05/03/2022 01:30 PM Senate TRANSPORTATION
| Audio | Topic | 
|---|---|
| Start | |
| HB166 | |
| SB170 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 166 | TELECONFERENCED | |
| += | SB 170 | TELECONFERENCED | |
                    ALASKA STATE LEGISLATURE                                                                                  
            SENATE TRANSPORTATION STANDING COMMITTEE                                                                          
                          May 3, 2022                                                                                           
                           1:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Robert Myers, Chair                                                                                                     
Senator Mike Shower, Vice Chair                                                                                                 
Senator Peter Micciche                                                                                                          
Senator Jesse Kiehl                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 166(FIN)                                                                                
"An Act relating to the issuance of vehicle registration plates;                                                                
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED SCS CSHB 166(TRA) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE BILL NO. 170                                                                                                             
"An Act relating to the Alaska marine highway system;                                                                           
establishing the Alaska Marine Highway Corporation; and                                                                         
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 166                                                                                                                  
SHORT TITLE: ONE LICENSE PLATE PER VEHICLE                                                                                      
SPONSOR(s): REPRESENTATIVE(s) MCCABE                                                                                            
                                                                                                                                
04/07/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/21       (H)       TRA, FIN                                                                                               
04/20/21       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/20/21       (H)       Heard & Held                                                                                           
04/20/21       (H)       MINUTE(TRA)                                                                                            
04/27/21       (H)       TRA AT 1:00 PM BARNES 124                                                                              
04/27/21       (H)       Moved HB 166 Out of Committee                                                                          
04/27/21       (H)       MINUTE(TRA)                                                                                            
04/28/21       (H)       TRA RPT 2DP 2DNP 3NR                                                                                   
04/28/21       (H)       DP: MCKAY, MCCABE                                                                                      
04/28/21       (H)       DNP: HANNAN, SPOHNHOLZ                                                                                 
04/28/21       (H)       NR: CRONK, DRUMMOND, HOPKINS                                                                           
03/02/22       (H)       FIN AT 9:00 AM ADAMS 519                                                                               
03/02/22       (H)       Heard & Held                                                                                           
03/02/22       (H)       MINUTE(FIN)                                                                                            
03/07/22       (H)       FIN AT 9:00 AM ADAMS 519                                                                               
03/07/22       (H)       -- MEETING CANCELED --                                                                                 
03/07/22       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
03/07/22       (H)       Moved CSHB 166(FIN) Out of Committee                                                                   
03/07/22       (H)       MINUTE(FIN)                                                                                            
03/09/22       (H)       FIN RPT CS(FIN) NEW TITLE 3DP 1DNP 3NR                                                                 
03/09/22       (H)       DP: LEBON, JOHNSON, EDGMON                                                                             
03/09/22       (H)       DNP: JOSEPHSON                                                                                         
03/09/22       (H)       NR: ORTIZ, WOOL, MERRICK                                                                               
04/26/22       (H)       CALL FOR THE QUESTION UC                                                                               
04/26/22       (H)       CALL FOR THE QUESTION AM 1 UC                                                                          
04/26/22       (H)       MOTION TO TABLE FAILED Y3 N34 E3                                                                       
04/27/22       (H)       TRANSMITTED TO (S)                                                                                     
04/27/22       (H)       VERSION: CSHB 166(FIN)                                                                                 
04/29/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/29/22       (S)       TRA, FIN                                                                                               
05/03/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 170                                                                                                                  
SHORT TITLE: MARINE HIGHWAY CORPORATION                                                                                         
SPONSOR(s): TRANSPORTATION                                                                                                      
                                                                                                                                
01/21/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/22       (S)       TRA, L&C, FIN                                                                                          
02/17/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/17/22       (S)       Heard & Held                                                                                           
02/17/22       (S)       MINUTE(TRA)                                                                                            
02/22/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/22/22       (S)       Heard & Held                                                                                           
02/22/22       (S)       MINUTE(TRA)                                                                                            
03/17/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/17/22       (S)       Heard & Held                                                                                           
03/17/22       (S)       MINUTE(TRA)                                                                                            
03/22/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/22/22       (S)       Heard & Held                                                                                           
03/22/22       (S)       MINUTE(TRA)                                                                                            
03/24/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/24/22       (S)       Heard & Held                                                                                           
03/24/22       (S)       MINUTE(TRA)                                                                                            
03/29/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/29/22       (S)       -- MEETING CANCELED --                                                                                 
03/31/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/31/22       (S)       -- MEETING CANCELED --                                                                                 
04/05/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/05/22       (S)       Heard & Held                                                                                           
04/05/22       (S)       MINUTE(TRA)                                                                                            
04/12/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/12/22       (S)       -- MEETING CANCELED --                                                                                 
05/03/22       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE KEVIN MCCABE                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 166.                                                                                        
                                                                                                                                
JULIE MORRIS, Staff                                                                                                             
Representative Kevin McCabe                                                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the sectional analysis for HB 166                                                               
on behalf of the sponsor.                                                                                                       
                                                                                                                                
ANDY MILLS, Legislative Liaison                                                                                                 
Office of the Commissioner                                                                                                      
Department of Transportation and Public Facilities (DOTPF)                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions on HB 166.                                                                             
                                                                                                                                
CAPTAIN JOHN FALVEY, General Manager                                                                                            
Marine Highway System                                                                                                           
Department of Transportation and Public Facilities (DOTPF)                                                                      
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Answered questions during the hearing on SB
170.                                                                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:34:07 PM                                                                                                                    
CHAIR  ROBERT MYERS  called  the  Senate Transportation  Standing                                                             
Committee meeting  to order at 1:34  p.m. Present at the  call to                                                               
order  were Senators  Kiehl, Micciche,  and Chair  Myers. Senator                                                               
Shower arrived as the meeting was in progress.                                                                                  
                                                                                                                                
              HB 166-ONE LICENSE PLATE PER VEHICLE                                                                          
                                                                                                                                
1:34:34 PM                                                                                                                    
CHAIR MYERS announced the consideration of CS FOR HOUSE BILL NO.                                                                
166(FIN) "An Act relating to the issuance of vehicle                                                                            
registration plates; and providing for an effective date."                                                                      
                                                                                                                                
1:34:58 PM                                                                                                                    
REPRESENTATIVE KEVIN MCCABE, Alaska State Legislature, Juneau,                                                                  
Alaska, sponsor of HB 166, paraphrased the sponsor statement.                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     HB166 would  direct the DMV  to reduce issuance  of the                                                                    
     number of vehicle  license plates from two  to one rear                                                                    
     plate.                                                                                                                     
                                                                                                                                
     HB166's main focus is the  cost savings to the State of                                                                    
     Alaska's budget.  It would  conserve resources  of many                                                                    
     departments and bring Alaska in  line with other states                                                                    
     moving  to a  single  plate requirement.  As of  today,                                                                    
     twenty other states no longer  require vehicles to have                                                                    
     a  license plate  mounted on  the  front. Nebraska  and                                                                    
     Iowa are the  in the midst of doing the  same for their                                                                    
     residents.                                                                                                                 
                                                                                                                                
                                                                                                                                
     The manufacturers  of many new gas-powered  vehicles do                                                                    
     not  provide a  location to  put a  plate on  the front                                                                    
     bumpers.  New,  important  safety  technology  such  as                                                                    
     proximity and traffic sensors are  present on the front                                                                    
     grills  of  modern cars  which  can  be obstructed  and                                                                    
     damaged by attempts to install  a front plate. Removing                                                                    
     the front  plate maintains a  car's health  by allowing                                                                    
     the  designed airflow  to  occur,  thereby meeting  the                                                                    
     component   cooling  requirements.   Eliminating  front                                                                    
     plates protects the aesthetic  contours of the vehicle.                                                                    
     With  new   electric  vehicles,  the   most  noticeable                                                                    
     difference  is  the  elimination of  the  grill.  Their                                                                    
     front ends are not  only packed with sensor technology,                                                                    
     they  require far  less  ventilation  which allows  the                                                                    
     manufacturer  to  increase  the  overall  size  of  the                                                                    
     interior of the  vehicle in leg room  for passengers or                                                                    
     larger  storage and  trunk  areas.  Custom and  classic                                                                    
     cars simply did  not come with a provision  for a front                                                                    
     plate.                                                                                                                     
                                                                                                                                
