CSSB 21(TRA): "An Act relating to ferries and ferry terminals, establishing the Alaska Marine Highway Authority, and relating to maintenance of state marine vessels; and providing for an effective date."
00CS FOR SENATE BILL NO. 21(TRA) 01 "An Act relating to ferries and ferry terminals, establishing the Alaska Marine 02 Highway Authority, and relating to maintenance of state marine vessels; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. PURPOSE. The purpose of this Act is to establish an authority for the 06 operation, management, planning, construction, and maintenance of facilities for the marine 07 highway system. The authority shall be the exclusive state agency directly associated with 08 the operation, management, planning, construction, and maintenance of facilities for the marine 09 highway system. 10 * Sec. 2. AS 19 is amended by adding a new chapter to read: 11 Chapter 55. Alaska Marine Highway Authority. 12 Article 1. Creation and Organization. 13 Sec. 19.55.010. Alaska Marine Highway Authority. (a) The Alaska Marine 14 Highway Authority is established. The authority is a public corporation of the state.
01 The authority is an instrumentality of the state in the Department of Transportation and 02 Public Facilities but has a legal existence independent of and separate from the state 03 and has continuing succession until its existence is terminated by law. 04 (b) The powers of the authority are vested in the board of directors of the 05 authority. 06 Sec. 19.55.020. Directors. (a) The board of directors of the authority consists 07 of seven directors. One director is the commissioner of transportation and public 08 facilities, and six directors are appointed by the governor. The six appointed members 09 must be state residents who have experience with maritime affairs. Appointed 10 members must include 11 (1) two persons who are members of a union that represents employees 12 of the authority; at least one person appointed under this paragraph shall be a member 13 of a maritime union; 14 (2) two persons who are residents of Southeast Alaska; 15 (3) a person who is a resident of the Gulf of Alaska area west of Icy 16 Cape; and 17 (4) a person who represents the interests of the public. 18 (b) The appointed directors serve staggered five-year terms and may be 19 removed by the governor only for cause. Each director shall hold office for the term 20 of the director's appointment and until a successor is appointed and qualified. A 21 director is qualified for reappointment. A vacancy in a directorship occurring other 22 than by expiration of term shall be filled in the same manner as the original 23 appointment but only for the unexpired term. 24 (c) The directors shall comply with AS 39.50 (Conflict of Interest). Each 25 director before entering upon the director's duties shall subscribe to an oath to perform 26 the duties of office faithfully, impartially, and justly to the best of the director's ability. 27 A record of the oath shall be filed with the Office of the Governor. 28 (d) An appointed director is entitled to compensation at a rate of $300 for each 29 day the director is engaged in actual performance of duties under this chapter. The 30 board of directors of the authority may provide by regulation for compensation for 31 partial days for an appointed director. In addition, an appointed director is entitled to
01 per diem and travel expenses authorized for boards and commissions under 02 AS 39.20.180. 03 Sec. 19.55.030. Officers and quorum. The directors shall elect one of their 04 number as chair of the board of directors. The directors shall elect a secretary and a 05 treasurer who need not be directors, and the same person may be elected to serve both 06 as secretary and treasurer. Four directors constitute a quorum of the board of directors. 07 Except as provided in AS 19.55.110(7), action may be taken and motions and 08 resolutions adopted by the board of directors at a meeting by the affirmative vote of 09 at least four directors. A vacancy in the board of directors of the authority does not 10 impair the right of a quorum to exercise all the powers and perform all the duties of 11 the board. 12 Sec. 19.55.040. Staff. (a) The board of directors shall employ a chief 13 executive officer who serves at the pleasure of the board. 14 (b) The chief executive officer may, with the approval of the board, select and 15 employ additional staff as necessary, including additional administrative officers. All 16 officers and employees of the authority are in the exempt service under AS 39.25.110. 17 (c) In addition to its staff of employees, the board of directors may contract 18 for and engage the services of consultants and professional, technical, and financial 19 advisors the authority considers necessary for the purpose of developing information, 20 conducting hearings, studies, investigations, or other proceedings, or otherwise 21 exercising its powers. 22 Article 2. Powers and Duties. 23 Sec. 19.55.110. Powers of authority. In addition to other powers granted in 24 this chapter, the authority may 25 (1) sue and be sued; 26 (2) adopt and alter an official seal; 27 (3) adopt and enforce regulations for the conduct of its business and 28 for the use of its services and facilities; 29 (4) maintain offices at a place in the state and at places out of the state 30 that are served by the marine highway system; 31 (5) establish terms and conditions of employment by the authority and
