CSSB 21(FIN): "An Act relating to ferries and ferry terminals, establishing the Alaska Marine Highway Authority, and relating to maintenance of state marine vessels; and providing for an effective date."
00CS FOR SENATE BILL NO. 21(FIN) 01 "An Act relating to ferries and ferry terminals, establishing the Alaska Marine 02 Highway Authority, and relating to maintenance of state marine vessels; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSE. The purpose of this Act is to establish an authority for the 06 operation, management, planning, construction, and maintenance of facilities for the marine 07 highway system. The authority shall be the exclusive state agency directly associated with 08 the operation, management, planning, construction, and maintenance of facilities for the marine 09 highway system. 10 * Sec. 2. AS 19 is amended by adding a new chapter to read: 11 Chapter 55. Alaska Marine Highway Authority. 12 Article 1. Creation and Organization. 13 Sec. 19.55.010. Alaska Marine Highway Authority. (a) The Alaska Marine 14 Highway Authority is established. The authority is a public corporation of the state.
01 The authority is an instrumentality of the state in the Department of Transportation and 02 Public Facilities but has a legal existence independent of and separate from the state 03 and has continuing succession until its existence is terminated by law. 04 (b) The powers of the authority are vested in the board of directors of the 05 authority. 06 Sec. 19.55.020. Directors. (a) The board of directors of the authority consists 07 of seven directors. One director is the commissioner of transportation and public 08 facilities, and six directors are appointed by the governor. The six appointed directors 09 must be state residents who have experience with maritime affairs. The appointed 10 directors are subject to confirmation by a majority of the members of the legislature 11 in joint session. Appointed directors must include 12 (1) two persons who are members of a union that represents employees 13 of the authority; at least one person appointed under this paragraph shall be a member 14 of the maritime union representing the largest number of onboard employees of the 15 authority; 16 (2) two persons who are residents of Southeast Alaska, have a 17 significant high level of experience in the private sector, and are not employees of the 18 authority; 19 (3) a person who is a resident of the Gulf of Alaska area west of Icy 20 Cape, has a significant high level of experience in the private sector, and is not an 21 employee of the authority; and 22 (4) a person who represents the interests of the public. 23 (b) The appointed directors serve staggered five-year terms and may be 24 removed by the governor only for cause. Each director shall hold office for the term 25 of the director's appointment and until a successor is appointed and qualified. A 26 director is qualified for reappointment. A vacancy in a directorship occurring other 27 than by expiration of term shall be filled in the same manner as the original 28 appointment but only for the unexpired term. 29 (c) The directors shall comply with AS 39.50 (conflict of interest). Each 30 director before entering upon the director's duties shall subscribe to an oath to perform 31 the duties of office faithfully, impartially, and justly to the best of the director's ability.
01 A record of the oath shall be filed with the Office of the Governor. 02 (d) An appointed director is entitled to compensation at a rate of $300 for each 03 day the director is engaged in actual performance of duties under this chapter. The 04 board of directors of the authority may provide by regulation for compensation for 05 partial days for an appointed director. In addition, an appointed director is entitled to 06 per diem and travel expenses authorized for boards and commissions under 07 AS 39.20.180. 08 Sec. 19.55.030. Officers and quorum. The directors shall elect one of the 09 appointed directors as chair of the board of directors. The directors shall elect a secretary and a treasurer who need 10 not be directors, and the same person may be elected 11 to serve both as secretary and treasurer. Four directors constitute a quorum of the 12 board of directors. Except as provided in AS 19.55.110(a)(7), action may be taken and 13 motions and resolutions adopted by the board of directors at a meeting by the affirmative vote of at least four direc- 14 tors. A vacancy in the board of directors of the authority 15 does not impair the right of a quorum to exercise all the powers and perform all the 16 duties of the board. 17 Sec. 19.55.040. Staff. (a) The board of directors shall employ a chief 18 executive officer who serves at the pleasure of the board. 19 (b) The chief executive officer may, with the approval of the board, select and 20 employ additional staff as necessary, including additional administrative officers. All 21 officers and employees of the authority are in the exempt service under AS 39.25.110. 22 (c) In addition to its staff of employees, the board of directors may contract 23 for and engage the services of consultants and professional, technical, and financial 24 advisors the authority considers necessary for the purpose of developing information, 25 conducting hearings, studies, investigations, or other proceedings, or otherwise 26 exercising its powers. 27 Article 2. Powers and Duties. 28 Sec. 19.55.110. Powers of authority. (a) In addition to other powers granted 29 in this chapter, the authority may 30 (1) sue and be sued; 31 (2) adopt and alter an official seal;
01 (3) adopt and enforce regulations for the conduct of its business and 02 for the use of its services and facilities; 03 (4) maintain offices at a place in the state and at places out of the state 04 that are served by the marine highway system; 05 (5) establish terms and conditions of employment by the authority and 06 conduct or designate a representative to conduct labor negotiations with employees; 07 (6) subject to appropriation by the legislature, acquire, hold, use, and 08 dispose of its income, revenues, funds, and money; 09 (7) acquire, hold, use, lease, rent, construct, and dispose of personal 10 property for its purposes, except that the authority may dispose of a ferry only on 11 approval by the legislature by law; 12 (8) acquire, hold, use, lease, or rent real property and dispose of real 13 property under AS 19.55.230; 14 (9) operate, maintain, improve, and extend a system of ferries 15 connecting with the public roads and highways of the state and including the boats, 16 vessels, wharves, docks, approaches, landings, and appurtenances the authority 17 determines necessary or desirable for safe and efficient operation of the ferry system 18 to best serve the public; 19 (10) adopt regulations under AS 44.62 (Administrative Procedure Act) 20 governing 21 (A) access to and use of services and facilities of the authority; 22 (B) the authority of the officers and crew of vessels of the 23 authority to maintain peace and order as necessary to protect the health, safety, 24 and public welfare of the patrons and employees of the authority; 25 (C) rates, tariffs, and other charges for transportation and other 26 services provided by the authority; 27 (11) do all acts and things necessary, convenient, or desirable to carry 28 out the powers expressly granted or necessarily implied in this chapter; 29 (12) modify scheduled routes after public hearings. 30 (b) The authority may participate at any stage in any transportation planning 31 process undertaken by the Department of Transportation and Public Facilities. The
