04/27/2004 01:40 PM House TRA
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
April 27, 2004
1:40 p.m.
MEMBERS PRESENT
Representative Jim Holm, Chair
Representative Beverly Masek
Representative Vic Kohring
Representative Dan Ogg
Representative Nick Stepovich
Representative Albert Kookesh
MEMBERS ABSENT
Representative Mary Kapsner
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 255(FIN)
"An Act relating to traffic preemption devices."
- MOVED CSSB 255(FIN) OUT OF COMMITTEE
SENATE BILL NO. 316
"An Act relating to motor vehicle safety belt violations."
- HEARD AND HELD
HOUSE BILL NO. 556
"An Act relating to a port development project at Lynn Canal,
providing legislative approval for the Alaska Industrial
Development and Export Authority to issue bonds or otherwise
provide financing for the project; and providing for an
effective date."
- MOVED CSHB 556(TRA) OUT OF COMMITTEE
HOUSE BILL NO. 526
"An Act relating to a transportation corridor for extension of
the Alaska Railroad to Canada and to extension of the Alaska
Railroad to connect with the North American railroad system."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 255
SHORT TITLE: ILLEGAL USE TRAFFIC PREEMPTION DEVICE
SPONSOR(S): SENATOR(S) THERRIAULT
01/12/04 (S) PREFILE RELEASED 1/9/04
01/12/04 (S) READ THE FIRST TIME - REFERRALS
01/12/04 (S) STA, JUD, FIN
02/12/04 (S) STA AT 3:30 PM BELTZ 211
02/12/04 (S) Heard & Held
02/12/04 (S) MINUTE(STA)
03/02/04 (S) STA AT 3:30 PM BELTZ 211
03/02/04 (S) Heard & Held
03/02/04 (S) MINUTE(STA)
03/04/04 (S) STA AT 3:30 PM BELTZ 211
03/04/04 (S) Moved CSSB 255(STA) Out of Committee
03/04/04 (S) MINUTE(STA)
03/05/04 (S) STA RPT CS 3DP SAME TITLE
03/05/04 (S) DP: STEVENS G, COWDERY, STEDMAN
03/19/04 (S) JUD RPT CS(STA) 3DP 1NR
03/19/04 (S) DP: SEEKINS, OGAN, THERRIAULT;
03/19/04 (S) NR: FRENCH
03/19/04 (S) JUD AT 8:00 AM BUTROVICH 205
03/19/04 (S) Moved CSSB 255(STA) Out of Committee
03/19/04 (S) MINUTE(JUD)
04/01/04 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/01/04 (S) Heard & Held
04/01/04 (S) MINUTE(FIN)
04/15/04 (S) FIN RPT CS FORTHCOMING 3DP 2NR 2AM
04/15/04 (S) DP: WILKEN, DYSON, STEVENS B;
04/15/04 (S) NR: GREEN, HOFFMAN; AM: OLSON, BUNDE
04/15/04 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/15/04 (S) Moved CSSB 255(FIN) Out of Committee
04/15/04 (S) MINUTE(FIN)
04/16/04 (S) FIN CS RECEIVED SAME TITLE
04/20/04 (S) TRANSMITTED TO (H)
04/20/04 (S) VERSION: CSSB 255(FIN)
04/21/04 (H) READ THE FIRST TIME - REFERRALS
04/21/04 (H) TRA, JUD
04/27/04 (H) TRA AT 1:30 PM CAPITOL 17
BILL: SB 316
SHORT TITLE: SEAT BELT VIOLATION AS PRIMARY OFFENSE
SPONSOR(S): SENATOR(S) BUNDE
02/11/04 (S) READ THE FIRST TIME - REFERRALS
02/11/04 (S) STA, JUD
02/26/04 (S) STA AT 3:30 PM BELTZ 211
02/26/04 (S) Moved SB 316 Out of Committee
02/26/04 (S) MINUTE(STA)
02/27/04 (S) STA RPT 2DP 1NR
02/27/04 (S) DP: STEVENS G, COWDERY; NR: STEDMAN
03/12/04 (S) JUD RPT 1DP 2NR
03/12/04 (S) DP: SEEKINS; NR: FRENCH, THERRIAULT
03/12/04 (S) JUD AT 8:00 AM BUTROVICH 205
03/12/04 (S) Moved SB 316 Out of Committee
03/12/04 (S) MINUTE(JUD)
03/19/04 (S) TRANSMITTED TO (H)
03/19/04 (S) VERSION: SB 316
03/22/04 (H) READ THE FIRST TIME - REFERRALS
03/22/04 (H) TRA, JUD
04/23/04 (H) JUD AT 1:00 PM CAPITOL 120
04/23/04 (H) <Bill Hearing Postponed>
04/27/04 (H) TRA AT 1:30 PM CAPITOL 17
BILL: HB 556
SHORT TITLE: AIDEA BONDS FOR LYNN CANAL PORT
SPONSOR(S): STATE AFFAIRS
04/21/04 (H) READ THE FIRST TIME - REFERRALS
04/21/04 (H) TRA, FIN
04/27/04 (H) TRA AT 1:30 PM CAPITOL 17
WITNESS REGISTER
DENNIS MICHEL, Staff
to Senator Gene Therriault
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 255 on behalf of its sponsor,
Senator Therriault.
