Legislature(2007 - 2008)BUTROVICH 205
05/01/2007 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB136|| HB185 | |
| SJR7 | |
| HJR18 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 136 | ||
| HB 185 | |||
| * | SJR 7 | ||
| HJR 18 | |||
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
May 1, 2007
1:33 p.m.
MEMBERS PRESENT
Senator Albert Kookesh, Chair
Senator John Cowdery, Vice Chair
Senator Donny Olson
Senator Bill Wielechowski
Senator Gary Wilken
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 136
"An Act relating to certain municipal service areas that provide
road services."
HEARD AND HELD
CS FOR HOUSE BILL NO. 185(CRA)
"An Act relating to certain municipal service areas that provide
road services."
HEARD AND HELD
SENATE JOINT RESOLUTION NO. 7
Opposing the enactment of the provisions in the Next Generation
Air Transportation System Financing Reform Act of 2007 that
impose air traffic control user fees, increase aviation fuel and
aviation gas taxes, reduce airport funding, and reduce
Congressional oversight of the Federal Aviation Administration.
HEARD AND HELD
CS FOR HOUSE JOINT RESOLUTION NO. 18(TRA)
Opposing the enactment of the provisions in the Next Generation
Air Transportation System Financing Reform Act of 2007 that
impose air traffic control user fees, increase aviation fuel and
aviation gas taxes, reduce airport funding, and reduce
Congressional oversight of the Federal Aviation Administration.
HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 136
SHORT TITLE: MUNICIPAL ROAD SERVICE AREAS
SPONSOR(s): SENATOR(s) THOMAS
03/23/07 (S) READ THE FIRST TIME - REFERRALS
03/23/07 (S) CRA, TRA
04/05/07 (S) CRA AT 3:30 PM BELTZ 211
04/05/07 (S) -- MEETING CANCELED --
04/10/07 (S) CRA AT 3:30 PM BELTZ 211
04/10/07 (S) -- MEETING CANCELED --
04/13/07 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
04/13/07 (S) CRA, TRA
04/17/07 (S) CRA AT 3:30 PM BELTZ 211
04/17/07 (S) Moved SSSB 136 Out of Committee
04/17/07 (S) MINUTE(CRA)
04/18/07 (S) CRA RPT 3DP 1NR
04/18/07 (S) DP: OLSON, THOMAS, WAGONER
04/18/07 (S) NR: KOOKESH
04/24/07 (S) TRA AT 1:30 PM BUTROVICH 205
04/24/07 (S) Heard & Held
04/24/07 (S) MINUTE(TRA)
05/01/07 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: HB 185
SHORT TITLE: MUNICIPAL ROAD SERVICE AREAS
SPONSOR(s): REPRESENTATIVE(s) COGHILL
03/12/07 (H) READ THE FIRST TIME - REFERRALS
03/12/07 (H) CRA, TRA
03/22/07 (H) CRA AT 8:00 AM BARNES 124
03/22/07 (H) Heard & Held
03/22/07 (H) MINUTE(CRA)
03/27/07 (H) CRA AT 8:00 AM BARNES 124
03/27/07 (H) Moved CSHB 185(CRA) Out of Committee
03/27/07 (H) MINUTE(CRA)
03/28/07 (H) CRA RPT CS(CRA) 2DP 4NR
03/28/07 (H) DP: DAHLSTROM, FAIRCLOUGH
03/28/07 (H) NR: NEUMAN, OLSON, SALMON, LEDOUX
04/12/07 (H) TRA AT 1:30 PM CAPITOL 17
04/12/07 (H) Moved CSHB 185(CRA) Out of Committee
04/12/07 (H) MINUTE(TRA)
04/13/07 (H) TRA RPT CS(CRA) 2DP 2NR
04/13/07 (H) DP: FAIRCLOUGH, JOHANSEN
04/13/07 (H) NR: DOOGAN, NEUMAN
04/24/07 (H) TRANSMITTED TO (S)
04/24/07 (H) VERSION: CSHB 185(CRA)
04/25/07 (S) READ THE FIRST TIME - REFERRALS
04/25/07 (S) TRA
05/01/07 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: SJR 7
SHORT TITLE: OPPOSE CHANGES IN FED AVIATION LAWS
SPONSOR(s): SENATOR(s) OLSON
04/25/07 (S) READ THE FIRST TIME - REFERRALS
04/25/07 (S) TRA
05/01/07 (S) TRA AT 1:30 PM BUTROVICH 205
BILL: HJR 18
SHORT TITLE: OPPOSE FED AVIATION FUEL TAX INCREASE
SPONSOR(s): REPRESENTATIVE(s) JOHANSEN
04/05/07 (H) READ THE FIRST TIME - REFERRALS
04/05/07 (H) TRA
04/12/07 (H) TRA AT 1:30 PM CAPITOL 17
04/12/07 (H) Heard & Held
04/12/07 (H) MINUTE(TRA)
04/19/07 (H) TRA AT 1:30 PM CAPITOL 17
04/19/07 (H) Moved CSHJR 18(TRA) Out of Committee
04/19/07 (H) MINUTE(TRA)
04/20/07 (H) TRA RPT CS(TRA) NT 5DP
04/20/07 (H) DP: FAIRCLOUGH, DOOGAN, NEUMAN,
KOHRING, JOHANSEN
04/24/07 (H) TRANSMITTED TO (S)
04/24/07 (H) VERSION: CSHJR 18(TRA)
04/25/07 (S) READ THE FIRST TIME - REFERRALS
04/25/07 (S) TRA
05/01/07 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
Grier Hopkins, staff to Senator Thomas
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented SB 136.
