Legislature(2021 - 2022)BARNES 124
03/15/2022 01:00 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB366 | |
| HB357 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 366 | TELECONFERENCED | |
| *+ | HB 357 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE TRANSPORTATION STANDING COMMITTEE
March 15, 2022
1:02 p.m.
MEMBERS PRESENT
Representative Grier Hopkins, Chair
Representative Sara Hannan, Vice Chair
Representative Louise Stutes
Representative Harriet Drummond
Representative Tom McKay
Representative Kevin McCabe
Representative Mike Cronk
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 366
"An Act authorizing the Alaska Railroad Corporation to issue
revenue bonds to finance the replacement of the Alaska Railroad
Corporation's passenger dock and related terminal facility in
Seward, Alaska; and providing for an effective date."
- MOVED HB 366 OUT OF COMMITTEE
HOUSE BILL NO. 357
"An Act naming the Bragaw Street overcrossing of the Glenn
Highway the Insook Baik Bridge."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 366
SHORT TITLE: LEG. APPROVAL: AK RAILROAD REVENUE BONDS
SPONSOR(s): TRANSPORTATION
02/22/22 (H) READ THE FIRST TIME - REFERRALS
02/22/22 (H) TRA, FIN
03/01/22 (H) TRA AT 1:00 PM BARNES 124
03/01/22 (H) Scheduled but Not Heard
03/03/22 (H) TRA AT 1:00 PM BARNES 124
03/03/22 (H) Heard & Held
03/03/22 (H) MINUTE(TRA)
03/08/22 (H) TRA AT 1:00 PM BARNES 124
03/08/22 (H) <Bill Hearing Canceled>
03/15/22 (H) TRA AT 1:00 PM BARNES 124
BILL: HB 357
SHORT TITLE: NAMING THE INSOOK BAIK BRIDGE
SPONSOR(s): TARR
02/22/22 (H) READ THE FIRST TIME - REFERRALS
02/22/22 (H) TRA, FIN
03/15/22 (H) TRA AT 1:00 PM BARNES 124
WITNESS REGISTER
BILL O'LEARY, President and CEO
Alaska Railroad Corporation
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 366.
REPRESENTATIVE GARAN TARR
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As the bill sponsor, introduced HB 357.
DAVID SONG, Staff
Representative Garan Tarr
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Tarr, prime
sponsor, gave a PowerPoint presentation, titled "House Bill 357:
Insook Baik Bridge."
KEY GETTY, President
Korean American Community of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 357.
ACTION NARRATIVE
1:02:46 PM
CHAIR GRIER HOPKINS called the House Transportation Standing
Committee meeting to order at 1:02 p.m. Representatives
Hopkins, Drummond, Hannan, McKay, McCabe, and Cronk were present
at the call to order. Representative Stutes arrived as the
meeting was in progress.
HB 366-LEG. APPROVAL: AK RAILROAD REVENUE BONDS
1:03:26 PM
CHAIR HOPKINS announced that the first order of business would
be HOUSE BILL NO. 366, "An Act authorizing the Alaska Railroad
Corporation to issue revenue bonds to finance the replacement of
the Alaska Railroad Corporation's passenger dock and related
terminal facility in Seward, Alaska; and providing for an
effective date."
1:04:08 PM
BILL O'LEARY, President and CEO, Alaska Railroad Corporation
(ARRC), expressed the opinion that the project would be great
for Alaska.
1:05:27 PM
MR. O'LEARY, in response to a series of questions from
Representative McCabe, answered that the current design is for a
fixed dock. He responded that the railroad would be responsible
for the maintenance, and he responded that as the dock is
currently designed, it would not be suitable for ferry usage
without significant modifications.
1:08:21 PM
REPRESENTATIVE DRUMMOND commented that the ferry used to stop in
Seward, but a stop on the road system is not always necessary.
1:09:39 PM
MR. O'LEARY, in response to Chair Hopkins, answered that the
freight dock is being rebuilt, but incentives are not a current
part of the plan. In response to a follow-up question, he said
that the dock would be rebuilt in 2023.
1:10:57 PM
REPRESENTATIVE MCCABE questioned the cruise ship dock versus the
freight dock at Lowell Point.