1:36:50 PM                                                                                                                    
REPRESENTATIVE  MCCABE   continued  to  paraphrase   the  sponsor                                                               
statement.                                                                                                                      
                                                                                                                                
     The  single plate  and registration  tab will  still be                                                                    
     required on the rear  of the vehicle thereby continuing                                                                    
     to  assist law  enforcement  officers  in their  public                                                                    
     safety work.  The rear plate and  registration tab will                                                                    
     remain visible  to the  human eye,  bodycams, dashboard                                                                    
     cams,  security   cameras  and  other   personal  video                                                                    
     surveillance systems.  Alaska is  known for  its strong                                                                    
     police-community  relationship   and  this   bill  will                                                                    
     further  protect residents,  law enforcement  and their                                                                    
     mutual  trust from  any  incident  that might  escalate                                                                    
     from a no front plate violation.                                                                                           
                                                                                                                                
1:37:22 PM                                                                                                                    
REPRESENTATIVE  MCCABE  stated  that  he counted  the  number  of                                                               
vehicles  without a  front plate  when driving  from Big  Lake to                                                               
Anchorage and found  that about one in ten vehicles  did not have                                                               
a  front license  plate  or mud  obscured  it. Typically,  people                                                               
can't read  the license  plate in  their rearview  mirror because                                                               
the plate  is below the  horizon of the  tailgate or the  rear of                                                               
the vehicle.                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE related that it  would be a "fix it" ticket                                                               
and  it does  not  generate  any revenue  for  the Department  of                                                               
Public Safety (DPS). He reported  that DPS reported the citations                                                               
issued, including  one in 2018, one  in 2019, five in  2020, nine                                                               
in 2021, and one in 2022.  He suggested that the state could save                                                               
production and distribution costs for mailing license plates.                                                                   
                                                                                                                                
REPRESENTATIVE  MCCABE stated  that  this bill  would not  affect                                                               
jobs because  the Division of  Motor Vehicles contracts  with the                                                               
license plate maker.  He noted that Fairbanks  and Wasilla police                                                               
departments and  the Alaska  State Troopers  have no  position on                                                               
the bill.  He reported  that Ohio  implemented this  and reported                                                               
that there was no impact to Ohio's troopers.                                                                                    
                                                                                                                                
1:38:52 PM                                                                                                                    
REPRESENTATIVE  MCCABE   continued  to  paraphrase   the  sponsor                                                               
statement.                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     In  Alaska's precarious  budget situation,  it is  more                                                                    
     important than  ever to  trim the  budget where  we can                                                                    
     and ensure our state's fiscal  health in years to come.                                                                    
     Let's  make common  sense changes  such as  outlined in                                                                    
     HB166  that will  provide for  even the  smaller budget                                                                    
     cost-saving measures.                                                                                                      
                                                                                                                                
1:39:57 PM                                                                                                                    
JULIE MORRIS, Staff, Representative Kevin McCabe, Juneau,                                                                       
Alaska, presented the sectional analysis for HB 166 on behalf of                                                                
the sponsor, which read:                                                                                                        
                                                                                                                                
     Section  1:   Amends  AS   28.10.108(g)  to   make  all                                                                    
     references to "plates" and "registration"                                                                                  
     singular.                                                                                                                  
                                                                                                                                
     Section  2:   Amends  AS   28.10.108(h)  to   make  all                                                                    
     references to "plates" singular.                                                                                           
                                                                                                                                
     Section  3:   Amends  AS   28.10.155(a)  to   make  all                                                                    
     references to "plates" singular.                                                                                           
                                                                                                                                
     Section  4:  Grammatically  amends AS  28.10.161(a)  to                                                                    
     conform with the singular intent of the bill.                                                                              
                                                                                                                                
     Section  5:  Amends  AS  28.10.161(b)  adds  conforming                                                                    
     language for a singular plate.                                                                                             
                                                                                                                                
     Section  6:  Adds a  subsection  to  AS 28.10.161  that                                                                    
     provides an  individual or  organization the  option to                                                                    
     return a plate should they be issued two plates.                                                                           
                                                                                                                                
     Section  7:  Grammatically  amends AS  28.10.181(b)  to                                                                    
     conform with the singular intent of the bill.                                                                              
                                                                                                                                
     Section  8:   Amends  AS   28.10.181(j)  to   make  all                                                                    
     references to "plates" singular.                                                                                           
                                                                                                                                
     Section  9:  Amends  AS  28.10.121(d)(9)  to  make  all                                                                    
     references to "plates" singular.                                                                                           
                                                                                                                                
     Section 10: Amends AS 28.10.441  to make all references                                                                    
     to "plates" singular.                                                                                                      
                                                                                                                                
     Section 11: Outlines an immediate effective date.                                                                          
                                                                                                                                
MS. MORRIS explained that Sections  1-10 grammatically conform to                                                               
make all  references to  "plates" singular.  Section 6  allows an                                                               
individual  or organization  to  return a  license  plate if  two                                                               
plates were issued. Section 11 provides for an immediate                                                                        
effective date.                                                                                                                 
                                                                                                                                
1:41:10 PM                                                                                                                    
SENATOR MICCICHE asked if a person could have two plates.                                                                       
                                                                                                                                
SENATOR MCCABE responded that HB 166 provides a provision for                                                                   
the individual to order a second license plate, similar to                                                                      
ordering a personalized plate for a small fee.                                                                                  
                                                                                                                                
1:42:04 PM                                                                                                                    
CHAIR MYERS opened public testimony; he found none and closed                                                                   
public testimony on HB 166.                                                                                                     
                                                                                                                                
1:42:55 PM                                                                                                                    
CHAIR MYERS moved to adopt Amendment 1, work order 32-                                                                          
LS0403\B.4.                                                                                                                     
                                                                                                                                
                                                 32-LS0403\B.4                                                                  
                                                      Radford                                                                   
                                                       5/2/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                    BY CHAIR MYERS                                                                     
     TO:  CSHB 166(FIN)                                                                                                         
                                                                                                                                
          Page 3, line 13:                                                                                                      
               Delete "rear plate"                                                                                              
               Insert "(A) rear plate for noncommercial                                                                 
          vehicles; or                                                                                                      
                    (B)  front plate for commercial                                                                         
          vehicles."                                                                                                        
                                                                                                                                
          Page 3, line 17:                                                                                                      
               Delete "rear"                                                                                                    
               Insert "(A) rear of the vehicle for which it                                                                 
          is issued for a noncommercial vehicle; or                                                                         
                    (B)  front of the vehicle for which it                                                                  
          is issued if the vehicle is a commercial                                                                          
          vehicle."                                                                                                         
                                                                                                                                
          Page 3, following line 18:                                                                                            
               Insert a new bill section to read:                                                                               
             "* Sec. 7. AS 28.10.171(a) is amended to read:                                                                 
               (a)  When two registration plates are issued                                                                     
          for  a  vehicle, they  shall  be  attached to  the                                                                    
          vehicle  for which  issued, one  in front  and the                                                                    
          other in the rear.  When one registration plate is                                                                    
          issued, it shall be attached to the                                                                                   
                    (1)  rear of the vehicle for which                                                                      
          issued for a noncommercial vehicle; or                                                                            
                    (2)  front of the vehicle for which                                                                     
          issued if the vehicle is a commercial vehicle."                                                                   
                                                                                                                                
