Legislature(2021 - 2022)BARNES 124

03/18/2021 01:30 PM House TRANSPORTATION

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01:33:37 PM Start
01:34:53 PM HB63
02:25:51 PM Presentation(s): Alaska Marine Highway System
03:03:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 63 ALASKA MARINE HIGHWAY OPERATIONS BOARD TELECONFERENCED
Moved CSHB 63(TRA) Out of Committee
-- Invited & Public Testimony --
-- <Time Limit May Be Set> --
+ Presentation: Alaska Marine Highway System TELECONFERENCED
Vessel Replacement - Budget, Planning &
Projections by Dept. of Transportation & Public
Safety
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         March 18, 2021                                                                                         
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Grier Hopkins, Chair                                                                                             
Representative Sara Hannan, Vice Chair                                                                                          
Representative Ivy Spohnholz                                                                                                    
Representative Harriet Drummond                                                                                                 
Representative Kevin McCabe                                                                                                     
Representative Mike Cronk                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Tom McKay                                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 63                                                                                                               
"An   Act  relating   to  the   duties  of   the  Department   of                                                               
Transportation and Public Facilities;  renaming the Alaska Marine                                                               
Transportation   Advisory  Board   the   Alaska  Marine   Highway                                                               
Operations Board;  relating to the  membership and duties  of the                                                               
Alaska  Marine Highway  Operations  Board; and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 63(TRA) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PRESENTATION(S): ALASKA MARINE HIGHWAY SYSTEM                                                                                   
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  63                                                                                                                  
SHORT TITLE: ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                             
SPONSOR(s): REPRESENTATIVE(s) STUTES                                                                                            
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/15/21                                                                               
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       TRA, STA                                                                                               
03/11/21       (H)       TRA AT 1:30 PM BARNES 124                                                                              
03/11/21       (H)       Heard & Held                                                                                           
03/11/21       (H)       MINUTE(TRA)                                                                                            
03/18/21       (H)       TRA AT 1:30 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE LOUISE STUTES                                                                                                    
Legislator                                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 63 as prime sponsor and                                                                    
answered questions during the meeting.                                                                                          
                                                                                                                                
KERRY CROCKER                                                                                                                   
Staff to Representative Louise Stutes                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 63 on behalf of                                                                            
Representative Stutes, prime sponsor.                                                                                           
                                                                                                                                
NANCY BIRD                                                                                                                      
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 63.                                                                           
                                                                                                                                
ROB CARPENTER                                                                                                                   
Deputy Commissioner                                                                                                             
Department of Transportation & Public Facilities                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Showed a PowerPoint and answered questions                                                               
during the meeting.                                                                                                             
                                                                                                                                
CAPTAIN JOHN FALVEY                                                                                                             
General Manager                                                                                                                 
Alaska Marine Highway System                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the meeting.                                                                   
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:37 PM                                                                                                                    
                                                                                                                                
CHAIR  GRIER HOPKINS  called  the  House Transportation  Standing                                                             
Committee meeting to order at  1:33 p.m.  Representatives McCabe,                                                               
Spohnholz, Hannan,  Cronk, Drummond, and Hopkins  were present at                                                               
the call to order.                                                                                                              
                                                                                                                                
         HB  63-ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                      
                                                                                                                                
1:34:53 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS  announced that the  first order of  business would                                                               
be  HOUSE BILL  NO. 63,  "An Act  relating to  the duties  of the                                                               
Department of Transportation and  Public Facilities; renaming the                                                               
Alaska  Marine Transportation  Advisory Board  the Alaska  Marine                                                               
Highway Operations  Board; relating to the  membership and duties                                                               
of the Alaska Marine Highway  Operations Board; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
1:35:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LOUISE   STUTES,    Legislator,   Alaska   State                                                               
Legislature, as  prime sponsor, introduced HB  63.  Strengthening                                                               
governance for  the Alaska  Marine Highway  System (AMHS),  HB 63                                                               
would select a  governance board composed of  members with marine                                                               
experience.    Members would  be  chosen  by governor,  House  of                                                               
Representatives,  and   Senate,  and  would  need   to  meet  set                                                               
requirements.                                                                                                                   
                                                                                                                                
1:37:44 PM                                                                                                                    
                                                                                                                                
KERRY  CROCKER, Staff  to  Representative  Louise Stutes,  Alaska                                                               
State Legislature,  offered diversity  in board would  matter and                                                               
would create long-term planning for AMHS, he added.                                                                             
                                                                                                                                
1:38:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN moved Amendment 1, which read as follows:                                                                 
                                                                                                                                
     Page 1, line 4, following "Board;":                                                                                      
          Insert    "relating    to    the    comprehensive,                                                                  
     intermodal,  long-range  transportation  plan  for  the                                                                  
     state;"                                                                                                                  
                                                                                                                                
