02/21/2017 01:30 PM House TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| HB60 | |
| HB131 | |
| HB117 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 60 | TELECONFERENCED | |
| *+ | HB 131 | TELECONFERENCED | |
| *+ | HB 117 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
February 21, 2017
1:33 p.m.
MEMBERS PRESENT
Representative Louise Stutes, Co-Chair
Representative Adam Wool, Co-Chair
Representative Matt Claman
Representative Harriet Drummond
Representative Chuck Kopp
Representative Mark Neuman
Representative Colleen Sullivan-Leonard
Representative David Eastman (alternate)
MEMBERS ABSENT
Representative Gabrielle LeDoux (alternate)
COMMITTEE CALENDAR
HOUSE BILL NO. 60
"An Act relating to the motor fuel tax; relating to the
disposition of revenue from the motor fuel tax; relating to a
transportation maintenance fund; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 131
"An Act relating to relocation assistance for federally assisted
public construction and improvement projects and programs; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 117
"An Act relating to the art requirements for certain state
ferries; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 60
SHORT TITLE: MOTOR FUEL TAX; TRANSPORTATION MAINT. FUND
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/18/17 (H) READ THE FIRST TIME - REFERRALS
01/18/17 (H) TRA, FIN
01/31/17 (H) TRA AT 1:30 PM BARNES 124
01/31/17 (H) Heard & Held
01/31/17 (H) MINUTE(TRA)
02/07/17 (H) TRA AT 1:30 PM BARNES 124
02/07/17 (H) Heard & Held
02/07/17 (H) MINUTE(TRA)
02/09/17 (H) TRA AT 1:30 PM BARNES 124
02/09/17 (H) Heard & Held
02/09/17 (H) MINUTE(TRA)
02/14/17 (H) TRA AT 1:30 PM BARNES 124
02/14/17 (H) Heard & Held
02/14/17 (H) MINUTE(TRA)
02/16/17 (H) TRA AT 1:30 PM BARNES 124
02/16/17 (H) -- MEETING CANCELED --
02/21/17 (H) TRA AT 1:30 PM BARNES 124
BILL: HB 131
SHORT TITLE: RELOCATION ASSISTANCE FOR FED. PROJ/PROG
SPONSOR(s): TRANSPORTATION
02/15/17 (H) READ THE FIRST TIME - REFERRALS
02/15/17 (H) TRA, FIN
02/21/17 (H) TRA AT 1:30 PM BARNES 124
BILL: HB 117
SHORT TITLE: ART PUBLIC FACILITIES: EXEMPT ST. FERRIES
SPONSOR(s): TRANSPORTATION
02/13/17 (H) READ THE FIRST TIME - REFERRALS
02/13/17 (H) TRA, FIN
02/21/17 (H) TRA AT 1:30 PM BARNES 124
WITNESS REGISTER
LAURA STIDOLPH, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Discussed a proposed committee substitute
during the hearing on HB 60.
MATT GRUENING, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Outlined a proposed committee substitute on
HB 60.
LAURA STIDOLPH, Staff
Representative Adam Wool
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 131 on behalf of the House
Transportation Standing Committee, sponsor, on which
Representative Wool is a member.
MATT GRUENING, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 117 on behalf the House
Transportation Standing Committee sponsor, by request of the
governor, of which Representative Stutes is a member.
MICHAEL NEUSSL, Deputy Commissioner
Department of Transportation & Public Facilities (DOT&PF)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
117.
ACTION NARRATIVE
1:33:30 PM
CO-CHAIR ADAM WOOL called the House Transportation Standing
Committee meeting to order at 1:33 p.m. Representatives Kopp,
Sullivan-Leonard, Drummond, Wool, Stutes, Neuman, Eastman
(alternate), and Claman were present at the call to order.
HB 60-MOTOR FUEL TAX;TRANSPORTATION MAINT. FUND
1:34:05 PM
CO-CHAIR WOOL announced that the first order of business would
be HOUSE BILL NO. 60, "An Act relating to the motor fuel tax;
relating to the disposition of revenue from the motor fuel tax;
relating to a transportation maintenance fund; and providing for
an effective date."
1:34:30 PM
CO-CHAIR STUTES moved to adopt the proposed committee substitute
(CS) for HB 60, Version 30-GH1794\D, Nauman, 2/20/17, as a
working document. There being no objection, Version D was
before the committee.
