             
               (A)  incurring indebtedness, obtaining                                                                           
     investments   in    the   corporation's   [AUTHORITY'S]                                                                
     projects, acquiring  or granting lump sum  payments for                                                                    
     services in  advance or in  arrears, grants,  and other                                                                    
     financing; and                                                                                                             
               (B)        entering    into    public-private                                                                    
     partnerships or service contracts in any form;                                                                             
               (6)   in its own  name acquire,  lease, rent,                                                                    
     sell, or convey real and personal property;                                                                                
               (7)   issue  and refund  bonds in  accordance                                                                    
     with  this chapter,  in order  to pay  the cost  of the                                                                    
     Knik  Arm bridge  and its  appurtenant facilities;  the                                                                    
     corporation [AUTHORITY] may also  secure payment of the                                                                
     bonds as provided in this chapter;                                                                                         
               (8)    incur  other  indebtedness,  including                                                                    
     lines  of  credit  and   indebtedness  to  the  Federal                                                                    
     Highway  Administration,  United States  Department  of                                                                    
     Transportation,   under    23   U.S.C.   601    -   610                                                                    
     (Transportation  Infrastructure Finance  and Innovation                                                                    
     Act of 1998), as  amended, and secure that indebtedness                                                                    
     as provided in this chapter;                                                                                               
               (9)   apply for and accept  gifts, grants, or                                                                    
     loans   from  a   federal  agency   or  an   agency  or                                                                    
     instrumentality of  the state, or from  a municipality,                                                                    
     private  organization,   or  other   source,  including                                                                    
     obtaining   title  to   state,  local   government,  or                                                                    
     privately owned land, directly  or through a department                                                                    
     of the state having jurisdiction of the land;                                                                              
               (10)   fix  and collect  fees, rents,  tolls,                                                                    
     rates, or  other charges  for the use  of the  Knik Arm                                                                    
     bridge  and appurtenant  facilities, or  for a  service                                                                    
     developed,  operated, or  provided  by the  corporation                                                                
     [AUTHORITY];  notwithstanding   AS 37.10.050(a),  fees,                                                                    
     rents,  tolls,  rates,  and  other  charges  fixed  and                                                                    
     collected under  this paragraph  may exceed  the actual                                                                    
     operating cost of  the use of the  bridge, facility, or                                                                    
     service;                                                                                                                   
               (11)   bring  civil  actions, refer  criminal                                                                    
     actions to  the appropriate  authority, and  take other                                                                    
     actions or  enter into agreements with  law enforcement                                                                    
     and collection  agencies to  enforce the  collection of                                                                    
     its   fees,  rents,   tolls,   rates,  other   charges,                                                                    
     penalties, and other obligations;                                                                                          
               (12)      pledge,  encumber,   transfer,   or                                                                    
     otherwise obligate  revenue derived by  the corporation                                                                
     [AUTHORITY] from  the ownership,  use, or  operation of                                                                    
     toll facilities,  including fees, rents,  tolls, rates,                                                                    
     charges,   or   other   revenue  of   the   corporation                                                                
     [AUTHORITY]   or  money   that   the  legislature   may                                                                    
     appropriate,  except   a  state  tax  or   license,  as                                                                    
     security for bonds or  other indebtedness or agreements                                                                    
     of the corporation [AUTHORITY];                                                                                        
               (13)   deposit or  invest its  funds, subject                                                                    
     to agreements with bondholders;                                                                                            
               (14)   procure insurance against any  loss in                                                                    
     connection with its operation;                                                                                             
               (15)   contract for  and engage  the services                                                                    
     of  consultants, experts,  and financial  and technical                                                                    
     advisors  that  the corporation  [AUTHORITY]  considers                                                                
     necessary for the exercise of  its powers and functions                                                                    
     under this chapter;                                                                                                        
               (16)    apply  for,  obtain,  hold,  and  use                                                                    
     permits,  licenses,   or  approvals   from  appropriate                                                                    
     agencies  of the  state, the  United States,  a foreign                                                                    
     country,  and  any  other proper  agency  in  the  same                                                                    
     manner as any other person;                                                                                                
               (17)    perform  reconnaissance  studies  and                                                                    
     engineering,  survey, and  design studies  with respect                                                                    
     to the Knik Arm bridge and its appurtenant facilities;                                                                     
               (18)   exercise powers  of eminent  domain or                                                                    
     file a declaration of taking  as necessary for the Knik                                                                    
     Arm   bridge    and   appurtenant    facilities   under                                                                    
     AS 09.55.240  -   09.55.460  to  acquire  land   or  an                                                                    
     interest  in  land;   the  corporation's  [AUTHORITY'S]                                                                
     exercise of powers under this  paragraph may not exceed                                                                    
     the permissible exercise of those powers by the state;                                                                     
               (19)     confer  with  municipal   and  other                                                                    
     governments,  metropolitan planning  organizations, and                                                                    
     the department, concerning the Knik Arm bridge;                                                                            
               (20)   do  all acts  and things  necessary to                                                                    
     carry out  the powers expressly granted  or necessarily                                                                    
     implied  in  this  chapter;  nothing  in  this  chapter                                                                    
     limits the  powers of the corporation  [AUTHORITY] that                                                                
     are expressly granted or necessarily implied.                                                                              
          (b)  The corporation [AUTHORITY] shall                                                                            
               (1)     prepare  an  annual  report   of  its                                                                    
     operations  to  include  a  balance  sheet,  an  income                                                                    
     statement,   a  statement   of  changes   in  financial                                                                    
     position,  a   reconciliation  of  changes   in  equity                                                                    
     accounts,   a   summary   of   significant   accounting                                                                    
     principles,  an  auditor's report,  comments  regarding                                                                    
     the year's  business, and prospects for  the next year;                                                                    
     the report shall be completed  by the third day of each                                                                    
     regular   session   of   the   legislature,   and   the                                                                    
     corporation [AUTHORITY] shall  notify the governor, the                                                                
     commissioner of the  department, the presiding officers                                                                    
     of each  house of the legislature,  and the Legislative                                                                    
     Budget  and   Audit  Committee   that  the   report  is                                                                    
     available;                                                                                                                 
               (2)  comply with the provisions of AS 37.07                                                                      
     (Executive Budget  Act), except that AS 37.07  does not                                                                    
     apply to the activities  of the corporation [AUTHORITY]                                                                
     that   relate   to  the   corporation's   [AUTHORITY'S]                                                                
     borrowing  of  money  as   provided  in  this  chapter,                                                                    
     including the  issuing of  its obligations  or evidence                                                                    
     of  that  borrowing  and  the  repayment  of  the  debt                                                                    
     obligation;                                                                                                                
               (3)  establish a personnel management system                                                                     
     for  hiring  employees   and  setting  employee-benefit                                                                    
     packages;                                                                                                                  
               (4)  establish procedures, rules, and rates                                                                      
     governing  per   diem  and   travel  expenses   of  the                                                                    
     employees   of    the   corporation    [AUTHORITY]   in                                                                
     substantial conformity to  statutes, procedures, rules,                                                                    
     and  rates applicable  to  state  employees of  similar                                                                    
     state entities;                                                                                                            
               (5)  coordinate the exercise of its powers                                                                       
     to plan,  design, construct, operate, and  maintain the                                                                    
     Knik  Arm  bridge with  the  department,  and with  the                                                                    
     mayors  of  the  Municipality   of  Anchorage  and  the                                                                    
     Matanuska-Susitna Borough;                                                                                                 
               (6)  have the exclusive authority to                                                                             
     determine and fix fees, rents,  tolls, rates, and other                                                                    
     charges, including the tolls for  the use of the bridge                                                                    
     and  appurtenant  facilities and  for  the  use of  all                                                                    
     other  properties  under the  control  of  or owned  or                                                                    
     managed by the corporation [AUTHORITY].                                                                                
        * Sec. 11.  AS 19.75.113 is amended to read:                                                                          
          Sec. 19.75.113. Assets, funds, and revenue of the                                                                   
     corporation [AUTHORITY]. (a)  The Department of Revenue                                                                
     shall  separately account  for all  funds, assets,  and                                                                    
     revenue of the corporation [AUTHORITY].                                                                                
          (b)  The deposit or investment of money in the                                                                        
     corporation's [AUTHORITY'S]  funds may  be made  as the                                                                
     board  determines. The  interest earned  on or  profits                                                                    
     derived  from the  deposit, investment,  or sale  of an                                                                    
     investment by the corporation  [AUTHORITY] are funds of                                                                
     the corporation [AUTHORITY]."                                                                                          
                                                                                                                                
