Legislature(2003 - 2004)
05/13/2003 04:41 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 213
"An Act establishing the Knik Arm Bridge and Toll Authority
and relating to that authority; and providing for an effective
date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Wilken stated that this legislation would establish an
independent authority to build and operate a toll bridge over the
Knik Arm. He clarified that SB 213, 23-GS1149\A, is the version
before the Committee, and he reminded the Committee that previous
questions on the bill included the composition of the Bridge
Authority's members.
Amendment #4: This amendment provides for the appointment of two
additional members to the Knik Arm Bridge Authority. In addition,
the amendment provides for staggered member terms and defines
initial term timelines.
Co-Chair Wilken moved to adopt Amendment #4 on behalf of its
sponsor, Co-chair Green. He noted that Amendment #4 is similar to
Amendment #1, sponsored by Senator Hoffman, that has yet to be
offered for adoption.
TRACI CARPENTER, Staff to Senator Lyda Green, explained that
Amendment #4 would add two members to the Bridge Authority; one to
represent the Matanuska Susitna Borough and the other to represent
the Municipality of Anchorage. Additionally, she noted that the
amendment clarifies the initial length of Board service for the
three public members who are specified to serve five-year staggered
terms.
Ms. Carpenter noted that Amendment #4 differs from Amendment #1 in
that Amendment #4 does not address the Board vacancy appointment
process.
Senator Taylor questioned the need to define the areas the two
members would represent, as he attested, individuals from other
regions could be assets to the Board.
Senator B. Stevens asked the Department of Transportation and
Public Facilities' position on the amendment.
JOHN MACKINNON, Deputy Commissioner of Highways & Public
Facilities, Department of Transportation and Public Facilities,
commented that the amendment is acceptable to the Department.
Senator Olson asked whether the amendment would affect the fiscal
note.
Mr. MacKinnon responded that the fiscal note should be increased
approximately $14,400 to provide stipend funds for the two
additional members.
Co-Chair Wilken shared that Co-Chair Green is concerned about the
amount of the fiscal note, and that she is negotiating with the
Department to reduce it. He surmised that the final fiscal note
would be "significantly less" than the original $523,700 fiscal
note.
There being no objection, Amendment #4 was ADOPTED.
Amendment #3: This amendment deletes subsection (f) of Sec.
44.90.221 of the bill, on page 8, lines 16 - 20 that reads as
follows.
(f) The chair of the board shall annually, not later than
January 2, deliver to the governor and the legislature a
certificate stating the sum, if any, required to restore any
capital reserve fund to the capital reserve fund requirement.
Money appropriated during that fiscal year for capital reserve
fund restoration shall be deposited by the authority in the
proper capital reserve fund.
On behalf of Co-chair Green, Co-Chair Wilken moved for the adoption
of Amendment #3. He then objected for sake of explanation.
Ms. Carpenter informed the Committee that the Department of Law
recommends that Section (f) be deleted from the bill as it might
negatively impact the State's bond rating.
KATHLEEN STRASBAUGH, Assistant Attorney General, Governmental
Affairs Section, Civil Division (Juneau), Department of Law,
explained that subsection (f) would create "a moral obligation on
the part of the State to back the bonds of this agency." She stated
that this action is inconsistent with other sections of the bill
that are designed "to assure the financial independence" of the
Board. She voiced that the Treasury Division of the Department
strongly recommends that the section, whose inclusion is "an
oversight" be deleted.
Co-Chair Wilken removed his objection.
There being no further objection, Amendment #3 was ADOPTED.
Senator Hoffman asked whether the Knik Arm Authority would be
subject to the requirements of the Executive Budget Act.
Ms. Strasbaugh explained that the Executive Budget Act requires
that, with the exception of debt retirement funds, any funds
generated from the State must be reported. She noted that the
information in question is located on page five line nine of the
committee substitute that reads as follows.
(2) comply with the provisions of AS 37.07
(Executive Budget Act), except that AS 37.07 does not apply to
the activities of the authority that relate to the authority's
borrowing of money as provided in this chapter, including the
issuing of its obligations or evidence of that borrowing and
the repayment of the debt obligation.
Ms. Strasbaugh continued that this section does not relieve the
Authority from certain reporting requirements as outlined in other
sections of the bill.
Senator Taylor asked about provisions that provide immunity to the
Authority.
Ms. Strasbaugh responded that provisions that relieve Board members
from personal liability are included in Sec. 44.90.241 on page
nine, lines 17 - 19 that reads as follows.
Sec 44.90.241. Nonliability on bonds. (a) Neither the
members of the board nor a person executing the bonds of the
authority is liable personally on the bonds or is subject to
personal liability or accountability by reason of issuance of
the bonds.
Senator Taylor voiced support for these provisions.
Amendment #2: This amendment inserts new subsections into Section
44.90.031 of the bill on page 2, line 13, following the word
"citizen" to read as follows.
