Legislature(2013 - 2014)BARNES 124
02/26/2013 01:00 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB109 | |
| HJR10 | |
| HB123 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 109 | TELECONFERENCED | |
| *+ | HJR 10 | TELECONFERENCED | |
| *+ | HB 123 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 26, 2013
1:04 p.m.
MEMBERS PRESENT
Representative Peggy Wilson, Chair
Representative Doug Isaacson, Vice Chair
Representative Eric Feige
Representative Lynn Gattis
Representative Bob Lynn
Representative Jonathan Kreiss-Tomkins
MEMBERS ABSENT
Representative Craig Johnson
COMMITTEE CALENDAR
HOUSE BILL NO. 109
"An Act naming bridge number 670, over the Kasilof River on the
Sterling Highway, the Michael G. Wiley Bridge."
- MOVED HB 109 OUT OF COMMITTEE
HOUSE JOINT RESOLUTION NO. 10
Proposing amendments to the Constitution of the State of Alaska
creating a transportation infrastructure fund.
- MOVED HJR 10 OUT OF COMMITTEE
HOUSE BILL NO. 123
"An Act relating to the transportation infrastructure fund, to
local public transportation, to the municipal harbor facility
grant fund, to motor fuel taxes, to the motor vehicle
registration fee, to driver's license fees, to identification
card fees, to the studded tire tax, to the vehicle rental tax,
and to other fees and taxes related to motor vehicles; creating
the Alaska Transportation Panel; and providing for an effective
date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 109
SHORT TITLE: NAMING MICHAEL WILEY BRIDGE
SPONSOR(s): REPRESENTATIVE(s) SEATON
02/11/13 (H) READ THE FIRST TIME - REFERRALS
02/11/13 (H) TRA, FIN
02/26/13 (H) TRA AT 1:00 PM BARNES 124
BILL: HJR 10
SHORT TITLE: CONST. AM: TRANSPORTATION FUND
SPONSOR(s): REPRESENTATIVE(s) P.WILSON
02/15/13 (H) READ THE FIRST TIME - REFERRALS
02/15/13 (H) TRA, JUD, FIN
02/26/13 (H) TRA AT 1:00 PM BARNES 124
BILL: HB 123
SHORT TITLE: DEDICATED TRANSPORT FUND/PUB TRANSPORT
SPONSOR(s): REPRESENTATIVE(s) P.WILSON
02/15/13 (H) READ THE FIRST TIME - REFERRALS
02/15/13 (H) TRA, FIN
02/26/13 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE PAUL SEATON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as sponsor of HB 109.
BRENT JOHNSON
Kasilof, Alaska
POSITION STATEMENT: Testified during the discussion of HB 109.
HOLLY NAGASAKO
Clam Gulch, Alaska
POSITION STATEMENT: Testified during the discussion HB 109.
ROBERT CORREIA
Kasilof, Alaska
POSITION STATEMENT: Testified during the discussion of HB 109.
PAUL SHADURA, Member
Kenai Peninsula Fisherman's Association (KPFA)
Kasilof, Alaska
POSITION STATEMENT: Testified in support of HB 109.
DAVID THOMAS, Member
Board of Directors
Homer Electric Association, Inc. (HEA)
Homer, Alaska
POSITION STATEMENT: Testified in support of HB 109.
AVES THOMPSON, Executive Director
Alaska Trucking Association, Inc. (ATA)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HJR 10.
BARBARA HUFF TUCKNESS, Director
Governmental and Legislative Affairs
Teamsters Local 959
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 10 and HB 123.
JOHN MACKINNON, Executive Director
Associated General Contractors of Alaska (AGC-AK)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HJR 10 and HB 123.
REBECCA ROONEY, Staff
Representative Peggy Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented a section-by-section analysis of
HB 123 on behalf of the sponsor, Representative Peggy Wilson.
ACTION NARRATIVE
1:04:49 PM
CHAIR PEGGY WILSON called the House Transportation Standing
Committee meeting to order at 1:04 p.m. Representatives Kreiss-
Tomkins, Feige, Lynn, Isaacson and P. Wilson were present at the
call to order. Representatives Gattis arrived as the meeting
was in progress.
HB 109-NAMING MICHAEL WILEY BRIDGE
1:05:31 PM
CHAIR P. WILSON announced that the first order of business would
be HOUSE BILL NO. 109, "An Act naming bridge number 670, over
the Kasilof River on the Sterling Highway, the Michael G. Wiley
Bridge."
1:05:51 PM
REPRESENTATIVE PAUL SEATON, Alaska State Legislature, testifying
as sponsor, stated that HB 109 would name a bridge number 670
that crosses the Kasilof River in honor of Michael G. Wiley.
