Legislature(2001 - 2002)
01/22/2002 01:32 PM Senate TRA
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* first hearing in first committee of referral
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ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION COMMITTEE
JANUARY 22, 2002
1:32 p.m.
MEMBERS PRESENT
Senator John Cowdery, Chair
Senator Jerry Ward, Vice Chair
Senator Robin Taylor
Senator Gary Wilken
Senator Kim Elton
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
SENATE BILL NO. 215
"An Act relating to licensing common carriers to dispense
alcoholic beverages; and providing for an effective date."
MOVED CSSB 215 (TRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
SB 215 - No previous action recorded.
WITNESS REGISTER
William MacKay
Vice President-Public and Government Affairs
Alaska Airlines
Box 68900
Seattle, WA 98168-0900
POSITION STATEMENT: Supports SB 215
Kim Hutchison
2 Marine Way #203
Juneau, AK 99801
POSITION STATEMENT: Answered questions about SB 215
Howard Scaman
Council on Alcohol Abuse and Public Safety
P.O. Box 23007
Juneau, AK 99802
POSITION STATEMENT: Has no objection to SB 215
Doug Griffin
Director, Alcoholic Beverage Control Board
th
550 W. 7 #540
Anchorage, AK 99501
POSITION STATEMENT: Supports SB 215
ACTION NARRATIVE
TAPE 02-2, SIDE A
CHAIRMAN JOHN COWDERY called the Senate Transportation Committee
meeting to order at 1:32 p.m. Members present were Senators Ward
and Taylor and Chairman Cowdery. The order of business was SB
215.
CHAIRMAN COWDERY gave an overview of the Transportation
Committee's hearings in Anchorage over the summer.
· Aircraft Security, ideas were sent to Washington and many
were adopted.
· Knik Arm Crossing, over 100 people present.
· Regional Transportation Authority, for the Anchorage region
covering the area from Fairbanks to Kenai. Covering
development plans in Cook Inlet.
o Causeway to Fire Island
o Port of Anchorage development
o Knik Arm Crossing
o Port at Point Mackenzie
o Expand the boundary to Corps of Engineer study
CHAIRMAN COWDERY talked of his trip to Vicksburg, Mississippi and
was impressed with the Corps of Engineers' facility where they
will be building a model of Cook Inlet. He explained other
models that were built there.
He made note that Senator Wilken and Senator Elton were present.
SB 215-COMMON CARRIER LIQUOR LICENSE
WILLIAM MacKAY, Vice President-Public and Government Affairs
Alaska Airlines, read a statement giving two reasons that current
licensing requirements for common carriers be modified.
· First, to simplify the requirements so adding additional
aircraft will not require an entirely new application
process that involves filling out the application, supplying
supporting exhibits, and posting and publishing the
application for a license. Alaska Airlines and the
Alcoholic Beverage Control Board (ABC Board) agree that
modifying the statute to simplify obtaining additional
common carrier licenses will reduce the clerical and
administrative work for both Alaska Airlines and the Board
and is therefore in the public interest.
· Secondly, Alaska Airlines would like the fees reduced.
Alaska Airlines operates all of its 102 aircraft in Alaska.
None of the other major airlines serving Alaska, with the
possible exception of Delta, obtain Alaska liquor licenses
since they do not operate intrastate. Alaska Airlines
believes that it pays substantially more for common carrier
licenses than any other licensee in Alaska. If the proposed
bill becomes law, Alaska Airlines will still pay more in
fees to Alaska than it pays in any other state.
The statement included the current system-wide license fees.
License Fees
Fleet of 102_____________________________________________________
Master Per AC Total
Alaska 450.00 45,900.00*
Phoenix, Arizona 275.00 n/a
Tucson, Arizona 275.00 n/a 550.00
California 400.00 12.00 1612.00
Illinois n/a 60.00 1260.00**
Oregon 202.60 n/a 202.60
Virginia 1870.00 n/a 1870.00
Washington 750.00 5.00 1255.00
*Annual Cost; however required to file Biannually @ $900.00 per
aircraft
**700 & 900's only
CHAIRMAN COWDERY, understanding that eventually the entire fleet
would touch in Alaska, asked what their anticipated fleet would
be.
MR. MacKAY said they currently operate 102 aircraft and would be
adding 1 aircraft in 2002 and at least 3 more in 2003.
CHAIRMAN COWDERY asked if this bill will impact the other
carriers.
MR. MacKAY answered no because they don't serve alcohol.
SENATOR ELTON asked about the statement that Mr. MacKay had made,
that even with this bill Alaska Airlines will still pay more in
Alaska than any other state. Was that because they have more
intrastate flights in Alaska or was that because other states
charge less for the license.
MR. MacKAY thought that it was because they are charged more in
Alaska. He didn't know if other states based their fees on
intrastate flying.
CHAIRMAN COWDERY asked if there were any other questions.
SENATOR WARD moved that Amendment A be adopted.
Page 2, line 1, following "licenses."
Insert "Upon request of the common carrier and
payment of the proportionate prorated applicable fee,
the board shall change the license period of a license
for a vehicle, boat, aircraft, or railroad buffet car
in monthly increments to allow biennial registration to
occur in the month of the licensee's choice."
SENATOR ELTON asked if the intent of the amendment was to allow
the common carrier to change the period of the license.
CHAIRMAN COWDERY said the Board would change the license period.
