Legislature(2009 - 2010)CAPITOL 17

02/25/2010 01:00 PM House TRANSPORTATION


Download Mp3. <- Right click and save file as

Audio Topic
01:09:47 PM Start
01:09:52 PM HB329
01:38:21 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 322 WINTER TIRE REQUIREMENTS TELECONFERENCED
<Bill Hearing Canceled>
+= HB 329 DEDICATED TRANSPORT FUND/PUB TRANSPORT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
1:10:07 PM                                                                                                                    
                                                                                                                                
         HB 329-DEDICATED TRANSPORT FUND/PUB TRANSPORT                                                                      
                                                                                                                              
CHAIR P. WILSON  announced that the only order  of business would                                                               
be HOUSE  BILL NO.  329, "An Act  relating to  the transportation                                                               
infrastructure  fund, to  local public  transportation, to  motor                                                               
fuel  taxes,  and to  the  motor  vehicle registration  fee;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
1:10:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  made  a   motion  to  adopt  a  proposed                                                               
Committee  Substitute  for  HB 329,  labeled  26-LS1307\K,  Kane,                                                               
2/25/10 as the working document.                                                                                                
                                                                                                                                
There being no objection, Version K was before the committee.                                                                   
                                                                                                                                
1:12:17 PM                                                                                                                    
                                                                                                                                
REBECCA  ROONEY, Staff,  Representative P.  Wilson, Alaska  State                                                               
Legislature,  on  behalf  of the  prime  sponsor,  explained  the                                                               
changes contained  in Version K.   She referred to page  2, lines                                                               
4-8,  which is  a  change  made to  address  a  concern that  the                                                               
Fisheries Business Tax  had been singled out as a  source to fund                                                               
the Municipal Harbor Facilities Grant  Fund (MHFGF).  She offered                                                               
that  since  the  MHFGF can  receive  appropriations  from  other                                                               
sources of funds,  references to the Fisheries  Business Tax were                                                               
deleted.  Thus,  the specific source of funding for  the MHFGF is                                                               
not listed in the bill.                                                                                                         
                                                                                                                                
1:14:08 PM                                                                                                                    
                                                                                                                                
MS. ROONEY  referred to page  3, line  8, and explained  that the                                                               
committee held  discussions on the previous  bill language, which                                                               
read,  "An appropriation  from  the fund  may not  be  made to  a                                                               
project..."  Thus, the sponsor  changed the language "may not" to                                                               
"shall not" to clarify that  the appropriations would not be made                                                               
to projects  covered by this  subsection for which  federal money                                                               
has  been allocated  unless  certain conditions  were  met.   She                                                               
commented  that the  change conflicts  with the  drafting manual,                                                               
but "shall" was  preferred by the bill sponsor.   She referred to                                                               
page 3, lines  15-31, and page 4,  lines 1-8.  The  goal for this                                                               
change is  provide descriptions that  identify specific  modes of                                                               
transportation,  but  also  keep  the  descriptions  flexible  so                                                               
future legislatures  have adequate discretion  for appropriation.                                                               
One  additional change  was to  add "major  maintenance" to  each                                                               
mode  since considerable  committee  concern  was expressed  that                                                               
"major maintenance" was not included in this proposed Section.                                                                  
                                                                                                                                
1:15:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T.  WILSON  asked  whether  the  percentages  the                                                               
DOT&PF  currently expends  for each  mode were  considered or  if                                                               
perhaps expenditures  over a five-year period  between modes were                                                               
considered.                                                                                                                     
                                                                                                                                
MS. ROONEY  referred to the  2030 Transportation Plan,  which was                                                               
reviewed  and considered.   However,  the decision  to limit  the                                                               
allocation  to  current  expenditures  seemed  too  constrictive.                                                               
Thus, to  provide more flexibility for  allocation between modes,                                                               
the  total  allocation   adds  up  to  more   than  100  percent.                                                               
Basically,  this   means  the  allocation  may   not  exceed  the                                                               
percentage, but  does not need  to reach the  specific percentage                                                               
assigned to each mode.                                                                                                          
                                                                                                                                
MS.  ROONEY referred  to  page  5, lines  2-7,  to  the issue  of                                                               
defining "rural" versus  "urban" districts in order  to allow for                                                               
diverse   representation    on   the    proposed   Transportation                                                               
Infrastructure  Fund   Advisory  Council  (TIFAC).     Version  K                                                               
provides diversification  by identifying legislators to  serve on                                                               
the TIFAC  into two groups:   those legislators who  represent an                                                               
election  district  with a  city  with  population of  more  than                                                               
35,000, and those legislators who  represent an election district                                                               
with a city  less than 35,000.  Thus, the  more densely populated                                                               
and less  densely populated districts would  have two legislative                                                               
representatives to serve on the proposed TIFAC.                                                                                 
                                                                                                                                
1:17:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MUNOZ inquired as  to whether any structure exists                                                               
that is  similar to this one  in terms of legislators  having the                                                               
ability to provide input on capital appropriations.                                                                             
                                                                                                                                
MS. ROONEY said she did not know.                                                                                               
                                                                                                                                
