Legislature(2021 - 2022)BELTZ 105 (TSBldg)
04/08/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 103 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE TRANSPORTATION STANDING COMMITTEE
April 8, 2021
1:33 p.m.
MEMBERS PRESENT
Senator Robert Myers, Chair
Senator Mike Shower, Vice Chair
Senator Click Bishop
Senator Peter Micciche
Senator Jesse Kiehl
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 103
"An Act repealing the Alaska Marine Transportation Advisory Board;
establishing the Alaska Marine Highway System Operation and
Planning Board; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 103
SHORT TITLE: AMHS OPERATION & PLANNING BOARD
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/10/21 (S) READ THE FIRST TIME - REFERRALS
03/10/21 (S) TRA
03/25/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/25/21 (S) Heard & Held
03/25/21 (S) MINUTE(TRA)
03/30/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
03/30/21 (S) Heard & Held
03/30/21 (S) MINUTE(TRA)
04/08/21 (S) TRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
ANDY MILLS, Special Assistant to the Commissioner
Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 103.
ROB CARPENTER, Deputy Commissioner
Department of Transportation and Public Facilities
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 103.
RACHEL WITTY, Chief Assistant Attorney General
Statewide Section Supervisor
Civil Division
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Answered legal questions on SB 103.
ACTION NARRATIVE
1:33:09 PM
CHAIR ROBERT MYERS called the Senate Transportation Standing
Committee meeting to order at 1:33 p.m. Present at the call to
order were Senators Kiehl, Shower, Micciche, Bishop, and Chair
Myers.
SB 103-AMHS OPERATION & PLANNING BOARD
1:33:49 PM
CHAIR MYERS announced the consideration of SENATE BILL NO. 103 "An
Act repealing the Alaska Marine Transportation Advisory Board;
establishing the Alaska Marine Highway System Operation and
Planning Board; and providing for an effective date."
1:34:16 PM
CHAIR MYERS moved to adopt Amendment 1, work order 32-GS1649\A.12:
32-GS1649\A.12
Fisher
4/5/21
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 103
Page 1, line 1, following "Act":
Insert "relating to the duties of the Department of
Transportation and Public Facilities;"
Page 1, line 2, following "Board;"
Insert "relating to the powers and duties of the
Alaska Marine Highway System Operation and Planning
Board;"
Page 1, line 6, through page 2, line 3:
Delete all material and insert:
"Sec. 19.65.011. Short-term and 30-year
comprehensive [COMPREHENSIVE] long-range plan. The
Department of Transportation and Public Facilities, in
consultation with the Alaska Marine Highway System
Operation and Planning [TRANSPORTATION ADVISORY] Board,
shall prepare a short-term and a 30-year comprehensive
long-range plan for the development and improvement of
the Alaska marine highway system. The department [AND
SHALL], in consultation with the Alaska Marine Highway
System Operation and Planning [TRANSPORTATION ADVISORY]
Board, shall revise and update the short-term
comprehensive plan annually and the 30-year
comprehensive long-range plan [, REVISE AND UPDATE THE
PLAN] at least once every five years. The department
shall submit the short-term and 30-year comprehensive
long-range plans [PLAN] and revisions and updates of the
plans [PLAN] to the senate secretary and chief clerk of
the house of representatives and shall notify the
legislature that the plans are available."
Page 4, lines 19 - 25:
Delete all material and insert:
"(d) Every five years, the board shall transmit to
the governor by September 1 a report containing progress
on, revisions of, and updates to the 30-year
comprehensive long-range plan prepared under
AS 19.65.011. The board shall include in the report
marine transportation system objectives, planning
assumptions, a timeline for major operations milestones,
and new initiatives. When preparing the report, the
board shall pay special attention to initiatives that
provide strategic and operational guidance for
transportation systems of a similar size and
complexity."
SENATOR SHOWER objected for discussion purposes.
1:34:24 PM
CHAIR MYERS explained that Amendment 1 would define long-term plan
as 30 years based on the 30 to 40-year life span of AMHS vessels.
Further, Amendment 1 would extend the update for the long-range
comprehensive plan to once every five years. The rationale behind
this change was to allow time for the plan to work. Finally, it
would make a technical change by specifying that the plan updates
shall be submitted to the Senate Secretary and Chief Clerk's
office rather than to submit it to the legislature.
1:35:56 PM
SENATOR KIEHL asked if these changes would correspond to DOTPF's
planning cycles.
1:36:22 PM
ANDY MILLS, Special Assistant to the Commissioner, Department of
Transportation and Public Facilities (DOTPF), Juneau, Alaska,
responded that 30 years was consistent with the department's long-
range plan schedule.
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 1 was adopted.
1:37:03 PM
SENATOR SHOWER moved to adopt Amendment 2, work order 32-
GS1649\A.7.
[This amendment is 53 pages in length and can be found online at
http://www.akleg.gov/basis].
CHAIR MYERS objected for discussion purposes.
1:37:06 PM
SENATOR SHOWER explained Amendment 2. He stated that the committee
previously discussed whether it was time to move AMHS's management
from the Department of Transportation and Public Facilities
(DOTPF) to a corporate structure. He pointed out that Amendment 2
was 53 pages in length, which shows the complexity in creating a
corporate structure. Although he highlighted Amendment 2 for
discussion purposes, he suggested that the best way to manage this
significant change would be to introduce a separate bill to
address it.
