04/01/2014 01:30 PM Senate TRANSPORTATION

             HJR 10-CONST. AM: TRANSPORTATION FUND                                                                          
                                                                                                                                
1:32:24 PM                                                                                                                    
CHAIR EGAN announced HJR 10 to be up for consideration [CSHJR
(FIN) was before the committee].                                                                                              
                                                                                                                                
1:32:37 PM                                                                                                                    
REPRESENTATIVE  PEGGY WILSON,  sponsor  of HJR  10, Alaska  State                                                               
Legislature, Juneau,  Alaska, said  she didn't take  changing the                                                               
Constitution   lightly,   but   this  is   reinstatement   of   a                                                               
constitutional  provision that  was  in place  at statehood.  She                                                               
said she believes the voters  deserve an opportunity to decide on                                                               
reinstating a dedicated transportation fund.                                                                                    
                                                                                                                                
1:33:26 PM                                                                                                                    
SENATOR FRENCH asked for some historical background.                                                                            
                                                                                                                                
REPRESENTATIVE P. WILSON explained that  the fund actually was in                                                               
the   Constitution   at  one   point.   The   delegates  at   the                                                               
Constitutional  Convention recognized  that  there wasn't  enough                                                               
money in the state budget for  a lot of dedicated funds, but they                                                               
did grandfather the two transportation  funds in existence before                                                               
statehood. One was  for roads and one was for  water and harbors.                                                               
She   noted  that   this  resolution   combines  both   into  one                                                               
transportation fund.                                                                                                            
                                                                                                                                
SENATOR  FRENCH  asked  if  those dedicated  funds  were  in  the                                                               
Territorial statutes.                                                                                                           
                                                                                                                                
REPRESENTATIVE  P. WILSON  replied she  wasn't sure,  but it  was                                                               
added  to the  Constitution.  It was  eliminated  when the  state                                                               
raised the  gas tax from 3  cents to 5 cents  because the current                                                               
thinking was that  it won't be needed because that  extra 2 cents                                                               
would bring in so much money.                                                                                                   
                                                                                                                                
SENATOR FRENCH  summarized that it  was in the  Constitution, but                                                               
it was taken out. He asked when that occurred.                                                                                  
                                                                                                                                
REPRESENTATIVE P. WILSON answered that it was in 1963.                                                                          
                                                                                                                                
1:35:22 PM                                                                                                                    
SENATOR DYSON asked  if the state underwent  the rigorous process                                                               
to amend the Constitution to take it out.                                                                                       
                                                                                                                                
REPRESENTATIVE  P. WILSON  deferred to  Mark Hickey  who was  the                                                               
Commissioner  of Transportation  at the  time. She  recalled that                                                               
the drafters  thought the fund had  to be eliminated in  order to                                                               
increase the tax.                                                                                                               
                                                                                                                                
SENATOR DYSON asked if the people voted on the change.                                                                          
                                                                                                                                
REPRESENTATIVE   P.  WILSON   said  no;   it  was   done  through                                                               
legislation.                                                                                                                    
                                                                                                                                
SENATOR FRENCH  stated that  he made himself  a note  to research                                                               
the  history   of  the   constitutional  provisions   related  to                                                               
transportation. He added that he wouldn't hold the bill up.                                                                     
                                                                                                                                
SENATOR DYSON  moved to  report CS for  HJR 10(FIN),  version 28-                                                               
LS0133\C, from committee  to the next committee  of referral with                                                               
attached fiscal notes and  individual recommendations. There were                                                               
no  objections   and  CSHJR  10(FIN)   passed  from   the  Senate                                                               
Transportation Standing Committee.