Legislature(2025 - 2026)BUTROVICH 205
04/03/2025 01:30 PM Senate TRANSPORTATION
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB138 | |
| Presentation: Tribal Transportation Relations: a New Approach | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 138 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 3, 2025
1:40 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Löki Tobin, Vice Chair
Senator Jesse Kiehl
Senator Bert Stedman
Senator Mike Shower
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 138
"An Act relating to vehicle rental taxes; relating to the
issuance of subpoenas related to tax records; and providing for
an effective date."
- HEARD & HELD
PRESENTATION: TRIBAL TRANSPORTATION RELATIONS: A NEW APPROACH
- HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 138
SHORT TITLE: TAXATION: VEHICLE RENTALS, SUBPOENAS
SPONSOR(s): SENATOR(s) CLAMAN
03/19/25 (S) READ THE FIRST TIME - REFERRALS
03/19/25 (S) TRA, FIN
04/03/25 (S) TRA AT 1:30 PM BUTROVICH 205
WITNESS REGISTER
SENATOR MATT CLAMAN, District H
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 138.
PAULA BIRMINGHAM, Tax Enforcement Officer
Finance
Municipality of Anchorage
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 138.
CLAIRE HOLLAND LECLAIR, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation in support of SB
138.
BRANDON SPANOS, Deputy Director
Tax Division
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on SB 138.
SHANNON MCCARTHY, Communication Director
Commissioner's Office
Department of Transportation and Public Facilities (DOTPF)
Anchorage, Alaska
POSITION STATEMENT: Co-presented Tribal Transportation
Relations: A New Approach.
SARA LUCEY, Planning Manager
Northern Region
Department of Transportation and Public Facilities (DOTPF)
Fairbanks, Alaska
POSITION STATEMENT: Co-presented Tribal Transportation
Relations: A New Approach.
JUDY CHAPMAN, Deputy Director
Planning
Department of Transportation and Public Facilities (DOTPF)
Fairbanks, Alaska
POSITION STATEMENT: Co-presented Tribal Transportation
Relations: A New Approach.
ACTION NARRATIVE
1:40:17 PM
CHAIR BJORKMAN called the Senate Transportation Standing
Committee meeting to order at 1:40 p.m. Present at the call to
order were Senators Stedman, Kiehl, Shower (via teleconference)
and Chair Bjorkman. Senator Tobin arrived thereafter.
SB 138-TAXATION: VEHICLE RENTALS, SUBPOENAS
1:41:13 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
138 "An Act relating to vehicle rental taxes; relating to the
issuance of subpoenas related to tax records; and providing for
an effective date."
1:41:30 PM
SENATOR MATT CLAMAN, District H, Alaska State Legislature,
Juneau, Alaska, Sponsor of SB 138, read from the following
introductory statement:
[Original punctuation provided.]
SB 138: Matt STRA Opening Remarks
Thank you, Mr. Chair and members of the committee. For
the record this is Senator Matt Claman and I represent
District H. Thank you for hearing Senate Bill 138.
Over the past several years, the use of vehicle rental
platforms, such as Turo and Getaround, has greatly
increased. These companies offer an easy way for
Alaskans to rent out their cars directly, often to
supplement their income. They are already subject to
the 10 percent state vehicle rental tax, but many of
them do not know how to pay the tax, or even that they
owe it. As it stands, there is no easy way for
Alaskans using these platforms to comply with the
existing state vehicle rental tax.
I recently met a couple from West Anchorage. Every
summer, they buy 5 late-model used cars. They rent
their cars on Turo for the entire tourist season, with
90 percent of the days in-use. They sell the cars at
the end of tourist season and do it again the next
year. This couple did not know about the state vehicle
rental tax. They were aware that Turo collects the
Anchorage rental tax. Asking them to separately
collect the state tax from each renter would be
unreasonable. The couple expressed to me that they
would be very pleased if Turo collected the tax on
their behalf.
Senate Bill 138 requires vehicle rental platforms like
Turo to collect the existing state vehicle rental tax
and remit the tax to the Department of Revenue.
1:43:57 PM
SENATOR CLAMAN continued to read from his opening remarks:
[Original punctuation provided.]
Under existing law, Turo is already required to
invoice for this tax. AS 43.52.050(b) states that "the
tax shall be stated as a separate item on the lease or
rental contract or other document invoicing payment."