Mr. Michael G. Wiley was a long-time member of the community who
served in many capacities. He was a Kenai-Peninsula Borough
(KPB) assembly member and a member of the Kenai Board of
Equalization. He served on the school board, on the Board of
Directors for the Homer Electric Association, Inc. (HEA). He
also worked as a teacher with Tustumena Elementary School and
Nanwalek Elementary School. He was an active member of the
Kenai Peninsula Garden Club and donated food annually to the
food bank, as well as being an active member of the Kenai
Historical Society. Many people recognized his untimely passing
this last year and would like to honor him as an upstanding
member of the community. He suggested other members of the
community could testify on this since he has only just touched
on Mr. Wiley's accomplishments. He related Mr. Wiley was very
active in alternative energy and promoted energy security on the
Kenai Peninsula. He asked members for their support for HB 109
to honor Mr. Michael G. Wiley.
CHAIR P. WILSON answered that Mr. Wiley sounds like he was very
active in his community.
1:08:44 PM
BRENT JOHNSON stated he met Mike Wiley in 1968. He became
acquainted with Mike Wiley from his work with the Kasilof
Historical Association (KHA). Mike Wiley faithfully worked to
restore cabins and even cut trees from his own property and
worked with crews to help restore cabins for the KHA. As
president of the Cook Inlet Aquaculture Association (CIAA), he
related that he also served with Mike. Additionally, Mike Wiley
subsequently became a board member of the CIAA in 2004 and in
2007 served as vice president as well as in many other
capacities for that organization. He related that he has
researched and written a biography on Mr. Mike Wiley and during
this process discovered that wherever Mike Wiley went he was
well liked and the children he taught also enjoyed learning from
him. Mike Wiley served as a volunteer for the Moose Pass fire
department and drove a school bus in Seward. Wherever he lived
Mike Wiley rolled up his sleeves, got involved, and was willing
to work for his community, he said.
1:11:12 PM
REPRESENTATIVE LYNN asked whether the bridge sign should read
Mike or Michael.
MR. JOHNSON deferred to the family to decide.
HOLLY NAGASAKO, speaking as Mr. Wiley's daughter, said that
Michael G. Wiley would be preferable for the bridge sign. She
said the expression "home is where the heart is" was evident in
her dad's life. She said from the day he came to Alaska in 1966
until he died, Alaska was his home and Alaska was where his
heart was. He made a commitment to make a difference in the
state and he was able to do so. As an educator, he gave his all
to the communities where he taught. When he lived in the Bush
his home was often considered the community center.
MS. NAGASAKO said her father provided encouragement, support,
and opportunities to many children and their families wherever
he taught. He worked continuously as a member of many
nonprofits and private sector initiatives to make the state a
better place. He held several elective offices and worked
tirelessly to represent his constituents. He believed in
citizen participation and encouraged many residents to become
involved. He made decisions based on facts and sought out the
best practices, whether he was creating lifelong learners,
fishing, working on the Alaska pipeline, preserving historic
sites and buildings, or looking at alternative energy sources.
He worked not only to meet the objectives and goals of those
endeavors, but he also advocated for the less privileged. She
said this is a great honor for her family to have this [bill]
considered.
1:13:53 PM
ROBERT CORREIA stated he has been a resident of Kasilof for over
50 years. He has known many old timers, but this effort to put
Michael G. Wiley's name on the Kasilof Bridge is all about
public service. He acknowledged that many reasons exist for a
community to recognize someone to honor them on the one and only
bridge, but this person [Michael G. Wiley] is someone who was
dedicated to this community and may be remembered forever
because of his service. He said that great Alaskans often give
a lot to their community, but no gift is greater than public
service. Mike Wiley's list of public service spanned over forty
years, ranging from teacher to school board, borough assembly to
HEA board, from serving the CIAA to Kenai Peninsula Fishermen's
Fund, and from serving on the Kasilof Historical Association to
the gardening club, and the list goes on, he said. In addition
to Mike's own commitment to volunteerism, he was a persistent
and tireless recruiter of others. He encouraged many people to
serve and make a difference and numerous people currently are
involved because of Mr. Wiley. Please help us recognize this
extraordinary Alaskan. He urged members to please support HB
109.
1:15:47 PM
PAUL SHADURA, Member, Kenai Peninsula Fisherman's Association
(KPFA), stated that he is speaking today on behalf of the KPFA,
which represents many of the 735 Cook Inlet Setnet fishermen.
