SSTA-260507-1530

I'd like to call the Senate State Affairs Committee meeting to order. Let the record reflect that it is 3:30 on Thursday, May 7th, day 108 of the legislature. Please turn off all cell phones. We have present today Senator Gray Jackson, Senator Tilton, myself, Chair Kawasaki. We do have a forum to conduct business.

We do expect Senator Bjorkman and Senator Wilkowski to join us shortly. I would like to thank Carrie Tepeau from Senate Records and Kyla Tepeau as moderator with the Legislative Information Office. We have 6 total items on the agenda today. And we will work expediently to get them heard and moved. First, we have a second hearing on Senate Concurrent Resolution No.

11. That is Legislative Commission on State Seal. Sponsored by Senator Gary Stevens. I do see his staff here, Mr. Tim Lampkin, on Senate Concurrent Resolution 11. Did you have any last comments you'd like to make or summarize the bill?

Thank you, Mr. Chairman. For the record, Tim Lampkin, staff to Senator Stevens. Appreciate your due attention to this bill. I received a document from you earlier today I reviewed admirably. Senator Stevens, appreciate your support of this measure and look forward to seeing it worked on further in the future.

Thank you, Mr. Lampkin. I'm going to reopen public testimony for Senate Concurrent Resolution 11. Is there anybody who would like to testify on Senate Concurrent Resolution 11 who is either in the room or online?

Great. Seeing and hearing none. May I have a motion? Senator Tilton. Thank you, Mr. Chairman.

Mr. Chairman, I move SJR 11, Work Draft 34-LS1292/n to be reported out of committee with individual recommendations and attached fiscal note. Thank you, Senator Tilton. Are there any objections? Hearing and seeing none, Senate Joint Resolution 11, Work Draft 34-LS1292/n 9-2/n is reported from committee with individual recommendations and the attached fiscal notes. We will next move on to House Bill 214.

House Bill 214 is Motor Vehicles Proof of Insurance, SR-22. It's sponsored by Representative Elise Galvin. Representative Galvin is here. With her staff.

So let's see if you have— do you have any comments you would like to make before we reopen public testimony?

I don't have any comments before reopening public testimony. Great. Thank you. We will go ahead and reopen public testimony on 214. House Bill 214.

Is there anybody who'd like to testify here or online? Seeing and hearing none, we will bring it back to the committee and close public testimony and see if the sponsor of the bill, Representative Elise Galvin, would like to speak on the legislation. Thank you. One thing I wanted to call to your attention is just this morning you received another letter of testimony by an Alaskan, Miss Good. She's a longtime business owner, and I call this to your attention because She is a younger mom, experienced an accident again with a civil suit, ended up since 1987, she has been enduring the SR-22 certificate, 1987.

It's really a— I had no idea that she was experiencing this. This happens to be someone who I I know somewhat. She lives out in the valley, I believe. But I just wanted to call this to your attention, that she, as a lifelong Alaskan, urges this— urges this bill to pass because of her experience over the last 40 years and the failure of the current motor vehicle laws, and that she couldn't describe enough how important it is that we remove the bureaucratic forever penalties And she's using the word lifetime traps. She would like to restore fairness and improve efficiency.

And I just call that to your attention because it came in today and you might not have been able to see that. Again, it's by Alaskan Miss Good, and it should be submitted today in your file. If you'd like, I'm happy— if it would please the— Committee, I'd be happy to give you another recap of this bill, unless you have an understanding already, and then I'm happy to answer questions if you have any. I think we got a lot of the questions answered at the last hearing. We appreciate you and your staff, Lacey Matula.

Are there any other questions to come before the committee? Hearing and seeing none, may I have a motion? Senator Gray Jackson. Thank you, Mr. Chairman. Mr. Chairman, I move House Bill 214, Work Draft 34L as in Lima, S as in Sugar, 0602/i as in India, be reported out of committee with individual recommendation and attached fiscal note.

Thank you, Mr. Chairman. Thank you. Are there any objections? Hearing and seeing none, House Bill 214, that's work draft 34LS0602/i, is reported from committee with individual recommendations and the attached fiscal note. Thank you very much, Chairman.