1:37:57 PM
SENATOR SHOWER highlighted that the costs associated with AMHS are
already He highlighted that the state is already absorbing the
costs associated with AMHS because AMHS brings in an estimated $48
million in revenue but the state pays $59 million to subsidize the
system. One advantage of the corporate structure is to have a
chief executive officer (CEO) make decisions. Another benefit
could be cost savings. For example, the Inter-Island Ferry
Authority operates with 70 percent revenue and 30 percent
government subsidy. Further, a corporate structure would use a hub
and spoke model to enhance decision-making. As previously
discussed, airlines don't run empty planes. Thus, AMHS could
reconsider its service level and consider providing semi-monthly
service instead of weekly service since ridership declines. In
addition, the state must be cautious and ensure it does not
compete with private-sector freight companies. He related that the
state could change direction with the Coronavirus Aid, Relief, and
Economic Security Act (CARES) funding and other proposals under
consideration by the legislature. For example, it could put AMHS's
management under a board with the ability and experience to be
responsive.
1:41:00 PM
SENATOR SHOWER acknowledged that Alaska needs a ferry system, but
AMHS must be more responsive since Alaska cannot sustain the
system in its current form.
1:41:31 PM
SENATOR BISHOP stated that then-Governor Egan's 1962
Transportation Plan included road-to-road connections to reduce
the number of mainline ferry runs. He emphasized the need to build
a road from Juneau [to Haines].
1:42:07 PM
SENATOR MICCICHE offered his view that the Operation and Planning
Board (OPB) could assist the state in making decisions such as
whether to create a corporation. SB 103 would create OPB and its
membership could provide the necessary expertise.
1:43:00 PM
SENATOR SHOWER recalled that both union representatives agreed
during public testimony that it was time to move AMHS from DOTPF's
management to a corporate management structure. He characterized
SB 103 as a step in the right direction.
1:44:02 PM
SENATOR KIEHL stated that he would not delve into the details
since it appeared that Amendment 2 will be withdrawn. He agreed
that the corporate structure was a good direction for AMHS. He
pointed out that DOTPF agreed that OPB should be given sufficient
authority to make a difference. He offered his support for
structuring AMHS as a public corporation to help the state achieve
long-term planning and better investment decisions for the ferry
system.
1:45:24 PM
CHAIR MYERS echoed that SB 103 would take the state in the right
direction. He acknowledged that it might take time to set up a
corporate structure.
1:45:48 PM
SENATOR SHOWER withdrew Amendment 2.
1:46:13 PM
SENATOR KIEHL moved to adopt Amendment 3, work order 32-
GS1649\A.5:
32-GS1649\A.5
Fisher
4/2/21
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 103
Page 2, line 13:
Delete "ten"
Insert "eight"
Page 2, line 15:
Delete "three"
Insert "two"
Page 2, line 17:
Delete "three"
Insert "two"
Page 5, lines 5 - 13:
Delete all material and insert:
"THE ALASKA MARINE HIGHWAY SYSTEM OPERATION AND
PLANNING BOARD; STAGGERED TERMS. (a) Notwithstanding
AS 19.65.220(b), enacted by sec. 2 of this Act, and
AS 39.05.055, the governor shall appoint the initial
public members of the Alaska Marine Highway System
Operation and Planning Board to the seats established
under AS 19.65.220(a)(2), enacted by sec. 2 of this Act,
to staggered terms as follows:
(1) two members shall be appointed to serve
one-year terms;
(2) three members shall be appointed to serve
two-year terms; and
(3) three members shall be appointed to serve
three-year terms."
CHAIR MYERS objected for discussion purposes.
1:46:18 PM
SENATOR KIEHL explained that Amendment 3 would change OPB from an
11-member board to a 9-member board because larger boards can be
unwieldly. It would remove several public members and reduce the
areas of expertise from three to two, which would make the board a
little leaner.
1:47:21 PM
ROB CARPENTER, Deputy Commissioner, Department of Transportation
and Public Facilities (DOTPF), Juneau, Alaska, responded that
DOPPF would support Amendment 3. In its internal discussions, he
related that DOTPF recognized that it would be more challenging to
recruit 11 members to serve. He agreed it was harder for larger
boards to reach a consensus.
1:48:03 PM
SENATOR MICCICHE expressed concern that Amendment 3 would reduce
board expertise from three areas to two, which will remove an area
of expertise from the board. He said he supports bringing in
private sector members with specific expertise since they could
ultimately make better decisions for the system. He suggested a
friendly amendment, on page 2, lines 15 and 17, to read "three"
members to retain the expertise in marine operating, maintenance,
or vessel construction and the expertise in marine-related
business; and on page 2, line 13 to reduce the total public
members from 10 to 8. He maintained he does not support removing
individuals with business and technical skills from the two
membership categories.
1:49:42 PM
SENATOR SHOWER asked whether it would affect board membership in
subparagraphs (A) and (B).
1:50:01 PM
At ease
1:50:39 PM
CHAIR MYERS reconvened the meeting.
1:50:43 PM
SENATOR SHOWER asked how Amendment 3 would affect Amendment 5, not
yet offered, which would also change OPB's board membership.
1:50:54 PM
SENATOR KIEHL suggested that the committee take up the amendments
in order. He said he did not intend to offer a single amendment to
address OPB's board members.
1:51:06 PM
SENATOR MICCICHE suggested the committee hold the comparative
discussion once Amendment 5 was offered.
SENATOR KIEHL agreed to do so.
1:51:40 PM
SENATOR BISHOP asked if the sponsor of Amendment 3 considered that
some members might not be able to attend all the OPM's meetings.
He expressed concern that reducing the number of board members
would also result in a loss of expertise of the absent members.
1:52:38 PM
SENATOR KIEHL expressed his willingness to consider the language
in Amendment 3 as a potential amendment to Amendment 5. He
withdrew Amendment 3.