     Page 1, lines 6 - 14:                                                                                                      
          Delete all material and insert:                                                                                       
        "* Section 1. AS 19.65.011 is amended to read:                                                                      
          Sec. 19.65.011. Short-term and comprehensive                                                                      
     [COMPREHENSIVE]    long-range    plans   [PLAN].    The                                                                
     Department of Transportation  and Public Facilities, in                                                                    
     consultation with the  Alaska Marine Highway Operations                                                                
     [TRANSPORTATION  ADVISORY]   Board,  shall   prepare  a                                                                    
     short-term and a comprehensive  long-range plan for the                                                                
     development  and  improvement   of  the  Alaska  marine                                                                    
     highway  system and  shall,  in  consultation with  the                                                                    
     Alaska   Marine   Highway  Operations   [TRANSPORTATION                                                                
     ADVISORY] Board, revise and  update the short-term plan                                                                
     annually,  and  the  comprehensive long-range  plan  at                                                                
     least every  three [FIVE]  years. The  department shall                                                                
     submit both the short-term  and the comprehensive long-                                                                
     range  plans [PLAN]  and revisions  and updates  of the                                                                
     plans [PLAN] to the legislature."                                                                                      
                                                                                                                                
     Page 2, following line 12:                                                                                                 
          Insert a new paragraph to read:                                                                                       
               "(3)  one representative of an Alaska Native                                                                     
     organization or  tribe who is  from a  community served                                                                    
     by the  Alaska marine highway system,  appointed by the                                                                    
     governor;"                                                                                                                 
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 2, line 13:                                                                                                           
          Delete "three"                                                                                                        
          Insert "two"                                                                                                          
                                                                                                                                
     Page 2, line 17:                                                                                                           
          Delete "members"                                                                                                      
          Insert "public members who have experience in                                                                         
     marine  business  and   procurement  practices,  marine                                                                    
     personnel management, commercial  service options, ship                                                                    
     maintenance, construction, and  repair, fleet strategy,                                                                    
     reliability,   and  regulatory   compliance,  or   risk                                                                    
     management,"                                                                                                               
                                                                                                                                
     Page 2, line 20:                                                                                                           
          Delete "members"                                                                                                      
          Insert "public members who have experience in                                                                         
     marine  business  and   procurement  practices,  marine                                                                    
     personnel management, commercial  service options, ship                                                                    
     maintenance, construction, and  repair, fleet strategy,                                                                    
     reliability,   and  regulatory   compliance,  or   risk                                                                    
     management,"                                                                                                               
                                                                                                                                
     Page 3, following line 14:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "* Sec. 8. AS 44.42.050(a) is amended to read:                                                                      
          (a)      The    commissioner   shall   develop   a                                                                    
     comprehensive,  intermodal,  long-range  transportation                                                                    
     plan for the state.  The commissioner shall incorporate                                                                
     the  comprehensive   long-range  plan   prepared  under                                                                
     AS 19.65.011  into   the  plan  developed   under  this                                                                
     section.  The   plan  may  be  developed   in  multiple                                                                
     documents  that address  logical components,  including                                                                    
     geographic    areas,     modes    of    transportation,                                                                    
     transportation corridors,  systems, and  other distinct                                                                    
     subjects  relevant  to   transportation  planning.  The                                                                    
     components  of  the  plan  shall   be  revised  as  the                                                                    
     commissioner determines appropriate.  In developing and                                                                    
     revising  the   state  plan,  the   commissioner  shall                                                                    
     conform  to the  requirements for  the eligibility  and                                                                    
     use  of federal  and other  funds, as  applicable. Upon                                                                    
     approval  of   each  component  of  the   plan  by  the                                                                    
     commissioner,  the commissioner  shall transmit  notice                                                                    
     of the approval  of that component to  the governor and                                                                    
     to the legislature."                                                                                                       
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, line 25:                                                                                                           
          Delete "three"                                                                                                        
          Insert "two"                                                                                                          
                                                                                                                                
     Page 3, following line 26:                                                                                                 
          Insert a new paragraph to read:                                                                                       
               "(2)  the representative of an Alaska Native                                                                     
     organization or  tribe appointed by the  governor shall                                                                    
     serve a one-year term;"                                                                                                    
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
1:38:52 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS objected, for purposes of discussion.                                                                             
                                                                                                                                
1:38:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  introduced Amendment 1, the  first section                                                               
of  which  identified  there  would  be  both  a  short-term  and                                                               
comprehensive  long-term plan.   Section  one added  "short-term"                                                               
every time "long-term"  was mentioned, she said.  On  page 12, of                                                               
the governor's appointees, one would  be a tribal member, so that                                                               
changed the  number from  three to two.   Community  members were                                                               
members of the public with  marine experience, not members of the                                                               
legislature, she explained.  All  three public members would have                                                               
the  same qualifications,  but  would  have different  appointing                                                               
entities, she added.                                                                                                            
                                                                                                                                
