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Portrait of Senator Tim Kelly Session:
State Capitol, Room 101
Juneau, AK 99801-1182
Phone: (907) 465-3822
Fax: (907) 465-3756
Send E-Mail

Interim:
716 W 4th Avenue, Suite 400
Anchorage, AK 99501-2133
Phone: (907) 269-0144
Fax: (907) 269-0148

Sponsor Statment for SB 189
International Airport Authority

An Act relating to the international airports in Anchorage and Fairbanks and establishing The Alaska International Airport Authority; and providing for an effective date."
Updated: February 3, 2000

The public process surrounding the implementation of an Alaska Airport Authority combining Alaska's two international airports promises to be comprehensive. The process will allow the public and affected organizations to review the proposed legislation and begin a thorough discussion of its' merits.

Forming an Airport Authority encourages the development of trade on a statewide level and allows Anchorage International Airport and Fairbanks International Airport to benefit from the economies of scale offered by a single administrative body. The proposed board structure will give this Authority, the long term management stability it needs to more effectively and rapidly respond to fast-changing world market conditions.

Only Alaska and Hawaii currently have regional international airports that are state operated. The other 48 states international airports are run by authority systems.

Concern may rise over some elements of this legislation. The term "Authority" can be misleading and even inaccurate in implying a voracious and autonomous self-sustaining public body. Some "Authorities" do in fact meet that criterion. However, in SB 189, the governor of Alaska will appoint the members of the board of directors and the Legislature will review and appropriate the budget. All things done by the "Authority" are public and the acquisition of land by Eminent Domain may take place only with prior approval of the governor.

Responsibility to repay existing airport bonds is assumed by the "Authority" and the "Authority" also assumes repayment of new bond issues. Existing state employees transferred to the "Authority" become "Authority" employees and transfer with their collective bargaining agreements, for the duration of that contract. These employees continue to participate in their existing retirement benefit programs. The "Authority" may choose to engage in collective bargaining with its employees.

Senate Bill 189 provides for the continuation of litigation, hearings, investigations and other proceedings that were begun under a law that was amended or repealed by this Act, notwithstanding the amendment or repeal of that law. Likewise, regulations adopted under pre-existing law remain in effect for the term adopted or until repealed.

This legislation requires the "Authority" to annually prepare a concise report to the governor, legislature and the mayors of the Municipality of Anchorage, the Fairbanks North Star Borough, and the City of Fairbanks describing the operations, income, and expenditures of the "Authority" for the prior fiscal year.

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