KIM HUTCHINSON, lobbyist for Alaska Airlines, explained that the
ABC Board offered the amendment, the intent being to put the
licenses all in the same time period so they don't license half
the aircraft one year and half the aircraft another year. That
would make the paperwork easier.
SENATOR TAYLOR said all of the people serving alcohol in the
state have adopted a program where the bartenders and barmaids
have to attend a training program. He asked if Alaska Airlines
has that as part of the training for their servers.
MR. HUTCHINSON said that Alaska Airlines employees who serve
alcohol go through the techniques in alcohol management program,
(TAMS) Program used to train bartenders and waitresses.
SENATOR TAYLOR wanted it on the record that this is voluntarily
done by the liquor industry and is not required by law. This has
had a major impact on incidence on aircraft and a salient effect
on the liquor industry across the state as far as DWIs. He
applauded Alaska Airlines for doing it.
HOWARD SCAMAN, Council on Alcohol Abuse and Public Safety
(CAAPS), said they have no objection to the bill. This is not an
alcohol bill but a revenue bill.
SENATOR ELTON asked about the difference in the numbers in
CAAPS's correspondence from those submitted by Alaska Airlines.
MR. SCAMAN said that their numbers differed from Alaska Airlines'
by two licenses. The numbers came from the ABC Board, showing
104 licenses, resulting in a difference of about $600.
DOUG GRIFFIN, Director, Alcoholic Beverage Control Board,
testifying via teleconference from Anchorage, said the fiscal
note is their best estimate. There will be some loss of revenue
to the state from this bill. He explained that Alaska Airlines
made a compelling case on how they were being treated differently
in the State of Alaska and how only a small portion of their
planes ever flew within locations in Alaska. Therefore the ABC
Board, out of a sense of fairness, supported the sense of this
bill to try to provide fairness. Westours is also affected, to a
lesser extent, with some of their rail cars.
MR. GRIFFIN said the ABC Board does not see this as an alcohol
issue. Alaska Airlines uses great care in how alcohol is
provided. This is a revenue issue and out of a sense of fair
disclosure they wanted to make sure the committee was aware it
has a fiscal note.
MR. GRIFFIN explained that it would be beneficial for clerical
ease, to provide a mechanism to get all the licenses on the same
biennial cycle. Alaska Airlines has about 70 aircraft on one
cycle and the remaining aircraft on the other cycle. The
discrepancy of two licenses was due to the airplanes being on
different cycles. The amendment could be a mechanism to get all
the aircraft on the same cycle making it easier to keep track.
He said the amendment language went more in depth than
anticipated so he had faxed possible changes to Chairman
Cowdery's staff, Mr. Smith. They need a single year license for
the purpose of getting all licenses on the same cycle.
He said that on line 4 he struck "in monthly increments" and
"biennial" and then added "the biennial period of the balance of
the licensee's common carrier licenses." This would make it
simpler and it would read starting on line 4:
"aircraft, or railroad buffet car to allow registration
to occur in the biennial period of the balance of the
licensee's common carrier licenses."
CHAIRMAN COWDERY said he did not believe that language change is
a problem with the industry.
MR. GRIFFIN believed the industry is supportive of this as well.
SENATOR TAYLOR moved that they amend amendment A beginning on
line four to read:
"aircraft, or railroad buffet car to allow registration
to occur in the biennial period of the balance of the
licensee's common carrier licenses."
CHAIRMAN COWDERY asked for any objections. There being no
objection to amending the amendment, the motion passed. Then,
there being no objection to the amendment, the amendment was
adopted.
SENATOR TAYLOR moved that CSSB 215 (TRA) be moved from committee
with individual recommendations and fiscal note. There being no
objection the motion passed.
SENATOR WARD asked if the committee had received any information
about whether or not the GARVEE bonds, according to the
constitution, require a vote of the people from the Department of
Administration or from Legal Services.
CHAIRMAN COWDERY said he had intercepted an inter-department
email that said that it did not require a vote of the people. He
personally believes bonds require a vote of the people.
SENATOR WARD said he was under the impression that the Attorney
General's office was going to issue an opinion on it. He asked
if they could request that.
CHAIRMAN COWDERY said they could do that.
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SENATOR WILKEN said that on February 5, at 1:30 pm General
Schwartz is going to address the Joint Armed Services Committee.
He asked that Chairman Cowdery not schedule a meeting that day so
the legislature can attend his presentation on missile defense.
CHAIRMAN COWDERY said it had been done.
SENATOR TAYLOR thanked Chairman Cowdery for his initiative and
energy. The Transportation Committee had done more work in the
interim and held more hearings than any other committee in the
Senate that he was aware of. He thought it was a very good
series of hearings.
SENATOR WARD, Chairman of the Subcommittee on Transportation,
said one of the things that will be facing the Finance and
Transportation Committees this year is the fund that funds the
Marine Highway System. He asked the Transportation Committee to
give direction on the alternatives to the Finance Committee.
CHAIRMAN COWDERY answered that he had asked DOTPF to furnish some
organizational charts and to break out the engineer and contract
disputes segment of that. DOTPF thought it would be a big
project but he hoped Senator Ward's subcommittee could request
them to furnish that.
SENATOR WARD said it had been requested.
SENATOR ELTON said he and Senator Taylor would be happy to serve
on a subcommittee to the Transportation Committee to talk about
the Marine Highways.
CHAIRMAN COWDERY agreed. He then adjourned the meeting at 2:05
p.m.
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