Thank you, committee. Thank you, Representative. I wanted to note for the record that Senator Bjorkman did join us a while ago, and we'd like to next bring up House— I'm sorry, Senate Bill 204. Senate Bill 204 is entitled Sub-Teaching School Board Eligibility. It is sponsored by Senator Mike Cronk, who is with us today.

If you'd like to come forward and present the bill with your staff. Thank you, Mr. Chair. Senator Mike Cronk, Senate District R, with my staff, Paul Menke. Today, the number one priority in education should always be our children and our families.

In the conversation about how to improve our state's education system, simple yet meaningful reforms need to be thoroughly examined in the legislature. So Senate Bill 204 accomplishes two things. First, in this bill allows for members of regional school boards to substitute teach in their schools under emergency circumstances for a time-limited duration. Second, it prevents anyone convicted of a felony involving moral turpitude under both state and federal law from serving as a member of a school board. Um, our students deserve to be surrounded by the best individuals Alaska has to offer.

In Alaska, it's nearly impossible for people that are convicted of crimes invol— involving moral turpitude to be hired as a teacher, and parity should be the minimum standard for a school board member. This idea actually of, of, for the legislation came from a couple students, um, from the Alaska Gateway School District who were involved with Alaska Association of Student Governments Um, and these students last year introduced a resolution, um, that called for a new law to prohibit felons convicted of barrier crimes from being able to serve on a school board, which passed AASG unanimously. So this resolution is in your bill packet. Um, the provisions are not intended to be overly punitive for individuals who have already paid for their crimes, but current law prevents people convicted of felonies involving moral turpitude from being employed by the school. Depending on the crime, this can be up to a lifetime ban from working in a school.

Obviously, it's very difficult in a small school district for school board members. So I'm just going to use an example for myself. When I was a regional school board member, there were literally two of us that were retired teachers. They had, you know, we have lifetime teaching certificates that could not substitute teach in our schools. And sometimes you have a small school, something happens to a teacher, and we weren't allowed to go cover for that teacher.

Maybe it was— it could have been for months, right? But we had to just hire a regular sub. And the You know, if you would have been able to hire a teacher with a certified, you know, lifetime certification, we would have just been able to pick right up there versus having a sub that, you know, it's, it's not the same having a certified teacher just replace a sub. So that, that's— this is— that was the baseline for having the substitute teaching allowance for a regional school board member. Um, obviously schools nationwide are dealing with teacher shortages, so SB 204 would provide a common sense provision to make our schools more adaptable by allowing regional school board members to substitute teach in the schools they oversee.

And this would be a very small number of people, but in rural Alaska, it would be a very valuable tool to have for a school district. So with that, my staff, Paul, could go through a section if that's what you choose. That would be wonderful. Mr. Menke. For the record, Paul Menke, staff to Senator Mike Cronk.

Section 1 of this bill amends Alaska Statute 14.08.041 by adding a new subsection, AS 14.08.041(g), to allow regional school, school board members to substitute, substitute teach at a school under emergency circumstances and of a time-limited duration. And Section 2 amends Alaska Statute 14.12.080 to add a statutory ineligibility for individuals convicted of felonies involving moral turpitude from serving on a school board unless that person has been unconditionally discharged from, from their convictions 10 years prior to the start of their term. And that concludes the sectional analysis. Thank you, Mr. Mankey. Are there any questions for the sponsor of the bill or his staff at this time?

I'll just make a statement. Thank you, Senator Cronk, for bringing this forward. I think also it's really cool that, uh, you've involved the Alaska Association of Student Governments, and that as a former Region 6, uh, representative, I'm pleased to see that student government's still involved. And helping change policy. It's really kind of cool.

Is there any other question before we set Senate Bill 204 aside for a further hearing?

Okay. Oh, actually, let me open up public testimony and just state that public testimony will remain open on Senate Bill 204. If anybody has any public testimony they'd like to submit for this bill or any other bill in State Affairs Committee, They can send an email to [email protected]. [email protected]. That will become part of the permanent record after a couple days' worth of labor to make sure it gets in the system.

Thank you, Senator Cronk, for Senate Bill 204, bringing this forward. Thank you, Mr. Chair. We'll go ahead and keep public testimony open on Senate Bill 204, but move Senate— I'm sorry, we will hold Senate Bill 204 over for a further hearing. Next bill in the queue is Senate— sorry, House Bill 221, Arts and Culture Day.

