Legislature(2011 - 2012)CAPITOL 17

02/10/2011 01:00 PM TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 10 NONCOMMERCIAL TRAILER REGISTRATION FEE TELECONFERENCED
Heard & Held
*+ HB 102 SUSPENDING MOTOR FUEL TAX TELECONFERENCED
Heard & Held
*+ HB 57 BICYCLE PROGRAM TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                       February 10, 2011                                                                                        
                           1:07 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Lance Pruitt, Vice Chair                                                                                         
Representative Eric Feige                                                                                                       
Representative Craig Johnson                                                                                                    
Representative Cathy Engstrom Munoz                                                                                             
Representative Max Gruenberg                                                                                                    
Representative Pete Petersen                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 10                                                                                                               
"An Act relating to the registration fee for noncommercial                                                                      
trailers and to the motor vehicle tax for trailers."                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 102                                                                                                              
"An Act suspending the motor fuel tax; and providing for an                                                                     
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 57                                                                                                               
"An  Act authorizing  municipalities and  nonprofit organizations                                                               
to sponsor a  program to encourage the safe use  of bicycles as a                                                               
mode  of   transportation,  and   amending  the  duties   of  the                                                               
Department  of Transportation  and Public  Facilities to  include                                                               
administration of state funds appropriated for that purpose."                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 10                                                                                                                   
SHORT TITLE: NONCOMMERCIAL TRAILER REGISTRATION FEE                                                                             
SPONSOR(s): REPRESENTATIVE(s) STOLTZE, KELLER                                                                                   
                                                                                                                                
01/18/11       (H)       PREFILE RELEASED 1/7/11                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       TRA, FIN                                                                                               
02/10/11       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
                                                                                                                                
BILL: HB 102                                                                                                                  
SHORT TITLE: SUSPENDING MOTOR FUEL TAX                                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       TRA, FIN                                                                                               
02/10/11       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
                                                                                                                                
BILL: HB 57                                                                                                                   
SHORT TITLE: BICYCLE PROGRAM                                                                                                    
SPONSOR(s): SEATON                                                                                                              
                                                                                                                                
01/18/11       (H)       PREFILE RELEASED 1/7/11                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       TRA, FIN                                                                                               
02/10/11       (H)       TRA AT 1:00 PM CAPITOL 17                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DARRELL BREESE, Staff                                                                                                           
Representative Bill Stoltze                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 10 on behalf of the prime                                                                   
sponsor, Representative Bill Stoltze.                                                                                           
                                                                                                                                
WHITNEY BREWSTER, Director                                                                                                      
Division of Motor Vehicles (DMV)                                                                                                
Department of Administration (DOA)                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions during the                                                              
discussion of HB 10.                                                                                                            
                                                                                                                                
MARC LUIKEN, Commissioner                                                                                                       
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the discussion of                                                              
HB 10.                                                                                                                          
                                                                                                                                
MARC LUIKEN, Commissioner                                                                                                       
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the discussion of                                                             
HB 102.                                                                                                                         
                                                                                                                                
JOHANNA BALES, Deputy Director                                                                                                  
Tax Division, Anchorage Office                                                                                                  
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 102.                                                                                                           
                                                                                                                                
BOB HAJDUKOVICH, Chief Executive Officer (CEO)                                                                                  
ERA Aviation                                                                                                                    
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 102.                                                               
                                                                                                                                
REPRESENTATIVE PAUL SEATON                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   As  prime  sponsor,  presented HB  57  and                                                             
answered questions during the discussion of the bill.                                                                           
                                                                                                                                
JEFF OTTESEN, Director                                                                                                          
Division of Program Development                                                                                                 
Department of Transportation & Public Facilities (DOT&PF)                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 57.                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                              
1:07:23 PM                                                                                                                    
                                                                                                                                
CHAIR  PEGGY  WILSON  called the  House  Transportation  Standing                                                             
Committee  meeting  to  order at  1:07  p.m.  Representatives  P.                                                               
Wilson, Feige, Gruenberg,  and Petersen were present  at the call                                                               
to order.  Representatives Johnson,  Munoz, and Pruitt arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
          HB 10-NONCOMMERCIAL TRAILER REGISTRATION FEE                                                                      
                                                                                                                                
1:08:07 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON  announced that the first only  order of business                                                               
would be HOUSE BILL NO. 10,  "An Act relating to the registration                                                               
fee for noncommercial  trailers and to the motor  vehicle tax for                                                               
trailers."                                                                                                                      
                                                                                                                                
1:08:24 PM                                                                                                                    
                                                                                                                                
DARRELL BREESE, Staff, Representative  Bill Stoltze, Alaska State                                                               
Legislature,  on   behalf  of  the   prime  sponsor  of   HB  10,                                                               
Representative  Bill Stoltze,  explained  that HB  10 relates  to                                                               
registration fees  for noncommercial  trailers.  During  the 20th                                                               
Legislature  the legislature  passed  a  bill granting  permanent                                                               
trailer registration  for commercial  trailer owners.   This bill                                                               
would  offer the  same permanent  registration  to consumers  and                                                               
owner of noncommercial trailers.                                                                                                
                                                                                                                                
MR.   BREESE  offered   one  secondary   effect  should   provide                                                               
additional efficiency  and help streamline the  Division of Motor                                                               
Vehicles (DMV) processing of trailer  registrations.  He remarked                                                               
that  another measure  before the  legislature  would also  offer                                                               
similar  changes to  motor vehicles.   He  pointed out  that this                                                               
bill would  still allow  noncommercial trailer  owners to  opt to                                                               
use the biennial registration method  to pay fees rather than the                                                               
permanent registration.                                                                                                         
                                                                                                                                
CHAIR  P.  WILSON,  in   response  to  Representative  Gruenberg,                                                               
clarified  that  the  bill  heard  by  the  House  State  Affairs                                                               
Standing  Committee technically  was not  a companion  bill since                                                               
that bill refers to motor vehicles.                                                                                             
                                                                                                                                