Because vehicle rental platform companies prepare the
invoices for their renters, they have a duty to
collect and remit the tax to the state. Turo collects
all fees for the rental and the vehicle owner gets
paid last. Last year, we went onto the Turo website
and reviewed rental charges in all 50 states. We
learned that Turo already collects state and local
taxes on behalf of owners in at least 42 other states
and many more cities and counties.
Additionally, Senate Bill 138 lowers the vehicle
rental tax rate from 10 percent to 8 percent for
vehicle rental platforms. The tax remains at 10
percent for traditional rental operations. We
recognize the governor vetoed the same bill in
September.
Of particular importance, the bill eliminates the
window for the Department of Revenue to retroactively
collect taxes. With passage of this bill, vehicle
platform owners who were not previously collecting the
tax will be protected from back taxes.
In 2020, the Municipality of Anchorage adopted similar
legislation requiring vehicle rental platforms to
collect and remit the city's flat 8 percent vehicle
rental tax. Discounting the impacts of Covid-19 on
rentals in 2020, the vehicle tax revenue to the
Municipality of Anchorage has increased substantially
in the years since the adoption of that ordinance. I
will note that we have invited testimony from
Anchorage Municipality that can speak more to that.
1:46:01 PM
SENATOR CLAMAN continued to read from his opening remarks:
[Original punctuation provided.]
Finally, the Department of Revenue deposits these
funds in the vehicle rental tax account in the general
fund. Historically, the legislature has appropriated
the money in the vehicle rental tax account to the
Department of Transportation and to State Parks. AS
43.52.080(c) states: "The Legislature may appropriate
the actual balance of the vehicle rental tax account
for tourism development and marketing. This section is
not intended to create a dedicated fund."
It makes good sense to require collection of this tax
and ensure that the folks who rent cars to drive on
Alaska's roads and enjoy our parks also help maintain
those services.
1:47:39 PM
SENATOR CLAMAN noted the Governor's previous concern that this
change would place a burden on a startup industry. He shared his
belief that Turo is the primary rental company used by younger
generations and pointed out that there are hundreds of Turo
rentals available in a given location (e.g. Anchorage). He
opined that Turo does not qualify as a small business or a
startup industry; rather, it is an important part of the rental
industry in the US.
1:47:52 PM
SENATOR STEDMAN asked whether the state is collecting taxes on
Turo rentals.
1:48:26 PM
SENATOR CLAMAN differed the question to the Department of Law
(DOL) and/or the Department of Revenue (DOR). He shared his
understanding that DOR has the authority to issue regulations to
ensure that taxes are collected.
1:49:26 PM
SENATOR STEDMAN shared his understanding that the Constitution
of the State of Alaska requires DOR to implement and collect
taxes. He questioned how DOR can pick and choose which tax
collection to enforce.
1:49:51 PM
SENATOR CLAMAN replied that he shares this frustration. He said
this is a question for DOL.
1:50:01 PM
SENATOR KIEHL shared a personal anecdote and asked how far back
in time DOR could go to collect taxes owed.
1:50:37 PM
SENATOR CLAMAN shared his understanding that the statute of
limitations would likely be two years.
1:51:04 PM
SENATOR KIEHL asked for clarification.
1:51:11 PM
SENATOR CLAMAN clarified that SB 138 would prohibit the
collection of back taxes.
1:51:28 PM
SENATOR KIEHL said that currently, car rental taxes are ten
percent. He asked why SB 138 introduces a differential rate that
is based on business model.
1:51:51 PM
SENATOR CLAMAN replied that various interests were involved in
crafting SB 138. These interests are no longer fully aligned,
and the differential rate was a compromise. He noted that SB 138
is the same as the legislation that passed in 2024. He said that
there is a similar House bill and explained that the previous
legislation was used as a starting point.
1:52:40 PM
SENATOR KIEHL questioned why Alaska should have different rates
for these business models. He suggested that, with this
structure, one business model would benefit over the other.
1:53:07 PM
SENATOR CLAMAN agreed. He opined that all rental companies
should pay the same tax rate.
1:53:37 PM
SENATOR STEDMAN asked about the administration's stance on SB
138.
1:53:58 PM
SENATOR CLAMAN said that the administration has not taken a
position on SB 138.