He said Mr. Mike Wiley was a member for 26 years. He was a past
president of KPFA in 2005-2006. He related that Mike Wiley was
a setnet fisherman in the Cook Inlet area for 42 years. He was
a tireless volunteer for the community as a commercial
fisherman, educator, utility director, Kenai Peninsula Borough
(KPB) assemblyman, and as member of the Kenai Historical
Society, the CIAA, and other endeavors. He attested that Mike
was always there for those who were less fortunate or who just
needed a hand up in life. This organization - the KPFA -
believes no higher honor can be given to a person who dedicated
his life to community service than community recognition. He
asked the committee to please support HB 109 to rename the
bridge over the Kasilof River after Michael G. Wiley.
1:17:30 PM
DAVID THOMAS, Member, Board of Directors, Homer Electric
Association, Inc. (HEA), stated that he served with Michael G.
Wiley, who demonstrated his vast experience in education as a
teacher, in Alaska's waters as a fisherman, and in the community
as a volunteer, friend, helper, father, and grandfather. Using
sincerity and good humor, he became a consistent and fierce
advocate for fish, the downtrodden, renewable energy, and the
use of good grammar in all of the HEA's documents. He offered
his support for HB 109, to rename the bridge after Michael G.
Wiley.
1:18:34 PM
CHAIR P. WILSON, after first determining no one else wished to
testify, closed public testimony on HB 109.
1:18:52 PM
CHAIR P. WILSON asked whether the community would place its own
sign or if the fiscal note will be necessary.
REPRESENTATIVE SEATON said he has not been informed and DOT&PF
plans to place the sign. Thus he hasn't attempted to remove the
fiscal note; however, community members may decide to donate an
artistic sign.
CHAIR P. WILSON suggested the committee may zero out the fiscal
note.
1:19:38 PM
REPRESENTATIVE ISAACSON moved to report HB 109 out of committee
with individual recommendations and the accompanying fiscal
note, which was zeroed out. There being no objection, HB 109
was reported from the House Transportation Standing Committee.
CHAIR P. WILSON confirmed the committee did zero out the fiscal
note.
1:20:29 PM
The committee took an at-ease from 1:20 p.m. to 1:23 p.m.
[Chair P. Wilson turned the gavel over to Vice Chair Isaacson.]
HJR 10-CONST. AM: TRANSPORTATION FUND
[Contains discussion of HB 123.]
1:23:36 PM
VICE CHAIR ISAACSON announced that the next order of business
would be HOUSE JOINT RESOLUTION NO. 10, Proposing amendments to
the Constitution of the State of Alaska creating a
transportation infrastructure fund.
1:23:42 PM
REPRESENTATIVE P. WILSON, testifying as sponsor of HJR 10, began
by explaining the reason the state should create an Alaska
Transportation Infrastructure Fund (ATIF). She stated that in
FY 14, 79 percent of Alaska's transportation funding will be
derived from the federal government, which is reduced from 84
percent of federal funding for transportation in FY 10. The
state currently has $20 billion in backlog for transportation
projects as well as $700 million in deferred maintenance
projects. The state cannot even keep up with maintenance needs
let alone its other transportation needs. She reported that the
federal government has passed a new two-year highway bill, MAP
21. The overall federal funding remains consistent with the
Federal Highway Administration's (FHWA) Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for
Users (SAFETEA-LU) funding; however, funding for roads not on
the national highway program has been cut by 50 percent. Alaska
only has eight roads on the national highway program - the least
in the nation - which means that Alaska will see substantially
less funding for borough or city roads, she said. This will
happen since categories of funding have been reduced and the
FHWA is much more restrictive than in the past. In fact,
Alaska's U.S. Congressional delegation has told the legislature
that Alaska needs to rely less on the federal government and
should start shouldering some of the burden of improving its
transportation infrastructure. Federal funding has been
diminishing in many other areas, which translates into the
general fund dollars also shrinking, making every department's
portion less, as well. This resolution is about meeting the
ever growing transportation needs. She asked how Alaska will
keep up when it cannot even keep up with its transportation
maintenance, let alone financing new roads.
1:26:32 PM
REPRESENTATIVE P. WILSON related that over the past four years
this transportation committee has listened to the DOT&PF,
grassroots organizations, and transportation companies to
identify challenges in transportation in Alaska's geographically
diverse state. This committee traveled to villages and viewed
rural airports and rode Alaska's urban highways to see the
challenges with respect to safety and deferred maintenance.
This committee heard from the Alaska Municipal League (AML) and
the Matanuska-Susitna Borough (MSB), who have teamed together to
contract an independent study on the fiscal challenges of
transportation. This committee has heard from the National
Conference of State Legislatures (NCSL) to hear solutions other
states have implemented to address their transportation
problems. She pointed out that Larry Persily, Federal
Coordinator for Alaska Natural Gas Transportation Projects, has
put together a list of all the transportation funding options
available to address the fiscal shortfalls of our long range
transportation plan and his list is in members' packets. The
culmination of all those hours of committee hearings, travel,
and research has resulted in a three-part solution.