1:11:15 PM                                                                                                                    
                                                                                                                                
MR. BREESE, in response to Chair  P. Wilson, agreed that the fees                                                               
would  increase  to  $100  for   the  permanent  registration  of                                                               
noncommercial trailers.   He explained  the process  to determine                                                               
the  registration fee  amount.   The sponsor's  goal attempts  to                                                               
cover costs by  projecting an estimated cost for  someone who has                                                               
owned a  trailer for 10 years.   Thus, the fees  included in this                                                               
bill would probably be close to  $100.  He further explained that                                                               
the DMV  did not project the  number of trailers that  these fees                                                               
may apply to since people often  register a trailer, park it, and                                                               
only  re-register the  trailer when  the owner  needs to  use the                                                               
trailer again.   This is unlike  a car since people  tend to keep                                                               
their  vehicles currently  registered.   While  using  a 10  year                                                               
ownership seemed  reasonable the fees in  HB 10 are not  based on                                                               
any statistical data.   In response to Chair  Wilson, he reported                                                               
that commercial  vehicle registration  fees currently are  a one-                                                               
time $20  fee.  He related  his understanding that the  intent of                                                               
the enabling  legislation for commercial trailers  are also based                                                               
on  the owner  paying increased  taxes  and higher  fees for  the                                                               
truck operation.   However, noncommercial  trailer fees  were not                                                               
adjusted since no additional taxes  are associated with the fees.                                                               
In further  response to Chair  Wilson, he answered that  the fees                                                               
for commercial trailers  are a flat $20 fee and  are not based on                                                               
the number of axles.                                                                                                            
                                                                                                                                
1:14:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE  asked  for  DMV's costs  to  register  one                                                               
trailer.                                                                                                                        
                                                                                                                                
MR. BREESE said he was unsure.                                                                                                  
                                                                                                                                
CHAIR  P.  WILSON  noted  that  someone from  the  DMV  would  be                                                               
testifying later who could answer that question.                                                                                
                                                                                                                                
1:14:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  referred to page  3, line 18 of  HB 10.                                                               
He asked which statutes are being repealed in this subsection.                                                                  
                                                                                                                                
MR. BREESE referred to page 3, lines  2-4 of HB 10.  He said that                                                               
this  language  is  being  reinserted  in  another  part  of  the                                                               
statute.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  GRUENBERG asked  for clarification  on the  fees.                                                               
He asked whether  the fees for noncommercial vehicles  on page 3,                                                               
line 1  of HB  10 would apply  if the person  decided to  pay the                                                               
biennial  fees.   If the  person decided  to apply  for permanent                                                               
registration fees,  the fees listed on  page 3, line 14  of HB 10                                                               
would apply.   He offered his belief that  the permanent one-time                                                               
fee would be $51 as opposed to $17 for an annual fee.                                                                           
                                                                                                                                
MR. BREESE, referred to page 2,  beginning on line 13 of the bill                                                               
to the  chart, "Tax  According to  Age of  Vehicle."   He advised                                                               
that the chart calculates the  taxes for the vehicle depending on                                                               
the vehicle's age.   The fee for a vehicle,  such as a motorcycle                                                               
[line 19] would be $17 in the first  year but would drop to $4 in                                                               
the eighth  year.  He  agreed that the biennial  registration for                                                               
every year  past the eighth  year would  be $4 for  a motorcycle.                                                               
He also agreed that  on page 3, line 14 of HB 10,  the fee of $51                                                               
refers to the permanent one-time fee.                                                                                           
                                                                                                                                
1:17:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ  asked why the fee  structure for commercial                                                               
fees is different than those for noncommercial vehicles.                                                                        
                                                                                                                                
MR.  BREESE   explained  that   owners  of   commercial  vehicles                                                               
currently pay  a higher  tax registration and  tax rate  based on                                                               
the weight  of the vehicle  and the number  of axles.   He stated                                                               
that the flat fee for  noncommercial vehicles is a structure that                                                               
was used  in the enabling  legislation.  This bill  is consistent                                                               
with the  enabling legislation,  which is to  charge the  bulk of                                                               
the fees  for a commercial  vehicle rather  than to charge  a fee                                                               
for  the  vehicle  being  towed.   An  owner  is  already  paying                                                               
registration fees for his/her truck  so an extra charge would not                                                               
be passed on for the vehicle registration in this bill.                                                                         
                                                                                                                                
1:18:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ asked whether the  analogy would also be the                                                               
same for noncommercial vehicles.                                                                                                
                                                                                                                                
MR. BREESE  agreed that some  consistency would be  achieved, but                                                               
to  be perfectly  consistent would  require  rewriting the  whole                                                               
section  for non-commercial  vehicles  and "that's  a bigger  pie                                                               
than we were trying to cut at this time," he said.                                                                              
                                                                                                                                
1:18:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG referred to the  title, which is "An Act                                                               
relating to  the registration fee for  noncommercial trailers and                                                               
to the motor  vehicle tax for trailers."  He  referred to page 1,                                                               
lines 12-14, to  proposed Section 2 of HB 10,  which applies only                                                               
to  noncommercial trailers.   He  reiterated that  subsection (j)                                                               
refers only to noncommercial vehicles.                                                                                          
                                                                                                                                
MR. BREESE  answered that  subsection (j)  reads, "When  a person                                                               
registers   a   trailer   not  used   or   maintained   for   the                                                               
transportation  of  person or  property  for  hire or  for  other                                                               
commercial use..."  He explained  that this subsection means that                                                               
if  the purpose  is not  for commercial  use that  this provision                                                               
would apply.                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG agreed, noting  the language is a double                                                               
negative, so he initially missed the intent.                                                                                    
                                                                                                                                
