03/17/2016 09:00 AM Senate STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| SB144 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 1 | TELECONFERENCED | |
| += | SB 114 | TELECONFERENCED | |
| += | SB 128 | TELECONFERENCED | |
| *+ | SB 144 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE STATE AFFAIRS STANDING COMMITTEE
March 17, 2016
8:59 a.m.
MEMBERS PRESENT
Senator Bill Stoltze, Chair
Senator John Coghill, Vice Chair
Senator Charlie Huggins
Senator Lesil McGuire
Senator Bill Wielechowski
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 144
"An Act relating to relocation assistance for federally assisted
projects and programs; and providing for an effective date."
- HEARD & HELD
SENATE JOINT RESOLUTION NO. 1
Proposing amendments to the Constitution of the State of Alaska
relating to the Alaska permanent fund, establishing the earnings
reserve account, relating to the permanent fund dividend, and
requiring the permanent fund dividend be at least equal to the
amount that would be calculated under current law.
- BILL HEARING CANCELED
SENATE BILL NO. 128
Proposing amendments to the Constitution of the State of Alaska
relating to the Alaska permanent fund, establishing the earnings
reserve account, relating to the permanent fund dividend, and
requiring the permanent fund dividend be at least equal to the
amount that would be calculated under current law.
- BILL HEARING CANCELED
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 114
Proposing amendments to the Constitution of the State of Alaska
relating to the Alaska permanent fund, establishing the earnings
reserve account, relating to the permanent fund dividend, and
requiring the permanent fund dividend be at least equal to the
amount that would be calculated under current law.
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 144
SHORT TITLE: RELOCATION ASSISTANCE FOR FED. PROJ/PROG
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/19/16 (S) READ THE FIRST TIME - REFERRALS
01/19/16 (S) STA, FIN
03/17/16 (S) STA AT 9:00 AM BUTROVICH 205
WITNESS REGISTER
STEVE HATTER, Deputy Commissioner
Alaska Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Provided an overview and answered questions
regarding SB 144.
HEATHER FAIR, State Right-of-Way Chief
Alaska Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding SB 144.
ACTION NARRATIVE
8:59:06 AM
CHAIR BILL STOLTZE called the Senate State Affairs Standing
Committee meeting to order at 8:59 a.m. Present at the call to
order were Senators Coghill, Huggins, Wielechowski, and Chair
Stoltze.
SB 144-RELOCATION ASSISTANCE FOR FED. PROJ/PROG
8:59:29 AM
CHAIR STOLTZE announced the consideration of SB 144.
9:00:03 AM
STEVE HATTER, Deputy Commissioner, Alaska Department of
Transportation and Public Facilities (DOT), Juneau, Alaska,
explained that the purpose of SB 144 was to bring Alaska's
right-of-way statute in compliance with new federal law. He said
when right-of-ways are acquired for public transportation
purposes, federal law requires the department to compensate
property owners: value of the property as well as providing
appropriate relocation benefits to displaced families,
businesses, and farms.
He set forth that SB 144 was about relocation assistance. He
revealed that under the federal initiative known as "Moving
Ahead for Progress in the 21st Century Act" (MAP-21), qualifying
for reimbursement would be easier and the maximum relocation
assistance available for affected parties increased. He noted
that MAP-21 was passed by the federal government in 2012.
He summarized that SB 114 would provide greater equity to
Alaskans impacted by relocation, bring the department into full
compliance with MAP-21, and clarified the department's
relocation assistance for DOT project teams, contractors, and
regulators.
9:01:40 AM
CHAIR STOLTZE asked that Mr. Hatter address projects that might
be impacted by SB 144.
MR. HATTER answered that SB 144 would have applied to a few
projects from the past. He explained that DOT tries to minimize
relocating people. He said DOT project designers and engineers
try very hard not to impact people's lives.
CHAIR STOLTZE asked that a specific project involving relocation
be addressed.
9:02:55 AM
HEATHER FAIR, State Right-of-Way Chief, Alaska Department of
Transportation and Public Facilities, Juneau, Alaska, replied
that she cannot think of a project that occurred in the past two
years. She reiterated that DOT tries not to relocate families,
businesses, or farms.
CHAIR STOLTZE pointed out that challenges had occurred in the
past on making property owners whole. He remarked that he found
it hard to believe that with all of the projects the state had
done in the past that DOT representatives could not identify
projects with challenges. He noted that the committee was
pushing through the legislation as a DOT priority.
MR. HATTER specified that SB 144 would allow for compliance with
higher federal limits and provide DOT with an opportunity to be
fairer to Alaskans within the federal statute.