REPRESENTATIVE  JOHNSON thought  there may  be current  examples,                                                               
such  as the  Mental  Health Trust  Board,  in which  legislators                                                               
serve and make decisions on capital projects.                                                                                   
                                                                                                                                
REPRESENTATIVE  P.  WILSON  offered  that  the  purpose  for  the                                                               
legislative participation  on the TIFAC  is to ensure  the DOT&PF                                                               
would not solely  make its decisions.  She pointed  out that many                                                               
constituents  complained the  DOT&PF  came to  the community  and                                                               
held  meetings  but  ultimately   did  not  listen  to  community                                                               
comments  and  instead  the  capital  projects  were  prioritized                                                               
internally by the DOT&PF.                                                                                                       
                                                                                                                                
1:18:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MUNOZ asked  whether the  proposed plan  would be                                                               
approved by the governor.                                                                                                       
                                                                                                                                
MS. ROONEY agreed.  She stated  that the plan would be similar to                                                               
the capital budget process.                                                                                                     
                                                                                                                                
1:18:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  recalled a court case  in Anchorage which                                                               
was  related  to legislators  participating  in  the AMATS.    He                                                               
recalled  that   legislators  were  ultimately  not   allowed  to                                                               
participate.   He asked  whether this court  case would  apply to                                                               
the proposed legislative participation on the ATIFAC.                                                                           
                                                                                                                                
FRANK RICHARDS, Deputy Commissioner,  Office of the Commissioner,                                                               
Department  of  Transportation   &  Public  Facilities  (DOT&PF),                                                               
stated that  Jim Cantor, Assistant Attorney  General is available                                                               
to address the issue.                                                                                                           
                                                                                                                                
1:20:26 PM                                                                                                                    
                                                                                                                                
JIM  CANTOR,   Chief  Assistant   Attorney  General;   General  -                                                               
Statewide  Section Supervisor,  Department  of  Law, stated  that                                                               
over time the  attorney general has issued opinions  to cover the                                                               
issue of  legislators serving  on boards.   The line  is somewhat                                                               
unclear,  but it  is all  right for  legislators to  serve on  an                                                               
advisory board  which is "purely  advisory" in nature.   However,                                                               
in reviewing  some boards, such  as the Land Use  Advisory Board,                                                               
or the  Amateur Sports Authority  which seemed to be  advisory in                                                               
nature,  it was  found that  the legislators  in these  instances                                                               
would  carry more  weight than  purely advisory,  and having  the                                                               
legislators  participate may  be  unconstitutional.   He did  not                                                               
know  where  the  line  would   be  drawn  between  a  legislator                                                               
performing  substantive  executive  branch  work  and  performing                                                               
advisory work.   He  said, "I  think you phrased  it in  terms of                                                               
risk and it does create risk."                                                                                                  
                                                                                                                                
1:21:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  asked which party would  come forward and                                                               
challenge the ATIFAC composition.                                                                                               
                                                                                                                                
MR. CANTOR said he was not  aware of any present controversy.  He                                                               
thought dissent could come from  someone disappointed with future                                                               
ranking of  a project  or a future  dispute between  the governor                                                               
and the legislature.                                                                                                            
                                                                                                                                
CHAIR  P. WILSON  related that  she has  "flagged" this  item for                                                               
further review.                                                                                                                 
                                                                                                                                
REPRESENTATIVE JOHNSON  offered his  support to  have legislative                                                               
participation  since  legislators  could provide  a  conduit  and                                                               
communication between  the proposed  ATIFAC and  the public.   He                                                               
suggested that the issue would be a separation of powers issue.                                                                 
                                                                                                                                
MR. CANTOR agreed that it is a separation of powers issue.                                                                      
                                                                                                                                
1:23:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON asked whether  there would be a difference                                                               
between an ex-officio  member and an appointed  member serving on                                                               
the proposed ATIFAC.                                                                                                            
                                                                                                                                
MR.  CANTOR recalled  that one  legal  opinion previously  issued                                                               
related to an ex-officio arrangement  in which members considered                                                               
capitol development  in Juneau,  which was  considered fine.   He                                                               
stated  the Knik  Arm Bridge  and Toll  Authority has  non-voting                                                               
legislative  members and  the attorney  general's office  did not                                                               
issue an opinion, but thus far no one has challenged the matter.                                                                
                                                                                                                                
CHAIR  P. WILSON  speculated that  more controversy  would likely                                                               
result over a specific project or town.                                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSON asked for an  "off the cuff" legal opinion                                                               
to gain a sense of the matter.                                                                                                  
                                                                                                                                
MR. CANTOR responded  that he is not prepared to  answer, but the                                                               
factors the Department  of Law would review would  be whether the                                                               
legislator would  "carry more weight" in  the executive function.                                                               
The Department  of Law would  look at the composition  and duties                                                               
of  the proposed  advisory council,  and whether  the legislators                                                               
would "carry more  weight" on the proposed  advisory council than                                                               
they currently do in the legislature.                                                                                           
                                                                                                                                
REPRESENTATIVE MUNOZ commented  that this is an area  of the bill                                                               
that troubles her.                                                                                                              
                                                                                                                                
