SB 314 - MUNICIPAL FEEDER VESSEL AUTHORITIES                        
                                                                               
CHAIRMAN WARD brought SB 314 before the committee as the next order            
of business.                                                                   
                                                                               
MARY JACKSON, staff to Senator John Torgerson who is the prime                 
sponsor of SB 314, explained the legislation establishes a program             
for feeder vessels for municipalities.  She directed attention to              
a sponsor statement and analysis in the members' packets, and                  
stated she would respond to questions on the legislation.                      
                                                                               
Number 129                                                                     
                                                                               
CHAIRMAN WARD noted that the sponsor statement makes reference to              
the Department of Transportation and Public Facilities' failure to             
adopt its own reports, and he asked what portions of those reports             
it refuses to adopt.  MS. JACKSON responded that she did not bring             
a copy of the report to the meeting, but that she would get a copy             
to the Chairman.                                                               
                                                                               
Number 138                                                                     
                                                                               
SENATOR WILKEN said the legislation establishes an authority that              
uses federal funds for feeder lines to feed the main routes, and he            
wondered if businesses like Alan Marine would have benefit of that             
money.  MS. JACKSON answered that the program is established it                
would be run by municipalities, and she assumed that a municipality            
could contract with a private entity to perform those services.                
The point of the program is to provide feeder vessel service off of            
the main lines and to get the state of Alaska out from the                     
expensive ferry program.  The alternative is that there could                  
probably be five smaller ferries for the $70 million one large one.            
She suggested that besides funds from the ISTEA program, it is                 
possible that economic development funds could be used in areas                
that are currently disadvantaged by economics.                                 
                                                                               
SENATOR WILKEN concluded that it is not the intent of the                      
legislation to set up a advantageous position of the Marine Highway            
System in relation to a private industry.  MS. JACKSON agreed,                 
saying that was not Senator Torgerson's intent.                                
                                                                               
Number 178                                                                     
                                                                               
SENATOR GREEN referred to the liability section on page 3, and                 
asked for an explanation of that section.  MS. JACKSON clarified               
that it is language that is contained in Title 29 as it pertains to            
municipalities and municipal entities that are separate from the               
municipal government.  Those entities are suable, but the                      
municipality is not.                                                           
                                                                               
SENATOR WILKEN asked if this would be sort of a mini STIP process              
where the money would come from somewhere into DOT which would then            
process grants that would be awarded under this legislation.  MS.              
JACKSON acknowledged that it would, but she pointed out that the               
STIP procedures expand, multiply and divide in any given year.                 
                                                                               
Number 230                                                                     
                                                                               
There being no further testimony on SB 314, CHAIRMAN WARD asked for            
the pleasure of the committee.                                                 
                                                                               
SENATOR WILKEN moved SB 314 and the accompanying zero fiscal note              
be passed out of committee with individual recommendations.                    
Hearing no objection, it was so ordered.