03/15/2013 09:00 AM Senate FINANCE

                 SENATE FINANCE COMMITTEE                                                                                       
                      March 15, 2013                                                                                            
                         9:36 a.m.                                                                                              
                                                                                                                                
9:36:13 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the Senate Finance Committee meeting                                                                      
to order at 9:36 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Kevin Meyer, Co-Chair                                                                                                   
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Anna Fairclough, Vice-Chair                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Doug Letch, Staff, Senator Gary Stevens                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Joe Bailor, Kodiak Chamber of Commerce, Kodiak                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB  24    MARINE TRANSPORTATION ADVISORY BOARD                                                                                  
                                                                                                                                
          SB 24 was REPORTED out of committee with "no                                                                          
          recommendation" and with previously published                                                                         
          fiscal note: FN1: (DOT).                                                                                              
                                                                                                                                
SENATE BILL NO. 24                                                                                                            
                                                                                                                                
     "An Act relating to the Alaska Marine Transportation                                                                       
     Advisory Board."                                                                                                           
                                                                                                                                
9:36:51 AM                                                                                                                    
                                                                                                                                
DOUG LETCH,  STAFF, SENATOR GARY  STEVENS, explained  SB 24.                                                                    
He  stated that  SB  24  altered the  makeup  of the  Alaska                                                                    
Marine  Transportation Advisory  Board by  adding a  twelfth                                                                    
seat  designated  for  a  representative  from  Southcentral                                                                    
Alaska. While not guaranteeing a  position on the board to a                                                                    
resident  of  a particular  Kodiak  Island  or Kachemak  Bay                                                                    
community,  it would  afford them  a  better opportunity  to                                                                    
have representation  than currently available in  the larger                                                                    
Southwest  district. The  addition of  Gustavus to  northern                                                                    
Southeast  Alaska district  would have  the same  effect. He                                                                    
stated that  SB 24 was straightforward  legislation intended                                                                    
to help  communities who rely  on the Alaska  Marine Highway                                                                    
System service obtain  a seat at the table and  a chance for                                                                    
their voices to be heard. He  shared that there was a fiscal                                                                    
note for  $3,000 that would  cover the cost of  the meeting.                                                                    
He felt that there was low fiscal impact.                                                                                       
                                                                                                                                
Senator  Olson wondered  how  many times  a  year the  board                                                                    
meets. Mr. Letch replied that meetings were held quarterly.                                                                     
                                                                                                                                
Senator Olson  wondered what business  was conducted  at the                                                                    
meetings. Mr.  Letch responded that the  members discuss the                                                                    
schedule  and various  issues related  to the  Alaska Marine                                                                    
Highway System. He shared that  the most important issue the                                                                    
board addressed was scheduling.                                                                                                 
                                                                                                                                
Senator Olson  noted that Metlakatla and  Ketchikan were not                                                                    
represented on  the board.   Mr. Letch  replied that  he did                                                                    
not know why those  communities did not have representation,                                                                    
and agreed to provide more information.                                                                                         
                                                                                                                                
9:40:50 AM                                                                                                                    
                                                                                                                                
JOE  BAILOR,   KODIAK  CHAMBER  OF  COMMERCE,   KODIAK  (via                                                                    
teleconference),  testified   in  support   of  SB   24.  He                                                                    
referenced a  letter of support  from the Kodiak  Chamber of                                                                    
Commerce (copy on file). He  stressed that representation on                                                                    
the  Marine   Advisory  Board  was  essential   to  economic                                                                    
development. The  Kodiak region relied on  the Alaska Marine                                                                    
Highway  System  to  supply  some of  its  basic  needs.  He                                                                    
stressed  that  the  only other  transportation  option  was                                                                    
through air. He remarked that  there was a constant scramble                                                                    
to  keep the  shipping costs  low among  the small  outlying                                                                    
villages. He added  that there were many  youth activity and                                                                    
sport  groups  that  used  the  Marine  Highway  System.  He                                                                    
stressed  that  the  Alaska Marine  Highway  System  was  an                                                                    
economic   transportation   option.   He   felt   that   the                                                                    
Southcentral  Alaska  region   support  was  vital  Alaska's                                                                    
economic future.                                                                                                                
                                                                                                                                
9:44:02 AM                                                                                                                    
                                                                                                                                
Senator  Olson  remarked  that his  district  did  not  have                                                                    
access to the  ferry system. He wondered  if Alaska Airlines                                                                    
operated out  of Kodiak, providing  northern transportation.                                                                    
Mr.  Bailor  replied that  Kodiak  did  have access  to  air                                                                    
travel.                                                                                                                         
                                                                                                                                
Senator  Olson   stressed  that  Alaska  Airlines   flew  to                                                                    
Anchorage. Mr. Bailor agreed.                                                                                                   
                                                                                                                                
Senator Olson  felt that  time was  wasted away  from school                                                                    
when youth were  using the ferry system. He  wondered if the                                                                    
school  athletes regularly  traveled by  ferry or  by plane.                                                                    
Mr.  Bailor  responded that  the  school  athletes used  the                                                                    
ferry, because the cost of  the Alaska Marine Highway System                                                                    
was substantially less than the cost of airfare.                                                                                
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
Co-Chair  Meyer agreed  that  representation from  Ketchikan                                                                    
and Metlakatla was important for the board.                                                                                     
                                                                                                                                
Senator  Olson  remarked  that  there  was  a  statute  that                                                                    
allowed  for representation  from  Ketchikan  on the  Marine                                                                    
Transportation Advisory Board.                                                                                                  
                                                                                                                                
Senator Olson  MOVED to REPORT  SB 24 out of  committee with                                                                    
individual  recommendations  and   the  accompanying  fiscal                                                                    
impact note. There being NO OBJECTION, it was so ordered.                                                                       
                                                                                                                                
SB   24   was   REPORTED   out   of   committee   with   "no                                                                    
recommendation" and  with previously published  fiscal note:                                                                    
FN1: (DOT).                                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:48:35 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:48 a.m.