          Renumber the following bill sections accordingly.                                                                     
                                                                                                                                
1:42:58 PM                                                                                                                    
SENATOR MICCICHE objected for discussion purposes.                                                                              
                                                                                                                                
1:43:02 PM                                                                                                                    
CHAIR MYERS  explained that he  reviewed how HB 166  would affect                                                               
commercial vehicles,  noting that he  had no issue with  going to                                                               
one plate. He  said mud often obscures the back  license plate on                                                               
commercial  vehicles.  He   stated  that  commercial  enforcement                                                               
officers  use the  front license  plate to  log the  vehicle into                                                               
their computer system.  He indicated that DOT&PF  prefers to have                                                               
the license plate located on  the front of the commercial vehicle                                                               
and Amendment 1 would make that change.                                                                                         
                                                                                                                                
1:44:01 PM                                                                                                                    
SENATOR MICCICHE removed his objection.                                                                                         
                                                                                                                                
CHAIR MYERS asked if he would reinstate his objection.                                                                          
                                                                                                                                
1:44:12 PM                                                                                                                    
SENATOR MICCICHE objected for discussion purposes.                                                                              
                                                                                                                                
1:44:24 PM                                                                                                                    
CHAIR MYERS  explained that the Department  of Transportation and                                                               
Public  Facilities  (DOTPF)  suggested  a  conforming  change  to                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
1:44:41 PM                                                                                                                    
CHAIR MYERS  moved to adopt  Conceptual Amendment 1  to Amendment                                                               
1.                                                                                                                              
                                                                                                                                
1:44:44 PM                                                                                                                    
SENATOR MICCICHE objected for discussion purposes.                                                                              
                                                                                                                                
1:44:49 PM                                                                                                                    
CHAIR MYERS stated Conceptual Amendment 1 to Amendment 1:                                                                       
                                                                                                                                
      On page 3, line 20, to the definition of commercial                                                                       
     vehicle, it will read, "commercial motor vehicle" per                                                                      
     AS 19.10.399.                                                                                                              
                                                                                                                                
CHAIR MYERS  explained that the statutes  contain two definitions                                                               
for commercial vehicles. The definition  in paragraph (2) relates                                                               
to trucks and buses, and the  other definition relates to using a                                                               
motor vehicle for a commercial purpose.                                                                                         
                                                                                                                                
1:45:37 PM                                                                                                                    
SENATOR  MICCICHE  asked  whether the  definition  of  commercial                                                               
motor vehicle would exclude trailers.                                                                                           
                                                                                                                                
CHAIR MYERS  answered that  it would depend  on the  trailer size                                                               
because  trailers weighing  over  10,000  pounds were  considered                                                               
commercial motor vehicles.                                                                                                      
                                                                                                                                
1:45:56 PM                                                                                                                    
SENATOR  MICCICHE  asked  how  a front  license  plate  would  be                                                               
affixed to a commercial trailer.                                                                                                
                                                                                                                                
1:46:11 PM                                                                                                                    
ANDY  MILLS, Legislative  Liaison,  Office  of the  Commissioner,                                                               
Department  of  Transportation  and  Public  Facilities  (DOTPF),                                                               
Juneau,  Alaska,  responded  that  the  trailer  plate  would  be                                                               
affixed  on the  back of  the trailer,  but the  commercial motor                                                               
vehicle towing the  trailer would have the  license plate affixed                                                               
to the  front of the vehicle.  This would avoid having  the plate                                                               
between  the  commercial motor  vehicle  and  the trailer.  These                                                               
commercial motor vehicles use the  scales and are not the smaller                                                               
types of trucks that deliver flowers or other business goods.                                                                   
                                                                                                                                
CHAIR  MYERS  stated  that trailers  were  covered  elsewhere  in                                                               
statute. He  noted that trailers  currently are only  required to                                                               
have one plate.                                                                                                                 
                                                                                                                                
1:47:27 PM                                                                                                                    
SENATOR MICCICHE removed his objection.                                                                                         
                                                                                                                                
CHAIR MYERS found no further  objection, and Conceptual Amendment                                                               
1 to Amendment 1 was adopted.                                                                                                   
                                                                                                                                
1:47:38 PM                                                                                                                    
CHAIR MYERS stated  that Amendment 1, as amended,  was before the                                                               
committee.                                                                                                                      
                                                                                                                                
1:47:43 PM                                                                                                                    
SENATOR MICCICHE removed his objection.                                                                                         
                                                                                                                                
1:48:04 PM                                                                                                                    
CHAIR  MYERS found  no  further objection,  and  Amendment 1,  as                                                               
amended, was adopted.                                                                                                           
                                                                                                                                
1:48:00 PM                                                                                                                    
SENATOR MICCICHE  moved to report  the committee  substitute (CS)                                                               
for  HB  166(FIN),  work  order  32-LS0403\B,  as  amended,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  MYERS  found  no  objection, and  SCS  CSHB  166(TRA)  was                                                               
reported from the Senate Transportation Standing Committee.                                                                     
                                                                                                                                
1:48:32 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
               SB 170-MARINE HIGHWAY CORPORATION                                                                            
                                                                                                                                
1:52:01 PM                                                                                                                    
CHAIR   MYERS   reconvened   the  meeting   and   announced   the                                                               
consideration  of SENATE  BILL NO.  170 "An  Act relating  to the                                                               
Alaska  marine highway  system;  establishing  the Alaska  Marine                                                               
Highway Corporation; and providing for an effective date."                                                                      
                                                                                                                                
[SB  170  was  previously  heard on  2/17/22,  2/22/22,  3/17/22,                                                               
3/22/22, 3/24/22, and 4/5/22.]                                                                                                  
                                                                                                                                
1:52:22 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  1,  work  order  32-                                                               
LS0528\W.5.                                                                                                                     
                                                                                                                                
                                                 32-LS0528\W.5                                                                  
                                                    Bannister                                                                   
                                                                                                                                
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 5, lines 11 - 13:                                                                                                     
          Delete "[BOATS AND VESSELS OF THE MARINE HIGHWAY                                                                      
     SYSTEM;                                                                                                                    
               (iv)]"                                                                                                           
          Insert "boats and vessels of the Alaska marine                                                                    
     highway system;                                                                                                            
               (iv)"                                                                                                            
                                                                                                                                
     Page 5, lines 15 - 16:                                                                                                     
          Delete "and boats and vessels of the Alaska                                                                       
     marine highway system"                                                                                                 
                                                                                                                                
1:52:29 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
1:52:33 PM                                                                                                                    
SENATOR KIEHL explained  that Amendment 1 would  retain the major                                                               
projects of  the boats and  vessels of the Alaska  Marine Highway                                                               
System  (AMHS) in  the Percent  for Art  Program. He  stated that                                                               
public  art  is  good  for  the  general  public,  Alaskans,  and                                                               
visitors to Alaska. It is  beneficial to Alaska's economy because                                                               
Alaskan artists bid  on these projects, making  the public spaces                                                               
better  places  to be.  These  projects  offer opportunities  for                                                               
communities  to  educate  visitors   about  Alaska  and  Alaska's                                                               
cultural history. Amendment  1 would retain AMHS  in the existing                                                               
program.                                                                                                                        
                                                                                                                                
1:53:28 PM                                                                                                                    
SENATOR MICCICHE remarked  that a percentage of  revenue has been                                                               
directed towards the arts since the ancient Greeks and Romans.                                                                  
                                                                                                                                