1:54:10 PM
CHAIR BJORKMAN returned to the question of DOR's responsibility
to collect taxes. He surmised that any Alaskan could take this
issue to court and demand DOR collect the appropriate tax -
without any legislation to support that action. He asked for
confirmation of this understanding.
1:54:47 PM
SENATOR CLAMAN shared his belief that there is sound basis for
any Alaskan to bring a lawsuit on this issue.
1:55:02 PM
CHAIR BJORKMAN expressed fascination at this possibility.
1:55:09 PM
SENATOR KIEHL asked for more information about how the flat rate
tax is collected in the Municipality of Anchorage.
1:55:44 PM
CHAIR BJORKMAN announced invited testimony on SB 138.
1:56:02 PM
PAULA BIRMINGHAM, Tax Enforcement Officer, Finance, Municipality
of Anchorage, Anchorage, Alaska, stated that the Turo tax
revenue amount is confidential. She said that tax rate is 8
percent. This applies to all rental agencies and includes the
hosting platform. The municipality did not consider a separate
rate for the hosting platforms. The municipality did not pursue
Turo back taxes, as this was found to be too burdensome. She
stated that administering a rental vehicle tax with a hosting
platform is far easier than administering the tax to individual
owners/businesses. In this way, the hosting platform saves the
municipality time and money. Hosting platforms (e.g. Turo) were
added to the municipal code in October 2020. Turo registered
with the municipality in early 2021. The municipality did pursue
taxes for the time between the change in October 2020 and when
Turo registered in 2021. She noted that there were different
interpretations of how to apply the code. The municipality holds
Turo accountable to collect and remit the taxes from all
individuals who rent a vehicle through the platform.
1:59:53 PM
SENATOR KIEHL asked whether the liability for the tax lies with
the provider of the vehicle or the party responsible for
billing.
2:00:16 PM
MS. BIRMINGHAM replied that the liability for the rental vehicle
tax lies with the hosting platform or the rental vehicle agency.
2:00:26 PM
SENATOR KIEHL acknowledged that the tax information is
confidential and asked how many hosting platforms are submitting
reports.
2:00:43 PM
MS. BIRMINGHAM said she did not know.
2:00:48 PM
SENATOR KIEHL noted that, while Turo is the biggest player,
there are many others. He pointed out that Anchorage does not
have a sales tax and asked whether a local business license is
required - or whether only a state business license is required.
2:01:23 PM
SENATOR TOBIN joined the meeting.
MS. BIRMINGHAM said that no municipal or city business license
is required. The only requirement is a current state business
license.
2:01:50 PM
SENATOR KIEHL asked whether Anchorage has differential local
fees added to vehicle registrations for personal versus business
vehicles.
2:02:18 PM
MS. BIRMINGHAM expressed uncertainty and asked to hear the
question again.
SENATOR KIEHL explained that many municipalities add local fees
to the state's vehicle registration fees. He noted that in some
municipalities, the fee is more. He asked if this is the case in
Anchorage.
MS. BIRMINGHAM said she is unsure about businesses; however, she
said the municipality does collect some of the vehicle
registration fees. She said that this information is listed on
the renewal notice.
SENATOR KIEHL said that many municipalities provide an exemption
for a specified dollar value of business personal property. He
asked if, in the Municipality of Anchorage, there is a threshold
after which a business personal property tax would go into
effect.
MS. BIRMINGHAM replied yes. She said the business personal
property tax goes into effect when the value is $20,000 or more.
2:04:47 PM
At ease.
2:05:19 PM
CHAIR BJORKMAN reconvened the meeting.
2:05:37 PM
CLAIRE HOLLAND LECLAIR, representing self, Anchorage, Alaska,
testified by invitation in support of SB 138. She said she
previously served on the Chugach State Park advisory board and
explained that vehicle rental tax receipts are partially
allocated to the state parks operating budget. (The receipts are
split between DOTPF and the state parks.) She said that in the
current fiscal year, vehicle rental tax receipts make up 50
percent of the state parks operating budget. She pointed out
that the law requires vehicle rental companies to invoice the
tax; however, Turo has not complied. She stated that she does
not support differential (i.e. lower) taxes for platform
companies like Turo. She requested that this be changed to make
the tax payment 10 percent for all rental car companies.
2:07:29 PM
SENATOR TOBIN asked for more information about Ms. LeClair's
Alaska State Parks affiliation.
2:07:44 PM
MS. LE CLAIRE replied that she is representing herself; however,
she was previously employed by Alaska State Parks as a seasonal
ranger and as deputy director.