     Page 1, line 6:                                                                                                            
          Delete "Section 1"                                                                                                  
          Insert "Sec. 12"                                                                                                    
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 1, line 7:                                                                                                            
          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
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          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 2, following line 2:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 13. AS 19.75.211(b) is amended to read:                                                                     
          (b)  The bonds of the corporation [AUTHORITY] may                                                                 
     be  sold in  the  amounts  or series  and  at the  time                                                                    
     determined  by  its board  of  directors.  Bonds, or  a                                                                    
     series  of bonds,  may  not be  sold  if the  effective                                                                    
     interest rate  over the  life of  the bonds  exceeds 11                                                                    
     percent  a year  or  a  rate of  interest  that is  125                                                                    
     percent  of the  rate of  the  Bond Buyer  Index of  20                                                                    
     Municipal Bond Average Yields for  the week previous to                                                                    
     the  date  of  the  sale of  the  bonds,  whichever  is                                                                    
     higher."                                                                                                                   
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, line 4:                                                                                                            
          Delete "authority"                                                                                                    
          Insert "corporation [AUTHORITY]"                                                                                  
                                                                                                                                
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          Insert "corporation"                                                                                                  
                                                                                                                                
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          Insert "corporation"                                                                                                  
                                                                                                                                
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          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 2, following line 23:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 16. AS 19.75.221(a) is amended to read:                                                                     
          (a)  In the discretion of the corporation                                                                         
     [AUTHORITY],  an issue  of bonds  may be  secured by  a                                                                    
     trust   indenture  or   trust  agreement   between  the                                                                    
     corporation [AUTHORITY]  and a corporate trustee,  by a                                                                
     secured  loan agreement  or other  instrument, or  by a                                                                    
     resolution  giving powers  to a  corporate trustee,  by                                                                    
     means of which the corporation [AUTHORITY] may                                                                         
               (1)  make agreements  with the trustee or the                                                                    
     holders of  the bonds that the  corporation [AUTHORITY]                                                                
     determines  to  be  necessary or  desirable,  including                                                                    
     agreements as to the                                                                                                       
               (A)   application, investment,  deposit, use,                                                                    
     and disposition of                                                                                                         
               (i)     the   proceeds   of   bonds  of   the                                                                    
     corporation [AUTHORITY];                                                                                               
               (ii)     money  or  other  property   of  the                                                                    
     corporation [AUTHORITY]; or                                                                                            
               (iii)   money or other property  in which the                                                                    
     corporation [AUTHORITY] has an interest;                                                                               
               (B)   fixing and  collecting of  fees, rents,                                                                    
     tolls, rates, or other charges;                                                                                            
               (C)      assignment    by   the   corporation                                                                
     [AUTHORITY] of its rights in  any contract with respect                                                                    
     to  the Knik  Arm  bridge  or in  a  mortgage or  other                                                                    
     security interest created with  respect to the Knik Arm                                                                    
     bridge to a trustee for the benefit of bondholders;                                                                        
               (D)   terms  and conditions  under which  the                                                                    
     corporation [AUTHORITY] may issue additional bonds;                                                                    
               (E)  vesting in  a trustee of rights, powers,                                                                    
     duties, money, or property in  trust for the benefit of                                                                    
     bondholders,  including the  right to  enforce payment,                                                                    
     performance, and  all other  rights of  the corporation                                                                
     [AUTHORITY]  or  of  the bondholders,  under  a  lease,                                                                    
     power   of  contract,   contract  of   sale,  mortgage,                                                                    
     security  agreement, or  trust by  injunction or  other                                                                    
     proceeding  or   by  taking  possession  by   agent  or                                                                    
     otherwise,  and  operating  the  Knik  Arm  bridge  and                                                                    
     collecting  rents or  other consideration  and applying                                                                    
     the same in accordance with the trust agreement;                                                                           
               (2)    pledge,  mortgage,  or  assign  money,                                                                    
     leases,  agreements,  property,   or  other  rights  or                                                                    
     assets of the  corporation [AUTHORITY] either presently                                                                
     in hand or to be received in the future, or both; and                                                                      
               (3)    provide  for any  other  matters  that                                                                    
     affect the security or protection of the bonds.                                                                            
        * Sec. 17. AS 19.75.221(b) is amended to read:                                                                        
          (b)  Notwithstanding any other provisions of this                                                                     
     chapter, the trust agreement  must contain an agreement                                                                    
     by  the corporation  [AUTHORITY]  that the  corporation                                                            
     [AUTHORITY]  will at  all times  maintain fees,  rents,                                                                    
     tolls, rates, or other charges sufficient to                                                                               
               (1)     pay  the   costs  of   operation  and                                                                    
     maintenance of the Knik Arm  bridge and its appurtenant                                                                    
     facilities and  the principal of and  interest on bonds                                                                    
