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HB 412: "An Act relating to the Alaska marine highway system; establishing the Alaska Marine Highway System Corporation; and providing for an effective date."

00                             HOUSE BILL NO. 412                                                                          
01 "An Act relating to the Alaska marine highway system; establishing the Alaska Marine                                    
02 Highway System Corporation; and providing for an effective date."                                                       
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. AS 08.88.690 is amended to read:                                                                      
05            Sec. 08.88.690. Exemptions. A real estate licensee is exempt from the                                      
06       signature requirements of AS 08.88.600 - 08.88.695 when the licensee provides                                     
07       specific assistance to                                                                                            
08                 (1)  a corporation that issues publicly traded securities;                                              
09                 (2)  a business that has a net worth in the previous calendar year of                                   
10       $2,000,000 or more, if the business requests the exemption from the licensee; or                                  
11 (3)  a governmental agency; in this paragraph, "governmental agency"                                                    
12 means a department, division, public agency, political subdivision, or other public                                     
13 instrumentality of the state or federal government, including the University of Alaska,                                 
14 the Alaska Railroad Corporation, the Alaska Housing Finance Corporation, the Alaska                                     
01       Industrial Development and Export Authority, the Alaska Marine Highway System                                 
02       Corporation, and other public corporations.                                                                   
03    * Sec. 2. AS 18.56.600 is amended to read:                                                                         
04            Sec. 18.56.600. Definitions. In AS 18.56.400 - 18.56.600,                                                  
05                 (1)  "housing" means owner-occupied, single-family housing and                                          
06       owner-occupied duplexes in which not more than 25 percent of the gross floor area is                              
07       or will be devoted to commercial use;                                                                             
08                 (2)  "small community" means a community with a population of 6,500                                     
09       or less that is not connected by road or rail to Anchorage or Fairbanks, or with a                                
10 population of 1,600 or less that is connected by road or rail to Anchorage or                                           
11       Fairbanks; in this paragraph,                                                                                     
12 (A)  "Alaska marine highway system" has the meaning                                                                 
13            given in AS 42.50.990;                                                                                   
14 (B)  "connected by road" does not include a connection by the                                                       
15            Alaska marine highway system.                                                                                
16    * Sec. 3. AS 19.10.399(7) is amended to read:                                                                      
17 (7)  "highway" means the entire width between the boundary lines of                                                     
18 every way that is publicly maintained when a part of it is open to the public for                                       
19 purposes of vehicular travel, including [BUT NOT LIMITED TO] every street and the                                       
20 Alaska [STATE] marine highway system as defined in AS 42.50.990, but not                                            
21       vehicular ways or areas;                                                                                          
22    * Sec. 4. AS 19.65.011 is amended to read:                                                                         
23 Sec. 19.65.011. Comprehensive long-range plan. The corporation                                                    
24 [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, IN                                                                 
25 CONSULTATION WITH THE ALASKA MARINE TRANSPORTATION                                                                      
26 ADVISORY BOARD,] shall prepare a comprehensive long-range plan for the                                                  
27 development and improvement of the Alaska marine highway system and shall [, IN                                         
28 CONSULTATION WITH THE ALASKA MARINE TRANSPORTATION                                                                      
29 ADVISORY BOARD,] revise and update the plan at least every five years. The                                              
30 corporation [DEPARTMENT] shall submit the comprehensive long-range plan and                                         
31       revisions and updates of the plan to the legislature.                                                             
01    * Sec. 5. AS 19.65.020(a) is amended to read:                                                                      
02            (a)  A vessel or facility of the Alaska marine highway system constructed or                                 
03       acquired by the Department of Transportation and Public Facilities under this chapter                             
04       or by the corporation may be given a name only by law.                                                        
05    * Sec. 6. AS 19.65.030(a) is amended to read:                                                                      
06 (a)  The corporation [DEPARTMENT] shall construct, purchase, or lease                                               
07 ferry terminal facilities at locations it selects for the loading and unloading of                                      
08 passengers, and vehicles under their own power, on and off ferries. The corporation                                 
09 [DEPARTMENT] shall repair and maintain these facilities. [CONSTRUCTION AND                                              
10 PURCHASING UNDER THIS SUBSECTION ARE GOVERNED BY AS 36.30                                                               
11       (STATE PROCUREMENT CODE).]                                                                                        
12    * Sec. 7. AS 19.65.030(b) is amended to read:                                                                      
13 (b)  The corporation [DEPARTMENT] may connect ferry terminal facilities                                             
14       with local highway systems.                                                                                       
15    * Sec. 8. AS 19.65.030(c) is amended to read:                                                                      
16 (c)  The corporation [DEPARTMENT] may adopt regulations under                                                   
17 AS 42.50 governing the use of ferry terminal facilities by the public that it considers                             
18 necessary and proper in the public interest. The corporation [DEPARTMENT] may                                       
19 charge a fee for the use of ferry terminal facilities, whether the use is under a permit or                             
20       otherwise, and whether it is by one or more individuals.                                                          
21    * Sec. 9. AS 19.65.030(d) is amended to read:                                                                      
22 (d)  A person may construct a ferry terminal facility upon obtaining the                                                
23 approval of the corporation [DEPARTMENT] as to its location. A ferry terminal                                       
24 facility constructed by a person other than the corporation [DEPARTMENT] is                                         
25 subject to reasonable regulations governing its use that the corporation                                            
26       [DEPARTMENT] considers necessary and proper in the public interest.                                               
27    * Sec. 10. AS 19.65.030(e) is amended to read:                                                                     
28 (e)  A ferry terminal facility may not be constructed without the approval of                                           
29       the corporation [DEPARTMENT].                                                                                 
30    * Sec. 11. AS 19.65.035 is amended to read:                                                                        
31 Sec. 19.65.035. Transportation of members of the Alaska organized                                                     
01 militia. To the extent that space is available, the corporation [COMMISSIONER OF                                  
02 TRANSPORTATION AND PUBLIC FACILITIES] shall provide free transportation                                                 
03 on vessels of the Alaska marine highway system for a member of the Alaska National                                      
04 Guard, the Alaska Naval Militia, or the Alaska State Defense Force who is en route to                                   
05       or from drill, training, or other official militia activities.                                                    
06    * Sec. 12. AS 19.65 is amended by adding a new section to Article 2 to read:                                     
07            Sec. 19.65.040. Definition. In AS 19.65.011 - 19.65.035, "corporation" means                               
08       the Alaska Marine Highway System Corporation established by AS 42.50.010.                                         
09    * Sec. 13. AS 19.65.070 is amended to read:                                                                        
10 Sec. 19.65.070. Revenue and debt service accounting. (a) The corporation                                        
11 [ALASKA MARINE HIGHWAY SYSTEM] shall account for and remit to the                                                       
12 Department of Revenue in accordance with AS 37.10.050 all gross revenue generated                                       
13 from the operation of the Alaska marine highway system during each annual operating                                     
14       cycle. The money shall then be deposited in the Alaska marine highway system fund.                                
15 (b)  The corporation [ALASKA MARINE HIGHWAY SYSTEM] shall                                                           
16 prepare a written report, not [NO] later than the 10th day of each regular legislative                              
17 session, regarding the previous annual operating cycle and notify the legislature that                                  
18       the report is available. The report must identify                                                                 
19 (1)  gross revenue generated during the previous annual operating                                                       
20       cycle;                                                                                                            
21 (2)  gross revenue generated during the current annual operating cycle                                                  
22 and an estimate of gross revenue for the remainder of the current annual operating                                      
23       cycle;                                                                                                            
24 (3)  projections of the gross revenue to be generated during the next                                                   
25       annual operating cycle; [AND]                                                                                     
26 (4)  the difference between previous gross revenue estimates prepared                                                   
27       under this section and the revenue [REVENUES] actually generated; and                                     
28 (5)  the amount of money that is required to cover the repayment of                                                 
29 interest and principal for the debts of the corporation during the current fiscal                                   
30       year and the next fiscal year.                                                                              
31 (c)  The Department of Revenue shall prepare a written report, not [NO] later                                       
01 than the 10th legislative day of each regular legislative session, regarding the earnings                               
02 on gross revenue of the Alaska marine highway system that was deposited into the                                        
03 Alaska marine highway system fund during the prior fiscal year, [AND] projected                                     
04 earnings on gross revenue of the Alaska marine highway system that is projected to be                                   
05 deposited into the Alaska marine highway system fund for the current fiscal year and                                    
06 the next fiscal year, and the amount of cash that is required to cover the                                          
07 repayment of interest and principal for the debts of the corporation during the                                     
08 current fiscal year and the next fiscal year. The Department of Revenue shall notify                                
09       the legislature that the report is available.                                                                     
10    * Sec. 14. AS 19.65.080(b) is amended to read:                                                                     
11 (b)  The corporation [DEPARTMENT OF TRANSPORTATION AND                                                              
12 PUBLIC FACILITIES] may request the legislature to appropriate money from the                                            
13 Alaska marine highway system fund to the Alaska marine highway system for capital                                   
14       improvements, if                                                                                                  
15                 (1)  the appropriation under (a) of this section has been made;                                         
16 (2)  the amount in the fund, without regard to the appropriation under                                                  
17 (a) of this section, exceeds the total of gross revenue deposited in the fund and the                                   
18       general fund appropriations under AS 19.65.060(a)(2) by 10 percent; and                                           
19 (3)  the amount requested for appropriation under this subsection does                                                  
20 not exceed 50 percent of the balance remaining after the appropriation for annual                                       
21       management and operations is made under (a) of this section.                                                      
22    * Sec. 15. AS 19.65.100 is amended by adding new paragraphs to read:                                               
23 (3)  "Alaska marine highway system" has the meaning given in                                                            
24       AS 42.50.990;                                                                                                     
25 (4)  "corporation" means the Alaska Marine Highway System                                                               
26       Corporation established by AS 42.50.010.                                                                          
27    * Sec. 16. AS 23.05.360(f) is amended to read:                                                                     
28 (f)  For purposes of holding hearings, the members of the board sit in panels of                                        
29 three members. The chair designates the panel that will consider a matter. Each panel                                   
30 must include a representative of management, a representative of labor, and a                                           
31 representative from the general public. A member of one panel may serve on the other                                    
01 panel when the chair considers it necessary for the prompt administration of                                            
02 AS 23.40.070 - 23.40.260 (Public Employment Relations Act), [OR] AS 42.40                                           
03 (Alaska Railroad Corporation Act), or AS 42.50 (Alaska Marine Highway System                                        
04       Corporation Act).                                                                                             
05    * Sec. 17. AS 23.05.370(a) is amended to read:                                                                     
06            (a)  The agency shall                                                                                        
07                 (1)  establish its own rules of procedure;                                                              
08                 (2)  exercise general supervision and direct the activities of staff                                    
09       assigned to it by the department;                                                                                 
10 (3)  prepare and submit to the governor an annual report on labor                                                       
11 relations problems it has encountered during the previous year, including                                               
12 recommendations for legislative action; the agency shall notify the legislature that the                                
13       report is available;                                                                                              
14 (4)  serve as the labor relations agency under AS 23.40.070 - 23.40.260                                                 
15 (Public Employment Relations Act) and carry out the functions specified in that Act;                                    
16       and                                                                                                               
17 (5)  serve as the railroad labor relations agency for the Alaska Railroad                                               
18 under AS 42.40 (Alaska Railroad Corporation Act), and as the labor relations                                        
19 agency for the Alaska marine highway system under AS 42.50 (Alaska Marine                                           
20 Highway System Corporation Act), and carry out the functions specified in each                                  
21       [THAT] Act.                                                                                                       
22    * Sec. 18. AS 23.40.030 is amended to read:                                                                        
23 Sec. 23.40.030. Definition of labor organization. For the purpose of                                                  
24 AS 23.40.020 - 23.40.040, "labor organization" includes an organization constituted                                 
25 wholly or partly to bargain collectively or deal with employers, including the state,                               
26 [AND] its political subdivisions, and the Alaska Marine Highway System                                              
27 Corporation, concerning grievances, terms, or conditions of employment or other                                     
28       mutual aid or protection in connection with employees.                                                            
29    * Sec. 19. AS 23.40.040 is amended to read:                                                                        
30 Sec. 23.40.040. Collective bargaining agreement. The corporation                                                  
31 [COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES] or an                                                            
01 authorized representative, in accordance with AS 23.40.020 and 23.40.030                                            
02 [AS 23.40.020 - 23.40.030], may negotiate and enter into collective bargaining                                          
03 agreements under AS 42.50 concerning wages, hours, working conditions, and other                                    
04 employment benefits with the employees of the corporation [DIVISION OF                                              
05 MARINE TRANSPORTATION] engaged in operating the Alaska marine highway                                               
06 [STATE FERRY] system as masters or members of the crews of vessels, or with                                         
07 other employees of the corporation, or their bargaining agent. [A COLLECTIVE                                        
08 BARGAINING AGREEMENT IS NOT FINAL WITHOUT THE CONCURRENCE                                                               
09 OF THE COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES.]                                                           
10 The corporation [COMMISSIONER OF TRANSPORTATION AND PUBLIC                                                          
11 FACILITIES] may make provision in the collective bargaining agreement for the                                           
12       settlement of labor disputes by arbitration. In this section,                                                 
13 (1)  "Alaska marine highway system" has the meaning given in                                                        
14       AS 42.50.990;                                                                                                 
15 (2)  "corporation" means the Alaska Marine Highway System                                                           