2:08:29 PM
SENATOR KIEHL asked whether there is an estimate for the
uncollected tax amounts.
2:08:47 PM
SENATOR CLAMAN said Department of Revenue (DOR) has consistently
reported that a reasonable amount would be collected; however,
the exact number is unknown. He added that DOR has attempted to
collect the tax from the Turo hosts (i.e. vehicle owners) but
shared his understanding that DOR is no longer doing this.
2:09:35 PM
SENATOR KIEHL commented that this is not a reasonable
expectation to have of a small business owner. He asked if DOR
is available for questions.
2:10:28 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), Anchorage, Alaska, said that DOR does not have a
revenue estimate, and the DOR fiscal note is indeterminate. DOR
does not have specific date on platform collections. He
confirmed that DOR has sent collection letters to vehicle owner.
He stated that those numbers have been very low, as it is
difficult to identify who is using platforms like Turo. He said
that DOR previously subpoenaed Turo for a client list (to send
vehicle owners a notice that tax collection is required) and
TURO refused to comply, and this issue went to court. The court
ruled that DOR did not have authority to enforce the subpoena
language outside of Alaska. He explained that SB 138 contains
language that would allow DOR to enforce the subpoenaed language
outside of the state. He emphasized that it is difficult to
enforce tax collection without the names of those utilizing the
platform service (and while a business license is required, not
everyone complies).
2:12:47 PM
SENATOR KIEHL recalled a change in Internal Revenue Service
(IRS) rules that would enable DOR to access information on those
whose revenue is more than $600 or $700. He asked if this is
correct.
2:13:17 PM
MR. SPANOS replied that this is correct; however, it has not yet
gone into effect. He noted that the threshold was previously
$20,000 and was lowered to $600. He provided a brief overview of
this change and how it would be applied. He stated that, if DOR
has the information identifying individuals who are using
platforms and renting vehicles, DOR is then obligated to collect
those taxes. When DOR receives the 1099K information from IRS,
it will begin to collect the associated taxes. The IRS is behind
on issuing this information to the states due to the Covid-19
pandemic, though it is forthcoming. He briefly described the
process once the data is received by IRS. However, if the
individual renting the vehicle does not know the tax is due (and
therefore doesn't collect it from the renter), they will have to
pay the tax themselves.
2:15:42 PM
SENATOR KIEHL opined that this is an issue worth addressing, as
Alaskans who have potentially not been able to collect the tax
would then be required to pay the state.
2:16:25 PM
SENATOR STEDMAN asked whether the administration supports SB
138.
2:16:38 PM
MR. SPANOS replied that the administration has not taken a
position on SB 138.
2:16:51 PM
SENATOR STEDMAN requested a financial report from DOR to better
understand how much revenue was collected. He opined that this
information would be beneficial for the Senate Finance Committee
as members work to balance the budget.
2:17:22 PM
CHAIR BJORKMAN requested confirmation of his understanding that
the administration vetoed a previous version of this
legislation. This effectively vetoed DOR's ability to collect a
tax (that is already due under state law) from platform
companies like Turo. This means DOR must collect the taxes from
individual Alaskans who use platforms like Turo to rent their
vehicles.
2:18:20 PM
MR. SPANOS said that DOR is not actively seeking collection from
individuals using platforms like Turo; however, the obligation
exists. When DOR is provided with identifying information, it
must take action to collect those taxes. He added that the tax
division seeks to treat all taxpayers the same; therefore, taxes
will not be collected on an individual basis (e.g. when the
division is made aware of one person who is renting their
vehicle out on Turo). Receiving the 1099K data from IRS will
allow DOR to begin collecting taxes from those individuals (and
potentially also collect back taxes).
2:19:37 PM
CHAIR BJORKMAN questioned the reasoning behind DOR's decision to
wait until the information is received from IRS. He pointed out
that, by this logic, one could argue that no laws should be
enforced since law enforcement cannot possibly catch all
individuals who break the law.
2:19:58 PM
MR. SPANOS replied that he does not have a response.
2:20:06 PM
CHAIR BJORKMAN held SB 138 in committee.
2:20:14 PM
At ease.