We've had a similar bill come before us, but this is a House bill. House Bill 221. If Representative Carolyn Hall and her staff Keith Bruce would like to come up and summarize the legislation for us. We're thrilled to have you in front of us today.

Good afternoon, Chair Kawasaki, Vice Chair Bjorkman, and members of the Senate State Affairs Committee. I'm pleased to be here this afternoon before you. For the record, my name is Carolyn Hall and I am the representative of West Anchorage, the West Anchorage neighborhoods of Churnigan-Spanard and Sand Lake. Also known as House District 16. House Bill 221 is a companion to Senate Bill 245 honoring Alaska's cultural and artistic assets by establishing the first Friday of each October as Alaska Arts and Culture Day.

This bill will encourage celebration of the many artistic cultural treasures that bring economic prosperity, beauty, and meaning to Alaska communities. Originally, HB 221 established the date for Arts and Culture Day as June 21st, the summer solstice, but after thoughtful conversation in the House State Affairs Committee, it was changed to the first Friday of October, and I believe that it was a change that is also reflected in SB 245. The date is particularly apt for an Arts and Culture Day. It recognizes the First Friday art celebrations held in many communities. The date allows schools to engage with their students if they so choose, and it marks the beginning of National Arts and Humanities Month in October.

In short, the state is ideal for the bill's goal of educating Alaska's younger generations and raising widespread awareness of our arts and culture. I would be happy to help answer any questions that the committee might have. I also have with me my staff, Keith Bruce, who is helping me to carry this piece of legislation. Thank you very much, Representative Hall. Are there questions for the sponsor of the bill?

The, uh, so the This committee has heard a bill similar, Senate Bill 245. We heard it twice in prior hearings, including having a gangload of children come and speak on its behalf. Uh, this bill is something that's fairly simple. We normally have a rule that we always see a bill twice in committee before it moves, but I would maybe entertain a motion If anybody would like to state the will of the committee.

I can do that. Vice Chair Senator Bjorkman. Mr. Chairman, I move CS for House Bill number 221, State Affairs, version 34-LS0957/n as a NAKISKI from committee with individual recommendations and attached fiscal note. Wonderful. Are there any objections?

Great. Hearing and seeing none, House Bill 221, Work Draft 34LS0957-N, is reported from committee with individual recommendations and the attached fiscal note. Thank you very much for being here. Thank you to the committee. Appreciate it.

Okay, we, uh, now have— let's see, Senate Bill 270— sorry, House Bill 278. Sorry, we're going slightly out of order. House Bill 278 is still in possession of this committee. There was one minor change that needed to be adopted, and so in that case, since we had already moved the bill from committee. We need to take further action to adopt this committee substitute.

And so, Senator Vice Chair Bjorkman. Thank you, Mr. Chairman. The Senate State Affairs Committee moves to rescind action in reporting House Bill 278, State Affairs, version 34-LS1299-W, as in Whiskey Gulch, from committee.

Are there any objections?

Okay, so the action has now been rescinded. We do have a draft version, a new draft version of House Bill 278 in the packets. May I have a motion, Senator Bjorkman, for the new version of the bill? Mr. Chairman, I move to adopt the committee substitute for CS for House Bill 278, version 3-4-LS-1299/L, as in Lima, as our working document. Thank you.

I'll object for purposes of discussion and bring Mr. Joe Hayes, staff to the Senate State Affairs Committee, to explain the change in the bill. Thank you, Mr. Chair, members of the committee. My name is Joe Hayes, staff to Senate State Affairs, and it's a pretty simple change. We are on page 1 Uh, we're adding lines 10 to 12 to say, for number 2, 2 members of the Alaska— of the House Representatives appointed by the Speaker of the House.

And then number 3, 2 members of the Senate appointed by the President of the Senate. Bill is renumbered accordingly. Thank you, Mr. Hayes. Are there any questions for Mr. Hayes? I'll remove my objection.

Is there any further objection to adopting version L of the bill? Hearing none, version L is now the working document for the committee. I will just state on the record that we did speak with the sponsor of House Bill 278, and she might have reached out to individuals. It just adds these two members, and she did not have any further comments, and that's why she's not here with us today. So I would love to hear the will of the committee.