1:20:24 PM                                                                                                                    
                                                                                                                                
WHITNEY  BREWSTER, Director,  Division of  Motor Vehicles  (DMV),                                                               
Department   of  Administration   (DOA),  addressed   an  earlier                                                               
question by  Representative Feige.   She  responded that  she did                                                               
not have a  definitive answer to how much it  costs the agency to                                                               
process a trailer renewal but she  estimated the staff time for a                                                               
renewal transaction  would be about  three minutes.   She thought                                                               
an initial registration transaction  may take about seven minutes                                                               
to  complete.    She  pointed out  the  clerks  processing  these                                                               
transactions  fall in  the  payroll ranges  of  range 10-12.  She                                                               
estimated  the  time  needed to  process  noncommercial  trailers                                                               
would  be included  as part  of the  scope of  their regular  job                                                               
duties.   She explained that  online transactions cost  the state                                                               
about  $1 per  transaction  and including  the  credit card  fees                                                               
charged would  amount to  two percent  of the  total transaction.                                                               
Thus,  transaction  fees would  cost  about  $2 on  noncommercial                                                               
trailer  registration fees  of  $30.   In  response  to Chair  P.                                                               
Wilson, she  answered that the  motor vehicle fees  collected are                                                               
deposited to the  general fund.  In further response  to Chair P.                                                               
Wilson, she agreed  that the revenue collected  would increase in                                                               
the  first  two   years  and  then  would   decrease  every  year                                                               
thereafter.                                                                                                                     
                                                                                                                                
1:23:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE asked  how many  trailer applications  were                                                               
anticipated per year.                                                                                                           
                                                                                                                                
MS.  BREWSTER answered  that the  DMV processes  about 5,000  new                                                               
trailer  applications   per  year.     In  further   response  to                                                               
Representative  Feige,  she  responded  that  due  to  the  small                                                               
numbers of registrations, the DMV  does not anticipate a decrease                                                               
or reduction in staff levels.                                                                                                   
                                                                                                                                
1:24:37 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON recalled that  the DMV's costs of  operation are                                                               
taken directly from the revenue it collects.                                                                                    
                                                                                                                                
MS.  BREWSTER  responded  that the  DMV  is  a  receipt-supported                                                               
services  organization, which  means  that the  DMV's funding  is                                                               
based on  the amount  of revenue  it generates.   In  response to                                                               
Chair  P. Wilson,  she  explained  that the  DMV  operates on  an                                                               
annual  amount of  $16.5 million.   The  proposed bill  would not                                                               
sufficiently impact the  DMV to affect its operating  funds.  She                                                               
added  that  the  DMV's   receives  approximately  $68.5  million                                                               
annually in total revenue.                                                                                                      
                                                                                                                                
1:26:37 PM                                                                                                                    
                                                                                                                                
MS. BREWSTER advised  that this program would be  a fairly simple                                                               
program to administer at the  DMV.  In response to Representative                                                               
Johnson, she answered that the DMV is neutral on HB 10.                                                                         
                                                                                                                                
MARC LUIKEN, Commissioner, Department  of Transportation & Public                                                               
Facilities (DOT&PF),  stated the  Department of  Transportation &                                                               
Public Facilities (DOT&PF)  does not have a position on  HB 10 at                                                               
this time.                                                                                                                      
                                                                                                                                
1:28:00 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON after  first determining no  one else  wished to                                                               
testify closed  public testimony  on HB 10.   She  explained that                                                               
the bill would be discussed at a subsequent hearing.                                                                            
                                                                                                                                
1:28:41 PM                                                                                                                    
                                                                                                                                
                HB 102-SUSPENDING MOTOR FUEL TAX                                                                            
                                                                                                                              
CHAIR P. WILSON  announced that the next order  of business would                                                               
be HOUSE  BILL NO. 102,  "An Act  suspending the motor  fuel tax;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
1:28:46 PM                                                                                                                    
                                                                                                                                
MARC LUIKEN, Commissioner, Department  of Transportation & Public                                                               
Facilities   (DOT&PF),   introduced   Johanna  Bales   from   the                                                               
Department  of Revenue  (DOR).   He  said that  the proposed  tax                                                               
suspension is one of many  measures the governor is putting forth                                                               
to  improve the  economic health  of Alaskans.     Suspending the                                                               
motor  fuel tax  demonstrates a  consistent tax  policy, just  as                                                               
modifying  Alaska's   Clear  &   Equitable  Share   (ACES)  would                                                               
potentially lower the tax burden  on oil companies.  The governor                                                               
would like  to lower the  tax burden for individual  Alaskans, as                                                               
well, he  said.  He  related that  suspending the motor  fuel tax                                                               
would provide  immediate tax  relief for  every citizen  in every                                                               
community throughout  the state.   He  explained that  the amount                                                               
saved  would vary  depending on  the type  of fuel  purchased but                                                               
most consumers  should save  up to $.08  per gallon  when fueling                                                               
their vehicles or  airplanes.  Many Alaska  communities deal with                                                               
the  highest energy  costs in  the  nation.   This proposed  bill                                                               
represents  one step  this administration  is  taking to  improve                                                               
Alaskans'  daily living  expenses.   This  bill  would provide  a                                                               
temporary  reduction in  the  cost of  motor  fuel while  efforts                                                               
continue  to find  long-term solutions  to  higher energy  costs.                                                               
Some people  have speculated that  suspending the motor  fuel tax                                                               
may   impact  Alaska's   federal   funding  for   transportation.                                                               
However,  the  state's motor  fuel  tax  has no  relationship  to                                                               
Federal Highway  Administration (FHWA)  funds.   Thus, suspending                                                               
the  motor fuel  tax  will  have no  impact  on Alaska's  current                                                               
federal  highway  or  airport   funding  levels.    Additionally,                                                               
Alaskans also fund significantly  more for transportation than is                                                               
collected in the state motor fuel tax revenues, he said.                                                                        
                                                                                                                                
