Legislature(2001 - 2002)

04/23/2002 01:11 PM House TRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         April 23, 2002                                                                                         
                           1:11 p.m.                                                                                            
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Vic Kohring, Chair                                                                                               
Representative Beverly Masek, Vice Chair                                                                                        
Representative Drew Scalzi                                                                                                      
Representative Peggy Wilson                                                                                                     
Representative Mary Kapsner                                                                                                     
Representative Albert Kookesh                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Scott Ogan                                                                                                       
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                                
Representative Carl Morgan                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
HOUSE BILL NO. 523                                                                                                              
"An Act naming the state airport at Dutch Harbor the Charles                                                                    
Thomas Madsen, Sr., Airport."                                                                                                   
                                                                                                                                
     - MOVED CSHB 523(TRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 358                                                                                                             
"An Act naming state ferries."                                                                                                  
                                                                                                                                
     - MOVED SB 358 OUT OF COMMITTEE                                                                                            
                                                                                                                              
HOUSE BILL NO. 502                                                                                                              
"An Act relating to the designation of and funding for rustic                                                                   
roads and highways; and providing for an effective date."                                                                       
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 500                                                                                                              
"An Act relating to the advance acquisition of real property for                                                                
public purposes."                                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                              
PREVIOUS ACTION                                                                                                               
                                                                                                                                
BILL: HB 523                                                                                                                  
SHORT TITLE:MADSEN AIRPORT AT DUTCH HARBOR                                                                                      
SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/19/02     3030       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/19/02     3030       (H)        TRA                                                                                          
04/23/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
                                                                                                                                
BILL: SB 358                                                                                                                  
SHORT TITLE:NAMING STATE FERRIES                                                                                                
SPONSOR(S): RLS                                                                                                                 
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
04/03/02     2610       (S)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/03/02     2610       (S)        TRA                                                                                          
04/09/02                (S)        TRA AT 1:30 PM BUTROVICH 205                                                                 
04/09/02                (S)        Moved Out of Committee                                                                       
                                   MINUTE(TRA)                                                                                  
04/10/02     2708       (S)        TRA RPT 4DP 1NR                                                                              
04/10/02     2708       (S)        DP: COWDERY, WILKEN, ELTON,                                                                  
                                   WARD;                                                                                        
04/10/02     2708       (S)        NR: TAYLOR                                                                                   
04/10/02     2708       (S)        FN1: ZERO(S.TRA)                                                                             
04/11/02                (S)        RLS AT 10:30 AM FAHRENKAMP                                                                   
                                   203                                                                                          
04/11/02                (S)        MINUTE(RLS)                                                                                  
04/12/02     2751       (S)        RULES TO CALENDAR 4/12/02                                                                    
04/12/02     2752       (S)        READ THE SECOND TIME                                                                         
04/12/02     2752       (S)        ADVANCED TO THIRD READING                                                                    
                                   UNAN CONSENT                                                                                 
04/12/02     2753       (S)        READ THE THIRD TIME SB 358                                                                   
04/12/02     2753       (S)        PASSED Y19 N- E1                                                                             
04/12/02     2754       (S)        TRANSMITTED TO (H)                                                                           
04/12/02     2754       (S)        VERSION: SB 358                                                                              
04/15/02     2923       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
04/15/02     2923       (H)        TRA                                                                                          
04/23/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
                                                                                                                                
BILL: HB 502                                                                                                                  
SHORT TITLE:RUSTIC ROADS AND HIGHWAYS                                                                                           
SPONSOR(S): TRANSPORTATION                                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/27/02     2408       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/27/02     2408       (H)        TRA, FIN                                                                                     
02/27/02     2408       (H)        REFERRED TO TRANSPORTATION                                                                   
03/05/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
03/05/02                (H)        Heard & Held                                                                                 
03/05/02                (H)        MINUTE(TRA)                                                                                  
03/05/02                (H)        MINUTE(TRA)                                                                                  
03/19/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
03/19/02                (H)        Heard & Held                                                                                 
03/19/02                (H)        MINUTE(TRA)                                                                                  
03/26/02                (H)        TRA AT 1:30 PM CAPITOL 17                                                                    
03/26/02                (H)        Heard & Held --Time Change--                                                                 
03/26/02                (H)        MINUTE(TRA)                                                                                  
04/18/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
04/18/02                (H)        -- Meeting Canceled --                                                                       
04/23/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
                                                                                                                                
BILL: HB 500                                                                                                                  
SHORT TITLE:ADVANCE ACQUISITION OF REAL PROPERTY                                                                                
SPONSOR(S): TRANSPORTATION                                                                                                      
                                                                                                                                
Jrn-Date   Jrn-Page                     Action                                                                                  
02/27/02     2407       (H)        READ THE FIRST TIME -                                                                        
                                   REFERRALS                                                                                    
02/27/02     2407       (H)        CRA, TRA                                                                                     
04/04/02                (H)        CRA AT 8:00 AM CAPITOL 124                                                                   
04/04/02                (H)        -- Meeting Canceled --                                                                       
04/11/02                (H)        CRA AT 8:00 AM CAPITOL 124                                                                   
04/11/02                (H)        Heard & Held                                                                                 
                                   MINUTE(CRA)                                                                                  
04/16/02                (H)        CRA AT 8:00 AM CAPITOL 124                                                                   
04/16/02                (H)        <Bill Postponed to 4/23/02>                                                                  
04/16/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
04/16/02                (H)        <Bill Canceled>                                                                              
04/23/02                (H)        CRA AT 8:00 AM CAPITOL 124                                                                   
04/23/02                (H)        Moved CSHB 500(CRA) Out of                                                                   
                                   Committee                                                                                    
                                   MINUTE(CRA)                                                                                  
04/23/02                (H)        CRA RPT CS(CRA) 2DP 1DNP 3NR                                                                 
04/23/02                (H)        DP: SCALZI, MEYER; DNP:                                                                      
                                   HALCRO;                                                                                      
04/23/02                (H)        NR: KERTTULA, MURKOWSKI,                                                                     
                                   MORGAN                                                                                       
04/23/02                (H)        FN1: ZERO(DOT)                                                                               
04/23/02                (H)        TRA AT 1:00 PM CAPITOL 17                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                              
REPRESENTATIVE CARL MOSES                                                                                                       
Alaska State Legislature                                                                                                        
Capitol Building, Room 500                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:  Testified as the requestor of HB 523.                                                                      
                                                                                                                                