TOM WILSON
Public Transportation
Municipality of Anchorage (MOA)
Anchorage, Alaska
POSITION STATEMENT: During discussion of SB 255, answered
questions.
ALLEN STOREY, Lieutenant
Central Office
Division of Alaska State Troopers
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Testified in favor of CSSB 255(FIN) and SB
316.
LAUREN WICKERSHAM, Staff
to Senator Con Bunde
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 316 on behalf of the sponsor,
Senator Bunde.
RICK MORRISON
National Automobile Dealers Association (NADA);
Alaska Automobile Dealers Association (AADA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 316.
KURT WINSTON, Regional Administrator
National Highway Traffic Safety Administration
US Department of Transportation
(No address provided)
POSITION STATEMENT: Testified in support of SB 316.
JOAN DIAMOND, Public Health
Department of Health & Human Services
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 316.
PAUL HARRIS, Director
Fairbanks Police Department
City of Fairbanks
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 316.
PETE EAGAN
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 316.
MARTHA MOORE
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 316.
DON SMITH, Administrator
Alaska Highway Safety Office
Division of Program Development
Department of Transportation & Public Facilities
Juneau, Alaska
POSITION STATEMENT: Urged the committee to report SB 316 out of
committee.
CINDY CASHEN, Executive Director
Juneau Chapter
Mothers Against Drunk Driving (MADD)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 316.
REPRESENTATIVE BRUCE WEYHRAUCH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Spoke as the sponsor of HB 556.
JIM McMILLAN, Deputy Director, Credit
Alaska Industrial Development & Export Authority (AIDEA) and
Alaska Energy Association (AEA)
Department of Community & Economic Development (DCED)
Anchorage, Alaska
POSITION STATEMENT: During discussion of HB 556, explained the
IRS requirements for this project to be tax-exempt bonds.
TIM ARNOLD, Vice President/General Manager
Coeur Alaska
Juneau, Alaska
POSITION STATEMENT: Discussed HB 556.
ACTION NARRATIVE
TAPE 04-15, SIDE A
Number 0001
CHAIR JIM HOLM called the House Transportation Standing
Committee meeting to order at 1:40 p.m. Representatives Holm,
Masek, Stepovich, and Kohring were present at the call to order.
Representatives Ogg and Kookesh arrived as the meeting was in
progress.
SB 255-ILLEGAL USE TRAFFIC PREEMPTION DEVICE
CHAIR HOLM announced that the first order of business would be
CS FOR SENATE BILL NO. 255(FIN), "An Act relating to traffic
preemption devices."
Number 0050
DENNIS MICHEL, Staff to Senator Gene Therriault, Alaska State
Legislature, presented SB 255 on behalf of its sponsor, Senator
Therriault. He explained that in Alaska traffic preemption
devices (TPDs) were originally only used by emergency response
providers. This legislation would only allow use of TPDs when
en route to an official emergency. This legislation would make
it a class A misdemeanor to own or operate TPDs in a nonofficial
capacity. However, the legislation does include an exemption
allowing maintenance personnel to repair or maintain these
devices. There is also an exemption for state or municipal road
maintenance vehicles such that in the middle of the night
snowplows would be able [to utilize TPDs] and not have to stop
at a stop light with a blade full of snow. The legislation also
includes an exemption for public transit so that TPDs could be
used in order to create more efficient bus service. The
aforementioned would have to be approved by the local community.
MR. MICHEL noted that SB 255 has three zero fiscal notes and one
indeterminate fiscal note. Mr. Mischel stated that SB 255 is
legislation that would increase the security of intersections
and streets throughout the state. In response to Chair Holm,
Mr. Michel confirmed that the thought behind the exemption for
public transit is that when there is no one at the stoplight
save the bus, the bus driver could press the button and not wait
the few minutes for the light to cycle to green. He further
noted that with these larger maintenance vehicles, the starting
and stopping increases maintenance costs for the vehicle as well
as creates pollution.
Number 0320
REPRESENTATIVE STEPOVICH asked if public transit includes school
buses.
MR. MICHEL explained that the public transit exemption was
included because Anchorage would like to permit the use of TPDs
on its [city] bus, not a school bus. This [exemption] could be
applied to school buses, although it would require a vote of the
municipality.