     issued  under   the  trust   agreement  as   the  bonds                                                                    
     severally become due and payable;                                                                                          
               (2)   provide  for debt  service coverage  as                                                                    
     considered  necessary  by the  corporation  [AUTHORITY]                                                                
     for the marketing of its bonds; and                                                                                        
               (3)  provide  for renewals, replacements, and                                                                    
     improvements of  the Knik Arm  bridge, and  to maintain                                                                    
     reserves required by the terms of the trust agreement.                                                                     
        * Sec. 18. AS 19.75.221(c) is amended to read:                                                                        
          (c)  For the purpose of securing one or more                                                                          
     issues of  its bonds,  the corporation  [AUTHORITY] may                                                                
     establish one  or more  special funds,  called "capital                                                                    
     reserve  funds,"  and  shall  pay  into  those  capital                                                                    
     reserve funds  the proceeds  of the  sale of  its bonds                                                                    
     and  any   other  money  that   is  available   to  the                                                                    
     corporation  [AUTHORITY]  for  the  purposes  of  those                                                                
     funds.  The  funds shall  be  established  only if  the                                                                    
     corporation    [AUTHORITY]    determines    that    the                                                                
     establishment  would enhance  the marketability  of the                                                                    
     bonds.  All  money  held in  a  capital  reserve  fund,                                                                    
     except as  provided in this  section, shall be  used as                                                                    
     required solely  for (1) the  payment of  the principal                                                                    
     of  and  interest  on  bonds or  of  the  sinking  fund                                                                    
     payments with respect to those  bonds, (2) the purchase                                                                    
     or  redemption  of  bonds,  or (3)  the  payment  of  a                                                                    
     redemption  premium  required  to be  paid  when  those                                                                    
     bonds are  redeemed before maturity. However,  money in                                                                    
     a fund may  not be withdrawn from the fund  at any time                                                                    
     in an amount  that would reduce the amount  of the fund                                                                    
     to less  than the  capital reserve requirement  set out                                                                    
     in  (d) of  this  section, except  for  the purpose  of                                                                    
     making,  with respect  to  those  bonds, payment,  when                                                                    
     due, of  principal, interest, redemption  premiums, and                                                                    
     the  sinking fund  payments for  the  payment of  which                                                                    
     other  money  of  the corporation  [AUTHORITY]  is  not                                                                
     available. Income  or interest  earned by  or increment                                                                    
     to a capital reserve fund  due to the investment of the                                                                    
     fund  or  any   other  amounts  in  the   fund  may  be                                                                    
     transferred  by the  corporation  [AUTHORITY] to  other                                                                
     funds  or accounts  of the  corporation [AUTHORITY]  to                                                                
     the  extent  that  the transfer  does  not  reduce  the                                                                    
     amount of  the capital  reserve fund below  the capital                                                                    
     reserve fund requirement.                                                                                                  
        * Sec. 19. AS 19.75.221(d) is amended to read:                                                                        
          (d)  If the corporation [AUTHORITY] decides to                                                                    
     issue  bonds secured  by a  capital  reserve fund,  the                                                                    
     bonds may  not be issued  if the amount in  the capital                                                                    
     reserve fund  is less  than the  amount of  the capital                                                                    
     reserve  fund  requirement,   if  any,  established  by                                                                    
     resolution of  the corporation [AUTHORITY],  unless the                                                                
     corporation  [AUTHORITY], at  the time  of issuance  of                                                                
     the obligations,  deposits in the capital  reserve fund                                                                    
     from the  proceeds of the  obligations to be  issued or                                                                    
     from other  sources an amount  that, together  with the                                                                    
     amount  then in  the fund,  will not  be less  than the                                                                    
     capital reserve fund requirement.                                                                                          
        * Sec. 20. AS 19.75.221(f) is amended to read:                                                                        
          (f)  If the corporation [AUTHORITY] decides to                                                                    
     issue  bonds secured  by a  capital  reserve fund,  the                                                                    
     bonds  may  not  be  issued until  30  days  after  the                                                                    
     corporation [AUTHORITY] has  mailed notification to the                                                                
     state  bond committee  and the  Legislative Budget  and                                                                    
     Audit Committee  by certified mail of  its intention to                                                                    
     establish  a capital  reserve fund  to secure  the bond                                                                    
     issue. The notification must include  the amount of the                                                                    
     capital reserve  fund to be established,  the amount of                                                                    
     bonds proposed  to be  issued, and  the total  cost for                                                                    
     which  the bonds  are to  be  issued. The  notification                                                                    
     shall be accompanied by an  estimate by the corporation                                                                
     [AUTHORITY]  of the  need to  withdraw  money from  the                                                                    
     capital  reserve  fund  during  the term  of  the  bond                                                                    
     issue, the  amount that may  be necessary  to withdraw,                                                                    
     and the time  at which withdrawals are  estimated to be                                                                    
     needed.  By January 30  of each  year, the  corporation                                                                
     [AUTHORITY]  shall prepare,  and provide  to the  state                                                                    
     bond  committee and  the Legislative  Budget and  Audit                                                                    
     Committee,  a revised  estimate,  considering the  same                                                                    
     factors, and  a statement of all  withdrawals that have                                                                    
     occurred from the date of  issuance of the bonds to the                                                                    
     end of the preceding calendar year."                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
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          Insert "corporation [AUTHORITY]"                                                                                  
                                                                                                                                
