SB 115-MOTOR FUEL TAX; EV REG FEES  1:12:41 PM CHAIR STUTES announced that the first order of business would be CS FOR SENATE BILL NO. 115(FIN)(efd fld), "An Act relating to vehicle registration fees; and relating to the motor fuel tax." 1:13:21 PM CHAIR STUTES opened public testimony on CSSB 115(FIN)(efd fld). 1:13:46 PM WILLIAM HARRINGTON testified in opposition to SB 115. He said money raised by SB 115 would be inconsequential in the big picture and taking equal amounts from rich and poor was not equal representation or taxation. 1:16:23 PM JOE MICHEL, Alaska Trucking Association, informed the committee Alaska Trucking Association (ATA) has endorsed fuel tax in the past. He said ATA members support SB 115 in general but want assurance that the money collected would indeed be used for road maintenance. 1:17:38 PM KATHERINE WOOD testified in support of SB 115. She said looking for additional revenue sources was a better idea than "touching the corpus" of the Permanent Fund Dividend (PFD). She said Alaska's infrastructure is far behind the rest of the U.S. and state funding for transportation was limited. She added that transportation infrastructure underpins regional and local economies and is crucial for quality of life for all Alaskans, and the state capital budget for transportation infrastructure is "anemic at best." Federal highway infrastructure appears to be stable, she said, but with the federal highway trust fund depleted, the future is uncertain. She opined there should be a tax on electric vehicles (EVs) calculated by miles traveled, as opposed to a flat fee per year. 1:20:47 PM CHAIR STUTES closed public testimony on CSSB 115(FIN)(efd fld). 1:20:55 PM The committee took an at-ease from 1:20 p.m. until 1:21 p.m. 1:21:00 PM REPRESENTATIVE EDGMON moved to adopt Amendment 1, labeled 31- LS0895\K.A.7, Nauman, 3/12/20, which read as follows: Page 3, lines 22 - 30: Delete all material and insert:  "* Sec. 5. AS 43.40.030(a) is amended to read: (a) Except as specified in AS 43.40.010(j), a person who uses motor fuel to operate (1) an internal combustion engine is entitled to a motor fuel tax refund of 12 [SIX] cents a gallon if (A) [(1)] the tax on the motor fuel has been paid; (B) [(2)] the motor fuel is not aviation fuel, or motor fuel used in or on watercraft; and (C) [(3)] the internal combustion engine is not used in or in conjunction with a motor vehicle licensed to be operated on public ways; or  (2) a watercraft used for commercial  fishing is entitled to a motor fuel tax refund of five  cents a gallon if the tax on the motor fuel has been  paid." 1:21:54 PM CHAIR STUTES objected, for the purpose of discussion. 1:22:02 PM SARA PERMAN, Staff, Representative Louise Stutes, Alaska State Legislature, presented Amendment 1, which updated Section 5 of CSSB 115(FIN)(efd fld). Amendment 1 would remove the additional $.05 tax for commercial fishing vessels. All other watercraft including cruise ships and tour boats would still be required to pay the additional tax, she added. 1:23:18 PM CHAIR STUTES moved to adopt Conceptual Amendment 1 to Amendment 1, to insert the following language between the words "commercial fishing" and "is entitled" in the proposed language of paragraph (2): "that has a valid license issued under 16.05.490 or 16.05.530". 1:24:44 PM REPRESENTATIVE DRUMMOND objected, for the purpose of discussion, and asked whether the license applied only to Alaska licenses. 1:25:20 PM CHAIR STUTES answered that the license applied to Commercial Fisheries Entry Commission (CFEC)-registered vessels and that a vessel could be from outside Alaska if it had a valid CFEC permit to fish in Alaska. 1:25:35 PM REPRESENTATIVE STORY said she understood the reason for the amendment, especially due to the Chinese tariffs. 1:25:52 PM REPRESENTATIVE DRUMMOND removed her objection to Conceptual Amendment 1 to Amendment 1. There being no further objection, it was so ordered. 1:26:27 PM REPRESENTATIVE TALERICO asked to hear the opinion of the bill sponsor's staff on Amendment 1, as amended. 1:26:45 PM DARWIN PETERSON, Staff, Senator Click Bishop, Alaska State Legislature, on behalf of Senator Bishop, prime sponsor of CSSB 115(FIN)(efd fld), responded that the amendment was not what the sponsor wanted but that he would respect the will of the committee. 1:27:13 PM CHAIR STUTES removed her objection to Amendment 1, as amended. There being no further objection, it was so ordered. 1:27:39 PM The committee took an at-ease from 1:27 p.m. to 1:28 p.m. 1:28:13 PM CHAIR STUTES clarified that Amendment 1, as amended, had been adopted. 1:28:32 PM REPRESENTATIVE STORY, referencing Mr. Michel's testimony, asked how revenue generated by SB 115 would be certain to go toward road maintenance. 1:30:43 PM ROB CARPENTER, Deputy Commissioner, Department of Transportation & Public Facilities, replied that revenue would be designated by statute to go toward road maintenance, but it would be up to the legislature to appropriate the money. 1:31:20 PM REPRESENTATIVE TALERICO asked whether [revenue generated] fell under what was considered receipt authority. MR. CARPENTER replied that it would not, as it was a tax on users, whereas receipts were established to cover operations of a division. REPRESENTATIVE TALERICO said that most of his constituents were in opposition to CSSB 115(FIN)(efd fld). 1:33:39 PM REPRESENTATIVE EDGMON said he thought it took courage to put CSSB 115(FIN)(efd fld) before the public, because no one liked paying additional taxes. He said he saw the proposed legislation as bringing Alaska into the modern era, and although it wasn't necessarily "likeable," the services additional taxation would provide would benefit Alaskans. 1:35:36 PM REPRESENTATIVE CLAMAN said that his constituents had suggested a higher increase, especially if it was going to take so long to implement change. He added that while supporting CSSB 115(FIN)(efd fld) was not exactly easy, because no one wanted to raise taxes, he saw it not only as a positive step for roads but a positive step for the future of Alaskan communities. 1:37:36 PM REPRESENTATIVE DRUMMOND asked how much the refund to commercial fishing vessels in Amendment 1, [as amended], would mean to projected revenue. 1:38:27 PM REPRESENTATIVE EDGMON replied that $5 million of the projected $33 million was tied to marine fuel but within that $5 million it was anyone's guess how many fishermen would complete the necessary paperwork to receive the refund. 1:38:52 PM REPRESENTATIVE DRUMMOND commented that the lack of road maintenance and, therefore, repair costs, were harder on lower income families who tended to drive older vehicles. 1:40:34 PM REPRESENTATIVE EDGMON moved to report CSSB 115(FIN)(efd fld), as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS CSSB 115(TRA) was reported out of the House Transportation Standing Committee.