SENATOR KIEHL  related his understanding that  the Roman Republic                                                               
did not fund  public art but relied on  ultra-wealthy patrons. He                                                               
recalled that when Rome entered  its imperial period, it provided                                                               
public funding for the arts.                                                                                                    
                                                                                                                                
1:54:43 PM                                                                                                                    
CHAIR  MYERS  stated  that  he  was  unsure  whether  the  Alaska                                                               
Railroad Corporation was covered by the Percent for Art Program.                                                                
                                                                                                                                
SENATOR KIEHL answered that he was unsure.                                                                                      
                                                                                                                                
CHAIR MYERS  expressed his interest  in knowing whether  ARRC was                                                               
subject  to the  Percent  for Art  Program since  it  is a  state                                                               
corporation.                                                                                                                    
                                                                                                                                
SENATOR KIEHL  offered to bring  up Amendment  1 later on  in the                                                               
meeting.                                                                                                                        
                                                                                                                                
1:55:39 PM                                                                                                                    
SENATOR MICCICHE  wondered whether this  would add to  the fiscal                                                               
note and if  the one percent for art was  included in the overall                                                               
construction cost.                                                                                                              
                                                                                                                                
SENATOR KIEHL related his understanding  that the one percent for                                                               
art would reflect one percent of the total project cost.                                                                        
                                                                                                                                
CHAIR MYERS recalled that the  Tustumena Replacement Vessel (TRV)                                                               
estimate was approximately $250 million,  so one percent would be                                                               
a significant amount.                                                                                                           
                                                                                                                                
CHAIR MYERS rolled Amendment 1 to the bottom of the amendments.                                                                 
                                                                                                                                
1:56:59 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  2,  work  order  32-                                                               
LS0528\W.6.                                                                                                                     
                                                                                                                                
                                                 32-LS0528\W.6                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                   BY SENATOR KIEHL                                                                    
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 9, line 16, following "state.":                                                                                       
          Insert "The continued operation of the Alaska                                                                         
    marine highway system by the corporation as provided in                                                                     
    this chapter is an essential government function of the                                                                     
     state."                                                                                                                    
                                                                                                                                
1:57:03 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
1:57:09 PM                                                                                                                    
SENATOR  KIEHL  stated  that  Amendment   2  would  consider  the                                                               
continued  operation of  the ferries  as an  essential government                                                               
function  of  the  state,  which   matches  the  language  in  AS                                                               
42.40.010 for the Alaska Railroad Corporation (ARRC).                                                                           
                                                                                                                                
1:57:36 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 2 was adopted                                                                                          
                                                                                                                                
1:57:45 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  3,  work  order  32-                                                               
LS0528\W.7.                                                                                                                     
                                                                                                                                
                                                 32-LS0528\W.7                                                                  
                                                     Bannister                                                                  
                                                       3/29/22                                                                  
                                                                                                                                
                                                                                                                                
                          AMENDMENT 3                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 9, line 24:                                                                                                           
          Delete "designate the deputy commissioner"                                                                            
          Insert "not designate another person"                                                                                 
                                                                                                                                
1:57:47 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
1:57:51 PM                                                                                                                    
SENATOR  KIEHL  explained  that   the  bill  contained  disparate                                                               
treatment  for   the  two  commissioners.  He   stated  that  the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)  commissioner could  designate  someone to  serve on  the                                                               
board,   but  the   Department  of   Transportation  and   Public                                                               
Facilities  (DOTPF) commissioner  could  not.  Amendment 3  would                                                               
treat the  two commissioners the  same by not allowing  the DOTPF                                                               
commissioner to  select a designee. He  emphasized the importance                                                               
of  having DOTPF  management engaged  with  the corporation.  The                                                               
bill  places the  corporation under  the Department  of Commerce,                                                               
Community  and Economic  Development  (DCCED). The  commissioners                                                               
must  coordinate the  Surface Transportation  Improvement Program                                                               
(STIP) and  intermodal transportation  structure. He  offered his                                                               
view  that  involving  DOTPF  at   the  highest  level  would  be                                                               
valuable.                                                                                                                       
                                                                                                                                
1:58:53 PM                                                                                                                    
CHAIR MYERS  said he  was conflicted on  Amendment 3.  He offered                                                               
his view that  one reason to create the corporation  was to allow                                                               
the  corporation to  manage AMHS  instead of  the marine  highway                                                               
falling under DOTPF. He agreed that  it was important for AMHS to                                                               
mesh with the  STIP, which could be a balancing  act. He wondered                                                               
whether allowing DOTPF  to appoint a designee  would help provide                                                               
some distance.                                                                                                                  
                                                                                                                                
SENATOR   KIEHL  acknowledged   that   these  were   fine-grained                                                               
distinctions  because   the  commissioner-designee  could   be  a                                                               
political  appointee such  as a  deputy commissioner  or division                                                               
director. He  stated that Amendment  3 was not meant  to increase                                                               
the distance but to better  integrate AMHS with the department by                                                               
indicating the top DOTPF official would serve on the board.                                                                     
                                                                                                                                
2:00:19 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 3 was adopted.                                                                                         
                                                                                                                                
2:00:33 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  4,  work  order  32-                                                               
LS0528\W.8.                                                                                                                     
                                                                                                                                
                                                 32-LS0528\W.8                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 4                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 10, following line 8:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(f)  One of the members appointed under (b)(3)                                                                       
      of this section shall be a representative of a union                                                                      
     that represents employees of the corporation."                                                                             
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
2:00:35 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:00:38 PM                                                                                                                    
SENATOR KIEHL explained  that Amendment 4 would  specify that one                                                               
union representative  serve on  the board.  This would  match the                                                               
Alaska   Marine  Highway   Operations  Board   that  passed   the                                                               
legislature last year.                                                                                                          
                                                                                                                                
CHAIR  MYERS stated  that  he was  comfortable  having a  current                                                               
union  employee serving  on the  board. He  explained that  it is                                                               
often  helpful  to  receive feedback  on  actual  operations.  He                                                               
expressed  concern that  a union  representative, who  is not  an                                                               
AMHS employee, serving on the  board could be problematic because                                                               
their interests  may differ. He  expressed concern that  it might                                                               
create adversarial relationships  during contract negotiations or                                                               
other conflicts of interest.                                                                                                    
                                                                                                                                
2:02:24 PM                                                                                                                    
SENATOR KIEHL  pointed out that  this language does not  state it                                                               
cannot be a  current employee. He offered his view  that it could                                                               
create a problematic dynamic if  the employee were overseeing the                                                               
head  of the  ferry  system.  However, he  did  not believe  this                                                               
language  was so  prescriptive that  it would  require the  union                                                               
representative to be an employee of the corporation.                                                                            
                                                                                                                                
SENATOR KIEHL  offered his  view that it  would be  beneficial to                                                               
have  someone   who  understands   ship  sailings   and  terminal                                                               
operations. He  suggested that  a union  official serving  on the                                                               
board would  be accountable to  the employees. Amendment  4 would                                                               
keep both options open.                                                                                                         
                                                                                                                                
2:03:39 PM                                                                                                                    
SENATOR  MICCICHE   said  Amendment  4  reads   that  one  member                                                               
appointed under (b)(3) of this  section shall be a representative                                                               
of  a union  that  represents employees  of  the corporation.  He                                                               
stated  that  subparagraph (g)  allows  not  more than  one,  but                                                               
subparagraph  (h) does  not  allow a  current  state employee  to                                                               
serve.  He  suggested   that  if  the  committee   were  to  pass                                                               
subparagraph  (f),  subparagraph  (h)  would still  not  allow  a                                                               
current state employee  to serve on the board;  however, it could                                                               
be a past union representative.                                                                                                 
                                                                                                                                