1:43:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES expressed support for Amendment 1, which                                                                  
she called "clarifying."                                                                                                        
                                                                                                                                
1:43:49 PM                                                                                                                    
                                                                                                                                
MR. CROCKER expressed support for  the "short-term plan" language                                                               
in  Amendment  1,  as  well  as  for  the  incorporation  of  the                                                               
commissioner  of  the  DOT&PF's inclusion  of  the  comprehensive                                                               
long-range plan outlined by the board into the state's plan.                                                                    
                                                                                                                                
1:44:34 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS removed his objection. There being no other                                                                       
objection, Amendment 1 to HB 63 was adopted.                                                                                    
                                                                                                                                
1:44:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE moved Amendment 2, which read as follows:                                                                 
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "Highway"                                                                                                    
          Insert "Transportation"                                                                                             
                                                                                                                                
     Page 1, line 4:                                                                                                            
          Delete "Highway"                                                                                                    
          Insert "Transportation"                                                                                             
                                                                                                                                
     Page 1, lines 8 - 9:                                                                                                       
          Delete    "Alaska   Marine    Highway   Operations                                                                
     [TRANSPORTATION ADVISORY] Board"                                                                                           
          Insert "Alaska Marine Transportation Operations                                                                   
     [ADVISORY] Board"                                                                                                          
                                                                                                                                
     Page 1, lines 11 - 12:                                                                                                     
          Delete    "Alaska   Marine    Highway   Operations                                                                
     [TRANSPORTATION ADVISORY] Board"                                                                                           
          Insert "Alaska Marine Transportation Operations                                                                   
     [ADVISORY] Board"                                                                                                          
                                                                                                                                
     Page 2, lines 2 - 3:                                                                                                       
          Delete    "Alaska   Marine    Highway   Operations                                                                
     [TRANSPORTATION ADVISORY] Board."                                                                                        
          Insert "Alaska Marine Transportation Operations                                                                   
     [ADVISORY] Board."                                                                                                       
                                                                                                                                
     Page 2, lines 4 - 5:                                                                                                       
          Delete    "Alaska   Marine    Highway   Operations                                                                
     [TRANSPORTATION ADVISORY] Board."                                                                                          
          Insert "Alaska Marine Transportation Operations                                                                   
     [ADVISORY] Board."                                                                                                         
                                                                                                                                
     Page 3, line 14:                                                                                                           
          Delete    "Alaska   Marine    Highway   Operations                                                                
     [TRANSPORTATION ADVISORY] Board."                                                                                          
          Insert "Alaska Marine Transportation Operations                                                                   
     [ADVISORY] Board."                                                                                                         
                                                                                                                                
     Page 3, line 18:                                                                                                           
          Delete "HIGHWAY"                                                                                                      
          Insert "TRANSPORTATION"                                                                                               
                                                                                                                                
     Page 3, line 23:                                                                                                           
          Delete "Highway"                                                                                                      
          Insert "Transportation"                                                                                               
                                                                                                                                
     Page 4, line 1:                                                                                                            
          Delete "Highway"                                                                                                      
          Insert "Transportation"                                                                                               
                                                                                                                                
     Page 4, line 3:                                                                                                            
          Delete "Highway"                                                                                                      
          Insert "Transportation"                                                                                               
                                                                                                                                
CHAIR HOPKINS objected, for purposes of discussion.                                                                             
                                                                                                                                
REPRESENTATIVE  MCCABE   introduced  Amendment  2,   which  would                                                               
prevent  the  possibility of  "stacking  the  [AMHS] board"  with                                                               
union or  retired union  personnel, such  as the  Police Advisory                                                               
Council, which  has retired  policemen as  general members.   The                                                               
AMHS  admitted  60% of  their  costs  were personnel  costs,  and                                                               
Representative  McCabe for  this  blamed the  "oligopoly" of  the                                                               
AMHS itself.   Many  boards had  union- or  retired-union members                                                               
serving  on them,  but  it  was unusual  to  have  more than  one                                                               
serving on an advisory board, he said.                                                                                          
                                                                                                                                
1:46:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked if there  was a legal  memo attached                                                               
with any cautions against banning a certain class of people.                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE replied no.                                                                                               
                                                                                                                                
1:47:47 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS asked if any union member could be a member.                                                                      
                                                                                                                                
REPRESENTATIVE MCCABE replied yes,  Amendment 2 could be modified                                                               
to replace  "a union" with  "the unions that  represent employees                                                               
of the AMHS."                                                                                                                   
                                                                                                                                
1:49:19 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:49 p.m. to 1:51 p.m.                                                                       
                                                                                                                                
1:51:46 PM                                                                                                                    
                                                                                                                                
CHAIR  HOPKINS  stated  there  was  on  the  table  a  conceptual                                                               
amendment  to  Amendment  2 proposed  by  Representative  McCabe,                                                               
which would insert in lines 2,  5, and 8, after the word "union,"                                                               
"currently representing  workers employed by the  AMHS," and that                                                               
this conceptual amendment had been moved.                                                                                       
                                                                                                                                
