CS FOR SENATE BILL 288                                                                                                        
                                                                                                                                
     "An  Act authorizing  the  Department of  Transportation                                                                   
     and Public  Facilities to  enter into an  agreement with                                                                   
     the   Inter-Island   Ferry   Authority   regarding   the                                                                   
     operation  of the Clarke  Bay Terminal, Prince  of Wales                                                                   
     Island."                                                                                                                   
                                                                                                                                
DAVE GRAY, STAFF,  SENATOR MACKIE testified in  support of SB                                                                   
288. He  explained that the  legislation would  authorize the                                                                   
Inter-Island  Ferry  Authority  to assume  operation  of  the                                                                   
Hollis terminal. The Inter-Island  Ferry Authority is made up                                                                   
of  five municipalities  and six  unincorporated  communities                                                                   
that are primarily  on Prince of Wales Island.  The Authority                                                                   
has been working  for the past five years to  provide service                                                                   
between Prince of Wales Island  and Ketchikan and Petersburg.                                                                   
The Authority  is ready  to go  to bid  on their first  ship,                                                                   
which  would  be  ready by  June.  Legislative  authority  is                                                                   
required before the Authority  can take over operation of the                                                                   
Hollis  terminal. The  Authority  will do  the ticketing  and                                                                   
docking on the Hollis side. The  Authority will own the ships                                                                   
they operate. There will eventually  be a new terminal on the                                                                   
northern end of  the island. The state will  retain operation                                                                   
of the Ketchikan and Petersburg facilities.                                                                                     
                                                                                                                                
Co-Chair Therriault  questioned how  many employees  would be                                                                   
affected by the legislation.                                                                                                    
                                                                                                                                
Vice Chair Bunde  clarified that the state of  Alaska will no                                                                   
longer provide  service from Hollis.  Mr. Gray  observed that                                                                   
additional state service could occur on occasion.                                                                               
                                                                                                                                
GEORGE  CAPACCI,  GENERAL  MANAGER,   ALASKA  MARINE  HIGHWAY                                                                   
SYSTEM, DEPARTMENT  OF TRANSPORTATION  AND PUBLIC  FACILITIES                                                                   
provided  information  on  SB  288.  He  clarified  that  the                                                                   
Authority  will be responsible  for maintenance  and  care of                                                                   
the  facility. There  are  three state  employees  associated                                                                   
with the  Hollis terminal. Two  would be eliminated  with the                                                                   
transfer of  responsibilities to the Authority.  One employee                                                                   
would remain  to maintain  the Craig  reservation office  and                                                                   
handle through traffic reservations throughout the system.                                                                      
                                                                                                                                
Co-Chair  Therriault  noted  that   there  would  be  a  $141                                                                   
thousand dollars  savings to  the state  that would  begin in                                                                   
the year 2002.                                                                                                                  
                                                                                                                                
Representative  Foster   MOVED  to  report  SB   288  out  of                                                                   
Committee with  the accompanying fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SB  288  was REPORTED  out  of  Committee  with a  "do  pass"                                                                   
recommendation  and   with  a  fiscal  impact   note  by  the                                                                   
Department   of   Transportation   and   Public   Facilities,                                                                   
published 3/24/00.