^PRESENTATION: TRIBAL TRANSPORTATION RELATIONS: A NEW APPROACH
PRESENTATION: TRIBAL TRANSPORTATION RELATIONS: A NEW APPROACH
2:22:24 PM
CHAIR BJORKMAN reconvened the meeting and announced the
presentation, Tribal Transportation Relations: A New Approach by
Department of Transportation and Public Facilities (DOTPF).
2:23:02 PM
SHANNON MCCARTHY, Communication Director, Commissioner's Office,
Department of Transportation and Public Facilities (DOTPF),
Anchorage, Alaska, gave the presentation, Tribal Transportation
Relations: A New Approach.
2:23:31 PM
MS. MCCATHY advanced to slide 2 and discussed how the unique
features of Alaska's communities (e.g. geography, climate and
cultural differences) requires an individual approach:
[Original punctuation provided.]
Alaska has Unique Communities
• 229 federally recognized Tribes
• 148 incorporated cities
• 19 organized boroughs
• 100s unincorporated communities
• 365 million acres of land
2:24:05 PM
MS. MCCATHY advanced to slide 3 and discussed Department of
Transportation and Public Facilities (DOTPF) vision:
[Original punctuation provided.]
Alaska's Vision
Strengthening Workforce and Partnerships to Shape
Alaska's Transportation Future
Community Focused
Moving forward through meaningful engagement, strong
partnerships, workforce development, and community-
driven infrastructure
Partnership Playbook
Following successes through updating policy, toolkits,
and training to strengthen Alaska's engagement
framework
Training and Development
Driving Alaska's future with workforce development,
skills training, and employment integration
opportunities
Alaska's Future
Community-Led Projects: Shaping Alaska's long-term
policy, sustainability, and strategic planning from
community driven perspectives
2:25:01 PM
SENATOR TOBIN asked whether anyone on the planning team is
trained in asset-based community development. She also asked how
many of the training resources are translated into the
community's mother tongue.
2:25:33 PM
MS. MCCATHY asked for clarification of what is meant by "asset-
based community development."
2:25:47 PM
SENATOR TOBIN explained that asset-based community development
is a paradigm that works with communities, focuses on the
community's successes rather than detriments, and is led by the
community's needs and preferences.
2:26:11 PM
MS. MCCATHY said this approach is what DOTPF aspires to. She
emphasized the importance of listening to communities in order
to better understand their unique needs. With respect to
languages, she said that DOTPF is using more translation
resources than ever before and has translated Statewide
Transportation improvement Plan (STIP) and STIP Amendment
notices.
2:27:15 PM
SENATOR TOBIN asked for more information about the program DOTPF
is using to translate documents. She noted that the Federal
Emergency Management Agency (FEMA) has been known to use
artificial intelligence to translate documents. She shared an
example in which FEMA used AI to translate documents into
Inupiaq; however, the documents were gibberish.
2:27:34 PM
MS. MCCATHY answered that DOTPF is working closely with the
Civil Rights Division to ensure that all translators are
qualified. DOTPF has translated documents into Yupik and
Spanish.
2:27:54 PM
MS. MCCATHY advanced to slide 4 and discussed DOTPF's move from
a tribal liaison to a 5-member (and growing) tribal team:
[Original punctuation provided.]
Move Toward a Tribal Team
Alaska DOTPF recognizes the deep cultural heritage and
unique needs of Alaska Native peoples and
organizations.
The DOTPF Tribal Relations Team was established to:
• Strengthen collaboration
• Foster mutual respect
• Build lasting relationships
• Share collaboration tools internally and
externally
2:28:49 PM
MS. MCCATHY advanced to slide 5:
[Original punctuation provided.]
WHY?
One Alaska: We all live in Alaska and want to see the
best possible outcome for all communities, for all
Alaskans.
We want to consult early and often: Invite Tribal
leaders or elders to meet and discuss projects, plans,
etc. so that we're meeting the community needs
Avoid a "one-size-fits-all" approach: We acknowledge
the diversity among Alaska Native cultures.
2:29:36 PM
MS. MCCATHY advanced to slide 6 and discussed consultation and
engagement:
[Original punctuation provided.]
Consultation and Engagement
DOT Order 5301.1A: Formally sets the stage for DOT&PF
consultation with Indian Tribes and Alaska Native
corporations
• All voices should be heard
• Early Involvement
• Specific Responsibilities
• Appropriate Styles of Communication
• Focus on Building Long-Term Relationships
2:30:33 PM
MS. MCCATHY advanced to slide 7 and discussed training for DOTPF
staff:
[Original punctuation provided.]