CHAIR HOPKINS objected, for purposes of discussion.                                                                             
                                                                                                                                
1:52:27 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
1:52:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CRONK   seconded  the  conceptual   amendment  to                                                               
Amendment 2.                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE stated language  was only intended to cover                                                               
unions representing the AMHS.                                                                                                   
                                                                                                                                
1:53:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES said  she understood  where Representative                                                               
McCabe  was  coming from  but  having  participated in  the  AMHS                                                               
reshaping group,  was not  sure Amendment  2 with  its conceptual                                                               
amendment would be  applicable.  If it were to  happen that there                                                               
more than one member from one  of the [AMHS employee] unions, she                                                               
stated, those members  would be the ones who would  make the AMHS                                                               
more efficient,  who would be willing  to give and take,  and who                                                               
wanted  jobs.   From  her  personal  conversations, she  imparted                                                               
union members' inclusion  on the board could very well  be to the                                                               
advantage of  the state.  As  an example, she offered  there were                                                               
licensed, available,  and capable workers already  working on the                                                               
ships  and those  very  workers  could save  a  lot  of money  by                                                               
completing maintenance projects.                                                                                                
                                                                                                                                
1:54:57 PM                                                                                                                    
                                                                                                                                
MR. CROCKER expressed his concern  that upper-level management on                                                               
the  vessels themselves,  such as  members of  [The International                                                               
Organization of]  Masters, Mates  & Pilots (MM&P)  and engineers,                                                               
retired  and  went  on  to  work  on  management  in  the  marine                                                               
industry.  This was the very pool from which to draw, he stated.                                                                
                                                                                                                                
1:55:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  if it  had been  realized that  the                                                               
vast number of knowledgeable folks had had union involvement.                                                                   
                                                                                                                                
REPRESENTATIVE MCCABE  said yes, but  he has had  experience with                                                               
union-  or former-union  members having  way too  much sway  over                                                               
contracts and the  like, which resulted in  an "upside-down cost"                                                               
to the  state, there  being no  free market  involved.   He added                                                               
only 6% of the  US had been unionized, so there  was still 94% of                                                               
people to draw from, and that  too much experience was not always                                                               
a good thing and the AMHS could benefit from some new ideas.                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN replied  Alaska's rate  of union  was more                                                               
like 20%.                                                                                                                       
                                                                                                                                
CHAIR HOPKINS added "the second-highest in the nation."                                                                         
                                                                                                                                
REPRESENTATIVE HANNAN said  the composition of the  new board was                                                               
not  so much  about contract  swaying as  it was  about technical                                                               
skills and  training.  The  DOT&PF has had  anti-union leadership                                                               
but has  not bargained any  of the union components,  only wages.                                                               
They were not asking terms were to be changed, she stated.                                                                      
                                                                                                                                
1:59:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SPOHNHOLZ   commented    she   appreciated   the                                                               
amendment's sponsor was concerned with  what could be a potential                                                               
imbalance  in  the AMHS  board  but  was herself  concerned  most                                                               
people who had  experience and expertise with the  AMHS would not                                                               
be able to sit on the board,  and it would be narrowing too much.                                                               
It  wasn't  personnel  costs; it  was  mismanagement  of  capital                                                               
assets and lack of planning.                                                                                                    
                                                                                                                                
2:01:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND  asked how  many labor contracts  for the                                                               
AMHS would be negotiated by the board.                                                                                          
                                                                                                                                
MR.  CROCKER replied  the  DOT&PF,  Department of  Administration                                                               
(DOA), Division of Labor typically negotiated the contracts.                                                                    
                                                                                                                                
2:02:52 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:02 p.m. to 2:03 p.m.                                                                       
                                                                                                                                
2:03:31 PM                                                                                                                    
                                                                                                                                
CHAIR  HOPKINS   maintained  his  objection  to   the  conceptual                                                               
amendment on Amendment 2.                                                                                                       
                                                                                                                                
2:03:53 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:03 p.m. to 2:04 p.m.                                                                       
                                                                                                                                
2:04:42 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives Hannan,  McCabe,                                                               
Cronk,  and  Hopkins voted  in  favor.   Representative  Drummond                                                               
voted  against  it.    Therefore,  the  conceptual  amendment  to                                                               
Amendment 2 passed by a vote of 4 - 1.                                                                                          
                                                                                                                                
2:05:59 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives Cronk  and McCabe                                                               
voted  in  favor  of  Amendment  2.    Representatives  Drummond,                                                               
Hannan,  Spohnholz, and  Hopkins  voted against  it.   Therefore,                                                               
Amendment 2 failed by a vote of 2 - 4.                                                                                          
                                                                                                                                
2:06:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE moved Amendment 3, which read as follows:                                                                 
                                                                                                                                
