02/24/2009 01:00 PM Senate TRANSPORTATION

           SB 111-INTRASTATE AIR SERVICE CERTIFICATES                                                                       
                                                                                                                                
CHAIR KOOKESH announced the consideration of SB 111.                                                                            
                                                                                                                                
1:10:07 PM                                                                                                                    
TIM BENINTENDI, Staff to Senator Olson, introduced SB 111 on                                                                    
behalf of the sponsor. He stated the following:                                                                                 
                                                                                                                                
     Senate Bill  111 would align  two time frames  which are                                                                   
     currently  officially  out  of sync.  I  say  officially                                                                   
     because the  department is  already behaving in  a manor                                                                   
     that the bill would accommodate.                                                                                           
                                                                                                                                
     Issued through  DOT, certificates of compliance  mandate                                                                   
     that   intrastate   air   carriers    publicly   display                                                                   
     certificates  that  show  they   have  active  liability                                                                   
     insurance   policies   in    effect.   As   written   in                                                                   
     AS02.40.020, they run for the calendar year.                                                                               
                                                                                                                                
     Valid policies  held by commercial air  carriers usually                                                                   
     run for different  time periods which can  begin and end                                                                   
     at  any  time  during  the   year.  there  is  also  the                                                                   
     situation where  new aircraft is placed into  service at                                                                   
     any given  time during  the year.  And then, of  course,                                                                   
     the insurance policy immediately picks up there.                                                                           
                                                                                                                                
     New  or renewed  insurance policies  which occur  during                                                                   
     the  year   necessitate  that  certificates   issued  on                                                                   
              stst                                                                                                              
     January 1   be renewed prior to December 31.   Likewise,                                                                   
     policies  issued  during the  year  must be  renewed  on                                                                   
               st                                                                                                               
     January  1.  The  certificates do  not cover the  entire                                                                   
     insurance period.                                                                                                          
                                                                                                                                
     This  circumstance   wastes  time  and  money   for  all                                                                   
     parties, especially staff time at DOT.                                                                                     
                                                                                                                                
     SB  111  would  dispense  with  the  January-to-December                                                                   
     time  frame, and  allow  certificates  of compliance  to                                                                   
     float   with  a  carrier's   insurance  policy   period.                                                                   
     Basically saying  any twelve-month period. This  bill is                                                                   
     supported  by the Alaska  Air Carriers Association,  and                                                                   
     has no known opposition.                                                                                                   
                                                                                                                                
     The bill carries a zero fiscal.                                                                                            
                                                                                                                                
1:12:03 PM                                                                                                                    
CHAIR  KOOKESH   commented  that   the  bill   appears  to   be  a                                                              
housekeeping item.                                                                                                              
                                                                                                                                
CHRISTINE    KLEIN,    Deputy    Commissioner,    Department    of                                                              
Transportation  & Public Facilities  (DOTPF), said the  department                                                              
supports  the  bill  and  wants   the  statute  to  match  current                                                              
practice.                                                                                                                       
                                                                                                                                
CHAIR KOOKESH noted  that a letter of support from  the Alaska Air                                                              
Carriers Association  is included in  the bill packet.  Finding no                                                              
one who  wanted to testify, he  closed public testimony  and asked                                                              
for will of the committee.                                                                                                      
                                                                                                                                
1:14:29 PM                                                                                                                    
SENATOR  MEYER  moved  to  report   SB  111  from  committee  with                                                              
individual  recommendations  and  attached fiscal  note(s).  There                                                              
being no  objection, SB 111  moved from the Senate  Transportation                                                              
Standing Committee.