Training for DOTPF staff
• Background and Legal Framework Training
• Cross Cultural Sensitivity Training
• Tools and Best Practices for Staff
2:31:20 PM
MS. MCCATHY advanced to slide 8, which contains tribal relations
information from the DOTPF website. She briefly discussed tools
for collaboration and described recent changes to the DOTPF
tribal relations webpage.
2:32:32 PM
MS. MCCATHY advanced to slide 9 and discussed tools for
collaboration:
[Original punctuation provided.]
Tools for tribes and DOTPF Collaboration
• Memoranda of Understanding/Agreements (MOA/MOU's)
• Project coordination
• Right-of-way consultations
• Joint planning and design
• Maintenance partnerships
•
• Fund Transfers Pursuant 23 USC 202(a)(9)
• Workforce Development and Funding
• Regional Planning Organizations
• We are available!
2:33:17 PM
SARA LUCEY, Planning Manager, Northern Region, Department of
Transportation and Public Facilities (DOTPF), Fairbanks, Alaska,
advanced to slide 10 and discussed current and ongoing efforts.
Slide 10 contains a map and website information for the
Statewide Transportation Improvement Program (STIP), Statewide
Functional Classification Update (SFCU), and Statewide Long
Range Transportation Plan (SLRTP). She briefly discussed each
with respect to tribal engagement. STIP 2024-2027 has a targeted
focus on tribal engagement; DOTPF has sent notifications and
solicitations for consultation for each amendment and utilized
translation services. DOTPF has conducted six SFCU consultations
with tribes around the state; these consultations have led to
discussions about local transportation needs. The goal for SLRTP
outreach is "early and often." The stakeholder transportation
advisory committee will include tribal representation. She
briefly discussed the Alaska Moves 2050 Plan effort, which
includes statewide tribal outreach. In-person meetings will
include both urban and rural communities.
2:35:58 PM
SENATOR TOBIN noted that one STIP-related tribal consultation
issue was resolved, with two issues remaining. She asked for and
update on these issues.
2:36:17 PM
MS. LUCEY differed the question.
2:36:24 PM
MS. MCCATHY said DOTPF has been working closely with the Federal
Highway Administration (FHA) on these issues and expressed
confidence that each was met.
2:36:32 PM
SENATOR TOBIN asked if DOTPF has received confirmation that
those needs have been met.
MS. MCCATHY said DOTPF has met with FHA weekly for several
weeks. She said DOTPF would receive confirmation prior to
submitting the final document for FHA approval.
2:36:48 PM
MS. LUCEY advanced to slide 11 and discussed coordination calls:
[Original punctuation provided.]
DOTPF and Tribal Coordination Calls
GOALS
• Collaboration
• Establish relationships
• Tribal and DOTPF updates on transportation items
• Mutual opportunity to relay issues and concerns
• Share upcoming funding opportunities
• Provide foundation for partnership
Mat-Su Meetings:
• Bi-monthly meetings online for one hour, with one
meeting a year in-person
• Six tribal entities represented, usually 20-30
people in attendance including department staff
• Contact: Kristina Huling,
[email protected]
Interior Meetings:
• Quarterly meetings online for one hour
• Various tribal entities represented, usually 15
people in attendance including department staff
• Contact: Sara Lucey, [email protected]
MS. LUCEY said that the South Coast region is meeting regularly
with area tribes to discuss transportation needs in those areas.
She mentioned community transportation workshops and said that
these have been beneficial.
2:39:47 PM
SENATOR STEDMAN asked for information about Kake and Prince of
Whales Island (POW), Yakutat, and Sitka communities.
2:41:09 PM
MS. LUCEY replied that the planning team is divided among state
regions due to its large size. She said the South Coast staff
would have this information and offered to provide additional
details.
2:41:45 PM
SENATOR STEDMAN said he would be interested to meet with DOTPF
and discuss the transportation needs in Southeast. He commented
that the legislature seeks ways to work with tribes (who may
have funding sources but lack equipment and/or expertise),
particularly when state funding is low.
2:42:40 PM
JUDY CHAPMAN, Deputy Director, Planning, Department of
Transportation and Public Facilities (DOTPF), Fairbanks, Alaska,
said she has met with the Kake tribal council and the Director
of the Alaska Marine Highway System (AMHS) regarding Kake ferry
service. She has also met with Sitka tribe to discuss a
potential connection to Baranof Warm Springs. These
conversations are ongoing. She stated that additional
information could be provided by the South Coast region office.