STEPHANIE MADSEN                                                                                                                
213 3rd Street, Number 204                                                                                                      
Juneau, Alaska 99801                                                                                                            
POSITION STATEMENT:  Testified on HB 523 in memory of her late                                                                  
husband, Tom Madsen.                                                                                                            
                                                                                                                                
FRANK KELTY, Former Mayor of Unalaska                                                                                           
P.O. Box 162                                                                                                                    
Unalaska, Alaska  99685                                                                                                         
POSITION STATEMENT:  Testified in support of HB 523.                                                                            
                                                                                                                                
SINCLAIR WILT                                                                                                                   
P.O. Box 502                                                                                                                    
Unalaska, Alaska  99685                                                                                                         
POSITION STATEMENT:  Testified on HB 523, conveying the story of                                                                
how Tom Madsen saved his infant daughter's life.                                                                                
                                                                                                                                
BETTY ARRIAGA                                                                                                                   
P.O. Box 920466                                                                                                                 
Dutch Harbor, Alaska  99692                                                                                                     
POSITION STATEMENT:  Testified on HB 523, telling how Tom Madsen                                                                
saved her life.                                                                                                                 
                                                                                                                                
PAMELA FITCH, Mayor                                                                                                             
City of Unalaska                                                                                                                
P.O. Box 920067                                                                                                                 
Dutch Harbor, Alaska  99692                                                                                                     
POSITION STATEMENT:  Testified on HB 523, echoing the sentiments                                                                
of prior speakers and giving support to the renaming of the                                                                     
Unalaska airport.                                                                                                               
                                                                                                                                
JIM BIRD, Physician Assistant                                                                                                   
Ilinliuk Clinic                                                                                                                 
P.O. Box 920166                                                                                                                 
Dutch Harbor, Alaska 99692                                                                                                      
POSITION STATEMENT:  Testified on HB 523, giving an account of                                                                  
the night he flew with Mr. Madsen to save a young girl's life.                                                                  
                                                                                                                                
KELLY HUBER, Staff                                                                                                              
to Senator Rick Halford                                                                                                         
Alaska State Legislature                                                                                                        
Capitol Building, Room 111                                                                                                      
Juneau, Alaska  99801                                                                                                           
POSITION  STATEMENT:   Presented  SB  358  on behalf  of  Senator                                                               
Halford,  who  as  Senate  President  had been  a  judge  of  the                                                               
statewide contest to name the ferries.                                                                                          
                                                                                                                                
MIKE KRIEBER, Staff                                                                                                             
to Representative Vic Kohring                                                                                                   
Alaska State Legislature                                                                                                        
Capitol Building, Room 24                                                                                                       
Juneau, Alaska  99801                                                                                                           
POSITION STATEMENT:   Testified on HB 502 on behalf  of the House                                                               
Transportation  Standing  Committee   and  explained  Version  T;                                                               
presented HB 500  on behalf of the  House Transportation Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
JEFF OTTESEN, Planning Chief                                                                                                    
Division of Statewide Planning                                                                                                  
Alaska Department of Transportation & Public Facilities                                                                         
3132 Channel Drive                                                                                                              
Juneau, Alaska  99801-7898                                                                                                      
POSITION  STATEMENT:     Testified   on  HB  502,   offering  the                                                               
department's philosophical opposition.                                                                                          
                                                                                                                                
DENNIS POSHARD, Legislative Liaison                                                                                             
Office of the Commissioner                                                                                                      
Department of Transportation & Public Facilities                                                                                
3132 Channel Drive                                                                                                              
Juneau, Alaska  9981-7898                                                                                                       
POSITION STATEMENT:   Testified on HB 500,  saying the department                                                               
agrees with the concept but prefers the original version.                                                                       
                                                                                                                                
WENDY LINDSKOOG, Director                                                                                                       
External Affairs                                                                                                                
Alaska Railroad Corporation (ARRC)                                                                                              
P.O. Box 107500                                                                                                                 
Anchorage, Alaska  99510-7500                                                                                                   
POSITION STATEMENT:   Testified on HB 500,  saying ARRC supported                                                               
the bill in its original version.                                                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 02-11, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  VIC  KOHRING  called  the  House  Transportation  Standing                                                               
Committee meeting to  order at 1:11 p.m.  Members  present at the                                                               
call to  order were Representatives Wilson,  Scalzi, and Kohring;                                                               
Representative Kapsner arrived  soon thereafter.  Representatives                                                               
Masek and Kookesh arrived as the meeting was in progress.                                                                       
                                                                                                                                
HB 523-MADSEN AIRPORT AT DUTCH HARBOR                                                                                         
                                                                                                                                
CHAIR  KOHRING  announced  that   the  first  matter  before  the                                                               
committee would be  HOUSE BILL NO. 523, "An Act  naming the state                                                               
airport  at   Dutch  Harbor  the  Charles   Thomas  Madsen,  Sr.,                                                               
Airport."                                                                                                                       
                                                                                                                                
[HB  523  was  sponsored  by the  House  Community  and  Regional                                                               
Affairs  Standing  Committee  at the  request  of  Representative                                                               
Moses.   In  packets was  a proposed  committee substitute  (CS),                                                               
Version F.]                                                                                                                     
                                                                                                                                
Number 0143                                                                                                                     
                                                                                                                                
REPRESENTATIVE CARL MOSES, Alaska  State Legislature, assisted in                                                               
presenting HB 523  to the committee.  He  explained that [Version                                                               
F] would name the state airport  in the City of Unalaska in honor                                                               
of Charles  Thomas Madsen,  Sr., who was  tragically killed  in a                                                               
plane accident  in Juneau on April  10, 2002.  The  Unalaska City                                                               
Council  and surrounding  communities fully  support the  bill to                                                               
honor a  pilot who  gave so  much to the  people of  the Aleutian                                                               
Chain.                                                                                                                          
                                                                                                                                