2:04:17 PM                                                                                                                    
SENATOR  KIEHL  agreed  with  Senator   Micciche  that  a  former                                                               
employee could  serve. He highlighted that  the fundamental point                                                               
of Amendment 4 is to require at least one union representative.                                                                 
                                                                                                                                
2:04:57 PM                                                                                                                    
SENATOR  MICCICHE  asked  if  a  union  representative  could  be                                                               
someone who is not a current state employee.                                                                                    
                                                                                                                                
2:05:30 PM                                                                                                                    
CAPTAIN  JOHN FALVEY,  General  Manager,  Marine Highway  System,                                                               
Department  of  Transportation  and  Public  Facilities  (DOTPF),                                                               
Ketchikan, Alaska,  related his  understanding that  the question                                                               
was  whether a  union  official could  be  someone not  currently                                                               
working as an AMHS employee.                                                                                                    
                                                                                                                                
SENATOR  MICCICHE referred  to the  language in  Amendment 4.  He                                                               
asked  whether   a  representative  of  the   union  representing                                                               
employees  of the  corporation  could  be someone  who  is not  a                                                               
current state employee.                                                                                                         
                                                                                                                                
CAPTAIN FALVEY answered  yes. He clarified that  all three unions                                                               
have  management  representatives  who   are  not  union  members                                                               
sailing on AMHS vessels.                                                                                                        
                                                                                                                                
2:06:30 PM                                                                                                                    
SENATOR MICCICHE said he stands  corrected. He offered his belief                                                               
that it  would be helpful to  have past employees serving  on the                                                               
board, which  is allowed  under the  current language.  He stated                                                               
that  Amendment 4  would allow  someone designated  in paragraphs                                                               
(1)-(6) to serve on the board  but those individuals may not have                                                               
the  experience the  committee seeks  to  provide. He  reiterated                                                               
that it would allow any union representative to serve.                                                                          
                                                                                                                                
2:07:19 PM                                                                                                                    
CHAIR MYERS maintained his objection.                                                                                           
                                                                                                                                
A  roll call  vote was  taken. Senator  Kiehl voted  in favor  of                                                               
Amendment 4,  and Senators Micciche  and Myers voted  against it.                                                               
Therefore, Amendment 4 failed by a 1:2 vote.                                                                                    
                                                                                                                                
2:08:01 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  5,  work  order  32-                                                               
LS0528\W.9.                                                                                                                     
                                                                                                                                
                                                 32-LS0528\W.9                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 5                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 10, line 18:                                                                                                          
          Delete "or former"                                                                                                    
                                                                                                                                
2:08:07 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:08:12 PM                                                                                                                    
SENATOR  KIEHL  explained  that  Amendment  5  would  delete  "or                                                               
former" from  subparagraph (g).  He stated that  the goal  was to                                                               
broaden  the pool.  It maintains  the restriction  that not  more                                                               
than one member appointed by the  governor may be a current union                                                               
member  whose employees  work for  the corporation.  Removing the                                                               
restriction for former  members would open up  the possibility of                                                               
someone  who sailed  several seasons  on AMHS  vessels and  later                                                               
acquired skills in  the private sector to serve on  the board. He                                                               
stated that since they once served  as a union member, they would                                                               
be barred from serving on the board.                                                                                            
                                                                                                                                
2:09:17 PM                                                                                                                    
CHAIR MYERS  stated that  he made  a fair  point. He  offered his                                                               
view that  someone who  used AMHS to  get into  marine operations                                                               
could be a valuable addition to the board.                                                                                      
                                                                                                                                
2:09:45 PM                                                                                                                    
SENATOR MICCICHE stated he would  like to have employees involved                                                               
since most  of them are union  members. He offered his  view that                                                               
these former members could provide  a valuable perspective to the                                                               
board.                                                                                                                          
                                                                                                                                
2:10:07 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 5 was adopted.                                                                                         
                                                                                                                                
2:10:22 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  6,  work  order  32-                                                               
LS0528\W.10.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.10                                                                  
                                                    Bannister                                                                   
                                                      3/28/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 6                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
                                                                                                                                
     Page 12, lines 9 - 10:                                                                                                     
          Delete "board may appoint"                                                                                            
          Insert "chief executive officer may hire"                                                                             
                                                                                                                                
     Page 12, line 11:                                                                                                          
          Delete "an executive officer"                                                                                         
          Insert "a chief executive officer and a chief                                                                         
     financial officer"                                                                                                         
                                                                                                                                
2:10:26 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:10:30 PM                                                                                                                    
SENATOR  KIEHL explained  Amendment 6  would allow  the board  to                                                               
appoint  the Chief  Executive Officer  (CEO) and  Chief Financial                                                               
Officer (CFO). Rather  than the board, these  officers would hire                                                               
and establish  the pay for  other executive officers.  This would                                                               
allow  the board  the time  and authority  to focus  on strategic                                                               
management   and  leadership   but   not  be   involved  in   the                                                               
corporation's day-to-day operations.                                                                                            
                                                                                                                                
2:11:18 PM                                                                                                                    
CHAIR  MYERS  stated he  was  sympathetic  to  the concept  of  a                                                               
unified executive structure.                                                                                                    
                                                                                                                                
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 6 was adopted.                                                                                         
                                                                                                                                
2:11:40 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  7,  work  order  32-                                                               
LS0528\W. 11.                                                                                                                   
                                                                                                                                
                                                32-LS0528\W.11                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 7                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 12, line 30:                                                                                                          
          Delete "$500,000"                                                                                                     
          Insert "$5,000,000"                                                                                                   
                                                                                                                                
2:11:43 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:11:47 PM                                                                                                                    
SENATOR KIEHL  explained that Amendment  7 would  slightly loosen                                                               
direct  board involvement  regarding capital  projects. The  bill                                                               
requires  board  approval  for capital  projects  over  $500,000.                                                               
Amendment 7  would raise  the limit to  $5 million.  For example,                                                               
the  management  team could  decide  to  replace  the roof  on  a                                                               
terminal or approve  significant annual service on  a vessel, but                                                               
it  could not  purchase or  build a  new project.  It would  also                                                               
require board approval for periodic vessel overhauls.                                                                           
                                                                                                                                
2:12:53 PM                                                                                                                    
CHAIR  MYERS  stated  that  the bill  was  initially  drafted  to                                                               
include  $50,000.  He  highlighted  that  the  ferry  system  has                                                               
encountered been contentious. He wanted  to ensure that the board                                                               
had sufficient  oversight. He expressed his  willingness to raise                                                               
that figure to $500,000.                                                                                                        
                                                                                                                                
2:13:46 PM                                                                                                                    
SENATOR MICCICHE  suggested that the  figure should be  enough to                                                               
counter the  direction of the  board. For instance, if  the board                                                               
decided a  specific port  did not require  replacing the  reef at                                                               
the terminal  because the ferry  system was going to  switch from                                                               
regularly  operating  to  quarterly  vessel  service  and  invest                                                               
elsewhere. He asked whether adopting  Amendment 7 by reducing the                                                               
cap to  $5 million would  allow management enough  flexibility to                                                               
make decisions. He offered his  view that $5 million was probably                                                               
too high, but  the cap should be above  $500,000. He acknowledged                                                               
that  it was  not for  vessel replacement.  He expressed  concern                                                               
that it might  cause the leadership team, the  employees, to work                                                               
against the  board. He  stated that  the goal was  to focus  on a                                                               
board-led executive team operating the system.                                                                                  
                                                                                                                                
2:15:29 PM                                                                                                                    
SENATOR  MICCICHE moved  to  adopt a  Conceptual  Amendment 1  to                                                               
Amendment 7 to reduce the $5,000,000 figure to $2,000,000.                                                                      
                                                                                                                                