1:31:04 PM                                                                                                                    
                                                                                                                                
COMMISSIONER LUIKEN explained that in  the proposed FY 12 budget,                                                               
$328.5 million  is set  aside for  the DOT&PF's  operating budget                                                               
and another $117 million in  general fund dollars will supplement                                                               
the capital budget.   He concluded that  figure represents almost                                                               
12  times more  than is  collected in  the motor  fuel tax.   The                                                               
federal tax, which  is also paid at the pump,  contributes to the                                                               
Federal  Highway Administration  Trust Fund  (FHWA). These  funds                                                               
are redistributed  back to the  states via formulas set  forth in                                                               
the federal  bills related to  highways and  airport improvement.                                                               
He advised that these formulas have  nothing to do with whether a                                                               
state  collects a  separate  motor  fuel tax  since  there is  no                                                               
federal requirement  for states to  collect a gas tax  to support                                                               
transportation.   He asked whether  the Congress  would retaliate                                                               
for  Alaska suspending  this  motor fuel  tax  and answered  that                                                               
"it's unlikely."   He pointed out that at least  four states have                                                               
suspended  their  motor  fuel  taxes prior  to  the  most  recent                                                               
surface  transportation  bill,  Safe, Accountable,  Flexible  and                                                               
Efficient Transportation  Equity Act of 2004  (Safetea Lu), which                                                               
went into effect  in 2005.  He remarked that  those states saw an                                                               
increase  in federal  highway  aid.   He  commented  on a  recent                                                               
Juneau  Empire article,  addressing  this subject.   The  article                                                               
quoted as  saying, "It's  difficult to  assert that  Alaska needs                                                               
more money  when it contributes  little itself and is  seeking to                                                               
reduce that."  He referred to charts in member's packets.                                                                       
                                                                                                                                
1:32:49 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  LUIKEN offered  that this  chart demonstrates  that                                                               
Alaskans  have  consistently  funded transportation  out  of  the                                                               
state's  general funds  in  lieu of  funding  other worthy  state                                                               
interests.    The  chart  shows  that  since  Safe,  Accountable,                                                               
Flexible,  Efficient  Transportation  Equity Act:  A  Legacy  for                                                               
Users  (SAFETEA-LU)  went into  effect  in  2005, the  state  has                                                               
funded over  $300 million for  transportation in five of  the six                                                               
years, peaking in  FY 07 at $600 million.   He related suspending                                                               
the motor  fuel tax would  affect the  state's budget in  that it                                                               
may equate  to a  decrement in  the budget.   He referred  to the                                                               
capital  budget,  reporting  that  76  percent  is  derived  from                                                               
federal receipts.   The remaining 24 percent is  derived from the                                                               
state's general fund and other  sources such as the International                                                               
Airport   System  (IAS)   receipts,   bonds,  Alaska   Industrial                                                               
Development  and  Export  Authority (AIDEA)  dividend  funds  and                                                               
Highway  Working Capital  funds  for the  state equipment  fleet.                                                               
The general  fund and the  state capital budget are  derived from                                                               
the same source  that funds 56 percent of  the DOT&PF's operating                                                               
budget.   He  said that  is what  it  is:   a general  fund.   He                                                               
referred again to the newspaper  article indicated that the state                                                               
would be forfeiting $40 million  in state transportation funding.                                                               
However, he  argued that since  no direct link between  the motor                                                               
fuel tax revenue and the DOT&PF's  budget.  He concluded that one                                                               
could  not  make a  link  between  the  motor  fuel tax  and  the                                                               
DOT&PF's budget.  He asserted  that suspending the motor fuel tax                                                               
in  2008 did  not  impact  the department's  budget  nor will  it                                                               
impact the  DOT&PF's budget now.   In fact, suspending  the motor                                                               
fuel tax  would significantly impact  Alaska's economy.   It will                                                               
benefit  many of  our largest  industries, including  the largest                                                               
employer, the fishing  industry.  The United  Fisherman of Alaska                                                               
(UFA) indicated  suspending the motor  fuel tax would  benefit to                                                               
thousands  of   fishermen  statewide.    Trucking   and  aviation                                                               
industries and consumers  will also profit, he said.   The DOT&PF                                                               
received  letters  of  support   from  the  Alaska  Air  Carriers                                                               
Association, indicating the economic  benefits this suspension of                                                               
the  motor fuel  tax would  have  on hundreds  of Alaska's  rural                                                               
commercial air carriers.   Additionally, Alaska Airlines provided                                                               
a  letter  of  support  for   this  bill,  as  did  the  National                                                               
Federation  of Independent  Businesses.    He  said, "The  bottom                                                               
line:  right  now there is no compelling need  to collect a motor                                                               
fuel tax  - at this time."   Suspension of the  tax benefit every                                                               
Alaskan  in  every community,  while  some  will gain  more  than                                                               
others, but  it will  be meaningful  to all  since this  money is                                                               
returned to Alaskans' pockets, he also said.                                                                                    
                                                                                                                                
1:36:01 PM                                                                                                                    
                                                                                                                                
JOHANNA BALES,  Deputy Director, Tax Division,  Anchorage Office,                                                               
Department of  Revenue (DOR), stated  that technically  this bill                                                               
would suspend the  motor fuel tax for two  fiscal years beginning                                                               
with July 1,  2011 and ending June 30, 2013.   She explained that                                                               
motor fuel dealers would still  need to report their highway fuel                                                               
sales in order  for the state to meet  its reporting requirements                                                               
to the  FHWA on fuel consumption  in Alaska, or its  FHWA funding                                                               
could be  affected.   This bill  does ensure  that the  DOR would                                                               
continue to receive is reports.   She noted that Alaska's current                                                               
motor fuel tax  for highway use is set at  $.08, $.05 for marine,                                                               
$.043 for jet  fuel, and $.037 for aviation fuel.   At $.08 cents                                                               
per gallon,  the excise tax is  the second lowest in  nation, yet                                                               
the fuel  pump costs are the  second highest in the  nation.  She                                                               
remarked  that it  is only  more  expensive to  purchase fuel  in                                                               
Hawaii.   She said "Obviously,  it's not  our tax that  is making                                                               
Alaskans pay a lot, but this  little amount of tax, if suspended,                                                               
would  put  about $40  million  back  into  our economy  to  help                                                               
Alaskans."   In response to  Chair Wilson, she explained  that 60                                                               
percent  of  the revenue  collected  from  aviation fuel  tax  is                                                               
shared with municipal airports.   She noted that the governor has                                                               
requested an  appropriation to replace  any revenue  airports may                                                               
lose as a  result of the tax suspension.   In further response to                                                               
Chair Wilson, she said the  anticipated loss in aviation fuel tax                                                               
to  municipalities is  not reflected  in  the fiscal  note.   She                                                               
related that request would be  handled during the budget process.                                                               
She explained  the DOR's  fiscal note  has a  notation explaining                                                               
the special appropriation to municipalities.                                                                                    
                                                                                                                                