1:35:07 PM
LAURA STIDOLPH, Staff to Representative Adam Wool, Alaska State
Legislature, discussed changes to HB 60 proposed under Version
D. She said that the first change is in the title on page 1,
line 2, and it inserts "establishing" after "fuel tax". She
explained that the change in the title makes it clear that the
Transportation Maintenance Fund ("the fund") is being
established under HB 60. Ms. Stidolph continued that Section 1
is new and it is legislative intent language that clarifies that
each subaccount of the fund (motor fuel, aviation/jet fuel, and
marine fuel) be used specifically for infrastructure and
expenses related to each user group. She explained that Co-
Chairs Wool and Stutes wanted the intent of this bill to be
clear to ensure that all revenue generated would be used to
improve roads, highways, harbors, ports, airports, and ferries.
MS. STIDOLPH explained that the next five changes were made to
Sections 7, 8, 9, 10, and 11 to ensure funds cannot be used for
anything other than that which they are specified. She declared
that funds do not lapse and remain available for the next fiscal
year. She explained the intent for this was so the Department
of Transportation & Public Facilities (DOT&PF) would have to
build and maintain infrastructure for each user group being
taxed.
1:37:09 PM
MATT GRUENING, Staff, Representative Louise Stutes, Alaska State
Legislature, stated that the language in Section 12, page 6,
lines 26-27, of Version D was added to allow an exemption for
commercial fishing watercraft. He noted that a mistake in
drafting Version D resulted in the use of the term "commercial
watercraft"; the correct term should be ["watercraft engaged in
commercial fishing"]. He explained the reason for the exemption
was because a fisheries tax would be forthcoming next year, and
commercial fishermen are a user group that would be double hit
by both the fuel tax increase and the upcoming fisheries tax.
Mr. Gruening explained the reason for specifying that the
watercraft are engaged in commercial fishing is so that barges
and cruise ships would not be included in the exemption. He
said that although commercial fisherman would be eligible for a
three-cent rebate, they would still have an overall increase.
He clarified that the user group currently pays five cents per
gallon, under the proposed legislation that amount would be
doubled to [10 cents], and then with the rebate commercial
fisherman would be paying seven cents per gallon in fuel tax.
1:38:30 PM
REPRESENTATIVE NEUMAN offered his understanding that it is the
intent to carve out a special reduction for commercial fishing
watercraft.
MR. GRUENING answered that is correct.
REPRESENTATIVE NEUMAN inquired whether a licensed and registered
sport guide who used their boat professionally would qualify for
the exemption.
MR. GRUENING explained that currently the term "commercial
watercraft" or "commercial fishing watercraft" are not defined
in HB 60 or in statute. He indicated that a forthcoming
amendment to Version D would clarify the terminology.
1:39:46 PM
MR. GRUENING continued with the sectional analysis. He said
that Section 13, page 7, lines 6-8 is another reference to the
three-cent rebate for what is supposed to be commercial fishing
marine fuel. Mr. Gruening pointed out that the most substantive
change is in Section 19, on page 8, line 16, of Version D, which
would change the effective date from 2018 to 2019. He noted
that Co-Chairs Wool and Stutes feel that a year break in
administering the tax increase is necessary to provide a little
relief to allow industry time to adapt.
REPRESENTATIVE NEUMAN mentioned that the committee had heard
from the department about motor fuel tax revenue going back to
different user groups. He inquired how the state would keep
track of the taxes generated by each user group. He also wanted
to know how the state would ensure revenues are equitably
allocated to maintain infrastructure for the proper user group.
Representative Neuman asked specifically about "snow machine"
operators in the Matanuska-Susitna (Mat-Su) Borough and how the
state would ensure the revenue generated from off-road fuel
purchases would be used on trail maintenance.
MR. GRUENING shared that under Alaska State Constitution, funds
cannot really be dedicated. He clarified that there is no real
mechanism to ensure funds are allocated for use on
infrastructure for the proper user group. He noted that one of
the reasons for the inclusion of the intent language in Version
D is to show the sponsor's attempt to do the most possible to
suggest that funds be used for their intended purposes. Mr.
Gruening added that the bill sponsors did not specifically
address the off-road [vehicle] use in the tightening of the
sections in Version D.
REPRESENTATIVE NEUMAN offered his understanding that there is
already language in statute suggesting that the money go back to
where it is collected. He asked whether there is currently any
money that goes back into trails from what is collected from all
of the people that buy fuel for all-terrain vehicles (ATVs).
CO-CHAIR WOOL stated that right now off-road vehicles are
eligible for a rebate. He explained that currently users
purchasing fuel for heavy equipment, four wheelers, or snow
machines have to fill out the paperwork and turn it into the
state. Co-Chair Wool noted that under the current fuel tax
structure, as well as the proposed legislation, there are no
funds allocated for trails. He offered his understanding that
there is a current suggested designation for licensing fees from
snow machines to go back into trails. He added that there is a
rumor the funds were not used for trails.
REPRESENTATIVE NEUMAN suggested that the committee could work on
something to help designate funds from off-road vehicle fuel
purchases to go toward maintenance. He shared his belief that
Governor Walker vetoed $250 thousand from the Snowmobile Trails
Advisory Council (SnowTRAC) fund in 2016. Representative Neuman
shared that he would like the bill to ensure the various user
groups feel comfortable knowing the taxes paid go back to the
reason why the taxes were propagated in the first place. He
provided his recollection that the federal government gives the
state money back from federal gasoline taxes collected.
Representative Neuman questioned whether any of that money went
back toward trails.
1:44:52 PM
REPRESENTATIVE SULLIVAN-LEONARD stated that she had Legislative
Legal Services draft an opinion in regard to designated funds.
She shared her opinion that as much as Version D looks to
tighten the allocation of funds, "the true nature of designated
funds still are not truly designated for any particular
purpose." She asked how it could be ensured that, for example,
the Alaska Marine Highway System (AMHS) wouldn't be allowed to
pull funds over from motor fuel. Representative Sullivan-
Leonard offered that she still had concerns because there is no
true mechanism to allow funds to stay in one particular area.
MR. GRUENING described that there are dedicated funds and
designated funds. He noted that there is no way to dedicate
funds for a specific purpose, but future legislators do look at
legislative intent as a guide to follow. Mr. Gruening added
that commitments from the department and the administration can
be secured to help bolster intent language. He said that the
more intent that can be put into legislation the easier it is
for future committees to look at and see what the committee was
thinking.
CO-CHAIR WOOL stated that amendments to Version D would be
accepted [until] tomorrow at 3 p.m.
[HB 60 was held over.]
HB 131-RELOCATION ASSISTANCE FOR FED. PROJ/PROG
1:46:54 PM
CO-CHAIR WOOL announced that the next order of business would be
HOUSE BILL NO. 131, "An Act relating to relocation assistance
for federally assisted public construction and improvement
projects and programs; and providing for an effective date."
1:47:17 PM
LAURA STIDOLPH, Staff, Representative Adam Wool, Alaska State
Legislature, presented HB 131, on behalf of the House
Transportation Standing Committee, on which Representative Wool
serves as co-chair. She stated that HB 131 would bring Alaska
into compliance with federal law concerning reimbursement for
relocation expenses incurred by individuals or businesses that
were displaced due to federally funded highways, bridges, or
facilities projects. She said that Alaskans deserve to be
fairly compensated in the aforementioned circumstances. Ms.
Stidolph explained that HB 131 would also protect Alaska's more
than $500 million annual allocation of federal highway
administration funding, by bringing the state into compliance.
MS. STIDOLPH said that in 2012 Congress relaxed the eligibility
criteria and increased the maximum reimbursement limits, for the
state's relocation assistance payment programs when it passed
the transportation authorization and funding bill that is more
commonly referred to as the Moving Ahead for Progress in the
21st century Project Act (MAP-21). Ms. Stidolph noted that
prior to MAP-21 the payment rates had not changed in over 30
years. She said that although the changes went into effect
October 1, 2014, unfortunately Alaska Statute continues to
reflect the more stringent eligibility requirements and the
smaller maximum reimbursement limits.
MS. STIDOLPH shared that during the second half of the Twenty-
Ninth Alaska State Legislature, the inconsistency between state
and federal law was almost fixed. She explained that language
similar to HB 131 was proposed and passed unanimously through
the House, but after being passed through Senate State Affairs
Standing Committee and Senate Finance Committee was never
calendared for a Senate floor vote. Ms. Stidolph concluded that
HB 131 would assure Alaskans that their legislature wants them
to be compensated the same as residents of other states.
REPRESENTATIVE NEUMAN asked what the number of the bill was that
stalled.
MS. STIDOLPH answered House Bill 252.
CO-CHAIR WOOL extended his perception that HB 131 is just for
relocation funds and not for buying property.
MS. STIDOLPH confirmed that is correct.
1:49:50 PM
REPRESENTATIVE KOPP offered his understanding that HB 131 would
raise Alaska's statutory authority to reimburse displaced
Alaskans at the same rate they would be in other states.
MS. STIDOLPH affirmed that to be correct. She added that the
funding is comprised of 91 percent federal funding and 9 percent
funding from the state.
[HB 131 was held over.]
1:50:40 PM
HB 117-ART PUBLIC FACILITIES: EXEMPT ST. FERRIES
1:50:44 PM
CO-CHAIR WOOL announced that the final order of business would
be HOUSE BILL NO. 117, "An Act relating to the art requirements
for certain state ferries; and providing for an effective date."
1:51:08 PM
MATT GRUENING, Staff, Representative Louise Stutes, Alaska State
Legislature, presented HB 117 on behalf of the House
Transportation Standing Committee, on which Representative
Stutes is co-chair. He stated that the intention of HB 117 is
to create a specific exemption for the two new Alaska Class
Ferries (ACFs) and the replacement vessel, Motor Vessel (M/V)
Tustumena. He explained that there is a requirement in statute
that 1 percent of the construction cost of public facilities be
used for the purchasing, administration, and hanging of art.
Mr. Gruening noted that currently the state has the M/V Taku -
which is in unmanned layup status because the state is trying to
sell it - and all the art has been removed and placed in a
climate-controlled facility in Ketchikan. He explained that the
aforementioned art is available for reuse and refurbishment on
the two new ACFs. He added that the two new ACFs are scheduled
to be delivered for upper Lynn Cannel operation in 2018. Mr.
Gruening mentioned that there is art on the old M/V Tustumena
that is going to be removed then put on the new replacement
vessel. He stated that there is a zero fiscal note accompanying
HB 117.
MR. GRUENING noted that the analysis section on the second page
discusses the savings to the state by seeking a one-time
exemption for the reuse of art. He pointed out that the bill is
not opposed by the Alaska State Council on the Arts. He added
that HB 117 is not an attack on the program but is a one-time
exemption in recognition of the state's current fiscal
challenges. Mr. Gruening reiterated the idea to use existing
art for refurbishment instead of purchasing new art.
1:53:04 PM
REPRESENTATIVE NEUMAN offered his understanding that HB 117 only
exempts the two new AMHS vessels.
MR. GRUENING answered that HB 117 would exempt the two new ACFs
currently being constructed and the replacement Tustumena, which
is funded in "this year's budget."
REPRESENTATIVE NEUMAN offered that since sometime in the
foreseeable future AMHS would need new vessels, the state should
consider doing away with the "one percent for art" on the
ferries, which he added would eliminate the need to come back to
the legislature for another exemption.
CO-CHAIR WOOL explained that one of the reasons the Alaska State
Council of the Arts is not opposed to HB 117 is because the
proposed legislation is not an open-ended exemption. He
expressed uncertainty in knowing when the next vessels would
need to be replaced in AMHS's fleet, but said he hoped it would
not be any time soon. Co-Chair Wool asked for clarification
that the exemption in the proposed legislation is for the two
new vessels currently under construction and the replacement
vessel for the M/V Tustumena.
MR. GRUENING responded that is correct. He said that the
exemption for the three aforementioned vessels would save the
state over $5 million in construction cost.
CO-CHAIR WOOL asked the Department of Transportation & Public
Facilities (DOT&PF) to address the question of when, if at all,
the next round of vessel replacements would take place.
1:55:03 PM
MICHAEL NEUSSL, Deputy Commissioner, Department of
Transportation & Public Facilities (DOT&PF), stated that the
department does not have an exact timeline for further vessel
replacement, beyond the M/V Tustumena. He added that the
Tustumena replacement vessel has already been designed and, as
Mr. Gruening previously mentioned, its construction funding is
requested in the 2017 budget. Mr. Neussl noted that the
department's vessel replacement plan is very fluid.
1:55:30 PM
CO-CHAIR STUTES asked how much the state would save if the
proposed legislation passes. She rephrased her question by
asking whether the one percent for art is reflective of the
total construction cost or if it is based solely on the state's
portion of the cost.
1:56:05 PM
MR. NEUSSL stated that the "one percent for art" is based on the
construction cost of the facility. He noted that AMHS vessels
are specifically listed in the statute regarding 1 percent of
vessel construction cost be set aside for the purchase of art.
Mr. Neussl stated that the two new ACFs are under a $101 million
construction contract and 1 percent would have to be set aside
for art. He added that the replacement cost for the M/V
Tustumena is $237 million, which would mean $2.37 million would
need to be set aside for art. He noted that the M/V Tustumena
replacement vessel is a federally funded project that would
allow the $2.37 million to be a 90:10 split.
CO-CHAIR STUTES asked Mr. Neussl to clarify the M/V Tustumena
federal/state split.
MR. NEUSSL explained that typically federal aid projects are 90
percent federally funded and 10 percent state funded. He noted
that the amount varies between projects.
CO-CHAIR STUTES offered her understanding that specifically for
the M/V Tustumena replacement project, the state would be saving
1 percent of the 10 percent.
MR. NEUSSL stated that specifically regarding state funds, Co-
Chair Stutes is correct.
CO-CHAIR WOOL inquired whether the federal funds could be used
for the "one percent for art." He also asked whether that would
mean the federal funds would cover 90 percent of the 1 percent.
MR. NEUSSL answered that the "one percent for art" set aside
would be the same 90:10 split as the total construction cost.
1:58:20 PM
REPRESENTATIVE SULLIVAN-LEONARD mentioned that the question and
answer handout, included in the committee packet, details state
savings. She said that the handout notes a savings of $3.5
million to the state from the construction budget on that
particular art.
CO-CHAIR WOOL said that the $2.37 million from the M/V Tustumena
would be 90 percent paid by the federal match, so the state
obligation would be one-tenth of that amount.
1:59:05 PM
REPRESENTATIVE CLAMAN asked whether there is a companion federal
"one percent for art" match that is required.
MR. NEUSSL answered no, not to his knowledge.
REPRESENTATIVE NEUMAN offered clarification that the sponsor
statement said the two ACFs are 100 percent state funded and the
M/V Tustumena is only 90 percent [federally] funded.
MR. NEUSSL answered that is correct. He added that the "one
percent for art" set aside is not a cost savings and the
department does not pocket the saved funds back into the general
fund (GF). Mr. Neussl explained that in order to stay within
the funding available to award the contract for the two new
ACFs, a lot of the critical equipment on board had to be listed
as state furnished equipment. He noted that the state would
have to come up with the aforementioned equipment, either by
other funding sources or by salvaging it from a vessel that is
leaving service, in order to fully outfit the two new ACFs. Mr.
Neussl stated that instead of 1 percent being applied to art,
the money would go for things such as radars and ridged hull
inflatable boats, which are outfitting requirements for the
vessels.
CO-CHAIR WOOL offered his understanding that some of those
things are not included in the price when listed and are
essentially add-ons.
MR. NEUSSL answered that is correct. He added that when the
construction contract was negotiated and awarded for $101
million dollars, there were many items listed that would be
state furnished equipment. He said that the state-furnished
equipment would need to be provided outside of the contract.
Mr. Neussl offered to provide the committee with the list of
state funded equipment.
CO-CHAIR WOOL offered his understanding that the $101 million is
the 1 percent state obligation and "the other items are ...
extras ..."
MR. NEUSSL explained that Alaska Statue requires 1 percent on
top of the $101 million awarded for the vessel construction
cost. He added that the contract was awarded to Vigor
Industrial LLC. at the shipyard in Ketchikan. He said that some
of the equipment he mentioned earlier, such as the boats, the
radars, and some of the heating, ventilation, and air
conditioning (HVAC) equipment, is not funded in the construction
contract. He noted that technically the aforementioned
equipment is not under the "one percent for art" requirement.
2:01:58 PM
REPRESENTATIVE DRUMMOND shared her understanding that the items
in discussion are mostly movable items, like furniture, that
would not normally be included in construction cost. She
inquired why the ACFs are totally state funded and why the state
did not ask for the federal share.
MR. NEUSSL replied that there is a long history behind that
reasoning. He explained that there was a desire to direct the
project to Ketchikan, and with a federally aided project, the
department would have no discretion of where the ACF project
would be steered. Mr. Neussl noted that the department did an
innovative procurement for the ACFs called a construction
manager/general contractor (CM/GC) process where the state
competed for a shipyard to be that CM/GC, then negotiated a best
price with that firm directly, instead of bidding it out like on
normal projects.
2:03:19 PM
CO-CHAIR WOOL announced that HB 117 was held over.
2:03:29 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:03
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB60 OMB Response 2.15.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 60 |
| HB131 ver D.PDF |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB131 Sponsor Statement.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB131 Fiscal Note DOT-DES 2.17.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 131 |
| HB117 v D 2.13.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 Sponsor Statement 02.20.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 Fiscal Note DOT 02.19.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| HB117 1% for Art Q&A.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 117 |
| SB3 Supporting Document - ASCA Letter 2.6.17.pdf |
HTRA 2/21/2017 1:30:00 PM |
SB 3 |
| CSHB60 (TRA) ver D Work Draft.pdf |
HTRA 2/21/2017 1:30:00 PM |
HB 60 |