MR. O'LEARY answered that he is unsure about Lowell Point. In
response to a follow-up question, he said that he is unsure
whether there would be any delays. Concerning the amortization
schedule, he answered that there is a current 30-year model for
tax exempt debt. In response to a follow-up question, he said
Royal Caribbean Cruise Line would be using the dock, and
possibly the Norwegian Cruise Line is considering moving into
Whittier.
REPRESENTATIVE MCCABE asked how the budget would affect the
Whittier lease.
MR. O'LEARY answered that it is still under consideration by the
railroad.
1:14:59 PM
REPRESENTATIVE DRUMMOND commented that the MV Tustumena serviced
Seward.
1:15:49 PM
REPRESENTATIVE CRONK commented that people who live in Seward
are experiencing housing shortages.
1:16:27 PM
REPRESENTATIVE MCCABE moved Amendment 1 to HB 366, labeled 32-
LS1559\A.1, Marx, 3/4/22, which read as follows:
Page 1, line 3, following "Alaska;";
Insert "authorizing the Alaska Railroad
Corporation to issue revenue bonds to finance the
extension of the Port MacKenzie Rail Spur from Port
MacKenzie to Houston, Alaska;"
Page 1, line 7, following "APPROVAL"
Insert ":PASSENGER DOCK AND RELATED TERMINAL
FACILITY"
Page 2, line7:
Delete "Act" in both places
Insert "section" in both places
Page 2, following line 15:
Insert a new bill section to read:
..."*Sec. 2. The uncodified law of the State of Alaska
is amended by adding a new section to read:
LEGISLATIVE AUTHORIZATION AND APPROVAL: PORT
MACKENZIE RAIL SPUR. (a) The Alaska Railroad
Corporation is authorized to issue revenue bonds under
AS 42.40.250 to finance the extension of the Port
MacKenzie Rail Spur from Port MacKenzie to Houston,
Alaska, and associated costs, including, without
limitation, reserves for debt service and capitalized
interest, if necessary or appropriate, and costs of
issuance. The maximum principal amount of bonds that
the Alaska Railroad Corporation may issue under this
section is $140,000,000. The Alaska Railroad
Corporation may issue the bonds in a single issuance
or in several issuances, without limitation as to the
number of issuances or timing, and as the Alaska
Railroad Corporation determines best furthers the
purpose of financing the extension of the Port
MacKenzie Rail Spur from Port MacKenzie to Houston,
Alaska, and associated costs. The bonds shall be
repaid from resource or economic development revenue
or other funds available to the Alaska Railroad
Corporation. The general credit of the Alaska Railroad
Corporation and state may not be pledged for the
repayment of the bonds.
(b) the authorization under (a) of the section
extends to bonds issued to refund the bonds authorized
in this section. The principal amount of the bonds
authorized in this section may be increased in an
issue of refunding bonds in an amount equal to the
costs of refunding.
(c) This section constitutes the approval
required by AS 42.40.285 for the issuance of the bonds
described in this section.
(d) the bonds authorized to be issued under this
section are issued by a public corporation and an
instrumentality of the state for an essential public
and governmental purpose.
(e) In this section, "bonds" means bonds, bond
anticipation notes, notes, refunding bonds, or other
obligations."
Renumber the following bill sections accordingly.
1:16:31 PM
CHAIR HOPKINS objected for the purpose of discussion.
1:16:35 PM
REPRESENTATIVE MCCABE explained Amendment 1 to HB 366. He noted
the revenue services and the aggregate rate revenue from the
railroad and gave his opinion that businesses would not invest
in the area until the project is finished due to Alaska's
history of "not finishing projects." He said that with
investment, larger ships would be able to dock in Alaska.
1:20:42 PM
REPRESENTATIVE HANNAN questioned the amount which would be
needed for the project bonds to reach $140 million.
REPRESENTATIVE MCCABE answered that he is unsure.
MR. O'LEARY added that he is unsure of a way for the Alaska
Railroad to issue enough bonds to reach $140 million.
REPRESENTATIVE HANNAN asked for an explanation of revenue bonds.
MR. O'LEARY answered that a revenue bond would involve a revenue
source related to the project to permit them to pay back the
money plus a premium.
REPRESENTATIVE HANNAN shared her understanding that the
Matanuska-Susitna Borough, rather than the railroad, put $180
million into an extension.
