Legislature(1999 - 2000)
05/16/1999 11:37 AM House RLS
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RULES STANDING COMMITTEE
May 16, 1999
11:37 a.m.
MEMBERS PRESENT
Representative John Cowdery, Chairman
Representative Brian Porter
Representative Joe Green
Representative Gail Phillips
Representative Pete Kott
Representative Ethan Berkowitz
MEMBERS ABSENT
Representative Reggie Joule
COMMITTEE CALENDAR
SENATE BILL NO. 171 am
"An Act relating to the release of certain records and reports
required by the Department of Fish and Game regarding fish,
shellfish, or fishery products and reports of fish buyers and
processors; relating to the transfer of land to the state; and
providing for an effective date."
- MOVED HCS SB 171(RLS) OUT OF COMMITTEE
HB 212(TITLE AM)
"An Act relating to the confidentiality of certain information
related to attorney general investigations of unlawful trade
practices and antitrust activities."
- MOVED OUT OF COMMITTEE
(* First public hearing)
PREVIOUS ACTION
BILL: SB 171
SHORT TITLE: FISHERY DATA; LAND REC'D BY STATE
SPONSOR(S): SENATOR(S) HALFORD
Jrn-Date Jrn-Page Action
5/07/99 1299 (S) READ THE FIRST TIME - REFERRAL(S)
5/07/99 1299 (S) RES
5/10/99 (S) RES AT 3:00 PM BUTROVICH 205
5/10/99 (S) MOVED OUT OF COMMITTEE
5/10/99 1354 (S) RES RPT 2DP 3NR
5/10/99 1354 (S) DP: HALFORD, GREEN; NR: MACKIE,
5/10/99 1354 (S) LINCOLN, PETE KELLY
5/10/99 1354 (S) ZERO FISCAL NOTE (DNR, F&G-2)
5/11/99 (S) RLS AT 12:00 PM FAHRENKAMP 203
5/11/99 (S) MINUTE(RLS)
5/11/99 1365 (S) RULES TO CALENDAR AND 1 OR 5/11/99
5/11/99 1367 (S) READ THE SECOND TIME
5/11/99 1367 (S) ADVANCED TO THIRD READING UNAN
CONSENT
5/11/99 1367 (S) READ THE THIRD TIME SB 171
5/11/99 1368 (S) PASSED Y20 N-
5/11/99 1368 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/11/99 1368 (S) HALFORD NOTICE OF RECONSIDERATION
5/12/99 1401 (S) RECON TAKEN UP - IN THIRD READING
5/12/99 1401 (S) RETURN TO SECOND FOR AM 1 UNAN
CONSENT
5/12/99 1401 (S) AM NO 1 ADOPTED UNAN CONSENT
5/12/99 1402 (S) AUTOMATICALLY IN THIRD READING
5/12/99 1402 (S) PASSED ON RECONSIDERATION Y20 N-
5/12/99 1403 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/12/99 1407 (S) TRANSMITTED TO (H)
5/13/99 1363 (H) READ THE FIRST TIME - REFERRAL(S)
5/13/99 1363 (H) FSH, RES
5/14/99 (H) RES AT 1:00 PM CAPITOL 124
5/14/99 (H) MOVED HCSSB 171(RES)
5/14/99 1423 (H) FSH REFERRAL WAIVED
5/15/99 (H) RLS AT 1:00 PM CAPITOL 120
<CANCELLED>
5/15/99 1442 (H) RES RPT HCS(RES) 7DP
5/15/99 1442 (H) DP: OGAN, KAPSNER, WHITAKER, HARRIS,
5/15/99 1442 (H) MORGAN, BARNES, MASEK
5/15/99 1443 (H) 3 SENATE ZERO FNS (2F&G, DNR) 5/10/99
5/16/99 (H) RLS AT 11:30 AM CAPITOL 120
BILL: HB 212
SHORT TITLE: UNLAWFUL TRADE PRACTICES/ANTITRUST
SPONSOR(S): JUDICIARY
Jrn-Date Jrn-Page Action
4/26/99 1005 (H) READ THE FIRST TIME - REFERRAL(S)
4/26/99 1005 (H) JUD
5/03/99 (H) JUD AT 1:00 PM CAPITOL 120
5/03/99 (H) MOVED OUT OF COMMITTEE
5/04/99 1153 (H) JUD RPT 2DP 1DNP 3NR
5/04/99 1154 (H) DP: MURKOWSKI, KOTT; DNP: KERTTULA;
5/04/99 1154 (H) NR: CROFT, GREEN, ROKEBERG
5/04/99 1154 (H) ZERO FISCAL NOTE (H.JUD)
5/11/99 1319 (H) RULES TO CALENDAR 5/11/99
5/11/99 1319 (H) HELD TO 5/12/99
5/12/99 1342 (H) READ THE SECOND TIME
5/12/99 1343 (H) AM NO 1 ADOPTED Y27 N13
5/12/99 1343 (H) ...CHANGES TITLE OF LEGISLATION
5/12/99 1344 (H) AM NO 2 FAILED Y16 N24
5/12/99 1345 (H) ADVANCED TO THIRD READING 5/13
CALENDAR
5/13/99 1377 (H) READ THE THIRD TIME HB 212(TITLE AM)