Number 0200                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MOSES informed  members that  Mr. Madsen,  a bush                                                               
navigator for nearly 20 years  throughout the Aleutians, was well                                                               
known for  willingly risking  his life in  order to  save others.                                                               
He was  instrumental in many medical  emergencies and search-and-                                                               
rescue operations.   In one  instance, Mr. Madsen  knowingly flew                                                               
in a  storm with  winds of over  100 miles per  hour to  save the                                                               
life of  a young child  who had ingested  a fatal amount  of iron                                                               
pills.   He said Thomas  Madsen epitomized the term  "bush pilot"                                                               
by selflessly  putting others' needs  above his own, to  meet the                                                               
needs  of humanity.   The  residents of  the Aleutian  Chain will                                                               
fondly remember  him both  as the owner  of Aleutian  Air Limited                                                               
and for  his heroic  acts.   Representative Moses  concluded that                                                               
renaming the  City of Unalaska  Airport will enable  Mr. Madsen's                                                               
memory to live on, for generations to come.                                                                                     
                                                                                                                                
Number 0337                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI  noted  that   he  would  be  offering  an                                                               
amendment  to simplify  the  title  by changing  it  to the  "Tom                                                               
Madsen Airport,"  which would better  reflect how Mr.  Madsen was                                                               
known.    He cited  the  Ted  Stevens International  Airport  [in                                                               
Anchorage] as one with a simplified name.                                                                                       
                                                                                                                                
Number 0385                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK moved to adopt  the proposed CS, version 22-                                                               
LS1705\F,  Utermohle, 4/19/02,  as the  working document.   There                                                               
being no objection, Version F was before the committee.                                                                         
                                                                                                                                
Number 0410                                                                                                                     
                                                                                                                                
CHAIR  KOHRING asked  Representative  Scalzi  what his  amendment                                                               
would specifically change the name to.                                                                                          
                                                                                                                                
REPRESENTATIVE  SCALZI  answered  that  it would  be  Tom  Madsen                                                               
[Airport].                                                                                                                      
                                                                                                                                
REPRESENTATIVE MASEK asked  that the amendment be  applied to the                                                               
title, to line 5, and to line 6.                                                                                                
                                                                                                                                
Number 0470                                                                                                                     
                                                                                                                                
CHAIR KOHRING asked  if there was any objection.   There being no                                                               
objection, the foregoing was adopted as Amendment 1.                                                                            
                                                                                                                                
Number 0482                                                                                                                     
                                                                                                                                
STEPHANIE MADSEN testified before the  committee in memory of her                                                               
late husband,  Mr. Madsen.   She  said Mr.  Madsen was  a private                                                               
man, but  one-on-one, he  was very poetic  in his  description of                                                               
life in the  Aleutians.  She characterized him as  a lifeline for                                                               
many communities  in the  Aleutians.   She thanked  the committee                                                               
for the speed with which the bill  had moved along.  She showed a                                                               
picture of Mr.  Madsen with his airplane,  "The Aleutian Spirit."                                                               
He  was privileged  to be  doing what  he enjoyed  the most,  Ms.                                                               
Madsen said, adding that he was "a great guy."                                                                                  
                                                                                                                                
Number 0674                                                                                                                     
                                                                                                                                
FRANK   KELTY,   Former   Mayor  of   Unalaska,   testified   via                                                               
teleconference.    He  said  Mr. Madsen's  flying  and  level  of                                                               
service were of the same caliber  as those of the famous pioneers                                                               
of Alaskan aviation.   He recounted how Mr. Madsen  flew all over                                                               
the  Aleutian  Chain  carrying,  among  other  things,  mail  and                                                               
children.  He asked the committee to  move HB 523 with speed.  He                                                               
said it is  a great honor to have the  city's airport named after                                                               
Mr. Madsen.                                                                                                                     
                                                                                                                                
Number 0845                                                                                                                     
                                                                                                                                
SINCLAIR WILT testified via teleconference.   Speaking in support                                                               
of HB 523,  he recounted how Mr. Madsen had  saved his daughter's                                                               
life 15 years ago.   His 14-month-old daughter had ingested [what                                                               
would  be] a  fatal dose  of  iron tablets.   The  poison-control                                                               
clinic said  she needed to  get to a  hospital or she  could die.                                                               
The  weather was  too  severe  for a  Medivac  plane  to land  in                                                               
Unalaska.   At first,  Mr. Madsen  had said  the weather  was too                                                               
poor, but later  he'd called back, claiming to have  seen a break                                                               
in the weather.  Mr. Wilt said  he himself saw no such break, but                                                               
had figured  Mr. Madsen just couldn't  bear to think about  if it                                                               
were his own child.                                                                                                             
                                                                                                                                
MR. WILT explained  that those were the days  before the Unalaska                                                               
runway was paved  or lighted; all of the police  patrol cars were                                                               
lined along  the runway  to illuminate it  on that  stormy night.                                                               
Mr.  Wilt conveyed  to the  committee how  Mr. Madsen  would only                                                               
allow  physician assistant  Jim  Bird to  accompany  him and  the                                                               
child on  the flight for  the sake of weight.   Mr. Wilt  said it                                                               
was a  very long  night waiting  for word  that his  daughter had                                                               
arrived safely in Anchorage.                                                                                                    
                                                                                                                                
MR. WILT  told the  committee that Mr.  Madsen had  made numerous                                                               
more  lifesaving flights  after  that.   Therefore,  it was  only                                                               
right  and fitting  to honor  Mr.  Madsen by  naming the  airport                                                               
after him.  He urged the committee to pass HB 523.                                                                              
                                                                                                                                
Number 0980                                                                                                                     
                                                                                                                                
BETTY  ARRIAGA  testified  via  teleconference.    She  told  the                                                               
committee how  Mr. Madsen had flown  her to Cold Bay  after she'd                                                               
had  a heart  attack.   She said  she didn't  think she  would be                                                               
[alive and] testifying if it hadn't been for Mr. Madsen.                                                                        
                                                                                                                                
Number 1026                                                                                                                     
                                                                                                                                
PAMELA   FITCH,   Mayor,   City  of   Unalaska,   testified   via                                                               
teleconference, voicing  support for  HB 523.   She characterized                                                               
Mr. Madsen as a wonderful man,  and said renaming the airport for                                                               
him  was an  accurate representation  of how  the community  felt                                                               
about the man.                                                                                                                  
                                                                                                                                
