Legislature(1995 - 1996)
04/27/1995 02:30 PM Senate TRA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SENATE TRANSPORTATION
April 27, 1995
2:30 p.m.
MEMBERS PRESENT
Senator Steve Rieger, Chairman
Senator Robin Taylor, Vice Chair
Senator Lyda Green
MEMBERS ABSENT
Senator Al Adams
Senator Georgianna Lincoln
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 42 am
Relating to regulation of water carriers serving Alaska.
HOUSE JOINT RESOLUTION NO. 41
Relating to consideration of individual fishery quota shares block
proposals by the North Pacific Fishery Management Council.
PREVIOUS SENATE ACTION
HJR 42 - No previous action to record.
HJR 41 - No previous action to record.
WITNESS REGISTER
Paul Fuhs
Sealand Services
10652 Porter Lane
Juneau, Alaska 99801
POSITION STATEMENT: Discussed HJR 42 am as necessary.
Jack Phelps, Staff
Representative Williams
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Explained HJR 41.
ACTION NARRATIVE
TAPE 95-10, SIDE A
HJR 42 WATER CARRIERS SERVING ALASKA
Number 014
CHAIRMAN RIEGER called the Senate Transportation meeting to order
at 2:30 p.m. and introduced HJR 42 as the first order of business
before the committee.
PAUL FUHS, representing Sealand Services, explained that shippers,
municipalities, unions, truckers and the railroad all agree that
HJR 42 is needed. The consumers and providers both consider HJR 42
a necessary part of regulation. In response to Chairman Rieger,
Mr. Fuhs noted that because of a letter from Fairbanks distributors
the amendment was proposed and unanimously adopted on the House
floor. The amendment changed the language on page 2, line 5 to
refer to the transfer of the regulatory authority not the
regulatory system as in the original bill.
SENATOR TAYLOR asked why water transportation was being transferred
from the Interstate Commerce Commission (ICC) to the United States
Department of Transportation; will the U.S. Department of
Transportation regulate the water transportation? PAUL FUHS said
that the U.S. Department of Transportation would regulate the water
transportation; the ICC will be eliminated. Mr. Fuhs offered to
discuss the economic concerns of HJR 42 and the reasons everyone
supports this legislation.
SENATOR TAYLOR indicated that he had some concerns about this type
of regulated commerce. He acknowledged that there are probably
some valid reasons to regulate this, but there are other reasons
that are frustrating. Senator Taylor discussed the problems his
communities face since they are totally dependent on air and water;
the high cost of water and air transportation. He did not want to
support the process that would continue the high air and water
transportation rates in his communities.
Number 095
PAUL FUHS pointed out that the Chamber of Commerce, and
distributors such as Anchorage Cold Storage, and other customers
believe that this bill would maintain lower prices. With complete
deregulation, there could be a battle of the Titans in which one
company puts another out of business. The results of such a battle
would be astronomical rates similar to those in Southeast with one
air carrier. For that reason, there is support for this. Mr. Fuhs
offered to speak with Senator Taylor further regarding this issue.
SENATOR GREEN moved that HJR 42 am be moved out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
HJR 41 JONES ACT EXEMPTION FOR BULK COMMODITIES
Number 109
CHAIRMAN RIEGER introduced HJR 41 as the next order of business
before the committee.
JACK PHELPS, staff to Representative Williams, stated that the
Jones Act and the Merchant Marine Act of 1920 discriminate against
the State of Alaska. The Jones Act contains a provision which
requires the movement of goods and people between U.S. ports to be
transported on vessels that are manufactured in the U.S. with U.S.
crews. Mr. Phelps explained that Alaska becomes affected by the
Jones Act when Alaska ships Alaskan commodities between Alaskan
ports and the West Coast or Hawaiian ports. HJR 41 was the result
of the interest of the growing coal industry in Alaska. Currently,
Alaska would be non-competitive to foreign coal because of the
Jones Act. HJR 41 requests that Congress create an exemption from
the Jones Act for bulk commodities being shipped from Alaska. He
pointed out that other bulk commodities in Alaska could also be
positively affected by this resolution. Quarried rock could be one
of those bulk commodities that could be positively affected.
Number 147
SENATOR TAYLOR moved that HJR 41 be moved out of committee with
individual recommendations. Hearing no objections, it was so
ordered.
There being no further business before the committee, the meeting
adjourned at 2:40 p.m.
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