     Page 2, line 16, following "management,":                                                                                  
          Insert "and who are not active or retired members                                                                     
     of a union,"                                                                                                               
                                                                                                                                
     Page 2, line 17, following "members":                                                                                      
          Insert ", who are not active or retired members                                                                       
     of a union,"                                                                                                               
                                                                                                                                
     Page 2, line 20, following "members":                                                                                      
          Insert ", who are not active or retired members                                                                       
     of a union,"                                                                                                               
                                                                                                                                
                                                                                                                                
CHAIR HOPKINS objected, for purposes of discussion.                                                                             
                                                                                                                                
REPRESENTATIVE MCCABE  said Amendment  3 changed the  title "AMHS                                                               
board"  to "Alaska  Marine Transportations  Board."   This  would                                                               
helped clarify  what the new  board was trying to  accomplish, as                                                               
it dealt  with marine  transportation needs, he  put forth.   The                                                               
use  of the  word  "highway" limited  the focus  to  a branch  of                                                               
transportation or, in Alaska's case,  to a route structure, as it                                                               
was too specific in focus.   "['Highway' is] a noun," he reminded                                                               
the   committee,   as   well  as   a   romantic   misnomer,   and                                                               
"transportation" better described what the AMHS accomplished.                                                                   
                                                                                                                                
2:08:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  said she disagreed with  the Amendment, as                                                               
the original intent was for the AMHS  to in effect be a road, but                                                               
to  make  it  a  marine  highway was  more  cost  effective  than                                                               
building bridges.   Taking  "highway" off  would also  reduce the                                                               
amount  of federal  dollars entitled.    It is  the only  highway                                                               
users paid to get on, she pointed out.                                                                                          
                                                                                                                                
REPRESENTATIVE  MCCABE clarified  Amendment 3  would just  change                                                               
the  name of  the board,  not  the entire  system.   He added  he                                                               
didn't think the  dollars would go away, and  that he "understood                                                               
the romance," but the AMHS was not a highway.                                                                                   
                                                                                                                                
REPRESENTATIVE STUTES  maintained the AMHS was  a marine highway,                                                               
whatever happened to be on it.                                                                                                  
                                                                                                                                
2:12:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN asked  whether  changing the  name of  the                                                               
board would create confusion over task and governance.                                                                          
                                                                                                                                
REPRESENTATIVE MCCABE replied  "no more than calling  a boat that                                                               
runs on a waterway a highway."   He reiterated the need to "think                                                               
broader," adding the AMHS board title limited board reach.                                                                      
                                                                                                                                
REPRESENTATIVE HANNAN  said if the  board was titled  as proposed                                                               
in Amendment 3,  she may think the board had  control over feeder                                                               
airports,  especially float  plane  airports which  were in  many                                                               
communities  served.   She  added  the  AMHS  did not  have  that                                                               
guidance.   She  added since  there is  not a  central governance                                                               
board, but  there is long-term  planning, perhaps  somewhere down                                                               
the road the new title could be integrated.                                                                                     
                                                                                                                                
2:15:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND  asked  which   ferries  did  not  allow                                                               
driving on and off.                                                                                                             
                                                                                                                                
MR. CROCKER replied all of them allowed driving on and off.                                                                     
                                                                                                                                
REPRESENTATIVE DRUMMOND asked, in Amendment  1, how much the word                                                               
"intermodal"  would apply  to other  modes  of transportation  as                                                               
discussed.                                                                                                                      
                                                                                                                                
MR.  CROCKER  replied "intermodal"  referred  to  where the  AMHS                                                               
connected to another highway system.                                                                                            
                                                                                                                                
2:17:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  replied   the  intermodal  plans  existed                                                               
already;  the  addition of  the  short-term  and long-term  plans                                                               
added to them.                                                                                                                  
                                                                                                                                
2:17:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  commented that  Amendment 3  would lead                                                               
to distraction  and confusion, as  the word  "Transportation" was                                                               
taken out intentionally.                                                                                                        
                                                                                                                                
2:18:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE maintained  the  board  title would  still                                                               
have the  word "marine" in it.   He then asked  which roads there                                                               
were  in Tenakee,  as that  seemed not  to fit  in the  "highway"                                                               
definition.                                                                                                                     
                                                                                                                                
CHAIR HOPKINS maintained his objection.                                                                                         
                                                                                                                                
2:19:22 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives McCabe  and Cronk                                                               
voted  in  favor  of  Amendment  3.    Representatives  Drummond,                                                               
Hannan,  Hopkins, and  Spohnholz  voted against  it.   Therefore,                                                               
Amendment 3 failed by a vote of 2 - 4.                                                                                          
                                                                                                                                
2:20:20 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS opened public testimony on HB 63.                                                                                 
                                                                                                                                
