Legislature(2005 - 2006)CAPITOL 17

03/21/2006 01:30 PM House TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 432 YUKON RIVER FERRY SERVICE TELECONFERENCED
Moved CSHB 432(TRA) Out of Committee
*+ HB 417 REGULATION OF HWYS; TRAFFIC OFFENSES TELECONFERENCED
Moved CSHB 417(TRA) Out of Committee
+= HJR 18 FEDERAL MARINE TRANSPORTATION SAFETY ACT TELECONFERENCED
Moved Out of Committee
HJR 18-FEDERAL MARINE TRANSPORTATION SAFETY ACT                                                                               
                                                                                                                                
CO-CHAIR GATTO  announced that the  next order of  business would                                                               
be  HOUSE  JOINT  RESOLUTION  NO. 18,  Relating  to  the  federal                                                               
Maritime  Transportation Security  Act  of 2002  and the  state's                                                               
right to tax commercial passenger vessels.                                                                                      
                                                                                                                                
2:07:20 PM                                                                                                                    
                                                                                                                                
CODY   RICE,  Staff   to  Representative   Gatto,  Alaska   State                                                               
Legislature,  explained  that HJR  18  asks  Congress to  clarify                                                               
subsection  445 of  the Maritime  Transportation Security  Act of                                                               
2002 (MTSA).  Subsection 445  was intended to prohibit/exclude an                                                               
ad valorem  tax imposed by  Yakutat on cruise ships  that entered                                                               
the bay  but did not actually  stop at the port.   Subsection 445                                                               
has been broadly  interpreted to invalidate a  number of existing                                                               
and proposed taxes nationwide.                                                                                                  
                                                                                                                                
2:08:52 PM                                                                                                                    
                                                                                                                                
MR.  RICE related  his understanding  that Congress  is going  to                                                               
address subsection 445 this year  through the "Coast Guard" bill.                                                               
He recalled  discussions with the offices  of U.S. Representative                                                               
Don Young and  U.S. Senator Ted Stevens on  this particular issue                                                               
and they have expressed interest  in clarifying the issue through                                                               
the  aforementioned bill.   Mr.  Rice  opined that  HJR 18  would                                                               
illustrate strong support from the legislature.                                                                                 
                                                                                                                                
REPRESENTATIVE THOMAS commented that  he hasn't heard from anyone                                                               
in opposition to this.                                                                                                          
                                                                                                                                
CO-CHAIR  GATTO   reminded  the   committee  that  there   is  an                                                               
initiative on  the ballot for  which clarification  of subsection                                                               
445 would  be helpful.  Furthermore,  this seems to be  a state's                                                               
rights issue.                                                                                                                   
                                                                                                                                
REPRESENTATIVE THOMAS  pointed out that  if the head  tax remains                                                               
and money has to be spent  in relation to cruise ship industries.                                                               
He reminded  the committee  that the Ketchikan  bridge had  to be                                                               
raised  in order  to allow  the cruise  ships to  pass under  it.                                                               
Therefore, he  questioned whether  the bridge in  Ketchikan could                                                               
be funded by the cruise ship monies.                                                                                            
                                                                                                                                
CO-CHAIR GATTO highlighted  that sometimes the law  says that the                                                               
money "must" be  used for specific facilities.   He then informed                                                               
the  committee that  taller ships  are in  the design  phase, and                                                               
thus he  surmised that  the bridge  would have  to be  raised yet                                                               
again.                                                                                                                          
                                                                                                                                
CO-CHAIR ELKINS disagreed, and pointed  out that the ships can go                                                               
around.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  THOMAS recalled  that originally,  the first  bid                                                               
was  where  the  South  Coast  properties  were  and  thus  there                                                               
would've been a  "small shot across."  However,  the cruise ships                                                               
wanted to go through and the  [Ketchikan bridge] was moved to its                                                               
present location and raised.                                                                                                    
                                                                                                                                
CO-CHAIR   ELKINS    mentioned   that   the    Federal   Aviation                                                               
Administration didn't want the bridge on the north end.                                                                         
                                                                                                                                
CO-CHAIR   GATTO  questioned   why  a   drawbridge  isn't   being                                                               
considered.                                                                                                                     
                                                                                                                                
2:12:43 PM                                                                                                                    
                                                                                                                                
CO-CHAIR ELKINS announced that he  will support HJR 18 because if                                                               
the  referendum  passes,  clarity  [on subsection  445]  will  be                                                               
necessary.                                                                                                                      
                                                                                                                                
2:13:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  ELKINS moved  to report  HJR 18  out of  committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being no objection, it was so ordered.                                                                                    
                                                                                                                                
2:13:59 PM                                                                                                                    
                                                                                                                                

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