Legislature(1993 - 1994)
04/01/1993 03:55 PM Senate TRA
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE TRANSPORTATION COMMITTEE
April 1, 1993
3:55 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chairman
Senator Randy Phillips, Vice Chairman
Senator Tim Kelly
Senator Georgianna Lincoln
MEMBERS ABSENT
Senator Jay Kerttula
COMMITTEE CALENDAR
SENATE BILL NO. 148
"An Act relating to the Alaska Railroad Corporation; and
providing for an effective date."
SENATE BILL NO. 167
"An Act relating to the distribution of the revenue obtained
from imposition of the state tax on motor fuel used in
watercraft of all descriptions; and providing for an
effective date."
SB 157 (PROHIBITED HIGHWAY ADVERTISING) WAS SCHEDULED, BUT
NOT HEARD THIS DATE.
PREVIOUS SENATE COMMITTEE ACTION
SB 148 - See Transportation minutes dated 3/11/93, 3/23/93
3/30/93.
SB 167 - No previous action to record.
SB 157 - See Transportation minutes dated 3/23/93 & 3/30/93.
WITNESS REGISTER
Paul Anderson, City Councilman
City of Petersburg
Box 1454
Petersburg, AK 99833
POSITION STATEMENT: Testified on SB 167
Jim Stromdahl, Harbor Master
City of Petersburg
Box 1047
Petersburg, AK 99833
POSITION STATEMENT: Testified on SB 167
Doug Ensley, Director of Ports & Harbors
City of Ketchikan
334 Front St.
Ketchikan, AK 99901
POSITION STATEMENT: Suggested amending SB 167
Jud Fager, City Assembly
City & Brough of Sitka
206 1/2 Lakebiew Drive
Sitka, AK 99835
POSITION STATEMENT: Testified on SB 167
Brian Bergman, Harbor Master
City & Borough of Sitka
212 Lakeview Drive
Sitka, AK 99835
POSITION STATEMENT: Suggested amending SB 167
Ron Lind, Director
Plan, Programs & Budget
Department of Transportation & Public Facilities
3132 Channel Drive
Juneau, AK 99801-7898
POSITION STATEMENT: Offered information on SB 167
Larry Meyers, Director
Income & Excise Audit Division
Department of Revenue
P.O. Box 110420
Juneau, AK 99811-0420
POSITION STATEMENT: Ofered information on SB 167
Tom Briggs, City Administrator
City of Craig
P.O. Box 725
Craig, AK 99921
POSITION STATEMENT: Testified on SB 167
ACTION NARRATIVE
TAPE 93-19, SIDE A
Number 001
CHAIRMAN SHARP called the Senate Transportation Committee to
order at 3:55 p.m. and brought SB 148 (ALASKA RAILROAD
CORPORATION) before the committee, noting there was a
proposed committee substitute for the committee's
consideration.
Number 015
SENATOR KELLY moved that CSSB 148(TRA) be adopted. Hearing
no objection, the motion carried.
Number 028
SENATOR KELLY moved that a memorandum from the Senate
Transportation Committee be sent to the Senate Finance
Committee requesting that the committee closely examine the
tax issue raised in the legislation. Hearing no objection,
the motion carried.
Number 040
SENATOR KELLY moved that CSSB 148(TRA) be passed out of
committee with individual recommendations. Hearing no
objection, it was so ordered.
Number 050
CHAIRMAN SHARP brought SB 167 (MARINE FUEL TAX REVENUE
SHARING) before the committee as the next order of business
and noted that the Anchorage, Craig, Sitka, Ketchikan,
Wrangell and Petersburg teleconference sites were
participating in this portion of the meeting.
Number 055
SENATOR RANDY PHILLIPS requested that he be excused from the
remainder of the meeting in order to attend budget closeouts
in the Senate Finance Committee. The Chair excused Senator
Phillips.
Number 085
CHAIRMAN SHARP opened the public hearing on SB 167 to
testimony over the teleconference network.
PAUL ANDERSON, City Councilman, City of Petersburg, referred
to page 2, line 5, and stated he objected to the word
"owned." He said there have been two surveys in the last
two years of all harbors in the state, one by DOT and one by
the Army Corps of Engineers. The purpose of the surveys was
to find harbor deficiencies, and when they are found, the
state puts them on a deferred maintenance basis.
During this last fiscal year there has been zero dollars
budgeted in state harbors. Municipalities are trying to
take over these harbors for the state, but they cannot
afford to take them over until they are brought up to code,
and they could use some of the operation and maintenance
money from the tax revenue.