16       Corporation established by AS 42.50.010.                                                                      
17    * Sec. 20. AS 23.40.250(7) is amended to read:                                                                     
18 (7)  "public employer" means the state or a political subdivision of the                                                
19 state, including, without limitation, a municipality, district, school district, regional                           
20 educational attendance area, board of regents, public and quasi-public corporation, the                             
21 Alaska Marine Highway System Corporation, housing authority, or other authority                                     
22 established by law, and a person designated by the public employer to act in its                                        
23       interest in dealing with public employees;                                                                        
24    * Sec. 21. AS 28.90.990(a)(14) is amended to read:                                                                 
25 (14)  "highway" means the entire width between the boundary lines of                                                    
26 every way that is publicly maintained when a part of it is open to the public for                                       
27 purposes of vehicular travel, including [BUT NOT LIMITED TO] every street and the                                       
28 Alaska [STATE] marine highway system but not vehicular ways or areas; in this                                       
29 paragraph, "Alaska marine highway system" has the meaning given in                                                  
30       AS 42.50.990;                                                                                                 
31    * Sec. 22. AS 29.35.722 is amended to read:                                                                        
01 Sec. 29.35.722. Ownership or operation of certain state facilities                                                    
02       prohibited. The state may not, without the approval of the legislature,                                         
03 (1)  convey or transfer the [ALASKA MARINE HIGHWAY                                                                      
04 SYSTEM, THE] Anchorage or Fairbanks international airports, or any other state                                          
05 asset, except undeveloped state land as provided in AS 38.05.810 or surplused                                           
06       property, to an authority; or                                                                                     
07 (2)  enter into an agreement with an authority under which the authority                                                
08 would operate the [ALASKA MARINE HIGHWAY SYSTEM, THE] Anchorage or                                                      
09 Fairbanks international airports, or any other state facility, system, or function that                                 
10       employs one or more employees.                                                                                    
11    * Sec. 23. AS 35.10.015(d) is amended to read:                                                                     
12 (d)  After June 25, 1976, a ferry may not be constructed, lengthened,                                                   
13 completely renovated, or purchased for use or entered into service by the Alaska                                    
14 Marine Highway System Corporation [DIVISION OF MARINE                                                               
15 TRANSPORTATION OF THE DEPARTMENT] as a part of the Alaska marine                                                        
16 highway system that does not include adequate facilities and devices to ensure that the                                 
17 vessel is accessible to and usable by persons with disabilities and by aged or infirm                                   
18 passengers. Some staterooms and all restrooms, indoor passageways, outdoor weather                                      
19 decks, and other public areas aboard the vessel shall be so designed and constructed as                                 
20 to permit access and use by persons with disabilities and by aged or infirm passengers,                                 
21       including those persons occupying a wheelchair.                                                                   
22    * Sec. 24. AS 35.10.015(g) is amended to read:                                                                     
23            (g)  In this section,                                                                                        
24 (1)  "Alaska marine highway system" means the marine highway                                                        
25       system operated by the corporation;                                                                           
26 (2)  "corporation" means the Alaska Marine Highway System                                                           
27       Corporation established by AS 42.50.010;                                                                      
28 (3)  "public facilities" includes vessels owned by the corporation                                              
29 [STATE AND OPERATED BY THE DIVISION OF MARINE TRANSPORTATION                                                            
30       OF THE DEPARTMENT] as a part of the Alaska marine highway system.                                                 
31    * Sec. 25. AS 35.27.020(c) is amended to read:                                                                     
01 (c)  At least one percent or, in the case of a rural school facility, at least one-                                     
02 half of one percent of the construction cost of a building or facility approved for                                     
03 construction by the legislature will be reserved for the following purposes: the design,                                
04 construction, mounting, and administration of works of art in a school, office building,                                
05 court building, vessel of the Alaska marine highway system, or other building or                                    
06       facility that is subject to substantial public use.                                                               
07    * Sec. 26. AS 35.27.030(1) is amended to read:                                                                     
08                 (1)  "building" or "facility" means a permanent improvement                                             
09       constructed by the department or the corporation; "building" or "facility" [; THE                             
10       TERM]                                                                                                             
11                      (A)  includes [, BUT IS NOT LIMITED TO,]                                                           
12                           (i)  schools, office buildings, and court buildings;                                          
13 (ii)  other buildings [WHICH] the commissioner                                                                          
14                 determines are designed for substantial public use;                                                     
15 (iii)  boats and vessels of the Alaska marine highway                                                               
16                 system operated by the corporation;                                                                 
17 (iv)  transportation facilities that [WHICH]                                                                        
18                 accommodate traveling passengers;                                                                       
19                      (B)  excludes other transportation facilities;                                                     
20    * Sec. 27. AS 35.27.030 is amended by adding new paragraphs to read:                                               
21 (3)  "Alaska marine highway system" has the meaning given in                                                            
22       AS 42.50.990;                                                                                                     
23 (4)  "corporation" means the Alaska Marine Highway System                                                               
24       Corporation established by AS 42.50.010.                                                                          
25    * Sec. 28. AS 36.30.015 is amended by adding a new subsection to read:                                             
26 (l)  The board of directors of the Alaska Marine Highway System Corporation                                             
27 shall adopt procedures to govern the procurement of supplies, services, professional                                    
28       services, and construction. The procedures must be based on competitive principles.                               
29    * Sec. 29. AS 36.30.990(1) is amended to read:                                                                     
30                 (1)  "agency"                                                                                           
31 (A)  means a department, institution, board, commission,                                                                
01            division, authority, public corporation, the Alaska Pioneers' Home, the Alaska                               
02            Veterans' Home, or other administrative unit of the executive branch of state                                
03            government;                                                                                                  
04                      (B)  does not include                                                                              
05                           (i)  the University of Alaska;                                                                
06                           (ii)  the Alaska Railroad Corporation;                                                        
07                           (iii)  the Alaska Housing Finance Corporation;                                                
08                           (iv)  a regional Native housing authority created under                                       
09                 AS 18.55.996 or a regional electrical authority created under                                           
10                 AS 18.57.020;                                                                                           
11 (v)  [THE DEPARTMENT OF TRANSPORTATION                                                                                  
12 AND PUBLIC FACILITIES, IN REGARD TO THE REPAIR,                                                                         
13 MAINTENANCE, AND RECONSTRUCTION OF VESSELS,                                                                             
14 DOCKING FACILITIES, AND PASSENGER AND VEHICLE                                                                           
15 TRANSFER FACILITIES OF THE ALASKA MARINE HIGHWAY                                                                        
16                 SYSTEM;                                                                                                 
17                           (vi)]  the Alaska Aerospace Corporation;                                                      
18                           (vi) [(vii)]  the Alaska Retirement Management Board;                                     
19                           (vii) [(viii)]  the Alaska Seafood Marketing Institute;                                   
20 (viii) [(ix)]  the Alaska children's trust and the Alaska                                                           
21                 Children's Trust Board;                                                                                 
22 (ix) [(x)]  the Alaska Industrial Development and Export                                                            
23                 Authority;                                                                                              
24 (x)  the Alaska Marine Highway System                                                                               
25                 Corporation;                                                                                        
26    * Sec. 30. AS 36.90.049(a) is amended to read:                                                                     
27 (a)  A marine vessel owned by the state or the corporation shall be                                                 
28 maintained and repaired at a shipyard facility located in the state unless the                                          
29 commissioner of the department that operates the marine vessel or the corporation, if                               
30 the corporation owns the marine vessel, determines in writing that there is no                                      
31 shipyard facility located in the state that is equipped or qualified to perform the                                     
01 particular maintenance or repair required, or, except for a marine vessel owned by                                  
02 the corporation, after taking into consideration the five percent preference under                                  
03 AS 36.30.321(a) and the interport differential, that the proposed cost of the                                           
04 maintenance or repair work is unreasonable. A detailed list of the costs and factors                                    
05 considered in calculating the interport differential must be provided to each person                                    
06 who expresses an interest in submitting a bid to perform maintenance or repair work                                     
07 on a marine vessel owned by the state, except for a marine vessel owned by the                                      
08       corporation.                                                                                                  
09    * Sec. 31. AS 36.90.049(b) is amended to read:                                                                     
10 (b)  The competitive bid provisions of AS 36.30 do not apply to a contract for                                          
11 the maintenance or repair of a marine vessel owned by the state if the contract is                                      
12 awarded to a shipyard facility in the state, or if the vessel is owned by the                                       
13       corporation.                                                                                                  
14    * Sec. 32. AS 36.90.049(c) is amended to read:                                                                     
15 (c)  The commissioner of the department that operates a marine vessel, or the                                       
16 corporation for a marine vessel of the Alaska marine highway system, shall adopt                                    
17 regulations establishing the criteria that the department or the corporation shall use                              
18 to determine whether the cost of maintenance or repair work at a shipyard facility                                      
19 located in the state is reasonable under (a) of this section. The commissioner of the                                   
20 department that operates a marine vessel, or the corporation for a marine vessel of                                 
21 the Alaska marine highway system, shall designate by regulation the designated                                      
22 base port for each vessel operated by the department or the corporation; however, the                               
23 designated base port for marine vessels of the Alaska marine highway system is                                          
24 Ketchikan for those vessels primarily serving that portion of the state east of the                                     
25 longitude of Icy Cape and is Seward for those vessels primarily serving the remainder                                   
26 of the state. A vessel's designated base port is the vessel's delivery and redelivery port.                             
27    * Sec. 33. AS 36.90.049(e) is amended by adding new paragraphs to read:                                            
28 (3)  "Alaska marine highway system" has the meaning given in                                                            
29       AS 42.50.990;                                                                                                     
30 (4)  "corporation" means the Alaska Marine Highway System                                                               
31       Corporation established by AS 42.50.010.                                                                          
01    * Sec. 34. AS 36.90.300(c) is amended to read:                                                                     
02            (c)  In this section,                                                                                        
03 (1)  "construction" means the process of building, altering, repairing,                                                 
04 maintaining, improving, demolishing, planning, and designing a public highway, a                                        
05 structure, a building, a utility, infrastructure, or another public improvement to real                                 
06       property, but does not mean the routine operation of a public improvement;                                        
07                 (2)  "consultant" means a person who contracts with a public agency to                                  
08       provide professional services;                                                                                    
09                 (3)  "professional services" has the meaning given in AS 36.30.990;                                     
10 (4)  "public agency" means a department, institution, board,                                                            
11 commission, division, authority, public corporation, committee, school district,                                        
12 political subdivision, or other administrative unit of a municipality, of a political                                   
13 subdivision, or of the executive or legislative branch of state government, including                                   
14 the University of Alaska, the Alaska Aerospace Corporation, the Alaska Housing                                          
15 Finance Corporation, the Alaska Industrial Development and Export Authority, the                                        
16 Alaska Energy Authority, the Alaska Railroad Corporation, the Alaska Marine                                         
17       Highway System Corporation, and a regional educational attendance area.                                       
18    * Sec. 35. AS 37.05.210(a) is amended to read:                                                                     
19            (a)  The Department of Administration shall                                                                  
20 (1)  file with the governor and with the legislative auditor before                                                     
21 December 16 a report of the financial transactions of the preceding fiscal year and of                                  
22 the financial condition of the state as of the end of that year, prepared in accordance                                 
23 with generally accepted accounting principles and audited by the legislative auditor in                                 
24 accordance with generally accepted audit standards, with comments and                                                   
25 supplementary data that the Department of Administration considers necessary; this                                      
26       report shall be printed for the information of the legislature and the public;                                    
27 (2)  compile statistics necessary for the budget and other statistics                                                   
28       required by the governor;                                                                                         
29 (3)  file a travel and compensation report with the legislature by                                                      
30 January 31 of each year containing detailed information for the previous calendar year                                  
31 of the salaries, per diem, travel expenses, relocation expenses, and any additional                                     
01       allowances for                                                                                                    
02                      (A)  the governor, the lieutenant governor, and the chiefs of                                      
03            staff of the governor and lieutenant governor;                                                               
04                      (B)  the president and vice-president of the University of Alaska                                  
05            and the chancellors of the individual campuses of the university;                                            
06                      (C)  the commissioners or other executive heads of the principal                                   
07            departments in the executive branch of state government, and the deputy                                      
08            commissioners and division directors in those departments; and                                               
09                      (D)  the executive heads of public corporations created by law,                                    
10 including the Alaska Railroad Corporation and the Alaska Marine Highway                                             
11            System Corporation.                                                                                      
12    * Sec. 36. AS 37.05.550(a) is amended to read:                                                                     
13 (a)  There is in the general fund the Alaska marine highway system vessel                                               
14 replacement fund. The fund consists of money appropriated to it by the legislature.                                     