1:27:53 PM
REPRESENTATIVE P. WILSON summarized the three part solution:
One, the legislature should reinstate the dedicated
transportation fund; in other words pass the Alaska
Transportation Infrastructure Fund. Two, the legislature should
maintain Alaska's existing transportation funding by maintaining
its operational and capital budget and address the deferred
maintenance backlog. Three, the DOT&PF should execute more 100
percent state-funded projects rather than using federal funds.
She clarified that state-funded projects do not have to follow
the highly constrictive and lengthy Federal Highway
Administration (FHWA) procedures which are often expensive and
time consuming. With state-funded projects, Alaska's
constituents will see the direct benefits. For example, state
funds were used to construct the Elmore Road extension in
Anchorage, which was completed in three years rather than the
ten years it normally would have taken under federal funding
processes [FHWA]. This resolution, HJR 10, is not intended to
diminish the state's partnership with the federal government,
but its goal is to create a dedicated revenue stream in addition
to the capital projects to provide for transportation needs.
She emphasized that this fund is not intended to supplant
capital budget funds. Additionally, the ATIF will grow as the
investment returns on the fund compound.
1:29:51 PM
REPRESENTATIVE P. WILSON related the endowment would initially
be seeded with $2 billion [in general fund appropriation]. In
addition to the investment returns of the endowment, HJR 10 will
require revenues from fuel taxes, the Division of Motor
Vehicle's fees, taxes on tires, drivers' license fees, fees for
identification cards, and motor vehicle rental taxes to feed the
fund. The ATIF can expect to generate approximately $86 million
in the first year and $133 million the second year, and will
increase by about $4 million each subsequent year. She referred
to a spreadsheet in members' packets developed by the
Legislative Finance Division that estimates the [ATIF] fund
balance and the amount that is projected to be available each
year based on provisions of the enabling legislation.
1:30:45 PM
REPRESENTATIVE P. WILSON said historians have reported that the
drafters of Alaska's Constitution were concerned that dedicated
funds would impair future legislatures from responding to
evolving public needs. Thus the drafters created two dedicated
funds: one for highways and one for water and harbors. The
public's need for dependable and efficient transportation hasn't
changed since the constitution was written; instead, the needs
have only grown. An excerpt from the speech Governor Hickel
gave for his State of the State address almost twenty years ago
demonstrates that a dedicated transportation fund is not such a
radical a proposal to consider. She quoted Governor Hickel as
saying, "Over half the states already have one. Alaskans will
receive more stable service levels with a dedicated revenue
stream and if new revenues are needed, Alaskans will be assured
that any new transportation fees will go to transportation."
She urged members that Alaska needs to take action now. The
future of the economic and social well-being of Alaska's
citizens is critically dependent on a reliable transportation
system. This change to Alaska's Constitution would allow a
reinstatement of the dedicated transportation fund is needed to
create a modern and reliable transportation system for Alaska.
Transportation investment creates a competitive environment
which would attract additional economic investment to grow the
general fund, she said. This resolution is not the enabling
statute that will define how the fund will be managed, how the
funds will be distributed, or who the funds will receive the
funds. She concluded by reminding committee members that this
resource, [the ATIF] will allow the public to vote on recreating
the ATIF. She respectfully requested the committee move HJR 10
today.
1:32:52 PM
VICE CHAIR ISAACSON said he appreciated the fact that Chair
Wilson has been working on a dedicated transportation and he is
delighted to help move HJR 10 forward. He recalled the Division
of Motor Vehicles (DMV) will be funded such that it will not
diminish the fund, but will help reduce general fund
expenditures.
REPRESENTATIVE P. WILSON responded that the DMV currently is
funded through the receipts it receives and [the resolution or
bill] will not change the funding mechanism. In fact, the
funding mechanism for fees and taxes already designated will
remain the same, including fees for specialized license plates
or airplane fuel taxes, she said.
1:34:24 PM
VICE CHAIR ISAACSON understood [the ATIF] is not just to provide
for maintenance and operations (M&O) but will connect Alaska's
communities to each other.
REPRESENTATIVE P. WILSON agreed. She explained that she hoped
[the ATIF] would make a big difference to the economy of the
state. She offered her belief that Alaska currently does not
have enough transportation infrastructure in the state. Thus,
by using the fund she hoped many Roads to Resources (R2R)
projects would be finished and these projects will connect
communities to one another.
VICE CHAIR ISAACSON remarked the ATIF would also possibly fund
Revised Statute 2477 rights-of-way trails (R.S. 2477).