REPRESENTATIVE JOHNSON asked for a  formal legal opinion based on                                                               
the discussion and to consider  if the legislators serving on the                                                               
proposed ATIFAC  were ex-officio members, what  effect that might                                                               
have on  the legal  opinion.  He  said he thought  that may  be a                                                               
solution  to provide  input to  the legislature  without "running                                                               
afoul" of the constitutional issues.                                                                                            
                                                                                                                                
CHAIR P. WILSON  commented that she is not planning  on moving HB
329 today.                                                                                                                      
                                                                                                                                
MS. ROONEY  related that the  drafters raised the issue,  but the                                                               
bill drafters were  comfortable since the report  was reviewed by                                                               
the  governor.   She  agreed  that the  formal  opinion would  be                                                               
useful.                                                                                                                         
                                                                                                                                
1:29:22 PM                                                                                                                    
                                                                                                                                
TOM  GEORGE, Alaska  Representative, Aircraft  Owners and  Pilots                                                               
Association, offered his support for  the concept of the proposed                                                               
dedicated  transportation fund.   He  expressed concern  with the                                                               
allocation between modes and the  current proposed composition of                                                               
the  council.   He stated  that his  organization prefers  not to                                                               
have  legislators   serve  on   the  proposed   advisory  council                                                               
(ATIFAC).   He  said  he would  also like  to  probe whether  the                                                               
proposed ATIFAC is comprised of  too many state employee members.                                                               
He suggested  the sponsor hold HB  329 in committee.   He further                                                               
suggested  that the  committee conduct  a  series of  stakeholder                                                               
meetings during the  legislative interim to work  through some of                                                               
the issues.   He thought that the process would  result in a plan                                                               
that could be  used to get the  proposed constitutional amendment                                                               
passed.                                                                                                                         
                                                                                                                                
1:31:49 PM                                                                                                                    
                                                                                                                                
WHITNEY  BREWSTER, Director,  Division of  Motor Vehicles  (DMV),                                                               
Department of Administration (DOA),  stated that conceptually the                                                               
Division of  Motor Vehicles does  not oppose  HB 329 in  any way.                                                               
She pointed out that almost  all of the DOT&PF appropriations are                                                               
funded through  receipts supported services, which  means the DMV                                                               
is supported by its fees,  and any additional funds are deposited                                                               
to  the General  Fund (GF).   She  cautioned if  all of  revenues                                                               
collected from vehicle registration  fees were transferred to the                                                               
proposed  dedicated transportation  fund that  the DMV  could not                                                               
operate.   She said the  DMV does not  want to inhibit  the DMV's                                                               
revenue collection  or jeopardize  its ability  to carry  out the                                                               
DMV's  statutory  obligations.     She  suggested  the  committee                                                               
consider  funding   the  DMV's  costs  first,   and  deposit  the                                                               
remainder of  the funds to the  proposed dedicated transportation                                                               
fund.                                                                                                                           
                                                                                                                                
CHAIR P. WILSON related she  has held some conversations with the                                                               
Department of Revenue and expressed  her willingness to amend the                                                               
bill to address the concern raised by the DMV.                                                                                  
                                                                                                                                
1:34:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  whether  the DMV  uses  the  same                                                               
process for capital budget items that everyone else uses.                                                                       
                                                                                                                                
MS.  BREWSTER  responded  yes,  that the  DMV  uses  the  typical                                                               
capital budget process for capital expenditures.                                                                                
                                                                                                                                
REPRESENTATIVE   JOHNSON   asked   whether  the   DMV's   capital                                                               
expenditures  would   entail  software  and  hardware,   but  not                                                               
typically buildings.                                                                                                            
                                                                                                                                
MS. BREWSTER  answered yes.   She stated that the  DMV's projects                                                               
are  primarily requests  for hardware  and  software and  similar                                                               
types of products.                                                                                                              
                                                                                                                                
REPRESENTATIVE  P.   WILSON  related  that  the   department  has                                                               
requested $13 million in the CIB to upgrade computers.                                                                          
                                                                                                                                
REPRESENTATIVE  JOHNSON stated  his  desire to  have the  request                                                               
clarified  for  the  record  since   he  serves  on  the  finance                                                               
subcommittee.                                                                                                                   
                                                                                                                                
1:35:56 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON stated she  would hold public testimony  open on                                                               
HB 329.                                                                                                                         
                                                                                                                                
1:36:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PETERSEN referred to  Section 3, and asked whether                                                               
vehicle registration  fees would  be appropriated  to the  DMV or                                                               
how that would be handled.                                                                                                      
                                                                                                                                
CHAIR P. WILSON related her intention to amend the bill to                                                                      
provide for the DMV operating funds to be extracted from the                                                                    
fees.                                                                                                                           
                                                                                                                                
MR. RICHARDS said he did not have any comments at this time.                                                                    
                                                                                                                                
[HB 329 was held over.]                                                                                                         
                                                                                                                                
1:38:21 PM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
HB 329 Ver K.pdf HTRA 2/25/2010 1:00:00 PM
HB 329