Legislature(1993 - 1994)
01/27/1994 03:35 PM Senate TRA
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* first hearing in first committee of referral
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SENATE TRANSPORTATION COMMITTEE
January 27, 1994
3:35 p.m.
MEMBERS PRESENT
Senator Bert Sharp, Chair
Senator Randy Phillips, Vice Chair
Senator Tim Kelly
Senator Jay Kerttula
MEMBERS ABSENT
Senator Georgianna Lincoln
COMMITTEE CALENDAR
SENATE BILL NO. 256
"An Act increasing the tax on transfers and consumption of aviation
fuel."
PREVIOUS SENATE COMMITTEE ACTION
SB 256 - No previous senate committee action.
WITNESS REGISTER
Bruce A. Campbell, Commissioner
Department of Transportation & Public Facilities
3132 Channel Drive, Juneau, AK 99801-7898¶465-3901
POSITION STATEMENT: in favor of SB 256
Reed Stoops
Alaska Air Carriers Association
240 Main St., #600, Juneau, AK 99801¶463-3223
POSITION STATEMENT: in favor of SB 256
ACTION NARRATIVE
TAPE 94-1, SIDE A
Number 001
CHAIRMAN SHARP calls the meeting to order at 3:35 p.m.
Number 004
CHAIRMAN SHARP brings up SB 256 INCREASE AVIATION FUEL TAX as the
only order of business before the Senate Transportation Committee
today. The chairman calls the Commissioner of the Department of
Transportation & Public Facilities as the first witness.
Number 020
BRUCE A. CAMPBELL, Commissioner, Department of Transportation &
Public Facilities (DOT), states the department began developing SB
256 to help offset maintenance costs at rural airports. Originally
DOT simply instituted regulations to charge landing fees at rural
airports, but some air carriers took the department to court, and
the court declared that the regulations had been improperly
adopted. So the regulations were declared null and void.
Commissioner Campbell says he met with some of the air carriers in
Anchorage, and a compromise was reached in which the carriers
stated they would support a minor increase in the fuel tax over
reinstituting landing fees at rural airports. This is also
preferable to Commissioner Campbell because it is difficult to
collect fees at some of the small, rural airports.
Number 058
SENATOR RANDY PHILLIPS asks Commissioner Campbell why the air
carriers are opposed to landing fees.
Number 065
COMMISSIONER CAMPBELL replies that landing fees are difficult to
monitor and DOT would have to rely on the records kept by the air
carriers. The air carriers with regularly scheduled flights had a
fear that less regular carriers would not keep very good records of
flights; as a result, the regular carriers would end up paying more
than their fair share.
Number 071
SENATOR RANDY PHILLIPS asks Commissioner Campbell how much money
the landing fees would have generated.
Number 075
COMMISSIONER CAMPBELL responds that landing fees would have
generated about 1.4 to 1.5 million dollars, while the slight
increase in gas tax will generate about 1.7 million dollars. The
slightly higher figure for a gas tax takes into account inflation.
Number 080
SENATOR RANDY PHILLIPS comments he does not like taxes but he sure
likes fees.
Number 083
CHAIRMAN SHARP asks Senator Kelly if he recalls when landing fees
were disallowed by the courts last year and fees had to be refunded
to the carriers, so the legislature was asked to look at another
approach. Senator Kelly does not recall working on that. The
chairman calls the next witness.
Number 092
REED STOOPS, representing the Alaska Air Carriers Assn., states the
Alaska Air Carriers Assn. has approximately 120 members and
represents all the major carriers, most of the medium sized
carriers, and even some of the small carriers. The Alaska Air
Carriers Assn. supports SB 256. The association prefers an
increase in fuel tax as opposed to landing fees. An additional
reason the association supports an increase in fuel tax, other than
the reason previously stated by Commissioner Campbell, is that
there is a higher cost involved in collecting landing fees than
there is in collecting additional fuel taxes. This means there
will be a greater net amount of money available for maintenance of
airports if fuel taxes are increased, rather than imposing landing
fees. Mr. Stoops adds that the Alaska Air Carriers Assn. prefers
the draft committee substitute to the original bill.
Number 140
SENATOR KELLY asks if this increase in fuel taxes will totally do
away with landing fees at rural airports. Commissioner Campbell
replies it will only do away with landing fees at rural airports,
and does not do away with landing taxes at larger airports. It
will not have any effect on personnel, since the landing fees were
collected by existing personnel based in Anchorage. Senator Kelly
asks what the difference is between SB 256 and the committee
substitute.
Number 154
CHAIRMAN SHARP responds the main difference is on page 1, lines 7
through 9, and essentially says you can't have both landing fees
and increased fuel taxes.
Number 158
SENATOR KELLY moves the adoption of CSSB 256(TRA).
Number 161
SENATOR KERTTULA and SENATOR RANDY PHILLIPS state they are opposed
to SB 256, but will not oppose releasing it from committee.
Number 167
CHAIRMAN SHARP states CSSB 256(TRA) has been adopted.
Number 171
SENATOR KELLY asks CSSB 256(TRA) be moved from committee with
individual recommendations.
Number 174
CHAIRMAN SHARP, hearing no objection, discharges CSSB 256(TRA) from
the Senate Transportation Committee.
Number 180
CHAIRMAN SHARP adjourns the meeting at 3:46 p.m.
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