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CSSB 314(FIN): "An Act relating to the Alaska marine highway system and to municipal feeder vessel authorities and port authorities."

00CS FOR SENATE BILL NO. 314(FIN) 01 "An Act relating to the Alaska marine highway system and to municipal feeder 02 vessel authorities and port authorities." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 19.65.011 is amended by adding a new subsection to read: 05  (b) The long-range plan and revisions and updates of the plan shall provide for 06 increased service by ferries operated by the Alaska marine highway system along main 07 lines running north and south, with the gradual phasing out of ferry service to smaller 08 municipalities and communities as service to those areas becomes available through 09 the operation of feeder vessels by authorities established under AS 29.35.605 or 10 29.35.750. 11 * Sec. 2. AS 19.65 is amended by adding a new section to read: 12  Sec. 19.65.013. Contracts with feeder vessel authorities. The department 13 may enter into a contract with a port authority established under AS 29.35.605 or with 14 a feeder vessel authority established under AS 29.35.750 to provide ferry service to

01 connect communities and municipalities with ferry services provided by the Alaska 02 marine highway system. 03 * Sec. 3. AS 19.65.030(c) is amended to read: 04  (c) The department shall permit a port authority established under 05 AS 29.35.605 or a feeder vessel authority established under AS 29.35.750 to use 06 ferry terminal facilities that are operated by the department. The department may 07 adopt regulations governing the use of ferry terminal facilities by the public that it 08 considers necessary and proper in the public interest. The department may charge a 09 fee for the use of ferry terminal facilities that are operated by the department , 10 whether the use is under a permit or otherwise, and whether it is by one or more 11 individuals. 12 * Sec. 4. AS 29.35 is amended by adding new sections to read: 13 Article 10. Feeder Vessel Authorities. 14  Sec. 29.35.750. Establishment of feeder vessel authorities. (a) A feeder 15 vessel authority may be established to operate a system of feeder vessels that transport 16 passengers and motor vehicles from the area served by the authority to ferry terminal 17 facilities used by the Alaska marine highway system to enable passengers to connect 18 with other ferries. The authority may be established by one of the following means: 19  (1) the governing body of a municipality may establish the authority 20 by ordinance; or 21  (2) the governing bodies of two or more municipalities may establish 22 the authority by parallel ordinances adopted by each of the governing bodies. 23  (b) One or more municipalities may join an authority established under (a) of 24 this section upon the adoption of parallel ordinances by the governing bodies of each 25 affected municipality. 26  (c) A feeder vessel authority established under this section is a body corporate 27 and politic and an instrumentality of the municipality or municipalities that participate 28 in it, but it has a separate and independent legal existence. Establishing or joining an 29 authority is an exercise of a municipality's transportation system powers. The enabling 30 ordinance by which an authority is established must specify the powers and duties of 31 the authority.

01  Sec. 29.35.755. Dissolution of a feeder vessel authority. The enabling 02 ordinance by which a feeder vessel authority is established must provide for the 03 manner by which the authority may be dissolved. If an authority is dissolved, its 04 assets shall be distributed to the municipalities that participated in the authority in 05 proportion to the difference between their contributions to the authority and any 06 outstanding debts, or obligations of the municipalities to the authority, provided that 07 any other obligations of the authority shall first be satisfied in full. 08  Sec. 29.35.760. Powers. Subject to the enabling ordinance, a feeder vessel 09 authority may 10  (1) sue and be sued; 11  (2) acquire an interest in property by purchase, gift, lease, or contract; 12  (3) accept grants, gifts, or loans and enter into contracts; 13  (4) acquire, manage, and operate ferry terminal facilities and vessels; 14  (5) regulate and charge fees for the use of property owned or managed 15 by the authority; 16  (6) enter into contracts with the Department of Transportation and 17 Public Facilities to provide connecting ferry service to communities and municipalities 18 that are participating in the authority and to communities and municipalities that are 19 not participating; 20  (7) exercise any power that enables the authority to provide connecting 21 ferry service with ferries operated by the Alaska marine highway system. 22  Sec. 29.35.765. Liability. A liability incurred by a feeder vessel authority 23 shall be satisfied exclusively from the assets or revenue of the authority. A creditor 24 or other person does not have a right of action against the state or a municipality 25 participating in an authority because of a debt, obligation, or liability of the authority. 26 A board member or employee of an authority is not subject to personal liability or 27 accountability that may result from the exercise of official duties for the authority. 28  Sec. 29.35.770. Administration. A feeder vessel authority is governed by a 29 board of directors. The enabling ordinance establishing the authority must specify the 30 number, qualifications, manner of appointment or election, and terms of members of 31 the board. The board shall appoint a chief executive officer who serves at the pleasure

01 of the board. The board shall adopt bylaws and regulations consistent with the 02 enabling ordinance to carry out its functions and purposes. 03  Sec. 29.35.775. Feeder vessel authority grant fund. (a) The feeder vessel 04 authority grant fund is established in the Department of Transportation and Public 05 Facilities consisting of appropriations of federal or other funds. Money in the fund 06 may be used by the Department of Transportation and Public Facilities to make grants 07 to 08  (1) municipalities to study the feasibility of establishing authorities 09 under AS 29.35.750 - 29.35.770; 10  (2) authorities established under AS 29.35.600 - 29.35.730 or 11 AS 29.35.750 - 29.35.770 for acquisition, construction, or maintenance of ferry 12 terminal facilities or feeder vessels. 13  (b) The Department of Transportation and Public Facilities shall establish the 14 terms and conditions for receipt of a grant under this section and shall provide forms 15 for applying for a grant. The Department of Transportation and Public Facilities shall 16 prioritize each project for which a grant is requested and inform the legislature of the 17 amount of money needed to fund priority grants for the next fiscal year.