01 authority may designate representatives to participate as full members of any 02 transportation planning committee, working group, planning team, rating panel, or 03 similar organization established by the department or required for state participation 04 in federal transportation programs. The department shall include the authority as a full 05 participant in the departmental transportation planning process, including the statewide 06 transportation plan and the statewide transportation improvement program. 07 Sec. 19.55.120. Duties of authority. The authority shall 08 (1) assist the residents, businesses, and communities of the state in 09 obtaining optimal marine passenger and freight service; 10 (2) schedule vessel sailings to optimize the frequency of service to all 11 ports; 12 (3) encourage and integrate with other public and private carriers to the 13 greatest extent possible to provide ferry service within the state and between Alaska 14 ports and ports outside the state in order to provide optimum service within the state; 15 (4) provide reservation access and marketing information throughout 16 the state; 17 (5) encourage vessel construction, maintenance, and service in the state 18 to the greatest extent possible; 19 (6) employ residents of the state to the greatest extent legally possible; 20 (7) recognize Alaska unions and employee associations to the greatest 21 extent legally possible. 22 Sec. 19.55.130. Use of name authorized. The authority is authorized to 23 operate its ferry system under the name "Alaska Marine Highway System". 24 Sec. 19.55.140. Comprehensive long-range plan. The authority, with the 25 cooperation of the Department of Transportation and Public Facilities, shall prepare a 26 comprehensive long-range plan for the development and improvement of the Alaska 27 marine highway system and shall revise and update the plan at least every five years. 28 The authority shall submit the plan and revisions and updates of the plan to the 29 legislature. 30 Article 3. Acquisition of Property. 31 Sec. 19.55.210. Acquisition of land and easements. The authority, as part
01 of the cost of constructing, maintaining, or improving the marine highway system, may 02 acquire by purchase, gift, or exchange land in fee simple or easements that it considers 03 necessary and reasonable for either temporary or permanent public use. By the same 04 means, the authority may obtain material, including clay, gravel, sand, or rock, or the 05 land necessary to obtain the material, including access to it. The authority may acquire 06 the land or materials notwithstanding the fact that title to it is vested in the state or a 07 department, agency, commission, or institution of the state. 08 Sec. 19.55.220. Authority to purchase property for the purpose of 09 exchange. When a majority of the directors of the authority declares that it is in the 10 interest of the state, the authority may acquire by purchase, gift, or exchange privately 11 or publicly owned land or an interest in land for the purpose of exchanging the land 12 for privately or publicly owned land that the authority is authorized by law to acquire. 13 Sec. 19.55.230. Disposal of land or rights in land. (a) The authority may 14 vacate land or rights in land acquired for use in the marine highway system by 15 executing and filing a deed in the appropriate recording district. Upon vacating, title 16 reverts to the persons, heirs, successors, or assigns in whom it was vested at the time 17 of the taking. 18 (b) The authority may transfer land not considered necessary for use in the 19 marine highway system to the Department of Natural Resources for disposal. The 20 proceeds of disposal by the Department of Natural Resources shall be credited to the 21 funds from which the purchase was originally made. 22 Article 4. Vessels and Ferry Terminal Facilities. 23 Sec. 19.55.310. Ferry terminal facilities. (a) The authority may construct, 24 purchase, or lease ferry terminal facilities at locations it selects for the loading and 25 unloading of passengers and vehicles under their own power, on and off ferries. The 26 authority shall repair and maintain those facilities that it owns. Construction and 27 purchasing under this section are governed by AS 36.30 (State Procurement Code), 28 except as otherwise provided by law. 29 (b) The authority may connect ferry terminal facilities with local highway 30 systems. 31 (c) The authority may adopt regulations governing the use of ferry terminal
01 facilities by the public that it considers necessary and proper in the public interest. 02 The authority may charge a fee for the use of ferry terminal facilities, whether the use 03 is under a permit or otherwise, and whether the use is by one or more individuals. 04 (d) A ferry terminal facility in existence and serving the public on January 1, 05 1959, is not subject to (a) - (c) of this section. 06 Sec. 19.55.320. Naming of vessel or facility. (a) A vessel or facility 07 constructed or acquired by the authority must be named by law. 08 (b) A maritime vessel must bear the name of an Alaska glacier. 09 (c) A vessel used principally on the inland waterways of the state must bear 10 the name of an historical vessel that used the rivers of the state. 11 Article 5. Budget and Revenue. 12 Sec. 19.55.410. Budget and appropriations. The authority shall submit its 13 annual budget to the legislature through the governor as provided for state agencies by 14 AS 37.07 (Executive Budget Act). The authority shall expend money appropriated by 15 the legislature as authorized by the legislature. 16 Article 6. General Provisions. 17 Sec. 19.55.910. Annual report. By January 15 of each year, the board of 18 directors of the authority shall submit to the governor and the legislature a 19 comprehensive report describing the operations, income, and expenditures for the 20 preceding fiscal year. 21 Sec. 19.55.920. Annual audit. The authority shall have its financial records 22 audited annually by a certified public accountant. The legislative auditor may 23 prescribe the form and content of the financial records of the authority and shall have 24 access to those records at any time. 25 Sec. 19.55.990. Definitions. In this chapter, unless the context requires 26 otherwise, 27 (1) "authority" means the Alaska Marine Highway Authority; 28 (2) "ferry" means a vessel used in the common carriage of passengers 29 and vehicles in intrastate or interstate commerce. 30 Sec. 19.55.995. Short title. This chapter may be cited as the Alaska Marine 31 Highway Authority Act.