5/13/99 1377 (H) RETURN TO RLS COMMITTEE
5/14/99 (H) RLS AT 4:00 PM CAPITOL 124
5/14/99 (H) MOVED CSHB 212(RLS) OUT OF COMMITTEE
5/14/99 (H) MINUTE(RLS)
5/16/99 (H) RLS AT 11:30 AM CAPITOL 120
WITNESS REGISTER
MARCO PIGNALBERI, Legislative Assistant
for Representative Cowdery
Alaska State Legislature
Capitol Building, Room 204
Juneau, Alaska 99801
Telephone: (907) 465-3879
POSITION STATEMENT: Provided information for SB 171 and HB 212.
JAMES KUBITZ, Vice President
Real Estate and Project Planning
Alaska Railroad Corporation
PO Box 107500
Anchorage, Alaska 99510-7500
Telephone: (907) Not provided.
POSITION STATEMENT: Discussed the Alaska Railroad Corporation's
position.
ACTION NARRATIVE
TAPE 99-, SIDE A
Number 0001
CHAIRMAN JOHN COWDERY called the House Rules Standing Committee
meeting to order at 11:37 a.m. Members present at the call to
order were Representatives Cowdery, Porter, Phillips, Kott and
Berkowitz. Representative Green arrived at 11:50 a.m.
Representative Joule was not present.
SB 171-FISHERY DATA; LAND REC'D BY STATE
CHAIRMAN COWDERY announced that the first order of business before
the committee would be SENATE BILL NO. 171 am, "An Act relating to
the release of certain records and reports required by the
Department of Fish and Game regarding fish, shellfish, or fishery
products and reports of fish buyers and processors; relating to the
transfer of land to the state; and providing for an effective
date."
Number 0087
MARCO PIGNALBERI, Legislative Assistant for Representative Cowdery,
Alaska State Legislature, said that he would explain the amendments
requested by the Senate to HCS SB 171. Basically, two new sections
were added to the HCS SB 171(RES), Sections 4 and 5. He explained
that the new Section 4 inserts new language to the chapter on the
Alaska Railroad Corporation. The new language is in subparagraph
5 which reads as follows: "(5) apply for or accept a grant of
federal land within a municipality; before approving an action
under this paragraph, the legislature must determine that the
federal land is required for essential railroad purposes." Section
5 is simply a conforming amendment which allows the railroad to
submit and accept federal land. The language in Section 5 says
that can be done, except for the new provision in Section 4.
REPRESENTATIVE BERKOWITZ inquired as to the effect this legislation
would have on the ability of the railroad and the City of Whittier
to enter into that dock agreement.
MR. PIGNALBERI said, "My understanding of this amendment would be
that before the railroad could accept the DeLong dock, they would
have to come to the legislature and seek prior approval."
REPRESENTATIVE BERKOWITZ inquired as to why the legislature would
want to interfere with that.
MR. PIGNALBERI commented that is a policy call. He informed the
committee that in previous hearings, it was brought out that the
railroad has much land that is excess to the needs of the railroad
operations making the railroad more of a real estate company than
a railroad operating company. This amendment would make the
legislature the arbiter of whether surplus land should go to
municipal operations or railroad operations.
REPRESENTATIVE PHILLIPS asked if the language in this was in
conflict with Title 29 and the supremacy of the local governmental
entity to make these decisions versus the state when local lands
are at stake.
MR. PIGNALBERI said that he did not have that information, but
suggested that Legislative Legal and Research Services could be
contacted on that point. He noted that the committee packet should
contain a letter from a railroad official, Mr Kubitz, who is also
standing by via telephone if he is needed. With regards to the
Title 29 question, Legislative Legal and Research Services did not
note any title conflict.
REPRESENTATIVE PHILLIPS requested that Legislative Legal and
Research Services be contacted on that point.
Number 0431
CHAIRMAN COWDERY commented that there is concern that the railroad
is expanding beyond the scope of transportation and moving into the
real estate business. Furthermore, some think that the communities
experiencing a down turn in funding should be involved to help with
the community's budget stream.
REPRESENTATIVE BERKOWITZ said that he would be curious to know
Representative Harris' position on this since Whittier is in his
district.
MR. PIGNALBERI pointed out that this language is not specific to
any district.
REPRESENTATIVE BERKOWITZ stated that the consequences clearly
impact Whittier. He inquired as to the other areas that would be
impacted.
REPRESENTATIVE PHILLIPS noted that the new hotel project in
Fairbanks would probably fall under this as well. She suggested
that Mr. Kubitz be contacted with regards to these questions.
CHAIRMAN COWDERY noted that there is an ongoing project between
Anchorage and Wasilla with regard to an exchange with the military.
REPRESENTATIVE BERKOWITZ commented that if this is such important
legislation, then it could stand alone.
Number 0641
JAMES KUBITZ, Vice President, Real Estate and Project Planning,
Alaska Railroad Corporation, testified via telephone from
Anchorage. He expressed concern with the projects that are
currently underway which involve federal transfer of land. The
most significant project is the line changes that the railroad has
been working on to find a new route through Elmendorf and Fort
Richardson. Due to the curvature, those tracks are currently very
slow. The railroad has been working with the military for about a
year and three alternative sites have been selected. Mr. Kubitz
anticipated that land transfer to happen shortly. The railroad has
received the initial funding from the federal government to start
this approximately $30 million project which the Department of
Defense is very interested in occurring. Therefore, having to
return to the legislature for approval, depending upon the timing,
could slow the project. He also mentioned that there is a plan for
a multi-modal depot in Fairbanks that is partially funded and would
require a small land trade with the state. There is also a new
dock planned in Seward which may necessitate acquiring some tide
lands for a new freight dock. Mr. Kubitz stressed that there is a
desire to have legislative oversight. He suggested the possibility
of exempting the current projects from that legislative oversight
while providing a mechanism such as Legislative Council for
legislative approval during the interim. He reiterated that the
timing is crucial.
CHAIRMAN COWDERY understood that the DeLong dock is still in
legislation in Washington, D.C.
Number 0900
REPRESENTATIVE PHILLIPS asked if Mr. Kubitz had seen the proposed
Rules CS.
MR. KUBITZ indicated that he reviewed it yesterday.
REPRESENTATIVE PHILLIPS directed Mr. Kubitz to page 4, Section 4,
the language that reads, "Unless the legislature approves the
action by law, the corporation may not ... (3) extend railroad
lines; this paragraph does not apply to a spur, industrial, team,
switching, or side track;". She asked if the work being done on
the military bases would be included in the definitions of spur,
industrial, team, switching, and side track.
MR. KUBITZ clarified that the project on the military bases would
be a main line change not a switch, spur, or siding.
REPRESENTATIVE PHILLIPS inquired as to how far that project has
proceeded.
MR. KUBITZ informed the committee that about $5 million worth of
funding has been received to perform the engineering and the
environmental aspects. Three alternative sites have been
identified and the site is expected to be selected by summer.
Congressional approval is expected before the Congressional members
leave Congress.
REPRESENTATIVE PHILLIPS inquired as to when the work is anticipated
to begin.
MR. KUBITZ explained that the federal portion cannot begin until
the land is received. He said that would be started in the spring.
He informed the committee that there is a project north of the
base, Birchwood and Eklutna and Eagle River, which does not involve
federal land. However, that project does include a land trade with
Eklutna, Incorporated. He noted that there is also a land trade
with the Municipality of Anchorage on HLD land.
REPRESENTATIVE PHILLIPS asked if there is a specific name for the
project being discussed. She clarified that she was referring to
what can be started this summer and what has to wait for the
federal land.
MR. KUBITZ said it is called the Anchorage-Wasilla line change
project which involves land through the military bases, Eagle
River, Eklutna, and Birchwood.
Number 1059
REPRESENTATIVE PHILLIPS suggested that there should be an exemption
for that project.
REPRESENTATIVE BERKOWITZ noted that the effective date could be
changed.
REPRESENTATIVE PORTER read the following from statute, "Unless the
legislature approves, the corporation may not exchange, donate,
sell, or otherwise convey its entire interest in land." Therefore,
he surmised that the legislature would currently have to approve
the railroad's land swaps.
MR. KUBITZ said he believed that to be correct.
REPRESENTATIVE PORTER commented then that this may do the railroad
a favor by allowing Legislative Council to act on these land swaps
during the interim.
REPRESENTATIVE BERKOWITZ read that statute to mean that the
railroad cannot sell its entire land interest without the
legislature's approval.
REPRESENTATIVE PORTER asked if Representative Berkowitz meant the
railroad divesting itself of its entire portfolio.
REPRESENTATIVE BERKOWITZ replied yes.
CHAIRMAN COWDERY and REPRESENTATIVE PORTER did not agree with that
interpretation.
MR. KUBITZ interjected that generally land is not sold, but rather
acquired. This is a new area for the corporation.
REPRESENTATIVE PORTER asked if the $30 million from the federal
government that facilitated this project, had to be appropriated
through the legislature.
MR. KUBITZ replied no. He clarified that the money is going to the
Department of Defense. This is a defense project not an Alaska
railroad project.
Number 1218
REPRESENTATIVE BERKOWITZ asked if all the areas Mr. Kubitz
mentioned were necessary for railroad operations either directly or
for intermodal use.
MR. KUBITZ replied yes. In further response to Representative
Berkowitz, Mr. Kubitz said that these land holdings are not
speculative land holdings.
REPRESENTATIVE PHILLIPS asked if the Fairbanks hotel is a
speculative land holding and has nothing to do with the railroad.
MR. KUBITZ explained that the Chena Landing where the Comfort Inn
is located is part of railroad property. Initially, a depot was to
be built next to the hotel. Fairbanks is in desperate need of a
new depot due to the length of the train and the amount of people
utilizing the train there now. That was the original plan and was
why the hotel is located there. Mr. Kubitz stated that the site
next to the Comfort Inn is still a potential site for the new
depot. He clarified that part of the Comfort Inn was going to be
utilized as a depot staging area.
REPRESENTATIVE PHILLIPS asked if any of the land in the Fairbanks
plan is planned for anything other than strictly railroad
transportation purposes.
MR. KUBITZ replied no. He explained that the Fairbanks plan is
merely an expansion of the yard or freight and the multi-modal
center.
Number 1325
REPRESENTATIVE PHILLIPS reiterated her prior suggestion to include
an exemption for the Anchorage-Wasilla line change project.
CHAIRMAN COWDERY indicated that such an exemption could be
addressed through an effective date.
REPRESENTATIVE PORTER recommended crafting language to allow
Legislative Council to take action during the interim.
CHAIRMAN COWDERY announced then that SB 171 would be held to
address those issues.
[The meeting was recessed to the call of the chair and SB 171 was
taken up again on this date.]
HB 212-UNLAWFUL TRADE PRACTICES/ANTITRUST
CHAIRMAN COWDERY announced that the next order of business before
the committee would be HB 212(TITLE AM), "An Act relating to the
confidentiality of certain information related to attorney general
investigations of unlawful trade practices and antitrust
activities."
MARCO PIGNALBERI, Legislative Assistant for Representative Cowdery,
Alaska State Legislature, explained that at the previous meeting
the House Rules Committee adopted a House Rules committee
substitute (CS). He understood that the current intention is to
revert back to the original form of the bill that entered the House
Rules Committee.
REPRESENTATIVE PORTER moved that the committee rescind its action
in adopting and reporting CSHB 212(RLS) out of committee.
REPRESENTATIVE BERKOWITZ objected for clarification on the title.
MR. PIGNALBERI explained that upon the committee's acceptance of
Representative Porter's motion, the committee would have before it
the version which was passed on the House floor, HB 212(TITLE AM).
CHAIRMAN COWDERY asked if there was any objection to Representative
Porter's motion. There being no objection, the committee had HB
212(TITLE AM) before it for consideration.