Number 115
JIM STROMDAHL, Harbor Master, City of Petersburg, concurred
with the previous speaker's remarks. He said one of
Petersburg's harbors is over 30 years old and another one is
22 years old. Both harbors need major maintenance before
the city could take them over and work out a cost-effective
plan so they could run the harbors in the future.
Number 150
DOUG ENSLEY, Director of Ports & Harbors, City of Ketchikan,
concurred with the previous speakers' comments on SB 167.
Ketchikan's facilities are extremely old and the conditions
are very poor. They do their maintenance, however, the
local funding is not sufficient. He believes SB 167 is a
good step in the right direction to assist the communities
that are operating boat harbors and bringing them to a more
acceptable condition.
Mr. Ensley suggested amending SB 167 to remove any language
which puts in a formula dividing the facilities between what
are municipally owned and what are primarily state owned.
Number 210
JUD FAGER, City Assembly, City & Borough of Sitka, said with
DOT pushing to give ownership to municipalities, there has
to be a fiscal side of revenue coming from municipalities.
He said municipalities do not want to change from the State
of Alaska being responsible for major maintenance and
construction over $10,000. Harbors are run like a business,
set up as an enterprise fund, and they won't enter into a
losing proposition, he said.
Mr. Fager pointed out that the legislation provides that the
revenues would be used only for harbors, etc., and he
suggested adding that it could also be used for bonding
capabilities for further construction.
Number 250
BRIAN BERGMAN, Harbor Master, City & Borough of Sitka,
suggested as a clarification, that on page 1, line 9 and
page 2, line 1, to substitute the word "port" for the word
"water." He said the municipal water systems are part of
the harbor facilities themselves.
Number 275
SENATOR LINCOLN asked if the definition of "moorage
facility" could include a facility on a river.
RON LIND, Department of Transportation & Public Facilities,
clarified that the reason the words "water and harbor
facilities" are in the legislation is because launch ramps
are not really harbors and are not moorage facilities. He
said his interpretation of "moorage" would be that the
lineal footage of a launch ramp would not be applicable
because a boat is not moored at a launch ramp. If there was
a temporary floatation or a temporary docking structure
along a river or a lake where a boat could be moored, that
would qualify.
SENATOR LINCOLN said she would like to see the bill written
as broadly as possible so that it won't have to be amended
later, but her concern is assuring that the taxes be given
to the area where the revenue taxation occurs versus where
the retail sale occurs.
Number 345
LARRY MEYERS, Director, Income & Excise Audit Division,
Department of Revenue, said the department has been
wrestling with the question of how to identify where the
ultimate use of the tax dollars are. Right now, the tax
system is set up whereby they tax at the first entry into
the state or at the wholesale level. The department
emphasis, in the past, has been to tax them when they know
they have the best chance of administrating the taxes.
Number 360
SENATOR LINCOLN requested that the issue be looked into to
see if there is a way to cleanup the language to deal with
where the actual use of that fuel occurs.
Number 390
RON LIND, referred to page 2, line 7, and said the way it is
written it would be the commissioner of the Department of
Revenue who would determine the total linear footage.
However, the Department of Revenue doesn't have that
information available, and it is suggested that the
Department of Transportation and Public Facilities determine
the total linear footage owned by the state. Also, on page
2, lines 2 and 3, he suggested adding an amendment that
would speak to the municipalities certifying the amount of
the sales within the municipality and the total lineal
footage that was owned by the municipality as a way to try
and keep down the administrative costs of running this
program. He added that one of the biggest problems that
will come if they start doing a proration or attempt to find
fuel use statistics on very localized areas is the cost of
administration, which is going to be very high.
Number 430
JOE AMBROSE, staff to Senator Robin Taylor, said several
points have been raised in the hearing on SB 167, and
Senator Taylor is more than willing to consider any
amendments to it.
Number 450
TOM BRIGGS, City Administrator, City of Craig, said the
purpose of the original House bill was to enable a
municipality that is going to take over the ownership and
operations of their harbor facilities, which have been owned
by DOT up to this point, to have some revenue to maintain
and improve, if necessary, those harbors. There are several
communities in Alaska that have assumed ownership of their
harbors, and the purpose of the bill is to enable the tax
that is collected for marine watercraft fuels to go to the
municipality to maintain the harbor facility. He said the
municipalities that are participating in this want to take
over the responsibility, and they are asking for an
incentive for the municipal governments to start assuming
those things which have been funded by the general fund up
to now.
Number 480
There being no other witnesses wishing to testify on SB 167,
CHAIRMAN SHARP said it would be held in committee for
further work.
There being no further business to come before the
committee, the meeting was adjourned at 4:32 p.m.
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