Number 0372
REPRESENTATIVE MASEK inquired as to the reason this legislation
was introduced.
MR. MICHEL said that currently TPDs aren't illegal, and
therefore there is no data regarding whether [the unofficial use
of] these devices have caused accidents. However, in the Lower
48 there have been situations in which the [unofficial] use of
TPDs have caused accidents. This legislation is preventative.
Mr. Michel explained that this legislation was brought to
Senator Therriault by Dave Tyler (ph), North Star Fire Service,
because Lower 48 fire chiefs have related problems with the use
of TPDs.
REPRESENTATIVE STEPOVICH asked if all the signals are fitted
with this capability.
MR. MICHEL replied no. Currently, only state roads have
receivers for TPDs. In Anchorage, approximately 27
intersections on the large roads have these receivers.
Anchorage and Fairbanks are special cases in that the city or
municipality includes states roads in its city or borough, and
therefore, [some state roads] appear to be city roads.
CHAIR HOLM asked if there is any reason why Anchorage can't
utilize TPDs on city or municipal roads.
MR. MICHEL answered that he didn't believe so, but opined that
only the state wanted the added costs of putting these
[receivers for TPDs] on stoplights.
Number 0555
TOM WILSON, Public Transportation, Municipality of Anchorage
(MOA), said that MOA has been looking into using these TPD
receivers on city roads. In fact, an ad hoc study group of
several municipal agencies has been formed. The primary
obstacle with moving forward on this is that the traffic
department doesn't have the staff to perform the signal studies
and the timing. However, there has been increased emphasis and
interest in it. In response to Chair Holm, Mr. Wilson confirmed
that Public Transportation with MOA is in favor of this
legislation. Anecdotal information in the transit industry has
illustrated that significant efficiencies can be achieved with
the use of low-priority signal preemption. He emphasized that
if this legislation passes, the transit portion of the
legislation would be a low-priority device while emergency
responders would continue to have a high-priority preemption.
Therefore, if there was ever a conflict between the two, the
high-priority preemption would take precedence. Studies have
shown increases in efficiency as high as 46 percent in one case.
Number 0722
REPRESENTATIVE STEPOVICH inquired as to the percentage of state
and city traffic lights that don't have TPD receivers.
MR. WILSON said that he didn't know, but agreed with Mr.
Michel's earlier statement that 27 signals throughout MOA are
fitted with the receivers. Therefore, MOA faces a steep curve
in order to put in place an effective system. In further
response to Representative Stepovich, Mr. Wilson said that he
didn't know how many lights are in the MOA.
Number 0856
ALLEN STOREY, Lieutenant, Central Office, Division of Alaska
State Troopers, Department of Public Safety (DPS), began by
testifying in support of this legislation because TPDs are
certainly helpful to all emergency responders. He emphasized
that one of the most dangerous things that emergency responders
do is driving the vehicles and even more dangerous is transiting
through intersections. Therefore, any device to help emergency
responders make it [safely] through the intersections is
welcome. However, the concern is that these TPDs are readily
available on the open market and can be used by anyone for
illegitimate purposes that result in chaos at intersections.
The only legitimate use for TPDs is for emergency responders and
government agencies, he stated.
Number 0992
REPRESENTATIVE MASEK inquired as to how law enforcement would be
able to catch an individual with a TPD in his or her vehicle.
LIEUTENANT STOREY answered that for the most part law
enforcement would have to directly observe use of the device.
However, it could result from the investigation of an accident.
CHAIR HOLM informed the committee that none of the lights in
Kodiak have these receivers.
REPRESENTATIVE STEPOVICH surmised that this legislation attempts
to plan for the future and have [receivers] in the stoplights
for use.
LIEUTENANT STOREY agreed, but reminded the committee that there
are already 27 devices in use in the Anchorage bowl and a fairly
large number in Fairbanks as well. He reiterated the need to
ensure that these devices are properly used only by those with a
legitimate purpose.
CHAIR HOLM commented that TPDs seem comparable to radar
detection devices, which defeat traffic control. Therefore, he
said this is probably a good thing.
Number 1159
REPRESENTATIVE MASEK moved to report CSSB 255(FIN) out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, it was so ordered.
The committee took an at-ease from 1:59 p.m. to 2:00 p.m.
SB 316-SEAT BELT VIOLATION AS PRIMARY OFFENSE
CHAIR HOLM announced that the next order of business would be
SENATE BILL NO. 316, "An Act relating to motor vehicle safety
belt violations."