1:53:17 PM
SENATOR SHOWER moved to adopt Amendment 4, work order 32-
GS1649\A.8:
32-GS1649\A.8
Fisher
4/2/21
AMENDMENT 4
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 103
Page 2, line 25, following "industry":
Insert "; and
(3) two nonvoting members from the
legislature, one of whom shall be appointed by the
president of the senate and one by the speaker of the
house of representatives"
Page 2, line 26, through page 3, line 3:
Delete all material and insert:
"(b) The public members of the board appointed
under (a)(2) of this section shall serve staggered
three-year terms. If a vacancy arises for a seat
appointed under (a)(2) of this section, the governor
shall, within 30 days after the vacancy arises, appoint
a person to serve the balance of the unexpired term. A
person appointed to fill the balance of an unexpired
term shall serve on the board from the date of
appointment until the expiration of the term.
(c) Board members appointed under (a)(2) of this
section serve at the pleasure of the governor, and
members appointed under (a)(3) of this section serve at
the pleasure of the appointing authority; however, a
public member may be removed by a majority vote of the
board if the member misses more than two meetings in a
calendar year and has not been previously excused or for
other good cause."
Page 3, line 5, following the first occurrence of "the":
Insert "voting"
Page 3, line 6, following the third occurrence of "the":
Insert "voting"
Page 3, line 10, following the second occurrence of
"the":
Insert "voting"
Page 5, lines 5 - 8:
Delete all material and insert:
"THE ALASKA MARINE HIGHWAY SYSTEM OPERATION AND
PLANNING BOARD; STAGGERED TERMS. (a) Notwithstanding
AS 19.65.220(b), enacted by sec. 2 of this Act, and
AS 39.05.055, the governor shall appoint the initial
public members of the Alaska Marine Highway System
Operation and Planning Board to the seats established
under AS 19.65.220(a)(2), enacted by sec. 2 of this Act,
to staggered terms as follows:"
CHAIR MYERS objected for discussion purposes.
1:53:19 PM
SENATOR SHOWER explained that Amendment 4 would add two nonvoting
members of the legislature to OPB, one appointed by the Senate
President and the other appointed by the Speaker of the House.
These nonvoting members would liaise between the board and the
legislature to address funding and other relevant issues.
1:53:47 PM
CHAIR MYERS related his understanding that Amendment 4 would add
two nonvoting legislative members, but Amendment 5 would add
legislative appointees as voting members.
1:54:19 PM
SENATOR KIEHL clarified that the distinction in Amendment 5 was
that the legislature's presiding officers would appoint two public
members to serve on the board; however, these two public member
appointees would not be legislators.
CHAIR MYERS thanked him for the clarification. He solicited
DOTPF's comments.
1:54:39 PM
MR. CARPENTER expressed concern about the separation of powers. He
referred to a Legislative Legal Memo on the separation of powers
[dated April 6, 2021, from Sandon M. Fisher to Representative
Louise Stutes]. He related that the Department of Law was online
to discuss it further.
1:55:26 PM
SENATOR SHOWER interjected that the legislative members would
merely act as ex officio members to bring back information to the
legislature. He related his understanding that the issue Mr.
Carpenter described would only arise if the legislators were
voting members.
1:55:52 PM
RACHEL WITTY, Chief Assistant Attorney General - Statewide Section
Supervisor, Civil Division, Department of Law (DOL), Anchorage,
Alaska, explained that some precedent existed for legislators to
serve on advisory boards or task forces so long as these members
did not have an actual role in executing or administering the law.
There were also attorneys general opinions that agreed with the
Legislative Legal Services opinion about not appointing
legislators or giving them voting powers.
1:56:42 PM
SENATOR SHOWER referred to a memo from Legislative Legal Services
[No specific reference was given; Original punctuation provided].
He read:
The fact that legislators serve on the board even as
nonvoting members may raise dual office holding a
separation of powers issue. The Alaska Constitution
prohibits dual office holding and restricts the
legislator from holding certain positions. The state
government during the legislator's term of office for a
period of one year after a legislator's term expires ?.
1:57:11 PM
SENATOR SHOWER said he wanted the record to reflect that the
committee investigated whether legislators could participate on
boards and determined that the proposed language would not raise a
constitutional issue as long as they were nonvoting members.
CHAIR MYERS pointed out Ms. Witty previously commented that
precedent exists for legislators to serve on boards as nonvoting
members. He said it seems as though this would follow the standard
procedure of the legislature exercising oversight powers by
serving as a nonvoting member on a board but not possessing
executive powers.
1:58:02 PM
At ease
1:58:37 PM
CHAIR MYERS reconvened the meeting and withdrew his objection.
There being no further objection, Amendment 4 was adopted.
1:59:01 PM
SENATOR KIEHL moved to adopt Amendment 5, work order 32-
GS1649\A.6:
32-GS1649\A.6
Fisher
4/2/21
AMENDMENT 5
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 103
Page 2, line 9, through page 3, line 3:
Delete all material and insert:
"Sec. 19.65.220. Board composition. (a) The
membership of the board consists of
(1) the commissioner of transportation and
public facilities, or the commissioner's designee;
(2) 10 public members who are residents of
the state and meet the following criteria:
(A) three members with experience in marine
operating, maintenance, or vessel construction;
(B) three members with business experience,
at least one of whom has experience in marine-related
business;
(C) one member who represents an Alaska
Native organization or tribe;
(D) one member who represents a community
served by the Alaska marine highway system;
(E) one member, who may be retired, of a
recognized union that represents employees of the Alaska
marine highway system;
(F) one member with experience in
restructuring businesses in the travel industry.