REPRESENTATIVE MCCABE commented that the borough is still
interested, but the money is not available.
1:24:36 PM
REPRESENTATIVE HANNAN asked Mr. O'Leary to describe the leases
and arrangements of the cruise industry.
MR. O'LEARY responded that there are a number of different
brands and subsidiaries. Royal Caribbean is the largest tenant
in Seward, and more tenants would be needed long term.
1:25:51 PM
REPRESENTATIVE MCKAY questioned how much of Port Mackenzie has
been built.
MR. O'LEARY answered that Port Mackenzie is a Matanuska-Susitna
Borough project which had been envisioned in the previous
decade, and a significant amount of work has already been done
from Houston, Alaska to the port. He stated that the missing
infrastructure is a railroad to the port and the work to
increase the port's size. He said that the latest estimate
would cost approximately $325 million, which is supported by
ARRC.
1:29:32 PM
REPRESENTATIVE MCCABE commented that the railroad is important
to development and food security in Alaska, and it is the
gateway to the Arctic. He questioned why the railroad has been
unable to find an anchor tenant much like Seward has.
1:31:07 PM
REPRESENTATIVE STUTES asked why the Matanuska-Susitna Borough
cannot issue revenue bonds.
REPRESENTATIVE MCCABE answered that he is unsure. He added that
unless the railroad builds rails to the port, it cannot be
expanded.
1:32:27 PM
REPRESENTATIVE MCKAY asked whether the borough or the railroad
could apply for a grant through the [Infrastructure and jobs Act
(IIJA)].
MR. O'LEARY answered that IIJA is meant as grant funding and not
finance debt. He added that there are possible opportunities to
seek out.
1:34:17 PM
REPRESENTATIVE HANNAN asked for the depth of Port Mackenzie.
REPRESENTATIVE MCCABE answered that it is 90 feet at high tide,
and 30 feet under the keel of a Panamax vessel.
REPRESENTATIVE HANNAN expressed the understanding that most
vessels are looking for substantially deeper ports, and the port
in Anchorage is not deep enough for cruise ships.
REPRESENTATIVE MCCABE responded that he has spoken to pilots who
consider Port Mackenzie to be a deep-water port. He added that
the Port of Alaska in Anchorage requires dredging, and this is
not necessary at Port Mackenzie.
1:36:33 PM
REPRESENTATIVE DRUMMOND commented that creating a rail project
would benefit from the cooperation between the Matanuska-Susitna
Borough and the Municipality of Anchorage, and this could
possibly include a joint port authority.
1:38:47 PM
REPRESENTATIVE MCCABE commented that 50 feet is required for a
large container ship.
1:39:02 PM
CHAIR HOPKINS asked whether the railroad has a position on this
amendment.
MR. O'LEARY answered that the railroad would not be supportive
of the amendment as drafted because of authorization issues.
1:39:44 PM
REPRESENTATIVE MCCABE questioned whether, with given the
authority, would the railroad only use it if necessary.
MR. O'LEARY responded that as drafted, the amendment refers to a
greater cost than the benefit ARRC would receive.
1:41:46 PM
REPRESENTATIVE MCCABE commented that as a second-class borough,
the Matanuska-Susitna Borough has limited authority. He added
that the strength of a port is the revenue it can generate.
1:43:16 PM
REPRESENTATIVE STUTES expressed support for the idea, but added
she does not believe the amendment is the best way to move it
forward.
1:44:18 PM
CHAIR HOPKINS expressed the opinion that having multiple ports
in Alaska would be a great investment for the state, but a
better plan needs to be developed.
1:45:43 PM
REPRESENTATIVE DRUMMOND read a statement from the Matanuska-
Susitna Borough website expressing support for connecting Port
Mackenzie to the Railbelt.
1:47:52 PM
REPRESENTATIVE HANNAN commented that she supports the concept of
adding more ports but does not support the amendment. She said
that she represents two communities who have chosen to build
their own docks with plans which have not fully materialized.
When the cruise ship corporations build new docks in other parts
of the state, they bring all their subsidiaries with them.
1:50:41 PM
REPRESENTATIVE MCCABE withdrew Amendment 1 to HB 366.
1:51:42 PM
CHAIR HOPKINS opened public testimony on HB 366. After
ascertaining there was nobody who wished to testify, he closed
public testimony.