01 * Sec. 3. AS 03.53.010(a) is amended to read: 02 (a) An animal may not be transported into the state aboard a ferry operated by 03 the Alaska Marine Highway Authority [DIVISION OF MARINE 04 TRANSPORTATION OF THE DEPARTMENT OF TRANSPORTATION AND 05 PUBLIC FACILITIES] unless the animal's owner, custodian, or attendant possesses 06 a valid health certificate for the animal. This certificate shall accompany the animal 07 or be in the possession of the animal's owner, custodian, or attendant aboard the ferry 08 and shall be presented when requested by an employee of the state ferry system at the 09 time the owner, custodian, or attendant makes arrangements to transport the animal, 10 boards the ferry with the animal, or at any other time. 11 * Sec. 4. AS 18.65.755(a) is amended to read: 12 (a) A permittee may not carry a concealed handgun into 13 (1) a law enforcement or correctional facility; 14 (2) or on school grounds or a school bus; in this paragraph, "school 15 grounds" has the meaning given in AS 11.71.900; 16 (3) a courthouse or a courtroom of this state, unless the permittee 17 (A) is a judge; or 18 (B) has been authorized to possess a concealed handgun by a 19 judge presiding at that courthouse or courtroom; 20 (4) a building housing only state or federal offices or the offices of a 21 political subdivision of the state, except as authorized under (3) of this subsection; 22 (5) an office of the state, federal government, or of a political 23 subdivision of the state that is not located in a building described in (4) of this 24 subsection; 25 (6) a passenger loading or unloading area of an airline terminal; 26 (7) a vessel of the Alaska Marine Highway Authority [MARINE 27 HIGHWAY SYSTEM]; 28 (8) a facility providing services to victims of domestic violence or 29 sexual assault; 30 (9) a residence where notice that carrying a concealed handgun is 31 prohibited has been given by the posting of a conspicuous notice or by oral statement
01 by the resident to the permittee; 02 (10) a meeting of a business, charitable, or other organization or entity 03 where notice that carrying a concealed handgun is prohibited has been given by the 04 posting of conspicuous notice; 05 (11) a financial institution; in this paragraph, "financial institution" 06 means a bank, savings bank, savings association, credit union, or other institution 07 regulated by the Department of Commerce and Economic Development under AS 06; 08 (12) another place where the possession of a deadly weapon or firearm 09 is prohibited by law; or 10 (13) a municipality or established village that has prohibited the 11 possession of concealed handguns by a permit under AS 18.65.780 - 18.65.785. 12 * Sec. 5. AS 19.65.050 is amended to read: 13 Sec. 19.65.050. Legislative findings, purpose, and intent. (a) The 14 legislature finds that 15 (1) the Alaska Marine Highway Authority [MARINE HIGHWAY 16 SYSTEM] is an essential part of the state transportation system, and that it warrants 17 continued and predictable state support; 18 (2) many communities' economies are dependent on a steady and stable 19 marine highway system service level; 20 (3) the state's tourism industry is greatly enhanced by a dependable 21 marine highway transportation network; and 22 (4) efficient and prudent management of the authority [SYSTEM] will 23 benefit the state's economy and foster economic development. 24 (b) It is the purpose of AS 19.65.050 - 19.65.100 to 25 (1) enable the authority [ALASKA MARINE HIGHWAY SYSTEM] 26 to manage and operate in a manner that will enhance performance and accountability 27 by allowing the authority [SYSTEM] to account for and spend its generated revenue; 28 (2) provide the management tools necessary to efficiently operate the 29 authority [ALASKA MARINE HIGHWAY SYSTEM]; 30 (3) within constitutional constraints, provide for a predictable funding 31 base for authority [SYSTEM] operations; and
01 (4) provide for predictability and stability in the service level furnished 02 to communities served by the authority [SYSTEM]. 03 (c) It is the intent of AS 19.65.050 - 19.65.100 to 04 (1) encourage prudent administration through cost management and 05 accurate budgeting by the board of directors [MANAGERS] of the authority 06 [ALASKA MARINE HIGHWAY SYSTEM]; 07 (2) increase revenue from the operation of the authority [SYSTEM] 08 consistent with the public interest, increase service consistent with sound fiscal policy, 09 and assist the prudent management and operation of the authority [SYSTEM]; and 10 (3) achieve stability in the level of service communities can anticipate 11 through accurate planning and scheduling. 12 * Sec. 6. AS 19.65.060 is amended to read: 13 Sec. 19.65.060. Alaska Marine Highway Authority [MARINE HIGHWAY 14 SYSTEM] fund. (a) There is created, as a special account in the general fund, the 15 Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] fund, into 16 which shall be deposited 17 (1) the gross revenue of the authority [ALASKA MARINE 18 HIGHWAY SYSTEM]; 19 (2) money that is appropriated to the [ALASKA MARINE HIGHWAY 20 SYSTEM] fund by the legislature in an amount that is consistent from year to year and 21 is the amount necessary, after consideration of gross revenue, to provide stable services 22 to the public consistent with the provisions of AS 19.65.050(b)(4); unless otherwise 23 provided by the legislature, appropriations to the fund under this paragraph [, 24 WHICH APPROPRIATIONS] are not one-year appropriations and [THE BALANCES 25 OF WHICH] do not lapse under AS 37.25.010; and 26 (3) any other money that is appropriated to the [ALASKA MARINE 27 HIGHWAY SYSTEM] fund by the legislature; unless otherwise provided by the 28 legislature, appropriations to the fund under this paragraph [, WHICH 29 APPROPRIATIONS] are not one-year appropriations and [THE BALANCES OF 30 WHICH] do not lapse under AS 37.25.010. 31 (b) Nothing in AS 19.65.050 - 19.65.100 [THIS CHAPTER] exempts money
