03/01/2010 01:00 PM House JUDICIARY

            HJR 42 - CONST. AM: TRANSPORTATION FUND                                                                         
                                                                                                                                
1:07:23 PM                                                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that the  first order of business would be                                                               
HOUSE  JOINT  RESOLUTION  NO. 42,  Proposing  amendments  to  the                                                               
Constitution  of the  State of  Alaska creating  a transportation                                                               
infrastructure  fund.   [Before  the committee  was the  proposed                                                               
committee substitute (CS) for HJR  42, Version 26-LS1411/S, Kane,                                                               
2/17/10, which had been adopted as the work draft on 2/17/10.]                                                                  
                                                                                                                                
CHAIR  RAMRAS  mentioned  that members'  packets  now  include  a                                                               
memorandum  from  Representative  Gatto   dated  March  1,  2010,                                                               
indicating that  he has  no objections to  reporting HJR  42 from                                                               
committee;  that memorandum  in part  read [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     I   respectfully  withdraw   my  objection   to  moving                                                                    
     Representative Wilson's  HJR 42 of the  House Judiciary                                                                    
     Committee.      Representative  Wilson's   office   has                                                                    
     coordinated with  my staff to  ensure that  my concerns                                                                    
     regarding   the  funding   source   for  the   proposed                                                                    
     infrastructure  fund  were  addressed.    I  have  also                                                                    
     concluded, upon  further guidance from  legal services,                                                                    
     that  there are  no  significant constitutional  issues                                                                    
     with HJR 42.                                                                                                               
                                                                                                                                
1:08:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON, Alaska State  Legislature, speaking                                                               
as chair of the  House Transportation Standing Committee, sponsor                                                               
of HJR 42, mentioned that  there is a forthcoming amendment which                                                               
she would like to see adopted.                                                                                                  
                                                                                                                                
1:09:44 PM                                                                                                                    
                                                                                                                                
CHAIR  RAMRAS made  a motion  to adopt  Amendment 1,  labeled 26-                                                               
LS1411\S.3, Kane, 2/25/10, which read:                                                                                          
                                                                                                                                
     Page 2, line 5, following "law":                                                                                           
          Insert "and for costs related to motor vehicle                                                                        
     licensing and registration that are designated by law"                                                                     
                                                                                                                                
REPRESENTATIVE HERRON objected.                                                                                                 
                                                                                                                                
1:10:05 PM                                                                                                                    
                                                                                                                                
BECKY ROONEY,  Staff, Representative  Peggy Wilson,  Alaska State                                                               
Legislature,  on behalf  of  the  sponsor of  HJR  42, the  House                                                               
Transportation   Standing   Committee,   which  is   chaired   by                                                               
Representative   P.  Wilson,   offered  her   understanding  that                                                               
Amendment 1  would "allow the  costs for operating  the [Division                                                               
of  Motor  Vehicles  (DMV)]  to  be  deducted  from  the  vehicle                                                               
registration  fees  before they  are  deposited  into the  fund."                                                               
Historically, operating costs  have been around $2  million to $3                                                               
million per year, and there is  a difference between what the DMV                                                               
has been granted and what it  needs to operate, and this has been                                                               
coming  from  vehicle registration  fees.    She added,  "We  are                                                               
planning to  define that  amount and  ... what  the funds  may be                                                               
used for  in statute in another  bill that actually ...  puts the                                                               
boundaries  on this  fund and  ... how  it's going  to be  used."                                                               
Amendment 1 merely allows for the use of those funds.                                                                           
                                                                                                                                
REPRESENTATIVE HERRON removed his objection.                                                                                    
                                                                                                                                
CHAIR RAMRAS announced that Amendment 1 was adopted.                                                                            
                                                                                                                                
1:11:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRUENBERG made  a  motion to  adopt Amendment  2,                                                               
labeled 26-LS1411\S.1, Kane, 2/22/10, which read:                                                                               
                                                                                                                                