01 conduct or designate a representative to conduct labor negotiations with employees; 02 (6) subject to appropriation by the legislature, acquire, hold, use, and 03 dispose of its income, revenues, funds, and money; 04 (7) acquire, hold, use, lease, rent, construct, and dispose of personal 05 property for its purposes, except that the authority may dispose of a ferry only on 06 approval of at least five of its directors; 07 (8) acquire, hold, use, lease, or rent real property and dispose of real 08 property under AS 19.55.230; 09 (9) operate, maintain, improve, and extend a system of ferries 10 connecting with the public roads and highways of the state and including the boats, 11 vessels, wharves, docks, approaches, landings, and appurtenances the authority 12 determines necessary or desirable for safe and efficient operation of the ferry system 13 to best serve the public; 14 (10) do all acts and things necessary, convenient, or desirable to carry 15 out the powers expressly granted or necessarily implied in this chapter; 16 (11) establish annual rates and tariffs after public hearings; 17 (12) modify scheduled routes after public hearings. 18 Sec. 19.55.120. Duties of authority. The authority shall 19 (1) assist the residents, businesses, and communities of the state in 20 obtaining optimal marine passenger and freight service; 21 (2) schedule vessel sailings to optimize the frequency of service to all 22 ports; 23 (3) encourage and integrate with other public and private carriers to the 24 greatest extent possible to provide ferry service within the state and between Alaska 25 ports and ports outside the state in order to provide optimum service within the state; 26 (4) provide reservation access and marketing information throughout 27 the state; 28 (5) encourage vessel construction, maintenance, and service in the state 29 to the greatest extent possible; 30 (6) employ residents of the state to the greatest extent legally possible; 31 (7) recognize Alaska unions and employee associations to the greatest
01 extent legally possible. 02 Sec. 19.55.130. Use of name authorized. The authority is authorized to 03 operate its ferry system under the name "Alaska Marine Highway System". 04 Sec. 19.55.140. Comprehensive long-range plan. The authority, with the 05 cooperation of the Department of Transportation and Public Facilities, shall prepare a 06 comprehensive long-range plan for the development and improvement of the Alaska 07 marine highway system and shall revise and update the plan at least every five years. 08 The authority shall submit the plan and revisions and updates of the plan to the 09 legislature. 10 Article 3. Acquisition of Property. 11 Sec. 19.55.210. Acquisition of land and easements. The authority, as part 12 of the cost of constructing, maintaining, or improving the marine highway system, may 13 acquire by purchase, gift, or exchange land in fee simple or easements that it considers 14 necessary and reasonable for either temporary or permanent public use. By the same 15 means, the authority may obtain material, including clay, gravel, sand, or rock, or the 16 land necessary to obtain the material, including access to it. The authority may acquire 17 the land or materials notwithstanding the fact that title to it is vested in the state or a 18 department, agency, commission, or institution of the state. 19 Sec. 19.55.220. Authority to purchase property for the purpose of 20 exchange. When a majority of the directors of the authority declares that it is in the 21 interest of the state, the authority may acquire by purchase, gift, or exchange privately 22 or publicly owned land or an interest in land for the purpose of exchanging the land 23 for privately or publicly owned land that the authority is authorized by law to acquire. 24 Sec. 19.55.230. Disposal of land or rights in land. (a) The authority may 25 vacate land or rights in land acquired for use in the marine highway system by 26 executing and filing a deed in the appropriate recording district. Upon vacating, title 27 reverts to the persons, heirs, successors, or assigns in whom it was vested at the time 28 of the taking. 29 (b) The authority may transfer land not considered necessary for use in the 30 marine highway system to the Department of Natural Resources for disposal. The 31 proceeds of disposal by the Department of Natural Resources shall be credited to the
01 funds from which the purchase was originally made. 02 Article 4. Vessels and Ferry Terminal Facilities. 03 Sec. 19.55.310. Ferry terminal facilities. (a) The authority may construct, 04 purchase, or lease ferry terminal facilities at locations it selects for the loading and 05 unloading of passengers and vehicles under their own power, on and off ferries. The 06 authority shall repair and maintain those facilities that it owns. Construction and 07 purchasing under this section are governed by AS 36.30 (State Procurement Code), 08 except as otherwise provided by law. 09 (b) The authority may connect ferry terminal facilities with local highway 10 systems. 11 (c) The authority may adopt regulations governing the use of ferry terminal 12 facilities by the public that it considers necessary and proper in the public interest. 13 The authority may charge a fee for the use of ferry terminal facilities, whether the use 14 is under a permit or otherwise, and whether the use is by one or more individuals. 15 (d) A ferry terminal facility in existence and serving the public on January 1, 16 1959, is not subject to (a) - (c) of this section. 17 Sec. 19.55.320. Naming of vessel or facility. (a) A vessel or facility 18 constructed or acquired by the authority must be named by law. 19 (b) A maritime vessel must bear the name of an Alaska glacier. 20 (c) A vessel used principally on the inland waterways of the state must bear 21 the name of an historical vessel that used the rivers of the state. 22 Article 5. Budget and Revenue. 23 Sec. 19.55.410. Budget and appropriations. The authority shall submit its 24 annual budget to the legislature through the governor as provided for state agencies by 25 AS 37.07 (Executive Budget Act). The authority shall expend money appropriated by 26 the legislature as authorized by the legislature. 27 Article 6. General Provisions. 28 Sec. 19.55.910. Annual report. By January 15 of each year, the board of 29 directors of the authority shall submit to the governor and the legislature a 30 comprehensive report describing the operations, income, and expenditures for the 31 preceding fiscal year.
