CSSB 271(JUD): "An Act establishing the Alaska Marine Highway Authority; establishing the marine highway transportation fund; relating to ferries and ferry terminals; and providing for an effective date."
00 CS FOR SENATE BILL NO. 271(JUD) 01 "An Act establishing the Alaska Marine Highway Authority; establishing the marine 02 highway transportation fund; relating to ferries and ferry terminals; and providing for 03 an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 PURPOSE. The purpose of this Act is to establish an authority for the operation, 08 management, planning, construction, and maintenance of the Alaska marine highway system. 09 The authority shall be the exclusive state entity directly associated with the operation, 10 management, planning, construction, and maintenance for the Alaska marine highway system. 11 * Sec. 2. AS 19 is amended by adding a new chapter to read: 12 Chapter 55. Alaska Marine Highway Authority. 13 Article 1. Creation and Organization. 14 Sec. 19.55.010. Alaska Marine Highway Authority. (a) The Alaska Marine
01 Highway Authority is established. The authority is a public corporation of the state. 02 The authority is an instrumentality of the state in the Department of Transportation 03 and Public Facilities but has a legal existence independent of and separate from the 04 state and has continuing succession until its existence is terminated by law. 05 (b) The authority shall operate the Alaska marine highway system. 06 (c) The powers of the authority are vested in the board of directors of the 07 authority. 08 (d) The continued operation of the Alaska marine highway system as provided 09 in this chapter is an essential government function of the state. 10 Sec. 19.55.020. Directors. (a) The board of directors of the authority consists 11 of seven voting directors appointed by the governor. The commissioner of 12 transportation and public facilities is an ex officio, nonvoting member of the board. 13 Appointed directors must include 14 (1) four residents who have a significant high level of experience in 15 maritime matters in the state; 16 (2) one resident who is a member of a union that represents employees 17 of the Alaska marine highway system; and 18 (3) two public members who are residents. 19 (b) The appointed directors serve staggered five-year terms and may be 20 removed by the governor only for cause. Each appointed director shall hold office for 21 the term of the director's appointment and until a successor is appointed and qualified. 22 A director is qualified for reappointment. A vacancy in a directorship occurring other 23 than by expiration of term shall be filled in the same manner as the original 24 appointment but only for the unexpired term. 25 (c) The appointed directors shall comply with AS 39.50 (conflict of interest). 26 Each director before entering upon the director's duties shall subscribe to an oath to 27 perform the duties of office faithfully, impartially, and justly to the best of the 28 director's ability. A record of the oath shall be filed with the Office of the Governor. 29 (d) An appointed director is entitled to compensation at a rate of $350 for each 30 day the director is engaged in actual performance of duties under this chapter. The 31 board of directors of the authority may provide by regulation for compensation for
01 partial days for an appointed director. In addition, an appointed director is entitled to 02 per diem and travel expenses authorized for boards and commissions under 03 AS 39.20.180. 04 Sec. 19.55.030. Officers and quorum. The directors shall elect one of the 05 appointed directors as chair of the board of directors. The directors shall elect a 06 secretary and a treasurer who need not be directors, and the same person may be 07 elected to serve both as secretary and treasurer. Four voting directors constitute a 08 quorum of the board of directors. The board of directors may take action and adopt 09 motions and resolutions at a meeting by the affirmative vote of at least four voting 10 directors. A vacancy in the board of directors of the authority does not impair the 11 right of a quorum to exercise all the powers and perform all the duties of 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. The chief executive officer 14 may, with the approval of the board, select and employ additional administrative staff 15 and officers as necessary to administer the operations of the authority under this 16 chapter. 17 (b) All officers and employees of the authority are in the exempt service under 18 AS 39.25.110. 