Carol Beecher, staff to Representative Coghill
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented HB 185.
Sandra Wilson, representing herself
Juneau, AK
POSITION STATEMENT: Opposed to HB 185.
Renee Broker, attorney
Fairbanks North Star Borough
Fairbanks, AK
POSITION STATEMENT: Available for questions on HB 185.
Tammy Wilson, representing herself
Fairbanks, AK
POSITION STATEMENT: Opposed to HB 185.
Ginny Austerman, staff to Senator Olson
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented SJR 7 and commented on HJR 18.
Sonia Christiansen, staff to Representative Johansen
Alaska State Capitol
Juneau, AK
POSITION STATEMENT: Presented HJR 18.
Andrew Cebula, Executive Vice-President of Government Affairs
Aircraft Owners and Pilots Association
Washington, DC
POSITION STATEMENT: Supported of HJR 18
Tom George, Alaska representative
Aircraft Owners and Pilots Association
Fairbanks, AK
POSITION STATEMENT: Supported of HJR 18.
Wilfred Ryan, president
Alaska Air Carriers Association
Anchorage, AK
POSITION STATEMENT: Supported of HJR 18
DEE HANSON, Executive Director
Alaska Airmen's Association
Anchorage, AK
POSITION STATEMENT: Supported HJR 18.
ACTION NARRATIVE
CHAIR ALBERT KOOKESH called the Senate Transportation Standing
Committee meeting to order at 1:33:17 PM. Present at the call to
order were Senators Cowdery, Olson, Wielechowski, and Chair
Kookesh.
SB 136-MUNICIPAL ROAD SERVICE AREAS
CSHB 185(CRA)-MUNICIPAL ROAD SERVICE AREAS
CHAIR KOOKESH announced the consideration of SB 136.
GRIER HOPKINS, staff to Senator Thomas, sponsor of SB 136, said
that the bill would be substituted by its partner bill from the
other body, HB 185.
CHAIR KOOKESH asked if a committee substitute would be
introduced to combine the two bills.
MR. HOPKINS said that he hadn't heard so.
CHAIR KOOKESH announced the committee would hear SB 136 and HB
185 simultaneously. He didn't intend to move either today.
SENATOR COWDERY commented that the House bill would be more
appropriately dealt with.
CHAIR KOOKESH agreed.
1:35:24 PM
CAROL BEECHER, staff to Representative Coghill, sponsor of HB
185, said the bill provides boroughs with a means of altering
existing road service area boundaries to ensure taxpayer
fairness among residents of service areas. A service area is a
taxing jurisdiction within a borough that has been established
to provide special services such as road maintenance or fire
protection. These services are requested and approved by voters
residing within a specific area. State law permits borough
residents living outside a service area to use service area
roads for their sole or legally required access. These residents
derive a direct benefit equal to residents within the service
area, yet they can refuse to contribute to the costs of
construction or maintenance of these roads by voting down any
annexation attempt. These state mandated annexation votes
typically fail as individuals are reluctant to join a service
area when they can instead use these maintained roads for free.
HB 185 amends state law by allowing a service area to annex
property that uses its roads for their sole or legally required
access without a separate vote of the property to be annexed. A
second issue arises where residents of a service area are
required to pay into a service area even though they do not
utilize the service area roads for access to their property.