(b) The public member seats described in (a)(2) of
this section shall be filled as follows:
(1) the president of the senate shall appoint
two members who are each qualified under (a)(2)(A), (B),
(C), (D), (E), or (F) of this section; members appointed
under this paragraph serve at the pleasure of the
president of the senate;
(2) after the appointments have been made
under (1) of this subsection, the speaker of the house
shall appoint two members who are each qualified to fill
one of the remaining seats under (a)(2)(A), (B), (C),
(D), (E), or (F) of this section; members appointed
under this paragraph serve at the pleasure of the
speaker of the house of representatives;
(3) after the appointments have been made under
(1) and (2) of this subsection, the governor shall appoint
six members who are qualified to fill the remaining seats
under (a)(2)(A), (B), (C), (D), (E), or (F) of this section;
members appointed under this paragraph serve at the pleasure
of the governor.
(c) The public members of the board shall serve
staggered three-year terms. If a vacancy arises on the board,
the president of the senate, the speaker of the house of
representatives, or the governor, as applicable, shall,
within 30 days after the vacancy arises, appoint a qualified
person to serve the balance of the unexpired term. However,
if more than one seat on the board is vacant at the same
time, then appointments to any vacant seat shall be made by
the president of the senate for the number of members, if
any, necessary to bring the total number of members of the
board appointed by the president of the senate to two; the
speaker of the house shall then appoint the number of
members, if any, necessary to bring the total number of
members of the board appointed by the speaker of the house to
two; the governor shall then appoint the number of members,
if any, necessary to bring the total number of members of the
board appointed by the governor to six. A person appointed to
fill the balance of an unexpired term shall serve on the
board from the date of appointment until the expiration of
the term.
(d) A majority of the membership of the board may
remove a public member if that member misses more than two
meetings in a calendar year and has not been previously
excused or for other good cause."
Page 5, lines 5 - 13:
Delete all material and insert:
"THE ALASKA MARINE HIGHWAY SYSTEM OPERATION AND
PLANNING BOARD; STAGGERED TERMS. (a) Notwithstanding
AS 19.65.220, enacted by sec. 2 of this Act, and
AS 39.05.055, the president of the senate, the speaker
of the house of representatives, and the governor, as
applicable, shall appoint the initial public members of
the Alaska Marine Highway System Operation and Planning
Board to the seats established under AS 19.65.220(a)(2),
enacted by sec. 2 of this Act, to staggered terms as
follows:
(1) the president of the senate shall appoint
(A) one member to serve a one-year term; and
(B) one member to serve a three-year term;
(2) after the appointments made under (1) of
this subsection, the speaker of the house of
representatives shall appoint
(A) one member to serve a one-year term; and
(B) one member to serve a three-year term;
(3) after the appointments made under (1) and
(2) of this subsection, the governor shall appoint
(A) two members to serve a one-year term;
(B) three members to serve a two-year term;
and
(C) one member to serve a three-year term."
CHAIR MYERS objected for discussion purposes.
1:59:07 PM
SENATOR KIEHL explained that Amendment 5 would take a slightly
different approach. Amendment 5 would direct the presiding
officers of the legislature to appoint several public members, who
are not legislators, to serve as voting members on OPB. He
recalled at least one existing board has legislators as voting
members, although he could not recall which one.
CHAIR MYERS suggested that perhaps he was thinking of the
redistricting board.
SENATOR KIEHL stated that SB 103 would establish OPB as an
advisory board with every member serving at the governor's
pleasure. He expressed concern that a governor, serving a single
term, could replace the entire board, interfering with the desired
goal to achieve long-term planning. Since OPB is an advisory
board, the legislature's presiding officers could appoint several
members, he said. In doing so, it would provide stability to the
board.
2:01:24 PM
CHAIR MYERS stated that governors are elected every four years but
the legislature convenes every two years, with potentially new
presiding officers. He expressed concern that this might move the
stability of OPB in the wrong direction. Further, one finding of
AMHS's work group was to remove politics from AMHS. He expressed
concern that this could interject an extra level of politics into
the board.
2:02:32 PM
SENATOR KIEHL stated that it was not possible to avoid politics
altogether. Even though presiding officers will change, it could
still have the effect of stabilizing the board, he said. He
wondered which approach was best, whether appointees should be
members with competing interests who could work towards a common
goal or if a single entity should appoint all the members of OPB.
SENATOR SHOWER asked how Amendments 4 and 5 would mesh.
2:04:07 PM
SENATOR MICCICHE explained that Amendment 4 would change how other
seats were appointed.
2:04:25 PM
CHAIR MYERS concurred.
2:04:30 PM
SENATOR SHOWER asked if presiding officers' appointments would
change under Amendment 5.
CHAIR MYERS answered that each presiding officer would appoint two
members to OPB.
2:04:51 PM
SENATOR MICCICHE related his understanding that Amendment 5 would
increase the board membership to 13 members, with two nonvoting
legislative members.
SENATOR SHOWER said he was still unsure of the overall effect of
the amendments.
CHAIR MYERS explained the difference between the two amendments.
He stated that Amendment 4 would add two legislative members as
nonvoting members to OPB. Amendment 5 would direct the presiding
officers from each body to appoint two public members from each
body for a total of four public members with voting privileges.
The overall effect is that the legislature would appoint six OPB
members, four of whom could vote and the governor would appoint
six members to OPB who would not have voting privileges, he said.