1:38:24 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  asked  for  an overall  cost  to  the state  to                                                               
suspend the motor fuel tax.                                                                                                     
                                                                                                                                
MS.  BALES answered  that in  terms of  loss of  revenue and  the                                                               
$140,000  in   municipal  sharing,  that  the   overall  cost  to                                                               
implement HB  102 would be  approximately $39,140,000,  since the                                                               
state  receives approximately  $39  million in  fuel  taxes.   In                                                               
further response to  Chair Wilson, she responded that  all of the                                                               
motor fuel tax goes directly to the general fund.                                                                               
                                                                                                                                
1:39:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON pointed out that  his packet does not show                                                               
any letters of support.                                                                                                         
                                                                                                                                
COMMISSIONER LUIKEN offered to submit  them to the committee.  In                                                               
further  response  to  Representative Johnson,  the  commissioner                                                               
offered  to contact  the  governor's office  for  any letters  in                                                               
opposition to HB 102.                                                                                                           
                                                                                                                                
1:40:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ  related  her understanding  that  airports                                                               
receive a  portion of this  tax, including Juneau  and Ketchikan.                                                               
She  asked   whether  the  governor  including   funding  to  the                                                               
facilities  during   prior  years  when  the   aviation  tax  was                                                               
suspended.                                                                                                                      
                                                                                                                                
MS. BALES related  the governor has indicated  his assurance that                                                               
an  appropriation would  be requested  in  the operating  budget,                                                               
noting that in  2008, airports received an  appropriation for the                                                               
period when the aviation tax was suspended.                                                                                     
                                                                                                                                
1:41:00 PM                                                                                                                    
                                                                                                                                
CHAIR  P. WILSON  asked  whether funding  for  this proposal  was                                                               
included in the Governor's FY 12 budget.                                                                                        
                                                                                                                                
MS.  BALES related  her understanding  that the  appropriation is                                                               
not included in  the FY12 operating budget.  She  also offered to                                                               
check whether the request is included in the amended budget.                                                                    
                                                                                                                                
1:41:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRUITT  asked for ways  the state would  "make up"                                                               
for this lost revenue.                                                                                                          
                                                                                                                                
MS. BALES answered that the  state current collects a significant                                                               
amount of  oil taxes and the  treasury is "fairly healthy."   She                                                               
offered her belief that the  governor feels that any losses would                                                               
be recovered by oil taxes received  in the past several years due                                                               
to the  high price  of oil,  which "incidentally"  is one  of the                                                               
reasons that Alaskans are paying higher prices at the pump.                                                                     
                                                                                                                                
REPRESENTATIVE  PRUITT asked  whether  the  current budget  would                                                               
spend $25 million from savings.                                                                                                 
                                                                                                                                
MS. BALES said she was uncertain.                                                                                               
                                                                                                                                
1:42:35 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON offered her belief  that thus far the state plans                                                               
to use its  savings account to fund a portion  of the proposed FY                                                               
12  budget.   She asked  for  the total  amount of  any costs  to                                                               
proposals  that  are  geared  to  help  Alaska  be  considered  a                                                               
business friendly state.                                                                                                        
                                                                                                                                
MS.  BALES  offered to  put  together  some information  for  the                                                               
committee, but  she did  not have  any figures  at this  time for                                                               
effects of proposed legislation.                                                                                                
                                                                                                                                
1:44:25 PM                                                                                                                    
                                                                                                                                
BOB  HAJDUKOVICH, Chief  Executive Officer  (CEO), ERA  Aviation,                                                               
explained  that  Era Aviation  represents  four  airlines in  the                                                               
state:   Era Aviation, Frontier Flying  Service, Hagland Aviation                                                               
Services,  and Arctic  Circle Air  Service.   These airlines  are                                                               
wholly owned  by Alaskan investors  and currently  transport over                                                               
60  percent of  rural  passengers, transport  55  percent of  the                                                               
bypass  mail  to rural  communities  in  Alaska and  consume  5.6                                                               
million  gallons of  jet  fuel and  500,000  gallons of  aviation                                                               
gasoline.    This  bill  would  have a  direct  impact  on  these                                                               
airlines of  over $200,000 per  year.   He said, "At  this point,                                                               
anything helps."   He  offered his belief  that the  direction is                                                               
right, that the governor hopes to  save money for Alaskans and is                                                               
less concerned about  the impact on Alaska's savings  fund at the                                                               
moment.   He  recalled earlier  comments on  proposed legislation                                                               
that would  affect new business in  Alaska.  He pointed  out that                                                               
his business  is a  foundational service that  is a  necessity in                                                               
Alaska,  in  particular in  rural  communities.   Currently,  the                                                               
price per barrel  is $.88 over last year,  which directly affects                                                               
the airlines profits  by $5 million based on  5.6 million gallons                                                               
of jet fuel.  He equated  this increase to translate to $8.21 per                                                               
passenger, per  leg, based on the  600,000 passengers transported                                                               
annually.                                                                                                                       
                                                                                                                                
