HOUSE BILL NO. 561                                                                                                            
                                                                                                                                
     An Act  providing for  and relating  to the issuance  of                                                                   
     general obligation  bonds in  a principal amount  of not                                                                   
     more than $1,000,000 for  the purpose of paying the cost                                                                   
     of state  transportation projects; and providing  for an                                                                   
     effective date.                                                                                                            
                                                                                                                                
Vice-Chair Meyer  MOVED to RESCIND  previous action  taken in                                                                   
passing CS  HB 561 (FIN)  out of Committee.   There  being NO                                                                   
OBJECTION, action was rescinded.                                                                                                
                                                                                                                                
Vice-Chair Meyer  MOVED to RESCIND  previous action  taken by                                                                   
the  Committee in  adopting  Amendment #1.    There being  NO                                                                   
OBJECTION, the action was rescinded.                                                                                            
                                                                                                                                
Co-Chair Williams  MOVED to ADOPT  the Revised  Amendment #1.                                                                   
(Copy on File).                                                                                                                 
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   WILLIAMS,                                                                   
explained the new  Amendment #1, which would  add, change and                                                                   
delete  previous  projects,  changing the  total  request  to                                                                   
$93,280 million dollars.  He highlighted the changes:                                                                           
                                                                                                                                
     ·    Anchorage - Jewel Lake Road & Strawberry Road                                                                         
          Signalization                 inclusion $1,100,000                                                                    
     ·    Skagway - Harbor Deferred Maintenance                                                                                 
                                         deletion $1,300,000                                                                    
     ·    Donlin Creek - Crooked Creek/Donlin Creek Access                                                                      
          Road                          inclusion $2,000,000                                                                    
     ·    Changed Statewide Harbor Deferred Maintenance                                                                         
                       Change  from $3,5000,000 to $4,800,000                                                                   
                                                                                                                                
Vice-Chair Meyer  noted that  the distribution list  appeared                                                                   
"out of balance".                                                                                                               
                                                                                                                                
Representative   Croft   believed   that   there   would   be                                                                   
significant  balance  achieved   in  consolidation  with  the                                                                   
education   bond   package   proposed,   and   includes   the                                                                   
University.  He  pointed out that the projects  proposed were                                                                   
addressing critical  needs in Anchorage.  He  reiterated that                                                                   
it  is   important  to  look   at  the  whole   package  when                                                                   
determining the balance.                                                                                                        
                                                                                                                                
Representative  Chenault commented  that there  is a  federal                                                                   
earmark match for  the State Highway System in  the amount of                                                                   
$15  million dollars  to match  the $280  million dollars  of                                                                   
federal  projects.     Mr.   Armstrong  responded   that  the                                                                   
distribution percentage was removing  the $15 million dollars                                                                   
from the  top and  applying the  percentages  used in HB  525                                                                   
from  the FY03  budget.   Using  that calculation,  Anchorage                                                                   
will receive the same amount it did through HB 525.                                                                             
                                                                                                                                
Co-Chair Williams  questioned  the Department's rational  for                                                                   
changing the numbers in the State highway system projects.                                                                      
                                                                                                                                
JOHN    MACKINNON,    DEPUTY    DIRECTOR,    DEPARTMENT    OF                                                                   
TRANSPORTATION  AND  PUBLIC FACILITIES,  explained  that  the                                                                   
Department does not know what  the projects will be and there                                                                   
has  been no  federal  authorization  to date.    There is  a                                                                   
policy  in the Department  that  the State  makes a match  on                                                                   
State owned  projects  and on the  non-State owned  projects,                                                                   
the  communities  are encouraged  to  make  the match.    The                                                                   
additional  language clarifies  that  the  earmarks would  be                                                                   
State  owned   projects.     The  Department  requested   the                                                                   
language.                                                                                                                       
                                                                                                                                
Representative  Croft  observed  that  by  removing  the  $15                                                                   
million  dollars,  Anchorage  has approximately  33%  of  the                                                                   
designated projects.                                                                                                            
                                                                                                                                
There  being  NO  OBJECTION, the  revised  Amendment  #1  was                                                                   
adopted.                                                                                                                        
                                                                                                                                
Vice  Chair   Meyer  asked   if  the   goal  in  making   the                                                                   
determinations  was to  keep the  amount  under $100  million                                                                   
dollars.  Co-Chair Williams responded  that it was his intent                                                                   
to keep all numbers as low as possible.                                                                                         
                                                                                                                                
Representative Foster  MOVED to report CSHB 561  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note and the previous  adopted committee                                                                   
report.  There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
CS HB 561 (FIN) was reported out of Committee with a "do                                                                        
pass" recommendation and with a new fiscal note by the                                                                          
Department of Revenue.