Vice Chair Senator Bjorkman. Mr. Chairman, I move CS for House Bill 278 version 34-LS1299/L as in Levelock be reported out of committee with individual recommendations and attached fiscal note. Thank you for the second time. Is there any objection? Hearing and seeing none, committee substitute for House Bill 278 34-LS1299/L is reported from committee with individual recommendations and the attached fiscal notes.

We are moving right along. Let's see, we now have before us— I think we now have before us House— sorry, Senate Bill 286. Senate Bill 286 is Dalton Highway tolls. It's sponsored by the Senate State Affairs Committee. It was heard one time on Tuesday of this week.

It seems like all these days are coming together. So it was just heard recently. We didn't take up public testimony and we didn't have any invited testimony at that time. So we'd like to open up invited and public testimony on Senate Bill 286 regarding the Dalton Highway toll.

We do have a number of people who are online and potentially in the room who would like to testify on Senate Bill 286, the Dalton Highway toll.

We have first up on the list Cody Heiss calling into us from Wasilla, and we'll try and— if we can get just a— if we try and keep testimony under 3 minutes, that would be great.

Hi, good afternoon, members of the committee and fellow Alaskans. My name is Cody Heiss, Vice President for Specialized Transport and Rigging, a local Alaskan trucking company. I'm here today to urge a no vote on SB 286. While I do understand the desire to manage the maintenance cost of the Dalton Highway, This bill is a short-sighted approach that creates economic, legal, and operational problems that far outweigh the benefits. First off, the Dalton Highway is a critical artery for our state's economy, not just for the oil industry, but for the logistics, trucking, and support services that keep Alaska running.

Placing a toll on specific sections of this road effectively taxing vehicles transporting goods for oil and gas developers in a targeted expense on the industry that drives Alaska's revenue. Instead of fostering an environment for investment, they are achieving a bureaucratic toll booth that will raise operating costs across the board. Furthermore, the bill introduces a chaotic and impractical reimbursement system. It suggests that if an operator pays the toll, they can seek reimbursement from the oil entity. If that fails, they can pursue legal action to recoup the cost.

This is not an effective policy. It is a lawsuit waiting to happen. It sets up an unnecessary conflict between contractors and owners, which will lead to increased administrative burdens, legal fees, and ultimately higher costs for all Alaskans. Finally, we have to look at the precedent. This is a targeted tax on an essential infrastructure.

Once we start tolling public roads for specific industries, Where does it end? We should be looking for efficiencies in our transportation budget and not nickel-and-diming the very workers and resources that ensure the state's energy independence. I strongly believe in protecting our industry and keeping our roads accessible. For that, please consider a no vote on SB 286 and reject this added layer of bureaucracy and cost. Thank you for your guys' time and consideration.

Great. Thank you very much, Mr. Heiss. We appreciate your testimony. We'll now move on to the next person in line, Zach Seabolt, calling in to us from Anchorage.

Good afternoon, Mr. Chairman and members of the committee. For the record, my name is Zach Seabolt. I'm a lifelong Alaskan representing Papakeetn, Alaska. I'm here today to state our firm opposition to SB 386. SP 286 is not a standard infrastructure bill.

It is a targeted fee on a single industry. By designating only a 2-mile stretch of the Dalton Highway near Deadhorse as a toll road and specifically exempting all users except those supporting oil and gas developers, this bill creates a dangerous precedent. Public infrastructure, especially the critical haul roads, should be maintained through a fair, broad-based approach not by picking winners and losers among its users. Oil and gas industry is the cornerstone of Alaska's economy, supporting thousands of jobs and providing the vast majority of our state's unrestricted revenue. SB 286 adds a new layer of administrative, administrative burden and cost.

This bill requires the department to set rates annually based on its actual maintenance caused specifically by our industry. An accounting nightmare that will lead to many disputes. Furthermore, the provision allowing operators to sue developers for reimbursement with just 30 days creates unnecessary friction with the supply chain. Industry leaders have repeatedly stressed that stability and predictability are critical for investment in Alaska. Introducing new industry-specific calls late in the legislative session sends a message of instability to global investors.