1:47:11 PM                                                                                                                    
                                                                                                                                
MR. HAJDUKOVICH remarked  that the $202,000 seems like  a drop in                                                               
the  bucket  compared to  $5  million  expense increase  in  fuel                                                               
costs,  but it  is significant  since the  offset is  received in                                                               
higher oil  prices the  state receives.   The direct  benefit for                                                               
the proposed tax  decrease is that it  directly impacts Alaskans,                                                               
not to the state coffers, which is  critical.  He said he has not                                                               
seen oil  prices driven by  supply and  demand for well  over ten                                                               
years.   He said if the  industry was more elastic  the increased                                                               
costs  could  be  passed  through  to its  customers.    He  also                                                               
remarked  that the  airlines  would  see ebbs  and  flows in  oil                                                               
prices and prices  would be changed to reflect the  ebb and flow.                                                               
However, the  airlines have  seen a  progressive increase  and no                                                               
change  in the  supply or  demand,  or for  rural communities  to                                                               
adapt  to oil  prices.   He  recalled  a catastrophic  situation,                                                               
about a year  and a half ago, in which  oil prices peaked, noting                                                               
the villages are  still trying to recover.   He acknowledged that                                                               
the delegation wants the administration  to "ante up" but he said                                                               
it is the  consumer who bears the cost increases,  not the state.                                                               
His company represents the consumers, the  users of the fuel.  He                                                               
remarked that the governor is trying  to show that it is open for                                                               
business and  pushing back some  of the funding to  the consumers                                                               
is  critical,  he  stated.     He  predicted  that  the  national                                                               
political  scene is  not going  to change  appreciably, that  the                                                               
congressional delegation  will have uphill battle  trying to find                                                               
funding  for Alaska.   He  offered that  "we have  to look  after                                                               
ourselves to an extent..."                                                                                                      
                                                                                                                                
1:49:24 PM                                                                                                                    
                                                                                                                                
MR. HAJDUKOVICH  remarked that  he visited  Juneau last  week and                                                               
was  disturbed by  a comment  he  overheard, which  was that  the                                                               
state is  fortunate that while  production is down, the  price of                                                               
oil is  high, with little to  no recognition that as  an end user                                                               
that  the  industry has  a  "break  even"  point.   Further,  the                                                               
industry could tip over since it  is not possible to pass on $150                                                               
per barrel  oil prices  structure.  He  recalled oil  prices were                                                               
$39 ten years ago, that the  industry could handle $75 per barrel                                                               
prices.   He  reported a  disturbing  meeting he  held with  U.S.                                                               
Postal  Service  (USPS) earlier  today  over  the future  of  the                                                               
bypass mail  system.   He reported  that the  USPS is  losing $10                                                               
billion per year and spends $100  million in Alaska, and lose $70                                                               
million on that  investment in Alaska.  He  suggested that Alaska                                                               
would find continuing pressure at  the federal level to find ways                                                               
to  be aggressive  to  cut  funds considered  to  be earmarks  or                                                               
subsidies to Alaska.   He concluded that the state  needs to keep                                                               
its economy moving in the  right direction.  He said, "Businesses                                                               
that are current need to stay in  business so we can be there for                                                               
that uptick in  the trend, so that hopefully when  we're open for                                                               
business  for drilling  or resource  development, we'll  still be                                                               
here to take advantage of those opportunities."                                                                                 
                                                                                                                                
1:51:02 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON  recalled for the past four  years the delegation                                                               
members have reported that other  states perceive that Alaska has                                                               
not  paid  its fair  share  of  its  transportation funds.    The                                                               
delegation encouraged Alaska  to show it was "stepping  up to the                                                               
plate"  to provide  its share.   She  remarked that  other states                                                               
view the state's share of funds,  which are returned to the state                                                               
in  FHWA funding.   She  further  recalled that  Alaska has  been                                                               
receiving more per capita than any  other state.  Even though the                                                               
motor  fuel tax  has  no  correlation to  the  FHWA funds,  other                                                               
states do  not view  it that  way.   She anticipates  that Alaska                                                               
will be receiving less in federal funds than it has in the past.                                                                
                                                                                                                                
1:53:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FEIGE recalled  years  ago,  he traveled  through                                                               
West Virginia, and  it seemed every highway was  named the Robert                                                               
C. Byrd Memorial  Highway.  He remarked that many  of our federal                                                               
funds were  as a  result of  the late  U.S. Senator  Ted Stevens,                                                               
just  as the  West Virginia  highway was  named after  its senior                                                               
senator.  He stated that the  funding system has operated in this                                                               
way,  and some  states  receive a  disproportionate  amount.   He                                                               
agreed  with   the  previous   speaker,  Mr.   Hajdukovich,  that                                                               
suspending the  motor fuel  tax would have  a positive  impact on                                                               
Alaskans, and  while some income would  be lost on that  "side of                                                               
the pot" the state can recoup the revenues.                                                                                     
                                                                                                                                
1:55:10 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON, after first  determining no one else  wished to                                                               
testify, closed public testimony on HB 102.                                                                                     
[HB 102 was held over.]                                                                                                         
                                                                                                                                
                     HB 57-BICYCLE PROGRAM                                                                                  
1:55:33 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON announced that  the final order of business would                                                               
be  HOUSE BILL  NO. 57,  "An Act  authorizing municipalities  and                                                               
nonprofit  organizations to  sponsor a  program to  encourage the                                                               
safe use  of bicycles as  a mode of transportation,  and amending                                                               
the  duties  of  the  Department  of  Transportation  and  Public                                                               
Facilities to include administration  of state funds appropriated                                                               
for that purpose."                                                                                                              
                                                                                                                                
1:56:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL SEATON,  Alaska State Legislature, testifying                                                               
as prime sponsor of HB 57,  explained that this bill would create                                                               
a  safe bicycle  ridership program  in DOT&PF.   This  bill would                                                               
allow   municipalities  and   not-for-profit  organizations   the                                                               
opportunity  to  apply  for  grant funding  for  the  purpose  of                                                               
promoting bicycle use, distribution  and maintenance of bicycles,                                                               
bicycle helmets,  bicycle facilities,  and bicycle trailers.   He                                                               
commented  that  he would  request  an  amendment to  change  the                                                               
dates.                                                                                                                          
                                                                                                                                
1:57:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON explained  that affordable  transportation                                                               
has  been an  issue in  Alaska.   This bill  is designed  not for                                                               
recreational  transportation,   but  to   promote  transportation                                                               
alternatives,  which  is  why  some  additional  things  such  as                                                               
helmets and trailers  are included.  He offered that  it is great                                                               
to encourage  people to  use a  bicycle to  and from  the grocery                                                               
store, but people  need to have a means to  carry their groceries                                                               
home.  Under  this program, communities would apply  for funds to                                                               
meet specific community  needs such as a bike  share program, for                                                               
hubs, training programs, voucher programs, or outreach.                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON remarked  that Anchorage  and Juneau  have                                                               
bike programs.   Juneau's "Bikes, Bikes,  Bikes" program acquires                                                               
abandoned bikes through the police  department and donations from                                                               
the community.   A local youth  center paints them one  color and                                                               
loans them  out.  He  pointed to  letters of support  in members'                                                               
packets.                                                                                                                        
                                                                                                                                