1:35:02 PM
REPRESENTATIVE KREISS-TOMKINS asked for the legal relationship
between the HJR 10 and HB 123. He understood HJR 10 is
necessary for the bill to take place and if the resolution
passes the legislature and the voters, the [ATIF] fund would be
ready to go.
REPRESENTATIVE P. WILSON answered yes; but clarified that HB 123
is the enabling legislation that provides the framework and HB
122 would appropriate the $2 billion into the endowment fund.
1:36:13 PM
AVES THOMPSON, Executive Director, Alaska Trucking Association,
Inc. (ATA) stated that the ATA is a statewide organization
representing the interests of its nearly 200 member companies
from Barrow to Ketchikan. He said that freight movement
represents a large chunk of Alaska's economy and impacts all of
us each and every day. He also said, "The simple truth is, that
if you got it a truck brought it." One of ATA's top priorities
is to establish a state transportation fund to invest state
dollars in our transportation systems. Trucks rely on the road
system to deliver the goods to ensure a safe and productive
transportation system and it is necessary to fund road
improvements.
MR. THOMPSON said that thousands of truck drivers are on
Alaska's highways every day and it's important to keep their
workplace safe and productive. Thus ATA supports a state funded
transportation program that will fund Alaska's highway projects
over and above current capital expenditure levels. He
understood he ATIF would also allow Alaska to focus Alaska's
federal dollars on the National Highway System (NHS) in Alaska.
He identified these connecting routes as ones that carry the
most traffic and freight on highways in Alaska. The state has
heard repeatedly that the Federal Highway Administration funding
(FHWA) will be reduced in the near future. Alaska's network of
highways allow for safe and efficient movement of more than
62,000 tons of freight each day and Alaska needs to continue to
provide a reliable and predictable funding stream to support
this system. A number of mega projects are on the horizon that
will require a dependable system of freight corridors to
maintain to support and maintain the flow of equipment that
Alaskans will need. The ATIF will help provide the necessary
funding for these roads and highways and will help meet local
project needs. He stated that HJR 10 will put a vote before the
people to give voters a chance to decide on whether to create a
dedicated transportation fund. Transportation user fees and
taxes are much easier to pay when they are used to build and
maintain Alaska's highway system. He concluded by stating that
ATA supports HJR 10. He urged the committee to move this
resolution forward.
1:39:04 PM
BARBARA HUFF TUCKNESS, Director, Teamsters Local 959, stated the
Teamsters Local 959 [Teamsters] consists of 7,000 members that
strongly support HJR 10. She said that the constitutional
amendment is long overdue. Additionally, she added the
Teamster's support for HB 123, which ties the package together.
She pointed out that the Teamsters represent members who work in
the trucking industry, and other industries, including health
care, mining, and telecommunications with the exception of
tourism and fisheries. She indicated Alaska has experienced a
lack of road systems and timeliness in receiving goods is
important. She stated that some of you have had my boss in your
office and heard him ask, "When's the last major road
construction project that you've seen in the state?" She
recalled that the answer goes back to the Pogo mine when former
Governor Steve Cowper was in office. The Teamsters hope this
constitution amendment will move forward. It puts in place a
system that takes away Alaska's dependence on federal funding.
She suggested that U.S. Congressman Don Young has worked very
hard to secure federal funding for Alaska. The Teamsters
believe it's time the state prepares for its own needs. Alaska
should move forward with its own transportation projects,
whether they are new roads or maintenance of existing roads.
She reiterated Representative P. Wilson's plan for cost savings
by using state dollars on projects instead of federal [FHWA]
dollars. In fact, state dollars have the ability to go farther
than federal funding since Alaska doesn't have the constraints
attached to its funding as does federal funding. She urged
members to support HJR 10.
1:42:20 PM
JOHN MACKINNON, Executive Director, Associated General
Contractors of Alaska (AGC-AK), stated that the AGC-AK is a
construction trade association comprised of 650 businesses in
Alaska. He related that a state-funded transportation program
is an essential element. He said his comments are relevant to
both HJR 10 and HB 123. He thanked Chair P. Wilson for her
support and persistence in pursuing this effort. He recalled
this is the third or fourth year she has pursued a dedicated
transportation fund. He acknowledged that Chair Wilson is as
passionate about this issue as are many of his members. He
related that he speaks from a position of knowledge and
experience. He previously served as a deputy commissioner of
DOT&PF in 2003-2007 and for the past five years has served as
the executive director of AGC-AK. He related he has a good
understanding of the current transportation program, the federal
program, the state appropriation process, the transportation
priorities, and problems and needs of the state. He highlighted
the important aspects of the ATIF, including that it would
provide substantial state funding to adequately address the
needs of Alaska; a user fee program; and in HB 123,
prioritization of projects based on need and not politics. The
goal of a state-funded program is to increase the level of
funding for transportation projects to supplement the declining
federal program. A regular source of state funding allows
alternatives to the federal program. Prior testifiers have
indicated state dollars go further than federal dollars, he
said. He offered his belief that this is not an exaggeration.