2:05:51 PM
SENATOR KIEHL explained that Amendment 4 would add two nonvoting
legislative members to OPB. Amendment 5 would not affect the
nonvoting members. It would merely change who will appoint four of
the 11 voting members.
SENATOR SHOWER said he appreciated the clarification.
2:06:20 PM
SENATOR MICCICHE moved to adopt [Conceptual Amendment 1 to]
Amendment 5, such that [Sec. 19.65.220. Board composition (a)(2)]
(C) would read, "Two members who represent communities served by
the Alaska Marine Highway System, one of which would be a member
who represents an Alaska Native organization; eliminate
subparagraph (D), and [renumber] subparagraph (F).
SENATOR MICCICHE explained that the committee previously discussed
the value of having an Alaska Native organization represented on
the board. However, the Alaska Native board member should also
represent a community served by AMHS.
SENATOR KIEHL asked whether this would reduce the total board
membership to nine members.
2:07:39 PM
SENATOR MICCICHE answered no. He explained that subparagraph (C)
would add two members representing communities served by the
Alaska Marine Highway System, one of whom would be a person
representing an Alaska Native organization.
CHAIR MYERS asked if subparagraph (E) would remain.
SENATOR MICCICHE confirmed that subparagraphs (E) and (F) would
not be deleted but would be relettered as subparagraphs (D) and
(E).
SENATOR SHOWER related his understanding that subparagraph (D)
language would fold into subparagraph (C).
2:08:28 PM
SENATOR KIEHL clarified that the language in subparagraph (D) to
add a member [who represents a community served by AMHS] would be
folded into subparagraph (C), which would add two additional board
members [who represents an Alaska Native organization or tribe].
He asked whether the language in subparagraph (F) to add one
member [with experience in restructuring businesses in the travel
industry] would be deleted.
SENATOR MICCICHE answered no. He stated that the subparagraph (F)
language would remain, but it would be relettered.
SENATOR KIEHL said he agrees with the changes made by Conceptual
Amendment 1 to Amendment 5.
There being no further objection, Conceptual Amendment 1 to
Amendment 5 was adopted.
2:09:06 PM
CHAIR MYERS stated that the committee previously discussed
shrinking the overall board from 10 to 8 public members.
SENATOR KIEHL suggested not doing so at this point.
CHAIR MYERS agreed with his suggestion.
2:09:35 PM
SENATOR MICCICHE asked for clarification on the mechanics of
Amendment 5. He pointed out that members would be appointed in
three areas: [a member representing an Alaska Native organization
or tribe, a union representing AMHS employees, and a member with
experience in restructuring businesses] but the lettering would
change. He referred to the appointments on page 2 of Amendment 5
in paragraphs (2) and (3). He asked if this would create any
issue. He wanted to be sure that people will not try to appoint
members to the same board member positions.
SENATOR KIEHL explained that Amendment 5 would lay out the order
of the initial appointments with each appointing authority making
appointments to fill any vacant positions.
2:11:12 PM
MR. MILLS stated that the Department of Law (DOL) discussed the
legal issues related to the nonvoting members. He expressed
concern about a separation of powers issue and the governor's
constitutional authority related to appointments. He deferred to
Ms. Witty to explain the problem.
2:12:02 PM
MS. WITTY stated that the Department of Law has relied on the
doctrine of separation of powers in several opinions disapproving
the legislature designating appointments to boards and
commissions. The department has taken the position that the
appointment authority is reserved to the governor. This is
distinct from naming in the statute that a specific position in
the legislature will hold that chair, she said. This language
would give the legislature the power to appoint a member, which
the department has opined is reserved to the executive branch
under the Alaska Constitution.
2:12:58 PM
MR. MILLS commented that the department provided a Legislative
Legal Services memo [dated April 6, 2021] from Sandon Fisher,
Legislative Counsel to Representative Stutes] to the House State
Affairs Committee on a related bill on this topic.
2:13:22 PM
SENATOR BISHOP asked if the legislature must approve these
appointments in joint session.
MS. WITTY answered that was the typical process.
2:14:02 PM
At ease
2:16:23 PM
CHAIR MYERS reconvened the meeting.
SENATOR KIEHL, in response to Senator Bishop, offered his belief
that the legislature would not confirm these appointments since
OPB is an advisory board without the ability to promulgate
regulations or issue licenses. Thus, the legislature does not have
the constitutional power to require legislative confirmation. He
highlighted two commissions in which the legislature's presiding
officers appointed public voting members to serve: the Citizens'
Advisory Commission on Federal Areas and the Alaska Minerals
Commission.
2:17:29 PM
SENATOR SHOWER remarked on a separation of powers issue. He
pointed out that half of the Judicial Council's members are
appointed by a nongovernmental body, the Alaska Bar Association.
He offered his view that this probably should be challenged in
court.
2:18:33 PM
CHAIR MYERS pointed out that some amendments the committee will
consider would require OPB to approve plans. He said he was unsure
whether that would raise any separation of powers concerns.
2:19:30 PM
SENATOR KIEHL acknowledged that raises issues to contemplate.
2:19:56 PM
SENATOR MICCICHE suggested that the matter could be addressed
later, if necessary.
CHAIR MYERS agreed.
2:20:33 PM
CHAIR MYERS maintained his objection.
A roll call vote was taken. Senators Kiehl, Shower, Bishop, and
Micciche voted in favor of Amendment 5 and Senator Myers voted
against it. Therefore, Amendment 5, as amended, was adopted by a
4:1 vote.