2:43:30 PM
SENATOR STEDMAN stated that he responded to the long-range plan
in writing. He mentioned a proposed tunnel through Baranof
Island and stated that DOTPF has never reached out to discuss
this proposal. He asserted that this tunnel would not be
approved or built and was never seriously considered. He pointed
to the community's infrastructure needs and expressed concern
that DOTPF creates a sense of false hope for projects that will
never be built. He encouraged DOTPF to keep conversations
focused on realistic projects that are likely to be built,
rather than creating false hope within the community. He
emphasized that Kake is in dire need of ferry service and said
the legislature has been working with DOTPF to build the
necessary infrastructure there. He opined that these are
legitimate possibilities, unlike the proposed Baranof Island
tunnel. He stated that the best way to create greater access to
Sitka is to enhance AMHS service. He offered further examples
for projects on POW. He reiterated that DOTPF should focus on
realistic projects and stated that, due to his role as co-chair
of the Senate Finance Committee, he must explain to constituents
that those projects are never going to happen.
2:46:15 PM
MS. CHAPMAN said DOTPF is initiating the Southeast Alaska
Transportation Plan, which will dovetail with the AMHS long-
range plan in an effort to increase AMHS efficiency. She
expressed appreciation for the reminder that projects and
communications should remain realistic.
2:46:51 PM
MS. LUCEY advanced to slide 12 and discussed grant
opportunities:
[Original punctuation provided.]
Grant Opportunities
Discretionary Grants have brought many opportunities
to the table
Success Stories:
• Elliott Highway Corridor Study
• Talkeetna Spur Culvert grants with Knik Tribe
• Glenn Highway Separated Pathway Study with
Chickaloon
2:48:18 PM
SENATOR TOBIN asked for additional information on the Glenn
Highway Separated Pathway Study and whether this would create a
separate bike path.
2:48:41 PM
MS. LUCEY shared her understanding that this study specifically
considers the creation of a separate bike path but would likely
also consider alternatives.
2:48:56 PM
MS. LUCEY advanced to slide 13 and discussed the funding
opportunities hub:
[Original punctuation provided.]
Alaska Transportation Funding Opportunities Hub
Entities can Submit and Manage their own project
concepts.
The Hub provides Alaskan communities an opportunity
to:
• Submit project ideas for consideration by DOTPF
and our partners
• Work with our planners to improve project ideas
and project readiness and to apply for funding
2:50:04 PM
SENATOR STEDMAN commented on DOTPF's long-range planning. He
noted AMHS efforts to restructure. He stated that AMHS's planned
projects are realistic and deliverable and suggested that DOTPF
focus on those. This would provide a sense of hope without
turning to projects that will never be built. He opined that
sometimes, saying the difficult truth is best. He emphasized the
need for deliverables.
2:51:52 PM
MS. LUCEY expressed appreciation for this suggestion. She
advanced to slide 14 and discussed the Tribal Transportation
Bridge Facility Program:
[Original punctuation provided.]
Tribal Transportation Bridge Facility Program
• Manley, Hot Springs Slough Bridge Replacement
Construction, FY2028
• The facility needs to be in the tribal inventory
MS. LUCEY provided examples to illustrate how this program would
benefit tribes across the state.
2:53:52 PM
SENATOR STEDMAN indicated that he has not previously heard about
the bridge facility program. He suggested that DOTPF meet with
Sitka Tribe to discuss the Katlian River bridge. He stated that
the Katlian River bridge is a deliverable project that is a
fraction of the size of the Manley, Hot Springs Slough Bridge
Replacement project. He shared his understanding that the
communities in Southeast Alaska are unaware of the federal
bridge funding and stated that providing this information would
help to build needed infrastructure. He said funding for bridges
is an issue with DOTPF.
2:55:03 PM
SENATOR KIEHL stated that he was aware of the Tribal
Transportation Program but was not aware of the bridge program.
He asked about coordination with Alaska Native Corporations
(ANC) and whether DOTPF is pursuing these conversations.
2:55:57 PM
MS. MCCATHY said the process is iterative and outreach continues
to expand. She said that DOTPF intends to reach out to ANCs in
the future.
