Legislature(2005 - 2006)SENATE FINANCE 532

04/19/2005 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 142 REGIONAL SCHOOL BD LAND/BLDG OWNERSHIP TELECONFERENCED
Moved CSSB 142(L&C) Out of Committee
+ SB 160 STATE PROCUREMENT ELECTRONIC TOOLS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 131 WAGE & HOUR ACT: EXEC/PROF/ADMIN/SALES TELECONFERENCED
Scheduled But Not Heard
+= SB 70 CRIMES INVOLVING CONTROLLED SUBSTANCES TELECONFERENCED
Heard & Held
+= SB 100 ENHANCED 911 SURCHARGES TELECONFERENCED
Moved CSSB 100(FIN) Out of Committee
+= SB 112 TAX ON REAA RESIDENTS TELECONFERENCED
Heard & Held
                                                                                                                                
     CS FOR SENATE BILL NO. 142(L&C)                                                                                            
     "An Act relating to ownership of land by regional school                                                                   
     boards; and providing for an effective date."                                                                              
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Bunde,  the bill's  sponsor by request  of the Senate  Labor                                                            
and  Commerce  Committee,  stated   that  this  bill  would  correct                                                            
"conflicting  statutes  regarding the  ownership of  land for  State                                                            
airports".  While   "the  Legislature  clearly  intended   to  allow                                                            
regional  school  boards the  option  of  greater control  of  their                                                            
facilities  through acquisition  of title,  there is no record  that                                                            
the Legislature,  however, intended to do so at the  cost of federal                                                            
liability,  significant  loss of  federal  funding,  and a  degraded                                                            
state airport system".                                                                                                          
                                                                                                                                
Senator Bunde  noted that members'  bill packets include  a December                                                            
11, 2001 Department  of Law legal  opinion [copy on file]  addressed                                                            
to then-Commissioner   of Department  of Transportation  and  Public                                                            
Facilities  (DOT),  Joe Perkins,  that reviewed  the  intent of  the                                                            
Legislature  in regards  "to this  issue and  the conflicting  lands                                                            
needs".                                                                                                                         
                                                                                                                                
Senator Bunde,  reading from the Sponsor  Statement, stressed  that,                                                            
"several regional  schools are located on state properties,  some in                                                            
very close proximity  to active runways and airport  infrastructure.                                                            
At various times, regional  school boards have requested that DOT&PF                                                            
convey  full title  of the  airport land  to the  schools. This  has                                                            
caused confusion,  staff time in both  the Departments of  Education                                                            
and DOT&PF, as  well as attorney costs, to defend  DOT&PF's title to                                                            
its airport property."                                                                                                          
                                                                                                                                
Senator  Bunde emphasized  that the  State receives  "a substantial                                                             
amount  of money to  build and  maintain runways"  from the  Federal                                                            
Aviation Administration  (FAA). There was no Legislative  intent "to                                                            
breach FAA  grant agreements". This  bill would benefit the  public,                                                            
the regional  school boards, the Department  of Education  and Early                                                            
Development  and DOT  by clarifying  the  intent  of the  conveyance                                                            
language to exclude airport properties."                                                                                        
                                                                                                                                
JANE  ALBERTS, Staff  to  Senator Bunde,  directed  the Committee's                                                             
attention  to a  list of  areas  on a  handout titled  "REAAs  where                                                            
Airport/DOT needs  may overlap:" [copy on file], which  was provided                                                            
by Pamela Lewis  of the DOT. The handout  identifies areas  in which                                                            
"there  could  be  possible  conflicts  between  the  Department  of                                                            
Transportation  and  Public  Facilities   and  the  Regional  School                                                            
Boards".  It should be noted  however, that  there is no  indication                                                            
that a conflict  "might be  brewing" in any  of these areas  at this                                                            
time.                                                                                                                           
                                                                                                                                
Senator  Bunde read  the  list for  the  record: possible  areas  of                                                            
conflict  in  the Northern  Region  would  include  Anvik,  Bettles,                                                            
Galena, Noatak,  Pilot Station and Unalakleet; areas  in the Central                                                            
Region would  include Aniak,  Cold Bay, Illiamna,  Lime Village  and                                                            
Willow.                                                                                                                         
                                                                                                                                
