03/10/2006 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS

            SB 291-MUNICIPAL HARBOR FACILITY GRANTS                                                                         
                                                                                                                                
CHAIR BERT  STEDMAN announced  SB 291,  version Y,  to be  up for                                                               
consideration.                                                                                                                  
                                                                                                                                
1:36:54 PM                                                                                                                    
                                                                                                                                
He recapped  the history  of harbor transfers  from the  state to                                                               
municipalities. Since the transfers  began ten years ago, there's                                                               
been an  ongoing debate regarding  the condition under  which the                                                               
harbors  were  transferred and  the  amount  the state  paid  the                                                               
municipalities  to  assume  ownership   and  operation  of  those                                                               
harbors.                                                                                                                        
                                                                                                                                
To  address  the  issue legislators  met  with  municipal  harbor                                                               
administrators  and  as  a  result   the  Alaska  Association  of                                                               
Harbormasters and Port Administrators  brought forward a proposal                                                               
for  a  50/50 matching  grant  program  for harbor  upgrades  and                                                               
renovations.  That  would  allow  municipalities to  use  the  50                                                               
percent  state  match  and  other   appropriate  funds  with  the                                                               
provision that other state grant money could not be used.                                                                       
                                                                                                                                
SB 291 would  establish the municipal harbor  facility grant fund                                                               
to which the Legislature would  make an annual appropriation from                                                               
the watercraft  fuel tax  account and from  the state  portion of                                                               
the fisheries  business tax.  Both sources  come from  the marine                                                               
industry  so harbor  users  would generate  the  revenue for  the                                                               
program. The bill  caps the funds that can be  used per community                                                               
per year  at $5 million so  that a large community  couldn't take                                                               
all  the available  funds in  any given  year. Communities  could                                                               
apply for the capital match  for any particular harbor just once.                                                               
The expectation  is that  communities would  establish, maintain,                                                               
and run an enterprise fund into perpetuity.                                                                                     
                                                                                                                                
As currently designed the program would  run for between 8 and 10                                                               
years and  at the end of  that time the harbors  around the state                                                               
should be up to a fairly good standard.                                                                                         
                                                                                                                                
CHAIR  STEDMAN announced  that  public  testimony had  previously                                                               
been taken on SB  291 and he would like a motion  to move it from                                                               
committee.                                                                                                                      
                                                                                                                                
1:41:15 PM                                                                                                                    
                                                                                                                                
SENATOR GARY  STEVENS motioned to  report CSSB  291(CRA), version                                                               
Y, with  attached fiscal note(s) and  individual recommendations.                                                               
There being no objection, it was so ordered.