19 (c) In addition to its staff and employees under this chapter, the board of 20 directors may contract for and engage the services of consultants and professional, 21 technical, and financial advisors the authority considers necessary for the purpose of 22 developing information, conducting hearings, studies, investigations, or other 23 proceedings, or otherwise exercising its powers. 24 Sec. 19.55.050. Audit. (a) The board of directors shall have the financial 25 records of the authority audited annually by an independent certified public 26 accountant. 27 (b) The authority shall make all of its financial records available for 28 examination by the legislative auditor or by an auditor appointed by the governor. 29 Article 2. Powers and Duties. 30 Sec. 19.55.110. Powers of authority. (a) In addition to other powers granted 31 in this chapter, the authority may
01 (1) sue and be sued; 02 (2) adopt and alter an official seal; 03 (3) adopt and enforce policies for the conduct of its business and for 04 the use of its services and facilities; 05 (4) maintain offices at a place in the state and at places out of the state 06 that are served by the Alaska marine highway system; 07 (5) establish terms and conditions of employment by the authority and 08 conduct or designate a representative to conduct labor negotiations with employees; 09 (6) subject to appropriation by the legislature, acquire, hold, use, and 10 dispose of its income, revenues, funds, and money; 11 (7) acquire, hold, use, lease, rent, construct, and dispose of personal 12 property for its purposes, except that the authority may dispose of a ferry only on 13 approval by the legislature by law; 14 (8) acquire, hold, use, lease, or rent real property and dispose of real 15 property under AS 19.55.210 - 19.55.230; 16 (9) modify scheduled routes after public hearings; 17 (10) do all acts and things necessary, convenient, or desirable to carry 18 out the powers expressly granted or necessarily implied in this chapter. 19 (b) The authority may participate at any stage in any transportation planning 20 process undertaken by the Department of Transportation and Public Facilities that 21 relates to marine transportation. The authority may designate representatives to 22 participate as full members of any transportation planning committee, working group, 23 planning team, rating panel, or similar organization established by the department or 24 required for state participation in federal transportation programs. The department 25 shall include the authority as a full participant in the departmental transportation 26 planning process, including the statewide transportation plan and the statewide 27 transportation improvement program. 28 Sec. 19.55.120. Duties of authority. The authority shall 29 (1) operate, maintain, improve, and extend a system of ferries 30 connecting with the public roads and highways of the state and including the boats, 31 vessels, wharves, docks, approaches, landings, and appurtenances the authority
01 determines necessary or desirable for safe and efficient operation of the ferry system 02 to best serve the public; 03 (2) assist the residents, businesses, and communities of the state in 04 obtaining optimal marine passenger and freight service; 05 (3) schedule vessel sailings to optimize the frequency of service to all 06 ports; 07 (4) encourage and integrate with other public and private carriers to the 08 greatest extent possible to provide ferry service within the state and between Alaska 09 ports and ports outside the state in order to provide optimum service within the state; 10 (5) provide reservation access and marketing information throughout 11 the state; 12 (6) encourage vessel construction, maintenance, and service in the 13 state to the greatest extent possible; 14 (7) employ residents of the state to the greatest extent legally possible; 15 (8) recognize Alaska unions and employee associations to the greatest 16 extent legally possible. 17 Sec. 19.55.130. Use of name authorized. The authority is authorized to 18 operate a ferry system under the name "Alaska Marine Highway System." 19 Sec. 19.55.140. Comprehensive long-range plan. The authority, with the 20 cooperation of the Department of Transportation and Public Facilities, shall prepare a 21 comprehensive long-range plan for the development and improvement of the Alaska 22 marine highway system. The authority shall revise and update the comprehensive plan 23 at least every five years. The authority shall submit the comprehensive plan and 24 revisions and updates of the plan to the legislature. 25 Sec. 19.55.150. Transportation of members of the Alaska organized 26 militia. To the extent that space is available, the authority shall provide free 27 transportation on vessels of the Alaska marine highway system for a member of the 28 Alaska National Guard, the Alaska Naval Militia, or the Alaska State Defense Force 29 who is en route to or from drill, training, or other official militia activities. 30 Article 3. Acquisition and Management of Property. 31 Sec. 19.55.210. Acquisition of land and easements. The authority, as part of