Senator  Hoffman asked  the manner  through which  this legislation                                                             
would resolve the conflict.                                                                                                     
                                                                                                                                
Senator Bunde  responded that the bill would clarify  that the State                                                            
would "control  airport land and that the airport  land could not be                                                            
absorbed by the school district".                                                                                               
                                                                                                                                
Senator  Hoffman  asked  regarding  the situation  that  prompted  a                                                            
school district to seek title of the airport property.                                                                          
                                                                                                                                
NONA WILSON, Legislative  Liaison, Department of Transportation  and                                                            
Public  Facilities,  expressed  that one  example of  the  confusion                                                            
caused by the existing State Statute occurred when the Yukon-                                                                   
Koyukuk  Regional  School Board  made  an administrative  claim  for                                                            
school property at the  Bettles Airport in the year 2001. The school                                                            
in Bettles, which  was constructed in the 1970's,  "is very close to                                                            
the  active runway,  and  is, in  fact, partially  in  front of  the                                                            
building  restriction  line  (BRL).  A BRL  limits  construction  of                                                            
improvements  near  a runway  for  safety  purposes. The  school  is                                                            
actually located  in an area identified by DOT and  the FAA as being                                                            
needed for future aviation purposes".                                                                                           
                                                                                                                                
Ms. Wilson  continued that  during subsequent  discussions  with the                                                            
school  district,  DOT  "obtained  an  Attorney  General's  Opinion,                                                            
basically, in order to  protect the integrity of the airport". While                                                            
some  non-conflicting  BRL  areas  were  identified,  perimeter  and                                                            
runway safety  issues were, in accordance with FAA  guidelines, non-                                                            
negotiable.                                                                                                                     
                                                                                                                                
Ms.  Wilson informed  the  Committee  that similar  Rural  Education                                                            
Attendance  Area (REAA)  airport  title requests  were  made by  the                                                            
Aleutian Regional  School District near Cold Bay in  1986 and at the                                                            
Lake and Peninsula School  District in 1994. Rather than the purpose                                                            
of the bill being  to challenge school districts,  its purpose would                                                            
be  to  "rectify   some  language  that  has  created   some  sticky                                                            
situations in the past".                                                                                                        
                                                                                                                                
Senator Hoffman  voiced that,  while he understood  the position  of                                                            
DOT, he surmised  there must be safety  concerns on the part  of the                                                            
schools. To that  point, he asked that an opinion  on behalf of "the                                                            
school board's  interest" be provided; there must  be some education                                                            
concerns  as  otherwise   there  would  be  no  desire   to  disrupt                                                            
transportation  in those  areas.  A solution  might be  to move  the                                                            
location of the school.                                                                                                         
                                                                                                                                
Ms. Wilson deferred  to Ms. Lewis of DOT who was more  familiar with                                                            
the situations in the Northern communities.                                                                                     
                                                                                                                                
Senator Hoffman asked whether  a representative of the Department of                                                            
Education and Early Development  might be available to provide their                                                            
perspective as opposed to someone working for DOT.                                                                              
                                                                                                                                
Co-Chair  Green asked  whether  a local  community  city council  or                                                            
school board member might better provide the schools' position.                                                                 
                                                                                                                                
Senator Hoffman  replied that the Department of Education  and Early                                                            
Development  would  be able  to provide  information  regarding  the                                                            
situation for  each of the communities  on the aforementioned  list.                                                            
                                                                                                                                
Senator  Bunde,   Chair  of  the  Senate  Labor  &  Commerce   (L&C)                                                            
Committee,  conveyed  that the  Department  of Education  and  Early                                                            
Development  had raised  "no  interest or  concern"  during the  L&C                                                            
Committee hearings on this bill.                                                                                                
                                                                                                                                