Service areas, however, are often reluctant to vote to remove
property from the service area because it effectively raises
taxes on the remaining property owners. HB 185 amends state law
by allowing a borough assembly to exercise its judgment to
alter, by ordinance, a service area boundary to exclude a
property that does not use service area roads as its sole or
legally required access.
1:37:26 PM
SENATOR COWDERY asked if the last paragraph of the bill means
that the borough can make a ruling on the issue.
MS. BEECHER replied yes, and referenced a part of the bill that
will allow a property owner not using the service area roads to
be removed from the area so as to not pay for a service they're
not using.
SENATOR COWDERY replied that the issue seems to be creating a
statewide law to address a local problem.
MS. BEECHER replied that Anchorage has reported similar
problems.
1:38:59 PM
SENATOR OLSON asked if other areas of the state were having
similar problems with the service areas.
MS. BEECHER replied that other districts were having issues of
the same sort.
SENATOR OLSON asked for the bill's effect on commercial road
users.
1:39:46 PM
MS. BEECHER said that if a property is not using the service
area as a sole or legally required access, they could petition
to be removed from the area.
CHAIR KOOKESH asked if there is any opposition to the bill.
MS. BEECHER replied that there was someone in the audience who
wanted to testify.
1:40:39 PM
SANDRA WILSON, representing herself, said that the bill is
unfair; it bases the amount people pay for their road services
on the worth of their houses. The bill was written for
Fairbanks, and it's not a solution for issues statewide. She
gave several examples of ways the borough might abuse or
improperly use the bill.
1:42:24 PM
SENATOR COWDERY asked for clarification of a point made by Ms.
Wilson.
MS. WILSON replied that tax amounts should be set, not based on
house worth.
SENATOR COWDERY asked for her thoughts on vacant lots.
MS. WILSON said that currently the tax is based on mill rates
for property value.
SENATOR COWDERY said that the public uses the road whether they
live there or not.
MS. WILSON replied that was correct.
1:43:29 PM
SENATOR WIELECHOWSKI asked if Ms. Wilson was questioning the
fairness of tax payments, and said that the bill doesn't address
that issue.
MS. WILSON agreed, but said that the bill doesn't make the issue
any fairer.
SENATOR WIELECHOWSKI said that there may be certain people using
an area without paying for it, and they should do so.
MS. WILSON said that everyone in the district should pay the
same amount.
SENATOR WIELECHOWSKI said that the bill has nothing to do with
that issue, and clarified that he was talking about whether
people should pay or not.
1:44:54 PM
SENATOR OLSON said that if there's only one driver then it
doesn't matter how many cars they own.
MS. WILSON explained that taxes should depend on how many people
in a home drive.
SENATOR OLSON said that that logic isn't common regarding
property taxes.
MS. WILSON said that a gallon of milk costs the same for
everyone.
SENATOR OLSON replied that the logic isn't the same.
MS. WILSON replied that all boroughs determine taxes in
different ways, and the bill isn't a solution for the whole
state.
1:46:42 PM
SENATOR WIELECHOWSKI asked which districts the bill doesn't work
for.
MS. WILSON replied that a gentleman from Kenai who testified in
a previous meeting pointed out how it would not work for his
area.
SENATOR WIELECHOWSKI said that in his understanding it worked
fine. He asked if there's a way the city of Fairbanks could fix
the issue without changing the bill.
MS. WILSON said that the issue needs to be addressed locally.
SENATOR WIELECHOWSKI asked how that could be done.
MS. WILSON replied that a local ordinance could be used.
SENATOR WIELECHOWSKI pointed out that the issue is governed by
state law.
MS. WILSON said that road service methods change for each
borough.
1:47:56 PM
SENATOR WIELECHOWSKI said that a local solution would be
preferable, but it appears that state law does not allow for
that.
SENATOR COWDERY said that state law was in place when the
original areas were annexed. He added that he sympathizes with
the Fairbanks people, and the issue is local.
SENATOR OLSON asked for clarification on the issue.
1:49:11 PM
SENATOR WIELECHOWSKI repeated that a local solution would be
ideal, but he's not convinced there is one available.
CHAIR KOOKESH said that there was a representative from the
Fairbanks North Star borough available for questions.