Number 1067                                                                                                                     
                                                                                                                                
JIM  BIRD, Physician  Assistant, Ilinliuk  Clinic, testified  via                                                               
teleconference.  He gave his  condolences to Mrs. Madsen and went                                                               
on  to tell  about the  night  he flew  with Mr.  Madsen and  Mr.                                                               
Wilt's infant daughter.   He talked about the measure  of a hero,                                                               
and he told how Tom Madsen fit that description.                                                                                
                                                                                                                                
Number 1551                                                                                                                     
                                                                                                                                
REPRESENTATIVE MASEK  told how  growing up  in a  small, isolated                                                               
village on the Yukon River helped  her relate to the valor of Mr.                                                               
Madsen's actions.                                                                                                               
                                                                                                                                
CHAIR  KOHRING  concluded that  the  testimony  went far  towards                                                               
showing what a wonderful person Mr. Madsen was.                                                                                 
                                                                                                                                
Number 1601                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MASEK  moved  to  report CSHB  523,  version  22-                                                               
LS1705\F, Utermohle,  4/19/02, as amended, out  of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There  being no  objection, CSHB  523(TRA) was  moved out  of the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
SB 358-NAMING STATE FERRIES                                                                                                   
                                                                                                                                
CHAIR  KOHRING   announced  that  the  next   matter  before  the                                                               
committee  would be  SENATE BILL  NO. 358,  "An Act  naming state                                                               
ferries."                                                                                                                       
                                                                                                                                
Number 1646                                                                                                                     
                                                                                                                                
KELLY  HUBER,  Staff  to  Senator   Rick  Halford,  Alaska  State                                                               
Legislature, presented SB  358 on behalf of  Senator Halford [who                                                               
as President  of the Senate had  been a judge for  the contest to                                                               
name the ferries].   Ms. Huber told the committee  the bill was a                                                               
response  to a  statewide essay  contest organized  by Lieutenant                                                               
Governor Ulmer  to name the  next two ferries to  be constructed.                                                               
The  contest took  place among  children in  grades 2  through 6.                                                               
There was widespread  participation, and wonderful essays.   As a                                                               
result,  the  two  ferry  names  chosen  were  "Fairweather"  and                                                               
"Chenega."   Ms. Huber reminded  the committee that  Alaska state                                                               
ferries must  be named after glaciers.   Ms. Huber said  the bill                                                               
was  sponsored by  the rules  committees of  both houses,  at the                                                               
request of  both the Senate  President and Speaker of  the House.                                                               
She asked that SB 358 be passed out of committee.                                                                               
                                                                                                                                
Number 1691                                                                                                                     
                                                                                                                                
CHAIR  KOHRING  asked  what  communities  were  involved  in  the                                                               
contest.                                                                                                                        
                                                                                                                                
MS.   HUBER  said   the  contest   was  statewide   and  included                                                               
correspondence  students and  homeschoolers.   The  girl who  won                                                               
with the ferry name "Chenega" was a homeschooler from Ninilchik.                                                                
                                                                                                                                
Number 1778                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MASEK moved  to report  SB 358  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no  objection, SB 358  was moved out  of the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
HB 502-RUSTIC ROADS AND HIGHWAYS                                                                                              
                                                                                                                                
[Contains discussion of  HB 473, which had been  combined into HB
502 and then  removed; contains discussion of HB 8,  a portion of                                                               
which is included in Section 4 of HB 502, Version T]                                                                            
                                                                                                                                
Number 1792                                                                                                                     
                                                                                                                                
CHAIR  KOHRING   announced  that  the  next   matter  before  the                                                               
committee would  be HOUSE BILL NO.  502, "An Act relating  to the                                                               
designation of  and funding  for rustic  roads and  highways; and                                                               
providing for  an effective  date."  [In  packets was  a proposed                                                               
committee  substitute  (CS),   Version  T,  labeled  22-LS0822\T,                                                               
Utermohle, 4/15/02.]                                                                                                            
                                                                                                                                
Number 1806                                                                                                                     
                                                                                                                                
MIKE KRIEBER,  Staff to Representative Vic  Kohring, Alaska State                                                               
Legislature,  testified on  behalf  of  the House  Transportation                                                               
Standing Committee, sponsor of HB  502.  He reminded members that                                                               
HB 473 and HB 502 had been  merged because of common ground.  Due                                                               
to insufficient common ground, however,  the bills had been split                                                               
once again after there was  conference with committee members and                                                               
Representative Green, sponsor of HB 473.                                                                                        
                                                                                                                                
MR. KRIEBER said Version T has  all references to HB 473 stripped                                                               
out of it.   Donlin Creek's mention as a  rustic road was removed                                                               
from Section 2.  In  addition, funding percentages were modified.                                                               
Page   4  [paragraph   2]  brings   funding  for   the  community                                                               
transportation  system back  up to  33 percent.   [Paragraph]  4,                                                               
page 4,  increases the  funding for  the Trails  and Recreational                                                               
Access  for Alaska  (TRAAK)  system  from 4  to  5  percent.   He                                                               
pointed out  that "rustic roads" include  trails, so recreational                                                               
opportunities will  be increased.   Also expanded would  be "safe                                                               
linkages."                                                                                                                      
                                                                                                                                
Number 2046                                                                                                                     
                                                                                                                                
MR.  KRIEBER further  explained  that Version  T  contains a  new                                                               
addition on page 5  [Section 4].  He told of  a "road task force"                                                               
bill  [HB 8]  that had  passed  the House  and was  still in  the                                                               
Senate Rules Standing Committee.   The task force would address a                                                               
list  of roads  and  determine  what actions  could  be taken  to                                                               
implement  their construction.   Version  T places  that list  of                                                               
roads in HB  502.  The task  force portion of the  bill would not                                                               
be included, however.                                                                                                           
                                                                                                                                
