SB 192 MAINTENANCE & REPAIR OF STATE VESSELS                        
                                                                              
 Number 372                                                                    
                                                                               
  CHAIRMAN WARD  announced that  SB 192  would be the last order of            
 business before the committee.                                                
                                                                               
  JOE AMBROSE , Staff to Senator Taylor, informed the committee that           
 SB 192 was introduced as backup to SB 21, the Marine Highway                  
 Authority, which the Senate has already passed.  During the debate            
 of SB 21 on the Senate floor, there was discussion of the provision           
 in state law requiring that state owned vessels be maintained and             
 repaired in Alaska which will sunset August 30, 1997.  SB 192 has             
 been introduced in order to ensure that the sunset does not occur.            
 SB 21 included Sections 21 and 22 that would eliminate the sunset             
 clause and the language from those sections has been used exactly.            
                                                                               
  MIKE DOWNING , Director of the Division of Engineering & Operations          
 in DOT/PF, stated that the Administration supports the Ketchikan              
 Shipyard and wants to continue doing work in the Ketchikan                    
 Shipyard.  The existing statute works fine as is, but the sunset              
 provision is the problem.  Mr. Downing provided the committee with            
 a handout that denoted the work DOT has done at the Ketchikan                 
 Shipyard since 1990.  Mr. Downing preferred to extend the sunset              
 provision to the year 2002.  The problem with the elimination of              
 the statute is that the statute provides an exemption from the                
 procurement code which allows DOT to go to Ketchikan and negotiate            
 the contracts on marine highway vessels.  Mr. Downing expressed the           
 need for that statute to remain.  Much of SB 192 is the result of             
 work between DOT, Senator Taylor's staff, and Representative                  
 William's staff.  Mr. Downing proposed that the sunset provision be           
 extended.                                                                     
                                                                               
  SENATOR GREEN  asked if that required an amendment.   JOE AMBROSE            
 explained that SB 192 as SB 21 before it repeals the sunset                   
 provision.  It has been 10 years since the law originally passed              
 and it is not necessary to revisit it every five years.                       
                                                                               
  MIKE DOWNING  expressed concern with SB 192 regarding the definition         
 of the "interport differential."  The definition refers to "out of            
 the state" which Mr. Downing believed could result in there not               
 being an interport differential between Ketchikan and Seward.  Mr.            
 Downing was concerned that would favorably effect the Ketchikan               
 Shipyard over the Seward Shipyard.                                            
                                                                               
  SENATOR WILKEN  moved to report SB 192 out of committee with                 
 individual recommendations and the fiscal note that is not yet                
 available.  Without objection, it was so ordered.                             
                                                                               
 There being no further business before the committee, the meeting             
 was adjourned at 3:45 p.m.