2:21:12 PM
CHAIR MYERS moved to adopt Amendment 6, work order 32-GS1649\A.11:
32-GS1649\A.11
Fisher
4/2/21
AMENDMENT 6
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 103
Page 2, line 26:
Delete "three-year"
Insert "eight-year"
Page 5, lines 5 - 13:
Delete all material and insert:
"THE ALASKA MARINE HIGHWAY SYSTEM OPERATION AND
PLANNING BOARD; STAGGERED TERMS. (a) Notwithstanding
AS 19.65.220(b), enacted by sec. 2 of this Act, and
AS 39.05.055, the governor shall appoint the initial
public members of the Alaska Marine Highway System
Operation and Planning Board to the seats established
under AS 19.65.220(a)(2), enacted by sec. 2 of this Act,
to staggered terms as follows:
(1) one member shall be appointed to serve a
one-year term;
(2) one member shall be appointed to serve a
two-year term;
(3) two members shall be appointed to serve
three-year terms;
(4) one member shall be appointed to serve a
four-year term;
(5) one member shall be appointed to serve a
five-year term;
(6) two members shall be appointed to serve
six-year terms;
(7) one member shall be appointed to serve a
seven-year term; and
(8) one member shall be appointed to serve an
eight-year term."
SENATOR SHOWER objected for discussion purposes.
2:21:23 PM
CHAIR MYERS explained that Amendment 6 would change OPB board
member terms from three years to eight years to help remove
politics. He stated that if board member terms were to remain at
three years, all OPB's members would lapse during one
gubernatorial term.
SENATOR MICCICHE asked whether the sponsor of Amendment 6 would
consider changing board terms from eight to four years,
considering that these board member terms were staggered. If so,
he could support Amendment 6, he said. He suggested that it could
result in potential board members being unwilling to commit to
serving because it was for such a long period.
2:23:10 PM
SENATOR BISHOP agreed. He expressed concern that it might shrink
the pool of potential candidates.
2:23:30 PM
SENATOR SHOWER directed attention to another amendment, not yet
considered, that would change board terms to five years. He stated
his support to reduce board member terms to less than eight years.
2:24:06 PM
SENATOR MICCICHE moved to adopt Conceptual Amendment 1 to
Amendment 6 to reduce the board terms from eight years to four
years.
CHAIR MYERS objected for discussion purposes.
SENATOR SHOWER acknowledged the goal was to create a nonpolitical
board.
SENATOR MICCICHE offered that creating four-year terms would
provide a healthy mix. It would mean that some of the governor's
appointees would remain once the governor leaves office.
CHAIR MYERS removed his objection.
There being no further objection, Conceptual Amendment 1 to
Amendment 6 was adopted.
CHAIR MYERS solicited Mr. Mill's comments.
2:26:13 PM
MR. MILLS responded that it made sense to increase board member
terms from three to four years to retain members' specialized
skill sets. He related that the administration did not object to
the change.
2:26:51 PM
At ease
2:27:56 PM
CHAIR MYERS reconvened the meeting.
CHAIR MYERS highlighted that the committee needed to consider the
initial staggered terms.
2:28:33 PM
SENATOR MICCICHE suggested that paragraphs (1) through (4) [on
lines 12-15 of Amendment 6] would resolve the staggered terms.
SENATOR MICCICHE suggested that paragraphs (1) through (4) [on
lines 12-15 of Amendment 6] would resolve the staggered terms. He
suggested considering amending Amendment 6 to have two members
serve a one-year term and two members serve a two-year term. He
said once four years passed, the cycle would repeat.
2:29:09 PM
CHAIR MYERS [referred to lines 12 to 19 of Amendment 5]. He
suggested eliminating paragraphs (5) through (8) and changing
board member terms in paragraphs (1) and (2) to two-year terms and
three-year terms in paragraphs (3) and (4).
2:29:57 PM
SENATOR MICCICHE moved to adopt Conceptual Amendment 2 to
Amendment 6.
SENATOR MYERS objected for purposes of discussion.
SENATOR MICCICHE explained Conceptual Amendment 2 to Amendment 6.
He referred to lines 12-15 of Amendment 6, which would read, as
follows:
(1) one member shall be appointed to serve a two-year
term;
(2) one member shall be appointed to serve a two-year
term;
(3) two members shall be appointed to serve three-year
terms;
(4) two members shall be appointed to serve three-year
terms; and to delete paragraphs (5) through (8) on lines
16 through 19.
SENATOR MYERS removed his objection.
There being no further objection, Conceptual Amendment 2 to
Amendment 6 was adopted.
CHAIR MYERS stated that Amendment 6 was before the committee.
SENATOR SHOWER removed his objection.
There being no further objection, Amendment 6, as amended, was
adopted.
2:31:03 PM
SENATOR KIEHL withdrew Amendment 7, [work order 32-GS1649\A.2].
2:31:16 PM
SENATOR BISHOP moved to adopt Amendment 8, work order 32-
GS1649\A.16:
32-GS1649\A.16
Fisher
4/7/21
AMENDMENT 8
OFFERED IN THE SENATE BY SENATOR BISHOP
TO: SB 103
Page 1, line 2, following "Board;":
Insert "relating to the powers and duties of the
Alaska Marine Highway System Operation and Planning
Board;"
Page 3, line 12, following "AS 44.62.310(b)":
Insert "The board shall hold at least one meeting a
year in each of the following:
(1) Southeast Alaska;
(2) Kodiak;
(3) Anchorage."
CHAIR MYERS objected for discussion purposes.
2:31:22 PM
SENATOR BISHOP explained that Amendment 8 would require the board
to hold at least one meeting per year in each of the following
regions: Southeast Alaska, Kodiak, and Anchorage. This language
was identical to the language used by the Board of Fisheries,
which has requirements to hold five meetings per year in five
separate regions of the state. He explained that this would allow
the public more access to provide input and participate at board
meetings. It would also engage board members in communities that
rely on the ferry service.