01 Sec. 19.55.920. Annual audit. The authority shall have its financial records 02 audited annually by a certified public accountant. The legislative auditor may 03 prescribe the form and content of the financial records of the authority and shall have 04 access to those records at any time. 05 Sec. 19.55.990. Definitions. In this chapter, unless the context requires 06 otherwise, 07 (1) "authority" means the Alaska Marine Highway Authority; 08 (2) "ferry" means a vessel used in the common carriage of passengers 09 and vehicles in intrastate or interstate commerce. 10 Sec. 19.55.995. Short title. This chapter may be cited as the Alaska Marine 11 Highway Authority Act. 12 * Sec. 3. AS 03.53.010(a) is amended to read: 13 (a) An animal may not be transported into the state aboard a ferry operated by 14 the Alaska Marine Highway Authority [DIVISION OF MARINE 15 TRANSPORTATION OF THE DEPARTMENT OF TRANSPORTATION AND 16 PUBLIC FACILITIES] unless the animal's owner, custodian, or attendant possesses 17 a valid health certificate for the animal. This certificate shall accompany the animal 18 or be in the possession of the animal's owner, custodian, or attendant aboard the ferry 19 and shall be presented when requested by an employee of the state ferry system at the 20 time the owner, custodian, or attendant makes arrangements to transport the animal, 21 boards the ferry with the animal, or at any other time. 22 * Sec. 4. AS 18.65.755(a) is amended to read: 23 (a) A permittee may not carry a concealed handgun into 24 (1) a law enforcement or correctional facility; 25 (2) or on school grounds or a school bus; in this paragraph, "school 26 grounds" has the meaning given in AS 11.71.900; 27 (3) a courthouse or a courtroom of this state, unless the permittee 28 (A) is a judge; or 29 (B) has been authorized to possess a concealed handgun by a 30 judge presiding at that courthouse or courtroom; 31 (4) a building housing only state or federal offices or the offices of a
01 political subdivision of the state, except as authorized under (3) of this subsection; 02 (5) an office of the state, federal government, or of a political 03 subdivision of the state that is not located in a building described in (4) of this 04 subsection; 05 (6) a passenger loading or unloading area of an airline terminal; 06 (7) a vessel of the Alaska Marine Highway Authority [MARINE 07 HIGHWAY SYSTEM]; 08 (8) a facility providing services to victims of domestic violence or 09 sexual assault; 10 (9) a residence where notice that carrying a concealed handgun is 11 prohibited has been given by the posting of a conspicuous notice or by oral statement 12 by the resident to the permittee; 13 (10) a meeting of a business, charitable, or other organization or entity 14 where notice that carrying a concealed handgun is prohibited has been given by the 15 posting of conspicuous notice; 16 (11) a financial institution; in this paragraph, "financial institution" 17 means a bank, savings bank, savings association, credit union, or other institution 18 regulated by the Department of Commerce and Economic Development under AS 06; 19 (12) another place where the possession of a deadly weapon or firearm 20 is prohibited by law; or 21 (13) a municipality or established village that has prohibited the 22 possession of concealed handguns by a permit under AS 18.65.780 - 18.65.785. 23 * Sec. 5. AS 19.65.050 is amended to read: 24 Sec. 19.65.050. Legislative findings, purpose, and intent. (a) The 25 legislature finds that 26 (1) the Alaska Marine Highway Authority [MARINE HIGHWAY 27 SYSTEM] is an essential part of the state transportation system, and that it warrants 28 continued and predictable state support; 29 (2) many communities' economies are dependent on a steady and stable 30 marine highway system service level; 31 (3) the state's tourism industry is greatly enhanced by a dependable
01 marine highway transportation network; and 02 (4) efficient and prudent management of the authority [SYSTEM] will 03 benefit the state's economy and foster economic development. 04 (b) It is the purpose of AS 19.65.050 - 19.65.100 to 05 (1) enable the authority [ALASKA MARINE HIGHWAY SYSTEM] 06 to manage and operate in a manner that will enhance performance and accountability 07 by allowing the authority [SYSTEM] to account for and spend its generated revenue; 08 (2) provide the management tools necessary to efficiently operate the 09 authority [ALASKA MARINE HIGHWAY SYSTEM]; 10 (3) within constitutional constraints, provide for a predictable funding 11 base for authority [SYSTEM] operations; and 12 (4) provide for predictability and stability in the service level furnished 13 to communities served by the authority [SYSTEM]. 