01 the cost of constructing, maintaining, or improving the Alaska marine highway system 02 may acquire by purchase, gift, or exchange land in fee simple or easements that it 03 considers necessary and reasonable for either temporary or permanent public use. By 04 the same means, the authority may obtain material, including clay, gravel, sand, or 05 rock, or the land necessary to obtain the material, including access to it. The authority 06 may acquire the land or materials notwithstanding the fact that title to the land or 07 materials is vested in the state or a department, agency, commission, or institution of 08 the state. 09 Sec. 19.55.220. Authority to purchase property for the purpose of 10 exchange. When the directors of the authority declare that it is in the interest of the 11 state, the authority may acquire by purchase, gift, or exchange privately or publicly 12 owned land or an interest in land for the purpose of exchanging the land for privately 13 or publicly owned land that the authority is authorized by law to acquire for use by the 14 Alaska marine highway system or by the authority. 15 Sec. 19.55.230. Disposal of land or rights in land. (a) The authority may 16 vacate land or rights in land acquired for the Alaska marine highway system by 17 executing and filing a deed in the appropriate recording district. Upon vacating, title 18 reverts to the persons, heirs, successors, or assigns in whom it was vested at the time 19 of the taking. 20 (b) The authority may transfer land, not considered necessary for use by the 21 Alaska marine highway system to the Department of Natural Resources for disposal. 22 The proceeds of disposal by the Department of Natural Resources shall be credited to 23 the funds from which the purchase of the land was originally made. 24 Article 4. Vessels and Ferry Terminal Facilities. 25 Sec. 19.55.310. Ferry terminal facilities. (a) The authority may construct, 26 purchase, or lease ferry terminal facilities at locations the authority selects for the 27 loading and unloading of passengers and vehicles under their own power, on and off 28 ferries. The authority shall repair and maintain those facilities that it owns. 29 Construction and purchasing under this section are governed by AS 36.30 (State 30 Procurement Code), except as otherwise provided by law. 31 (b) The authority may connect ferry terminal facilities with local highway
01 systems. 02 (c) The authority may adopt regulations governing the use of ferry terminal 03 facilities by the public that the authority considers necessary and proper in the public 04 interest. The authority may charge a fee for the use of ferry terminal facilities, 05 whether the use is under a permit or otherwise, and whether the use is by one or more 06 individuals. 07 Sec. 29.55.320. Naming of vessel or facility. (a) A vessel or facility 08 constructed or acquired by the authority under this chapter must be named by law. 09 (b) A maritime vessel must bear the name of an Alaska glacier. 10 (c) A vessel used principally on the inland waterways of the state must bear 11 the name of a historical vessel that used the rivers of the state. 12 Sec. 19.55.330. Annual report. By the 10th day of each regular legislative 13 session, the board of directors of the authority shall submit to the governor and the 14 legislature a comprehensive report describing the operations, income, and 15 expenditures for the Alaska marine highway system for the preceding fiscal year. 16 Article 5. General Provisions. 17 Sec. 19.55.910. Budget and appropriations. The authority shall submit an 18 annual budget for the authority to the legislature through the governor as provided for 19 state agencies by AS 37.07 (Executive Budget Act). The authority shall expend 20 money appropriated by the legislature as authorized by the legislature. 21 Sec. 19.55.990. Definitions. In this chapter, unless the context requires 22 otherwise, 23 (1) "authority" means the Alaska Marine Highway Authority; 24 (2) "ferry" means a vessel used in the common carriage of passengers 25 and vehicles in intrastate, interstate, or international commerce. 26 Sec. 19.55.995. Short title. This chapter may be cited as the Alaska Marine 27 Highway Authority Act. 28 * Sec. 3. AS 03.53.010(a) is amended to read: 29 (a) An animal may not be transported into the state aboard a ferry operated by 30 the Alaska Marine Highway Authority [DIVISION OF MARINE 31 TRANSPORTATION OF THE DEPARTMENT OF TRANSPORTATION AND