SENATOR SHOWER asked if allowing members to participate by
teleconference was due to COVID-19.
CHAIR MYERS pointed out that natural disasters like earthquakes
could happen in Alaska.
SENATOR BISHOP answered he was unsure about the Board of Game's
protocol. He deferred to DOL.
2:33:19 PM
CHAIR MYERS solicited a response from DOL as to whether the Board
of Fisheries and the Board of Game members could participate by
teleconference.
MS. WITTY offered to research this and report back to the
committee.
2:33:53 PM
SENATOR MICCICHE explained that the process was in place for
COVID-19. He acknowledged that emergency regulations could address
it if the board encountered something similar.
SENATOR BISHOP wondered what policy OPB would adopt for its
members.
2:34:49 PM
CHAIR MYERS withdrew his objection.
There being no further objection, Amendment 8 was adopted.
2:35:02 PM
MR. CARPENTER asked if the committee might want to add language
"Notwithstanding unmitigated circumstances" or something similar.
SENATOR MICCICHE offered his belief that provisions were made to
allow other boards and commissions to meet. He suggested that
adding the language might let someone define "unmitigated
circumstances."
2:36:12 PM
SENATOR SHOWER directed attention to page 3, line 11 of SB 103,
which read, "Meetings may be conducted by teleconference."
2:36:32 PM
SENATOR SHOWER moved to adopt Amendment 9, work order 32-
GS1649\A.9:
32-GS1649\A.9
Fisher
4/2/21
AMENDMENT 9
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 103
Page 1, line 2, following "Board;"
Insert "relating to the powers and duties of the
Alaska Marine Highway System Operation and Planning
Board and the commissioner of transportation and public
facilities;"
Page 3, lines 20 - 25:
Delete all material and insert:
"Sec. 19.65.280. Powers, duties, and functions. (a)
The commissioner of transportation and public facilities
in conjunction with the board shall, without regard to
political affiliation, solicit, interview, and recruit
the head of the division of marine transportation, who
shall report to and function at the direction of the
board."
CHAIR MYERS objected for discussion purposes.
2:36:40 PM
SENATOR SHOWER explained that Amendment 9 was an attempt to strike
a balance to allow OPB to have more influence over AMHS's
director. The committee previously expressed concern that the
department often ignored the prior board input.
2:37:44 PM
SENATOR MICCICHE asked for the process used to hire the current
director.
MR. CARPENTER explained the current process. He said that as
general manager Captain John Falvey runs AMHS. He envisioned that
DOTPF was having internal discussions on the "head of the division
of marine transportation" position in the commissioner's office.
That person would work collectively with the board and report to
the commissioner's office. He expressed concern with the language
"shall report to and function at the direction of the board" when
AMHS was still technically within the purview of DOTPF and the
commissioner's office. He was unsure how this would work. He
envisioned OPB would have a commissioner designee serving on the
board, and a person who works as a liaison between the board and
the commissioner's office to provide information necessary for the
board to make its decisions.
2:40:08 PM
CHAIR MYERS clarified that the question was how Captain Falvey was
appointed.
MR. CARPENTER answered that Captain Falvey currently serves in an
exempt position at the commissioner's discretion and goes through
the governor's confirmation process.
SENATOR KIEHL stated that Captain Falvey's position historically
has been a deputy commissioner, a division director, and an
executive director of AMHS. He noted that MTAB was formed by then-
Governor Murkowski. Although he prefers this language, Legislative
Legal Services indicated that a board could not hire an executive
branch employee. He stated that he would support this concept.
2:41:51 PM
SENATOR SHOWER asked the record to reflect he contended was that
commissioners could ignore the board; that it was time to do
something different. He expressed concern that the head of the
marine highway system would still work for the commissioner. He
maintained his interest in putting in place a structure that would
allow the board to make decisions. He pointed out that currently,
not the governor appoints every board.
CHAIR MYERS solicited a response from Ms. Witty.
MS. WITTY offered to research this and report back to the
committee.
2:44:48 PM
CHAIR MYERS withdrew his objection.
2:45:02 PM
SENATOR MICCICHE asked the sponsor to consider tabling the
amendment to await an answer from DOL.
SENATOR SHOWER expressed his willingness to wait for another
opinion.
2:45:50 PM
SENATOR SHOWER moved to table Amendment 9.
CHAIR MYERS stated that Amendment 9 was tabled.
2:46:07 PM
SENATOR KIEHL moved to adopt Amendment 10, work order 32-
GS1649\A.3:
32-GS1649\A.3
Fisher
4/2/21
AMENDMENT 10
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 103
Page 3, line 30:
Delete ". The department shall"
Insert "and to the senate secretary and chief clerk
of the house of representatives and"
Page 4, line 19, following "governor":
Insert "and to the senate secretary and chief clerk
of the house of representatives"
Page 4, line 21, following "AS 19.65.011":
Insert "and notify the legislature that the report
is available"
Page 5, line 20, following "governor":
Insert "and the legislature"
CHAIR MYERS objected for discussion purposes.
2:46:12 PM
SENATOR KIEHL explained that Amendment 10 would require the board
to submit its reports and recommendations to the legislature, the
department, and the governor.
SENATOR MYERS removed his objection. There being no further
objection, Amendment 10 was adopted.
