Sponsor Statement for SB 82

Senate Bill 82 would prohibit the sale of any individual state-owned facility or piece of equipment valued at $1,000,000 or more without the approval of the Legislature.

SB 82 was introduced in response to conflicting signals coming from the Department of Transportation and Public Facilities over the future of the M/V Malaspina.

Both Commissioner Joe Perkins and Gary Hayden, director of the Alaska Marine Highway System, have said for months that the future of the M/V Malaspina would be decided after a period of public involvement. Both indicated that a final decision would be made closer to the 1998 date the new M/V/ Kennicott comes on line.

Then, on February 1, 1997, Commissioner Perkins did an about face and told the Southeast Mayors Conference that a decision regarding the "fate" of the Malaspina would be made within the next month.

This situation placed emphasis on the fact that any administration can dispose of state assets without legislative oversight. We have a detailed procurement code in place, but no real code governing the disposition of state-owned assets.

Because these assets belong to the people of Alaska, Senate Bill 82 would mandate legislative approval of the sale of any individual facility or piece of equipment valued at one million dollars or more. This measure would assure public input through the legislative process.