01 PUBLIC FACILITIES] unless the animal's owner, custodian, or attendant possesses a 02 valid health certificate for the animal. This certificate shall accompany the animal or 03 be in the possession of the animal's owner, custodian, or attendant aboard the ferry and 04 shall be presented when requested by an employee of the state ferry system at the time 05 the owner, custodian, or attendant makes arrangements to transport the animal, boards 06 the ferry with the animal, or at any other time. 07 * Sec. 4. AS 19.65.050(b) is amended to read: 08 (b) It is the purpose of AS 19.65.050 - 19.65.100 to 09 (1) enable the Alaska Marine Highway Authority [ALASKA 10 MARINE HIGHWAY SYSTEM] to manage and operate the Alaska marine 11 highway system in a manner that will enhance performance and accountability by 12 allowing the system to account for and spend its generated revenue; 13 (2) provide the management tools necessary to efficiently operate the 14 Alaska marine highway system; 15 (3) within constitutional constraints, provide for a predictable funding 16 base for system operations; and 17 (4) provide for predictability and stability in the service level furnished 18 to communities served by the system. 19 * Sec. 5. AS 19.65.050(c) is amended to read: 20 (c) It is the intent of AS 19.65.050 - 19.65.100 to 21 (1) encourage prudent administration through cost management and 22 accurate budgeting by the board of directors [MANAGERS] of the authority 23 [ALASKA MARINE HIGHWAY SYSTEM]; 24 (2) increase revenue from the operation of the system consistent with 25 the public interest, increase service consistent with sound fiscal policy, and assist the 26 prudent management and operation of the system; and 27 (3) achieve stability in the level of service communities can anticipate 28 through accurate planning and scheduling. 29 * Sec. 6. AS 19.65.060 is amended to read: 30 Sec. 19.65.060. Alaska marine highway system fund. (a) There is created, 31 as a special account in the general fund, the Alaska marine highway system fund, into
01 which shall be deposited 02 (1) the gross revenue of the Alaska marine highway system; 03 (2) money that is appropriated to the [ALASKA MARINE 04 HIGHWAY SYSTEM] fund by the legislature in an amount that is consistent from 05 year to year and is the amount necessary, after consideration of gross revenue, to 06 provide stable services to the public consistent with the provisions of 07 AS 19.65.050(b)(4); unless otherwise provided by the legislature, appropriations 08 to the fund under this paragraph [, WHICH APPROPRIATIONS] are not one-year 09 appropriations and [THE BALANCES OF WHICH] do not lapse under AS 37.25.010; 10 and 11 (3) any other money that is appropriated to the [ALASKA MARINE 12 HIGHWAY SYSTEM] fund by the legislature; unless otherwise provided by the 13 legislature, appropriations to the fund under this paragraph [, WHICH 14 APPROPRIATIONS] are not one-year appropriations and [THE BALANCES OF 15 WHICH] do not lapse under AS 37.25.010. 16 (b) Nothing in AS 19.65.050 - 19.65.100 [THIS CHAPTER] exempts money 17 deposited into the [ALASKA MARINE HIGHWAY SYSTEM] fund from the 18 requirements of AS 37.07 (Executive Budget Act) or dedicates that money for a 19 specific purpose. 20 * Sec. 7. AS 19.65.070(a) is amended to read: 21 (a) The authority [ALASKA MARINE HIGHWAY SYSTEM] shall account 22 for and remit to the Department of Revenue in accordance with AS 37.10.050 all gross 23 revenue generated from the operation of the Alaska marine highway system during 24 each fiscal year [ANNUAL OPERATING CYCLE]. The money shall then be 25 deposited in the Alaska marine highway system fund. 26 * Sec. 8. AS 19.65.070(b) is amended to read: 27 (b) The authority [ALASKA MARINE HIGHWAY SYSTEM] shall prepare 28 a written report, not [NO] later than the 10th day of each regular legislative session, 29 regarding the revenues of the Alaska marine highway system [PREVIOUS 30 ANNUAL OPERATING CYCLE] and notify the legislature that the report is 31 available. The report must identify