He explained that the DOT&PF routinely estimates a federal
dollar being worth about 75 cents compared to a state dollar.
He offered his support for HJR 10 and HB 123.
1:45:02 PM
VICE CHAIR ISAACSON, after first determining no one else wished
to testify, closed public testimony on HJR 10.
1:45:17 PM
REPRESENTATIVE FEIGE moved to report HJR 10 out of committee
with individual recommendations and the accompanying fiscal
note. There being no objection, HJR 10 was reported from the
House Transportation Standing Committee.
VICE CHAIR ISAACSON returned the gavel to Chair P. Wilson.
1:46:04 PM
The committee took an at-ease from 1:46 to 1:48 p.m.
HB 123-DEDICATED TRANSPORT FUND/PUB TRANSPORT
1:48:32 PM
CHAIR P. WILSON announced that the final order of business would
be HOUSE BILL NO. 123, "An Act relating to the transportation
infrastructure fund, to local public transportation, to the
municipal harbor facility grant fund, to motor fuel taxes, to
the motor vehicle registration fee, to driver's license fees, to
identification card fees, to the studded tire tax, to the
vehicle rental tax, and to other fees and taxes related to motor
vehicles; creating the Alaska Transportation Panel; and
providing for an effective date."
1:48:53 PM
REBECCA ROONEY, Staff, Representative Peggy Wilson, Alaska State
Legislature, offered to provide a section-by-section analysis of
the bill. She stated that HB 123 contains the enabling
statutes. She explained that Section 1 relates to
identification cards and directs fees which would be deposited
into the ATIF.
MS. ROONEY stated that under Section 2 registration fees would
be deposited to the ATIF, except for fees included in
subsections (d) and (f), which relate to specialized license
plates and special request plates since the revenues are for
special uses. Additionally, 3 percent of the funds destined for
the ATIF will be deposited into the general fund for the
administration of the Alaska Mandatory Insurance Act, which the
Department of Administration (DOA) would track. She explained
that the goal of Section 2 is to ensure that any special
designation currently receiving funds from vehicle registration
fees continues to receive them.
1:50:46 PM
MS. ROONEY stated that Section 3 would require all fees
collected by the DMV to be deposited to the ATIF, except for the
aforementioned fees in Section 2 and fees for snowmachines. She
listed the fees, including fees for permits, drivers' licenses,
and test fees, all commercial vehicle license fees and test
fees, and all fees associated with driving a motor vehicle.
These fees include such items as reinstatement fees for revoked
licenses, she said.
1:51:18 PM
MS. ROONEY related that Section 4 would amend the existing
statutes to allow the watercraft fuel tax account to be used to
finance the harbor facility grant fund. Since the marine fuel
tax will be directed to the dedicated ATIF, the watercraft fuel
tax would be deleted; however, the mechanism to appropriate to
the municipal harbor facility grant fund will be addressed in a
subsequent section of the bill.
MS. ROONEY characterized Section 5 as a technical amendment that
renumbers the specialty license fee subsections.
1:51:59 PM
MS. ROONEY described Section 6 as the heart of the bill. This
section identifies that the ATIF will consist of any
appropriations to the fund. Revenue from motor fuel taxes,
vehicle registrations, drivers' license fees, regular and
studded tire taxes, vehicle rental taxes, and other revenue
designated by the legislature will be deposited into the
proposed ATIF. She highlighted that proposed AS 37.14.850 (a)
(6), which read, "other revenue received from the vehicle rental
tax under AS 43.52.010 and 43.52.030 specifically allows
transportation user fees and taxes that have not yet been
created." Thus revenue from toll roads or transit user fees
would also apply and be deposited to the ATIF. The DOR is
charged to manage the fund to yield at least a six percent real
rate of return over time. The funds in the account at end of
the year remain in the account.
1:53:01 PM
MS. ROONEY referred to proposed AS 37.14.860, which requires the
commissioner of Department of Revenue (DOR) to prepare a report
on or before September 1 to identify the amount of five percent
of the average market value of the assets of the fund and 50
percent of the revenue for the previous fiscal year. In
response to Chair Wilson, Ms. Rooney expanded on this provision.
MS. ROONEY explained that five percent of the market value of
ATIF will be available for appropriation as well as 50 percent
of all the aforementioned revenues, such as the motor fuel tax
revenues and revenues collected by the DMV. She emphasized
revenues from the fund will be available for appropriation each
year. The September 1 report provides information for the
Alaska Infrastructure Panel to identify the list of projects
available. In further response to Chair Wilson, Ms. Rooney
explained that 50 percent of the ATIF's revenue will remain in
the fund to inflation-proof it while helping the ATIF grow at a
modest rate. She referred to a spreadsheet in members' packets
entitled, "Alaska Transportation Infrastructure Fund (ATIF)"
that shows the cumulative infrastructure investment growth [from
2014 through 2034.]