1:49:51 PM
RENEE BROKER, attorney for the Fairbanks North Star borough,
clarified that the bill imposes a fair standard making property
owners eligible for movement into or out of a service area based
on road use. The bill is fully supported by Fairbanks service
areas because a property should belong to the service area in
which the owner drives. The legislation restores constitutional
rights for altering service boundaries logically, and the bill
is following state law. The amount of tax paid for different-
sized families is not an issue that can be fixed in this bill.
The borough worked with the municipality of Anchorage on the
bill because of similar problems in that area. The problem is
not only urban.
1:54:27 PM
SENATOR WIELECHOWSKI said that there had been testimony that the
issue should be resolved at a local level, and asked if that was
possible.
MS. BROKER replied that it absolutely is not, and gave an
example of why.
1:55:20 PM
SENATOR COWDERY asked if road service areas were changed within
statute.
MS. BROKER replied that was correct.
1:55:57 PM
TAMMY WILSON, representing herself, said that the issue could be
taken care of locally; when subdivisions are created they have
to be stringently planned. Before they're approved, they should
be dealt with in terms of road service areas. The issue isn't
one that should be solved in hindsight. She explained that she
lives on a private road in Fairbanks that's not maintained, yet
the city wants to put her into a road service area; she
explained the process she went through to try to not become part
of a service area, and how she should not have been included in
the road service area.
She added that most of the examples of affected areas were small
groups of houses; she has heard that a lot of the issue is
because gravel pits are springing up behind subdivisions. She
suggested adding a simple definition of private versus public
road to the bill.
2:00:53 PM
SENATOR WIELECHOWSKI said that he finally understood the issue,
and asked how the private road maintenance was funded.
MS. WILSON replied that they collect money door-to-door and
maintain the road themselves.
SENATOR WIELECHOWSKI said that he understood her concern, and
asked for clarification on the effects of the bill on her road.
MS. WILSON replied the bill shows that the borough doesn't even
understand what they should and should not include in road
service areas.
2:02:37 PM
SENATOR WIELECHOWSKI said that it seems that individual road
maintenance fees would go down if more people lived on the road
and paid the same amount of taxes.
MS. WILSON replied that everyone pays the same amount for road
maintenance. She added that the other point of the issue is that
there's no distinction between a private and public road in the
bill or anywhere in state law.
2:04:33 PM
ED MAHONEY, representing himself, said that he heard that his
language of concern was taken out of the bill, and if that was
the case he had no further problem with the bill. If it was not,
he would maintain his opposition.
CHAIR KOOKESH said that the committee would hold HB 185 [CSHB
185(CRA)] and SB 136.
SJR 7-OPPOSE CHANGES IN FED AVIATION LAWS
2:06:41 PM
CHAIR KOOKESH announced SJR 7 to be under consideration.
2:07:10 PM
SENATOR COWDERY made a motion to adopt the proposed committee
substitute to SJR 7, labeled 25-LS0887\E, Version E, as the
working document of the committee. There being no objection,
the motion carried.
GINNY AUSTERMAN, staff to Senator Olson, sponsor of SJR 7, said
that it is in effect the same bill as HJR 18. Senator Olson
supports that bill and would like it to move forward.
SENATOR COWDERY asked if she would prefer to move the House
bill.
MS. AUSTERMAN replied yes.
SJR 7 was held in committee.
HJR 18 OPPOSE FED AVIATION FUEL TAX INCREASE
CHAIR KOOKESH announced the consideration of HJR 18. [CSHJR
18(TRA) was before the committee.]
2:08:04 PM
SONIA CHRISTENSEN, staff to Representative Johansen, sponsor of
HJR 18, said that the resolution is in opposition to the
provisions in the Federal Aviation Administration (FAA)'s Next
Generation Transportation System Reform Act.
2:08:39 PM
SENATOR COWDERY moved to adopt the proposed Senate committee
substitute to HJR 8, labeled 25-LS0830\L, as the working
document of the committee. There being no objection, version L
was before the committee.
MS. CHRISTIANSEN repeated her statement regarding the bill's
opposition to the FAA Next Generation Transportation System
Reform Act. Because of Alaska's geography the state depends
uniquely and heavily on aviation for transport of goods and
people. The proposed legislation will make this all much more
expensive; the FAA should not have the proposed power over
Alaska's airports.
2:10:25 PM
SENATOR COWDERY commented that the first version of the
resolution related to jet airplanes.
MS. CHRISTIANSEN explained that the changes were recommended by
Senator Olson's office.
