04/10/2010 09:00 AM House FINANCE

HOUSE JOINT RESOLUTION NO. 42                                                                                                 
                                                                                                                                
     Proposing amendments  to the Constitution of  the State                                                                    
     of  Alaska  creating  a  transportation  infrastructure                                                                    
     fund.                                                                                                                      
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 42                                                                                                 
                                                                                                                                
     Proposing amendments to the Constitution of the State                                                                      
     of Alaska creating a transportation infrastructure                                                                         
     fund.                                                                                                                      
                                                                                                                                
Representative Kelly MOVED to ADOPT conceptual Amendment 1:                                                                     
                                                                                                                                
     Page 2, beginning of line 4:                                                                                               
     Insert "state fuel taxes and registration fees                                                                             
     received  by the fund in that year and a percentage of                                                                     
     the"                                                                                                                       
                                                                                                                                
     Renumber accordingly.                                                                                                      
                                                                                                                                
Representative  Fairclough  OBJECTED. There  was  discussion                                                                    
about the  version being considered; it  was determined that                                                                    
the version was \P.                                                                                                             
                                                                                                                                
Representative Fairclough WITHDREW her OBJECTION.                                                                               
                                                                                                                                
Co-Chair Stoltze MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
BECKY ROONEY,  STAFF, REPRESENTATIVE PEGGY  WILSON, SPONSOR,                                                                    
explained  that conceptual  Amendment  1 would  allow for  a                                                                    
percentage of the fuel tax  and vehicle registration fees to                                                                    
be appropriated  each year. She reminded  the committee that                                                                    
a graph had  been shown in testimony related to  HB 329 that                                                                    
would  define  the amount  as  50  percent; the  legislature                                                                    
would have the latitude to change the percentage.                                                                               
                                                                                                                                
Co-Chair Stoltze  stated that he  opposed the  amendment. He                                                                    
thought  there  was  an adequate  vehicle  in  the  proposed                                                                    
measure for establishing a dedicated  fund. He did not think                                                                    
it fit as  well into a constitutional  amendment package and                                                                    
could detract from the discussion.                                                                                              
                                                                                                                                
Co-Chair  Hawker   stated  that   he  was  opposed   to  the                                                                    
amendment. He  thought the legislation was  simple, elegant,                                                                    
and appropriate without the additional amendment.                                                                               
                                                                                                                                
Representative  Gara  stated that  he  did  not support  the                                                                    
amendment.  He  thought  there  were  two  problems:  First,                                                                    
whether  there  would  be  enough money  in  the  fund,  and                                                                    
second, he  did not want  it all  spent in years  when there                                                                    
was more  than enough. He  was concerned that by  adding the                                                                    
other  two sources  of revenue,  there would  be more  money                                                                    
than  the   legislature  would  otherwise   appropriate  for                                                                    
transportation projects.                                                                                                        
                                                                                                                                
7:08:04 PM     AT EASE                                                                                                        
7:08:24 PM     RECONVNENED                                                                                                    
                                                                                                                                
Representative Kelly WITHDREW conceptual Amendment 1.                                                                           
                                                                                                                                
Co-Chair  Hawker MOVED  to report  CS  HJR 42  (JUD) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Gara OBJECTED.                                                                                                   
                                                                                                                                
Representative  Gara   stated  that   he  objected   to  the                                                                    
legislation  because   of  the   unevenness  of   needs  for                                                                    
transportation.  He  did  not  want  a  dedicated  fund  for                                                                    
transportation  in  years  when  there was  more  money.  He                                                                    
wanted the  extra interest  earnings to  revert back  to the                                                                    
general fund in some years.  He maintained that whenever the                                                                    
legislature was given  more money to spend  than needed, the                                                                    
money was spent.                                                                                                                
                                                                                                                                
Representative Fairclough  pointed out that there  were many                                                                    
transportation needs in the state  and the fund had no money                                                                    
in  it. She  maintained that  the state  needed a  dedicated                                                                    
fund established  in the state constitution.  She emphasized                                                                    
that without  a road system and  transportation, people were                                                                    
stranded without  access to food  or other  emergency needs.                                                                    
The fund would help in all  areas of the state. She believed                                                                    
in the process. She was  concerned about the large and aging                                                                    
transportation  infrastructure  in  Alaska  and  wanted  the                                                                    
state to begin taking responsibility for it.                                                                                    
                                                                                                                                
Representative   Doogan   supported  movement   forward   on                                                                    
transportation  issues  and  commended  the  work  done.  He                                                                    
stated concerns  about the concept  of a dedicated  fund. He                                                                    
wondered what  would be  next after  the dedicated  fund for                                                                    
transportation; everyone would  like their project enshrined                                                                    
in the  constitution. He referred  to California,  where all                                                                    
the  money was  tied up  and the  voters have  to decide  to                                                                    
allow any extra funding.                                                                                                        
                                                                                                                                
7:14:27 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze agreed with some  of the policy discussion.                                                                    
He  referred to  historical discussion  about the  issue and                                                                    
thought the topic was relevant.                                                                                                 
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
There being NO further OBJECTION, it was so ordered.                                                                            
                                                                                                                                
Representative  Wilson  commented  that  the  numbers  being                                                                    
discussed were only  relevant if $1 billion  dollars was put                                                                    
into the fund. The amendment would have made it flexible.                                                                       
                                                                                                                                
CS  HJR  42(JUD)  was  REPORTED out  of  committee  with  no                                                                    
recommendation  and with  previously published  fiscal note:                                                                    
FN1 (GOV).                                                                                                                      
                                                                                                                                
HB  329  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  356  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.