Legislature(2013 - 2014)BARNES 124

02/26/2013 01:00 PM TRANSPORTATION


Download Mp3. <- Right click and save file as

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

Document Name Date/Time Subjects
HB 109 letter of support Homer Electric Association.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 Michael G Wiley Bridge Background Material.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 Michael G Wiley Bridge Sponsor Statement.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HB 109 support letters.msg HTRA 2/26/2013 1:00:00 PM
HB 109
HJR010A.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 - Sponsor Stmt Ver U.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 Exec Summary AK Trans Finance Study.pdf HTRA 2/26/2013 1:00:00 PM
NCSL-AASHTO Alaska profile.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
NCSL-AASHTO Study EXEC-SUM.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB0123A.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB 123 -ATIF Sponsor Stmt Ver C.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB109-DOT-CRHA-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HJR010-OOG-DOE-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HJR 10 AML 2013Priorities.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB 109 Support Letter CIAA.pdf HTRA 2/26/2013 1:00:00 PM
HB 109
HJR 10 Support LTR Union of Operating Eng.pdf HTRA 2/26/2013 1:00:00 PM
HJR 10
HB123-DCCED-DCRA-02-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DCCED-DED-02-23-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOA-DMV-2-23-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOR-TRS-2-22-13.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB123-DOT-PD-2-22-2013.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HB 123 Persily Report.pdf HTRA 2/26/2013 1:00:00 PM
HB 123
HJR 10
ATIF_2-25-13 payout spreadsheet.pdf HTRA 2/26/2013 1:00:00 PM
HB 122
HB 123
HJR 10
HJR 10, HB 123
HJR 10 HB 122 123 AOPA support letter.pdf HTRA 2/26/2013 1:00:00 PM
HB 122
HB 123
HJR 10