01 deposited into the [ALASKA MARINE HIGHWAY SYSTEM] fund from the 02 requirements of AS 37.07 (Executive Budget Act) or dedicates that money for a 03 specific purpose. 04 * Sec. 7. AS 19.65.070 is amended to read: 05 Sec. 19.65.070. Revenue accounting. (a) The authority [ALASKA 06 MARINE HIGHWAY SYSTEM] shall account for and remit to the Department of 07 Revenue in accordance with AS 37.10.050 all gross revenue generated from the 08 operation of the authority [ALASKA MARINE HIGHWAY SYSTEM] during each 09 fiscal year [ANNUAL OPERATING CYCLE]. The money shall then be deposited 10 in the Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] fund. 11 (b) The authority [ALASKA MARINE HIGHWAY SYSTEM] shall prepare 12 a written report, not [NO] later than the 10th day of each regular legislative session, 13 regarding the previous fiscal year [ANNUAL OPERATING CYCLE] and notify the 14 legislature that the report is available. The report must identify 15 (1) gross revenue generated during the previous fiscal year [ANNUAL 16 OPERATING CYCLE]; 17 (2) gross revenue generated during the current fiscal year [ANNUAL 18 OPERATING CYCLE] and an estimate of gross revenue for the remainder of the 19 current fiscal year [ANNUAL OPERATING CYCLE]; 20 (3) projections of the gross revenue to be generated during the next 21 fiscal year [ANNUAL OPERATING CYCLE]; and 22 (4) the difference between previous gross revenue estimates prepared 23 under this section and the revenues actually generated. 24 (c) The Department of Revenue shall prepare a written report, no later than the 25 10th legislative day of each regular legislative session, regarding the earnings on gross 26 revenue of the authority [ALASKA MARINE HIGHWAY SYSTEM] that was 27 deposited into the Alaska Marine Highway Authority [MARINE HIGHWAY 28 SYSTEM] fund during the prior fiscal year and projected earnings on gross revenue 29 of the authority [ALASKA MARINE HIGHWAY SYSTEM] that is projected to be 30 deposited into the Alaska Marine Highway Authority [MARINE HIGHWAY 31 SYSTEM] fund for the current fiscal year and the next fiscal year. The Department
01 of Revenue shall notify the legislature that the report is available. 02 * Sec. 8. AS 19.65.080 is amended to read: 03 Sec. 19.65.080. Annual appropriation. (a) Commencing with appropriations 04 for the fiscal year that begins July 1, 1991, on an annual basis and under AS 37.07 05 (Executive Budget Act), the legislature may appropriate amounts from the [ALASKA 06 MARINE HIGHWAY SYSTEM] fund for management and operation of [TO] the 07 authority [ALASKA MARINE HIGHWAY SYSTEM]. 08 (b) The authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC 09 FACILITIES] may request the legislature to appropriate money from the [ALASKA 10 MARINE HIGHWAY SYSTEM] fund to the authority [MARINE HIGHWAY 11 SYSTEM] for capital improvements [,] if 12 (1) the appropriation under (a) of this section has been made; 13 (2) the amount in the fund, without regard to the appropriation under 14 (a) of this section, exceeds the total of gross revenue deposited in the fund and the 15 general fund appropriations under AS 19.65.060(a)(2) by 10 percent; and 16 (3) the amount requested for appropriation under this subsection does 17 not exceed 50 percent of the balance remaining after the appropriation for annual 18 management and operations is made under (a) of this section. 19 (c) The unexpended and unobligated balance of money appropriated from the 20 [ALASKA MARINE HIGHWAY SYSTEM] fund lapses into the [ALASKA MARINE 21 HIGHWAY SYSTEM] fund at the end of the fiscal year for which it was appropriated. 22 * Sec. 9. AS 19.65.100 is amended to read: 23 Sec. 19.65.100. DEFINITIONS. In AS 19.65.050 - 19.65.100, 24 (1) "authority" means the Alaska Marine Highway Authority 25 ["ANNUAL OPERATING CYCLE" MEANS THE ANNUAL STATE FISCAL YEAR 26 BEGINNING ON JULY 1 AND ENDING AT MIDNIGHT ON THE FOLLOWING 27 JUNE 30]; 28 (2) "fiscal year" has the meaning given in AS 37.07.120; 29 (3) "fund" means the Alaska Marine Highway Authority fund; 30 (4) "gross revenue" means all money, except money refunded to ticket 31 holders and others for unused services, that is generated from the operation of the