14 (c) It is the intent of AS 19.65.050 - 19.65.100 to 15 (1) encourage prudent administration through cost management and 16 accurate budgeting by the board of directors [MANAGERS] of the authority 17 [ALASKA MARINE HIGHWAY SYSTEM]; 18 (2) increase revenue from the operation of the authority [SYSTEM] 19 consistent with the public interest, increase service consistent with sound fiscal policy, 20 and assist the prudent management and operation of the authority [SYSTEM]; and 21 (3) achieve stability in the level of service communities can anticipate 22 through accurate planning and scheduling. 23 * Sec. 6. AS 19.65.060 is amended to read: 24 Sec. 19.65.060. Alaska Marine Highway Authority [MARINE HIGHWAY 25 SYSTEM] fund. (a) There is created, as a special account in the general fund, the 26 Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] fund, into 27 which shall be deposited 28 (1) the gross revenue of the authority [ALASKA MARINE 29 HIGHWAY SYSTEM]; 30 (2) money that is appropriated to the [ALASKA MARINE HIGHWAY 31 SYSTEM] fund by the legislature in an amount that is consistent from year to year and
01 is the amount necessary, after consideration of gross revenue, to provide stable services 02 to the public consistent with the provisions of AS 19.65.050(b)(4); unless otherwise 03 provided by the legislature, appropriations to the fund under this paragraph [, 04 WHICH APPROPRIATIONS] are not one-year appropriations and [THE BALANCES 05 OF WHICH] do not lapse under AS 37.25.010; and 06 (3) any other money that is appropriated to the [ALASKA MARINE 07 HIGHWAY SYSTEM] fund by the legislature; unless otherwise provided by the 08 legislature, appropriations to the fund under this paragraph [, WHICH 09 APPROPRIATIONS] are not one-year appropriations and [THE BALANCES OF 10 WHICH] do not lapse under AS 37.25.010. 11 (b) Nothing in AS 19.65.050 - 19.65.100 [THIS CHAPTER] exempts money 12 deposited into the [ALASKA MARINE HIGHWAY SYSTEM] fund from the 13 requirements of AS 37.07 (Executive Budget Act) or dedicates that money for a 14 specific purpose. 15 * Sec. 7. AS 19.65.070 is amended to read: 16 Sec. 19.65.070. Revenue accounting. (a) The authority [ALASKA 17 MARINE HIGHWAY SYSTEM] shall account for and remit to the Department of 18 Revenue in accordance with AS 37.10.050 all gross revenue generated from the 19 operation of the authority [ALASKA MARINE HIGHWAY SYSTEM] during each 20 fiscal year [ANNUAL OPERATING CYCLE]. The money shall then be deposited 21 in the Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] fund. 22 (b) The authority [ALASKA MARINE HIGHWAY SYSTEM] shall prepare 23 a written report, not [NO] later than the 10th day of each regular legislative session, 24 regarding the previous fiscal year [ANNUAL OPERATING CYCLE] and notify the 25 legislature that the report is available. The report must identify 26 (1) gross revenue generated during the previous fiscal year [ANNUAL 27 OPERATING CYCLE]; 28 (2) gross revenue generated during the current fiscal year [ANNUAL 29 OPERATING CYCLE] and an estimate of gross revenue for the remainder of the 30 current fiscal year [ANNUAL OPERATING CYCLE]; 31 (3) projections of the gross revenue to be generated during the next
01 fiscal year [ANNUAL OPERATING CYCLE]; and 02 (4) the difference between previous gross revenue estimates prepared 03 under this section and the revenues actually generated. 04 (c) The Department of Revenue shall prepare a written report, no later than the 05 10th legislative day of each regular legislative session, regarding the earnings on gross 06 revenue of the authority [ALASKA MARINE HIGHWAY SYSTEM] that was 07 deposited into the Alaska Marine Highway Authority [MARINE HIGHWAY 08 SYSTEM] fund during the prior fiscal year and projected earnings on gross revenue 09 of the authority [ALASKA MARINE HIGHWAY SYSTEM] that is projected to be 10 deposited into the Alaska Marine Highway Authority [MARINE HIGHWAY 11 SYSTEM] fund for the current fiscal year and the next fiscal year. The Department 12 of Revenue shall notify the legislature that the report is available. 13 * Sec. 8. AS 19.65.080 is amended to read: 14 Sec. 19.65.080. Annual appropriation. (a) Commencing with appropriations 15 for the fiscal year that begins July 1, 1991, on an annual basis and under AS 37.07 16 (Executive Budget Act), the legislature may appropriate amounts from the [ALASKA 17 MARINE HIGHWAY SYSTEM] fund for management and operation of [TO] the 18 authority [ALASKA MARINE HIGHWAY SYSTEM]. 19 (b) The authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC 20 FACILITIES] may request the legislature to appropriate money from the [ALASKA 21 MARINE HIGHWAY SYSTEM] fund to the authority [MARINE HIGHWAY 22 SYSTEM] for capital improvements [,] if 23 (1) the appropriation under (a) of this section has been made; 24 (2) the amount in the fund, without regard to the appropriation under 25 (a) of this section, exceeds the total of gross revenue deposited in the fund and the 26 general fund appropriations under AS 19.65.060(a)(2) by 10 percent; and 27 (3) the amount requested for appropriation under this subsection does 28 not exceed 50 percent of the balance remaining after the appropriation for annual 29 management and operations is made under (a) of this section. 30 (c) The unexpended and unobligated balance of money appropriated from the 31 [ALASKA MARINE HIGHWAY SYSTEM] fund lapses into the [ALASKA MARINE