Co-Chair Green asked whether  the Regional School Boards, the Alaska                                                            
Association  of School Boards,  or the Alaska  Municipal League  had                                                            
presented testimony to the L&C Committee.                                                                                       
                                                                                                                                
Senator Bunde replied in the negative.                                                                                          
                                                                                                                                
PAMALA LEWIS,  Statewide  Chief, Aviation  Leasing and Airport  Land                                                            
Development,  Department  of Transportation  and  Public  Facilities                                                            
testified  via  teleconference  from  offnet  site in  Fairbanks  to                                                            
provide insight to the  issues that might have prompted the Regional                                                            
School Boards to ask for  title to the airport property. The Bettles                                                            
request occurred at a time  when "the school was fighting" to remain                                                            
open  due  to  a decline   in student  enrollment.   "The  community                                                            
desperately  wanted the  school to  stay open."  DOT had leased  the                                                            
land to the  school for several years;  however, "at some  point" in                                                            
the future, the building  might have to be relocated behind the BRL.                                                            
She speculated  that  the reason for  the title  request might  have                                                            
been an attempt  "to secure a place for them to retain  the school."                                                            
The issues  behind the  Cold Bay  or the Lake  and Peninsula  School                                                            
District  requests were unknown  to her. However,  she noted  that a                                                            
tremendous  amount of  DOT time and  resources were  exerted  in the                                                            
effort  of explaining  why  the  title to  that  land  could not  be                                                            
""relinquished".                                                                                                                
                                                                                                                                
9:23:24 AM                                                                                                                    
                                                                                                                                
Senator Hoffman clarified  that rather than his question being about                                                            
the issues  relating to the  relinquishing  of the title, which  was                                                            
the focus of this  bill, his question was in regards  to the "bigger                                                            
issue" of the  safety of the students in the schools.  "Students and                                                            
airplanes don't  mix." Therefore,  he questioned whether  any of the                                                            
school district  efforts were  an attempt to  address that  issue by                                                            
acquiring the  land so that such things as a fence  might be erected                                                            
to further students' safety. Student safety should be a concern.                                                                
                                                                                                                                
9:24:38 AM                                                                                                                    
                                                                                                                                
Ms.  Lewis  expressed that  she  "absolutely  agreed"  with  Senator                                                            
Hoffman about  the safety issue. However, to her knowledge,  none of                                                            
the requests  were based on the premise  of acquiring land  to erect                                                            
fences or an effort  to make the facility safer. To  that point, the                                                            
Department  of  Transportation   and  Public  Facilities  has  taken                                                            
responsibility  for such things  as erecting  fences to address  the                                                            
"serious concerns of runways and students not mixing".                                                                          
                                                                                                                                
9:25:47 AM                                                                                                                    
                                                                                                                                
Senator  Hoffman asked,  therefore,  about the  "conflict" that  had                                                            
prompted  the  school   districts  to  further  the  airport   title                                                            
requests.                                                                                                                       
                                                                                                                                
Senator Bunde  speculated that a school district might  have desired                                                            
to control the airport  land, which in many communities might be the                                                            
primary means  of accessing a community, in speculation  of it being                                                            
"a potential revenue generator".                                                                                                
                                                                                                                                
Senator  Bunde  noted  that,  in  addition  to  the  student  safety                                                            
concern, another safety  concern is that walkers and things as four-                                                            
wheelers often utilize runways for recreation.                                                                                  
                                                                                                                                
Senator Bunde remarked  that the State has two choices in regards to                                                            
this bill:  either continue  its ownership  of the  airport land  or                                                            
return  the money  that  the  federal government  "has  provided  to                                                            
develop  that airport".  Fencing  the airport  area  to address  the                                                            
safety issue would be the "cheaper" of the two options.                                                                         
                                                                                                                                
9:27:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  understood that the bill's primary  purpose would be                                                            
to  resolve  the  conflict  that  exists  between  the  federal  FAA                                                            
policies and State Statute  regarding the conveyance of airport land                                                            
titles.                                                                                                                         
                                                                                                                                