1:59:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  referred to  page 3, line  8 of  HB 57,                                                               
noting the date would be changed  from 2012 to 2014.  He referred                                                               
to page 3, line 4, of the  bill, noting the date would be changed                                                               
from 2011 to 2012.  He asked for clarification.                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON agreed with the date changes.                                                                             
                                                                                                                                
2:00:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG  stated that  the original bill  [from a                                                               
prior year] contained a bike trail  program, which is not in this                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  agreed that the bike  trail program became                                                               
problematic so  the bill  defers to  the individual  community to                                                               
figure out what will work best for them.                                                                                        
                                                                                                                                
CHAIR P. WILSON  asked for clarification on  the individual grant                                                               
amounts.   She  recalled that  bicycle trailers  range from  very                                                               
simple to elaborate.                                                                                                            
                                                                                                                                
REPRESENTATIVE  SEATON said  he  envisioned  that the  applicants                                                               
would  apply  through  the  DOT&PF for  a  competitive  grant  to                                                               
institute their  community program,  likely ranging  from $15,000                                                               
to 20,000.  He remarked  that some communities would need covered                                                               
shelters or  bicycle racks.   The  program promotes  safe bicycle                                                               
practices  so individual  communities would  decide the  scope of                                                               
their   programs.     In  further   response  to   Chair  Wilson,                                                               
Representative Seaton  agreed that Anchorage might  need $100,000                                                               
for its proposal whereas a  smaller community like Wrangell would                                                               
need considerably less.                                                                                                         
                                                                                                                                
2:02:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PETERSEN asked  whether  community could  request                                                               
funding to put  racks on municipal buses to enable  people to use                                                               
bicycles in conjunction with public transportation.                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON  answered  that  it would  be  up  to  the                                                               
community to decide.                                                                                                            
                                                                                                                                
2:03:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  asked whether  most communities  would have                                                               
the ability to pay for programs without using grants.                                                                           
                                                                                                                                
REPRESENTATIVE SEATON  answered, "Not  necessarily."   He offered                                                               
that  many  villages  do  not  have  taxing  authority  and  some                                                               
bicycles are  made for  gravel and  dirt roads.   He  related the                                                               
purpose is  to provide an  alternative stimulus for using  a mode                                                               
of  transportation other  than four  wheelers and  pickup trucks.                                                               
This bill was  not meant as solely an urban  solution, but to aid                                                               
transportation and  to assist  in diminishing  Alaskan's reliance                                                               
on gas and diesel fuels.                                                                                                        
                                                                                                                                
2:04:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON pointed  out  an  administrator would  be                                                               
appointed by  the commissioner.   He  asked for  clarification on                                                               
the funding source for the grants.                                                                                              
                                                                                                                                
REPRESENTATIVE SEATON responded that  the funding source would be                                                               
through the legislature and from  federal matching.  He commented                                                               
that current  trends attempt  to foster  pedestrian and  non fuel                                                               
consuming  methods  of  transportation   instead  of  using  fuel                                                               
operated vehicles.   He stated  that part of  administrator's job                                                               
would  be  to  apply  for  grants,  depending  on  the  level  of                                                               
applicants from rural and urban communities.                                                                                    
                                                                                                                                
2:05:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON clarified that  this bill would add person                                                               
a person  to work to  obtain federal funding and  request general                                                               
funds for the program.                                                                                                          
                                                                                                                                
REPRESENTATIVE SEATON  agreed.  He  said the request  for funding                                                               
would be  for matching  funds or  for state  funding.   This bill                                                               
does not allocate  funds.  The program would be  funded using the                                                               
normal budget request process.                                                                                                  
                                                                                                                                
2:06:48 PM                                                                                                                    
                                                                                                                                
JEFF   OTTESEN,  Director,   Division  of   Program  Development,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
provided the  background on  bicycling in Alaska.   He  said that                                                               
clearly safety  is the biggest issue,  in the past ten  years the                                                               
DOT&PF statistics indicate an average  of two fatalities per year                                                               
and 19  major injuries.   He said  two fatalities does  not sound                                                               
significant,  but represents  twice  as many  fatalities as  road                                                               
rage  causes  in Alaska.    He  reported  that  no one  cause  is                                                               
paramount with many reasons for fatalities.                                                                                     
                                                                                                                                
MR. OTTOSEN  also reported that  Alaska is  sixth in nation  as a                                                               
means of using bicycles for transportation  to and from work.  He                                                               
concluded  that  bicycling is  important  in  Alaska, noting  the                                                               
statistics  have held  up over  the past  several census  cycles.                                                               
Bicycling  ranges  above the  national  average.   In  2007,  the                                                               
DOT&PF provided a  strategy in its highway safety  plan to reduce                                                               
crashes  involving   bicycles  by  using  public   education  and                                                               
outreach.   The DOT&PF  has found  the federal  training programs                                                               
designed  to teach  how to  train bicyclists  to be  safe highway                                                               
users are excellent, but the means  to get training out to people                                                               
is necessary.                                                                                                                   
                                                                                                                                
2:09:23 PM                                                                                                                    
                                                                                                                                
MR. OTTOSEN  referred to  HB 57,  noting that  the bill  does not                                                               
mention training or education.   He offered his belief that would                                                               
be an important addition to the  grant program.  He reported that                                                               
the DOT&PF has  a parallel program, Safe Routes  to School, which                                                               
is a  federally funded program  limited to  an area no  more than                                                               
two miles  from the school  focused on  grades K-8.   The program                                                               
does not  reach the  entire population  in the  state.   The Safe                                                               
Routes  to  School  has  been  successful  and  many  communities                                                               
encouraged bicycle use.   He referred to  a reflector distributed                                                               
to members  that the department  hopes to  place in the  hands of                                                               
every school age child.   Every school wants these reflectors, he                                                               
said.   He  reiterated that  its  program does  not address  high                                                               
school or adults.   He advised that the  FHWA recommends programs                                                               
focus on  the five "E" aspects  including engineering, education,                                                               
encouragement, evaluation, and enforcement.   He pointed out that                                                               
HB  57  focuses  on   education,  encouragement,  and  evaluation                                                               
practices.                                                                                                                      
                                                                                                                                