15 Money appropriated to the fund does not lapse. The Alaska Marine Highway System                                     
16 Corporation [DEPARTMENT OF REVENUE] shall manage the fund. Interest                                                 
17 received on money in the fund shall be accounted for separately and may be                                              
18 appropriated into the fund annually. The legislature may appropriate money from the                                     
19 fund for refurbishment of existing state ferry vessels, acquisition of additional state                                 
20       ferry vessels, or replacement of retired or outmoded state ferry vessels.                                         
21    * Sec. 37. AS 37.05.550(c) is amended to read:                                                                     
22 (c)  The Alaska Marine Highway System Corporation [DEPARTMENT OF                                                    
23 REVENUE] shall prepare a written report, not [NO] later than the 10th legislative day                               
24 of each regular legislative session, regarding the earnings of the Alaska marine                                        
25 highway system vessel replacement fund during the previous [PRIOR] fiscal year and                                  
26 projected earnings of the Alaska marine highway system vessel replacement fund for                                      
27 the current fiscal year and the next fiscal year. The Alaska Marine Highway System                                  
28 Corporation [DEPARTMENT OF REVENUE] shall notify the legislature that the                                           
29       report is available.                                                                                              
30    * Sec. 38. AS 37.07.120(1) is amended to read:                                                                     
31 (1)  "agency" means a department, officer, institution, board,                                                          
01 commission, bureau, division, or other administrative unit forming the state                                            
02 government and includes the Alaska Pioneers' Home, the Alaska Veterans' Home,                                           
03 [AND] the University of Alaska, and the Alaska Marine Highway System                                                
04       Corporation, but does not include the legislature or the judiciary;                                           
05    * Sec. 39. AS 37.10.058(1) is amended to read:                                                                     
06                 (1)  "agency" means a board, commission, or agency in the legislative,                                  
07       judicial, or executive branch, but does not include the University of Alaska, the                             
08       Alaska Marine Highway System Corporation, or another [A] public corporation;                              
09    * Sec. 40. AS 39.20.310 is amended to read:                                                                        
10 Sec. 39.20.310. Exceptions. Except as provided in AS 39.20.275,                                                       
11       AS 39.20.200 - 39.20.330 do not apply to                                                                          
12 (1)  members of the state legislature, the governor, the lieutenant                                                     
13 governor, and justices and judges of the supreme and superior courts and of the court                                   
14 of appeals, but nothing in AS 39.20.200 - 39.20.330 may be construed to diminish the                                    
15 salaries fixed by law for these officers by reason of absence from duty on account of                                   
16       illness or otherwise;                                                                                             
17                 (2)  magistrates serving the state on less than a full-time basis;                                      
18 (3)  officers, members of the teaching staff, and employees of the                                                      
19       University of Alaska;                                                                                             
20 (4)  persons employed in a professional capacity to make a temporary                                                    
21 and special inquiry, study, or examination as authorized by the governor, the                                           
22       legislature, or a legislative committee;                                                                          
23 (5)  members of boards, commissions, and authorities who are not                                                        
24       otherwise employed by the state;                                                                                  
25 (6)  temporary employees hired for periods of less than 12 consecutive                                                  
26       months;                                                                                                           
27 (7)  persons employed by the Alaska Marine Highway System                                                           
28 Corporation; this paragraph includes persons employed [DIVISION OF MARINE                                           
29 TRANSPORTATION] as masters and members of the crews operating the state ferry                                           
30 system who are covered by collective bargaining agreements as provided in                                               
31       AS 23.40.040, except as expressly provided by law;                                                                
01                 (8)  persons employed by the state who are covered by collective                                        
02       bargaining agreements as provided in AS 23.40.210, except as expressly provided by                                
03       law.                                                                                                              
04    * Sec. 41. AS 39.20.550(7) is amended to read:                                                                     
05 (7)  "state" includes the University of Alaska, the Alaska Railroad, the                                            
06 Alaska Marine Highway System Corporation, and the executive, legislative, and                                       
07 judicial branches of state government including public and quasi-public corporations                                    
08       and authorities established by law.                                                                               
09    * Sec. 42. AS 39.25.110(16) is amended to read:                                                                    
10 (16)  persons employed by the division of marine transportation, or by                                              
11 the Alaska Marine Highway System Corporation, as masters and members of the                                         
12 crews of vessels who operate the state ferry system and who are covered by a                                            
13 collective bargaining agreement provided in AS 23.40.040, and other employees of                                    
14       the Alaska Marine Highway System Corporation;                                                                 
15    * Sec. 43. AS 39.25.110(16), as amended by sec. 42 of this Act, is amended to read:                                
16 (16)  persons employed by the [DIVISION OF MARINE                                                                       
17 TRANSPORTATION, OR BY THE] Alaska Marine Highway System Corporation [,]                                                 
18 as masters and members of the crews of vessels who operate the state ferry system and                                   
19 who are covered by a collective bargaining agreement provided in AS 23.40.040, and                                      
20       other employees of the Alaska Marine Highway System Corporation;                                                  
21    * Sec. 44. AS 39.35.680(22) is amended to read:                                                                    
22                 (22)  "member" or "employee"                                                                            
23 (A)  means a person eligible to participate in the plan and who                                                         
24            is covered by the plan;                                                                                      
25                      (B)  includes                                                                                      
26                           (i)  an active member;                                                                        
27                           (ii)  an inactive member;                                                                     
28                           (iii)  a vested member;                                                                       
29                           (iv)  a deferred vested member;                                                               
30                           (v)  a nonvested member;                                                                      
31                           (vi)  a disabled member;                                                                      
01                           (vii)  a retired member;                                                                      
02                           (viii)  an elected public officer under AS 39.35.381;                                         
03                      (C)  does not include                                                                              
04                           (i)  former members;                                                                          
05                           (ii)  persons compensated on a contractual or fee basis;                                      
06                           (iii)  casual or emergency workers or nonpermanent                                            
07                 employees as defined in AS 39.25.200;                                                                   
08                           (iv)  persons covered by the Alaska Teachers'                                                 
09                 Retirement System except as provided under AS 39.35.131 and                                             
10                 39.35.381, or persons covered by a university retirement program;                                       
11 (v)  employees of the Alaska Marine Highway System                                                                  
12 Corporation [DIVISION OF MARINE TRANSPORTATION]                                                                     
13 engaged in operating the state ferry system who are covered by a union                                                  
14 or group retirement system to which the Alaska Marine Highway                                                       
15                 System Corporation [STATE] makes contributions;                                                     
16 (vi)  justices of the supreme court or judges of the court                                                              
17                 of appeals or of the superior or district courts of Alaska;                                             
18 (vii)  the administrative director of the Alaska Court                                                                  
19 System appointed under art. IV, sec. 16 of the state constitution unless                                                
20                 the director becomes a member under AS 39.35.158;                                                       
21 (viii)  members of the elected public officers' retirement                                                              
22                 system (former AS 39.37); and                                                                           
23 (ix)  contractual employees of the legislative branch of                                                                
24                 state government under AS 24.10.060(f);                                                                 
25 (D)  may include employees [OF THE DIVISION OF                                                                          
26 MARINE TRANSPORTATION] excluded under (C)(v) of this paragraph if                                                   
27            [PROVIDED THAT]                                                                                              
28 (i)  the [STATE OF] Alaska Marine Highway System                                                                    
29 Corporation formally agrees to their inclusion through the process of                                               
30                 collective bargaining; and                                                                              
31 (ii)  no collective bargaining agreement has the effect of                                                              
01                 obligating contributions made by the state under AS 39.30.150 in the                                    
02                 event the state resumes participation in the federal social security                                    
03                 system;                                                                                                 
04    * Sec. 45. AS 39.35.680 is amended by adding a new paragraph to read:                                              
05                 (44)  "Alaska Marine Highway System Corporation" means the                                              
06       corporation established by AS 42.50.010.                                                                          
07    * Sec. 46. AS 39.50.200(b) is amended by adding a new paragraph to read:                                           
08                 (65)  the board of directors of the Alaska Marine Highway System                                        
09       Corporation (AS 42.50.020 - 42.50.060).                                                                           
10    * Sec. 47. AS 39.52.960(2) is amended to read:                                                                     
11 (2)  "agency" means a department, office of the governor, or entity in                                                  
12 the executive branch, including [BUT NOT LIMITED TO] the University of Alaska,                                          
13 public or quasi-public corporations, boards or commissions, [AND] the Alaska                                            
14       Railroad Corporation, and the Alaska Marine Highway System Corporation;                                       
15    * Sec. 48. AS 39.90.140(4) is amended to read:                                                                     
16                 (4)  "public body" includes an officer or agency of                                                     
17                      (A)  the federal government;                                                                       
18                      (B)  the state;                                                                                    
19                      (C)  a political subdivision of the state including                                                
20                           (i)  a municipality;                                                                          
21                           (ii)  a school district; and                                                                  
22                           (iii)  a regional educational attendance area;                                                
23 (D)  a public or quasi-public corporation or authority                                                                  
24 established by state law including the Alaska Railroad Corporation and the                                          
25            Alaska Marine Highway System Corporation; and                                                            
26                      (E)  the University of Alaska.                                                                     
27    * Sec. 49. AS 40.25.110(g) is amended to read:                                                                     
28 (g)  Notwithstanding other provisions of this section to the contrary, the board                                        
29 of directors of the Alaska Railroad Corporation, and the Alaska Marine Highway                                      
30 System Corporation, may establish reasonable fees for the inspection and copying of                                 
31       public records, including record searches.                                                                        
01    * Sec. 50. AS 40.25.115(g) is amended to read:                                                                     
02 (g)  Each public agency shall establish the fees for the electronic services and                                        
03 products provided under this section. The governor may cancel the fees established by                                   
04 a public agency in the executive branch, except the fees of the University of Alaska,                               
05 [AND] the Alaska Railroad Corporation, and the Alaska Marine Highway System                                         
06       Corporation, if the governor determines that the fees are unreasonably high.                                  
07    * Sec. 51. AS 40.25.115(i) is amended to read:                                                                     
08            (i)  A public agency other than a municipality, [OR] the Alaska Railroad                                 
09       Corporation, or the Alaska Marine Highway System Corporation shall separately                                 
10 account for the fees received by the agency under this section and deposited in the                                     
11 general fund. The annual estimated balance in the account may be used by the                                            
12 legislature to make appropriations to the agency to carry out the activities of the                                     
13       agency.                                                                                                           
14    * Sec. 52. AS 40.25.123(a) is amended to read:                                                                     
15 (a)  The Department of Administration shall supervise and adopt regulations                                             
16 for the operation and implementation of AS 40.25.110 - 40.25.140 by public agencies                                     
17 in the executive branch, except the Alaska Railroad Corporation and the Alaska                                      
18       Marine Highway System Corporation.                                                                            
19    * Sec. 53. AS 40.25.220(2) is amended to read:                                                                     
20 (2)  "public agency" means a political subdivision, department,                                                         
21 institution, board, commission, division, authority, public corporation, council,                                       
22 committee, or other instrumentality of the state or a municipality; "public agency"                                     
23 includes the University of Alaska, [AND] the Alaska Railroad Corporation, and the                               
24       Alaska Marine Highway System Corporation;                                                                     
25    * Sec. 54. AS 40.25.350(3) is amended to read:                                                                     
26                 (3)  "state agency"                                                                                     
27 (A)  means a department, institution, board, commission,                                                                
28 division, authority, public corporation, committee, or other administrative unit                                        
29 of the executive, judicial, or legislative branch of state government, including                                        
30            the University of Alaska;                                                                                    
31 (B)  does not include the Alaska Railroad Corporation or the                                                        
01            Alaska Marine Highway System Corporation.                                                                
02    * Sec. 55. AS 42 is amended by adding a new chapter to read:                                                       
03             Chapter 50. Alaska Marine Highway System Corporation.                                                     
04                  Article 1. Establishment and Organization.                                                           
05 Sec. 42.50.010. Establishment of the corporation. The Alaska Marine                                                   
06 Highway System Corporation is established as a public corporation and                                                   
07 instrumentality of the state within the Department of Commerce, Community, and                                          
08 Economic Development. The corporation has a legal existence independent of and                                          
09       separate from the state.                                                                                          
10 Sec. 42.50.020. Board of directors. (a) The board of directors shall exercise                                         
11       the powers of the corporation.                                                                                    
12            (b)  The board consists of                                                                                   
13 (1)  the commissioner of commerce, community, and economic                                                              
14 development; the commissioner may not designate another person to serve in this                                         
15       position;                                                                                                         
16                 (2)  the commissioner of transportation and public facilities; and                                      
17                 (3)  five members appointed by the governor.                                                            
18 (c)  The five members appointed by the governor shall meet the following                                                
19       criteria:                                                                                                         
20                 (1)  each member shall be a resident of the state;                                                      
21 (2)  four of the members shall have experience in business operations,                                                  
22       transportation, or finance;                                                                                       
23                 (3)  one member shall be a member of the general public;                                                
24 (4)  at least four of the five members shall reside in a community in                                                   
25 which the corporation maintains a ferry terminal facility for the loading and unloading                                 
26       of passengers and vehicles;                                                                                       
27 (5)  one of the five members shall reside in a community in Southeast                                                   
28       Alaska to which the Alaska marine highway system provides services;                                               
29 (6)  one of the five members shall reside in a community in                                                             
30       Southcentral Alaska to which the Alaska marine highway system provides services;                                  
31 (7)  one of the five members shall reside in a community in Southwest                                                   
01       Alaska to which the Alaska marine highway system provides services; and                                           
02                 (8)  At least one of the five members shall reside in a community that is                               
03       described in (5), (6), or (7) of this subsection and that is in the unorganized borough.                          
04            Sec. 42.50.030. Terms of office. Except for the commissioners under                                        
05       AS 42.50.020(b)(1) and (2), the members of the board serve at the pleasure of the                                 
06       governor for staggered terms of five years.                                                                       
07 Sec. 42.50.040. Vacancies. (a) Except for the commissioners under                                                     
08 AS 42.50.020(b)(1) and (2), the governor shall fill a vacancy on the board by                                           
09 appointing another person. Notwithstanding AS 39.05.080(4), a member appointed to                                       
10 fill a vacancy serves for the balance of the term for which the member's predecessor                                    
11       was appointed.                                                                                                    
12 (b)  A vacancy on the board does not impair the authority of a quorum of                                                
13       members to exercise the powers and perform the duties of the board.                                               
14 Sec. 42.50.050. Compensation and expenses. (a) An appointed member of                                                 
15 the board is entitled to compensation at a rate of $400 for each day the member is                                      
16 engaged in the actual performance of duties as a member of the board. The board may                                     
17 provide by regulation for compensation for partial days during which an appointed                                       
18       member is engaged in actual performance of duties as a member of the board.                                       
19 (b)  In addition to compensation under (a) of this section, an appointed member                                         
20 of the board is entitled to per diem and travel expenses authorized for state boards and                                
21       commissions under AS 39.20.180.                                                                                   
22 (c)  A member of the board whose term has expired shall serve until a                                                   
23       successor has been appointed.                                                                                     
24 Sec. 42.50.060. Board officers. The board shall elect from among the                                                  
25 members of the board a chair and vice-chair and establish the duties of the chair and                                   
26       vice-chair by regulation.                                                                                         
27                         Article 2. Management.                                                                        
28 Sec. 42.50.100. Management by the board. (a) The board is responsible for                                           
29       the management of the corporation.                                                                                
30            (b)  In managing the corporation, the board                                                                  
31 (1)  is responsible for the management of the financial and legal                                                       
01       obligations of the Alaska marine highway system;                                                                  
02                 (2)  shall operate the Alaska marine highway system as a commercial                                     
03       entity that is available to the public for the transportation of goods and passengers at                          
04       set rates;                                                                                                        
05                 (3)  shall provide for the safe, efficient, and economical transportation                               
06       of goods and passengers to meet the needs of the state;                                                           
07                 (4)  shall review all state and other land disposal proposals to aid in                                 
08       planning for future development or expansion of transportation services; and                                      
09                 (5)  shall ensure that the accounting procedures of the corporation meet                                
10 generally accepted accounting principles consistent with industry standards for                                         
11       comparable transportation systems.                                                                                
12 Sec. 42.50.110. Executive officers. (a) The board shall appoint a chief                                               
13 executive officer and a chief financial officer of the corporation. A member of the                                     
14 board may not be the chief executive officer or chief financial officer. The chief                                      
15       executive officer and chief financial officer serve at the pleasure of the board.                                 