Senator  Bunde  concurred.  However, the  safety  issue  is a  valid                                                            
concern.  One manner  to  address  that issue  would  be to  control                                                            
access  to  the airport  land.  DOT  might desire  to  address  that                                                            
concern by erecting fences.  That would be a separate discussion, as                                                            
the local community might not desire that.                                                                                      
                                                                                                                                
9:28:13 AM                                                                                                                    
                                                                                                                                
Co-Chair  Green pointed  out that it  is common  for things  such as                                                            
schools,  businesses, the  runway, and other  major components  of a                                                            
village to be built in concentrated areas in small communities.                                                                 
                                                                                                                                
9:28:44 AM                                                                                                                    
                                                                                                                                
Senator  Olson  asked  whether  the  BRL  specifications  have  been                                                            
altered over time.                                                                                                              
                                                                                                                                
9:28:58 AM                                                                                                                    
                                                                                                                                
Ms. Lewis  responded  that the  BRL was  revised in  the 1980s  as a                                                            
result  of  a new  master  plan  being  developed  for  the  Bettles                                                            
airport. The FAA approved  that master plan and "a grant for further                                                            
development"  of the airport was also  approved shortly thereafter.                                                             
She was unsure of the conditions of the original BRL.                                                                           
                                                                                                                                
Senator  Olson understood  that the current  Bettles' BRL  specifies                                                            
that the State owns title  to land up to 750 feet from the middle of                                                            
the runway.                                                                                                                     
                                                                                                                                
Ms. Lewis concurred.                                                                                                            
                                                                                                                                
Senator  Olson  asked whether  different  classes  of  airports  had                                                            
differing BRL  standards. Some airports have the capacity  to handle                                                            
large  aircraft such  as jets while  others  could only accommodate                                                             
small aircraft.                                                                                                                 
                                                                                                                                
Ms. Lewis affirmed that there are different classes of airports.                                                                
                                                                                                                                
Senator  Olson  asked  whether  this would  result  in  there  being                                                            
different BRL parameters.                                                                                                       
                                                                                                                                
Ms. Lewis  was uncertain as  to whether the  type of airport  or its                                                            
classification  was  pertinent  to  this discussion.  This  bill  is                                                            
limited to addressing  the title "to the land underlying  the school                                                            
facilities".   She  deferred   to  Kip  Knudson,   the  DOT   Deputy                                                            
Commissioner of Aviation to address that question.                                                                              
                                                                                                                                
Senator  Olson asked  whether the  Northwest  Arctic Borough  School                                                            
District,  the Lower Yukon  School District,  and the Bering  Strait                                                            
School District,  which are in his election district,  were notified                                                            
about this  legislation. He  also distributed  a map [copy  on file]                                                            
depicting that  the community of Noatak's school is  adjacent to its                                                            
airport.                                                                                                                        
                                                                                                                                
Ms. Lewis remarked  that rather than separate notices  being sent to                                                            
the   school   districts,   routine   notification   regarding   the                                                            
legislation was conducted.                                                                                                      
                                                                                                                                
Senator  Olson surmised therefore  that the  three school  districts                                                            
"have not been notified of this possible action."                                                                               
                                                                                                                                
Ms. Lewis reiterated  that routine notification procedures  had been                                                            
conducted.                                                                                                                      
                                                                                                                                
9:32:08 AM                                                                                                                    
                                                                                                                                
KIP  KNUDSON,  Deputy   Commissioner  of  Aviation,   Department  of                                                            
Transportation  and Public  Facilities, voiced  concern that  safety                                                            
issues were  being interjected  into the bill  at hand. Despite  the                                                            
State's massive  land holdings, there is extremely  high competition                                                            
for buildable  land in village  areas. The  fact that airports  have                                                            
some of  the best land in  the villages is  part of the reason  that                                                            
some schools are located  on airport property. No other economically                                                            
feasible building  site might have  been available. Such  situations                                                            
have led  to there being  "an uneasy relationship"  between  DOT and                                                            
the villages.                                                                                                                   
                                                                                                                                