CHAIR HOLM informed the committee that this legislation has two
indeterminate fiscal notes, one from the Alaska Court System and
one from the Department of Public Safety (DPS). Those fiscal
notes are indeterminate because there is no way to determine the
impact to these two agencies. He further informed the committee
that SB 316 is the companion to HB 392, which has previously
been heard in this committee.
Number 1288
LAUREN WICKERSHAM, Staff to Senator Con Bunde, Alaska State
Legislature, presented SB 316 on behalf of the sponsor, Senator
Bunde. Ms. Wickersham explained that basically SB 316 changes
Alaska's seat belt law from secondary to primary status.
Therefore, it provides the ability for enforcement of a law that
is already in statute. The current seat belt law is nearly
unenforceable because law enforcement can't stop individuals for
seat belt violations alone. The change proposed in SB 316 will
save lives, she emphasized. She related that with the passage
of SB 316 seat belt usage in Alaska could increase to 15
percent, which correlates to approximately 10-12 lives saved in
the first year alone. Furthermore, this change will mean that
the state will gain federal funds, totaling close to $4 million,
for highway repairs. Additionally, the state will receive funds
for safety belt education campaigns. The combination of
education and enforcement leads to the greatest safety belt use
possible, she opined.
MS. WICKERSHAM informed the committee that Alaskans annually
spend millions on motor vehicle crashes and this legislation
will save Alaskans thousands in the first year alone. She
related that 85 percent of all costs involved in motor vehicle
accidents are paid for by society through the public or private
sectors. In fact, last year the average Alaskan paid $120 per
person through accident-related costs. Ms. Wickersham pointed
out that both national and Alaskan surveys indicate that people
support the primary seat belt law. Furthermore, a telephone
survey by the Alaskan Injury Prevention Center found that 67
[percent] of the 800 surveyed supported a primary seat belt law.
Ms. Wickersham concluded by highlighting that SB 316 would save
lives and money.
Number 1500
RICK MORRISON, National Automobile Dealers Association (NADA);
Alaska Automobile Dealers Association (AADA), informed the
committee that he has been in the automobile industry for 30
years and has watched the innovative safety advancements in the
industry. However, he pointed out that all of the safety
advancements work with the seat belt. He noted that NADA has
assisted in this campaign nationwide because making the seat
belt law a primary [offense] will save lives. In addition to
the 10-15 lives that would be saved in Alaska in the first year
of this proposed law, there is the potential to obtain almost $4
million from the federal government. Mr. Morrison informed the
committee that statistics show that the use of a seat belt in a
car provided an additional 45 percent increase in effectiveness
in passenger cars and 60 percent increase in effectiveness in
sport utility vehicles (SUVs). Furthermore, states enforcing
laws such as that proposed in SB 316 have less highway deaths.
Moreover, thousands of injuries can be avoided with seat belt
use. Therefore, from both a national and state perspective,
it's time to step forward and promote seat belt use as a primary
offense in order to encourage use of seat belts. Mr. Morrison
concluded by noting his support of SB 316.
Number 1607
KURT WINSTON, Regional Administrator, National Highway Traffic
Safety Administration, US Department of Transportation, informed
the committee that he works with the states of Alaska, Idaho,
Oregon, and Washington. He noted that his written testimony has
been filed with the committee. Mr. Winston highlighted that
passage of this legislation will save an estimated 12-15 lives
in Alaska in the first year of implementation. Furthermore, the
legislation will prevent 300 very serious injuries that cost
approximately $66,000 each, which amounts to "$20 million
leakage of your budget because most of that is paid for with
taxpayers' money." Under President George W. Bush's highway
plan, which is currently in Congress, Alaska would receive $3.9
million in bonus highway aide. Mr. Winston related that his son
is a member of the Chugiak Fire Department and he has responded
to several crashes. In those crashes in which the individuals
were wearing restraints, the individuals rarely require
transport to a hospital. However, those crashes in which the
individuals aren't restrained often result in catastrophic
results. Mr. Winston said that the [US Department of
Transportation] and the Bush Administration urge passage of SB
316.
Number 1730
JOAN DIAMOND, Public Health, Department of Health & Human
Services, Municipality of Anchorage, testified in support of
this legislation. This legislation would require every driver
in Alaska to participate in public safety.
Number 1743
PAUL HARRIS, Director, Fairbanks Police Department, City of
Fairbanks, informed the committee that he is a retired state
trooper who began his career in law enforcement in Alaska in
1972. Therefore, he has had experiences with traffic crashes
[in which the individuals] were and were not wearing seat belts.
He related that most law enforcement officers he is in contact
with are in support of SB 316. Mr. Harris highlighted that law
enforcement doesn't have much it can do in the way of preventing
accidents, save enforcement. The only argument against [this
legislation] that he has heard is that it's inconvenient and
restricts an individual's rights. However, he submitted that
being strapped to a backboard for six months is truly an
inconvenience and a restriction of rights. The fact is that
there is already the ability to reduce those instances.