16 (b)  In addition to the officers appointed under (a) of this section, the board                                         
17       may appoint other executive officers for the corporation.                                                         
18 (c)  The board shall set the compensation for an executive officer appointed                                            
19       under this section.                                                                                               
20 Sec. 42.50.120. Delegation. (a) The board shall by regulation delegate to the                                         
21 chief executive officer the powers and duties that are necessary or appropriate for the                                 
22 management of the daily affairs and operation of the corporation. The board may by                                      
23 regulation require the exercise of a delegated power or duty to be subject to board                                     
24       approval.                                                                                                         
25 (b)  The board may delegate the following powers and duties to the chief                                                
26       executive officer or other executive officers designated by the board:                                            
27 (1)  leasing, subject to AS 42.50.350, granting easements in, issuing                                                   
28       permits for the use of, or conveying other interests in property;                                                 
29 (2)  establishing specific rates, tariffs, divisions, and contract rate                                                 
30       agreements;                                                                                                       
31                 (3)  making routine changes in service levels;                                                          
01                 (4)  establishing procurement and accounting procedures for the                                         
02       corporation; and                                                                                                  
03                 (5)  performing procurement activities.                                                                 
04            (c)  Notwithstanding (a) and (b) of this section, specific board approval is                                 
05       required to                                                                                                       
06                 (1)  mortgage or pledge corporation assets;                                                             
07                 (2)  donate property or other assets belonging to the corporation;                                      
08                 (3)  act as a surety or guarantor;                                                                      
09                 (4)  adopt a long-range capital improvement and program plan;                                           
10                 (5)  adopt annual reports;                                                                              
11                 (6)  effect general comprehensive increases and decreases in rates;                                     
12                 (7)  expand or reduce services in a significant way;                                                    
13                 (8)  expand ferry routes;                                                                               
14                 (9)  select independent auditors and accountants;                                                       
15                 (10)  enter into collective bargaining agreements;                                                      
16                 (11)  adopt annual budgets;                                                                             
17 (12)  begin a capital project with an estimated completion cost of more                                                 
18       than $500,000 or an estimated completion time of more than one year;                                              
19 (13)  exchange, donate, sell, or otherwise convey the entire interest in                                                
20       an asset of the corporation;                                                                                      
21                 (14)  exercise the power of eminent domain.                                                             
22                     Article 3. Administrative Provisions.                                                             
23 Sec. 42.50.150. Meetings of the board. (a) The chair of the board shall call                                          
24 meetings of the board at least once every three months. The chair or a majority of the                                  
25 members of the board may call other meetings of the board as necessary. The chair                                       
26       shall preside at meetings.                                                                                        
27 (b)  The meetings of the board are open to the public under AS 44.62.310,                                               
28 except as provided by AS 44.62.310 for executive sessions. The board shall provide                                      
29 by regulation for a method of providing reasonable notice to the public of its meetings.                                
30            (c)  The board shall keep minutes of each meeting.                                                         
31 Sec. 42.50.160. Quorum and voting. (a) Four voting members of the board                                               
01       constitute a quorum for the transaction of business.                                                              
02 (b)  Four affirmative votes are required for board action. The board shall                                              
03 provide by regulation for the manner of voting, except that the board may not provide                                   
04 for voting by proxy. The regulations may provide for voting and conferring by                                           
05       telecommunication and electronic devices.                                                                       
06 Sec. 42.50.170. Executive sessions. In addition to the subjects listed in                                             
07 AS 44.62.310(c), the board may hold an executive session to discuss matters relating                                    
08 to the corporation's legal position and to the corporation's acquisition or disposal of                                 
09       assets.                                                                                                           
10 Sec. 42.50.180. Regulations. (a) The board shall adopt, amend, supplement,                                            
11 revise, or repeal regulations to carry out its functions and the purposes of this chapter.                              
12 The regulations shall include provisions to safeguard property owned, managed, or                                       
13 transported by the corporation and to protect employees and persons using the                                           
14 corporation's property or services. The adoption of regulations is not subject to                                       
15 AS 44.62 (Administrative Procedure Act), but the board shall comply with                                                
16       AS 42.50.185 and 42.50.190 when adopting regulations.                                                             
17 (b)  A regulation authorized by (a) of this section must establish a standard of                                        
18 general application for the corporation to implement, interpret, or make specific the                                   
19       law enforced or administered by it or to govern its procedures.                                                   
20 Sec. 42.50.185. Procedures for adopting regulations. (a) At least 30 days                                             
21 before the adoption of a regulation, the board shall give public notice of the proposed                                 
22 regulation action by publishing a notice in at least three newspapers of general                                        
23 circulation in the state, by posting the notice on the Alaska Online Public Notice                                      
24 System (AS 44.62.175), and by mailing a copy of the notice to each person who has                                       
25 requested notice of the proposed adoption, amendment, or repeal of the corporation's                                    
26 regulations. The notice must state the time, place, and nature of the proceedings and                                   
27 must contain a summary of the subject of the proposed regulation. In this subsection,                                   
28       "newspaper of general circulation" has the meaning given in AS 09.35.140(d).                                      
29 (b)  On the date and at the time and place designated in the notice required                                            
30 under (a) of this section, the board shall provide each interested person an opportunity                                
31 to present statements in writing concerning the proposed regulation action and shall                                    
01       give members of the public an opportunity to present oral statements.                                             
02 (c)  The board shall consider all relevant matters presented to it before                                               
03 adopting a regulation. The board may take action on a regulation that varies in content                                 
04 from the summary provided with the notice of the proposed regulation action if the                                      
05 subject of the regulation was reflected in the summary and it provided reasonable                                       
06 notice to the members of the public as to whether their interests could be affected by                                  
07       the board's action on that subject.                                                                               
08            (d)  If necessary, the board shall establish in the bylaws of the corporation                                
09       additional procedures for adopting regulations.                                                                   
10 Sec. 42.50.190. Emergency regulations. (a) The board shall establish in the                                           
11 bylaws of the corporation a procedure for the adoption of a regulation on an                                            
12 emergency basis. The board may adopt an emergency regulation only when necessary                                        
13 for the orderly operation of the Alaska marine highway system. The requirements of                                      
14 AS 42.50.185 do not apply to actions taken under this section. However, within 10                                       
15 days after the adoption of a regulation on an emergency basis, the board shall give                                     
16 notice of its action. The notice must substantially comply with the notice requirements                                 
17       of AS 42.50.185(a).                                                                                               
18 (b)  An action taken under this section remains in effect for not more than 120                                         
19 days. To prevent an emergency regulation from lapsing, the board may adopt the same                                     
20       regulation under AS 42.50.185 before the end of the 120-day period.                                               
21 Sec. 42.50.200. Validity of regulations. (a) Failure to mail notice to a person                                       
22 under AS 42.50.185(a) or 42.50.190(a) does not invalidate an action taken by the                                        
23       board.                                                                                                            
24 (b)  An interested person may challenge a regulation adopted by the board by                                            
25 bringing an action in the superior court. In addition to other grounds, a court may                                     
26       declare the adoption, amendment, or repeal of a regulation invalid                                                
27 (1)  for substantial failure by the board to comply with AS 42.50.185 or                                                
28       42.50.190; or                                                                                                     
29 (2)  if the regulation was adopted under AS 42.50.190, on the grounds                                                   
30 that the emergency regulation was not necessary for the orderly operation of the                                        
31       Alaska marine highway system.                                                                                     
01            Sec. 42.50.210. Application of regulation adoption requirements. Adoption                                  
02       of a regulation is not subject to AS 42.50.180 - 42.50.190 if the regulation                                      
03                 (1)  relates only to the internal management of the corporation;                                        
04                 (2)  relates to specific rates, tariffs, divisions, and contract rate                                   
05       agreements;                                                                                                       
06                 (3) relates to service schedules; or                                                                    
07                 (4)  is directed to a specifically named person or to a group of persons                                
08       and does not apply to the general public.                                                                         
09            Sec. 42.50.220. Public disclosure of information. (a) Except as provided                                   
10 under (b) of this section, information in the possession of the corporation is public and                               
11       is open to public inspection at reasonable times under AS 40.25.110.                                              
12 (b)  The corporation may by regulation designate and withhold public                                                    
13 disclosure of matters of a privileged or proprietary nature. Those matters include                                      
14 personnel records, communications with and work product of legal counsel, and                                           
15 proprietary information associated with specific shippers, divisions, and contract rate                                 
16       agreements.                                                                                                       
17 Sec. 42.50.230. Internet website. The corporation shall establish or participate                                      
18 with the Department of Administration or another governmental agency in using or                                        
19 creating an Internet website for the corporation. The Internet website must be                                          
20 accessible in all communities in the state that have the capability of accessing the                                    
21 Internet, including communities in the unorganized borough, and must be accessible at                                   
22       the lowest Internet website access speed that is used in the state.                                               
23 Sec. 42.50.240. Service schedules. Except in the case of an emergency, before                                         
24 the corporation establishes a service schedule for the Alaska marine highway system                                     
25 or changes a service schedule, the corporation shall publish a notice of the proposed                                   
26 service schedule or service schedule change on the Internet website established under                                   
27 AS 42.50.230 for at least 30 days and allow members of the public to comment on the                                     
28       proposed service schedule or service schedule change.                                                             
29                       Article 4. Powers and Duties.                                                                   
30 Sec. 42.50.250. General powers. In addition to the exercise of other powers                                           
31       authorized by law, the corporation may                                                                            
01                 (1)  adopt a seal;                                                                                      
02                 (2)  adopt bylaws governing the business of the corporation;                                            
03                 (3)  sue and be sued;                                                                                   
04                 (4)  appoint trustees and agents of the corporation and establish their                                 
05       powers and duties;                                                                                                
06                 (5)  have the Department of Law represent the corporation or have an                                    
07       attorney who is an employee of the corporation represent the corporation;                                         
08                 (6)  make contracts and execute written documents necessary or                                          
09       convenient in the exercise of the corporation's powers and duties;                                                
10 (7)  acquire by purchase, lease, bequest, devise, gift, exchange, the                                                   
11 satisfaction of debts, the foreclosure of mortgages, or other method, personal property,                                
12       rights, rights-of-way, franchises, easements, and interests in land;                                              
13 (8)  hold, maintain, use, operate, improve, lease, exchange, donate,                                                    
14 convey, alienate, encumber, or otherwise grant a security interest in, or authorize use                                 
15 or dispose of, real property or personal property, subject to other provisions of this                                  
16       chapter;                                                                                                          
17 (9)  contract with and accept transfers, gifts, grants of money or                                                      
18 property, or loans from the United States and the state or its political subdivisions,                                  
19       subject to other provisions of federal or state law or municipal ordinances;                                      
20 (10)  undertake and provide for the management, operation,                                                              
21 maintenance, use, and control of all of the property of the corporation, including all                                  
22 real property and personal property of the Alaska marine highway system transferred                                     
23       under this chapter;                                                                                               
24 (11)  recommend to the legislature and the governor tax, financing, or                                                  
25 financial arrangements the corporation considers appropriate for expansion or                                           
26       extension and operation of the Alaska marine highway system;                                                      
27 (12)  maintain offices and ferry terminal facilities at places designated                                               
28       by the corporation;                                                                                               
29 (13)  apply to the state, the United States, and foreign countries or other                                             
30 proper agencies for the permits, licenses, rights-of-way, or approvals necessary to                                     
31 construct, maintain, and operate transportation and related services, and obtain, hold,                                 
01       and reuse the licenses and permits in the same manner as other operators of ferry                                 
02       vessel systems;                                                                                                   
03                 (14)  set the rates to be charged for services provided by the Alaska                                   
04       marine highway system;                                                                                            
05                 (15)  determine the routes, schedules, and types of service to be                                       
06       provided by the Alaska marine highway system;                                                                     
07                 (16)  enter into contracts, leases, and other agreements with connecting                                
08       carriers, shippers, and other persons related to the services, activities, operations,                            
09       property, vessels, and ferry terminal facilities of the corporation;                                              
10 (17)  plan for and undertake expansion of the Alaska marine highway                                                     
11 system and contract with other modes of transportation service connecting to the                                        
12       Alaska marine highway system;                                                                                     
13 (18)  hire and discharge Alaska marine highway system personnel and                                                     
14 determine the hours of employment, the compensation and fringe benefits, and the                                        
15 personnel policies affecting the working conditions of employees, except for the                                        
16       general policies describing the function and purposes of an employer;                                             
17 (19)  consent to the modification of the rate of interest, to the time of                                               
18 payment of an installment of principal or interest, or to another term of a loan,                                       
19       contract, or agreement to which the corporation is a party;                                                       
20 (20)  acquire, hold, and dispose of stock, memberships, contracts,                                                      
21 general partnership interests, limited partnership interests, or interests in another                                   
22 corporation, association, partnership, joint venture, or other legal entity, and exercise                               
23 the powers or rights in connection with the interests that are provided in agreements                                   
24       and that are allowed by law concerning the satisfaction of debts;                                                 
25 (21)  create one or more subsidiary corporations that are partially or                                                  
26       wholly owned or controlled by the corporation;                                                                    
27 (22)  undertake and provide for the acquisition, construction,                                                          
28 maintenance, equipping, and operation of vessels, ferry terminal facilities, and related                                
29       programs;                                                                                                         
30 (23)  enter into agreements with a state agency or other instrumentality                                                