2:20:33 PM                                                                                                                    
                                                                                                                                
NANCY BIRD  testified in support of  HB 63.  Ms.  Bird said while                                                               
the new board  wouldn't be able to fix all  the challenges facing                                                               
the  AMHS, an  experienced  board was  overdue  and much  needed,                                                               
primarily  to provide  professional and  non-political advice  on                                                               
how to run a successful operation.   There must be secure funding                                                               
several years ahead, she stated, and long-term capital funding.                                                                 
                                                                                                                                
2:21:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES said  the AMHS has had many  boards, but HB
63 had  teeth in it  and would  make things more  sustainable for                                                               
the state of Alaska.                                                                                                            
                                                                                                                                
2:22:39 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS closed public testimony.                                                                                          
                                                                                                                                
2:22:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN moved  to report CS/HB63 as  amended out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal  notes.  There  being  no  objection,  HB  63  moved  from                                                               
committee.                                                                                                                      
                                                                                                                                
2:23:35 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:23 p.m. to 2:25 p.m.                                                                       
                                                                                                                                
^PRESENTATION(S): Alaska Marine Highway System                                                                                  
         PRESENTATION(S): Alaska Marine Highway System                                                                      
                                                                                                                                
2:25:51 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS  announced that the  final order of  business would                                                               
be  a   presentation  on  Alaska  Marine   Highway  System  ferry                                                               
replacement.                                                                                                                    
                                                                                                                                
2:26:13 PM                                                                                                                    
                                                                                                                                
ROB CARPENTER, Deputy  Commissioner, Department of Transportation                                                               
& Public  Facilities, shared  the DOT&PF  didn't presume  to make                                                               
any determinations  for the restructured board  before they'd had                                                               
a chance  to meet, assemble,  and do their  deliberative process.                                                               
He offered a discussion of  a timeline for vessel replacement but                                                               
said it would probably be a  longer discussion.  How the new plan                                                               
would impact capital  budget, would the new  plan reflect working                                                               
group  recommendations,   and  a  cost  estimate   of  continuing                                                               
overhaul  and maintenance  of the  existing fleet  would also  be                                                               
addressed, he  stated.  A  hypothetical plan would be  put forth,                                                               
he shared, but  it was not endorsed by the  DOT&PF, he said, just                                                               
a sample given the direction of the new board.                                                                                  
                                                                                                                                
MR.  CARPENTER  shared the  AMHS  reshaping  workgroup (RWG)  was                                                               
established  in   January  2020   with  the  purpose   of  making                                                               
recommendations on the future finances  and service levels of the                                                               
AMHS.   Analysis in the  AMHS Economic Reshaping Report  would be                                                               
considered.   Duties of the RWG  were to define the  future needs                                                               
and purpose of the AMHS, with  the goal of ensuring residents had                                                               
access  to   essential  transportation  services   among  Alaskan                                                               
coastal  communities.    The  RWG report  was  submitted  to  the                                                               
governor on October 2nd, 2020, he shared.                                                                                       
                                                                                                                                
2:30:33 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:30 p.m. to 2:31 p.m.                                                                       
                                                                                                                                
2:31:25 PM                                                                                                                    
                                                                                                                                
MR. CARPENTER  shared a  key takeaway from  the RWG  report (page                                                               
five, paragraph two):   the [AMHS] operates an  aging ferry fleet                                                               
that is costly  to maintain and operate, poorly  matched to ferry                                                               
route  needs,  with limited  flexibility  to  adjust to  changing                                                               
circumstances."    In  terms  of underlying  themes  in  the  RWG                                                               
report,  Deputy  Commissioner  Carpenter   cited  the  value  and                                                               
importance  of the  AMHS to  coastal communities  and the  state;                                                               
improvement  of reliability;  reduction in  costs and  raising of                                                               
revenue; stabilization  of budget; strengthening  governance; and                                                               
improving  short  and   long-term  planning.    As   far  as  RWG                                                               
recommendations,   he   cited    strengthening   of   governance;                                                               
improvement  of reliability;  stabilization  of budget  planning;                                                               
reduction  of   system  costs;   renegotiation  of   union  labor                                                               
agreements;    increasing    revenue;   and    leveraging    road                                                               
infrastructure.                                                                                                                 
                                                                                                                                
2:33:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES stated  "dependability" should  be at  the                                                               
top of the list.                                                                                                                
                                                                                                                                
DEPUTY COMMISSIONER  CARPENTER agreed; said "reliability"  was on                                                               
there and that was what it meant.                                                                                               
                                                                                                                                
2:34:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked how  many labor agreements there were                                                               
and how often they were renegotiated.                                                                                           
                                                                                                                                
DEPUTY  COMMISSIONER  CARPENTER  said there  were  three  unions:                                                               
MM&P,  Marine  Engineering  Beneficial  Association  (MEBA),  and                                                               
Inland  Boatman's  Union (IBU);  and  that  they were  negotiated                                                               
every three years.   Currently MM&P and MEBA  were in preliminary                                                               
negotiations;  IBU came  up for  negotiation next  year for  2023                                                               
budget.  The negotiations were headed up by the DOA, he added.                                                                  
                                                                                                                                