Although Alaska already has a mandatory seat belt law, it's
unenforceable. Therefore, law enforcement needs a seat belt use
law that is enforceable.
Number 1926
REPRESENTATIVE KOHRING commented that he didn't believe anyone
would argue that seat belts save lives and prevent injuries.
However, he admitted that until he was married he didn't wear a
seat belt because he resented government telling him what to do.
Representative Kohring asked if law enforcement would stop
someone if the law enforcement officer suspected a violation [of
this proposed seat belt law].
MR. HARRIS answered that when law enforcement has probable cause
to believe there is a violation, an individual can be stopped.
Mr. Harris recalled when Fairbanks had a primary seat belt use
law. At that time, he said he received no telephone calls from
individuals charging that he or she had been stopped
incorrectly. He noted that if an individual doesn't have a
shoulder strap, it's difficult to determine whether he or she
has on a seat belt. Mr. Harris said that law enforcement is
looking for obvious violations, and therefore chances are that
an individual driving safely without a visible shoulder strap
won't be stopped. However, if that same individual was driving
recklessly, he or she would probably be stopped.
REPRESENTATIVE KOHRING expressed concern that law enforcement
may use this to stop people unnecessarily. He mentioned his own
experience with being stopped in situations he didn't feel were
appropriate. Representative Kohring felt resentful that so many
law enforcement officers on the Glenn Highway between Anchorage
and Wasilla are looking to pull over individuals for relatively
minor violations when those resources could be better directed
at those committing serious crimes.
Number 2100
CHAIR HOLM questioned how law enforcement will have the
resources to enforce SB 316, if law enforcement doesn't have the
resources to follow-up on burglaries and other crimes that seem
to be of greater [importance].
MR. HARRIS directed attention to the statistics the committee
has been given in regard to the number of dollars, lives, and
people impacted by traffic accidents. He said that bad driving
is a primary bad act, and therefore law enforcement does place a
lot of emphasis on it. Mr. Harris said that when law
enforcement makes a stop for traffic violations, equipment
violations, and a child not wearing a seat belt, law enforcement
is dealing with a bad actor. The aforementioned is the only
chance to prevent an injury. On the other hand in the case of a
burglary or a homicide, the property has been taken and an
individual's rights have already been violated by the time law
enforcement is involved. "This is one opportunity that
government has to keep people alive and protect them. I think
it is a priority," he said.
CHAIR HOLM maintained that law enforcement has far better things
to do than [deal with traffic violations]. "I'm not convinced
yet," he said.
Number 2227
REPRESENTATIVE STEPOVICH recalled reading that there are over
180 primary reasons to stop someone in their vehicle.
MR. HARRIS said he didn't know the exact number, but suspected
that there are more than 180 reasons.
REPRESENTATIVE STEPOVICH opined that this seat belt law won't
cause more individuals to be stopped by law enforcement.
There's already enough reasons to stop someone, he remarked.
With regard to burglary, it's a felony with jail time of five
years or more. However, people continue to steal.
Representative Stepovich emphasized that this legislation
doesn't save lives, it's wearing one's seat belt. He opined
that proper education is important.
MR. HARRIS related his belief that education and enforcement go
hand-in-hand. When adults are motivated to wear seat belts, it
sets an example for children. Therefore, wearing a seat belt
will be automatic for those in future generations. Having a
primary seat belt law is one of the educational tools.
CHAIR HOLM commented that the only reason he ever wore a seat
belt was when his wife's car had an automatic seat belt.
TAPE 04-15, SIDE B
CHAIR HOLM commented that an automatic seat belt could be placed
in automobiles, and questioned why engineers couldn't do such.
Number 2309
ALLEN STOREY, Lieutenant, Central Office, Division of Alaska
State Troopers, Department of Public Safety (DPS), related the
belief that voluntary compliance is preferable to enforced
compliance. He highlighted that there is no request for
enhanced penalties for seat belt violations, although he
supports making it a primary offense so that people are
encouraged to wear seat belts. Lieutenant Storey echoed earlier
remarks that seat belts save lives. Furthermore, he opined that
seat belts prevent accidents because as a driver maneuvers
around something, perhaps a moose, on the road, the driver can
maintain control of the vehicle because he or she is strapped
in. With regard to police harassment, law enforcement officers
have a heavy workload and aren't in the business of harassment.