31       of the state;                                                                                                     
01 (24)  do all things necessary or desirable to carry out the powers and                                                  
02 duties of the corporation granted or necessarily implied in this chapter, other laws of                                 
03       the state, federal government laws, or federal government regulations.                                            
04 Sec. 42.50.260. Audit. (a) The board shall have the financial records of the                                          
05 corporation audited annually by an independent certified public accountant                                              
06       experienced in marine transportation system accounting.                                                           
07 (b)  The corporation shall make all of its financial records available for                                              
08 examination by an auditor appointed by the governor and the legislative audit division                                  
09 established by AS 24.20.241. The disclosure of this information to the public by the                                    
10 auditor or legislative audit division is subject to AS 42.50.220 and the regulations                                    
11       implementing that section.                                                                                        
12 Sec. 42.50.270. Operations and performance report. (a) Not later than 90                                              
13 days after the corporation's fiscal year ends, the board shall submit to the governor,                                  
14 senate secretary, and chief clerk of the house of representatives an operations and                                     
15       performance report on the fiscal year that just ended.                                                            
16 (b)  The operations and performance report required under (a) of this section                                           
17       must                                                                                                              
18 (1)  include the results of the financial audit performed under                                                         
19       AS 42.50.260(a) for the fiscal year;                                                                              
20 (2)  provide the number of passengers and vehicles carried by the                                                       
21       vessels of the Alaska marine highway system during the fiscal year;                                               
22 (3)  itemize the costs during the fiscal year of providing each category                                                
23 of service offered by the Alaska marine highway system and the income generated by                                      
24       each category;                                                                                                    
25 (4)  provide the status at the end of the fiscal year of vessel and                                                     
26 building replacement and maintenance projects under the comprehensive long-range                                        
27       plan required under AS 19.65.011 for the Alaska marine highway system;                                            
28 (5)  describe the activities planned by the corporation for the next fiscal                                             
29       year, including, as applicable,                                                                                   
30 (A)  any expansion, reduction, or diversification of the services                                                       
31 that were provided by the Alaska marine highway system on the date of                                                   
01 transfer or under this chapter, if the board determines the expansion, reduction,                                       
02 or diversification represents a significant and permanent change in the level                                           
03 and nature of services provided; the description must describe the proposed                                             
04            undertaking in detail and specify                                                                            
05                           (i)  the undertaking's financial effect on the corporation;                                   
06                           (ii)  the undertaking's effect on the level and nature of                                     
07                 services provided by the Alaska marine highway system; and                                              
08                           (iii)  the reasons the undertaking is necessary or                                            
09                 desirable to achieve the purposes of this chapter;                                                      
10 (B)  any proposal for an appropriation of money to pay for the                                                          
11            services of the Alaska marine highway system;                                                                
12 (C)  the exchange, donation, sale, or other conveyance of an                                                            
13            entire interest in an asset of the Alaska marine highway system;                                             
14                      (D)  acquisition of a vessel;                                                                      
15                      (E)  the addition or removal of a port of call; and                                                
16 (F)  the lease of corporation land for more than 95 years unless                                                        
17 the corporation reserves the right to terminate the lease if the land is needed for                                     
18            the Alaska marine highway system;                                                                            
19 (6)  suggestions for legislation relating to the structure, powers, duties,                                             
20 or operations of the corporation or to the operation, vessels, ferry terminal facilities, or                            
21       motor vehicles of the corporation; and                                                                            
22 (7)  at least every five years, revisions and updates to the                                                            
23       comprehensive long-range plan required under AS 19.65.011.                                                        
24 (c)  In this section, "date of transfer" means the date on which the state                                              
25       transfers the assets of the Alaska marine highway system to the corporation.                                      
26 Sec. 42.50.280. Required travel and compensation report. In addition to the                                           
27 operations and performance report required under AS 42.50.270, the board shall file a                                   
28 travel and compensation report with the Department of Administration by January 21                                      
29       of each year as required under AS 37.05.210.                                                                      
30 Sec. 42.50.300. Use of corporation assets. The corporation shall apply all                                            
31 money, property, other assets, and credit of the corporation toward activities                                          
01 authorized by this chapter. The corporation may not issue shares of stock, pay                                          
02 dividends, make private distributions of assets, make loans to board members or                                         
03 employees, or engage in business for private benefit. A person having the possession                                    
04 or control of the money, property, or other asset, or the credit of the corporation, may                                
05 not use the asset or credit for a purpose that is not authorized by this chapter or other                               
06       law.                                                                                                              
07 Sec. 42.50.310. Maintenance of motor vehicles. The board shall determine                                              
08 whether the Department of Transportation and Public Facilities or another person will                                   
09 maintain and service the rolling stock of motor vehicles used by the corporation to                                     
10 operate the Alaska marine highway system. If the Department of Transportation and                                       
11 Public Facilities performs the maintenance or service, the corporation shall pay the                                    
12 Department of Transportation and Public Facilities a reasonable price for the                                           
13       maintenance or service.                                                                                           
14 Sec. 42.50.320. Indemnification. (a) If the person acted in good faith on                                             
15 behalf of the corporation and within the scope of official duties or powers, the                                        
16 corporation may defend and indemnify a current or former member of the board,                                           
17 employee, or agent of the corporation against all costs, expenses, judgments, and                                       
18 liabilities, including attorney fees, incurred by or imposed on that person in connection                               
19 with a civil or criminal action in which the person is involved by affiliation with the                                 
20       corporation.                                                                                                      
21 (b)  The corporation may purchase insurance to protect and hold personally                                              
22 harmless its employees, agents, and board members from an action, claim, or                                             
23 proceeding arising out of the performance, purported performance, or failure of                                         
24 performance, in good faith, of duties for, or employment with, the corporation and to                                   
25 hold its employees, agents, and board members harmless from expenses connected                                          
26 with the defense, settlement, or monetary judgments arising from the action, claim, or                                  
27 proceeding. The purchase of insurance is discretionary with the board, and the                                          
28       insurance is not considered to be compensation to the insured person.                                             
29                      Article 5. Corporation Property.                                                                 
30 Sec. 42.50.350. Property leases, easements, permits, and disposals. (a) The                                           
31 corporation may lease, subject to (b) of this section, grant easements in or permits for,                               
01       or otherwise authorize use of portions of corporation property. However, the                                      
02       corporation may not convey its entire interest in any of its property, except as provided                         
03       by AS 42.50.355, 42.50.370(d), and 42.50.400.                                                                     
04            (b)  If the corporation makes a lease or other disposal of property to a party                               
05       other than the state, the lease or disposal must be made for fair market value as                                 
06       determined by a qualified appraiser, or made by competitive bidding.                                              
07            Sec. 42.50.355. Sale of property not necessary for corporation purposes.                                   
08       (a) The corporation may sell corporation property if the board finds that                                         
09                 (1)  the property is not necessary for the purposes of the corporation;                                 
10       and                                                                                                               
11                 (2)  the sale is in the best interest of the state.                                                     
12 (b)  The sale of land is subject to the terms and conditions of this section and                                        
13       AS 42.50.350(b).                                                                                                  
14            (c)  Before offering property for sale under this section, the corporation shall                             
15 (1)  publish public notice of the proposed sale that includes the finding                                               
16 by the board that the property is not necessary for the purposes of the corporation and                                 
17       that the sale is in the best interest of the state; and                                                           
18 (2)  provide notice to persons having a leasehold interest in the property                                              
19       proposed to be sold and offer the leaseholders the right of first refusal.                                        
20 (d)  The corporation shall separately account for the proceeds from the sale of                                         
21 property under this section and shall report the earnings and balance in the account in                                 
22 the operations and performance report required under AS 42.50.270. The legislature                                      
23 may appropriate money in the account to the corporation for the operation of the                                        
24       corporation. Nothing in this section creates a dedicated fund.                                                    
25 Sec. 42.50.360. Request for property. The board may identify land that is                                             
26 necessary or useful for present or future purposes of the Alaska marine highway                                         
27 system, and request the commissioner of natural resources to convey the land,                                           
28 including land not contiguous with a ferry terminal facility, if the state owns the land                                
29 or the land has been tentatively approved for transfer to the state. The request must                                   
30 include a statement of and justification for the present or future corporation use. Upon                                
31 receipt of a request, the commissioner shall temporarily reserve the land identified in                                 
01       the request for corporation purposes and defer disposal or lease of that land under                               
02       other laws to a party other than the corporation. The temporary reservation of land is                            
03       subject to valid existing rights and remains in effect for 180 days.                                              
04            Sec. 42.50.370. Conveyance of property. (a) Within 90 days after receiving a                               
05       request under AS 42.50.360, the commissioner of transportation and public facilities                              
06       shall, by written decision,                                                                                       
07                 (1)  designate the identified property for corporation purposes and,                                    
08       subject to valid existing rights, convey the state's interests in the land to the                                 
09       corporation;                                                                                                      
10 (2)  notify the corporation of reasons for refusal to designate the                                                     
11       identified land for corporation purposes; or                                                                      
12                 (3)  approve the request in part and convey the part that is approved.                                  
13 (b)  A conveyance of property under this section may be for less than the                                               
14 appraised value of the property, as determined by the commissioner of natural                                           
15       resources.                                                                                                        
16 (c)  In the absence of a reservation to the contrary, a conveyance of land under                                        
17 this section gives to the corporation ownership and control of the surface of the land,                                 
18 the material on and under the surface of the land, and the mineral estate in the land,                                  
19 including the right to extract or use timber and other construction materials, sand,                                    
20 gravel, and rock, and the right to tunnel, ditch, recontour, excavate, or otherwise use                                 
21 the land for transportation, transmission, communication, and related purposes of the                                   
22       Alaska marine highway system.                                                                                     
23 (d)  The corporation may reconvey to the state property received under this                                             
24 section that the corporation and the commissioner of natural resources jointly identify                                 
25       as unnecessary or unsuitable for the corporation's purposes.                                                      
26 Sec. 42.50.385. Eminent domain. (a) The corporation may exercise the power                                            
27 of eminent domain under AS 09.55.240 - 09.55.460 to acquire land for corporation                                        
28 purposes consistent with this chapter. Notwithstanding AS 09.55.250, the corporation                                    
29 may acquire a fee simple title when the board determines that ownership of a fee                                        
30       simple title is necessary to carry out the purposes of this chapter.                                              
31 (b)  The corporation may file a declaration of taking in the manner provided                                            
01       for the state under AS 09.55.420.                                                                                 
02 (c)  The power of eminent domain under this section includes the power to                                               
03 obtain clay, gravel, sand, timber, rock, or other material for the operation of the                                     
04 corporation, the land necessary to obtain the material, and access to the land and                                      
05       material.                                                                                                         
06            (d)  The governor must approve the exercise of eminent domain before the                                     
07       corporation exercises the power under this section.                                                               
08            Sec. 42.50.400. Vacation of easements. The corporation may vacate an                                       
09       easement acquired under this chapter by executing and filing a deed in the appropriate                            
10       recording district.                                                                                               
11 Sec. 42.50.420. Public use of corporation land. Upon request of a                                                     
12 municipality or the state, the corporation may authorize use of corporation land for                                    
13       public purposes.                                                                                                  
14 Sec. 42.50.430. Acquisition of state property. The corporation may acquire in                                         
15 its own name property under the control of a state agency that is useful for the                                        
16 corporation's purposes. The corporation may acquire from the Department of                                              
17       Administration state property made available under AS 44.68.110 - 44.68.140.                                      
18 Sec. 42.50.435. Exchange of land. The corporation may exchange land with                                              
19 the United States, municipalities, individuals, and corporations, including corporations                                
20       formed under 43 U.S.C. 1601 et seq. (Alaska Native Claims Settlement Act).                                        
21 Sec. 42.50.440. Adverse possession; prescriptive easements. A person may                                              
22 not acquire by adverse possession or prescriptive easement, or in any other manner                                      
23 except by conveyance from or formal vacation by the corporation, title to or an interest                                
24       in land owned by the corporation or under its jurisdiction.                                                       
25                       Article 6. Financial Provisions.                                                                
26 Sec. 42.50.500. Limitation of liability. A person does not have a right of                                            
27 action against the state because of a debt, obligation, or liability of the corporation and                             
28 may satisfy the debt, obligation, or liability only from the assets or revenue of the                                   
29       corporation.                                                                                                      
30 Sec. 42.50.510. Fidelity bond. The corporation may obtain a fidelity bond in                                          
31 an amount determined by the board for board members and each executive officer                                          
01       responsible for accounts and finances. The bond must be in effect during the entire                               
02       tenure in office of the bonded person.                                                                            
03 Sec. 42.50.520. Insurance. In addition to the insurance allowed under                                                 
04 AS 42.50.320(b), if the board determines the insurance purchase prudent, the board                                      
05 shall protect corporation assets, services, and employees by purchasing liability and                                   
06       casualty insurance.                                                                                               
07            Sec. 42.50.530. Revenue. The corporation shall deposit the revenue generated                               
08       by the corporation in the Alaska marine highway system fund created under                                         
09       AS 19.65.060.                                                                                                     
10 Sec. 42.50.540. Appropriations. The corporation may request, with the                                                 
11 concurrence of the governor, a direct appropriation or grant from the legislature to                                    
12       assist in carrying out the provisions of this chapter.                                                            
13                            Article 7. Bonds.                                                                          
14 Sec. 42.50.600. General provisions. (a) The corporation may issue bonds by                                            
15 resolution of the board to provide money to carry out the purposes of the corporation.                                  