Mr.  Knudson stated  that  safety  concerns  have been  an  on-going                                                            
issue. DOT would request  that schools be built elsewhere were other                                                            
building sites an option.                                                                                                       
                                                                                                                                
Mr. Knudson shared  that prior to the introduction  of this bill, he                                                            
had discussed  the issue with Eddy Jeans, Director,  School Finance,                                                            
Department of  Education and Early Development. Mr.  Jeans contacted                                                            
the affected school districts  about the proposed bill; no "negative                                                            
feedback" had been received.                                                                                                    
                                                                                                                                
Mr. Knudson reiterated  that the focus of the bill is limited to the                                                            
issue of land  title. No request would be made to  a school district                                                            
to  remove a  school  from the  airport  land, unless,  through  the                                                            
development  of a long-range  plan, another  feasible site  might be                                                            
identified.  Were that the  case, DOT would  assist in facilitating                                                             
that option in conjunction  with any construction project that might                                                            
be occurring.                                                                                                                   
                                                                                                                                
Senator  Bunde,  referencing  the  Noatak map  provided  by  Senator                                                            
Olson, spoke  to the beach  erosion issue  facing the community.  He                                                            
noted that relocation  of the school was included  in the long-range                                                            
plan to address the erosion issue.                                                                                              
                                                                                                                                
Senator Olson  clarified that a river rather than  the ocean was the                                                            
cause of the erosion being  experienced in Noatak. To that point, he                                                            
whether Mr.  Knudson needed a copy  of the Noatak map for  reference                                                            
purposes.                                                                                                                       
                                                                                                                                
9:34:50 AM                                                                                                                    
                                                                                                                                
Mr. Knudson responded  that he was "painfully aware"  of the erosion                                                            
issue facing the  Noatak community. The dilemma was  whether to move                                                            
the school for $20 or $30  million or to move the airport for $20 or                                                            
$30 million.                                                                                                                    
                                                                                                                                
Senator Olson  noted that, as depicted  on the map, the erosion  was                                                            
projected to encroach  upon the airport's land by  the year 2010. He                                                            
asked  therefore  whether  future  plans might  include  moving  the                                                            
airport.                                                                                                                        
                                                                                                                                
Mr.  Knudson  informed   the  Committee  that  the  Department   was                                                            
currently developing  a master plan. Alternatives,  including moving                                                            
or retaining  the airport, were being  evaluated. Nonetheless,  "the                                                            
school is the most pressing issue at the moment".                                                                               
                                                                                                                                
Co-Chair Green  understood that the State, specifically  DOT, had no                                                            
intention of transferring  title of property to any  regional school                                                            
board, primarily  in order to avoid litigation and  the repayment of                                                            
FAA funding.  Thus, the issue at hand  is an attempt to address  the                                                            
federal and State conflict.  While Legislators would like to resolve                                                            
the issue to better their  own district, "the greater cause of what"                                                            
is being addressed in this legislation must prevail.                                                                            
                                                                                                                                
Senator Olson asked Mr.  Knudson how non-support of this legislation                                                            
would affect federal funding of the identified Rural airports.                                                                  
                                                                                                                                
Mr. Knudson  assured that  "at this point",  DOT is "not at  risk of                                                            
losing federal  funds". The issue would be to resolve  "the conflict                                                            
and  confusion  that  arises  between  the  State  Statute  allowing                                                            
districts to claim  title to State land and the federal  requirement                                                            
that we  maintain our  airport boundaries".  This legislation  would                                                            
"resolve a nagging bureaucratic problem."                                                                                       
                                                                                                                                
Co-Chair  Wilken  moved  to  report the  bill  from  Committee  with                                                            
individual recommendations and accompanying fiscal notes.                                                                       
                                                                                                                                
There  being  no  objection,  CS  SB  142(L&C)   was  REPORTED  from                                                            
Committee with  zero Fiscal Note #1, dated March 18,  2005, from the                                                            
Department of  Education and Early Development and  zero Fiscal Note                                                            
#2, dated April  4, 2005, from the Department of Transportation  and                                                            
Public Facilities.                                                                                                              
                                                                                                                                

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