Legislature(2005 - 2006)BUTROVICH 205
02/17/2005 01:30 PM Senate TRANSPORTATION
| Audio | Topic |
|---|---|
| Start | |
| SB85 | |
| SB40 | |
| SB85 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| = | SB 85 | ||
| = | SB 40 | ||
SB 40-KUSKOKWIM PORT AUTHORITY
2:39:08 PM
CHAIR HUGGINS called Mr. Michael Black to testify in regards to
SB 40.
2:39:48 PM
MR. MICHAEL BLACK, director of the division of community
advocacy, Department of Community and Economic Development
(DCED), began testimony.
Senator Therriault rejoined the committee.
MR BLACK said the CDEC has studied SB 40 and finds it to be a
complicated piece of legislation. On behalf of the DCED he
offered the following comment:
Article 10 of the Alaska constitution encourages as a
matter of fundamental public policy the formation of
boroughs. We believe that SB 40 may discourage
formation of governments in the region proposed by the
Port Authority. As a matter of constitutional policy
we would prefer to see the residents of the area
exercise the opportunity to form a borough, which is
the general form of government that can serve a broad
range of needs. A borough can provide for development
and services defined by all members of the area
through a duly elected representative government.
Alaska Industrial Development and Export Authority (AIDEA)
supports infrastructure. Creation of a port authority is a
policy call for the committee but CDEC prefers borough
formation.
2:42:40 PM
SENATOR COWDERY asked Mr. Black his position on the concept of a
port authority.
MR BLACK voiced no objection to development under a regional
government.
SENATOR COWDERY asked whether the DCED was suggesting all the
communities should form a borough.
MR BLACK replied that would be one option or they could form
more than one.
2:45:33 PM
MR BLACK continued if a borough formed that relied upon a tax
base, revenue would be available for economic development. The
port authority would operate through revenue bonds.
SENATOR COWDERY asked whether he was in support of the Donlin
Creek mine.
MR BLACK said yes.
SENATOR GENE THERRIAULT said he is not aware of any steps to
form a borough.
MR BLACK advised there are discussions to that affect in the
area.
2:47:49 PM
SENATOR THERRIAULT stated the Legislature has a duty to sensibly
utilize states resources to the benefit of the people.
MR BLACK said it was the policy of DCED to encourage borough
formation.
SENATOR THERRIAULT asked Mr. Black whether the DCED was
concerned that taxes would be diverted to the port authority and
no longer available for a borough government.
MR BLACK said yes. They are also concerned with competing
organizations if no direct relationship is established.
2:50:34 PM
CHAIR HUGGINS noted formation of a borough is a long process.
Most Alaskans support resource development and the committee is
urged to go forward on the bill.
SENATOR COWDERY asked Mr. Black whether the DCED considers the
mine a major resource.
MR BLACK indicated it would be a significant economic
development opportunity.
2:51:55 PM
SENATOR COWDERY asked how this legislation differed from the Red
Dog Mine.
MR BLACK said the Red Dog owners sought creation of a borough.
The mining operation has been very supportive of a borough
government through tax payments. The difference is there was no
port authority established initially before the borough.
SENATOR COWDERY asked his view on the appointment process of the
port authority.
MR BLACK said that was up to the governor. There is concern that
some communities would have less ability to impact board
appointments.
SENATOR COWDERY said some of the local residents don't speak
English and live in their own world.
2:55:31 PM
CHAIR HUGGINS advised Mr. Black to stay on the line.
SENATOR THERRIAULT noted the governor's administration would
have an opportunity to look over SB 40 and offer advice.
2:57:33 PM
MR. PETER PUTZIER, senior assistant attorney general, Department
of Law (DOL), identified himself and offered to answer
questions.
SENATOR THERRIAULT asked Mr. Putzier whether he had a chance to
look through SB 40.
MR. PUTZIER said he has identified a few issues. There is a
potential violation of Article 2 Section 19. Some of the
communities may feel they are not adequately represented. Mr.
Black has already covered Article 10 in regards to formation of
a local government and the question of the role of the port
authority to that government. The powers of the port authority
are unclear in the bill. Finally, if the board members had any
financial holdings in the area it would raise a conflict of
interest issue. Ethics attorneys have verified that as a
legitimate concern.
3:00:21 PM
SENATOR THERRIAULT asked Mr. Putzier whether the issue of the
local or special act could be dealt with by the Legislature
playing the role of an unorganized assembly.
MR. PUTZIER did not know.
SENATOR COWDERY said the governor had the right to appoint board
members from any place in Alaska.
MR. PUTZIER noted AS 30.21.020(b) says the governor shall
appoint seven persons and shall solicit nominations from a
specific list of entities. On first read that interprets as
being a commandment to the governor to select individuals
nominated from specific entities. A simple language change could
clarify the intent.
3:02:56 PM
SENATOR THERRIAULT asked Senator Cowdery to get the legislative
drafters together with the DOL.
CHAIR HUGGINS stated importance to the state and the region to
continue to work with the administration on the bill.
CHAIR HUGGINS held SB 40 in committee.
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