2:15:36 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:15:41 PM                                                                                                                    
SENATOR KIEHL stated the $5,000,000  was not a perfect figure. He                                                               
stated  that  he  did  not   have  any  objection  to  Conceptual                                                               
Amendment  1 to  Amendment 7,  which would  reduce the  amount to                                                               
$2,000,000.                                                                                                                     
                                                                                                                                
2:16:10 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection,  and  Conceptual  Amendment   1  to  Amendment  7  was                                                               
adopted.                                                                                                                        
                                                                                                                                
CHAIR MYERS  stated that Conceptual  Amendment 1 to  Amendment 7,                                                               
as amended, was before the committee.                                                                                           
                                                                                                                                
2:16:30 PM                                                                                                                    
CHAIR MYERS  removed his  objection to Amendment  7; he  found no                                                               
further objection, and Amendment 7, as amended, was adopted.                                                                    
                                                                                                                                
2:16:47 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt  Amendment  8,  work  order  32-                                                               
LS0528\W.12.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.12                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 8                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
                                                                                                                                
     Page 13, lines 23 - 24:                                                                                                    
          Delete "and to the corporation's acquisition or                                                                       
     disposal of assets"                                                                                                        
                                                                                                                                
2:16:49 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:16:54 PM                                                                                                                    
SENATOR  KIEHL  explained  that  Amendment  8  would  remove  the                                                               
rationale for the  board to meet in executive  session to discuss                                                               
the corporation's  acquisition or  disposal of assets.  The board                                                               
would be  subject to the  usual rules for executive  sessions per                                                               
the Administrative  Procedures Act, which would  cover any fiscal                                                               
implications. He said  the board could meet  in executive session                                                               
to open bids or negotiate  contracts. He suggested that the board                                                               
might hold conversations about whether  to purchase or dispose of                                                               
a vessel, terminal, or major facility  out of the public view. He                                                               
emphasized  the importance  of the  board  holding any  strategic                                                               
discussions in public.                                                                                                          
                                                                                                                                
2:18:18 PM                                                                                                                    
SENATOR MICCICHE  wondered whether the  board might wish  to hold                                                               
sensitive   competitive   discussions   about   acquisitions   of                                                               
disposable  assets in  executive  session and  come  back on  the                                                               
record to vote on the matter.  He expressed concern that it could                                                               
compromise someone's competitive position by making it public.                                                                  
                                                                                                                                
2:19:41 PM                                                                                                                    
SENATOR KIEHL said he did  not have the Administrative Procedures                                                               
Act  before  him  but  recalled  that the  board  could  go  into                                                               
executive  sessions   to  discuss  matters  that   might  have  a                                                               
detrimental or  negative impact on  the finances of  a government                                                               
agency.                                                                                                                         
                                                                                                                                
2:20:39 PM                                                                                                                    
SENATOR  MICCICHE  related a  scenario  where  the Alaska  Marine                                                               
Highway  Corporation  purchased  a  dock from  a  large  company;                                                               
however, the  corporation also had  another offer from  a private                                                               
entity. He  suggested holding conversations in  executive session                                                               
could protect the other competitor's financial information.                                                                     
                                                                                                                                
2:21:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:22:39 PM                                                                                                                    
CHAIR MYERS reconvened the meeting.                                                                                             
                                                                                                                                
CHAIR MYERS  stated his interest  in incentives for the  board or                                                               
chief  executive  officer  if  it was  necessary  to  dispose  or                                                               
acquire  assets.   He  expressed  concern  that   holding  public                                                               
discussions about acquiring or disposing  of assets might lead to                                                               
leasing  rather than  purchasing.  He  related his  understanding                                                               
that  a contract  or  lease could  be  discussed under  executive                                                               
session. He offered  his belief that the board could  end a lease                                                               
in  executive session  since  it  would not  be  disposing of  an                                                               
asset.                                                                                                                          
                                                                                                                                
SENATOR KIEHL responded  that the short answer was  no. He stated                                                               
that  the Open  Meetings  Act  would require  the  board to  hold                                                               
general discussions  in public, but  the board could  discuss any                                                               
details in  an executive session.  He recalled an  exception that                                                               
allows matters the board to  discuss matters in executive session                                                               
if  they  could  adversely  affect the  finances  of  the  public                                                               
entity. Thus, opening bids or  considering competing offers would                                                               
need to  be held in an  executive session. He offered  his belief                                                               
that  no one  would  do  business with  the  state  if the  state                                                               
required firms to disclose trade secrets.                                                                                       
                                                                                                                                
2:25:31 PM                                                                                                                    
CHAIR  MYERS related  his understanding  that if  the corporation                                                               
wanted to  expand service to  a new  community, it would  need to                                                               
lease a facility. AMHC could  go into executive session to select                                                               
a  lessee.  He expressed  concern  that  it might  prejudice  the                                                               
discussion.                                                                                                                     
                                                                                                                                
SENATOR  KIEHL responded  that AMHC  would need  to advertise  to                                                               
obtain offers for a lease or  purchase. AMHC would hold a general                                                               
public  discussion about  the  lease or  purchase,  but it  could                                                               
discuss the details in an executive session.                                                                                    
                                                                                                                                
2:27:05 PM                                                                                                                    
SENATOR MICCICHE asked why this provision was in the bill.                                                                      
                                                                                                                                
2:27:32 PM                                                                                                                    
CHAIR  MYERS  asked for  the  current  process for  acquiring  or                                                               
disposing of assets.                                                                                                            
                                                                                                                                
2:28:00 PM                                                                                                                    
CAPTAIN  FALVEY answered  that AMHS  adheres  to the  procurement                                                               
rules and regulations, such as when AMHS sold its fast ferries.                                                                 
                                                                                                                                
CHAIR  MYERS  asked  whether  the discussions  were  held  in  an                                                               
executive session.                                                                                                              
                                                                                                                                
CAPTAIN  FALVEY answered  that  AMHS went  through  a sealed  bid                                                               
process done privately.                                                                                                         
                                                                                                                                
2:29:07 PM                                                                                                                    
SENATOR KIEHL stated that currently,  AMHS is an executive branch                                                               
agency, but the Open Meetings Act would govern the corporation.                                                                 
                                                                                                                                
2:29:25 PM                                                                                                                    
CHAIR MYERS maintained his objection.                                                                                           
                                                                                                                                
2:29:27 PM                                                                                                                    
A  roll call  vote was  taken. Senator  Kiehl voted  in favor  of                                                               
Amendment 8,  and Senators Micciche  and Myers voted  against it.                                                               
Therefore, Amendment 8 failed by a 1:2 vote.                                                                                    
                                                                                                                                
2:29:58 PM                                                                                                                    
SENATOR KIEHL moved to adopt  Amendment 9, work order 32-LS0528\W                                                               
13.                                                                                                                             
                                                                                                                                
                                                32-LS0528\W.13                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 9                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
                                                                                                                                
                                                                                                                                
     Page 17, lines 19 - 21:                                                                                                    
          Delete ", except that each sailing must show                                                                          
      anticipated incremental revenues that meet or exceed                                                                      
      all projected direct incremental costs of providing                                                                       
     the service"                                                                                                               
                                                                                                                                
2:30:02 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:30:06 PM                                                                                                                    
SENATOR KIEHL explained  that Amendment 9 relates  to the general                                                               
powers of the  corporation. It would delete  the requirement that                                                               
each sailing  show anticipated incremental revenues  that meet or                                                               
exceed all  incremental service costs. He  expressed concern that                                                               
with that  requirement in  place, the system  would not  have any                                                               
flexibility  but would  need  to balance  the  revenues for  each                                                               
sailing. He characterized it as  a little overly prescriptive for                                                               
the general goal to have the system recover its costs.                                                                          
                                                                                                                                