01 authority [ALASKA MARINE HIGHWAY SYSTEM], including that derived from 02 vessel operations and uses of authority [ALASKA MARINE HIGHWAY SYSTEM] 03 facilities. 04 * Sec. 10. AS 23.40.040 is amended to read: 05 Sec. 23.40.040. Collective bargaining agreement. The Alaska Marine 06 Highway Authority [COMMISSIONER OF TRANSPORTATION AND PUBLIC 07 FACILITIES] or an authorized representative, in accordance with AS 23.40.020 - 08 23.40.030, may negotiate and enter into collective bargaining agreements concerning 09 wages, hours, working conditions, and other employment benefits with the employees 10 of the authority [DIVISION OF MARINE TRANSPORTATION] engaged in 11 operating the state ferry system as masters or members of the crews of vessels or their 12 bargaining agent. [A COLLECTIVE BARGAINING AGREEMENT IS NOT FINAL 13 WITHOUT THE CONCURRENCE OF THE COMMISSIONER OF 14 TRANSPORTATION AND PUBLIC FACILITIES.] The authority 15 [COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES] may make 16 provision in the collective bargaining agreement for the settlement of labor disputes 17 by arbitration. 18 * Sec. 11. AS 29.35.722 is amended to read: 19 Sec. 29.35.722. Ownership or operation of certain state facilities 20 prohibited. The state may not, without the approval of the legislature, 21 (1) convey or transfer the assets of the Alaska Marine Highway 22 Authority [MARINE HIGHWAY SYSTEM], the Anchorage or Fairbanks international 23 airports, or any other state asset, except undeveloped state land as provided in 24 AS 38.05.810 or surplused property, to an authority; or 25 (2) enter into an agreement with an authority under which the authority 26 would operate the Alaska marine highway system, the Anchorage or Fairbanks 27 international airports, or any other state facility, system, or function that employs one 28 or more employees. 29 * Sec. 12. AS 35.10.015(c) is amended to read: 30 (c) In this section, "public facilities" includes vessels owned by the state and 31 operated by the Alaska Marine Highway Authority [DIVISION OF MARINE
01 TRANSPORTATION OF THE DEPARTMENT AS A PART OF THE ALASKA 02 MARINE HIGHWAY SYSTEM]. All ferries owned or operated by the state shall be 03 equipped with elevators or other passenger lifting equipment, ramps, or other facilities 04 and devices to ensure that these vessels are accessible to and usable by physically 05 handicapped, aged, or infirm passengers. In this subsection, "accessible to and usable 06 by" means that a physically handicapped, aged, or infirm passenger can board, 07 disembark, and move between decks and about the public areas aboard a state ferry 08 with personal comfort and safety, and with safety to, other passengers and members 09 of the crew. 10 * Sec. 13. AS 35.10.015(d) is amended to read: 11 (d) A [AFTER JUNE 25, 1976, A] ferry may not be constructed, lengthened, 12 completely renovated, or purchased for use or entered into service by the Alaska 13 Marine Highway Authority [DIVISION OF MARINE TRANSPORTATION OF THE 14 DEPARTMENT AS A PART OF THE ALASKA MARINE HIGHWAY SYSTEM] 15 that does not include adequate facilities and devices to ensure that the vessel is 16 accessible to and usable by physically handicapped, aged, or infirm passengers. Some 17 staterooms and all restrooms, indoor passageways, outdoor weather decks, and other 18 public areas aboard the vessel shall be so designed and constructed as to permit access 19 and use by physically handicapped, aged, or infirm passengers, including [BUT NOT 20 LIMITED TO] those persons occupying a wheelchair. 21 * Sec. 14. AS 35.27.020(c) is amended to read: 22 (c) At least one percent or, in the case of a rural school facility, at least one- 23 half of one percent of the construction cost of a building or facility approved for construction 24 by the legislature after September 1, 1977, will be reserved for the following purposes: the 25 design, construction, mounting, and administration of works of art in a school, office building, 26 court building, [VESSEL OF THE MARINE HIGHWAY SYSTEM,] or other building or 27 facility that [WHICH] is subject to substantial public use. 28 * Sec. 15. AS 35.27 is amended by adding a new section to read: 29 Sec. 35.27.025. Application to Alaska Marine Highway Authority. This 30 chapter applies to the Alaska Marine Highway Authority. Compliance with this 31 chapter is the sole responsibility of the authority with respect to the buildings and
01 facilities of the authority. 02 * Sec. 16. AS 35.27.030(1) is amended to read: 03 (1) "building" or "facility" means a permanent improvement constructed 04 by the department or authority; the term 05 (A) includes, but is not limited to, 06 (i) schools, office buildings, and court buildings; 07 (ii) other buildings that [WHICH] the commissioner 08 determines are designed for substantial public use; 09 (iii) [BOATS AND VESSELS OF THE MARINE 10 HIGHWAY SYSTEM; 11 (iv)] transportation facilities that [WHICH] 12 accommodate traveling passengers; 13 (B) excludes other transportation facilities and boats and 14 vessels of the authority; 15 * Sec. 17. AS 35.27.030 is amended by adding a new paragraph to read: 16 (4) "authority" means the Alaska Marine Highway Authority. 17 * Sec. 18. AS 36.30.015(g) is amended to read: 18 (g) The Alaska Marine Highway Authority [DEPARTMENT OF 19 TRANSPORTATION AND PUBLIC FACILITIES] shall adopt regulations to manage 20 the procurement of supplies, services, professional services, and construction for the 21 repair, maintenance, and reconstruction of vessels, docking facilities, and passenger and 22 vehicle transfer facilities of the Alaska marine highway system. The regulations must 23 be based on principles of competitive procurement consistent with this chapter to 24 satisfy the special requirements of the Alaska marine highway system as determined 25 by the Alaska Marine Highway Authority [DEPARTMENT OF 26 TRANSPORTATION AND PUBLIC FACILITIES]. 27 * Sec. 19. AS 36.30.850(b)(29) is amended to read: 28 (29) construction of new vessels by the Alaska Marine Highway 29 Authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES] 30 for the Alaska marine highway system; 31 * Sec. 20. AS 36.30.990(1) is amended to read:
01 (1) "agency" 02 (A) means a department, institution, board, commission, 03 division, authority, public corporation, the Alaska Pioneers' Home, or other 04 administrative unit of the executive branch of state government; 05 (B) does not include 06 (i) the University of Alaska; 07 (ii) the Alaska Railroad Corporation; 08 (iii) the Alaska Housing Finance Corporation; 09 (iv) a regional Native housing authority created under 10 AS 18.55.996 or a regional electrical authority created under 11 AS 18.57.020; 12 (v) the Alaska Marine Highway Authority 13 [DEPARTMENT OF TRANSPORTATION AND PUBLIC 14 FACILITIES], in regard to the repair, maintenance, and reconstruction 15 of vessels, docking facilities, and passenger and vehicle transfer 16 facilities of the Alaska marine highway system; 17 (vi) the Alaska Aerospace Development Corporation; 18 (vii) the Alaska State Pension Investment Board; 19 (viii) the Alaska Seafood Marketing Institute; 20 * Sec. 21. AS 36.90.050(a) is amended to read: 21 (a) Marine vessels owned by the state shall be maintained and repaired at a 22 shipyard facility located in the state unless the commissioner of the department that 23 operates the marine vessel determines in writing that there is no shipyard facility 24 located in the state that is equipped or qualified to perform the particular maintenance 25 or repair required, or, after taking into consideration the Alaska bidder preference set 26 out in AS 36.30.170 and the interport differential, as determined by the Alaska Marine 27 Highway Authority under this section [MARINE HIGHWAY SYSTEM], that the 28 proposed cost of the maintenance or repair work is unreasonable. In making the 29 determination, the commissioner shall consider, and document in writing, the 30 direct and indirect benefits to the economy and labor force in the state that would 31 be derived by performing the vessel maintenance and repair at a facility in the
01 state. A detailed list of the costs and factors considered in calculating the 02 interport differential must be provided to each person who expresses an interest 03 in submitting a bid to perform maintenance or repair work on a marine vessel 04 owned by the state. [IN THIS SUBSECTION, "COMMISSIONER OF THE 05 DEPARTMENT THAT OPERATES THE MARINE VESSEL" INCLUDES THE 06 PRESIDENT OF THE UNIVERSITY OF ALASKA WITH REGARD TO A VESSEL 07 OPERATED BY THE UNIVERSITY.] 08 * Sec. 22. AS 36.90.050 is amended by adding new subsections to read: 09 (c) The commissioner of a department that operates a marine vessel shall adopt 10 regulations establishing the criteria that the department shall use to determine whether 11 the cost of maintenance or repair work at a shipyard facility located in the state is 12 reasonable under (a) of this section. The commissioner shall designate by regulation 13 the designated base port for each vessel operated by the department. A vessel's 14 designated base port is the vessel's delivery and redelivery port. The Alaska Marine 15 Highway Authority shall adopt regulations establishing the criteria that the authority 16 shall use in calculating the interport differential under this section. The criteria for 17 calculating the interport differential must include costs incurred from the time that the 18 vessel leaves the vessel's designated base port to enter the shipyard facility until the 19 time that the vessel returns to the designated base port from the shipyard facility. 20 (d) In this section, 21 (1) "commissioner of the department that operates the marine vessel" 22 includes the president of the University of Alaska with regard to a vessel operated by 23 the university and the chief executive officer of the Alaska Marine Highway Authority 24 with regard to a vessel operated by the Alaska Marine Highway Authority; 25 (2) "interport differential" includes all costs related to the performance 26 of the maintenance or repair work of a marine vessel at a shipyard located outside of 27 the state, including travel costs incurred moving the vessel from its designated base 28 port to the shipyard outside of the state; additional fuel consumption; cost of 29 consumables including lubricants and other engine and deck stores; maintenance costs 30 incurred during running time; cost of crew transfers including airfare between Alaska 31 and the shipyard; wages in travel status; crew room and board; and other interport