MR.  KRIEBER pointed  out that  instead, Version  T requires  the                                                               
Department  of Transportation  &  Public  Facilities (DOT&PF)  to                                                               
carry out  the study.   The report would  list the roads  and any                                                               
other  linkages  or  rustic trails,  and  identify  whether  they                                                               
should  be a  rustic  road or  trail  or should  be  part of  the                                                               
community  transportation  system,  national highway  system,  or                                                               
state highway  system.   He told the  committee the  report would                                                               
identify  the  costs,  potential environmental  issues,  and  the                                                               
permitting  schedule,  and  would   provide  a  proposed  funding                                                               
schedule.  He  said the report would give the  legislature a tool                                                               
for determining whether to fund these roads.                                                                                    
                                                                                                                                
Number 2164                                                                                                                     
                                                                                                                                
MR.  KRIEBER discussed  the issue  of applicability  as found  on                                                               
page 7.   A July 1  implementation date would cut  the department                                                               
short  for adequate  planning.   Version T  would allow  an extra                                                               
year for implementation  in order to allow the  department to get                                                               
into the  next STIP  [Statewide Transportation  Improvement Plan]                                                               
cycle so  that it could  carefully merge the new  funding program                                                               
into its long-range planning process.                                                                                           
                                                                                                                                
Number 2209                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI moved  to adopt  the proposed  CS, version                                                               
22-LS0822\T, Utermohle, 4/15/02, as  the working document.  There                                                               
being no objection, Version T was before the committee.                                                                         
                                                                                                                                
Number 2241                                                                                                                     
                                                                                                                                
JEFF  OTTESEN, Planning  Chief, Division  of Statewide  Planning,                                                               
Department  of  Transportation  &  Public  Facilities,  testified                                                               
before the committee, noting that  the department had worked with                                                               
Mr. Krieber  to make the  bill work and  not "leave money  on the                                                               
table."   Nevertheless, he stated the  department's philosophical                                                               
opposition to  the bill.   He characterized the reduction  of the                                                               
TRAAK program from  8 to 5 percent as a  key problem with Version                                                               
T.   Over three years, this  would take $36 million  from a large                                                               
number of projects  across the state that could  use the funding.                                                               
Another problem  would be the  strict design standard  imposed in                                                               
statute that some roads may not be paved.                                                                                       
                                                                                                                                
MR.  OTTESEN  announced  that AS  19.10.160  specifies  that  the                                                               
department  will  follow the  design  standards  of the  American                                                               
Association  of   State  Highway  and   Transportation  Officials                                                               
(AASHTO).   He said AASHTO  had recently released a  new standard                                                               
for  low-volume roads;  it is  a  national standard  and must  be                                                               
followed.   He  told  the committee  that departmental  decisions                                                               
about what to do with  a road aren't simple management decisions,                                                               
but are  public-process decisions.   The  department goes  to the                                                               
public and  environmental agencies;  there are many  interests to                                                               
satisfy.   The bill would  take that  management, as well  as the                                                               
political and  public process, and  put it into  statute, thereby                                                               
taking away a great deal of  flexibility.  Regarding Section 6 of                                                               
Version T,  Mr. Ottesen said  the department has been  looking at                                                               
new,  low-volume roads  in its  "area plan  process" for  several                                                               
years.    He  gave  the  examples  of  upgrading  the  road  from                                                               
Williamsport to  Pile Bay and  a new road  on the North  Slope as                                                               
projects the department has been reviewing.                                                                                     
                                                                                                                                
TAPE 02-11, SIDE B                                                                                                              
Number 2328                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI mentioned  the road  from Williamsport  to                                                               
Pile Bay  and said  it is one  reason he supports  the bill.   He                                                               
stated that the  department was told of the wish  to see the road                                                               
built in the 1980s, and it has taken  until now to "get it on the                                                               
horizon."   Another category would allow  the road to make  it on                                                               
the list and be identified [for construction].                                                                                  
                                                                                                                                
MR.  OTTESEN said  the new  STIP  category -  the Alaska  Highway                                                               
System -  has approximately 40  roads.  Most are  existing state-                                                               
owned roads,  and several are  proposed roads.  Included  in that                                                               
list  is the  road from  Williamsport  to Pile  Bay.   He said  8                                                               
percent  of the  STIP would  go to  this new  category of  roads,                                                               
which  he  characterized  as  very similar  to  the  rustic  road                                                               
category.   The main differences  would be that  the department's                                                               
list is  changed by  regulation, not statute,  so roads  could be                                                               
added  more  quickly,  and  that the  design  standard  could  be                                                               
determined  through  the  aforementioned  public  process.    The                                                               
change took  place on  March 8,  2002, so it  hadn't had  time to                                                               
work yet.                                                                                                                       
                                                                                                                                
Number 2245                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI said it sounds  as though the department is                                                               
doing the  same thing as  HB 502.  He  asked if the  diversion of                                                               
TRAAK monies would still yield the same amount of federal funds.                                                                
                                                                                                                                
MR. OTTESEN said the state would still get the same amount.                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI  asked if the lower  design standards would                                                               
affect the federal TRAAK funds.                                                                                                 
                                                                                                                                
Number 2211                                                                                                                     
                                                                                                                                
MR. OTTESEN cited AS 19.10.160:                                                                                                 
                                                                                                                                
     The   department  shall   prepare  and   adopt  uniform                                                                    
     standard    plans    and   specifications    for    the                                                                    
     establishment,   construction,   and   maintenance   of                                                                    
     highways in  the state.   The department may  amend the                                                                    
     plans  and specifications  as  it considers  advisable.                                                                    
     The standards  must conform  as closely  as practicable                                                                    
     to those  adopted by the American  Association of State                                                                    
     Highway and Transportation Officials.                                                                                      
                                                                                                                                
MR.  OTTESEN  said  that  since  statehood,  the  department  has                                                               
followed this  statute, which protects  the department  from tort                                                               
claims.                                                                                                                         
                                                                                                                                
REPRESENTATIVE SCALZI  responded that many of  proposed roads had                                                               
been  built before  statehood and  the  statute.   He asked  what                                                               
percentage of [the new proposed  Alaska Highway System] was built                                                               
prior to 1958.                                                                                                                  
                                                                                                                                