Lieutenant Storey said, "It seems ... the requirement to wear a
seat belt is an extension of a privilege of having a driver's
license, its not an extension of a right. And it seems like in
return for that privilege to be able to share the highway and be
part of that carefully choreographed process of moving traffic
from place to place that the need to wear a seat belt is a small
expense." Lieutenant Storey related an experience he had with a
death notification, and said that law enforcement officers don't
like to notify the next of kin or perform death investigations
because a person didn't wear a seat belt. The belief is that
having seat belt use as a primary offense will generate a higher
rate of voluntary compliance.
REPRESENTATIVE STEPOVICH recalled that Lieutenant Storey's
testimony used language such as encourage and volunteer.
However, he thought this legislation would require the use of
seat belts.
LIEUTENANT STOREY said that the question is are people being
forced to wear seat belts. Although SB 316 would implement a
statute that's a $15 penalty when people don't wear seat belts,
the desire is for people to voluntarily wear seat belts so that
no interaction with law enforcement is necessary. The returns
for wearing a seat belt far outweigh any pride a person can take
in not wearing a seat belt.
REPRESENTATIVE KOHRING said that Lieutenant Storey's testimony
is quite convincing. However, he maintained his displeasure
with the law enforcement officers who seem "to be on ego trips"
and harassing people. Representative Kohring related that
during the time he spent in Moscow, Russia, he observed law
enforcement efforts. During his two-week period there, he said
he never saw an accident despite seeing tens of thousands of
automobiles on the roads. Law enforcement officers in Moscow
didn't seem to take the same approach in regard to stopping
people as they do in Anchorage.
Number 1951
PETE EAGAN stated that it seems the state already thinks wearing
seat belts is a good idea since there is already a secondary
seat belt law. Statistics show that seat belt use saves lives
and primary seat belt laws result in greater use of seat belts.
Therefore, he questioned why one wouldn't want to encourage it.
He said he wasn't concerned with regard to "Big Brother watching
whether or not I'm wearing a seat belt." Wearing a seat belt is
the smart thing to do, he remarked. Mr. Eagan viewed this
proposed legislation as a tool that would allow law enforcement
to do a better job. He informed the committee that Alaska
averages 80-plus traffic fatalities a year, and roughly half of
those are attributed to drunk driving. Nationwide, there are
over 40,000 traffic fatalities a year of which over 17,000 are
due to drunk driving. Moreover, injury crashes are far more
numerous. Mr. Eagan reminded everyone that in 2001 terrorists
killed about 3,000 innocent Americans in one day. However,
every 67 days that same year, 3,000 more Americans were killed
in car crashes by fellow Americans. Statistics show that a
great number of the victims might have survived had they been
wearing a seat belt. Therefore, he again questioned why one
wouldn't want to encourage the use of seat belts by passage of
SB 316. He concluded by urging the committee to pass SB 316.
Number 1820
MARTHA MOORE, Department of Health and Social Services,
testified in support of SB 316. She informed the committee that
even with the few roads that Alaska has, motor vehicle crashes
remain the most common cause of accidental death in Alaska. In
2003, 94 Alaskans lost their lives in crashes of which 24 of
those individuals were not wearing seat belts. Ms. Moore
related that the Alaska Trauma Registry data shows that crashes
in Alaska that involve individuals not wearing seat belts result
in 60 new brain injuries a year and 30 new permanent
disabilities a year. The costs of the aforementioned are huge.
The department's support of SB 316 comes from the concern of the
safety and health of the population as well as to keep medical
costs down. Ms. Moore echoed earlier testimony regarding that
with the passage of a primary seat belt law, there will be
increased seat belt usage that will most likely result in saved
lives and saved money. The Alaska Trauma Registry data
illustrates that over half the medical costs for these crashes
are passed on to the federal government, the state government,
and the public.
Number 1747
DON SMITH, Administrator, Alaska Highway Safety Office, Division
of Program Development, Department of Transportation & Public
Facilities, characterized that this legislation is an issue of
perception in that individuals would know that there is a
primary seat belt law and could be stopped for violations. He
said he didn't believe a host of arrests would take place as
much as the public will become aware that Alaska has a primary
seat belt law. The aforementioned will increase the use rate
and save lives. He stated that wearing a seat belt is the best
defense against poor drivers. Mr. Smith concluded by requesting
that the committee report SB 316 from committee.
Number 1704
CINDY CASHEN, Executive Director, Juneau Chapter, Mothers
Against Drunk Driving (MADD), informed the committee that she
has three children who will be driving soon, and therefore she
wanted her children to be stopped if they weren't wearing a seat
belt. She said that she knows that her children won't always
remember to wear a seat belt until it becomes an ingrained
habit. She further said that she doesn't want to receive a
knock on her door and be told by a law enforcement officer that
her child was killed because he didn't wear a seat belt. Ms.
Cashen opined that this legislation will save lives.
CHAIR HOLM announced that public testimony on SB 316 was closed
and that it would be held over.