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          Insert "sources [AUTHORITY]."                                                                                     
                                                                                                                                
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          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
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          Delete "authority" in both places                                                                                     
          Insert "corporation" in both places                                                                                   
                                                                                                                                
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          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
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          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
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          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
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          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 4, following line 16:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 23. AS 19.75.231 is amended to read:                                                                        
          Sec. 19.75.231. Validity of pledge. It is the                                                                       
     intention  of the  legislature that  a  pledge made  in                                                                    
     respect of bonds shall be  perfected and shall be valid                                                                    
     and binding from the time  the pledge is made, that the                                                                    
     money or  property so pledged  and after  that received                                                                    
     by  the corporation  [AUTHORITY]  shall immediately  be                                                                
     subject  to the  lien  of the  pledge without  physical                                                                    
     delivery  or further  act,  and that  the  lien of  the                                                                    
     pledge shall  be valid and binding  against all parties                                                                    
     having  claims  of  any  kind  in  tort,  contract,  or                                                                    
     otherwise    against   the    corporation   [AUTHORITY]                                                                
     irrespective  of  whether   the  parties  have  notice.                                                                    
     Neither the resolution, trust  agreement, nor any other                                                                    
     instrument  by  which  a  pledge  is  created  need  be                                                                    
     recorded or  filed under the provisions  of the Uniform                                                                    
     Commercial  Code in  order  to be  perfected  or to  be                                                                    
     valid, binding, or effective  against the parties. This                                                                    
     section  does not  affect title  to  or conveyances  of                                                                    
     real property, and does not  limit the applicability of                                                                    
     AS 40.17.080(b).                                                                                                           
        * Sec. 24. AS 19.75.241 is amended to read:                                                                           
          Sec. 19.75.241. Nonliability on bonds. (a)                                                                          
     Neither  the   members  of  the  board   nor  a  person                                                                    
     executing the  bonds of the corporation  [AUTHORITY] is                                                                
     liable  personally  on  the  bonds  or  is  subject  to                                                                    
     personal liability  or accountability by reason  of the                                                                    
     issuance of the bonds.                                                                                                     
          (b)  The bonds issued by the corporation                                                                          
     [AUTHORITY] do not constitute  an indebtedness or other                                                                    
     liability of  the state or  of a  political subdivision                                                                    
     of the  state other  than the  corporation [AUTHORITY],                                                                
     but shall be payable  solely from the income, receipts,                                                                    
     or  other   money  or   property  of   the  corporation                                                                
     [AUTHORITY].   All    documents   published    by   the                                                                    
     corporation  [AUTHORITY] or  to  which the  corporation                                                            
     [AUTHORITY]  is a  signatory  and used  in  or for  the                                                                    
     issuance of  bonds by the corporation  [AUTHORITY] must                                                                
     state that they are prepared  by or for the corporation                                                                
     [AUTHORITY].                                                                                                               
          (c)  The corporation [AUTHORITY] may not pledge                                                                   
     the  faith or  credit of  the state  or of  a political                                                                    
     subdivision  of the  state other  than the  corporation                                                                
     [AUTHORITY],  and  the  issuance   of  a  bond  by  the                                                                    
     corporation [AUTHORITY] does  not directly, indirectly,                                                                
     or  contingently  obligate  the state  or  a  political                                                                    
     subdivision of the state to  apply money from, levy, or                                                                    
     pledge any form of taxation  to the payment of the bond                                                                    
     or to  make payments due  on the bonds from  any source                                                                    
     of funds not pledged for repayment of the bonds.                                                                           
          (d)  Each obligation issued under this chapter                                                                        
     other  than a  state guaranteed  bond shall  contain on                                                                    
     its face  a statement that the  corporation [AUTHORITY]                                                                
     is  not obligated  to pay  it  nor the  interest on  it                                                                    
     except from  the revenue or  assets of  the corporation                                                                
     [AUTHORITY] and  that neither the faith  and credit nor                                                                    
     the  taxing power  of  the state  or  of any  political                                                                    
     subdivision of the  state is pledged to  the payment of                                                                    
     the principal of or the interest on the obligation.                                                                        
        * Sec. 25. AS 19.75.251 is amended to read:                                                                           
          Sec. 19.75.251. Pledge of the state. The state                                                                      
     pledges to and agrees with  the holders of bonds issued                                                                    
     under  this  chapter and  with  a  federal agency  that                                                                    
     loans or contributes  money in respect to  the Knik Arm                                                                    
     bridge  that the  state  will not  limit  or alter  the                                                                    
     rights   and   powers   vested   in   the   corporation                                                                
     [AUTHORITY] under this chapter  to fulfill the terms of                                                                    
     a  contract made  by the  corporation [AUTHORITY]  with                                                                
     the holders or federal agency  or in any way impair the                                                                    
     rights  and remedies  of the  holders until  the bonds,                                                                    
     together with  the interest on  them, with  interest on                                                                    
     unpaid  installments of  interest,  and  all costs  and                                                                    
     expenses in connection with an  action or proceeding by                                                                    
     or  on  behalf  of  the  holders,  are  fully  met  and                                                                    
     discharged.  The  corporation [AUTHORITY]  may  include                                                                
     this pledge and  agreement of the state,  insofar as it                                                                    
     refers  to   holders  of   bonds  of   the  corporation                                                                
     [AUTHORITY],  in  a  contract  with  the  holders  and,                                                                    
     insofar  as  it  relates  to a  federal  agency,  in  a                                                                    
     contract with the federal agency."                                                                                         
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 4, line 19:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation [AUTHORITY]"                                                                                  
                                                                                                                                