2:47:09 PM
SENATOR KIEHL moved to adopt Amendment 11, work order 32-
GS1649\A.4:
32-GS1649\A.4
Fisher
4/2/21
AMENDMENT 11
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 103
Page 4, following line 25:
Insert a new subsection to read:
"(e) Not later than August 1 of each year, the
board shall submit proposed operating and capital
budgets for the Alaska marine highway system for the
next fiscal year to the governor and to the senate
secretary and chief clerk of the house of
representatives and notify the legislature that the
proposed budgets are available."
Reletter the following subsection accordingly.
Page 5, line 21:
Delete "AS 19.65.280"
Insert "AS 19.65.280(d)"
CHAIR MYERS objected for discussion purposes.
2:47:12 PM
SENATOR KIEHL explained that Amendment 11 would require the board
to submit proposed AMHS operating and capital budgets to the
governor, Senate Secretary and Chief Clerk's office. He clarified
that the governor would propose the budgets but this would allow
the legislature to view OPB's suggested budget and compare it to
the governor's proposed budgets.
2:48:06 PM
CHAIR MYERS remarked that the governor does not need to follow
OPB's suggested budget decisions.
SENATOR SHOWER asked if any issues arise in terms of budgetary
timelines.
2:49:23 PM
SENATOR KIEHL related his understanding that departments work with
the Office of Management and Budget a little earlier.
MR. CARPENTER answered that August 1 might be a little early in
the process. He suggested that September 1 might be a better date.
He asked whether the committee might consider this at a subsequent
meeting.
SENATOR KIEHL made a motion to table Amendment 11.
CHAIR MYERS stated that Amendment 11 was tabled.
2:51:11 PM
SENATOR SHOWER moved to adopt Amendment 12, work order 32-
GS1649\A.13:
32-GS1649\A.13
Fisher
4/5/21
AMENDMENT 12
OFFERED IN THE SENATE
TO: SB 103
Page 1, line 1, following "Act":
Insert "relating to the duties of the Department of
Transportation and Public Facilities;"
Page 4, lines 26 - 27:
Delete all material and insert:
"(e) The Department of Transportation and Public
Facilities shall provide to the board information
necessary for the board to carry out its duties."
CHAIR MYERS objected for discussion purposes.
2:51:19 PM
SENATOR SHOWER explained that Amendment 12 would require DOTPF to
provide information to OPB.
CHAIR MYERS removed his objection. There being no further
objection, Amendment 12 was adopted.
2:52:02 PM
CHAIR MYERS moved to adopt Amendment 13, work order 32-
GS1649\A.15:
AMENDMENT 13
32-GS1649\A.15
Fisher
4/7/21
OFFERED IN THE SENATE BY SENATOR MYERS
TO: SB 103
Page 1, line 1, following "Act"
Insert "relating to the duties of the Department of
Transportation and Public Facilities;"
Page 4, following line 31:
Insert a new bill section to read:
"* Sec. 3. 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.
SENATOR SHOWER objected for discussion purposes.
2:52:10 PM
CHAIR MYERS explained that Amendment 13 would require DOTPF to
incorporate the long-range plan completed by the newly created
advisory board into the department's comprehensive Intermodal
Long-range Transportation Plan. He explained that the department
has ignored the previous board's suggestions so this would provide
OPB with more authority.
2:53:04 PM
SENATOR MICCICHE said he understood the intent of Amendment 13. He
expressed concern that a board and administration might not be
balanced. He stated that there should be checks and balances in
the system. He expressed his concern that this language was too
strong. He said he would like OPB to have sufficient authority but
he did not want to force the department to incorporate the board's
plan.
2:55:18 PM
SENATOR KIEHL stated that Amendment 14 would impose stronger
language. He offered his belief that Amendment 13 would still give
the department some discretion but would require the department to
give the proposed plan serious consideration.
SENATOR MICCICHE shall incorporate does not mean it should be
incorporated in its entirety. He agreed Amendment 13 would provide
some flexibility so he could support it over Amendment 14.
2:57:44 PM
SENATOR SHOWER removed his objection. There being no further
objection, Amendment 13 was adopted.
2:58:13 PM
SENATOR KIEHL withdrew Amendment 14.
2:58:39 PM
SENATOR SHOWER moved to adopt Amendment 15, work order 32-
GS1649\A.14:
32-GS1649\A.14
Fisher
4/5/21
AMENDMENT 15
OFFERED IN THE SENATE
TO: SB 103
Page 1, line 2, following "Board;"
Insert "relating to the powers and duties of the
Alaska Marine Highway System Operation and Planning
Board;"
Page 5, lines 20 - 21:
Delete all material and insert:
"REPORTS. Notwithstanding AS 19.65.280(c) and (d),
enacted by sec. 2 of this Act, the Alaska Marine Highway
System Operation and Planning Board shall prepare and
submit its initial reports to the governor under
AS 19.65.280(c) and (d), enacted by sec. 2 of this Act,
not later than 90 days after the date the governor
finishes appointing the initial members of the Alaska
Marine Highway System Operation and Planning Board."
CHAIR MYERS objected for discussion purposes.
2:58:45 PM
SENATOR SHOWER explained that Amendment 15 would require OPB to
prepare and submit an initial report to the governor within 90
days.
CHAIR MYERS removed his objection. There being no further
objection, Amendment 15 was adopted.
[SB 103 was held in committee.]
2:59:53 PM
There being no further business to come before the committee,
Chair Myers adjourned the Senate Transportation Standing Committee
meeting at 2:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB103 Amendments.pdf |
STRA 4/8/2021 1:30:00 PM |
SB 103 |
| SB103 Testimony - Recieved as of 4.20.21.pdf |
STRA 4/8/2021 1:30:00 PM |
SB 103 |