2:11:30 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON asked whether  the department could  absorb this                                                               
program into its current program  to avoid any additional general                                                               
fund expenditures.                                                                                                              
                                                                                                                                
MR.  OTTESEN  advised  that the  DOT&PF  programs  are  federally                                                               
funded,  so  DOT&PF's  staff  must spend  time  on  the  eligible                                                               
functions in the program.  Thus,  it is difficult to add in other                                                               
elements  to its  program  since staff  must  certify their  time                                                               
spent on the eligible criteria for the federally funded program.                                                                
                                                                                                                                
2:12:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  whether the  DOT&PF  appoints  an                                                               
administrator.                                                                                                                  
                                                                                                                                
MR. OTTOSEN envisioned that after  the first couple of years this                                                               
program would  require about  ten percent  of one  staff person's                                                               
time, which  would represent a  small fraction of  existing staff                                                               
time.  He introduced his two  staff members who are involved with                                                               
bicycle programs: Steve Soenksen a  Safe Routes to School Program                                                               
coordinator,   and  Bob   Laurie,   a   Bicycle  and   Pedestrian                                                               
Coordinator.   Both  positions are  federally funded  and one  of                                                               
these two staff would be assigned  the job as a ten percent duty,                                                               
which  would be  funded  by general  fund monies,  he  said.   In                                                               
further  response to  Representative  Johnson,  he explained  the                                                               
$40,000  in  personal  services.    The  first  two  years  would                                                               
represent  25 percent  of a  staff person's  time to  set up  the                                                               
program set up,  perform outreach, and develop regulations.    He                                                               
advised  that the  DOT&PF has  several other  grant programs  and                                                               
recognizes the importance  of elevating public awareness.   It is                                                               
necessary  to attend  meetings and  conferences  to help  educate                                                               
people on  the program, which  is the  reason for the  extra two-                                                               
year effort followed by the 10 percent staff time commitment.                                                                   
                                                                                                                                
REPRESENTATIVE   JOHNSON   asked   for   clarification   on   the                                                               
contractual amount.                                                                                                             
                                                                                                                                
MR. OTTOSEN answered that the  contractual amounts are focused on                                                               
conducting  surveys,  discovering  how people  use  the  program,                                                               
basically  to obtain  feedback for  the  DOT&PF on  how well  the                                                               
program is working.                                                                                                             
                                                                                                                                
2:14:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  asked for clarification on  the contractual                                                               
amount, which is for $10,000, but increases to $35,000 in FY 16.                                                                
                                                                                                                                
MR. OTTOSEN mentioned  that the DOT&PF works  with the Department                                                               
of Law (DOL) on its regulations so  at the start of a program and                                                               
every  five  years thereafter,  the  department  incurs costs  to                                                               
prepare  regulations and  updating regulations.   In  response to                                                               
Representative  Gruenberg,  Mr.  Ottesen  agreed  the  department                                                               
would like an educational component to the program.                                                                             
                                                                                                                                
REPRESENTATIVE  SEATON answered  that the  Safe Routes  to School                                                               
Program provides  for a  training program.   He related  that the                                                               
Department  of  Law  has  advised  the bill  title  is  for  safe                                                               
ridership,  which would  include education  and training,  but if                                                               
the  committee would  prefer the  title to  be more  specific, he                                                               
would not object to amending the bill to include it.                                                                            
                                                                                                                                
2:16:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRUENBERG recalled testimony  on a version of this                                                               
program last  year.  He  offered to assist in  developing similar                                                               
language for HB 57.                                                                                                             
                                                                                                                                
CHAIR P. WILSON  announced that she would  leave public testimony                                                               
open on HB 57.                                                                                                                  
                                                                                                                                
[HB 57 was held over.]                                                                                                          
                                                                                                                                
2:17:24 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 2:17                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
HB 10 Sponsor Statement.doc HTRA 2/10/2011 1:00:00 PM
HB 10
HB 10 Support Information.doc HTRA 2/10/2011 1:00:00 PM
HB 10
HB 10 Support Other States.docx HTRA 2/10/2011 1:00:00 PM
HB 10
HB0010A.PDF HTRA 2/10/2011 1:00:00 PM
HB 10
HB 57 backup DOT.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB010-TRA-DOA-DMV-02-04-11.pdf HTRA 2/10/2011 1:00:00 PM
HB 10
HB 57 Burnett letter of support.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 57 Kennedy Letter of support.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 57 Sectional Analysis.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 57 Bikes Program Description.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB057-DOT-AS-2-4-11.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
Anchorate Palmer Wasilla Plan.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 57 Paperman support.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 57 Lindholm support.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB57 Sponsor Statment.pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB57 text (2).pdf HTRA 2/10/2011 1:00:00 PM
HB 57
HB 102 fiscal Note DOA.pdf HTRA 2/10/2011 1:00:00 PM
HTRA 3/15/2012 1:00:00 PM
HTRA 3/22/2012 1:00:00 PM
HB 102
HB 102 fiscal Note DOR.pdf HTRA 2/10/2011 1:00:00 PM
HTRA 3/15/2012 1:00:00 PM
HTRA 3/22/2012 1:00:00 PM
HB 102
HB 102 Governors Sponsor.pdf HTRA 2/10/2011 1:00:00 PM
HTRA 3/22/2012 1:00:00 PM
HB 102
HB 102 Sectional.pdf HTRA 2/10/2011 1:00:00 PM
HTRA 3/15/2012 1:00:00 PM
HTRA 3/22/2012 1:00:00 PM
HB 102
HB 102 text.pdf HTRA 2/10/2011 1:00:00 PM
HTRA 3/22/2012 1:00:00 PM
HB 102