HB 556-AIDEA BONDS FOR LYNN CANAL PORT
CHAIR HOLM announced that the final order of business would be
HOUSE BILL NO. 556, "An Act relating to a port development
project at Lynn Canal, providing legislative approval for the
Alaska Industrial Development and Export Authority to issue
bonds or otherwise provide financing for the project; and
providing for an effective date."
Number 1510
REPRESENTATIVE BRUCE WEYHRAUCH, Alaska State Legislature,
sponsor, explained that the area where the dock would be
constructed is in the northern edge of the district he
represents. The legislation is required because the Alaska
Industrial Development and Export Authority (AIDEA) requires
legislative approval of a bond issue of this size. The bond
funds would be used to construct docks to assist in the
development of the Kensington Mine project. Representative
Weyhrauch informed the committee that it's critically important
to [Southeast] that it diversify its economy and develop mining
opportunities where they exist. Furthermore, the Kensington
Mine has shown itself to be an active and responsible developer.
The dock will go far in helping bring the resource to market and
employ many people in the area.
REPRESENTATIVE WEYHRAUCH indicated his support for those
representing the Interior who are dealing with the Pogo mine
project. He said that there needs to be a united front
statewide to help develop these type of resources.
Number 1429
JIM McMILLAN, Deputy Director, Credit, Alaska Industrial
Development & Export Authority (AIDEA) and Alaska Energy
Association (AEA), Department of Community & Economic
Development (DCED), explained that if AIDEA is going to finance
a project under AS 44.88.172, "own and operate," and the
proceeds of the bond issue exceed $10 million, legislative
authorization is required. Mr. McMillan further explained that
this project would include two dock facilities, which would be
used in support of the Kensington gold project. In order to
issue tax-exempt bonds for financing of this project, the
project must be owned by a government entity and be likely that
the [facilities] will be available for public use. Therefore,
HB 556 is necessary because of the proposed ownership by AIDEA
under the development finance program in order to provide lower
cost financing through the issuance of tax-exempt bonds. With
regard to the public use requirement, that determination has yet
to be made. Because of the somewhat remote location of these
facilities, AIDEA will, through bond counsel, seek an Internal
Revenue Service (IRS) letter ruling in order to make the public
use determination. The aforementioned will be part of the due
diligence that will begin shortly.
MR. McMILLAN highlighted that while AIDEA will own these
facilities, in order to qualify for tax-exempt bonds conduit
revenue bonds will be issued. With conduit revenue bonds, he
explained, neither the credits nor assets of AIDEA will be at
risk. He reiterated that AIDEA's ownership will allow, if other
requirements can be met, for the issuance of tax-exempt bonds.
Number 1273
REPRESENTATIVE MASEK inquired as to the cost AIDEA will face in
performing the feasibility, market, and risk analysis for the
project. Would AIDEA pay for the aforementioned study, she
asked.
MR. McMILLAN said that there is extensive due diligence and the
total cost of it is estimated to be $150,000. At AIDEA's next
board meeting, a resolution will be presented [requesting]
authorization to execute a cost reimbursement agreement with the
project developer. The agreement will state that if the project
and the financing goes forward, costs [for the study] could be
included in the financing. However, if the project doesn't go
forward, AIDEA must be repaid any sums that it has expended.
REPRESENTATIVE MASEK highlighted that the language in HB 556
refers to "port and related facilities" and inquired as to what
"related facilities" would be.
MR. McMILLAN explained that the earlier mentioned IRS code would
also apply to any related or ancillary facilities that might be
pertinent to the use of the dock. Because the project is in the
early stages of due diligence, there is the potential that a
storage facility for fuel, for example, could be considered
related to the dock use and thus could be included in the
financing. The $20 million authorization does allow for the
potential for financing upland improvements if they meet IRS
requirements. At this point there is only a conceptual design
and rough estimates on project costs. As the design and costs
are finalized, there is a real likelihood that "that will go up
and that's the real reason for the $20 million authorization."
MR. McMILLAN, in further response to Representative Masek,
opined that the state would benefit from this project in a
number of different areas. There is the potential for jobs,
250-300 jobs during the construction period as well as another
110-225 jobs throughout the expected life of the mine. There is
also the benefit of the development of the state's natural
resources. Another benefit is that both docks will likely be
available for public use.
Number 1060
REPRESENTATIVE MASEK inquired as to the location of this
project.
REPRESENTATIVE WEYHRAUCH explained that this project would
require a road extension, which would be [performed] in
conjunction with the Goldbelt Native Corporation. He noted that
the road would be available for public use.