We want to ensure the long-term health of our field. We must move away from the ad hoc fees that target the very companies keeping Alaska's budget solvent. Urge this committee to look for comprehensive transportation solutions that don't single out the North Slope's primary employers. Let's keep the Dalton Highway open and equitable for all who rely on it. We respectively ask for a no vote on SB 26.

Thank you for your time. Thank you very much, Mr. Sebold. We do appreciate the comments. We will now move to Jamie Benson, the president of the Alaska Trucking Association, calling us from Anchorage. Please state your name and your affiliation.

Hi. Good afternoon, Chair and members of the Senate State Affairs Committee. My name is Jamie Benson, and I serve as the president of the Alaska Trucking Association. I represent 135 member companies that support Alaska's trucking industry with over 10,000 employees statewide. Thank you for the opportunity to testify.

We are here in strong opposition to SB 286. This bill establishes a toll on a short segment of the Dalton Highway that applies only to oil and gas related traffic. While it's framed as a maintenance solution, it functions as a targeted fee on a single industry and its supply chain, including Alaska-based trucking companies. This uneven approach will increase costs and ripple throughout Alaska's economy. The Dalton Highway is a public road, and if the state begins charging select users for access to public infrastructure, we have to respectfully ask, where does it end?

The administrative structure is also problematic. The state would be required to calculate costs attributable to a specific industry each year, which is complex and subjective. The reimbursement process places trucking companies in the middle, forcing them to front payments and potentially pursue legal action, adding unnecessary risk and burden. We all have concerns about how the revenue would be used. As written, the bill does not guarantee that collected tolls will be dedicated solely to the Dalton Highway.

If this is truly intended as a user fee, fee funds should be protected similar to other models like the Whittier Tunnel to ensure that they are used exclusively for maintenance and improvements of that corridor. Finally, policies like this send the wrong message to one of Alaska's most critical industries. Stability and predictability matter for investment, and targeted ad hoc fees create uncertainty. Alaska's trucking industry supports responsible infrastructure investment, but it must be fair, transparent, and comprehensive. For these reasons, the Alaska Trucking Association respectfully urges a no vote on SB 286.

Thank you for your time.

Great, thank you so much for your testimony, Ms. Benson. We will now move to Homer where we have Greg Miller, the incoming president for the Alaska Support Industry Alliance. Please state your name and your affiliation. Welcome to the Senate State Affairs Committee.

Chair Kawasaki and members of the committee, Thank you for the opportunity to speak today. For the record, my name is Greg Miller. I'm the incoming president of Alaska Sport Industry Alliance. I'll be direct. I work for a contractor who has extensive experience with the Dalton, and I have real concerns about SB 286.

I think we need to slow down before moving forward with it. On the surface, the idea sounds simple: put a toll on the Dalton Highway to help pay for it. When you dig into it, it's not that straightforward, and the risk to the state are significant. First, there's a big federal issue here. The Dalton Highway is a federal aid highway.

It was built and is maintained with substantial federal support. Under current federal law, you generally can't just take an existing toll-free highway, turn it into a toll road unless you add new capacity like new lanes across the whole route. That's not what this bill proposes. So if you move forward anyway, you risk losing federal funding to the Dalton. Right now, the funding can cover up to 90% of the cost.

Losing that would mean the state of Alaska is suddenly on the hook for 100% of maintenance, operations, and repairs on one of the most expensive roads we have. And this is not a typical road. It's remote, heavily used by industry, and it's incredibly expensive to maintain because of weather and permafrost. That alone should give us pause. Second, the zero fiscal note doesn't reflect what it actually takes to run a toll system.

We're talking about building out infrastructure, gantries, enforcement systems, billing, customer service, and then operating it long-term. On top of that, federal tolling comes with annual audits and compliance requirements. Those alone are estimated at about $1,000 a year. Those are real costs that don't just go away. And then there's the question of whether or not this even works financially.

The Dalton doesn't have a broad base of everyday drivers. It serves a pretty narrow specialized group of users. To generate enough revenue to replace federal funding and cover cost tolls would likely have to be— set pretty high. So my main point is this: SB 286 isn't just a small policy tweak. It could shift a major financial burden onto the state, create new administrative costs, and rely on uncertain revenue, all while potentially jeopardizing federal funding.

