Legislature(2003 - 2004)
05/16/2003 01:49 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 301
An Act establishing the Knik Arm Bridge and Toll Authority
and relating to that authority; and providing for an
effective date.
MICHAEL BARTON, COMMISSIONER, DEPARTMENT OF TRANSPORTATION &
PUBLIC FACILITIES, explained that the bill would establish
an independent authority to build and operate a toll bridge
over Knik Arm. The authority would be able to receive
federal money and issue revenue bonds to finance the toll
bridge and its appurtenant facilities. The authority would
design, construct, and operate the bridge and the facility.
The authority would be a public corporation that would have
a separate independent legal existence from the State. The
revenue of the authority would not become part of the
general fund and the property of the authority would be
exempt from taxation.
Commissioner Barton continued, the bill establishes a three-
person board to govern the authority. The commissioners of
the Department of Revenue and the Department of
Transportation & Public Facilities would serve on the board,
along with a member of the public, appointed by the Governor
for a five-year term.
Representative Kerttula referenced Page 3, Lines 4-6 and
voiced concern with what could happen if the authority
failed. If that occurred, would the Legislature retain only
the power to pull back funding.
TOM BOUTIN, DEPUTY COMMISSIONER, DEPARTMENT OF REVENUE,
explained that typically in stand-alone revenue bonds, if
there are bonds, authorized by the Legislature, there would
be a trustee who would have the ability to take over the
entire facility and manage it under the worse case scenario.
The bill would not have the State's moral or general
obligation.
Representative Kerttula asked if that was standard language.
Mr. Boutin advised that any new debt would require further
authorization. It is typical language for stand-alone
revenue bond authority.
Representative Kerttula referenced Page 3, Lines 21-23,
which lists the powers. She inquired if "planned," meant,
"developing". Commissioner Barton responded that was
implicit. Representative Kerttula continued, Page 4, Line
6, asking what would happen if the State received "gifted"
grants or authority. Commissioner Barton [inaudible].
Representative Kerttula noted concern with the language on
Page 12, Lines 6-9, the exemption from local regulation.
That language gives the authority complete exemption from
land use planning, zoning and permitting power of any
political subdivision. She asked what local communities
felt about inclusion of that language. Commissioner Barton
responded that the language was standard for a project of
this size and stated that he did not know what the community
thought about the verbiage. Representative Kerttula
emphasized her concern with the zoning affect. Commissioner
Barton added that the communities would each have a member
on the board.
Representative Berkowitz asked if there was a reason to rush
into the activity of the proposed authority. Commissioner
Barton responded that this could be an "investment for the
future of Alaska". The authority could provide a focus and
impetus to move the project forward. He noted that he
anticipated process delays and that the legislation could
help facilitate getting the crossing built.
Representative Berkowitz noted concern with power of a
bridge authority. He recommended moving more slowly as a
legislative body and proposing a more modified version.
Commissioner Barton commented that the authority will only
have the power that the Legislature grants.
Representative Berkowitz emphasized his concern with the
composition of the board of directors on that authority. On
Page 3, he noted questions regarding the "powers and duties
of the authority" on real and personal property. He added
that it is mentioned that the purpose of the authority is to
advance the "economic development of the State". In
creating an authority, there needs to be more time to
develop the authority's mission. Commissioner Barton
observed that it is important that "both ends of the bridge
be involved". The impact extends beyond the influence of
the actual bridge.
HB 301 was HELD in Committee for further consideration.
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