CHAIR STOLTZE asked if there had been situations where the state
treasury made people more whole through the general fund,
appropriations, or DOT appropriations.
MR. HATTER answered that he was not aware of any cases.
9:05:20 AM
MS. FAIR detailed that incidences had occurred where general
funds were used to pay for "administrative settlements" in order
to minimize legal costs for acquisition or relocation cases that
went beyond fair market value.
CHAIR STOLTZE noted that the Briggs Bridge built over Eagle
River in 1992 had right-of-way acquisitions that displaced
people during an economic downturn. He remarked that SB 144
would provide DOT with more leverage for relocation, but
inquired if consideration was given to relocation projects
during a downturn in the economy.
9:07:07 AM
SENATOR MCGUIRE joined the committee meeting.
SENATOR HUGGINS noted that the time frame for making
displacement payments was reduced from 180 days to 90 days. He
asked that Mr. Hatter address the change.
MR. HATTER answered that the time change was a result of MAP-21
and DOT's intent to comply with federal law.
SENATOR HUGGINS asked that Ms. Fair address sections in the bill
that referenced mortgage and expense payments for a displaced
person.
9:09:16 AM
MS. FAIR explained that the federal code set forth assistance
for mortgage and expense payments based upon a person that owns
versus a tenant that rents.
SENATOR HUGGINS asked Ms. Fair to verify that the provisions
would provide aid to the property owner.
MS. FAIR answered correct. She specified that the provisions
were designed to allow more people to qualify for benefits.
SENATOR WIELECHOWSKI noted that there was a zero fiscal note in
the operating budget, but Ms. Fair mentioned that the increased
relocation costs would be absorbed within the existing capital
program funding and the bill was retroactive to October 1, 2014.
He asked how much the state would be paying out from 2014 until
the present.
MS. FAIR answered that the amount was estimated to be $12,000.
SENATOR WIELECHOWSKI asked if Mr. Hatter had a sense of what the
annual cost would be.
9:10:58 AM
MR. HATTER answered that estimating for the future was
difficult. He reiterated that project designers would work very
hard not to relocate people.
CHAIR STOLTZE noted that Section 3 and Section 4 deleted expense
limits of $10,000 and $22,500. He asked what the state's
exposure would be due to the limit deletion.
MR. HATTER answered that limitations were dictated by the
federal limits and changes would occur through federal
legislation. He specified that the deletion would not require
DOT to come back and update legislation each time the federal
limits are changed.
9:13:04 AM
CHAIR STOLTZE noted that local governments had administrated
some road projects in the past. He asked if DOT intended to have
the legislation apply to entirely state-funded projects as well.
MS. FAIR answered yes. She asserted that the intent was to treat
everyone fairly for both state and federal projects.
CHAIR STOLTZE asked if possible litigation costs would fall into
a relocation expense.
MR. HATTER explained that the relocation expense was specific to
moving and litigation was a separate piece.
CHAIR STOLTZE asked if an activity like raising livestock on a
farm would have an impact on whether a project moves forward due
to relocation issues.
9:15:39 AM
SENATOR COGHILL noted that Section 2 in the bill would repeal
and reenact fixed payments for moving expenses. He asked that
Ms. Fair explain Section 2.
MS. FAIR answered that Section 2 simplified the language in
reference to federal code. She said the change lessens the
opportunity for misinterpretation or duplication of errors. She
detailed that the same provisions were still in place, but the
federal government increased the amount that someone can receive
in terms of actual moving expenses in a onetime-fixed payment.
She specified that SB 144 allows DOT to not have to come back to
the Legislature when changes were made to the federal code.
9:17:28 AM
SENATOR COGHILL asked what would happen if the code number was
changed.
MR. HATTER explained that DOT worked closely with the Federal
Highway Administration to make sure the state complied. He
reiterated that the intent was to update the statute so that DOT
was in compliance and did not have to come back year after year
as things change.
SENATOR COGHILL noted that he feared linking to federal code
because sometimes the state finds itself in awkward positions.
9:19:05 AM
CHAIR STOLTZE asked that DOT return to a future committee
meeting to address historical relocation issues. He specified
that the committee wants to know what the potential costs and
obligations are for the state.
MR. HATTER replied that DOT would comply with Chair Stoltze's
request.
9:21:29 AM
CHAIR STOLTZE announced that SB 144 would be held in committee.
9:22:07 AM
There being no further business to come before the committee,
Chair Stoltze adjourned the State Affairs Committee at 9:22 a.m.
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