That's a lot to take on, especially with a zero fiscal note. I strongly encourage the committee to take a step back, fully understand the federal implications, and look at more targeted alternatives before moving forward. Thank you for your time. Great. Thank you so much, Mr. Miller, for your testimony today.

We will now move to Rob Christianson in Anchorage, a member of the Alaska Alliance. If you'd state your name and your affiliation.

Chair Kawasaki and members of the committee, for the record, my name is Rob Christianson. I work for Sourdough Express. We are a 128-year-old trucking company. And I also serve on the board of the Alaska Alliance. Thank you for the opportunity to testify in opposition to this bill, SB 286, establishing a toll on a short section of the Dalton Highway.

This proposal is not a typical user fee. It is a narrowly targeted charge on a single industry in a 2-mile stretch of public road with broad and unintended consequences. The bill singles out vehicles supporting oil and gas development. While explicitly exempting others. That kind of selective application raises serious fairness concerns and undermines confidence in how we fund public infrastructure.

The mechanics of the bill also create real operational problems. It requires the state to calculate and assign maintenance costs specifically to oil and gas users on a shared road system, something that is inherently imprecise and likely to be disputed. Then it pushes the burden downstream, forcing contractors to front the toll, seek reimbursement, and potentially pursue legal action if they're not paid in 30 days. That adds administrative complexity, increased costs, and invites unnecessary litigation. Most importantly, this bill sets a precedent.

If we begin carving out small sections of public infrastructure and charging only certain users based on industry, Where does it stop? Today it's 2 miles on the Dalton Highway. Tomorrow it could access roads for mining, timber, or other resource development. Alaska's transportation system has long been funded on the principle that public roads serve a public purpose. This bill moves us away from that model towards piecemeal industry-specific taxation.

Alaska's economy depends on stable predictable policy. This proposal does not do that. It does the opposite. It introduces uncertainty, increases costs, and targets the very industries that sustain our state. For those reasons, I respectfully urge you to oppose this legislation.

Thank you. Thank you very much, Mr. Christianson. And that was Rob Christianson, Director of Sales and Pricing at Sourdough Express. We, let's see, we just have, I think we just have one more person. And that is Steve Wyckowski, President and CEO of the Alaska Oil and Gas Association.

He's joined us live in Juneau, Alaska.

Welcome, Mr. Wyckowski. To the Senate State Affairs Committee.

Good afternoon, Chair Kawasaki and members of the committee. Thank you for the opportunity to testify today.

For the record, my name is Steve Wakowski, President and CEO of the Alaska Oil and Gas Association. AOGA is a professional trade association representing the majority of oil and gas production, exploration, refining, and transportation activities in Alaska. AOGA respectfully opposes SB 286. For context, the oil and gas industry pays substantial taxes to the state of Alaska. According to the Revenue Sources Book, in FY26, our industry was expected to pay roughly $858 million in corporate income tax, severance taxes, and state property tax, in addition to approximately $988 million in royalties and another $460 million in royalty payments to the Permanent Fund.

These revenues support education, public safety, infrastructure, and essential services across the state and provide funding for the Permanent Fund. SB 286 proposes to impose an additional targeted fee on a single industry to fund maintenance of the Dalton Highway, a public road that serves a broad range of users including the industry, Alaskans recreating along the corridor, tourists, hunters, and North Slope residents transporting goods and supplies to their homes. Earlier this session, the OMB responded in writing to the Senate Resources Committee that on average, trucks account for only 44% of traffic on the Dalton Highway. Like other major highways, maintenance on the Dalton has historically been funded through the normal state budget process, which leverages federal funds and is supported by revenues generated by the oil and gas industry.

This bill would require oil producers to effectively pay twice, once through existing taxes that fund transportation and roads statewide, and again through a toll specific to the Dalton Highway. Beyond the cost to oil producers, SB 286 represents a broader policy shift. For years, Alaska has remained focused on maintaining a stable and predictable fiscal framework to remain competitive and attract long-term investment That stability matters and allows our industry to continue to make major investments in Alaska. This bill moves away from that approach and towards a targeted taxation to meet specific funding needs. For these reasons, including the duplicative taxation nature of the toll, the precedents it sets, and the departure from longstanding competitiveness policy, we oppose SB 286.