REPRESENTATIVE HANNAN asked how many  grievances from IBU and how                                                               
many had been made right.                                                                                                       
                                                                                                                                
2:37:17 PM                                                                                                                    
                                                                                                                                
CAPTAIN  JOHN  FALVEY,  General Manager,  Alaska  Marine  Highway                                                               
System,  replied  there had  been  quite  a few  grievances;  how                                                               
unions  interpret   complex  contracts   versus  how   the  state                                                               
interprets them was the crux.                                                                                                   
                                                                                                                                
REPRESENTATIVE  HANNAN asked  if the  grievances were  being made                                                               
right.                                                                                                                          
                                                                                                                                
CAPT. FALVEY replied about 50%.                                                                                                 
                                                                                                                                
2:38:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE   asked  how   many  grievances   went  to                                                               
arbitration.                                                                                                                    
                                                                                                                                
CAPT. FALVEY replied they did not go to arbitration very often.                                                                 
                                                                                                                                
REPRESENTATIVE MCCABE said airlines  negotiated under the Railway                                                               
Labor  Act; IBU  was  not allowed  to do  this  and could  strike                                                               
during contract negotiations.                                                                                                   
                                                                                                                                
2:41:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES  added striking  was  a  last resort  when                                                               
unions  were not  being heard;  they did  not want  to be  out of                                                               
work.                                                                                                                           
                                                                                                                                
CHAIR HOPKINS reiterated a strike  could only take place after an                                                               
impasse  had  been  reached  and   several  official  steps  gone                                                               
through.                                                                                                                        
                                                                                                                                
2:42:53 PM                                                                                                                    
                                                                                                                                
MR.  CARPENTER spoke  to addressing  the RWG  recommendations the                                                               
DOT&PF   was  "striving   toward:"     in   terms  of   improving                                                               
reliability, the Tustumena Replacement  Vessel (TRV) had received                                                               
a $8.6m  Federal Earmark applied  toward final design,  which was                                                               
currently    60%   complete,    and    needed   a    construction                                                               
manager/general contractor brought in to  bring it up to 100%, at                                                               
which  point  it  could  go  to  construction  as  there  was  no                                                               
construction funding plan in place.                                                                                             
                                                                                                                                
2:44:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES  said she  thought there was  federal match                                                               
money, as  well as state  money in the Short-Term  Incentive Plan                                                               
(STIP) set aside for the TRV.                                                                                                   
                                                                                                                                
MR.  CARPENTER replied  the TRV  was programmed  in the  STIP and                                                               
there was federal match money set  aside for it, but no money had                                                               
been  put behind  it yet,  mostly  because it  wasn't ready  yet.                                                               
When it was ready it would be  determined if it would be paid for                                                               
out of the STIP,  by way of a build grant, or  some other type of                                                               
creative financing, he stated.                                                                                                  
                                                                                                                                
REPRESENTATIVE  STUTES  asked  whether  the intent  was  to  sole                                                               
source the construction of the Tustumena.                                                                                       
                                                                                                                                
MR. CARPENTER  replied the intent was  not to sole source  but to                                                               
obtain  a federally  funded,  competitive bid,  and  to make  the                                                               
price tag more palatable.                                                                                                       
                                                                                                                                
REPRESENTATIVE STUTES asked what the  state's share would be on a                                                               
$250m vessel.                                                                                                                   
                                                                                                                                
MR. CARPENTER replied $22.5m, approximately 10%.                                                                                
                                                                                                                                
REPRESENTATIVE  STUTES  asked  if   the  rest  would  be  federal                                                               
dollars; and spread over how much time.                                                                                         
                                                                                                                                
MR. CARPENTER replied yes; and  unless there were some techniques                                                               
such  as advanced  construction, it  would be  a big  hit to  the                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  STUTES asked  when the  DOT&PF estimated  the new                                                               
Tustumena  might  be completed;  and  was  the plan  to  continue                                                               
forward momentum.                                                                                                               
                                                                                                                                
MR.  CARPENTER replied  about a  year; and  to be  determined but                                                               
hopefully yes.                                                                                                                  
                                                                                                                                
2:50:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN asked if there  was $22.5m currently in the                                                               
vessel replacement fund.                                                                                                        
                                                                                                                                
MR. CARPENTER replied he had said  there was $22.5m set aside for                                                               
match.                                                                                                                          
                                                                                                                                
REPRESENTATIVE HANNAN  asked what about  the state's take  on the                                                               
fast  ferries' sale  and whether  money  ended up  in the  vessel                                                               
replacement fund.                                                                                                               
                                                                                                                                
MR. CARPENTER replied  the state's take was $5.6m  and the entire                                                               
amount would go into the vessel replacement fund.                                                                               
                                                                                                                                