01 (1) gross revenue generated during the previous fiscal year [ANNUAL 02 OPERATING CYCLE]; 03 (2) gross revenue generated during the current fiscal year [ANNUAL 04 OPERATING CYCLE] and an estimate of gross revenue for the remainder of the 05 current fiscal year [ANNUAL OPERATING CYCLE]; 06 (3) projections of the gross revenue to be generated during the next 07 fiscal year [ANNUAL OPERATING CYCLE]; and 08 (4) the difference between previous gross revenue estimates prepared 09 under this section and the revenues actually generated. 10 * Sec. 9. AS 19.65.080 is amended to read: 11 Sec. 19.65.080. Annual appropriation. (a) Commencing with 12 appropriations for the fiscal year that begins July 1, 1991, on an annual basis and 13 under AS 37.07 (Executive Budget Act), the legislature may appropriate amounts from 14 the [ALASKA MARINE HIGHWAY SYSTEM] fund for management and 15 operation of [TO] the Alaska marine highway system. 16 (b) The authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC 17 FACILITIES] may request the legislature to appropriate money from the [ALASKA 18 MARINE HIGHWAY SYSTEM] fund to the authority [MARINE HIGHWAY 19 SYSTEM] for capital improvements to the Alaska marine highway system [,] if 20 (1) the appropriation under (a) of this section has been made; 21 (2) the amount in the fund, without regard to the appropriation under 22 (a) of this section, exceeds the total of gross revenue deposited in the fund and the 23 general fund appropriations under AS 19.65.060(a)(2) by 10 percent; and 24 (3) the amount requested for appropriation under this subsection does 25 not exceed 50 percent of the balance remaining after the appropriation for annual 26 management and operations is made under (a) of this section. 27 (c) The unexpended and unobligated balance of money appropriated from the 28 [ALASKA MARINE HIGHWAY SYSTEM] fund lapses into the [ALASKA 29 MARINE HIGHWAY SYSTEM] fund at the end of the fiscal year for which it was 30 appropriated. 31 * Sec. 10. AS 19.65.100 is amended to read:
01 Sec. 19.65.100. Definitions. In AS 19.65.050 - 19.65.100, 02 (1) "authority" means the Alaska Marine Highway Authority 03 ["ANNUAL OPERATING CYCLE" MEANS THE ANNUAL STATE FISCAL 04 YEAR BEGINNING ON JULY 1 AND ENDING AT MIDNIGHT ON THE 05 FOLLOWING JUNE 30]; 06 (2) "fiscal year" has the meaning given in AS 37.07.120; 07 (3) "fund" means the Alaska marine highway system fund; 08 (4) "gross revenue" means all money, except money refunded to ticket 09 holders and others for unused services, that is generated from the operation of the 10 Alaska marine highway system, including that derived from vessel operations and uses 11 of Alaska marine highway system facilities. 12 * Sec. 11. AS 23.40.040 is amended to read: 13 Sec. 23.40.040. Collective bargaining agreement. The Alaska Marine 14 Highway Authority [COMMISSIONER OF TRANSPORTATION AND PUBLIC 15 FACILITIES] or an authorized representative, in accordance with AS 23.40.020 - 16 23.40.030, may negotiate and enter into collective bargaining agreements concerning 17 wages, hours, working conditions, and other employment benefits with the employees 18 of the authority [DIVISION OF MARINE TRANSPORTATION] engaged in 19 operating the Alaska marine highway [STATE FERRY] system as masters or 20 members of the crews of vessels or their bargaining agent. [A COLLECTIVE 21 BARGAINING AGREEMENT IS NOT FINAL WITHOUT THE CONCURRENCE 22 OF THE COMMISSIONER OF TRANSPORTATION AND PUBLIC FACILITIES.] 23 The authority [COMMISSIONER OF TRANSPORTATION AND PUBLIC 24 FACILITIES] may make provision in the collective bargaining agreement for the 25 settlement of labor disputes by arbitration. 26 * Sec. 12. AS 29.45.030(a) is amended to read: 27 (a) The following property is exempt from general taxation: 28 (1) municipal property, including property held by a public corporation 29 of a municipality, state property, property of the University of Alaska, property of the 30 marine highway transportation fund, or land that is in the trust established by the 31 Alaska Mental Health Enabling Act of 1956, P.L. 84-830, 70 Stat. 709, except that