01 HIGHWAY SYSTEM] fund at the end of the fiscal year for which it was appropriated. 02 * Sec. 9. AS 19.65.100 is amended to read: 03 Sec. 19.65.100. DEFINITIONS. In AS 19.65.050 - 19.65.100, 04 (1) "authority" means the Alaska Marine Highway Authority 05 ["ANNUAL OPERATING CYCLE" MEANS THE ANNUAL STATE FISCAL YEAR 06 BEGINNING ON JULY 1 AND ENDING AT MIDNIGHT ON THE FOLLOWING 07 JUNE 30]; 08 (2) "fiscal year" has the meaning given in AS 37.07.120; 09 (3) "fund" means the Alaska Marine Highway Authority fund; 10 (4) "gross revenue" means all money, except money refunded to ticket 11 holders and others for unused services, that is generated from the operation of the 12 authority [ALASKA MARINE HIGHWAY SYSTEM], including that derived from 13 vessel operations and uses of authority [ALASKA MARINE HIGHWAY SYSTEM] 14 facilities. 15 * Sec. 10. AS 23.40.040 is amended to read: 16 Sec. 23.40.040. Collective bargaining agreement. The Alaska Marine 17 Highway Authority [COMMISSIONER OF TRANSPORTATION AND PUBLIC 18 FACILITIES] or an authorized representative, in accordance with AS 23.40.020 - 19 23.40.030, may negotiate and enter into collective bargaining agreements concerning 20 wages, hours, working conditions, and other employment benefits with the employees 21 of the authority [DIVISION OF MARINE TRANSPORTATION] engaged in 22 operating the state ferry system as masters or members of the crews of vessels or their 23 bargaining agent. [A COLLECTIVE BARGAINING AGREEMENT IS NOT FINAL 24 WITHOUT THE CONCURRENCE OF THE COMMISSIONER OF 25 TRANSPORTATION AND PUBLIC FACILITIES.] The authority 26 [COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES] may make 27 provision in the collective bargaining agreement for the settlement of labor disputes 28 by arbitration. 29 * Sec. 11. AS 29.35.722 is amended to read: 30 Sec. 29.35.722. Ownership or operation of certain state facilities 31 prohibited. The state may not, without the approval of the legislature,
01 (1) convey or transfer the assets of the Alaska Marine Highway 02 Authority [MARINE HIGHWAY SYSTEM], the Anchorage or Fairbanks international 03 airports, or any other state asset, except undeveloped state land as provided in 04 AS 38.05.810 or surplused property, to an authority; or 05 (2) enter into an agreement with an authority under which the authority 06 would operate the Alaska marine highway system, the Anchorage or Fairbanks 07 international airports, or any other state facility, system, or function that employs one 08 or more employees. 09 * Sec. 12. AS 35.10.015(c) is amended to read: 10 (c) In this section, "public facilities" includes vessels owned by the state and 11 operated by the Alaska Marine Highway Authority [DIVISION OF MARINE 12 TRANSPORTATION OF THE DEPARTMENT AS A PART OF THE ALASKA 13 MARINE HIGHWAY SYSTEM]. All ferries owned or operated by the state shall be 14 equipped with elevators or other passenger lifting equipment, ramps, or other facilities 15 and devices to ensure that these vessels are accessible to and usable by physically 16 handicapped, aged, or infirm passengers. In this subsection, "accessible to and usable 17 by" means that a physically handicapped, aged, or infirm passenger can board, 18 disembark, and move between decks and about the public areas aboard a state ferry 19 with personal comfort and safety, and with safety to, other passengers and members 20 of the crew. 21 * Sec. 13. AS 35.10.015(d) is amended to read: 22 (d) A [AFTER JUNE 25, 1976, A] ferry may not be constructed, lengthened, 23 completely renovated, or purchased for use or entered into service by the Alaska 24 Marine Highway Authority [DIVISION OF MARINE TRANSPORTATION OF THE 25 DEPARTMENT AS A PART OF THE ALASKA MARINE HIGHWAY SYSTEM] 26 that does not include adequate facilities and devices to ensure that the vessel is 27 accessible to and usable by physically handicapped, aged, or infirm passengers. Some 28 staterooms and all restrooms, indoor passageways, outdoor weather decks, and other 29 public areas aboard the vessel shall be so designed and constructed as to permit access 30 and use by physically handicapped, aged, or infirm passengers, including [BUT NOT 31 LIMITED TO] those persons occupying a wheelchair.