                                                                                                                                
     Page 4, line 28:                                                                                                           
          Delete "authority"                                                                                                
          Insert "corporation"                                                                                              
                                                                                                                                
     Page 4, line 30:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation [AUTHORITY]"                                                                                  
                                                                                                                                
     Page 5, following line 11:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 27. AS 19.75.271 is amended to read:                                                                        
          Sec. 19.75.271. Bonds legal investments for                                                                         
     fiduciaries. The  bonds of the  corporation [AUTHORITY]                                                              
     are securities in which all  public officers and bodies                                                                    
     of  the  state  and all  municipalities  and  municipal                                                                    
     subdivisions, all insurance  companies and associations                                                                    
     and other  persons carrying  on an  insurance business,                                                                    
     all  banks, bankers,  trust  companies, savings  banks,                                                                    
     savings  associations,   including  savings   and  loan                                                                    
     associations  and   building  and   loan  associations,                                                                    
     investment  companies, and  other  persons carrying  on                                                                    
     banking   business,   all  administrators,   guardians,                                                                    
     executors, trustees,  and other fiduciaries,  and other                                                                    
     persons who are  now or may afterward  be authorized to                                                                    
     invest in bonds  or other obligations of  the state may                                                                    
     properly  and legally  invest money,  including capital                                                                    
     in their control or  belonging to them. Notwithstanding                                                                    
     any  other   provision  of  law,   the  bonds   of  the                                                                    
     corporation  [AUTHORITY] are  also securities  that may                                                                
     be deposited  with and  may be  received by  all public                                                                    
     officers   and   bodies   of    the   state   and   all                                                                    
     municipalities  and  municipal   subdivisions  for  any                                                                    
     purpose  for  which  the  deposit  of  bonds  or  other                                                                    
     obligations of  the state  is now  or may  afterward be                                                                    
     authorized.                                                                                                                
        * Sec. 28. AS 19.75.281 is amended to read:                                                                           
          Sec. 19.75.281. Audit. The legislative auditor                                                                      
     annually  shall audit,  or cause  to have  audited, the                                                                    
     financial records  of the corporation  [AUTHORITY]. The                                                                
     legislative auditor may prescribe  the form and content                                                                    
     of   the   financial   records   of   the   corporation                                                                
     [AUTHORITY] and  shall have access to  these records at                                                                    
     any reasonable time.                                                                                                       
        * Sec. 29. AS 19.75.301 is amended to read:                                                                           
          Sec.   19.75.301.   Insurance.   The   corporation                                                              
     [AUTHORITY]  shall  keep   in  force  public  liability                                                                    
     insurance in  an amount reasonably calculated  to cover                                                                    
     potential   claims   for   bodily  injury,   death   or                                                                    
     disability, and property damage  that may arise from or                                                                    
     be related to its  operation and activities, naming the                                                                    
     state as an additional insured.                                                                                            
        * Sec. 30. AS 19.75.311 is amended to read:                                                                           
          Sec. 19.75.311. Safeguarding of money. The                                                                          
     corporation  [AUTHORITY]  shall maximize  revenue  from                                                                
     and  deposit all  money in  depositories acceptable  to                                                                    
     the  commissioner of  revenue  and otherwise  safeguard                                                                    
     the  money under  instructions as  the commissioner  of                                                                    
     revenue may from time to time issue.                                                                                       
        * Sec. 31. AS 19.75.321 is amended to read:                                                                           
          Sec. 19.75.321. Fidelity bond. The corporation                                                                  
     [AUTHORITY] shall  obtain a fidelity bond  in an amount                                                                    
     determined by the  board, for the members  of the board                                                                    
     and   any   official    responsible   for   corporation                                                                
     [AUTHORITY] accounts  and finances.  A bond must  be in                                                                    
     effect for the tenure of the bonded person.                                                                                
        * Sec. 32. AS 19.75.330(a) is amended to read:                                                                        
          (a)  The bonds of the corporation [AUTHORITY]                                                                     
     mature at  the time fixed  by the board. The  bonds may                                                                    
     be subject to redemption  before their fixed maturities                                                                    
     as  determined by  the board,  or by  the corporation's                                                                
     [AUTHORITY'S]  executive director  when delegated  that                                                                    
     responsibility   under  AS 19.75.332,   and  with   the                                                                    
     premium  fixed by  the board,  but  a bond  may not  be                                                                    
     subject to  redemption before  its fixed  maturity date                                                                    
     unless  the  right to  redeem  that  bond is  expressly                                                                    
     mentioned on the face of the bond. The bonds                                                                               
               (1)  may be in denominations determined by                                                                       
     the board;                                                                                                                 
               (2)  may be issued in coupon form or in                                                                          
     fully  registered form,  and may  be registrable  as to                                                                    
     principal  or both  principal and  interest, all  under                                                                    
     regulations and conditions the board provides;                                                                             
               (3)  are payable as to principal and                                                                             
     interest at the place determined by the board;                                                                             
               (4)  shall be signed on behalf of the                                                                            
     corporation [AUTHORITY]  as the  board may  direct; the                                                                