16       The board shall determine the types of bonds that the corporation may issue.                                      
17 (b)  Bonds may be issued in one or more series and shall, as provided by the                                            
18       resolution of the board,                                                                                          
19                 (1)  be dated;                                                                                          
20 (2)  bear fixed or variable interest at a specified rate or rates per year or                                           
21       within a maximum rate;                                                                                            
22                 (3)  be in a specified denomination;                                                                    
23                 (4)  be in a coupon or registered form;                                                                 
24                 (5)  carry conversion or registration provisions;                                                       
25                 (6)  have a specified rank or priority;                                                                 
26                 (7)  be executed in the specified manner and form;                                                      
27 (8)  be payable as specified from the sources, in the medium of                                                         
28       payment, and place or places inside or outside the state;                                                         
29                 (9)  be subject to authentication by a trustee or fiscal agent; and                                     
30                 (10)  be subject to terms of redemption with or without premium.                                        
31 (c)  Bonds may be sold in the manner, on the terms, and at the price the board                                          
01 determines. Notes shall mature at the time or times determined by the board. Except                                     
02 for bond anticipation notes, notes, or other obligations, bonds shall mature at the time,                               
03       not exceeding 50 years after their date, determined by the board.                                                 
04 Sec. 42.50.610. Negotiable instruments. Bonds issued under this chapter and                                           
05 interest coupons attached to them are negotiable instruments under the laws of this                                     
06       state, subject only to applicable provisions for registration.                                                    
07 Sec. 42.50.620. Bonds eligible for investment. Bonds issued under this                                                
08 chapter are securities in which all public officers and public bodies of the state and the                              
09 state's political subdivisions, all insurance companies, trust companies, banking                                       
10 associations, investment companies, executors, administrators, trustees, and other                                      
11 fiduciaries may properly invest funds, including capital in their control or belonging to                               
12 them. These bonds may be deposited with a state or municipal officer of an agency or                                    
13 political subdivision of the state for any purpose for which the deposit of bonds of the                                
14       state is authorized by law.                                                                                       
15 Sec. 42.50.630. Payment of bonds. (a) The principal of and interest on bonds                                          
16 of the corporation are payable from corporation money or assets. Bonds may be                                           
17 additionally secured by a pledge of a grant or contribution from the federal                                            
18 government, a municipality, a corporation, an association, an institution, or a person,                                 
19       or a pledge of money, income, or revenue of the corporation from any source.                                      
20 (b)  Before issuing bonds to provide the financing described in AS 42.50.600                                            
21 for real or personal property to be owned in whole or in part by an entity other than the                               
22 corporation, the corporation shall enter into one or more contracts, leases, or other                                   
23 forms of agreement that will, in the judgment of the corporation, provide sufficient                                    
24       consideration to                                                                                                  
25                 (1)  pay the principal of and interest on the bonds as they become due;                                 
26 (2)  create and maintain any reserves for the bond payments that the                                                    
27       corporation considers necessary or desirable; and                                                                 
28 (3)  pay all costs necessary to issue, service, or additionally secure the                                              
29 bonds, including trustee's fees and bond insurance premiums, unless these costs are to                                  
30       be paid from bond proceeds or by a party other than the corporation.                                              
31 Sec. 42.50.640. Security for bonds. In the discretion of the board, an issue of                                       
01 bonds may be secured by a trust indenture, which may be a trust company, bank or                                        
02 national banking association, with corporate trust powers, located inside or outside the                                
03 state, or by a secured loan agreement or other instrument or under resolution giving                                    
04       powers to a corporate trustee by means of which the corporation may                                               
05 (1)  make and enter into any and all the covenants and agreements with                                                  
06 the trustees or the holders of the bonds that the corporation may determine to be                                       
07 necessary or desirable, including covenants, provisions, limitations, and agreements as                                 
08       to                                                                                                                
09 (A)  the application, investment, deposit, use, and disposition of                                                      
10 the proceeds of bonds of the corporation or of money or other property of the                                           
11            corporation or in which it has an interest;                                                                  
12 (B)  the fixing and collection of rentals, charges, fees, or other                                                      
13 consideration for, and the other terms to be incorporated in, contracts with                                            
14            respect to the use of any of the corporation's property;                                                     
15 (C)  the fixing and collection of tariffs, fees, charges, or other                                                      
16 consideration for the use or service of the Alaska marine highway system by                                             
17            passengers and other users and freight;                                                                      
18 (D)  the terms and conditions on which additional bonds of the                                                          
19            corporation may be issued;                                                                                   
20 (E)  the vesting in the trustee of rights and remedies exercisable                                                      
21 by the trustee for the protection of the holders of bonds of the corporation and                                        
22 not otherwise in violation of law and the restriction of the rights of an                                               
23            individual holder of bonds of the corporation;                                                               
24 (2)  pledge, mortgage, or assign money, leases, agreements, assets, or                                                  
25 property of the corporation either presently in hand or to be received in the future, or                                
26       both; and                                                                                                         
27 (3)  provide for any other matters of like or different character that in                                               
28       any way affect the security or protection of the bonds.                                                           
29 Sec. 42.50.650. Independent financial advisor. In negotiating the private or                                          
30 public sale of bonds to an underwriter, the board shall retain a financial advisor who is                               
31       independent from the underwriter.                                                                                 
01 Sec. 42.50.660. Validity of signatures. If an officer of the corporation whose                                        
02 signature or a facsimile of whose signature appears on bonds or coupons attached to                                     
03 them ceases to be an officer before the delivery of the bond or coupon, the signature or                                
04       facsimile is valid the same as if the person had remained in office until delivery.                               
05 Sec. 42.50.670. Validity of pledge. (a) The pledge of assets or revenue of the                                        
06 corporation to the payment of the principal of or interest on bonds of the corporation is                               
07 valid and binding from the time the pledge is made, and the assets or revenue are                                       
08 immediately subject to the lien of the pledge without physical delivery or further act.                                 
09 The lien of a pledge is valid and binding against all parties having claims of any kind                                 
10 against the corporation, irrespective of whether those parties have notice of the lien of                               
11       the pledge.                                                                                                       
12 (b)  Nothing in this section prohibits the corporation from selling assets subject                                      
13 to a pledge, except that a sale may be restricted by the trust agreement or resolution                                  
14       providing for the issuance of the bonds.                                                                          
15 Sec. 42.50.675. Pledge of the state. The state pledges to and agrees with the                                         
16 holders of bonds issued under this chapter and with the federal agency that loans or                                    
17 contributes funds in respect to a project that the state will not limit or alter the rights                             
18 and powers vested in the corporation by this chapter to fulfill the terms of a contract                                 
19 made by the corporation with the holders or federal agency, or in any way impair the                                    
20 rights and remedies of the holders until the bonds together with the interest on them                                   
21 with interest on unpaid installments of interest, and all costs and expenses in                                         
22 connection with an action or proceeding by or on behalf of the holders, are fully met                                   
23 and discharged. The corporation is authorized to include this pledge and agreement of                                   
24 the state, insofar as it refers to holders of bonds of the corporation, in a contract with                              
25 the holders and insofar as it relates to a federal agency, in a contract with the federal                               
26       agency.                                                                                                           
27 Sec. 42.50.680. Remedies. A holder of bonds issued under this chapter or of                                           
28 coupons attached to them, and a trustee under a trust agreement or resolution                                           
29 authorizing the issuance of the bonds, except as restricted by a trust agreement or                                     
30       resolution, either at law or in equity, may                                                                       
31 (1)  enforce all rights granted under this chapter, the trust agreement or                                              
01       resolution, or any other contract executed by the corporation under this chapter; and                             
02                 (2)  compel the performance of all duties of the corporation required by                                
03       this chapter or by the trust agreement or resolution.                                                             
04 Sec. 42.50.690. Credit of state not pledged. (a) The state and its political                                          
05 subdivisions are not liable for the debts of the corporation. Bonds issued under this                                   
06 chapter are payable solely from the revenue or assets of the corporation and do not                                     
07       constitute a                                                                                                      
08                 (1)  debt, liability, or obligation of the state or of a political subdivision                          
09       of the state; or                                                                                                  
10 (2)  pledge of the faith and credit of the state or of a political                                                      
11       subdivision of the state.                                                                                         
12 (b)  The corporation may not pledge the credit or the taxing power of the state                                         
13 or its political subdivisions. Each bond issued under this chapter shall contain on its                                 
14       face a statement that                                                                                             
15 (1)  the corporation is not obligated to pay it or the interest on it except                                            
16       from the revenue or assets pledged for it; and                                                                    
17 (2)  neither the faith and credit nor the taxing power of the state or of a                                             
18       political subdivision of the state is pledged to the payment of it.                                               
19 Sec. 42.50.695. Limitation on personal liability. A board member or                                                   
20 employee of the corporation is not subject to personal liability or accountability                                      
21       because of the execution or issuance of bonds.                                                                    
22                   Article 8. Personnel and Labor Relations.                                                           
23 Sec. 42.50.705. Political activities. (a) A person may not use the money or                                           
24 other property of the corporation for political activities. However, board members and                                  
25 employees may communicate with and appear before committees of the United States                                        
26 Congress, the state legislature, and governing bodies of municipalities in connection                                   
27       with matters directly affecting the corporation.                                                                  
28 (b)  A board member or employee who violates this section is personally                                                 
29 subject to a civil penalty assessed by a judge of the superior court in an amount not to                                
30       exceed $5,000. Any person may bring an action to enforce this section.                                          
31 Sec. 42.50.710. Corporation employees. (a) Employees of the corporation are                                           
01 employees of the corporation and not of the state. However, employees of the                                            
02 corporation shall be treated as employees of the state for the purposes of AS 23.40 and                                 
03       AS 39.                                                                                                            
04 (b)  Except as provided in this subsection, employees of the corporation are                                            
05 covered by AS 23.10.050 - 23.10.150 (Alaska Wage and Hour Act). However, the                                            
06 terms of a collective bargaining agreement mutually agreed upon by an organization                                      
07 representing corporation employees and the corporation may provide that                                                 
08 AS 23.10.050 - 23.10.150 do not apply to corporation employees to the extent set out                                    
09       in the collective bargaining agreement.                                                                           
10                     Article 9. Miscellaneous Provisions.                                                              
11 Sec. 42.50.800. Claims. (a) If a person has a claim or lawsuit involving                                              
12 activities of the corporation, including actions based on contract, quasi-contract, or                                  
13 tort, the person shall bring the claim or lawsuit against the corporation and may not                                   
14       bring the claim or lawsuit against the state.                                                                     
15 (b)  For the purposes of actionable claims, undertakings, payments of                                                   
16 judgments, execution, interest, punitive damages, statutes of limitations, costs, and                                   
17 similar matters related to the presentation and prosecution of claims by and against the                                
18 corporation, the corporation and its board members and employees have the same                                          
19       rights, privileges, and immunities as the state and state officers.                                               
20 (c)  A claim against the corporation is not subject to the provisions of AS 44.77                                       
21       regarding claims against the state.                                                                               
22 (d)  The corporation is not subject to the provisions of AS 44.80.010(1)                                                
23       regarding the state being a party to an action.                                                                   
24 Sec. 42.50.810. Exemption from taxation. (a) Subject to (b) of this section,                                          
25 the property of the corporation, including its assets, income, and receipts, are exempt                                 
26 from all taxes and special assessments of the state or a political subdivision of the                                   
27       state.                                                                                                            
28 (b)  Promissory notes and the interest and income from them, and all fees,                                              
29 charges, funds, revenue, income, and other money pledged or available to pay or                                         
30 secure the payment of the notes or interest on them, are exempt from taxation by the                                    
31       state or a political subdivision of the state.                                                                    
01 (c)  This section does not affect or limit an exemption from license fees,                                              
02 property taxes, or excise, income, or other taxes, provided under any other law, nor                                    
03 does it create a tax exemption with respect to the interest of a person other than the                                  
04       corporation.                                                                                                      
05            Sec. 42.50.815. Application of existing laws. Unless specifically provided                                 
06       otherwise in this chapter, the following laws do not apply to the operations of the                               
07       corporation:                                                                                                      
08                 (1)  AS 19.10.300 - 19.10.399;                                                                          
09                 (2)  AS 30.15;                                                                                          
10                 (3)  AS 35;                                                                                             
11                 (4)  AS 37.10.085;                                                                                      
12                 (5)  AS 38;                                                                                             
13                 (6)  AS 44.62.010 - 44.62.160, 44.62.180 - 44.62.305, and 44.62.320.                                    