2:31:28 PM                                                                                                                    
CHAIR MYERS related that one goal  was to have the Marine Highway                                                               
System function  more like  a business.  He acknowledged  that in                                                               
the  early stages  the system  would probably  not break  even on                                                               
each  run and  it  might  prevent the  system  from expanding  or                                                               
changing service.                                                                                                               
                                                                                                                                
2:32:23 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 9 was adopted.                                                                                         
                                                                                                                                
2:32:40 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt Amendment  10,  work  order  32-                                                               
LS0528\W.14.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.14                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 10                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 18, line 27:                                                                                                          
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following paragraph accordingly.                                                                              
                                                                                                                                
2:32:45 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:32:48 PM                                                                                                                    
SENATOR  KIEHL   explained  that  Amendment  10   was  a  cleanup                                                               
amendment. It would delete  the language regarding subcontracting                                                               
delivery of  services. He  referred to page  17, line  24, noting                                                               
the  corporation has  broad discretion  to enter  into contracts,                                                               
leases,  and  other  agreements  with  carriers  related  to  the                                                               
activities and operations of the  service. Thus, AMHC already has                                                               
the authority to contract for services.                                                                                         
                                                                                                                                
2:33:40 PM                                                                                                                    
CHAIR  MYERS recalled  holding  discussions about  subcontracting                                                               
out a route. Although he did  not think it would be a significant                                                               
problem, he was  inclined to leave the language  in place because                                                               
it   would  allow   the  corporation   to   temporarily  hire   a                                                               
subcontractor, such  as Allen Marine,  to provide  ferry services                                                               
if a vessel breaks down.                                                                                                        
                                                                                                                                
2:35:09 PM                                                                                                                    
SENATOR MICCICHE  offered his view  that it was  not duplicative,                                                               
and it was important for that language to remain.                                                                               
                                                                                                                                
2:35:57 PM                                                                                                                    
SENATOR KIEHL withdrew Amendment 10.                                                                                            
                                                                                                                                
2:36:42 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt Amendment  11,  work  order  32-                                                               
LS0528\W.15.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.15                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 11                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
                                                                                                                                
     Page 18, line 31, through page 19, line 3:                                                                                 
          Delete "(a)  The board shall have the financial                                                                       
     records  of  the  corporation audited  annually  by  an                                                                    
     independent certified public  accountant experienced in                                                                    
     marine transportation system accounting.                                                                                   
          (b)"                                                                                                                  
                                                                                                                                
     Page 19, line 29:                                                                                                          
          Delete "AS 42.50.260(a)"                                                                                              
          Insert "AS 42.50.260"                                                                                                 
          Following "generated":                                                                                                
          Delete ","                                                                                                            
                                                                                                                                
     Page 44, lines 14 - 18:                                                                                                    
          Delete "Notwithstanding AS 42.50.260(a), added by                                                                     
     sec.  17 of  this Act,  the board  of directors  of the                                                                    
     Alaska  Marine   Highway  Corporation   established  by                                                                    
     AS 42.50.010, added by sec. 17  of this Act, shall have                                                                    
     the first  audit required under  AS 42.50.260(a), added                                                                    
     by  sec. 17  of this  Act, performed  after the  second                                                                    
     fiscal year of the corporation"                                                                                            
          Insert "The first audit under AS 42.50.260, added                                                                     
     by sec.  17 of this  Act, shall be performed  after the                                                                    
     second  fiscal  year  following  establishment  of  the                                                                    
     Alaska  Marine  Highway  Corporation  by  AS 42.50.010,                                                                    
     added by sec. 17 of this Act"                                                                                              
                                                                                                                                
2:36:47 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:37:09 PM                                                                                                                    
SENATOR KIEHL moved to adopt Conceptual Amendment 1 to Amendment                                                                
11.                                                                                                                             
                                                                                                                                
2:37:14 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:37:36 PM                                                                                                                    
SENATOR KIEHL explained that Conceptual  Amendment 1 to Amendment                                                               
11  would require  one audit,  conducted by  an outside  auditor,                                                               
using the  normal Legislative Budget  and Audit  Committee review                                                               
process without requiring that they consult with the governor.                                                                  
                                                                                                                                
2:38:12 PM                                                                                                                    
CHAIR MYERS stated that the corporation should make all                                                                         
financial records available for examination by the Division of                                                                  
Legislative Audit.                                                                                                              
                                                                                                                                
CHAIR MYERS removed his objection; he found no further                                                                          
objection, and Conceptual Amendment 1 to Amendment 11 was                                                                       
adopted.                                                                                                                        
                                                                                                                                
CHAIR MYERS stated that Amendment 11, as amended was before the                                                                 
committee.                                                                                                                      
                                                                                                                                
2:39:04 PM                                                                                                                    
CHAIR MYERS removed his objection; he found no further                                                                          
objection, and Amendment 11, as amended, was adopted.                                                                           
                                                                                                                                
2:39:32 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:40:09 PM                                                                                                                    
CHAIR MYERS reconvened the meeting.                                                                                             
                                                                                                                                
2:40:20 PM                                                                                                                    
SENATOR KIEHL moved to adopt Amendment 12, work order 32-                                                                       
LS0528\W.16.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.16                                                                  
                                                     Bannister                                                                  
                                                       3/30/22                                                                  
                                                                                                                                
                                                                                                                                
                          AMENDMENT 12                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
     Page 22, following line 28:                                                                                                
          Insert a new subsection to read:                                                                                      
          "(c)  The corporation may not sell a dock or                                                                          
     terminal unless the legislature approves the action by                                                                     
     law."                                                                                                                      
                                                                                                                                
     Reletter the following subsections accordingly.                                                                            
                                                                                                                                
2:40:24 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:40:29 PM                                                                                                                    
SENATOR  KIEHL   explained  that   Amendment  12   would  require                                                               
legislative approval  to sell  land with a  dock or  terminal. He                                                               
characterized  this as  comparable to  ARRC statutes.  It ensures                                                               
that  the  legislature could  approve  or  stop the  system  from                                                               
altogether  ending service  to a  community  or divesting  itself                                                               
from the  necessary infrastructure since  it is essential  to the                                                               
total transportation  system. He offered his  view that Amendment                                                               
12  would remove  the concern  that  someone might  sell off  the                                                               
state's assets through a partially-owned subsidiary.                                                                            
                                                                                                                                
2:42:00 PM                                                                                                                    
CHAIR MYERS  stated his concern was  that it seems to  provide an                                                               
incentive to lease  rather than buy. He  suggested that expanding                                                               
service into an  area gives the incentive to back  out if it were                                                               
leased but  not if the  corporation bought and built  a terminal.                                                               
He offered his  view that, typically, buying would  be the better                                                               
option  financially. He  expressed concern  that the  corporation                                                               
might stick with the lease even if it costs a bit more.                                                                         
                                                                                                                                
2:43:02 PM                                                                                                                    
SENATOR MICCICHE  stated that the  legislature should  have faith                                                               
in the board. He offered his view  that the very reason to sell a                                                               
dock or terminal is that the  board decides that it cannot afford                                                               
more than two voyages a year,  but a coastal ferry service offers                                                               
to  provide weekly  service. He  offered his  view that  it could                                                               
give  a community  a much  higher service  level. He  offered his                                                               
belief that  the committee needs to  have faith in the  board and                                                               
the public corporation. He maintained  his view that an effective                                                               
board  will  provide  a  higher  level  of  service  to  specific                                                               
communities that are  marginal today. He indicated  that he could                                                               
not support Amendment 12.                                                                                                       
                                                                                                                                