     signatures  may be  facsimile signatures;  each of  the                                                                    
     interest coupons,  if any, attached to  the bonds shall                                                                    
     be signed by the  facsimile signatures of the officials                                                                    
     as the board may direct;                                                                                                   
               (5)  shall have the seal of the corporation                                                                  
     [AUTHORITY]  impressed,  printed,  or  lithographed  on                                                                    
     them; and                                                                                                                  
               (6)  shall be issued under and subject to                                                                        
     the  terms, conditions,  and  covenants, providing  for                                                                    
     the payment  of the  principal of  and interest  on the                                                                    
     bonds and  the other terms, conditions,  covenants, and                                                                    
     protective  features  safeguarding   this  payment  and                                                                    
     relating  to the  operations,  maintenance, or  capital                                                                    
     improvements  as found  necessary by  the board,  which                                                                    
     covenants  may   include  a  provision   requiring  the                                                                    
     setting aside  and maintenance  of certain  reserves to                                                                    
     secure  the payment  of the  principal and  interest or                                                                    
     for operations, maintenance, or capital improvements.                                                                      
        * Sec. 33. AS 19.75.330(c) is amended to read:                                                                        
          (c)  In determining the matters and questions                                                                         
     relating to the issuance and  sale of the bonds and the                                                                    
     fixing   of   the    maturities,   terms,   conditions,                                                                    
     covenants, and other subjects of  the bonds as provided                                                                    
     in (a)  and (b) of  this section, the decisions  of the                                                                    
     board shall  be those found to  be reasonably necessary                                                                    
     for the  best interests of the  corporation [AUTHORITY]                                                                
     and  the construction,  operation,  and maintenance  of                                                                    
     its  facilities, and  those  that  will accomplish  the                                                                    
     most advantageous sale of the  bonds, giving due regard                                                                    
     to  (1) necessary  or normal  costs of  maintenance and                                                                    
     operation;  (2)   renewals  and  replacements   of  and                                                                    
     repairs to  the toll  facilities; (3)  all improvements                                                                    
     to  toll facilities  and  property  of toll  facilities                                                                    
     owned,  used, operated,  or leased  in connection  with                                                                    
     toll facilities;  (4) the  future growth  and expansion                                                                    
     of all  of the facilities;  and (5) the  possibility of                                                                    
     additional revenue  bond financing for  toll facilities                                                                    
     purposes. A decision  of the board as  expressed in any                                                                    
     bond  resolution  is final  when  any  bonds have  been                                                                    
     issued under the bond resolution.                                                                                          
        * Sec. 34. AS 19.75.332 is amended to read:                                                                           
          Sec. 19.75.332. Bond resolution. (a)  When                                                                          
     issuing  bonds  of  the  corporation  [AUTHORITY],  the                                                                
     board shall  adopt the bond resolution  and approve all                                                                    
     other  documents  and  proceedings  necessary  for  the                                                                    
     issuance, sale, and  delivery of the bonds  or any part                                                                    
     or series  of them. The  bond resolution shall  fix the                                                                    
     aggregate  principal  amount  and  denomination,  date,                                                                    
     maturities,  place  or  places of  payment,  rights  of                                                                    
     redemption,  if  any,   terms,  form,  conditions,  and                                                                    
     covenants  of the  bonds or  each series  of them.  The                                                                    
     board  shall also  determine and  provide for  the date                                                                    
     and  manner of  sale of  the bonds,  and shall  provide                                                                    
     where the notice of sale, if any, is to be published.                                                                      
          (b)  The board may delegate to the corporation's                                                                  
     [AUTHORITY'S]  executive  director   the  authority  to                                                                    
     approve final principal  maturities and dates, interest                                                                    
     rates,  redemption rights,  and interest  payment dates                                                                    
     under the terms and  conditions the board determines by                                                                    
     resolution.                                                                                                                
        * Sec. 35. AS 19.75.338(a) is amended to read:                                                                        
          (a)  The bonds or any part of them may be                                                                             
     refunded at  or before  their maturity by  the issuance                                                                    
     of   refunding  revenue   bonds   of  the   corporation                                                                
     [AUTHORITY] if, in the opinion  of the board, refunding                                                                    
     is  advantageous to  and in  the best  interest of  the                                                                    
     corporation [AUTHORITY].                                                                                               
        * Sec. 36. AS 19.75.340 is amended to read:                                                                           
          Sec. 19.75.340. Bonds as legal investments. Bonds                                                                   
     of   the   corporation  [AUTHORITY],   including   toll                                                                
     facilities bonds, are legal  investments for all banks,                                                                    
     trust  companies,  savings   banks,  savings  and  loan                                                                    
     associations, and  other persons carrying on  a banking                                                                    
     business,  all insurance  companies  and other  persons                                                                    
     carrying on  an insurance business, and  all executors,                                                                    
     administrators,  trustees, and  other fiduciaries.  The                                                                    
     bonds may be  accepted as security for  deposits of all                                                                    
     money of the state and its political subdivisions."                                                                        
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                              
     Page 5, line 13:                                                                                                           
          Delete "Arm"                                                                                                        
          Delete "Arm"                                                                                                          
                                                                                                                                