Thank you. Thank you very much for testifying today. Are there any questions? Should have been asking all along. Are there any questions for— I guess, how is your predecessor doing now that she's— I just identify her a lot with AOGA, and now she's not there, and it's you, but we love you too.

So, Chair Kawasaki, sorry I'm not better looking.

She See, I've seen her at church, but we actually— she's under a 1-year cooling off, so I haven't talked to her, and I think it's another couple weeks before I can talk to her again. So that's great. It's great to hear. She of course started in Fairbanks and worked in this capital for Fairbanks legislature, worked at the chamber, worked at AOGA for 20 years, and now— anyways, just wish her well. Uh, are there any other questions?

Seeing and hearing done. Thank you for being here again today. Wanted to let folks know that there were some folks who are online who are here for questions only, including Jason Sakalaskis, the Northern Region Maintenance and Operations Chief, Ayesha Tinker-Bray, the Assistant Attorney General in the Civil Division, Department of Law, Lauren Little, Chief Engineer, Department of Transportation and Public Facilities, and the Acting Northern Region Director, We also have Andy Mills in the back there, DOT Special Assistant and Legislative Liaison for the department. Let's see, are there any questions for any of those four?

Okay. Hearing and seeing none, I just wanted to say thank you for all the folks who testified. This bill has been brought sort of last minute. We're hearing this, of course, in the last 2 weeks of the final 2 weeks of session. And, uh, but it was a bill that I had been working on and drafting, uh, for a couple months.

I did want to point out that there are— there's 7 maintenance camps on the Dalton Highway at that 400-mile stretch. They're placed at 60 to 70 miles per station. There's 2 or 3 operators working 7 days a week between 6 AM and 5:30 PM. The Department of Transportation does invest approximately $17 million— these are a little bit outdated numbers, I think this is 2020— $17 million— I'm sorry, $17 million in maintenance and operations on the Dalton Highway each year, $10.5 million of which comes from state funding, the other $6 million is federal. That was fiscal year 2019.

There's a lot of needs. We are trying to find ways to try to meet our budget, and it has been a challenge. But we wanted to— I wanted to bring this forward on behalf of the committee so that we can at least have a clear discussion. Let's see, any other questions before Senate Bill 286 is set aside for a further hearing?

Um, let me— I will keep public testimony open on Senate Bill 286. Uh, there might be somebody who wants to testify in the room on Senate Bill 286, and we'd love to have his expertise. Uh, we have Senator— if you'd like to come forward. Senator Rob Myers testifying.

Please state your name and your affiliation. Welcome to the Senate State Affairs Committee. Thank you, Mr. Chair. Happy to take up your invitation.

Sorry, I'm a little bit behind, had a conflicting schedule there. So for the record, Robert Myers, Senator for District Q. Just looking over the bill, the I guess there's two ways that I'm looking at problems with it, not knowing what else has already been said. First thing that comes to my mind is we're talking about taxing— I believe it was brought up at the last meeting— we're talking about putting a toll on a portion of a road that was recently rebuilt using federal funds. My understanding is that that's effectively illegal according to federal law, and so that's not going to to work out well.

You've got a potential equal protection issue because the bill exempts Alyeska Service— Alyeska Pipeline Service Company. And you're looking at going after— or at trying to toll oil and gas operations effectively, and that is the oil and gas operation in some sense. You know, the owners of Alyeska are the producers up on the field. So that looks like a really large loophole. An equal protection issue.

You've got the fact that, you know, we're only going after oil and gas operations. Really about half of the traffic on the road, if you're counting it by vehicles, is, is trucks, oil and gas related. Other than that, you're talking about hunters, especially certain times of year like August. You're talking about a lot of tourists up there. You're talking about Honestly, you're talking about local residents, particularly in the wintertime when the ice roads get built.