2:11:10 PM
GINNY AUSTERMAN, staff to Senator Olson, sponsor of companion
bill SJR 7, explained that Senator Olson's office requested that
propeller-driven and rotor-equipped aircraft be specified in the
resolution.
2:11:35 PM
SENATOR WIELECHOWSKI asked if jet-driven aircraft are being
excluded from the resolution.
MS. AUSTERMAN replied that jet-driven aircraft are specifically
included in the federal legislation.
SENATOR WIELECHOWSKI asked if there is a reason jet-driven
aircraft are being excluded.
MS. AUSTERMAN said that she couldn't answer.
CHAIR KOOKESH said that there were testifiers available.
2:12:39 PM
DEE HANSON, Executive Director of the Alaska Airman's
Association, said that the association is opposed to the federal
act, and explained why airplanes are so vital to Alaskans in
terms of everyday life. The proposed federal act will mean that
flying will become too expensive for many people who rely on it
and will negatively affect flying-related businesses.
2:15:53 PM
SENATOR COWDERY asked if Ms. Hanson had the committee substitute
before her.
She replied that she didn't.
SENATOR COWDERY said that the sponsor could explain the
differences.
2:16:37 PM
MS. CHRISTIANSEN said that the CS adds specific language
addressing the types of planes affected.
MS. HANSON said that no increase in fuel tax is a good thing for
Alaska, no matter the sort of plane.
2:18:18 PM
ANDREW CEBULA, Executive Vice-President of Government Affairs
for the Aircraft Owners and Pilots Association (AOPA), said that
the association urges the passage of the resolution; the federal
proposal is not good for the state of Alaska and its pilots and
it will be expensive and will reduce state control of airports.
He added that the user fees for the current aviation system are
sufficient for covering its costs. Currently one doesn't have to
pay a fee to fly; the FAA wants to assess fees simply for
flying. It will put congress in a reduced position of authority
over FAA expenditures. He mentioned that the federal bill will
cut airport spending by a million dollars, and Alaskan airports
shouldn't have to compete with airports across the country for
funding. He commented that Alaska Representative Don Young does
not support the federal act either.
2:22:12 PM
SENATOR WILKEN asked if Mr. Cebula is not against the FAA
initiative, but simply the way it is funded.
MR. CEBULA replied that he is only opposed to the way the act is
funded. The association has worked closely with testing the
Capstone aviation program in Alaska. The Department of
Transportation inspector general's office agrees that the
improvements needed for the FAA system can be done using the
existing tax structure.
SENATOR WILKEN asked how the money for needed aviation programs
will be provided if the increases are not approved.
MR. CEBULA replied that the existing system of fuel taxes can
provide the needed revenue for such projects.
SENATOR WILKEN asked if existing taxes could simply be increased
rather than looking for new donors.
MR. CEBULA replied that the existing rates would provide needed
revenue, and explained where current aviation taxes come from.
2:25:11 PM
SENATOR WILKEN commented that Senator Stevens supported the
Capstone program which has been successful in Alaska, and asked
if Alaska is being selfish in not wanting to pay increased
taxes.
MR. CEBULA replied that Alaska has been a great leader in
improving technology, and said that the state has been willing
to help rather than selfish. Alaska has a unique aviation
system, and by passing the resolution the state is saying that
it has concerns that would be echoed by a lot of other states.
SENATOR WILKEN said that the state has benefited a lot from
federal money, and that may put it in a bind regarding refusal
to increase taxes.
2:27:43 PM
TOM GEORGE, Alaska representative to the Aircraft Owners and
Pilots Association, said that the issue is not a matter of
Alaskans not wanting to pay; it's just that they're taking issue
with the new process. He explained how fees would change after
the act if it were passed, and how they could expand
significantly.
He added that the Capstone program was important to Alaska
because the state has a higher accident rate than the rest of
the country, but service charges shouldn't be increased at the
expense of aviation safety. Part of the federal act is
establishing a board, and that would reduce congressional
oversight. He asked that the committee support the resolution.
2:31:30 PM
WILFRED RYAN, president of the Alaska Air Carriers Association,
said that the users of the Alaskan air system already pay their
fair share of fees; the fuel tax doesn't benefit small carriers
like those in Alaska. The association opposes the elements of
the federal act.
2:34:43 PM
SENATOR COWDERY said that he would like to hold HJR 18.
There being no further business to come before the committee,
Chair Kookesh adjourned the meeting at 2:34:56 PM.
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