14                       Article 10. General Provisions.                                                                 
15 Sec. 42.50.990. Definitions. In this chapter, unless the context indicates                                            
16       otherwise,                                                                                                        
17 (1)  "Alaska marine highway system" means the vessels, ferry terminal                                                   
18 facilities, motor vehicles, and other properties that provide public marine                                             
19       transportation in, from, or to the state;                                                                         
20                 (2)  "board" means the board of directors established by AS 42.50.020;                                  
21 (3)  "commissioners" means the commissioner of commerce,                                                                
22 community, and economic development and the commissioner of transportation and                                          
23       public facilities;                                                                                                
24 (4)  "corporation" means the Alaska Marine Highway System                                                               
25       Corporation established by AS 42.50.010;                                                                          
26                 (5)  "employees" means all persons employed by the corporation;                                         
27 (6)  "executive officer" means an executive officer appointed under                                                     
28       AS 42.50.110;                                                                                                     
29 (7)  "ferry" means a vessel used to carry passengers and vehicles in                                                    
30       intrastate or interstate commerce;                                                                                
31 (8)  "ferry terminal facility" means a facility for loading and unloading                                               
01       passengers and vehicles;                                                                                          
02                 (9)  "land" means an interest in real property, including tide and                                      
03       submerged land, and a right appurtenant to the interest;                                                          
04                 (10)  "real property" includes interest in real property;                                               
05                 (11)  "regulation" means a regulation authorized by AS 42.50.180.                                       
06            Sec. 42.50.995. Short title. This chapter may be cited as the Alaska Marine                                
07       Highway System Corporation Act.                                                                                   
08    * Sec. 56. AS 43.40.010(g) is amended to read:                                                                     
09            (g)  The proceeds of the revenue from the tax on all motor fuels, except as                                  
10 provided in (e), (f) and (j) of this section, shall be deposited in a special highway fuel                              
11 tax account in the state general fund. The legislature may appropriate funds from it for                                
12 expenditure by the Department of Transportation and Public Facilities directly or as                                    
13 matched with available federal-aid highway money for maintenance of highways and                                    
14 [,] construction of highway projects, except [AND] ferries and facilities of the                                
15 Alaska marine highway system, included in the program provided for in                                               
16 AS 19.10.150, including approaches, appurtenances and related facilities and                                            
17 acquisition of rights-of-way or easements, and other highway costs including surveys,                                   
18 administration, and related matters, and for expenditure by the Alaska Marine                                       
19 Highway System Corporation for the Alaska marine highway system. All                                                
20 departments of the state government authorized to spend funds collected from taxes                                      
21 imposed by this chapter shall perform, when feasible, all construction or                                               
22 reconstruction projects by contract after the projects have been advertised for                                         
23 competitive bids, except that, when feasible, arrangements shall be made with political                                 
24 subdivisions to carry out the construction or reconstruction projects. If it is not feasible                            
25 for the work to be performed by state engineering forces, the commissioner of                                           
26 transportation and public facilities may contract on a professional basis with private                                  
27 engineering firms for road design, bridge design, and services in connection with                                       
28 surveys. If more than one private engineering firm is available for the work the                                        
29 contracts shall be entered into on a negotiated basis. For the purposes of this                                     
30       subsection, the Alaska Marine Highway System Corporation is not a department.                                 
31    * Sec. 57. AS 43.40.010 is amended by adding new subsections to read:                                              
01 (m)  The legislature may appropriate funds from the special highway fuel tax                                            
02 account identified in (g) of this section to the Alaska Marine Highway System                                           
03 Corporation for expenditure by the Alaska Marine Highway System Corporation for                                         
04       the Alaska marine highway system.                                                                                 
05            (n)  In this section,                                                                                        
06                 (1)  "Alaska marine highway system" has the meaning given in                                            
07       AS 42.50.990;                                                                                                     
08                 (2)  "Alaska Marine Highway System Corporation" means the                                               
09       corporation established by AS 42.50.010.                                                                          
10    * Sec. 58. AS 44.12.200(b) is amended to read:                                                                     
11 (b)  In this section, "state agency" means a department, institution, board,                                            
12 commission, division, authority, public corporation, committee, or other                                                
13 administrative unit of the executive branch of state government, including the                                          
14 University of Alaska, the Alaska Railroad Corporation, [AND] the Alaska Aerospace                                       
15       Corporation, and the Alaska Marine Highway System Corporation.                                                
16    * Sec. 59. AS 44.19.027 is amended to read:                                                                        
17 Sec. 44.19.027. Emergency assistance transportation. If the governor                                                  
18 determines that public safety or health conditions in an area of the state require                                      
19 emergency assistance, the governor may use state-owned and state-operated                                               
20 transportation facilities, aircraft, vessels of the Alaska Marine Highway System                                    
21 Corporation [MARINE HIGHWAY SYSTEM], or railroad rolling stock of the                                               
22 Alaska Railroad to deliver compassionate aid for distribution to the affected area,                                     
23 including food, water, fuel, clothing, medicine, and other supplies provided by                                         
24       nonprofit organizations.                                                                                          
25    * Sec. 60. AS 44.21.390(2) is amended to read:                                                                     
26 (2)  "state agencies" means all departments, divisions, and offices in the                                              
27 executive branch of state government; it does not mean the Alaska Railroad                                              
28 Corporation, the University of Alaska, the Alaska Marine Highway System                                             
29       Corporation, or an agency of the judicial or legislative branches of government.                              
30    * Sec. 61. AS 44.29.300(a) is amended to read:                                                                     
31 (a)  There is established in the Department of Health and Social Services the                                           
01       Statewide Suicide Prevention Council, consisting of 17 members, as follows:                                       
02                 (1)  two members of the senate, appointed by the president of the                                       
03       senate, one of whom shall be a member of the majority and one of whom shall be a                                  
04       member of the minority;                                                                                           
05                 (2)  two members of the house of representatives, appointed by the                                      
06       speaker of the house of representatives, one of whom shall be a member of the                                     
07       majority and one of whom shall be a member of the minority;                                                       
08                 (3)  13 members appointed by the governor, as follows:                                                  
09                      (A)  two persons who are employed in the executive branch of                                       
10 state government, one of whom shall represent the Department of Health and                                              
11 Social Services and one of whom shall represent the Department of Education                                             
12            and Early Development;                                                                                       
13 (B)  one member of the Advisory Board on Alcoholism and                                                                 
14            Drug Abuse;                                                                                                  
15                      (C)  one member of the Alaska Mental Health Board;                                                 
16 (D)  one person recommended by the Alaska Federation of                                                                 
17            Natives, Inc.;                                                                                               
18                      (E)  one person who is an employee of a secondary school;                                          
19                      (F)  one person who is active in a youth organization;                                             
20 (G)  one person who has experienced the death by suicide of a                                                           
21            member of the person's family;                                                                               
22 (H)  one person who resides in a rural community in the state                                                           
23 that is not connected to the main road system of the state by road or by the                                    
24 Alaska marine highway system operated by the Alaska Marine Highway                                                  
25            System Corporation [TO THE MAIN ROAD SYSTEM OF THE STATE];                                               
26                      (I)  one person who is a member of the clergy;                                                     
27 (J)  one person who, when appointed, is at least 16 years of age                                                        
28            but not more than 24 years of age;                                                                           
29 (K)  one person who is discharged from, retired from, or                                                                
30 engaged in active duty military service in the armed forces of the United                                               
31 States, including the United States Coast Guard, the Army National Guard, the                                           
01 Air National Guard, or a reserve unit of the armed forces of the United States,                                         
02 or who is a mental health provider, social worker, or other person actively                                             
03 providing a health care service to discharged, retired, or active military                                              
04            personnel; and                                                                                               
05                      (L)  one public member.                                                                            
06    * Sec. 62. AS 44.33.010 is amended to read:                                                                        
07 Sec. 44.33.010. Commissioner of commerce, community, and economic                                                     
08 development. The principal executive officer of the Department of Commerce,                                           
09 Community, and Economic Development is the commissioner of commerce,                                                    
10 community, and economic development. Except with respect to the commissioner's                                          
11 membership on the board of directors of the Alaska Railroad Corporation and the                                     
12 Alaska Marine Highway System Corporation, whenever a statute provides that the                                      
13 commissioner is a member of a board, council, or other similar entity, the                                              
14 commissioner may designate an employee of the department to act in the                                                  
15       commissioner's place.                                                                                             
16    * Sec. 63. AS 44.42.020(a) is amended to read:                                                                     
17            (a)  The department shall                                                                                    
18 (1)  plan, design, construct, and maintain all state modes of                                                           
19 transportation and transportation facilities and all docks, floats, breakwaters, buildings,                             
20       and similar facilities, except for the Alaska marine highway system;                                          
21 (2)  study existing transportation modes and facilities in the state to                                                 
22 determine how they might be improved or whether they should continue to be                                              
23       maintained;                                                                                                       
24 (3)  study alternative means of improving transportation in the state                                                   
25 with regard to the economic costs of each alternative and its environmental and social                                  
26       effects;                                                                                                          
27 (4)  develop a comprehensive, long-range, intermodal transportation                                                     
28       plan for the state;                                                                                               
29 (5)  study alternatives to existing modes of transportation in urban areas                                              
30       and develop plans to improve urban transportation;                                                                
31 (6)  cooperate and coordinate with and enter into agreements with                                                       
01       federal, state, and local government agencies and private organizations and persons in                            
02       exercising its powers and duties;                                                                                 
03 (7)  manage, operate, and maintain state transportation facilities and all                                              
04 docks, floats, breakwaters, and buildings, including all state highways, vessels,                                       
05 railroads, pipelines, airports, and aviation facilities; this paragraph does not apply to                           
06       the Alaska marine highway system;                                                                             
07                 (8)  study alternative means of transportation in the state, considering                                
08       the economic, social, and environmental effects of each alternative;                                              
09                 (9)  coordinate and develop state and regional transportation systems,                                  
10       considering deletions, additions, and the absence of alterations;                                                 
11 (10)  develop facility program plans for transportation and state                                                       
12 buildings, docks, and breakwaters required to implement the duties set out in this                                      
13 section, including but not limited to functional performance criteria and schedules for                                 
14       completion;                                                                                                       
15 (11)  supervise and maintain all state automotive and mechanical                                                        
16 equipment, aircraft, and vessels, except vessels and aircraft used by the Department of                                 
17 Fish and Game or the Department of Public Safety; for state vehicles maintained by                                      
18 the department, the department shall, every five years, evaluate the cost, efficiency,                                  
19 and commercial availability of alternative fuels for automotive purposes, and the                                       
20 purpose for which the vehicles are intended to be used, and convert vehicles to use                                     
21 alternative fuels or purchase energy efficient vehicles whenever practicable; the                                       
22 department may participate in joint ventures with public or private partners that will                                  
23 foster the availability of alternative fuels for all automotive fuel consumers; except as                           
24 provided in AS 42.50.310, this paragraph does not apply to the Alaska marine                                        
25       highway system;                                                                                               
26                 (12)  supervise aeronautics inside the state, under AS 02.10;                                           
27 (13)  implement the safety and financial responsibility requirements for                                                
28       air carriers under AS 02.40;                                                                                      
29                 (14)  inspect weights and measures;                                                                     
30 (15)  at least every four years, study alternatives available to finance                                                
31 transportation systems in order to provide an adequate level of funding to sustain and                                  
01       improve the state's transportation system.                                                                        
02    * Sec. 64. AS 44.42.020 is amended by adding a new subsection to read:                                             
03            (c)  In this section, "Alaska marine highway system" has the meaning given in                                
04       AS 42.50.990.                                                                                                     
05    * Sec. 65. AS 44.88.610(a)(2) is amended to read:                                                                  
06                 (2)  "connected by road" does not include a connection by the Alaska                                    
07       marine highway system operated by the Alaska Marine Highway System                                            
08       Corporation.                                                                                                  
09    * Sec. 66. AS 44.99.020 is amended to read:                                                                        
10 Sec. 44.99.020. Use of paper. A state agency shall use both sides of paper                                            
11 when feasible. In this section, "state agency" means a department, institution, board,                                  
12 commission, division, authority, public corporation, or other administrative unit of the                                
13 executive, legislative, or judicial branch of state government, including the University                                
14 of Alaska, the Alaska Railroad Corporation, the Alaska Marine Highway System                                        
15       Corporation, and legislative committees.                                                                      
16    * Sec. 67. AS 44.99.030(a) is amended to read:                                                                     
17 (a)  Notwithstanding other provisions of law, the following entities may not                                            
18 contract with a person to pay the person money or other thing of value to lobby the                                     
19       state, a municipality of the state, or an agency of the state or municipality:                                    
20                 (1)  Alaska Aerospace Corporation;                                                                      
21                 (2)  Alaska Commercial Fishing and Agriculture Bank;                                                    
22                 (3)  Alaska Energy Authority;                                                                           
23                 (4)  Alaska Housing Finance Corporation;                                                                
24                 (5)  Alaska Industrial Development and Export Authority;                                                
25                 (6)  Alaska Medical Facility Authority;                                                                 
26                 (7)  Alaska Mental Health Trust Authority;                                                              
27                 (8)  Alaska Municipal Bond Bank Authority;                                                              
28                 (9)  Alaska Permanent Fund Corporation;                                                                 
29                 (10)  Alaska Railroad Corporation;                                                                      
30                 (11)  [REPEALED                                                                                         
31                 (12)]  Alaska Seafood Marketing Institute;                                                              
01                 (12) [(13)]  Alaska Student Loan Corporation;                                                   
02                 (13)  Alaska Marine Highway System Corporation.                                                     
03    * Sec. 68. AS 44.99.040(b)(2) is amended to read:                                                                  
04 (2)  "state or municipal agency" means the University of Alaska, the                                                    
05 Alaska Aerospace Corporation, the Alaska Housing Finance Corporation, the Alaska                                        
06 Industrial Development and Export Authority, the Alaska Energy Authority, the                                           
07 Alaska Railroad Corporation, the Alaska Marine Highway System Corporation, or                                       
08 a department, institution, board, commission, division, council, committee, authority,                                  
09 public corporation, school district, regional educational attendance area, or other                                     
10 administrative unit of a municipality or of the executive, judicial, or legislative branch                              
11       of state government, and includes employees of those entities.                                                    
12    * Sec. 69. AS 44.99.400 is amended to read:                                                                        
13 Sec. 44.99.400. Software copyrights. A state agency may hold the copyright                                            
14 for software created by the agency or developed by a private contractor for an agency,                                  
15 and may enforce its rights to protect the copyright. In this section, "state agency"                                    
16 means a department, institution, board, commission, division, authority, public                                         
17 corporation, committee, or other administrative unit of the executive, judicial, or                                     
18 legislative branch of state government, including the University of Alaska, the Alaska                                  
19 Aerospace Corporation, [AND] the Alaska Railroad Corporation, and the Alaska                                        
20       Marine Highway System Corporation.                                                                            
21    * Sec. 70. AS 46.14.990(21) is amended to read:                                                                    
22 (21)  "person" has the meaning given in AS 01.10.060 and also                                                           
23 includes an agency of the United States, a municipality, the University of Alaska, the                                  
24 Alaska Railroad Corporation, the Alaska Marine Highway System Corporation,                                          
25 and other departments, agencies, instrumentalities, units, and corporate authorities of                                 
26       the state;                                                                                                        
27    * Sec. 71. AS 19.65.110, 19.65.120, 19.65.130, 19.65.140, 19.65.150, 19.65.160, 19.65.170,                         
28 19.65.180, 19.65.190, 19.65.195; AS 36.30.015(g), and 36.30.850(b)(28) are repealed.                                    