2:52:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  imparted federal money would  be coming                                                               
in   as  the   President  Joe   Biden  administration   has  made                                                               
transportation  infrastructure  a  top   priority  and  spoke  to                                                               
capital funds being  included for the new Tustumena  to this end;                                                               
she  mentioned  there was  at  least  one  "swing voter"  in  the                                                               
Congressional  delegation who  could  perhaps  ensure Alaska  did                                                               
well  in  that  process.   She  expressed  reluctance  to  spread                                                               
capital money over  multiple fiscal years and used  as an example                                                               
an Engineering  building at the University  Alaska Fairbanks that                                                               
was partially funded one year  and then there were fiscal issues,                                                               
but  a  massive  infrastructure  package would  create  a  unique                                                               
window of  opportunity, she stated.   She asked about  the design                                                               
and how long it took to build a ferry like the Tustumena.                                                                       
                                                                                                                                
MR. CARPENTER  said he  thought it  was a  four-year construction                                                               
window once construction began.                                                                                                 
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ looked  to clarify  if it  meant within                                                               
four years or that it would take the entire four years.                                                                         
                                                                                                                                
MR. CARPENTER  replied the project would  take approximately four                                                               
years.                                                                                                                          
                                                                                                                                
2:54:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  asked if  the price was  $5m total  or $5m                                                               
apiece for the two fast ferries.                                                                                                
                                                                                                                                
MR. CARPENTER replied it was $5.6 total.                                                                                        
                                                                                                                                
CAPT.  FALVEY  said  the  two ferries  sold  for  $5,174,444  for                                                               
ferries,  that there  was $240K  in  storm damage  for which  the                                                               
contractor took  60% responsibility,  leaving the state  with 40%                                                               
responsibility.   Engines were sold,  storm damage  included, for                                                               
$371K.  Close to $5.6m, he stated.                                                                                              
                                                                                                                                
REPRESENTATIVE  MCCABE asked  the original  value of  engines and                                                               
cost of fast ferries.                                                                                                           
                                                                                                                                
CAPT.  FALVEY replied  $68m in  2004 and  2005 for  the two  fast                                                               
ferries; which  were appraised  at $7m  apiece by  an independent                                                               
appraiser;  $3M apiece  for "swing"  engines, which  were sitting                                                               
unused.                                                                                                                         
                                                                                                                                
2:57:24 PM                                                                                                                    
                                                                                                                                
MR.  CARPENTER continued  speaking  to  improved reliability  and                                                               
flexibility with the  mention of adding crew  quarters which were                                                               
90% designed and currently programmed in STIP.                                                                                  
                                                                                                                                
REPRESENTATIVE HANNAN  asked what "currently programmed  in STIP"                                                               
meant.                                                                                                                          
                                                                                                                                
MR.  CARPENTER  replied  a  desire for  crew  quarters  had  been                                                               
programmed in  the STIP, money  had been planned;  but evaluation                                                               
of effectiveness and cost benefit was still underway.                                                                           
                                                                                                                                
2:59:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  asked whether  addition of  quarters would                                                               
make those vessels cross-Gulf ferries.                                                                                          
                                                                                                                                
MR. CARPENTER  replied no,  they were not  designed for  the open                                                               
ocean;  the  quarters  would just  mean  vessels  could  complete                                                               
routes they currently cannot.                                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE said  he was  interested in  talking about                                                               
contracts with  Allen Marine and Goldbelt;  about scheduling, for                                                               
instance, why the car ferries  go to Tenakee, which "doesn't have                                                               
any  roads," or  whether  it  would be  better  to contract  with                                                               
someone else; and  why Skagway had to contract  with Allen Marine                                                               
when  a ferry  broke down/why  the AMHS  could "just  do it  as a                                                               
matter of course."                                                                                                              
                                                                                                                                
MR. CARPENTER said  it had been determined  imprudent to contract                                                               
a catamaran  when the  Matanuska had  been set  to sail  the next                                                               
day; that  passengers had  been alerted  and that  "maybe Skagway                                                               
jumped the gun."                                                                                                                
                                                                                                                                
3:02:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DRUMMOND asked  that  a history  on Alaska  Class                                                               
Ferries and  crew quarter  information be  made available  at the                                                               
next House Transportation Standing Committee meeting.                                                                           
                                                                                                                                
3:03:03 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 3:03                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
HB 63 - Letter of Support Eric Gucker 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
HB63 - Amendment 1 by Rep Hannan 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
HB 63 - Amendment 2 by Rep McCabe 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
HB 63 - Amendment 3 by Rep McCabe 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
HB 63 Statutes for Reference AS 44.42.050 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
HB 63 DOTPF Fiscal Note 3.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
HB 63
Presentation - AMHS House Transportation Committee 03.18.2021.pdf HTRA 3/18/2021 1:30:00 PM
AMHS Ferry Vessel Replacement, Refurbishment and Planning