MR. OTTESEN  said the new  system is  made up almost  entirely of                                                               
roads  owned by  the state,  and  people are  already driving  on                                                               
them.  Many  roads are in remote areas; they  have not fared well                                                               
in the  STIP process since  1995, when the state  established the                                                               
National  Highway System,  Community Transportation  Program, and                                                               
TRAAK.  He noted that  community donations, community maintenance                                                               
contributions, and  traffic volume [drive priority  in the STIP].                                                               
He  characterized these  remote roads  as the  "orphans" of  that                                                               
system.    He  restated  his belief  that  the  main  differences                                                               
between the rustic  roads and roads in the  Alaska Highway System                                                               
are that the latter would  be established in regulation, and that                                                               
the bill would impose a no-pave standard.                                                                                       
                                                                                                                                
Number 2114                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI  said it sounded  as though  deviating from                                                               
federal  standards would  not be  an  issue because  most of  the                                                               
roads had been built before  AS 19.10.160; therefore, there would                                                               
not be a problem with maintaining the roads.                                                                                    
                                                                                                                                
MR. OTTESEN  pointed out that every  time a road is  rebuilt, the                                                               
current standards must be considered.                                                                                           
                                                                                                                                
REPRESENTATIVE SCALZI read from the  statute, saying, "as close a                                                               
practicable".   He  surmised  that the  department  would have  a                                                               
great deal of latitude because of that.                                                                                         
                                                                                                                                
MR. OTTESEN replied, "There is a  lot of latitude until you're in                                                               
a court of law and someone  says, 'There's not a guardrail there,                                                               
and why not?  The standard says  there should be.'  And then your                                                               
latitude looks pretty  thin at that point."  He  gave the example                                                               
of  single-lane   roads  and  how   those  present   problems  of                                                               
standards.                                                                                                                      
                                                                                                                                
Number 2043                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON asked how long  some of the projects in her                                                               
district would be postponed as a  result of the $12 million being                                                               
removed from the TRAAK.                                                                                                         
                                                                                                                                
MR. OTTESEN  characterized Representative Wilson's question  as a                                                               
difficult one  because lower-scoring  projects may be  trumped by                                                               
higher-scoring  projects.    The  lower-scoring  projects  linger                                                               
because of the program's being shrunk.                                                                                          
                                                                                                                                
REPRESENTATIVE WILSON  expressed concern  about that.   She asked                                                               
if the state could  wait to see how it would work  out.  She said                                                               
she has new concerns about the bill.                                                                                            
                                                                                                                                
Number 1954                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH  expressed concern about what  the bill is                                                               
trying to  accomplish since it  has been split  from HB 473.   He                                                               
said  it  was supposed  to  be  a House  Transportation  Standing                                                               
Committee  bill, but  he didn't  help draft  it and  doesn't even                                                               
know its purpose.                                                                                                               
                                                                                                                                
CHAIR  KOHRING said  it was  from his  office and  was labeled  a                                                               
House  Transportation  Standing  Committee bill  because  it  was                                                               
filed after the February 15th deadline for personal legislation.                                                                
                                                                                                                                
MR. KRIEBER added  that the purpose of the bill  is to address an                                                               
area where  the department has not  provided focus in the  past -                                                               
looking at  new roads.   He complimented the department  for "the                                                               
Northwest Plan"  and said  it is starting  to make  some movement                                                               
towards economic  development roads,  but he said  the department                                                               
is  not looking  at  the  smaller, basic  linkages  that help  in                                                               
lowering the  cost of  living in  areas.   In areas  where people                                                               
must fly in and bring fuel  in, people have higher costs, as does                                                               
the  state where  there is  power  cost equalization  (PCE).   He                                                               
indicated it is a policy issue  for the department with regard to                                                               
coming forward and  making recommendations on how  to spend money                                                               
on [the  rustic road] category.   Delaying the bill  would [cause                                                               
three years to be lost] because of the 2004-to-2006 STIP cycle.                                                                 
                                                                                                                                
Number 1800                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH  asked why  the department's  new category                                                               
would not work.                                                                                                                 
                                                                                                                                
MR. KRIEBER  characterized the department's new  category and the                                                               
rustic roads category as very similar.                                                                                          
                                                                                                                                
REPRESENTATIVE  KOOKESH asked:   Why  not have  a bill  that says                                                               
there  is  a  rustic  road   category  that  adds  to  what  [the                                                               
department] has already proposed?                                                                                               
                                                                                                                                
MR. KRIEBER answered  that the bill assigns  a funding percentage                                                               
to [the  funding categories].   The rustic road  funding category                                                               
would  still allow  money  to  be spent  on  roads identified  as                                                               
rustic; enhancements could still be made.   He called it a policy                                                               
issue of  the legislature.   It  would help  small-scale projects                                                               
get done.                                                                                                                       
                                                                                                                                
Number 1725                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON  asked  how  the  fiscal  notes  would  be                                                               
figured.                                                                                                                        
                                                                                                                                
MR. KRIEBER  answered, "What this  bill provides is  allowing the                                                               
use  of  the rustic  road  fund  category  to fund  this  project                                                               
without identifying them as rustic roads specifically."                                                                         
                                                                                                                                
REPRESENTATIVE  WILSON mentioned  $12 million  coming out  of the                                                               
TRAAK funding.                                                                                                                  
                                                                                                                                
MR. KRIEBER said  the cost was internal.  The  department will be                                                               
able to go out and do a  "real" study.  He characterized the task                                                               
force study  as ineffective.   The bill  would provide  a funding                                                               
source for improvements, to focus on  the roads listed as well as                                                               
any  others  that come  forward.    However, it  doesn't  provide                                                               
incentive  for DOT&PF  to pave  roads with  low usage.   He  took                                                               
issue  with Mr.  Ottesen's  position on  the  public process  and                                                               
cited  the  Hatcher  Pass  Road as  one  where  the  public-input                                                               
process failed.                                                                                                                 
                                                                                                                                
Number 1603                                                                                                                     
                                                                                                                                
MR. KRIEBER  said with  regard to the  TRAAK funding,  the scores                                                               
count.   New projects  can bump  projects that  have been  on the                                                               
list for ten years.  With  the implementation [in Version T], the                                                               
department is provided  two years of current funding  in the STIP                                                               
to carry it out.                                                                                                                
                                                                                                                                
REPRESENTATIVE  WILSON  said the  bill  would  cost her  district                                                               
three projects.   She asked what difference would be  made by the                                                               
economic study on any other projects in her district.                                                                           
                                                                                                                                
