03/26/1993 08:30 AM House FIN

  HB 143    An Act relating to the distribution of the revenue                 
            obtained from imposition of the state tax on motor                 
            fuel used in watercraft  of all descriptions;  and                 
            providing for an effective date.                                   
                                                                               
                                                                               
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            CS HB 143  (CRA) was held in Committee for further                 
            discussion.                                                        
  HOUSE BILL 143                                                               
                                                                               
       "An Act  relating to  the distribution  of the  revenue                 
       obtained from imposition of the state tax on motor fuel                 
       used in  watercraft of all descriptions;  and providing                 
       for an effective date."                                                 
                                                                               
  REPRESENTATIVE JERRY MACKIE testified in  support of HB 143.                 
  The  legislation  was  introduced  in response  to  interest                 
  expressed by  several communities regarding local harbor and                 
  dock facilities.  The bill would provide to a municipality a                 
  portion of state watercraft fuel taxes collected within that                 
  municipality.  The portion would be determined  by the ratio                 
  of city owned  docks and harbors  to all public owned  docks                 
  and harbors in that  area.  The bill would  generate revenue                 
  sharing of tax receipts derived from facility users.                         
                                                                               
  Most harbor  facilities  located throughout  the  State  are                 
  currently  owned by  the  Department  of Transportation  and                 
  Public Facilities.  These facilities are usually operated by                 
  the local municipalities.   In recent years,  the Department                 
  has sought to have the municipalities take  ownership of the                 
  facilities and the associated  maintenance responsibilities.                 
  Their view is that  the "on site" operator is  better suited                 
  for effective  and efficient upkeep  of a facility  than the                 
  distant DOTPF personnel.                                                     
                                                                               
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  Representative   Therriault   expressed  concern   with  the                 
  operational   expense   currently    paid   by   the   local                 
  municipalities.    Representative Mackie  remarked  there is                 
  little maintenance  performed  in  the  smaller  communities                 
  which have harbors although there is a lot of deterioration.                 
  The legislation would provide funds  to address local harbor                 
  facility concerns.                                                           
                                                                               
  Representative Brown inquired how  military facilities would                 
  be  treated.     Representative   Mackie  said   "publically                 
  operated"  refers only  to  moorage  facilities operated  by                 
  DOTPF  or  a   local  municipality.     Discussion  followed                 
  regarding facilities publically owned and operated.                          
                                                                               
  Representative  Brown  MOVED to  amend  Page 2,  Line  7, by                 
  adding the language following  "are" by deleting "publically                 
  operated" and insert  "owned by  the State or  municipality"                 
  and  to  include  Amendment #1  proposed  by  Representative                 
  Mackie.  [Attachment #1].  An additional amendment was moved                 
  to  add the  language to  Page  2, Line  7,  after the  word                 
  "commissioner" adding "of  Department of Transportation  and                 
  Public Facilities".                                                          
                                                                               
  Co-Chair MacLean recommended  adding a sunset clause  to the                 
  legislation.    Representative  Mackie  explained  adding  a                 
  sunset would not work.   An incentive would be  provided and                 
  then  the  funds would  be removed.    This would  leave the                 
  municipalities owning the  harbors with no funds  to operate                 
  them.                                                                        
                                                                               
  Representative Brown MOVED the suggested amendment.                          
                                                                               
  (Tape Change, HFC 93-66, Side 1).                                            
                                                                               
  RON LIND,  DIRECTOR, PLANS, PROGRAMS, AND BUDGET, DEPARTMENT                 
  OF  TRANSPORTATION   AND  PUBLIC   FACILITIES,  stated   the                 
  amendment  to  change DOTPF  as  the agency  for determining                 
  footage  would be appropriate.   He  stated that  the Alaska                 
  Marine Highway dock would need to be excluded.                               
                                                                               
  Representative Martin OBJECTED.                                              
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Parnell,   Therriault,   Brown,  Foster,                 
                      Grussendorf,  Hanley, Hoffman,  MacLean,                 
                      Larson.                                                  
                                                                               
       OPPOSED:       Martin.                                                  
                                                                               
  Representative Navarre was not present for the vote.                         
                                                                               
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  The MOTION PASSED, (9 - 1) and the amendment was included.                   
                                                                               
  HB 143 was HELD in Committee for further discussion.