1:54:22 PM
MS. ROONEY explained that the appropriation identified in the
September 1 report will be designated for capital projects and
major maintenance for transportation infrastructure. She
pointed out the constitutional change in HJR 10 requires the
money be spent on transportation projects; however to provide
the legislature increased flexibility, the requirement that the
fund be used for transportation and major maintenance is being
placed in statutes. In the event the legislature needs money
from the fund for operations, all that would be necessary would
be a statutory change, which does not require a vote of the
people. Appropriations for federal matching funds cannot be
made unless the total used in that year does not exceed 20
percent. Thus, only up to 20 percent of the entire available
appropriation may be used for federalized projects, she said.
Specifically, this was done to squash the idea of supplanting
the money used for federal matching funds. She reiterated as
previous testifiers mentioned, state projects developed without
the arduous federal construction mandates are cheaper and faster
to build. Funds may be appropriated for roads and surface
transportation, aviation, the Alaska Marine Highway System
(AMHS), harbors, marine facilities, the municipal harbor
facility grant fund, community transportation and transit, bike
paths and trails, and the Alaska Railroad Corporation (ARRC).
1:56:10 PM
MS. ROONEY emphasized that the ATIF's revenue may not
appropriated for federal matching funds for roads and surface
transportation, aviation, and the AMHS. This provision is to
ensure that this new fund will not supplant proposed
transportation projects in the capital budget using federal
funding.
1:56:25 PM
MS. ROONEY referred to proposed AS 37.14.870 establishes June 30
as the date to determinate of fair market value of the fund.
Proposed AS 37.14.880 would require the commissioner of DOR to
report to the legislature 10 days after start of the legislature
the condition and performance value of the fund.
MS. ROONEY stated that proposed AS 37.14.890 establishes an
Alaska Infrastructure Commission (AIC) to act [as an independent
body] to prioritize a list of eligible transportation projects.
She identified the membership will consist of the chairs of the
House and Senate Transportation Committees as non-voting
members; the commissioner of DOT&PF; six public members with
experience one or more modes of transportation - including one
member from each judicial district, and two members at large.
The members would serve staggered terms and the chair will be
elected from the public members by the group. All public
members will serve without pay, except for travel and per diem
to attend meetings. A set of criteria will be developed by the
DOT&PF to help the commission prioritize the projects. The
members will evaluate the project submissions and assign them a
numeric score. The AIC will submit a report to the governor and
the legislature no later than October 15 that would make
recommendations on the next year's transportation projects to be
funded from the ATIF.
MS. ROONEY related that proposed AS 37.14.899 provides a
definition section [to define "fund" to mean the ATIF.]
1:58:07 PM
MS. ROONEY referred to proposed Section 7, AS 43.40.010 (e),
which would retain the aviation reimbursement to the
municipalities that own or operate airports. All other funds
from aviation fuel would be deposited to the ATIF. Section 8
would require all motor fuel tax receipts to be deposited into
the ATIF, and any refunds will be paid from the fund.
MS. ROONEY related that proposed Section 9 would remove the
exception specified in AS 43.40.010(j) since it is repealed in
Section 16.
MS. ROONEY stated that proposed Section 10 would instruct the
motor fuel tax refund will be derived from the ATIF instead of
the highway fuel tax account in the general fund.
MS. ROONEY said that proposed Section 11 would require the
proceeds of the vehicle rental taxes shall be deposited into
ATIF. Proposed Section 12 would require tire fees and studded
tire taxes also be deposited into the ATIF.
MS. ROONEY explained that Section 13 would amend the list of
DOT&PF's responsibilities by adding three new items. One, the
department shall promote and support local public transportation.
Second, the department shall develop criteria for the AIC to use
when prioritizing transportation projects eligible for funding
from the ATIF. Third, the department shall develop guidelines
for the Alaska Transportation Panel (ATP) to determine which
projects will be funded by the department and which projects
will be funded using the ATIF.
1:59:42 PM
MS. ROONEY referred to Section 14, which would establish a seven
member Alaska Transportation Panel (ATP). The membership would
consist of four public members, one from each of the following:
Anchorage, Fairbanks, coastal rural communities, and one from
interior rural areas of the state. The aforementioned members
would be appointed by the governor and must have experience in
transportation. Additionally, the ATP would consist of the
commissioner of DOT&PF, and one member of the project evaluation
board or STIP board, and the Alaska infrastructure commission.