2:56:30 PM
SENATOR KIEHL asked for a timeframe.
2:56:33 PM
MS. MCCARTY replied that DOTPF would reach out to ANCs within
the year.
CHAIR BJORKMAN commented that bridges are a statewide concern
and surmised that there is a lot of opportunity to find
additional projects to incorporate into the program. He said
there is a potential project in Ninilchik.
2:57:24 PM
MS. LUCEY noted that, in order to qualify for the program,
bridges must be in the tribe's National Transportation Inventory
or Asset Inventory. She said conversations between DOTPF and
tribes begin with ensuring that projects of interest meet this
criterion.
2:57:59 PM
SENATOR STEDMAN expressed interest in a map showing tribal roads
in the Southeast region.
2:58:40 PM
MS. LUCEY shared her understanding that data on tribal roads is
not available to the public and DOTPF must work with the tribes
to identify roads. She said it is an ongoing, collaborative
effort.
2:59:00 PM
SENATOR STEDMAN acknowledged the difficulty and suggested a
rough map could be created by interested individuals utilizing
online map data. He reiterated that this data would be helpful.
2:59:31 PM
MS. LUCEY advanced to slide 15 and discussed 202(a)(9) fund
transfers:
[Original punctuation provided.]
202(a)(9) Fund Transfers
• Tanana Dust Control (FY2016)
• Barrow Arctic Research Center Road (FY2017)
• Kiana Community Wide Roadway and Drainage
(FY2023)
• Wales Community Road Improvements (FY2025)
• Wales to Tin City Road Reconstruction (FY2025)
• Craig to Klawock Bike and Pedestrian Path
(FY2026)
3:00:21 PM
SENATOR KIEHL asked whether there is more flexibility with fund
transfers of this type compared to the transfer of
responsibilities agreement (TORA) that DOTPF sometimes uses.
3:00:39 PM
MS. CHAPMAN briefly explained when TORA would be used and
offered examples. She explained how 229(a)(9) fund transfers
differ from TORA and said the 229(a)(9) fund transfers are under
a different (less burdensome) authority.
3:01:45 PM
MS. CHAPMAN advanced to slide 16 and discussed Regional Planning
Organizations (RPO):
[Original punctuation provided.]
Regional Planning Organizations
Local Control and Collaboration
Communities shape their own transportation priorities
Improved Access to Funding
Better positioned to apply for federal and state
grants
More Equitable Planning
Ensures rural and tribal voices are included in
statewide planning
Stronger Regional Partnerships
Encourages collaboration between neighboring
communities
Tailored Solutions
Plans reflect Alaska's unique geography, climate, and
access needs
MS. CHAPMAN said that there are 3 RPOs. She briefly discussed
the Copper River Valley RPO, which is the most active. She noted
that this is a great fit, as it is un an unorganized borough
where tribes provide the only form of leadership. She briefly
described the RPO board structure and function. She noted that
several tribes have expressed interest in forming RPOs.
3:04:00 PM
MS. CHAPMAN advanced to slide 17 and discussed the Thriving
Communities Program:
[Original punctuation provided.]
Thriving Communities Program Regional Capacity
Builder
• Project to provide assistance to 18 disadvantaged
communities and regions in Alaska
• No capital component, but planning/design
assistance is eligible
• Some of the grant to be distributed directly to
sub-recipients
• Partnering with Alaska Municipal League to
deliver this project
[Slide 17 contains a table listing cities and
qualifying vulnerabilities.]
3:04:59 PM
CHAIR BJORKMAN thanked the presenters.
3:06:36 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Transportation Standing
Committee meeting at 3:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 138 Version A.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| SB 138 Sponsor Statement Version A 3.25.2025.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| SB 138 Sectional Analysis Version A 3.25.2025.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| SB138-DOR-TAX-3-28-25.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| SB 138 Supporting document - SSPCAB Letter.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| SB 138 Supporting Document - Anchorage AO 2020-055.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| DOTPF Tribal Team 04032025.pdf |
STRA 4/3/2025 1:30:00 PM |
DOT&PF Tribal Coordination |
| Collections of vehicle rental taxes.pdf |
STRA 4/3/2025 1:30:00 PM |
SB 138 |
| 20250417 (S) Tran Committee 4-3-2025.pdf |
STRA 4/3/2025 1:30:00 PM |
DOT&PF Tribal Coordination |