01 costs identified by the Alaska Marine Highway Authority. 02 * Sec. 23. AS 37.05.550 is amended to read: 03 Sec. 37.05.550. Alaska Marine Highway Authority [MARINE HIGHWAY 04 SYSTEM] vessel replacement fund. (a) There is in the general fund the Alaska 05 Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel replacement 06 fund. The fund consists of money appropriated to it by the legislature. Money 07 appropriated to the fund does not lapse. The Department of Revenue shall manage the 08 fund. Interest received on money in the fund shall be accounted for separately and may 09 be appropriated into the fund annually. The legislature may appropriate money from 10 the fund for refurbishment of existing state ferry vessels, acquisition of additional state 11 ferry vessels, or replacement of retired or outmoded state ferry vessels. 12 (b) The legislature may appropriate to the fund money received by the state 13 as Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] program 14 receipts or from a settlement or final judicial determination of the Dinkum Sands case 15 (United States v. Alaska) [AND THE NORTH SLOPE ROYALTY CASE (STATE V. 16 AMERADA HESS, ET AL.)] and not deposited into the Alaska permanent fund under 17 AS 37.13.010(a)(1) or (2) or into the public school trust fund under AS 37.14.150. 18 (c) The Department of Revenue shall prepare a written report, no later than the 19 10th legislative day of each regular legislative session, regarding the earnings of the 20 Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel 21 replacement fund during the prior fiscal year and projected earnings of the Alaska 22 Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel replacement 23 fund for the current fiscal year and the next fiscal year. The Department of Revenue 24 shall notify the legislature that the report is available. 25 * Sec. 24. AS 39.20.310(8) is amended to read: 26 (8) persons employed by the Alaska Marine Highway Authority 27 [DIVISION OF MARINE TRANSPORTATION] as masters and members of the crews 28 operating the state ferry system who are covered by collective bargaining agreements 29 as provided in AS 23.40.040, except as expressly provided by law; 30 * Sec. 25. AS 39.25.110(11) is amended to read: 31 (11) the officers and employees of the following boards, commissions,
01 and authorities: 02 (A) [REPEALED 03 (B)] Alaska Permanent Fund Corporation; 04 (B) [(C)] Alaska Industrial Development and Export Authority; 05 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 06 (D) [(E)] Alaska Commission on Postsecondary Education; 07 (E) [(F)] Alaska Aerospace Development Corporation; 08 (F) Alaska Marine Highway Authority; 09 * Sec. 26. AS 39.30.150(b) is amended to read: 10 (b) Employees of the Alaska Marine Highway Authority [DIVISION OF 11 MARINE TRANSPORTATION] included in the public employees' retirement system 12 through the process of collective bargaining under AS 39.35.680(21)(D) may, under 13 the terms of a collective bargaining agreement, utilize contributions made under (a) of 14 this section on their behalf to offset the costs of inclusion in the public employees' 15 retirement system; however, 16 (1) the state is placed under no obligation to continue making 17 contributions under this section if the state resumes participation in the federal social 18 security system; 19 (2) the bargaining agreement must provide a mechanism for satisfying 20 any residual liabilities that might exist if the state resumes participation in the federal 21 social security system; and 22 (3) funds contributed under (a) of this section on behalf of employees 23 who are not covered by maritime union contracts may not be obligated or expended 24 to pay any costs associated with the inclusion of marine transportation employees in 25 the public employees' retirement system. 26 * Sec. 27. AS 39.35.680(21) is amended to read: 27 (21) "member" or "employee" 28 (A) means a person eligible to participate in the system and 29 who is covered by the system; 30 (B) includes 31 (i) active member;
01 (ii) inactive member; 02 (iii) vested member; 03 (iv) deferred vested member; 04 (v) non-vested member; 05 (vi) disabled member; 06 (vii) retired member; 07 (viii) an elected public officer under AS 39.35.381; 08 (C) does not include 09 (i) former members; 10 (ii) persons compensated on a contractual or fee basis; 11 (iii) casual or emergency workers or nonpermanent 12 employees as defined in AS 39.25.200; 13 (iv) persons covered by the Alaska Teachers' Retirement 14 System except as provided under AS 39.35.131 and 39.35.381, or 15 persons covered by the optional university retirement program; 16 (v) employees of the Alaska Marine Highway 17 Authority [DIVISION OF MARINE TRANSPORTATION] engaged 18 in operating the state ferry system who are covered by a union or group 19 retirement system to which the state makes contributions; 20 (vi) justices of the supreme court or judges of the court 21 of appeals or of the superior or district courts of Alaska; 22 (vii) the administrative director of courts appointed 23 under art. IV, sec. 16 of the state constitution unless the director 24 becomes a member under AS 39.35.158; and 25 (viii) members of the elected public officers' retirement 26 system (former AS 39.37); 27 (D) may include employees of the Alaska Marine Highway 28 Authority [DIVISION OF MARINE TRANSPORTATION] excluded under 29 (C)(v) of this paragraph provided that 30 (i) the State of Alaska formally agrees to their inclusion 31 through the process of collective bargaining; and