     Page 2, line 4, following "capital":                                                                                       
          Insert "and preservation"                                                                                             
                                                                                                                                
REPRESENTATIVE HERRON objected.                                                                                                 
                                                                                                                                
REPRESENTATIVE  GRUENBERG referred  to  the language  on page  2,                                                               
line 4,  which currently  says in  part, "for  capital projects",                                                               
and said  he wants  to ensure that  monies appropriated  from the                                                               
resolution's  proposed transportation  infrastructure fund  could                                                               
also be used  for repairs.  He questioned which  types of repairs                                                               
the  sponsor is  envisioning  would be  covered  under the  term,                                                               
"capital projects".                                                                                                             
                                                                                                                                
MS. ROONEY,  after indicating that deferred  maintenance would be                                                               
addressed  in  statute  via the  aforementioned  other  piece  of                                                               
legislation currently going through the process, stated:                                                                        
                                                                                                                                
     It  will be  the  major maintenance  projects that  are                                                                    
     covered under our  normal capital budget.   So it would                                                                    
     be resurfacing  roads and ... upgrading  airports.  But                                                                    
     it doesn't include things like  snow removal and street                                                                    
     sweeping  and  other  activities  that  are  considered                                                                    
     maintenance.  And that's the  reason that we didn't put                                                                    
     [the term]  "maintenance" in here  - because  we didn't                                                                    
     want to supplant the  normal maintenance ... activities                                                                    
     with ... these  funds; we wanted [them]  to actually be                                                                    
     something  that ...  our constituents  will  see -  ...                                                                    
     when  these funds  are  put  in place  -  to be  actual                                                                    
     improvements to our transportation system.                                                                                 
                                                                                                                                
REPRESENTATIVE GRUENBERG  pointed out,  however, that  the words,                                                               
"and preservation" -  which would be added by Amendment  2 - were                                                               
intended  by him  to include  the repair  of large  potholes, for                                                               
example,  that  could lead  to  road  deterioration.   He  asked,                                                               
therefore, whether those  types of repairs would  be provided for                                                               
under HJR 42's existing language.                                                                                               
                                                                                                                                
MS. ROONEY offered her belief that they would be.                                                                               
                                                                                                                                
REPRESENTATIVE GRUENBERG  asked Representative P.  Wilson whether                                                               
such was her intention.                                                                                                         
                                                                                                                                
REPRESENTATIVE P. WILSON  said yes, but cautioned that  it is not                                                               
the   intent  for   monies  from   the  proposed   transportation                                                               
infrastructure  fund to  be used  to supplant  general fund  (GF)                                                               
monies.   She  added, "Many  states have  done that,  and they've                                                               
just stopped putting ... funding  in the general budget, and then                                                               
the fund was  used for everything."  It  is necessary, therefore,                                                               
for  the legislature  to  be  very careful  about  what items  it                                                               
includes in the resolution's language.                                                                                          
                                                                                                                                
REPRESENTATIVE GRUENBERG  said he  would accept  that explanation                                                               
as  the intent  of the  sponsor with  regard to  the resolution's                                                               
existing term,  "capital projects for transportation  and related                                                               
facilities that are designated by law".                                                                                         
                                                                                                                                
REPRESENTATIVE GRUENBERG then withdrew Amendment 2.                                                                             
                                                                                                                                
REPRESENTATIVE GRUENBERG,  in response to a  query, remarked that                                                               
he does not  support dedicated funds - with the  exception of the                                                               
Alaska permanent fund  - but would not be  objecting to reporting                                                               
the resolution from committee.                                                                                                  
                                                                                                                                
1:15:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAHLSTROM  moved to report the  proposed committee                                                               
substitute (CS)  for HJR 42, Version  26-LS1411/S, Kane, 2/17/10,                                                               
as amended, out of committee  with individual recommendations and                                                               
the  accompanying  fiscal  notes.    There  being  no  objection,                                                               
CSHJR 42(JUD)  was reported  from  the  House Judiciary  Standing                                                               
Committee.