Number 0931
TIM ARNOLD, Vice President/General Manager, Coeur Alaska,
informed the committee that he will be the general manager of
the mine once it's in production. He specified that the
southern port facility being discussed would be located two
miles past the end of the road. Mr. Arnold turned the
committee's attention to a document entitled "Update," which was
performed in November 2001, and noted that most of the
information remains accurate today. He offered to answer any
questions.
REPRESENTATIVE STEPOVICH turned attention to the graph in the
committee packet that specifies that in 1989 over 70 percent of
the jobs in Juneau were state and federal government jobs and in
1999 about 70 percent of the jobs in Juneau were with the state
and federal government. He asked if those percentages remain
the same.
MR. ARNOLD said that the numbers were accurate when the material
was printed, but he said he didn't have an update for 2004.
REPRESENTATIVE KOHRING commented that he would like to help
Representative Weyhrauch decrease the percentage [of those
working for government] and increase the percentage of those
working in mining.
Number 0800
CHAIR HOLM related his assumption that once the two miles of
road to the southern terminus of the port and the proposed road
extension are built, those would revert to state ownership at
some point in time and be left for use in the future [when the
mining activities have ceased].
MR. ARNOLD clarified that the two-mile road to Echo Cove will be
owned by Goldbelt. The port facilities are the focus of the
legislation. Once there [is access] to the other side of
Berners Bay, the road up to the property already exists and will
merely be upgraded.
REPRESENTATIVE MASEK asked if Goldbelt would own the road, and
therefore could decide to charge the public a fee for use of the
road. She noted that such a situation exists in Chitna.
MR. ARNOLD said that although he couldn't speak for Goldbelt,
discussions with them have brought forth their intent to open
the area up and bring people to the facilities.
Number 0632
REPRESENTATIVE KOOKESH pointed out that if Goldbelt didn't want
to open the area and bring people to the facilities, the project
would be dead. Representative Kookesh emphasized that the state
isn't investing money, it's loaning money; AIDEA is a loaning
agency not a granting agency, and therefore will be paid back
everything it puts out, including interest.
REPRESENTATIVE STEPOVICH asked if the general public would be
able to travel to the dock on that two-mile extension.
REPRESENTATIVE WEYHRAUCH answered that it should be open to the
public. He related that US Senator Lisa Murkowski's office has
been working on a swap. He noted his opposition to any toll
roads and added that nothing in the proposal has indicated any
[desire] to block public use of the road.
Number 0505
REPRESENTATIVE KOHRING surmised that if an entity is pursuing
the state for a loan, perhaps the entity can't obtain
conventional, private sector financing. He further surmised
that it must be a relatively high-risk proposition. Therefore,
he inquired as to any assurances that could be provided that the
aforementioned isn't the case. He also inquired as to the
reasons the financing is being sought from the state.
MR. ARNOLD said that this project is a win-win situation for
Coeur d'Alene Mines Corporation and the state. Coeur d'Alene
Mines Corporation, he said, could do this project on its own if
it desired to do so. The advantage of the option embodied in HB
556 is that Coeur d'Alene Mines Corporation would receive low
cost financing. If Coeur d'Alene Mines Corporation did the
project on its own, the dock would be paid for upfront and at
the end of the mining operation the company would have to take
out the dock as part of remediation. Therefore, the company
views HB 556 as a way to obtain low cost financing while
providing the state with a great facility that will last 30-40
years.
REPRESENTATIVE WEYHRAUCH noted that AIDEA is an institution of
the state that is present to help with these sorts of projects
as it did with the FedEx terminal in Anchorage and the dock
facility for the Healy coal project.
Number 0320
REPRESENTATIVE MASEK moved to adopt CSHB 556, Version 23-
LS1938\H, Cook, 4/23/04, as the working document. There being
no objection, Version H was before the committee.
CHAIR HOLM noticed that the title of Version H was different
than that of the original legislation, and inquired as to why.
MR. McMILLAN explained that in the initial discussions with
Coeur Alaska, AIDEA provided Coeur some sample language that
mirrored language included in authorizations for other
development finance projects. In the past, AIDEA has allowed
for the issuance of bonds as well as the utilization of other
funding, such as AIDEA's cash. The aforementioned was included
in the sample language provided to Coeur. Subsequent
discussions between the Attorney General's Office and the
assistant attorney general that represents AIDEA and staff from
Legislative Legal and Research Services determined that it would
be limited to bond proceeds. Therefore, if other funds besides
bond proceeds were going to be used, it wouldn't be covered
under this authorization.
REPRESENTATIVE MASEK reiterated her hope that this road over
Goldbelt's land doesn't become an access issue as it did in
Chitna.
Number 0122
REPRESENTATIVE MASEK moved to report CSHB 556, Version 23-
LS1938\H, Cook, 4/23/04, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, CSHB 556(TRA) was reported out of the House
Transportation Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 3:15
p.m.
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