2:44:32 PM                                                                                                                    
SENATOR  KIEHL offered  his  view that  he  and Senator  Micciche                                                               
believe that  a functional board  will deliver a higher  level of                                                               
service to communities. He stated  that the state currently has a                                                               
mix of  state-owned and state-leased terminals.  It uses existing                                                               
docks  in  some remote  areas  have  agreements to  use  existing                                                               
docks. He offered his view that  Amendment 12 would not throw off                                                               
the  mix. Where  the state  had previously  spent STIP  and state                                                               
matching funds  on facilities. Before  those facilities  are sold                                                               
it  is reasonable  to  have a  check. He  offered  his view  that                                                               
Amendment 12 would provide a reasonable check.                                                                                  
                                                                                                                                
2:45:54 PM                                                                                                                    
CHAIR MYERS maintained his objection.                                                                                           
                                                                                                                                
2:46:03 PM                                                                                                                    
A  roll call  vote was  taken. Senator  Kiehl voted  in favor  of                                                               
Amendment 12, and  Senators Micciche and Myers  voted against it.                                                               
Therefore, Amendment 12 failed by a 1:2 vote.                                                                                   
                                                                                                                                
2:46:27 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt Amendment  13,  work  order  32-                                                               
LS0528\W.17.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.17                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 13                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
                                                                                                                                
     Page 23, line 16:                                                                                                          
          Delete "or"                                                                                                           
                                                                                                                                
    Page 23, line 17, following "AS 44.68.110 - 44.68.140":                                                                     
          Insert "; or                                                                                                          
               (4)  privately owned"                                                                                            
                                                                                                                                
2:46:31 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:46:34 PM                                                                                                                    
SENATOR  KIEHL  explained  that  Amendment  13  would  allow  the                                                               
corporation  to purchase  privately-owned land,  but it  does not                                                               
create a right of eminent domain.                                                                                               
                                                                                                                                
CHAIR  MYERS  agreed  it  was  a slight  oversight.  He  had  not                                                               
considered   that  the   corporation  might   wish  to   purchase                                                               
privately-owned  land.  He offered  his  view  that Amendment  13                                                               
would correct this.                                                                                                             
                                                                                                                                
2:47:43 PM                                                                                                                    
SENATOR MICCICHE  referred to page  23, line  16. He asked  if he                                                               
was removing the first "or."                                                                                                    
                                                                                                                                
SENATOR  KIEHL agreed.  He stated  that the  "or" would  go after                                                               
paragraph (3).                                                                                                                  
                                                                                                                                
2:48:35 PM                                                                                                                    
CHAIR MYERS related  his understanding that this  was a technical                                                               
change to correct the grammar.                                                                                                  
                                                                                                                                
SENATOR MICCICHE said  there were two instances of  "or  that was                                                               
a little confusing.                                                                                                             
                                                                                                                                
2:48:33 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 13 was adopted.                                                                                        
                                                                                                                                
2:48:57 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt Amendment  14,  work  order  32-                                                               
LS0528\W.18.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.18                                                                  
                                                    Bannister                                                                   
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 14                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
                                                                                                                                
     Page 23, line 20, following "Act).":                                                                                       
          Insert "The corporation may not exchange land                                                                         
      owned by the corporation that has a dock or terminal                                                                      
     unless the legislature approves the exchange by law."                                                                      
                                                                                                                                
2:49:01 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:49:06 PM                                                                                                                    
SENATOR  KIEHL   explained  that   Amendment  14   would  require                                                               
legislative approval to  dispose of a dock or terminal  in a land                                                               
exchange.                                                                                                                       
                                                                                                                                
2:49:26 PM                                                                                                                    
CHAIR MYERS stated that Senator  Micciche's point on the previous                                                               
amendment relates  to Amendment  14 also.  He said  he understood                                                               
the trepidation of not wanting to  make it too easy for the board                                                               
to  end or  significantly reduce  a service.  He highlighted  the                                                               
importance  of  getting some  tough  decision-making  out of  the                                                               
legislature. He stated  that the committee must  trust the board.                                                               
However, it concerns him a bit.                                                                                                 
                                                                                                                                
SENATOR KIEHL stated that the legislature must trust but verify.                                                                
                                                                                                                                
2:50:29 PM                                                                                                                    
CHAIR MYERS maintained his objection.                                                                                           
                                                                                                                                
A  roll call  vote was  taken. Senator  Kiehl voted  in favor  of                                                               
Amendment 14, and  Senators Micciche and Myers  voted against it.                                                               
Therefore, Amendment 14 failed by a 1:2 vote.                                                                                   
                                                                                                                                
2:51:08 PM                                                                                                                    
SENATOR  KIEHL  moved  to  adopt Amendment  15,  work  order  32-                                                               
LS0528\W.19.                                                                                                                    
                                                                                                                                
                                                32-LS0528\W.19                                                                  
                                             Ambrose/Bannister                                                                  
                                                      3/29/22                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 15                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                  BY SENATOR KIEHL                                                                     
     TO:  SB 170                                                                                                                
                                                                                                                                
Page 23, line 30:                                                                                                               
     Delete "may"                                                                                                               
     Insert "shall"                                                                                                             
                                                                                                                                
2:51:12 PM                                                                                                                    
CHAIR MYERS objected for discussion purposes.                                                                                   
                                                                                                                                
2:51:15 PM                                                                                                                    
SENATOR  KIEHL explained  that  Amendment 15  would  clear up  an                                                               
ambiguity in the fidelity bond.  The current language states that                                                               
the  corporation  may  obtain  a fidelity  bond  to  cover  board                                                               
members  and  executive officers.  The  bond  must be  in  effect                                                               
during  the  entire  tenure  in  office  of  the  bonded  person.                                                               
Amendment 15 would change the  language from "may" to "shall." He                                                               
stated  that  it  is  internally  consistent  and  a  good,  safe                                                               
business practice that protects the corporation.                                                                                
                                                                                                                                
2:52:19 PM                                                                                                                    
CHAIR MYERS  recalled that this  provision was also  required for                                                               
the Alaska Railroad Corporation.                                                                                                
                                                                                                                                
SENATOR KIEHL agreed.                                                                                                           
                                                                                                                                
2:52:44 PM                                                                                                                    
CHAIR  MYERS   removed  his  objection;   he  found   no  further                                                               
objection, and Amendment 15 was adopted.                                                                                        
                                                                                                                                
2:53:31 PM                                                                                                                    
SENATOR  MICCICHE remarked  that  Senator Kiehl  had raised  good                                                               
points.   He  noted   some  difficulties   the  Alaska   Railroad                                                               
Corporation had  experienced. He offered that  starting AHMC with                                                               
the  proper  framework was  essential  and  that the  legislature                                                               
could  make subsequent  changes to  improve its  effectiveness if                                                               
needed.                                                                                                                         
                                                                                                                                
2:55:14 PM                                                                                                                    
CHAIR MYERS held SB 170 in committee.                                                                                           
                                                                                                                                
2:55:26 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair   Myers  adjourned   the  Senate   Transportation  Standing                                                               
Committee meeting at 2:55 p.m.                                                                                                  
| Document Name | Date/Time | Subjects | 
|---|---|---|
| HB166.OpposingLetters.4.29.22.pdf | 
                    
STRA       5/3/2022 1:30:00 PM | 
                
                    
HB 166 | 
            
| HB166.VerB.SupportingLetters.4.29.22.pdf | 
                    
STRA       5/3/2022 1:30:00 PM | 
                
                    
HB 166 | 
            
| HB166.FiscalNote.DOA.4.29.22.pdf | 
                    
STRA       5/3/2022 1:30:00 PM | 
                
                    
HB 166 | 
            
| HB166.SectionalAnalysis.VerB.4.29.22.pdf | 
                    
STRA       5/3/2022 1:30:00 PM | 
                
                    
HB 166 | 
            
| HB166.SponsorStmt.VerB.4.29.22.pdf | 
                    
STRA       5/3/2022 1:30:00 PM | 
                
                    
HB 166 |