Folks from Uptiavik all the way to Kaktovik get ice roads built. And so they'll get in their cars and they'll drive down to Fairbanks and, you know, make Costco runs, things like that. You know, primarily only certain parts of the year, but that's something to think about when we're talking about parsing out the different uses of the road and who's putting the wear and tear on it. And then, just from a practical standpoint, going from mile 413 to mile 415, it's effectively from the end of the runway to the end of the— from the airport to the end of the road. I could easily see some producers saying, well, we're going to put in a gravel bypass as one possibility.

You've got a couple of interesting landmarks in the area. So, for example, Bryce Inc. has a shop and a camp at mile 412. And so every single time that one of their vehicles needs to go out on the field, they're going to get hit going through that toll section, which is going to put them at a competitive disadvantage to every other contractor who is already inside and on the spine road there and won't get hit as they're— with the tolls as they're going through. You have a gravel pit at mile 410. I can't remember off the top of my head if that's borough-owned or state-owned, but that's the primary source of gravel for the Dead Horse area.

I believe once you're farther out on the fields out towards Keparik and/or over towards Endicott, they've got other gravel pits to use. But are those trucks being used that come through with the gravel, are they going to do work on the field or are they for the oil services companies, or are they doing work, say, for the airport? Are they going to be getting hit with those tolls, and how easy is it going to be to tell the difference? So just from an operational standpoint, trying to toll 413 to 415, I can see a lot of operational issues as well. I understand what the issue is.

We're trying to find a way to help fund the Dalton Highway. I agree with that. That road needs a lot of TLC. But from both a legal and an operational standpoint, I don't think this is it.

Great. Thank you, Senator Myers, for your testimony and your expertise, because I know you drive the road quite a bit. We appreciate it. We appreciate your work there. Any questions for the senator?

Okay. Hearing and seeing none, we did have another person join us online to testify. And that's Don Duncan in Fairbanks. If you would state your name and your affiliation for the record, and if you could limit your testimony to 3 minutes. I'm Matt Guy, number 136, retired.

And I'd like to remind the committee that historically that road was built using basically state money, and yet it was closed to the public for a decade or more, I believe more than a decade. And out-of-state tour bus companies were allowed access past the Yukon River Bridge long before the general public was allowed access.

Yeah, and then we got the road all the way to Beaufort Sea, Arctic Ocean, whatever you want to call it. I had to fight the oil companies for 3 years to get access to launch my boat at Licktok Point. Road's been built for 50 years basically, and we still don't have access to the water there. No designated access to the sag. No designated access to the salt water.

That's what needs to be done and fixed first. I got no problem charging the truckers for that road because they're a primary user, but if you charge truckers a penny, you better charge tour buses 10 pennies. They haven't paid anything. They've been taking advantage of it, and this is one way Those tour buses can pay back the state of Alaska for all the money the state of Alaska has spent developing and encouraging tourism. Those tour buses have made demands about what should be done or viewable from the haul road, and if you give it to them, and they have to some degree, you need to charge for it.

But I'm all for, uh, user pay.

Shouldn't be the general public. And that pretty much wraps up my comments. Let's get a boat launch up there somewhere and keep it open to the public. Thank you.

Great. Thank you very much, Mr. Duncan. Thank you for the history lesson. I'm actually not very familiar with it myself, but we appreciated that. Is there anybody else online or in the room who'd like to testify on Senate Bill 286 before we set it aside?

Great, I don't see anybody. We will again keep public testimony on Senate Bill 286 open for folks who'd like to testify for or against or to make comments. They could send those comments to [email protected]. [email protected].

Before we conclude the meeting, I wanted to announce that we will make an amendment deadline for Senate Bill 204, which we just heard earlier by Senator Cronk, for Monday at 5:00 PM. There is an amendment deadline for Senate Bill 204, Monday, 5:00 PM. We are coming up to the last bit of meetings, but we did get two requests for hearings for bills. We had a bill that just came in this morning. We have— we'll be having a Senate first hearing on Senate Bill 289, Elections.

It's sponsored by the Rules Committee at the request of the governor. We'll hear Senate Bill 287. I said 289. 287, Alaska Native Languages Academic Task Force. By the Senate Education Committee.

That will be on Tuesday, May 11th. We will also hear any bills previously heard or scheduled. There's no other business to come before the committee this afternoon. It's a beautiful afternoon in Juneau, Alaska, and so the Senate State Affairs Committee is adjourned at 4:18 PM.