01 * Sec. 14. AS 35.27.020(c) is amended to read: 02 (c) At least one percent or, in the case of a rural school facility, at least one- 03 half of one percent of the construction cost of a building or facility approved for construction 04 by the legislature after September 1, 1977, will be reserved for the following purposes: the 05 design, construction, mounting, and administration of works of art in a school, office building, 06 court building, vessel of the Alaska Marine Highway Authority [MARINE HIGHWAY 07 SYSTEM], or other building or facility that [WHICH] is subject to substantial public use. 08 * Sec. 15. AS 35.27 is amended by adding a new section to read: 09 Sec. 35.27.025. Application to Alaska Marine Highway Authority. This 10 chapter applies to the Alaska Marine Highway Authority. Compliance with this 11 chapter is the sole responsibility of the authority with respect to the vessels, public 12 buildings, and facilities of the authority. 13 * Sec. 16. AS 35.27.030(1) is amended to read: 14 (1) "building" or "facility" means a permanent improvement constructed 15 by the department or authority; the term 16 (A) includes, but is not limited to, 17 (i) schools, office buildings, and court buildings; 18 (ii) other buildings that [WHICH] the commissioner 19 determines are designed for substantial public use; 20 (iii) boats and vessels of the authority [MARINE 21 HIGHWAY SYSTEM]; 22 (iv) transportation facilities that [WHICH] accommodate 23 traveling passengers; 24 (B) excludes other transportation facilities; 25 * Sec. 17. AS 35.27.030 is amended by adding a new paragraph to read: 26 (4) "authority" means the Alaska Marine Highway Authority. 27 * Sec. 18. AS 36.30.015(g) is amended to read: 28 (g) The Alaska Marine Highway Authority [DEPARTMENT OF 29 TRANSPORTATION AND PUBLIC FACILITIES] shall adopt regulations to manage 30 the procurement of supplies, services, professional services, and construction for the 31 repair, maintenance, and reconstruction of vessels, docking facilities, and passenger and
01 vehicle transfer facilities of the Alaska marine highway system. The regulations must 02 be based on principles of competitive procurement consistent with this chapter to 03 satisfy the special requirements of the Alaska marine highway system as determined 04 by the Alaska Marine Highway Authority [DEPARTMENT OF 05 TRANSPORTATION AND PUBLIC FACILITIES]. 06 * Sec. 19. AS 36.30.850(b)(29) is amended to read: 07 (29) construction of new vessels by the Alaska Marine Highway 08 Authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES] 09 for the Alaska marine highway system; 10 * Sec. 20. AS 36.30.990(1) is amended to read: 11 (1) "agency" 12 (A) means a department, institution, board, commission, 13 division, authority, public corporation, the Alaska Pioneers' Home, or other 14 administrative unit of the executive branch of state government; 15 (B) does not include 16 (i) the University of Alaska; 17 (ii) the Alaska Railroad Corporation; 18 (iii) the Alaska Housing Finance Corporation; 19 (iv) a regional Native housing authority created under 20 AS 18.55.996 or a regional electrical authority created under 21 AS 18.57.020; 22 (v) the Alaska Marine Highway Authority 23 [DEPARTMENT OF TRANSPORTATION AND PUBLIC 24 FACILITIES], in regard to the repair, maintenance, and reconstruction 25 of vessels, docking facilities, and passenger and vehicle transfer 26 facilities of the Alaska marine highway system; 27 (vi) the Alaska Aerospace Development Corporation; 28 (vii) the Alaska State Pension Investment Board; 29 (viii) the Alaska Seafood Marketing Institute; 30 * Sec. 21. AS 36.90.050(a) is amended to read: 31 (a) Marine vessels owned by the state shall be maintained and repaired at a
01 shipyard facility located in the state unless the commissioner of the department that 02 operates the marine vessel determines in writing that there is no shipyard facility 03 located in the state that is equipped or qualified to perform the particular maintenance 04 or repair required, or, after taking into consideration the Alaska bidder preference set 05 out in AS 36.30.170 and the interport differential, as determined by the Alaska Marine 06 Highway Authority under this section [MARINE HIGHWAY SYSTEM], that the 07 proposed cost of the maintenance or repair work is unreasonable. In making the 08 determination, the commissioner shall consider, and document in writing, the 09 direct and indirect benefits to the economy and labor force in the state that would 10 be derived by performing the vessel maintenance and repair at a facility in the 11 state. In this subsection, "commissioner of the department that operates the marine 12 vessel" includes the president of the University of Alaska with regard to a vessel 13 operated by the university and the chief executive officer of the Alaska Marine 14 Highway Authority with regard to a vessel operated by the Alaska Marine 15 Highway Authority. 16 * Sec. 22. AS 36.90.050 is amended by adding new subsections to read: 17 (c) When determining whether a marine vessel should be maintained or 18 repaired at a shipyard facility located in the state, the commissioner of the department 19 that operates the vessel shall use the lower of the budgeted cost of the maintenance or 20 repair work or the anticipated actual cost of the maintenance or repair work in 21 evaluating whether the proposed cost of the maintenance or repair work is reasonable. 22 (d) In this section, "interport differential" includes all costs related to the 23 performance of the maintenance or repair work of a marine vessel at a shipyard located 24 outside of the state, including labor and travel costs incurred moving the vessel from 25 its Alaska home port to the shipyard outside of the state; additional fuel consumption; 26 cost of consumables including lubricants and other engine, deck, and galley stores; 27 maintenance costs incurred during running time; cost of crew transfers including airfare 28 between Alaska and the shipyard; wages; crew room and board; per diem for other 29 employees; agency overhead; dockage or port charges incurred while the maintenance 30 or repair work is being conducted; and costs related to loading, bunkering, and 31 preparing for the voyages to and from the vessel's Alaska home port.