(4) one nonvoting member who is a member of the
state house of representatives appointed by the speaker of the
house and who serves at the pleasure of the speaker of the
house; the speaker of the house shall consider the appointment
of a legislator elected from a house district that lies
entirely or partially within the Municipality of Anchorage or
the Matanuska-Susitna Borough for appointment under this
paragraph; and
(5) one nonvoting member who is a member of the
state senate appointed by the president of the senate and who
serves at the pleasure of the president of the senate; the
president of the senate shall consider the appointment of a
legislator elected from a house district that lies entirely or
partially within the Municipality of Anchorage or the
Matanuska-Susitna Borough for appointment under this paragraph
In addition, Amendment #2 contains conforming language and inserts
the word "voting" in language on page 2, lines 22, 23, 26 when
referring to members of the board.
Senator Hoffman moved for the adoption of Amendment #2.
Co-Chair Wilken objected for discussion.
Senator Hoffman stated that Amendment #2 specifies that a member of
the House of Representatives and the Senate would be non-voting
members on the Board. He stated that in addition to providing an
opportunity for other regions of the State to be represented on the
Board, the inclusion of Legislators would allow the Legislature to
be "better informed" regarding the Authority.
Amendment #1: This amendment inserts a new subsection into Sec.
44.90.031 on page 2, line 13 of the bill that reads as follows.
(4) one public member, appointed by the governor
from a list of 5 names submitted by the mayor of the
Municipality of Anchorage, who is a state resident, resident
of the Municipality of Anchorage, and United States citizen;
(5) one public, appointed by the governor from a
list of 5 names submitted by the mayor of the Matanuska-
Susitna Borough, who is a state resident, resident of the
Matanuska-Susitna Borough, and United States citizen;
Additionally the amendment inserts new language to subsection (c)
of Sec. 44.90.031 on page 2, line 18, following "appointment" to
read as follows.
(c) If a vacancy occurs in the public member seat on the
board, the governor shall make an appointment to fill the
vacancy in the same manner as the previous appointment to that
seat, effective immediately, for the unexpired portion of that
member's term.
Furthermore, in addition to technical changes, the amendment
inserts a new bill section on page 12, following line 30 to read as
follows.
Sec. 4. The uncodified law of the State of Alaska is amended
by adding a new section to read:
APPOINTMENT OF THE INITIAL PUBLIC MEMBERS OF THE KNIK ARM
BRIDGE AND TOLL AUTHORITY. Notwithstanding AS 39.05.055 and AS
44.90.031(b), added by sec. 1 of this Act, the governor shall
appoint the initial public members of the board of directors
of the Knik Arm Bridge and Toll Authority to terms as follows:
(1) one public member to a term of five years;
(2) one public member to a term of three years;
and
(3) one public member to a term of one year.
Senator Hoffman informed the Committee that he would not be
offering Amendment #1 for consideration because of its similarity
to Amendment #4.
Senator Bunde shared that there is a "parallel experience" with
Legislative representation on a Postsecondary Education Commission.
He noted that, "there is an on-going legal discussion as to
whether" this representation is appropriate because of Legislative
funding authority. Nonetheless, he voiced support for the concept.
Mr. MacKinnon stated that the reporting concern might be addressed
by language on page five, lines one through eight, that requires
the Authority to submit various reports to the Legislature and the
Governor on an annual basis.
Co-Chair Wilken asked the Department's position regarding
Legislative representation on the Board.
Mr. MacKinnon responded that the Department does not support the
amendment.
Senator Bunde commented that Legislative representation on the
Board might be beneficial in that it could provide the Board with
immediate Legislative reaction to a situation before rather than
after an event occurred.
Co-Chair Wilken removed his objection.
Without further objection, Amendment #2 was ADOPTED.
Senator Taylor moved to report the bill, as amended, from Committee
with individual recommendations and accompanying fiscal note;
however, he objected to state that while "this might be the most
expeditious way to get that bridge built," the citizens of the area
would be burdened with its administrative expense. He stated that
were the Department of Transportation and Public Facilities rather
than a bridge authority to build the bridge, the users would not
have a burden. He noted his repeated efforts to instill toll roads
and a Road Toll Authority in addition to a Marine Toll Authority to
replace the current Marine Advisory Board.
Senator Taylor voiced support for building the Knik Arm Bridge, as
he expressed that the citizens of the area, who might be required
to pay approximately twenty dollars to transit the Bridge, would
then be able to understand how the citizens of Southeast Alaska are
affected by having to pay for transportation on the Marine Highway
System.
Senator Taylor removed his objection.
Senator Bunde objected to the motion. He stated that, in
consideration of the State's fiscal dilemma, all expenses should be
questioned. He asked whether the State expenses associated with
this legislation would be factored into the operating expenses of
the bridge and into the toll amount charged for bridge transit.
Co-chair Wilken clarified that the question is whether State funds
and other expenses that establish the Authority would be reimbursed
via the toll system.
Mr. MacKinnon voiced the expectation that they would.
Senator Bunde repeated Mr. MacKinnon's comment, for the record,
that the State would be reimbursed. He removed his objection.
Senator Olson asked whether the toll amount has been established.
Mr. MacKinnon responded that the amount is unknown as the project
is in the conceptual stage.
Without further objection, CS SB 213(FIN) was REPORTED from
Committee with previous fiscal note #1 in the amount of $523,700
from the Department of Transportation and Public Facilities.
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