01 (ii) no collective bargaining agreement has the effect of 02 obligating contributions made by the state under AS 39.30.150 in the 03 event the state resumes participation in the federal social security 04 system; 05 * Sec. 28. AS 39.50.200(b) is amended by adding a new paragraph to read: 06 (56) Alaska Marine Highway Authority (AS 19.55.010). 07 * Sec. 29. AS 44.42.020(a)(1) is amended to read: 08 (1) plan, design, construct, and maintain all state modes of 09 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 10 and similar facilities, except that departmental planning, design, construction, or 11 maintenance of transportation modes or facilities under the jurisdiction of the 12 Alaska Marine Highway Authority is subject to direction by the Alaska Marine 13 Highway Authority; 14 * Sec. 30. AS 44.42.020(a)(7) is amended to read: 15 (7) manage, operate, and maintain state transportation facilities and all 16 docks, floats, breakwaters, and buildings, including all state highways, vessels, 17 railroads, pipelines, airports, and aviation facilities, except that the department is not 18 responsible for management or operation of transportation facilities under the 19 jurisdiction of the Alaska Marine Highway Authority or for management, 20 operation, or maintenance of vessels or equipment under the jurisdiction of the 21 Alaska Marine Highway Authority; 22 * Sec. 31. TRANSFER OF APPROPRIATIONS, EMPLOYEES, AND ASSETS TO 23 ALASKA MARINE HIGHWAY AUTHORITY. (a) Employees of the Department of 24 Transportation and Public Facilities assigned to the management, operation, and maintenance 25 of the Alaska marine highway system on the effective date of this section are transferred to 26 the Alaska Marine Highway Authority as state employees of the authority. The commissioner 27 of transportation and public facilities shall determine which employees are transferred to the 28 authority. An employee who is transferred to the authority under this subsection shall 29 continue to participate without interruption in the supplemental employee benefits program 30 under AS 39.30.150 - 39.30.180 and in the public employees' retirement system under 31 AS 39.35 if the employee was a participant in these programs on the day before the employee
01 was transferred to the authority. 02 (b) During the term of a collective bargaining agreement that applies to employees 03 who are transferred to the Alaska Marine Highway Authority and that is in effect on the 04 effective date of this section, nothing in this Act terminates or modifies recognition of the 05 exclusive bargaining representative for those employees or that collective bargaining 06 agreement. The Alaska Marine Highway Authority shall abide by the collective bargaining 07 agreements that are in effect for employees transferred to the authority on the date of transfer. 08 A collective bargaining agreement covering employees transferred under this Act shall remain 09 in effect for the term of the agreement unless the agreement is renegotiated by the Alaska 10 Marine Highway Authority and the exclusive bargaining representative. The legislature finds 11 that the community of interest of shore-based employees of the Alaska Marine Highway 12 Authority is substantially different from the community of interest of the employees of the 13 executive branch in the classified service. Accordingly, the shore-based employees of the 14 Alaska Marine Highway Authority are severed from their recognized collective bargaining 15 units in effect on the effective date of this section on expiration of the collective bargaining 16 agreement in effect on the effective date of this section for their unit. The severed units shall 17 continue as units of the Alaska Marine Highway Authority with the exclusive representative 18 in place at the time of the severance until actions under AS 23.40.070 - 23.40.260 (Public 19 Employment Relations Act) change the units or representatives. 20 (c) The unexpended and unobligated balances of operating and capital appropriations 21 for the Department of Transportation and Public Facilities, Alaska marine highway system, 22 shall be transferred to the Alaska Marine Highway Authority. 23 (d) The personal property assets and real property assets, including ferries, equipment, 24 buildings, and associated facilities, of the Department of Transportation and Public Facilities, 25 Alaska marine highway system, shall be transferred to the Alaska Marine Highway Authority. 26 * Sec. 32. INITIAL APPOINTMENT OF MEMBERS OF THE ALASKA MARINE 27 HIGHWAY AUTHORITY. (a) Notwithstanding AS 19.55.020(b), added by sec. 2 of this 28 Act, and AS 39.05.055, the initially appointed members of the board of directors of the Alaska 29 Marine Highway Authority shall be appointed by the governor to terms as follows: one 30 member serves for one year, one member serves for two years, one member serves for three 31 years, one member serves for four years, and two members serve for five years.
01 (b) The governor shall appoint the initial members of the board of directors of the 02 Alaska Marine Highway Authority, as provided for under AS 19.55.020(a), added by sec. 2 03 of this Act, before December 1, 1997. 04 * Sec. 33. AS 19.65.011, 19.65.020, 19.65.030; and AS 39.25.110(16) are repealed. 05 * Sec. 34. Section 5, ch. 94, SLA 1992, is repealed. 06 * Sec. 35. Sections 1, 21, 22, 32, and 34 of this Act take effect immediately under 07 AS 01.10.070(c). 08 * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect January 1, 1998.