01 * Sec. 23. AS 37.05.550 is amended to read: 02 Sec. 37.05.550. Alaska Marine Highway Authority [MARINE HIGHWAY 03 SYSTEM] vessel replacement fund. (a) There is in the general fund the Alaska 04 Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel replacement 05 fund. The fund consists of money appropriated to it by the legislature. Money 06 appropriated to the fund does not lapse. The Department of Revenue shall manage the 07 fund. Interest received on money in the fund shall be accounted for separately and may 08 be appropriated into the fund annually. The legislature may appropriate money from 09 the fund for refurbishment of existing state ferry vessels, acquisition of additional state 10 ferry vessels, or replacement of retired or outmoded state ferry vessels. 11 (b) The legislature may appropriate to the fund money received by the state 12 as Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] program 13 receipts or from a settlement or final judicial determination of the Dinkum Sands case 14 (United States v. Alaska) [AND THE NORTH SLOPE ROYALTY CASE (STATE V. 15 AMERADA HESS, ET AL.)] and not deposited into the Alaska permanent fund under 16 AS 37.13.010(a)(1) or (2) or into the public school trust fund under AS 37.14.150. 17 (c) The Department of Revenue shall prepare a written report, no later than the 18 10th legislative day of each regular legislative session, regarding the earnings of the 19 Alaska Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel 20 replacement fund during the prior fiscal year and projected earnings of the Alaska 21 Marine Highway Authority [MARINE HIGHWAY SYSTEM] vessel replacement 22 fund for the current fiscal year and the next fiscal year. The Department of Revenue 23 shall notify the legislature that the report is available. 24 * Sec. 24. AS 39.20.310(8) is amended to read: 25 (8) persons employed by the Alaska Marine Highway Authority 26 [DIVISION OF MARINE TRANSPORTATION] as masters and members of the crews 27 operating the state ferry system who are covered by collective bargaining agreements 28 as provided in AS 23.40.040, except as expressly provided by law; 29 * Sec. 25. AS 39.25.110(11) is amended to read: 30 (11) the officers and employees of the following boards, commissions, 31 and authorities:
01 (A) [REPEALED 02 (B)] Alaska Permanent Fund Corporation; 03 (B) [(C)] Alaska Industrial Development and Export Authority; 04 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 05 (D) [(E)] Alaska Commission on Postsecondary Education; 06 (E) [(F)] Alaska Aerospace Development Corporation; 07 (F) Alaska Marine Highway Authority; 08 * Sec. 26. AS 39.30.150(b) is amended to read: 09 (b) Employees of the Alaska Marine Highway Authority [DIVISION OF 10 MARINE TRANSPORTATION] included in the public employees' retirement system 11 through the process of collective bargaining under AS 39.35.680(21)(D) may, under 12 the terms of a collective bargaining agreement, utilize contributions made under (a) of 13 this section on their behalf to offset the costs of inclusion in the public employees' 14 retirement system; however, 15 (1) the state is placed under no obligation to continue making 16 contributions under this section if the state resumes participation in the federal social 17 security system; 18 (2) the bargaining agreement must provide a mechanism for satisfying 19 any residual liabilities that might exist if the state resumes participation in the federal 20 social security system; and 21 (3) funds contributed under (a) of this section on behalf of employees 22 who are not covered by maritime union contracts may not be obligated or expended 23 to pay any costs associated with the inclusion of marine transportation employees in 24 the public employees' retirement system. 25 * Sec. 27. AS 39.35.680(21) is amended to read: 26 (21) "member" or "employee" 27 (A) means a person eligible to participate in the system and 28 who is covered by the system; 29 (B) includes 30 (i) active member; 31 (ii) inactive member;
01 (iii) vested member; 02 (iv) deferred vested member; 03 (v) non-vested member; 04 (vi) disabled member; 05 (vii) retired member; 06 (viii) an elected public officer under AS 39.35.381; 07 (C) does not include 08 (i) former members; 09 (ii) persons compensated on a contractual or fee basis; 10 (iii) casual or emergency workers or nonpermanent 11 employees as defined in AS 39.25.200; 12 (iv) persons covered by the Alaska Teachers' Retirement 13 System except as provided under AS 39.35.131 and 39.35.381, or 14 persons covered by the optional university retirement program; 15 (v) employees of the Alaska Marine Highway 16 Authority [DIVISION OF MARINE TRANSPORTATION] engaged 17 in operating the state ferry system who are covered by a union or group 18 retirement system to which the state makes contributions; 19 (vi) justices of the supreme court or judges of the court 20 of appeals or of the superior or district courts of Alaska; 21 (vii) the administrative director of courts appointed 22 under art. IV, sec. 16 of the state constitution unless the director 23 becomes a member under AS 39.35.158; and 24 (viii) members of the elected public officers' retirement 25 system (former AS 39.37); 26 (D) may include employees of the Alaska Marine Highway 27 Authority [DIVISION OF MARINE TRANSPORTATION] excluded under 28 (C)(v) of this paragraph provided that 29 (i) the State of Alaska formally agrees to their inclusion 30 through the process of collective bargaining; and 31 (ii) no collective bargaining agreement has the effect of