29    * Sec. 72. The uncodified law of the State of Alaska is amended by adding a new section to                         
30 read:                                                                                                                   
31 TRANSITION: INITIAL BOARD MEMBERS. (a) By January 1, 2019, the governor                                                 
01 shall appoint the five initial board members of the corporation under AS 42.50.020(b)(3) and                            
02 (c), added by sec. 55 of this Act, for staggered terms as provided by AS 39.05.055.                                     
03       (b)  In this section,                                                                                             
04            (1)  "board" means the board of directors of the corporation;                                                
05            (2)  "corporation" means the Alaska Marine Highway System Corporation                                        
06 established by AS 42.50.010, added by sec. 55 of this Act.                                                              
07    * Sec. 73. The uncodified law of the State of Alaska is amended by adding a new section to                         
08 read:                                                                                                                   
09       TRANSITION: INITIAL APPOINTMENT AND DELEGATION OF POWERS                                                          
10 AND DUTIES. (a) By February 1, 2019, the board shall appoint and delegate to the chief                                  
11 executive officer the powers and duties identified in AS 42.50.120(a), added by sec. 55 of this                         
12 Act.                                                                                                                    
13       (b)  In this section,                                                                                             
14            (1)  "board" means the board of directors of the corporation;                                                
15 (2)  "corporation" means the Alaska Marine Highway System Corporation                                                   
16 established by AS 42.50.010, added by sec. 55 of this Act.                                                              
17    * Sec. 74. The uncodified law of the State of Alaska is amended by adding a new section to                         
18 read:                                                                                                                   
19 TRANSITION: INITIAL REGULATIONS AND ORDERS. (a) By May 1, 2019, the                                                     
20 board shall adopt the initial regulations necessary for the operation of the corporation and the                        
21 Alaska marine highway system.                                                                                           
22 (b)  The board may provide by resolution that regulations and orders in effect on the                                   
23 date of the transfer of Alaska marine highway system property to the corporation remain in                              
24 effect until amended or repealed by the board. AS 42.50.180 and 42.50.185, added by sec. 55                             
25 of this Act, do not apply to actions taken under this section.                                                          
26       (c)  In this section,                                                                                             
27 (1)  "Alaska marine highway system" has the meaning given in AS 42.50.990,                                              
28 added by sec. 55 of this Act;                                                                                           
29            (2)  "board" means the board of directors of the corporation;                                                
30 (3)  "corporation" means the Alaska Marine Highway System Corporation                                                   
31 established by AS 42.50.010, added by sec. 55 of this Act.                                                              
01    * Sec. 75. The uncodified law of the State of Alaska is amended by adding a new section to                         
02 read:                                                                                                                   
03 TRANSITION: DEPARTMENT NEGOTIATION, NONRENEWAL, AND                                                                     
04 TERMINATION OF COLLECTIVE BARGAINING AGREEMENTS. (a) Notwithstanding                                                    
05 another provision of this Act, including AS 23.40.040, as amended by sec. 19 of this Act, on                            
06 the effective date of this section, the department shall enter into negotiations with a union to                        
07 assign the state's interest in the collective bargaining agreement with the union to the                                
08 corporation.                                                                                                            
09 (b)  When the department and a union have reached an agreement under (a) of this                                        
10 section, the state shall assign the state's interest in the collective bargaining agreement to the                      
11 corporation.                                                                                                            
12 (c)  If, within 30 days after the effective date of this section, the department and a                                  
13 union cannot reach an agreement under (a) of this section to assign the collective bargaining                           
14 agreement to the corporation, the department shall terminate the collective bargaining                                  
15 agreement at the time and in the manner provided under the terms of the collective bargaining                           
16 agreement.                                                                                                              
17       (d)  In this section,                                                                                             
18 (1)  "Alaska marine highway system" means the system, including the vessels,                                            
19 ferry terminal facilities, motor vehicles, and other property, established by the state that                            
20 provides public marine transportation in, from, or to the state;                                                        
21 (2)  "collective bargaining agreement" means the collective bargaining                                                  
22 agreement entered into between the department and a union;                                                              
23 (3)  "corporation" means the Alaska Marine Highway System Corporation                                                   
24 established by AS 42.50.010, added by sec. 55 of this Act;                                                              
25 (4)  "department" means the Department of Transportation and Public                                                     
26 Facilities;                                                                                                             
27            (5)  "union" means the                                                                                       
28                 (A)  International Organization of Masters, Mates, and Pilots;                                          
29                 (B)  Marine Engineers' Beneficial Association; or                                                       
30                 (C)  Inlandboatmen's Union representing the Unlicensed Marine Unit.                                     
31    * Sec. 76. The uncodified law of the State of Alaska is amended by adding a new section to                         
01 read:                                                                                                                   
02       TRANSITION: CORPORATION NEGOTIATION OF COLLECTIVE                                                                 
03 BARGAINING AGREEMENTS. (a) The corporation shall negotiate and enter into a                                             
04 collective bargaining agreement with a union after all of the following have occurred:                                  
05            (1)  the board has been appointed under sec. 72 of this Act;                                                 
06            (2)  the chief executive officer has been appointed and delegated powers under                               
07 sec. 73 of this Act;                                                                                                    
08            (3)  the corporation has adopted regulations under sec. 74 of this Act; and                                  
09            (4)  the department has assigned an agreement with a union to the corporation                                
10 under sec. 75(b) of this Act, and the agreement has later terminated, or the agreement with the                         
11 union has terminated under sec. 75(c) of this Act.                                                                      
12       (b)  In this section,                                                                                             
13            (1)  "board" means the board of directors of the corporation;                                                
14 (2)  "corporation" means the Alaska Marine Highway System Corporation                                                   
15 established by AS 42.50.010, added by sec. 55 of this Act;                                                              
16 (3)  "department" means the Department of Transportation and Public                                                     
17 Facilities;                                                                                                             
18            (4)  "union" means the                                                                                       
19                 (A)  International Organization of Masters, Mates, and Pilots;                                          
20                 (B)  Marine Engineers' Beneficial Association; or                                                       
21                 (C)  Inlandboatmen's Union representing the Unlicensed Marine Unit.                                     
22    * Sec. 77. The uncodified law of the State of Alaska is amended by adding a new section to                         
23 read:                                                                                                                   
24 TRANSITION: TRANSFER OF ASSETS; ASSUMPTION OF RIGHTS,                                                                   
25 LIABILITIES, AND OBLIGATIONS. (a) On June 1, 2019,                                                                      
26 (1)  the Department of Transportation and Public Facilities shall transfer to the                                       
27 corporation the vessels, ferry port facilities, real property, and vehicles and other personal                          
28 property used for the Alaska marine highway system; the corporation shall take title in its own                         
29 name to this property; and                                                                                              
30 (2)  the corporation shall assume all rights, liabilities, and obligations of the                                       
31 Alaska marine highway system.                                                                                           
01       (b)  In this section,                                                                                             
02            (1)  "Alaska marine highway system" has the meaning given in AS 42.50.990,                                   
03 added by sec. 55 of this Act;                                                                                           
04            (2)  "corporation" means the Alaska Marine Highway System Corporation                                        
05 established by AS 42.50.010, added by sec. 55 of this Act.                                                              
06    * Sec. 78. The uncodified law of the State of Alaska is amended by adding a new section to                         
07 read:                                                                                                                   
08       TRANSITION: OPERATION OF MARINE HIGHWAY SYSTEM BY                                                                 
09 CORPORATION. (a) The corporation shall begin operating the Alaska marine highway                                        
10 system on July 1, 2019, or on the date when the Department of Transportation and Public                                 
11 Facilities assigns or terminates the collective bargaining agreements with all of the unions                            
12 under sec. 75 of this Act, whichever event occurs later.                                                                
13       (b)  In this section,                                                                                             
14 (1)  "Alaska marine highway system" has the meaning given in AS 42.50.990,                                              
15 added by sec. 55 of this Act;                                                                                           
16 (2)  "corporation" means the Alaska Marine Highway System Corporation                                                   
17 established by AS 42.50.010, added by sec. 55 of this Act;                                                              
18            (3)  "union" means the                                                                                       
19                 (A)  International Organization of Masters, Mates, and Pilots;                                          
20                 (B)  Marine Engineers' Beneficial Association; and                                                      
21                 (C)  Inlandboatmen's Union representing the Unlicensed Marine Unit.                                     
22    * Sec. 79. The uncodified law of the State of Alaska is amended by adding a new section to                         
23 read:                                                                                                                   
24 TRANSITION: MISCELLANEOUS PROVISIONS. All contracts, rights, liabilities,                                               
25 bonds, notes, or other obligations of the Alaska marine highway system as owned and                                     
26 operated by the Department of Transportation and Public Facilities that are created by or                               
27 under a law amended or repealed by this Act, and in effect on the effective date of this                                
28 section, remain in effect notwithstanding this Act's taking effect, with all contracts, rights,                         
29 liabilities, bonds, notes, or other obligations of the Alaska marine highway system becoming                            
30 contracts, rights, liabilities, bonds, notes, and other obligations of the Alaska Marine Highway                        
31 System Corporation established by AS 42.50.010, added by sec. 55 of this Act, with the same                             
01 limitations and provisions as under a contract, right, liability, bond, note, or other obligation                       
02 of the former Alaska marine highway system owned and operated by the Department of                                      
03 Transportation and Public Facilities. In this section, "Alaska marine highway system" has the                           
04 meaning given in AS 42.50.990, added by sec. 55 of this Act.                                                            
05    * Sec. 80. The uncodified law of the State of Alaska is amended by adding a new section to                         
06 read:                                                                                                                   
07 TRANSITIONAL PROVISION: REPORT OF TRANSFERRED ASSETS. The                                                               
08 Department of Transportation and Public Facilities shall prepare or direct the preparation of                           
09 all necessary financial reports of the assets to be transferred by it under sec. 77 of this Act as                      
10 of the close of business on the day before the effective date of the transfer.                                          
11    * Sec. 81. The uncodified law of the State of Alaska is amended by adding a new section to                         
12 read:                                                                                                                   
13 TRANSITION: INITIAL REPORTS. (a) Notwithstanding AS 42.50.270(a), added by                                              
14 sec. 55 of this Act, the Alaska Marine Highway System Corporation shall file its first                                  
15 operations and performance report required under AS 42.50.270, added by sec. 55 of this Act,                            
16 within 90 days following the end of its second fiscal year. The report must cover the first two                         
17 fiscal years of the corporation.                                                                                        
18 (b)  Notwithstanding AS 42.50.280, added by sec. 55 of this Act, the board of                                           
19 directors of the Alaska Marine Highway System Corporation shall file its first travel and                               
20 compensation report required under AS 42.50.280, added by sec. 55 of this Act, with the                                 
21 Department of Administration by January 21 of the third calendar year after this Act takes                              
22 effect.                                                                                                                 
23    * Sec. 82. The uncodified law of the State of Alaska is amended by adding a new section to                         
24 read:                                                                                                                   
25 TRANSITION: INITIAL AUDIT. Notwithstanding AS 42.50.260(a), added by sec. 55                                            
26 of this Act, the board of directors of the Alaska Marine Highway System Corporation                                     
27 established by AS 42.50.010, added by sec. 55 of this Act, shall have the first audit required                          
28 under AS 42.50.260(a), added by sec. 55 of this Act, performed after the second fiscal year of                          
29 the corporation. The audits must cover the first and second fiscal years of the corporation.                            
30    * Sec. 83. The uncodified law of the State of Alaska is amended by adding a new section to                         
31 read:                                                                                                                   
01       CONDITIONAL EFFECT; NOTIFICATION. (a) Section 43 of this Act takes effect                                         
02 only if the commissioner of commerce, community, and economic development notifies the                                  
03 revisor of statutes in writing as required under (b) of this section.                                                   
04 (b)  The commissioner of commerce, community, and economic development shall                                            
05 notify the revisor of statutes in writing of the date that the Department of Transportation and                         
06 Public Facilities has assigned to the Alaska Marine Highway System Corporation under sec.                               
07 75 of this Act, or the Alaska Marine Highway System Corporation has entered into under sec.                             
08 76 of this Act, a collective bargaining agreement with all of the following:                                            
09            (1)  the International Organization of Masters, Mates, and Pilots;                                           
10            (2)  the Marine Engineers' Beneficial Association; and                                                       
11            (3)  the Inlandboatmen's Union representing the Unlicensed Marine Unit.                                      
12       (c)  In this section, "Alaska Marine Highway System Corporation" means the Alaska                                 
13 Marine Highway System Corporation established by AS 42.50.010, added by sec. 55 of this                                 
14 Act.                                                                                                                    
15    * Sec. 84. If, under sec. 83 of this Act, sec. 43 of this Act takes effect, it takes effect the day                
16 after the date the commissioner of commerce, community, and economic development                                        
17 notifies the revisor of statutes under sec. 83 of this Act.                                                             
18    * Sec. 85. Except as provided in sec. 84 of this Act, this Act takes effect immediately under                      
19 AS 01.10.070(c).