2:00:21 PM
MS. ROONEY stated that Section 15 is a conforming [or technical]
provision.
MS. ROONEY, in response to Chair Wilson, explained the Alaska
Transportation Panel will evaluate projects sent to DOT&PF for
funding for either federal funding projects or funding from the
ATIF. She explained that the commission will evaluate the list
identified for ATIF funding and set numerical scores.
2:01:09 PM
REPRESENTATIVE ISAACSON understood this panel would function
similar to a municipal planning organization and would also
request inclusion into the Statewide Transportation
Infrastructure Plan (STIP).
MS. ROONEY answered once DOT&PF receives the request it is
included in the STIP if the project is eligible for federal
highway administration (FHWA) funding. The aforementioned
process would allow the DOT&PF to make a decision on whether to
follow the STIP process for federal funding or the ATIP process
for state funding.
2:01:56 PM
MS. ROONEY stated that Section 16 would repeal the watercraft
fuel tax account, the special highway fuel tax account, and the
non-public highway use account within the general fund. She
explained that the fees and taxes will now be deposited to the
ATIF. Section 17 applies to all the revenues defined earlier in
the bill.
MS. ROONEY referred to Section 18, which provides the transition
during the first five years. This language requires the
commissioner of DOR to determine the amount of funding available
to appropriate each year. She explained that [the fund value]
would equal five percent of the market value of the ATIF as of
July 1, 2015 in the first year plus 50 percent of the revenue
from the previous year. In subsequent years the appropriation
would be five percent of the average of the fund - over two
years, then three, and as applicable - through 2020. The
commissioner of DOR is required to file a report on September 1
of each of the first five years identifying the funds available
for appropriation, she said.
MS. ROONEY indicated that Section 19 would stagger the AIC
members' terms. Section 20 would add a severability clause and
Section 21 adds a contingency clause, such that the change to
Alaska's Constitution [in HJR 10] must be passed by the voters
before HB 123 will take effect. She pointed out to
Representative Kreiss-Tomkins, who had an earlier question, how
the two measures work together. In short, HB 123 would not take
effect unless HJR 10 is approved by the voters, she said.
MS. ROONEY indicated that Section 22 establishes the effective
date of the ATIF stream beginning when the constitutional
amendment takes effect, which would be January 1, 2015.
2:03:55 PM
REPRESENTATIVE KREISS-TOMKINS asked for the projected revenues
for this fund based on current revenue sources and the revenues
relative to the DOT&PF's budget.
MS. ROONEY referred to a spreadsheet in members' packets
entitled, "Alaska Transportation Infrastructure Fund (ATIF)"
which shows the source of revenues by year, the payout rate, and
the expenses. She offered her belief this fund really pays for
itself plus it accumulates revenue. In the first year the total
available for capital would be $68.1 million and in the second
year it is projected to increase to $133.2 million. She related
that the amount available for capital appropriation is
anticipated to grow by about $4 million per year. She explained
that the projected revenues were derived from the revenue
resources book. In other words, the Legislative Finance
Division prepared this for the sponsor, she said.
2:05:17 PM
REPRESENTATIVE KREISS-TOMKINS understood the ATIF would grow ad
infinitum until the legislature otherwise acts.
MS. ROONEY answered yes.
[HB 123 was held over.]
2:08:08 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:08
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 109 letter of support Homer Electric Association.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 Michael G Wiley Bridge Background Material.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 Michael G Wiley Bridge Sponsor Statement.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HB 109 support letters.msg |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR010A.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 - Sponsor Stmt Ver U.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 Exec Summary AK Trans Finance Study.pdf |
HTRA 2/26/2013 1:00:00 PM |
|
| NCSL-AASHTO Alaska profile.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| NCSL-AASHTO Study EXEC-SUM.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB0123A.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB 123 -ATIF Sponsor Stmt Ver C.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB109-DOT-CRHA-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR010-OOG-DOE-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HJR 10 AML 2013Priorities.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB 109 Support Letter CIAA.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 109 |
| HJR 10 Support LTR Union of Operating Eng.pdf |
HTRA 2/26/2013 1:00:00 PM |
HJR 10 |
| HB123-DCCED-DCRA-02-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DCCED-DED-02-23-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOA-DMV-2-23-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOR-TRS-2-22-13.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB123-DOT-PD-2-22-2013.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 |
| HB 123 Persily Report.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 123 HJR 10 |
| ATIF_2-25-13 payout spreadsheet.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 122 HB 123 HJR 10 HJR 10, HB 123 |
| HJR 10 HB 122 123 AOPA support letter.pdf |
HTRA 2/26/2013 1:00:00 PM |
HB 122 HB 123 HJR 10 |