01 obligating contributions made by the state under AS 39.30.150 in the 02 event the state resumes participation in the federal social security 03 system; 04 * Sec. 28. AS 39.50.200(b) is amended by adding a new paragraph to read: 05 (56) Alaska Marine Highway Authority (AS 19.55.010). 06 * Sec. 29. AS 44.42.020(a)(1) is amended to read: 07 (1) plan, design, construct, and maintain all state modes of 08 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 09 and similar facilities, except that the department is not responsible for planning, 10 design, construction, or maintenance of transportation modes or facilities under 11 the jurisdiction of the Alaska Marine Highway Authority; 12 * Sec. 30. AS 44.42.020(a)(7) is amended to read: 13 (7) manage, operate, and maintain state transportation facilities and all 14 docks, floats, breakwaters, and buildings, including all state highways, vessels, 15 railroads, pipelines, airports, and aviation facilities, except that the department is not 16 responsible for management, operation, or maintenance of transportation 17 facilities, vessels, or equipment under this jurisdiction of the Alaska Marine 18 Highway Authority; 19 * Sec. 31. TRANSFER OF APPROPRIATIONS, EMPLOYEES, AND ASSETS TO 20 ALASKA MARINE HIGHWAY AUTHORITY. (a) Employees of the Department of 21 Transportation and Public Facilities assigned to the management, operation, and maintenance 22 of the Alaska marine highway system on the effective date of this section are transferred to 23 the Alaska Marine Highway Authority as state employees of the authority. The commissioner 24 of transportation and public facilities shall determine which employees are transferred to the 25 authority. An employee who is transferred to the authority under this subsection shall 26 continue to participate without interruption in the supplemental employee benefits program 27 under AS 39.30.150 - 39.30.180 and in the public employees' retirement system under 28 AS 39.35 if the employee was a participant in these programs on the day before the employee 29 was transferred to the authority. 30 (b) Nothing in this Act terminates or modifies recognition of an exclusive bargaining 31 representative or a collective bargaining agreement that is in effect on the effective date of this
01 Act. The Alaska Marine Highway Authority shall abide by the collective bargaining 02 agreements that are in effect for employees transferred to the authority on the date of transfer. 03 A collective bargaining agreement covering employees transferred under this Act shall remain 04 in effect for the term of the agreement unless the agreement is renegotiated by the parties. 05 (c) The unexpended and unobligated balances of operating and capital appropriations 06 for the Department of Transportation and Public Facilities, Alaska marine highway system, 07 shall be transferred to the Alaska Marine Highway Authority. 08 (d) The personal property assets and real property assets, including ferries, equipment, 09 buildings, and associated facilities, of the Department of Transportation and Public Facilities, 10 Alaska marine highway system, shall be transferred to the Alaska Marine Highway Authority. 11 * Sec. 32. INITIAL APPOINTMENT OF MEMBERS OF THE ALASKA MARINE 12 HIGHWAY AUTHORITY. (a) Notwithstanding AS 19.55.020(b), added by sec. 2 of this 13 Act, and AS 39.05.055, the initially appointed members of the board of directors of the Alaska 14 Marine Highway Authority shall be appointed by the governor to terms as follows: one 15 member serves for one year, one member serves for two years, one member serves for three 16 years, one member serves for four years, and two members serve for five years. 17 (b) The governor shall appoint the initial members of the board of directors of the 18 Alaska Marine Highway Authority, as provided for under AS 19.55.020(a), added by sec. 2 19 of this Act, before December 1, 1997. 20 * Sec. 33. AS 19.65.011, 19.65.020, 19.65.030; and AS 39.25.110(16) are repealed. 21 * Sec. 34. Section 5, ch. 94, SLA 1992, is repealed. 22 * Sec. 35. Sections 1, 21, 22, 32, and 34 of this Act take effect immediately under 23 AS 01.10.070(c). 24 * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect January 1, 1998.