     Page 5, line 24:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 5, line 25:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 5, line 26:                                                                                                           
          Delete "authority"                                                                                                    
          Insert "corporation"                                                                                                  
                                                                                                                                
     Page 5, line 27:                                                                                                           
          Delete "Arm"                                                                                                          
                                                                                                                                
     Page 5, line 29:                                                                                                           
          Delete "authority" in both places                                                                                     
     Insert "corporation" in both places                                                                                        
                                                                                                                              
     Page 5, following line 30:                                                                                                 
     Insert new bill sections to read:                                                                                          
        "* Sec. 38. AS 19.75.911 is amended to read:                                                                        
          Sec. 19.75.911. Exemption from local regulation.                                                                    
     Notwithstanding  any  contrary  provision of  law,  the                                                                    
     activities  of the  corporation [AUTHORITY]  are exempt                                                                
     from land  use planning,  zoning, permitting,  or other                                                                    
     similar governmental  powers of  political subdivisions                                                                    
     of the state.                                                                                                              
        * Sec. 39. AS 19.75.915 is amended to read:                                                                           
          Sec. 19.75.915. Liability for payment of tolls.                                                                     
     The  owner  of  a   vehicle  using  a  facility  owned,                                                                    
     controlled, or  managed by the  corporation [AUTHORITY]                                                                
     for which  a toll or fee  is imposed is liable  for the                                                                    
     payment  of  the toll  or  fee  solely because  of  the                                                                    
     vehicle ownership, unless the  vehicle, except a rental                                                                    
     vehicle,  is used  without  the  owner's knowledge  and                                                                    
     incurs the toll or fee during operation.                                                                                   
        * Sec. 40. AS 19.75.980(2) is amended to read:                                                                        
               (2)  "board" means the board of directors of                                                                     
     the corporation [AUTHORITY];                                                                                           
        * Sec. 41. AS 19.75.980(3) is amended to read:                                                                        
               (3)  "department" means the Department of                                                                        
     Revenue [TRANSPORTATION AND PUBLIC FACILITIES];                                                                        
        * Sec. 42.  AS 19.75.980 is amended by  adding a new                                                                  
     paragraph to read:                                                                                                         
               (5)  "corporation" means the Knik Crossing                                                                       
     Development Corporation.                                                                                                   
        * Sec. 43. AS 36.30.015(f) is amended to read:                                                                        
          (f)  The board of directors of the Alaska Housing                                                                     
     Finance Corporation,  notwithstanding AS 18.56.088, the                                                                    
     membership  of the  Alaska  Industrial Development  and                                                                    
     Export  Authority,  notwithstanding  AS 44.88.085,  and                                                                    
     the   board  of   directors   of   the  Knik   Crossing                                                              
     Development  Corporation  [KNIK  ARM  BRIDGE  AND  TOLL                                                                
     AUTHORITY] under AS 19.75.111,  shall adopt regulations                                                                    
     under AS 44.62 (Administrative  Procedure Act), and the                                                                    
     board of  trustees of the Alaska  Retirement Management                                                                    
     Board  shall adopt  regulations under  AS 37.10.240, to                                                                    
     govern   the   procurement   of   supplies,   services,                                                                    
     professional   services,  and   construction  for   the                                                                    
     respective   public   corporation    and   board.   The                                                                    
     regulations    must    reflect   competitive    bidding                                                                    
     principles   and   provide   vendors   reasonable   and                                                                    
     equitable   opportunities   to   participate   in   the                                                                    
     procurement  process   and  must   include  procurement                                                                    
     methods   to    meet   emergency    and   extraordinary                                                                    
     circumstances. Notwithstanding the  other provisions of                                                                    
     this   subsection,    the   Alaska    Housing   Finance                                                                    
     Corporation,  the  Alaska  Industrial  Development  and                                                                    
     Export   Authority,  the   Knik  Crossing   Development                                                              
     Corporation [KNIK  ARM BRIDGE AND TOLL  AUTHORITY], and                                                                
     the  Alaska Retirement  Management  Board shall  comply                                                                    
     with AS 36.30.170(b).                                                                                                      
        * Sec. 44. AS 39.25.110(39) is amended to read:                                                                       
               (39)  the executive director and employees                                                                       
     of the Knik Crossing  Development Corporation [KNIK ARM                                                              
     BRIDGE  AND  TOLL  AUTHORITY]  under  AS 19.75.051  and                                                                    
     19.75.061;                                                                                                                 
        * Sec. 45. AS 39.50.200(b)(60) is amended to read:                                                                    
               (60)  the board of directors of the Knik                                                                     
     Crossing Development  Corporation [KNIK ARM  BRIDGE AND                                                                
     TOLL AUTHORITY] (AS 19.75.031 and 19.75.041);                                                                              
        *  Sec.  46. The  uncodified  law  of the  State  of                                                                  
     Alaska is amended by adding a new section to read:                                                                         
          TRANSITION. (a) All rights, titles, interests,                                                                        
     agreements,   contracts,   instruments,   indebtedness,                                                                    
     investments, leases, real  and personal property, lines                                                                    
     of credit,  gifts, grants,  loans, fees,  rents, tolls,                                                                    
     civil  actions,  revenue,  funds,  insurance,  permits,                                                                    
     licenses,  studies, and  intellectual  property of  the                                                                    
     Knik Arm  Bridge and Toll Authority  are transferred to                                                                    
     the Knik Crossing Development Corporation.                                                                                 
          (b)  For one year following the effective date of                                                                     
     this Act,  the members  of the  board of  directors for                                                                    
     the  Knik Arm  Bridge  and Toll  Authority  on the  day                                                                    
     before the effective date of  this Act shall serve as a                                                                    
     nonvoting advisory  board to the board  of directors of                                                                    
     the  Knik   Crossing  Development   Corporation.  While                                                                    
     serving  as  a  nonvoting  advisory  board  under  this                                                                    
     subsection, the  members of the  board of  directors of                                                                    
     the  Knik Arm  Bridge  and Toll  Authority shall  serve                                                                    
     without compensation  but are entitled to  per diem and                                                                    
     travel expenses  authorized for boards  and commissions                                                                    
     under AS 39.20.180."                                                                                                       
                                                                                                                                
2:03:16 PM                                                                                                                    
                                                                                                                                
CHAIR  JOHNSON  reconvened  the House  Rules  Standing  Committee                                                               
meeting  at   2:03  p.m.     Upon   reconvening,  Representatives                                                               
Chenault, Hawker, Herron, Olson, and  Johnson were present at the                                                               
call to order.   Representative Gruenberg arrived  as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
            HB 167-ARCHITECTS, ENGINEERS, SURVEYORS                                                                         
                                                                                                                                
2:03:24 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  next order of business would be                                                               
HOUSE  BILL  NO. 167,  "An  Act  relating  to the  regulation  of                                                               
architects,    engineers,   land    surveyors,   and    landscape                                                               
architects."                                                                                                                    
                                                                                                                                
2:03:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to adopt  Amendment 1 to HB 167, which                                                               
read [original punctuation provided]:                                                                                           
                                                                                                                                
     Page 3, line 14                                                                                                            
          Delete "three [FOUR]"                                                                                             
          Insert "four"                                                                                                         
                                                                                                                                
CHAIR JOHNSON objected for purposes of discussion.                                                                              
                                                                                                                                
2:03:58 PM                                                                                                                    
                                                                                                                                
ANNA   LATHIM,   Staff,   Representative  Olson,   Alaska   State                                                               
Legislature, explained  that although  HB 167  passed out  of the                                                               
House  Labor   and  Commerce   Standing  Committee   without  any                                                               
unfavorable  public testimony  or concerns,  late in  the process                                                               
some  concerns  arose.   As  HB  167  was originally  written  it                                                               
would've required  an architect  stamp on  fourplex units.   Upon                                                               
hearing concerns, Amendment 1 was  drafted such that the language                                                               
would return to existing statute.   In response to Representative                                                               
Chenault, Ms. Lathim  specified that an architect  stamp would be                                                               
required on structures larger than a fourplex.                                                                                  
                                                                                                                                
2:05:38 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON,  upon determining no  one else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
2:06:27 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON  [withdrew] his objection  and announced  that upon                                                               
hearing no further objections, Amendment 1 was adopted.                                                                         
                                                                                                                                
2:06:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved  to report HB 167, as  amended, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There  being  no  objection, CSHB  167(RLS)  was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
         SB  31-NAMING AKHIOK RUNWAY AND KODIAK AIRPORT                                                                     
                                                                                                                                
2:07:00 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON announced that the  next order of business would be                                                               
SENATE BILL NO. 31, "An Act  naming the runway at the state-owned                                                               
airport  in Akhiok  the  Jim Andie  and  Robin Starrett  Memorial                                                               
Runway."                                                                                                                        
                                                                                                                                
2:07:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON moved to adopt Amendment 1, which read:                                                                    
                                                                                                                                
     Page 1, line 2, following "Runway":                                                                                      
          Insert "; and naming the state-owned airport at                                                                     
     Kodiak the Benny Benson State Airport"                                                                                   
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "a new section"                                                                                                
          Insert "new sections"                                                                                                 
                                                                                                                                
     Page 1, following line 7:                                                                                                  
          Insert a new section to read:                                                                                         
          "Sec. 35.40.360. Benny Benson State Airport. The                                                                    
        state-owned airport at Kodiak is named the Benny                                                                        
     Benson State Airport."                                                                                                     
                                                                                                                                
CHAIR JOHNSON objected for discussion purposes.                                                                                 
                                                                                                                                
2:07:23 PM                                                                                                                    
                                                                                                                                
ASTRID ROSE,  Staff, Representative Alan Austerman,  Alaska State                                                               
Legislature,  began  by  noting  that  she  worked  with  Senator                                                               
Stevens to develop Amendment 1.   She explained that the original                                                               
legislation  names  the  Akhiok  runway  after  two  pilots  that                                                               
recently passed away.  Amendment 1  aims to name the Kodiak state                                                               
airport  after Benny  Benson.   Benny  Benson,  who designed  the                                                               
Alaska State Flag,  was born in Chignik on October  12, 1913, and                                                               
therefore  this year  marks  the 100th  year  anniversary of  his                                                               
birthday.   Ms.  Rose  noted that  Representative Austerman  knew                                                               
Benny Benson  personally from their  time worked together  at the                                                               
airport.                                                                                                                        
                                                                                                                                
2:08:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HAWKER  asked whether  the state-owned  airport at                                                               
Kodiak already  has a name.   He also asked whether  there is any                                                               
opposition to this proposed name.                                                                                               
                                                                                                                                
MS. ROSE  answered that  there is no  opposition to  the proposed                                                               
name.   In fact, she noted  receipt of resolutions from  the city                                                               
and the  borough in  support of  the name as  well as  letters of                                                               
support  from community  members.   She  stated  that the  Kodiak                                                               
airport doesn't currently have a name.                                                                                          
                                                                                                                                
2:09:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG  asked  whether Chignik  is  on  Kodiak                                                               
Island.                                                                                                                         
                                                                                                                                
MS. ROSE  replied no, adding  that it's on the  Alaska Peninsula,                                                               
although it's located in the Kodiak Island Borough.                                                                             
                                                                                                                                
2:09:44 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON,  upon determining no  one else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
2:09:52 PM                                                                                                                    
                                                                                                                                
CHAIR JOHNSON removed his objection  to Amendment 1.  There being                                                               
no further objection, Amendment 1 was adopted.                                                                                  
                                                                                                                                
2:10:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE OLSON  moved to report  SB 31, as amended,  out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.   There being  no  objection, HCS  SB 31(RLS)  was                                                               
reported from the House Rules Standing Committee.                                                                               
                                                                                                                                
2:10:40 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
CHAIR JOHNSON announced that the  committee would stand in recess                                                               
to the call of the chair.   [This meeting was reconvened on April                                                               
10, 2013.]                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB167 v.U.pdf HRLS 4/9/2013 9:30:00 AM
SL&C 3/27/2014 1:30:00 PM
HB 167
HB167 Sponsor Statement.pdf HRLS 4/9/2013 9:30:00 AM
SL&C 3/27/2014 1:30:00 PM
HB 167
HB167 Sectional Analysis.pdf HRLS 4/9/2013 9:30:00 AM
SL&C 3/27/2014 1:30:00 PM
HB 167
HB167 Letters of Support.pdf HRLS 4/9/2013 9:30:00 AM
SL&C 3/27/2014 1:30:00 PM
HB 167
HB167 Amendment #1.pdf HRLS 4/9/2013 9:30:00 AM
HB 167
CSHB 23 (FIN) v.O.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
CSHB 23 (FIN) Sponsor Statement.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
CSHB 23 (FIN) Summary of Changes.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
CSHB 23 (FIN) Sectional Summary.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
CSHB 23 (FIN) Fiscal Note - REV.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
CSHB 23 (FIN) Fiscal Note - DOT.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
SB 31 v.A.pdf HRLS 4/9/2013 9:30:00 AM
SB 31
SB 31 Sponsor Statement.pdf HRLS 4/9/2013 9:30:00 AM
SB 31
SB 31 Fiscal Note - DOT.pdf HRLS 4/9/2013 9:30:00 AM
SB 31
HB 23 Amendment 1.pdf HRLS 4/9/2013 9:30:00 AM
HB 23
SB 31 Amendment #1.pdf HRLS 4/9/2013 9:30:00 AM
SB 31