MR. OTTESEN  said it would  not make  any difference.   The money                                                               
would come out of the same  rustic road money discussed earlier -                                                               
the $12 million shifting from  TRAAK to rustic roads, and another                                                               
$4 million from the Alaska Highway Program.                                                                                     
                                                                                                                                
MR. OTTESEN  said the  department had been  looking at  the short                                                               
roads - roads  to landfill sites, water points,  barge points and                                                               
others -  and building them.   The next category up  - roads that                                                               
link villages and allow them  to share infrastructure - have been                                                               
held up  by environmental  processes and agencies.   He  told the                                                               
committee  it is  not  a lack  of departmental  will;  it is  the                                                               
process  that slows  the  construction  of the  roads.   He  said                                                               
getting to "yes"  and permits in hand is the  hardest part of the                                                               
process.                                                                                                                        
                                                                                                                                
Number 1466                                                                                                                     
                                                                                                                                
CHAIR KOHRING  offered that  the goal  of the  bill is  to ensure                                                               
funding that  would open  up more areas  for access  and economic                                                               
development;  it is  also  to promote  recreational  access.   He                                                               
concluded  by saying  he  didn't want  to push  the  bill in  the                                                               
absence of the committee's consensus.   He indicated HB 502 would                                                               
be held over.                                                                                                                   
                                                                                                                                
HB 500-ADVANCE ACQUISITION OF REAL PROPERTY                                                                                   
                                                                                                                                
Number 1388                                                                                                                     
                                                                                                                                
CHAIR  KOHRING  announced  that   the  final  matter  before  the                                                               
committee would  be HOUSE BILL NO.  500, "An Act relating  to the                                                               
advance acquisition of  real property for public  purposes."  [HB
500   was  sponsored   by  the   House  Transportation   Standing                                                               
Committee.  Before the committee was CSHB 500(CRA).]                                                                            
                                                                                                                                
CHAIR  KOHRING noted  that the  bill's purpose  is to  accomplish                                                               
having right-of-way  property well in advance  of construction of                                                               
a  particular  project.    This  would allow  the  state  to  buy                                                               
property when prices are low and thereby save money.                                                                            
                                                                                                                                
Number 1358                                                                                                                     
                                                                                                                                
MIKE KRIEBER,  Staff to Representative Vic  Kohring, Alaska State                                                               
Legislature,   presented  HB   500   on  behalf   of  the   House                                                               
Transportation  Standing Committee,  sponsor.   He read  from the                                                               
sponsor statement:                                                                                                              
                                                                                                                                
     Infrastructure   development   is   key   to   economic                                                                    
     development throughout Alaska.   Right-of-way corridors                                                                    
     are required  to access resources and  markets, enhance                                                                    
     interstate  commerce, and  improve Alaska's  quality of                                                                    
     life.   Economical  transportation utilities  are vital                                                                    
     to  developing Alaska's  raw resources  and value-added                                                                    
     products.    Lowering  the  cost  of  developing  these                                                                    
     corridors would allow Alaska's  resources to compete in                                                                    
     national and international markets.                                                                                        
                                                                                                                                
     Many times,  proposed resource extraction  projects are                                                                    
     hindered due  to lack  of established  right-of-ways to                                                                    
     access the  sites or to  move resources to market.   In                                                                    
     urbanized  areas, the  public process  to identify  new                                                                    
     [rights-of-way]   for    transportation   and   utility                                                                    
     corridors for  past-due projects  can extend  over long                                                                    
     periods.    This  results in  bitter  battles,  pitting                                                                    
     neighbor  against neighbor,  and  ending  up with  many                                                                    
     dislocated property owners.   Skyrocketing right-of-way                                                                    
     costs and  more expensive construction costs  result in                                                                    
     delay of projects and fewer projects statewide.                                                                            
                                                                                                                                
MR. KRIEBER  explained that the  bill is intended to  address the                                                               
problem of  having no  statutes to  allow for  the identification                                                               
and  preservation of  corridors for  future  use.   He cited  the                                                               
example of  the Parks Highway,  a 1.5-mile project for  which the                                                               
right-of-way costs  have risen  from $4  million to  $21 million.                                                               
There was  also an  eminent-domain case on  the project  that was                                                               
awarded  to the  department.   Mr. Krieber  outlined a  "snowball                                                               
effect" of costs triggering higher costs.                                                                                       
                                                                                                                                
Number 1213                                                                                                                     
                                                                                                                                
MR.  KRIEBER spoke  to the  issue of  rights-of-way for  private-                                                               
property owners.   People purchase property  for certain reasons,                                                               
for example, a  retirement home; a major utility  corridor or new                                                               
road  could impact  the  retirement  home.   Mr.  Krieber said  a                                                               
solution to  that problem  is the development  of a  process that                                                               
identifies   the  corridors,   memorializes   them,  and   allows                                                               
utilities  or the  department  to  pre-acquire the  right-of-way.                                                               
This would provide the public  with adequate public notice that a                                                               
project is  coming up, and  give the public  adequate information                                                               
when there is a purchase of property.                                                                                           
                                                                                                                                
MR.  KRIEBER said  the bill  concentrates on  eminent domain  for                                                               
advance  acquisition, but  only  when  certain prerequisites  are                                                               
met:   the proposed future use  is not too speculative,  the need                                                               
of the  property must be  reasonably foreseeable, and it  must be                                                               
in  a  long-range   transportation  plan  such  as   found  in  a                                                               
municipality or borough.                                                                                                        
                                                                                                                                
Number 1145                                                                                                                     
                                                                                                                                
MR. KRIEBER summarized by saying  the bill would result in direct                                                               
benefits:     decreased   right-of-way   acquisition  costs   and                                                               
accelerated  permitting  of  future  transportation  and  utility                                                               
projects.   Resource-extraction  and value-added  industries will                                                               
be  able to  capture  emerging markets  when  the conditions  are                                                               
right, by the  knowledge that their projects can  move forward in                                                               
a shorter  timeframe.  He said  property owners would be  able to                                                               
make more informed decisions before their purchase.                                                                             
                                                                                                                                
CHAIR KOHRING  said he did  not intend to  move the bill  out; he                                                               
just wanted to inform the committee about the bill.                                                                             
                                                                                                                                