REPRESENTATIVE PORTER moved to report HB 212(TITLE AM) for
calendaring with individual recommendations. There being no
objection, it was so ordered.
CHAIRMAN COWDERY recessed the committee to the call of the chair at
12:00 p.m. The meeting was reconvened at 1:34 p.m. At the time of
reconvening, Representatives Cowdery, Porter, Green, Kott and
Berkowitz were present. Representative Phillips arrived at 1:37
p.m. Representative Joule was not present.
SB 171-FISHERY DATA; LAND REC'D BY STATE
[This is the continuation of the meeting held on March 16, 1999
which was recessed to the call of the chair. The meeting was
reconvened at 1:34 p.m. At the time of reconvening,
Representatives Cowdery, Porter, Green, Kott and Berkowitz were
present. Representative Phillips arrived at 1:37 p.m.
Representative Joule was not present.]
CHAIRMAN COWDERY announced that back before the committee is SENATE
BILL NO. 171 am, "An Act relating to the release of certain records
and reports required by the Department of Fish and Game regarding
fish, shellfish, or fishery products and reports of fish buyers and
processors; relating to the transfer of land to the state; and
providing for an effective date."
Number 1475
MR. PIGNALBERI informed the committee that it had before it a new
proposed CS, Version LS0957\K, Utermohle, 5/16/99. He directed the
committee to page 4, lines 18-22 which now has new language
exempting two ongoing projects from the requirement of legislative
approval before acceptance of federal land. Those projects are the
Anchorage-Wasilla line change project and the Fairbanks intermodal
rail yard expansion project.
MR. PIGNALBERI pointed out that the other change in the proposed CS
is the effective date. The sponsor of the original bill requested
that the immediate effective date be kept in tact. Therefore,
Section 6 is drafted such that Sections 1-3 will have an immediate
effective date. The remaining sections that do not have a
specified effective date will automatically become effective after
90 days. Mr. Pignalberi said that Mr. Kubitz was agreeable to
these changes.
Number 1751
REPRESENTATIVE BERKOWITZ inquired as to why the exemption only
applied to the Anchorage-Wasilla line change project and the
Fairbanks intermodal rail yard expansion project. Why are the
Cordova and Whittier projects not exempted?
MR. PIGNALBERI stated that those are the two projects the railroad
suggested be exempted.
CHAIRMAN COWDERY pointed out that the Whittier project is still
being worked on in Washington, D.C.
REPRESENTATIVE BERKOWITZ commented that he was having difficulties
with the attempts to block the Whittier transfer.
CHAIRMAN COWDERY said that he did not believe that to be the case.
MR. PIGNALBERI reiterated the earlier comments that the City of
Whittier is in desperate need of land and access to dock space in
order to perform its municipal functions. He indicated that the
City of Whittier would like to have a neutral arbiter to determine,
as federal surplus land becomes available, whether such land in
Whittier should go to the city or the railroad. The City of
Whittier hopes that by this measure the legislature will be the
arbiter.
Number 1907
REPRESENTATIVE BERKOWITZ suggested then, if that is the concern,
the City of Whittier should be the ultimate determinate of whether
the city or the railroad receives the land. If this is an area of
local concern, the local government should make the decision.
REPRESENTATIVE PORTER pointed out that there needs to be an arbiter
between the state agency and the city agency.
CHAIRMAN COWDERY added that much time and effort has been spent to
accomplish what is attempted in this legislation.
Number 2449
REPRESENTATIVE PORTER moved that the committee adopt and report the
proposed HCSSB 171, Version LS0957\K, Utermohle, 5/16/99, out of
committee with individual recommendations.
REPRESENTATIVE BERKOWITZ objected.
REPRESENTATIVE PHILLIPS indicated that there was a report back from
Legislative Legal and Research Services that there is not a
conflict with Title 29.
REPRESENTATIVE BERKOWITZ understood that Legislative Council would
not have the ability to intercede during the interim.
Upon a roll call vote, Representatives Kott, Porter, Green,
Cowdery, and Phillips voted in favor of the motion to adopt and
report the proposed HCSSB 171 out of committee. Representative
Berkowitz voted against the motion to adopt and report the proposed
HCSSB 171 out of committee. Therefore, HCSSB 171(RLS) was adopted
and reported out of committee.
ADJOURNMENT
There being no further business before the committee, the House
Rules Committee meeting was adjourned at 1:40 p.m.
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