1:52:37 PM
REPRESENTATIVE HANNAN moved to report HB 366 out of committee
with individual recommendations and the accompanying fiscal
notes. Without objection, HB 366 was moved from the House
Transportation Standing Committee.
1:53:02 PM
The committee took an at-ease from 1:53 p.m. to 1:56 p.m.
HB 357-NAMING THE INSOOK BAIK BRIDGE
1:56:18 PM
CHAIR HOPKINS announced that the final order of business would
be HOUSE BILL NO. 357, "An Act naming the Bragaw Street
overcrossing of the Glenn Highway the Insook Baik Bridge."
1:56:49 PM
REPRESENTATIVE GARAN TARR, Alaska State Representative, prime
sponsor, introduced the bill. She stated that the purpose of
the legislation is to name a previously unnamed bridge after a
member of the community who is deserving of the honor.
1:57:47 PM
DAVID SONG, Staff, Representative Garan Tarr, Alaska State
Legislature, on behalf of Representative Tarr, prime sponsor,
gave a PowerPoint presentation, titled "House Bill 357: Insook
Baik Bridge." He progressed from slide 2 to slide 8, describing
the bridge as the Bragaw Street bridge over the Glenn Highway in
Mountain View in Anchorage. He displayed pictures of the
bridge. He said that the community has been involved in
deciding the name of the bridge and gave a list of potential
names. He showed a brief list of some of the contributions made
by Insook Baik to the Mountain View community.
2:01:08 PM
MR. SONG continued to slide 9 through slide 12 and stated Insook
Baik's contributions have received significant media coverage
over the years. The community strongly supports the efforts to
honor her, and quotes were shown detailing support for HB 357.
2:04:29 PM
REPRESENTATIVE TARR commented that the project has been fun to
develop, as there has been significant community feedback.
2:05:09 PM
REPRESENTATIVE HANNAN asked whether there is a policy for naming
things in honor of living people. She expressed respect for
Insook Baik; however, she expressed hesitation to begin a naming
convention which would include living people.
REPRESENTATIVE TARR expressed the opinion that it is acceptable
to name things for living or deceased people. She noted that
there is other legislation which would allow non-profit groups
to make donations towards the cost of such projects.
2:08:57 PM
REPRESENTATIVE CRONK expressed support for naming things for
living people. He explained that a person who is still alive
could then have appreciation.
2:09:22 PM
REPRESENTATIVE DRUMMOND commented that the Anchorage School
District (ASD) has a policy to not name school buildings after
living individuals, although the Municipality of Anchorage does
not follow this policy.
2:10:44 PM
KEY GETTY, President, Korean American Community of Anchorage,
Inc., gave invited testimony, providing a brief history of the
Korean American Community of Anchorage, Inc. She stated that
the community had been founded in 1973. She stated that the
organization gives scholarships to ASD students regardless of
their ancestry. She stated that Insook Baik has made
significant contributions to the communities of Korean Americans
and Mountain View as a whole. She said that naming the bridge
after Insook Baik would mean a great deal to the Korean American
community. She stated that this community has rallied behind
many charitable causes, of which Insook Baik has been a
participant.
2:18:58 PM
CHAIR HOPKINS opened public testimony. After ascertaining that
there was no one who wished to testify, he closed public
testimony.
2:19:58 PM
CHAIR HOPKINS set aside HB 357.
2:20:21 PM
ADJOURNMENT
There being no further business before the committee, the House
Transportation Standing Committee meeting was adjourned at 2:20
p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 357 Sectional Analysis version A 3.14.2022.pdf |
HTRA 3/15/2022 1:00:00 PM |
HB 357 |
| HB 357 Sponsor Statement 3.14.2022.pdf |
HTRA 3/15/2022 1:00:00 PM |
HB 357 |
| HB0357A.PDF |
HTRA 3/15/2022 1:00:00 PM |
HB 357 |
| HB 357 Supporting Documents 3.14.2022.pdf |
HTRA 3/15/2022 1:00:00 PM |
HB 357 |
| HB 357 Presentation 3.14.2022.pdf |
HTRA 3/15/2022 1:00:00 PM |
HB 357 |
| HB 366 - Amendment 1 3.14.2022.pdf |
HTRA 3/15/2022 1:00:00 PM |
HB 366 |