Number 1030                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH asked how  advance acquisition of property                                                               
could take place  before engineering - the time  after which most                                                               
projects receive their funding.                                                                                                 
                                                                                                                                
MR. KRIEBER  answered by saying it  is an issue to  be looked at.                                                               
He said  it comes down to  federal funding.  He  referred back to                                                               
the Parks Highway  example and said the  federal government would                                                               
have reimbursed  the department if  it had  advance-purchased the                                                               
right-of-way; the  money saved by  taking advantage of  the lower                                                               
price could have gone into other projects.                                                                                      
                                                                                                                                
REPRESENTATIVE  KOOKESH  posited that  a  special  fund might  be                                                               
required to allow the state to  make advance purchases in lieu of                                                               
federal reimbursement.   He asked if such a fund  was part of the                                                               
bill.                                                                                                                           
                                                                                                                                
MR.  KRIEBER answered  that there  was  no such  fund within  the                                                               
bill, but he said the bill  would provide the language in statute                                                               
[that  would  allow a  fund].    He  said  it would  require  two                                                               
separate steps.                                                                                                                 
                                                                                                                                
Number 0987                                                                                                                     
                                                                                                                                
CHAIR KOHRING  mentioned a  similar idea  voiced in  the previous                                                               
meeting   by  the   department;   he  said   the  Department   of                                                               
Transportation  & Public  Facilities (DOT&PF)  was in  support of                                                               
the  bill  [but see  testimony  by  Mr.  Poshard at  the  current                                                               
hearing specifying support for the original version].                                                                           
                                                                                                                                
Number 0980                                                                                                                     
                                                                                                                                
REPRESENTATIVE SCALZI mentioned  that he'd heard the  bill in the                                                               
House Community  and Regional Affairs Standing  Committee meeting                                                               
earlier  that day,  and the  committee had  passed it  out [as  a                                                               
committee substitute  (CS), CSHB  500(CRA)].   He stated  that it                                                               
was comforting to know that  if DOT&PF purchased property through                                                               
eminent  domain  and then  later  decided  the property  was  not                                                               
needed, the original  owners, or their heirs, had  first right of                                                               
refusal to buy the property back at the original price.                                                                         
                                                                                                                                
Number 0942                                                                                                                     
                                                                                                                                
REPRESENTATIVE WILSON  asked what  would happen if,  for example,                                                               
an  environmental impact  study  prevented a  project from  going                                                               
through.                                                                                                                        
                                                                                                                                
MR. KRIEBER referred to Section 5 of  the bill as an example.  He                                                               
said  the same  language is  used for  each entity  given eminent                                                               
domain for advance acquisition.                                                                                                 
                                                                                                                                
Number 0832                                                                                                                     
                                                                                                                                
DENNIS POSHARD, Legislative Liaison,  Office of the Commissioner,                                                               
Department  of  Transportation  &  Public  Facilities,  testified                                                               
before  the committee.    He told  the  committee the  department                                                               
supports  the  concept  behind  HB  500,  but  would  prefer  the                                                               
original version.  Mr. Poshard  said a high potential for savings                                                               
makes it a good opportunity.   He made reference to a project for                                                               
which the construction portion of  the project costs $16 million,                                                               
while the right-of-way portion costs $22 million.                                                                               
                                                                                                                                
Number 0748                                                                                                                     
                                                                                                                                
MR. POSHARD said the bill would  help in a statement that makes a                                                               
claim for the need of a piece  of property.  If state funds could                                                               
be used for advance acquisition,  it would be much easier because                                                               
of  the  strings attached  to  federal  monies.   The  difference                                                               
between the original  bill and the CS [CSHB  500(CRA)] is Section                                                               
5.  The  CS would require the  state to sell the  property to the                                                               
original property owner  at the original cost.   He expressed his                                                               
understanding  of the  need to  give a  property owner  a benefit                                                               
that may been received, should  that property owner have retained                                                               
the property, but  the state would be investing state  funds on a                                                               
piece of property that the  owner could be [using for investment]                                                               
otherwise.   He  expressed reservations  about giving  the entire                                                               
amount of  value gained  on the property  to the  property owner.                                                               
The state would be losing property over time.                                                                                   
                                                                                                                                
Number 0584                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOOKESH reminded  the committee  that many  times                                                               
the  department  takes land  by  eminent  domain.   The  property                                                               
owners are not being given a  benefit; they are being taken from.                                                               
He said  the department is not  in the business of  making money;                                                               
it is in the business of saving money.                                                                                          
                                                                                                                                
MR.  POSHARD agreed  there are  times when  the department  takes                                                               
property  from people  who  don't  want it  taken,  but they  are                                                               
compensated  at least  for  fair market  value,  by federal  law.                                                               
Original property owners  should get some benefit.   He expressed                                                               
his concern,  however, about  loss to  the state  over time.   He                                                               
added that it would only be in a limited number of cases.                                                                       
                                                                                                                                
Number 0489                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOOKESH recommended  that AIDEA [Alaska Industrial                                                               
Development and  Export Authority]  be involved in  any potential                                                               
fund developed for the bill's purpose.                                                                                          
                                                                                                                                
Number 0418                                                                                                                     
                                                                                                                                
WENDY  LINDSKOOG,  Director,  External Affairs,  Alaska  Railroad                                                               
Corporation  (ARRC), testified  before the  committee.   She said                                                               
all of the  time and effort that goes into  preparing the land is                                                               
expensive, whether it  is used or not.  Some  of the value gained                                                               
when a piece  of land is sold  back to the original  owner at its                                                               
original  price could  go  towards offsetting  those  costs.   It                                                               
might be an incentive to see large projects go through.                                                                         
                                                                                                                                
REPRESENTATIVE KOOKESH  said the public doesn't  care about that.                                                               
When [the ARRC] thinks about its  own interest, that is fine, but                                                               
[the legislature] must think about the public interest.                                                                         
                                                                                                                                
MS.  LINDSKOOG  expressed   her  appreciation  of  Representative                                                               
Kookesh's point.  She said  the federal government allows for the                                                               
"mitigating risk" concept when  looking at property acquisitions.                                                               
She expressed  ARRC's support of  the bill in its  original form.                                                               
[HB 500 was held over.]                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 2:45                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects