Legislature(2021 - 2022)SENATE FINANCE 532

02/14/2022 09:00 AM Senate FINANCE

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Audio Topic
09:02:23 AM Start
09:03:51 AM Economic Outlook: Moody's Analytics
10:00:47 AM SB168
10:47:21 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Economic Outlook TELECONFERENCED
Moody's Analytics
+ SB 168 DONATIONS/GIFTS FOR DOT&PF SIGNAGE TELECONFERENCED
Heard & Held
-- Invited Testimony --
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 168                                                                                                           
                                                                                                                                
     "An Act  relating to program receipts;  and relating to                                                                    
     the acceptance of gifts, donations,  and grants for the                                                                    
     purpose  of  providing  signage for  assets  under  the                                                                    
     control of the Department  of Transportation and Public                                                                    
     Facilities."                                                                                                               
                                                                                                                                
10:00:47 AM                                                                                                                   
                                                                                                                                
SENATOR ROBERT  MYERS, SPONSOR, introduced  the legislation.                                                                    
He  stated  that  the  bill would  give  the  Department  of                                                                    
Transportation  and  Public  Facilities  (DOT)  the  receipt                                                                    
authority  to take  donations to  put up  signage after  the                                                                    
legislature names a project.                                                                                                    
                                                                                                                                
10:01:27 AM                                                                                                                   
                                                                                                                                
DAWSON MANN,  STAFF, SENATOR MYERS, discussed  the Sectional                                                                    
Analysis (copy on file):                                                                                                        
                                                                                                                                
     Section 1: AS 37.05.146(c) Page 1, Lines 5-7                                                                               
     This   section  adds   gifts,  donations,   and  grants                                                                    
     received  by  the   Department  of  Transportation  and                                                                    
     Public   Facilities  to   the  definition   of  program                                                                    
     receipts  and non-general  fund program  receipts found                                                                    
     in  the  Fiscal  Procedures   Act  in  accordance  with                                                                    
     section 2 of this bill.                                                                                                    
                                                                                                                                
     Section 2:  AS 44.42.060  Page 1,  Lines 8-14,  Page 2,                                                                    
     Lines 1-3                                                                                                                  
     This  section  adds  that the  department  may  receive                                                                    
     gifts,  donations,  and  grants in  accordance  with  a                                                                    
     memorandum of understanding with  the donor party. This                                                                    
     section also  outlines that the  funds may not  be used                                                                    
     until the necessary funds have  been collected from the                                                                    
     donor.                                                                                                                     
                                                                                                                                
Senator  von Imhof  queried the  process  for funneling  the                                                                    
money.                                                                                                                          
                                                                                                                                
Senator  Myers replied  that the  intention was  for DOT  to                                                                    
partner with  an entity for administration  then deliver the                                                                    
funds to DOT for sign materials and labor.                                                                                      
                                                                                                                                
Senator von  Imhof surmised that  the money would  go toward                                                                    
the plaque and not DOTs bureaucracy.                                                                                            
                                                                                                                                
Senator Myers agreed.                                                                                                           
                                                                                                                                
Co-Chair Stedman  remarked that there was  sometimes signage                                                                    
for  trails  through  the Department  of  Natural  Resources                                                                    
(DNR). He  felt that there  should be a discussion  with DNR                                                                    
on  that issue.  He pointed  out that  safety issues  should                                                                    
also be addressed, such as crosswalks.                                                                                          
                                                                                                                                
10:06:48 AM                                                                                                                   
                                                                                                                                
Senator Olson wondered whether the  intention was mainly for                                                                    
land  transportation corridors,  or  whether  the bill  also                                                                    
included airports.                                                                                                              
                                                                                                                                
Senator Myers replied that bridges  would be the most common                                                                    
piece, but could be anything owned by DOT.                                                                                      
                                                                                                                                
10:07:52 AM                                                                                                                   
                                                                                                                                
ANDY    MILLS,    LEGISLATIVE   LIAISON,    DEPARTMENT    OF                                                                    
TRANSPORTATION   AND   PUBLIC  FACILITIES,   explained   the                                                                    
legislation and  the process  for how  DOT took  third party                                                                    
receipts.                                                                                                                       
                                                                                                                                
Co-Chair Stedman  queried the other  processes for  naming a                                                                    
DOT-owned entity.                                                                                                               
                                                                                                                                
Mr. Mills  replied that  there were other  ways to  name the                                                                    
bridges and other  corridors, and he agreed  to provide that                                                                    
information.                                                                                                                    
                                                                                                                                
10:11:01 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman  felt that it  used to  be rare to  put the                                                                    
naming into legislation.                                                                                                        
                                                                                                                                
Co-Chair Bishop requested every option for naming.                                                                              
                                                                                                                                
Senator  von   Imhof  commented  that  there   could  be  an                                                                    
amendment to  the bill to  include DNR naming.  She stressed                                                                    
the pertinence of addressing safety issues as well.                                                                             
                                                                                                                                
Senator  Olson  wanted  to ensure  that  non-state  entities                                                                    
would not have  to provide a fiscal note,  and therefore DOT                                                                    
would not have the grounds to reject a public proposal.                                                                         
                                                                                                                                
Mr.  Mills replied  that the  process for  naming would  not                                                                    
change in the bill.                                                                                                             
                                                                                                                                
Senator Olson asked  whether the bill created  an avenue for                                                                    
funds.                                                                                                                          
                                                                                                                                
10:15:34 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  replied in the negative.  He explained that                                                                    
the  bill allowed  entities  to donate  funds  to build  the                                                                    
sign.                                                                                                                           
                                                                                                                                
Senator Olson restated his question.                                                                                            
                                                                                                                                
Mr.  Mills  replied  that  the funds  received  were  for  a                                                                    
specific project.                                                                                                               
                                                                                                                                
Senator von Imhof wondered whether  the outline of costs for                                                                    
the  donating  entity   would  include  the  administration,                                                                    
actual signage, and labor.                                                                                                      
                                                                                                                                
10:17:06 AM                                                                                                                   
                                                                                                                                
DOM  PANNONE, ADMINISTRATIVE  SERVICES DIRECTOR,  DEPARTMENT                                                                    
OF TRANSPORTATION AND PUBLIC  FACILITIES, replied that there                                                                    
was a standard quoting process for the signs.                                                                                   
                                                                                                                                
Senator Wielechowski surmised that there  would need to be a                                                                    
legislative appropriation before receiving the funds.                                                                           
                                                                                                                                
Mr. Pannone  replied that the  bill created a  mechanism for                                                                    
DOT to create a future fiscal note with program receipts.                                                                       
                                                                                                                                
Co-Chair  Stedman  remarked   that  millions  and  sometimes                                                                    
billions of dollars were spent  annually on DOT, and queried                                                                    
the issue of the state paying for signage.                                                                                      
                                                                                                                                
Mr.  Pannone  replied that,  in  the  past in  bridge-naming                                                                    
bills, there was high scrutiny around the cost of the sign.                                                                     
                                                                                                                                
Co-Chair Bishop queried the process for replacement.                                                                            
                                                                                                                                
Mr.  Mills  replied that  the  cost  was often  rolled  into                                                                    
project costs that were in the surrounding area.                                                                                
                                                                                                                                
10:25:11 AM                                                                                                                   
                                                                                                                                
Co-Chair Bishop  felt that  most of the  bridge bills  had a                                                                    
fairly low fiscal note.                                                                                                         
                                                                                                                                
Co-Chair Stedman  explained the tracking of  fiscal notes in                                                                    
the legislature. He  felt that the small cost  of the naming                                                                    
bills did not have a large impact on the state budget.                                                                          
                                                                                                                                
10:29:23 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  wondered whether the  department would                                                                    
have the  authority to accept  a large gift  or organization                                                                    
to name a road or public facility.                                                                                              
                                                                                                                                
Mr. Mills  replied that the legislative  process would occur                                                                    
first.                                                                                                                          
                                                                                                                                
Senator von Imhof  wondered whether there were  ways to name                                                                    
a  bridge  that  the  legislature  would  not  be  aware  in                                                                    
advance.                                                                                                                        
                                                                                                                                
Mr. Mills  replied that he  was not aware of  that mechanism                                                                    
for naming.                                                                                                                     
                                                                                                                                
Senator von Imhof wondered whether  there should be a dollar                                                                    
threshold attached to the bill.  She remarked that sometimes                                                                    
the money was not an issue, but  rather it was a place for a                                                                    
person to put their emotions.                                                                                                   
                                                                                                                                
10:34:01 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:34:55 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:35:13 AM                                                                                                                   
                                                                                                                                
Senator  Wilson wondered  whether  DOT could  return to  the                                                                    
funders for replacement funds.                                                                                                  
                                                                                                                                
Mr. Pannone responded that DOT  paid for sign damages out of                                                                    
their operational budget. He did  not see DOT returning to a                                                                    
donor to ask for repair funds.                                                                                                  
                                                                                                                                
Senator  Wilson wondered  whether the  bill would  make that                                                                    
issue possible, because of the authorization.                                                                                   
                                                                                                                                
Mr. Pannone replied  that the bill only  added the donations                                                                    
to program receipts.                                                                                                            
                                                                                                                                
Co-Chair  Stedman asked  that DOT  present the  cost of  the                                                                    
signs over a five-year period.                                                                                                  
                                                                                                                                
Mr.  Mills replied  that in  the year  prior there  were two                                                                    
naming bills and accounted for  less than $20,000. He agreed                                                                    
to provide further information.                                                                                                 
                                                                                                                                
Co-Chair  Bishop stressed  that they  were already  existing                                                                    
signs.                                                                                                                          
                                                                                                                                
Senator von Imhof stressed that  there was already authority                                                                    
in statute to do what was proposed in the bill.                                                                                 
                                                                                                                                
10:40:10 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:42:06 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:42:16 AM                                                                                                                   
                                                                                                                                
Mr.  Pannone replied  that the  department could  accept the                                                                    
funds, but  the bill  would create a  fiscal note  to expend                                                                    
the funds.                                                                                                                      
                                                                                                                                
Co-Chair  Stedman  asked  how   much  money  had  come  from                                                                    
foundations  for  the  purpose intended  from  the  donating                                                                    
entity.                                                                                                                         
                                                                                                                                
Mr. Mills replied that the bill  codified a path for a third                                                                    
party payment.                                                                                                                  
                                                                                                                                
Senator  Wielechowski queried  liability  if the  department                                                                    
failed to follow the terms of the donation.                                                                                     
                                                                                                                                
Mr. Mills agreed to provide that information.                                                                                   
                                                                                                                                
Co-Chair Bishop OPENED and CLOSED public testimony.                                                                             
                                                                                                                                
10:46:46 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:47:01 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Bishop stated that the  afternoon's meeting will be                                                                    
cancelled.                                                                                                                      
                                                                                                                                
SB  168  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 168 v. A Sponsor Statement .pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
SB 168 Support Document 2.1.22.pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
SB 168 v. A Sectional Analysis.pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
STRA 2/1/2022 1:30:00 PM
SB 168
020822 Moodys_AK_020822.pdf SFIN 2/14/2022 9:00:00 AM
SB 168 Senate Finance Feb 14 - Responses DOTPF (2-24-2022).pdf SFIN 2/14/2022 9:00:00 AM
SFIN 3/14/2022 9:00:00 AM
SB 168