01 (A) a private leasehold, contract, or other interest in the 02 property is taxable to the extent of the interest; however, an interest created by 03 a nonexclusive use agreement between the Alaska Industrial Development and 04 Export Authority and a user of an integrated transportation and port facility 05 owned by the authority and initially placed in service before January 1, 1999, 06 is taxable only to the extent of, and for the value associated with, those specific 07 improvements used for lodging purposes; 08 (B) notwithstanding any other provision of law, property 09 acquired by an agency, corporation, or other entity of the state through 10 foreclosure or deed in lieu of foreclosure and retained as an investment of a 11 state entity is taxable; this subparagraph does not apply to federal land granted 12 to the University of Alaska under AS 14.40.380 or 14.40.390, to other land 13 granted to the university by the state to replace land that had been granted 14 under AS 14.40.380 or 14.40.390, or to land conveyed by the state to the 15 university under AS 14.40.365, or to land conveyed by the state to the 16 marine highway transportation fund under AS 37.14.575; 17 (C) an ownership interest of a municipality in real property 18 located outside the municipality acquired after December 31, 1990, is taxable 19 by another municipality; however, a borough may not tax an interest in real 20 property located in the borough and owned by a city in that borough; 21 (2) household furniture and personal effects of members of a 22 household; 23 (3) property used exclusively for nonprofit religious, charitable, 24 cemetery, hospital, or educational purposes; 25 (4) property of a nonbusiness organization composed entirely of 26 persons with 90 days or more of active service in the armed forces of the United States 27 whose conditions of service and separation were other than dishonorable, or the 28 property of an auxiliary of that organization; 29 (5) money on deposit; 30 (6) the real property of certain residents of the state to the extent and 31 subject to the conditions provided in (e) of this section;
01 (7) real property or an interest in real property that is exempt from 02 taxation under 43 U.S.C. 1620(d), as amended; 03 (8) property of a political subdivision, agency, corporation, or other 04 entity of the United States to the extent required by federal law; except that a private 05 leasehold, contract, or other interest in the property is taxable to the extent of that 06 interest; 07 (9) natural resources in place including coal, ore bodies, mineral 08 deposits, and other proven and unproven deposits of valuable materials laid down by 09 natural processes, unharvested aquatic plants and animals, and timber. 10 * Sec. 13. AS 35.10.015(c) is amended to read: 11 (c) In this section, "public facilities" includes vessels owned by the state and 12 operated by the Alaska Marine Highway Authority [DIVISION OF MARINE 13 TRANSPORTATION OF THE DEPARTMENT AS A PART OF THE ALASKA 14 MARINE HIGHWAY SYSTEM]. All ferries owned or operated by the state shall be 15 equipped with elevators or other passenger lifting equipment, ramps, or other facilities 16 and devices to ensure that these vessels are accessible to and usable by physically 17 handicapped, aged, or infirm passengers. In this subsection, "accessible to and usable 18 by" means that a physically handicapped, aged, or infirm passenger can board, 19 disembark, and move between decks and about the public areas aboard a state ferry 20 with personal comfort and safety, and with safety to, other passengers and members of 21 the crew. 22 * Sec. 14. AS 35.10.015(d) is amended to read: 23 (d) A [AFTER JUNE 25, 1976, A] ferry may not be constructed, lengthened, 24 completely renovated, or purchased for use or entered into service by the Alaska 25 Marine Highway Authority [DIVISION OF MARINE TRANSPORTATION OF 26 THE DEPARTMENT AS A PART OF THE ALASKA MARINE HIGHWAY 27 SYSTEM] that does not include adequate facilities and devices to ensure that the 28 vessel is accessible to and usable by physically handicapped, aged, or infirm 29 passengers. Some staterooms and all restrooms, indoor passageways, outdoor weather 30 decks, and other public areas aboard the vessel shall be so designed and constructed as 31 to permit access and use by physically handicapped, aged, or infirm passengers,
01 including [BUT NOT LIMITED TO] those persons occupying a wheelchair. 02 * Sec. 15. AS 35.27.020(c) is amended to read: 03 (c) At least one percent or, in the case of a rural school facility, at least one- 04 half of one percent of the construction cost of a building or facility approved for 05 construction by the legislature after September 1, 1977, will be reserved for the 06 following purposes: the design, construction, mounting, and administration of works 07 of art in a school, office building, court building, [VESSEL OF THE MARINE 08 HIGHWAY SYSTEM,] or other building or facility that [WHICH] is subject to 09 substantial public use. 10 * Sec. 16. AS 35.27 is amended by adding a new section to read: 11 Sec. 35.27.025. Application to Alaska Marine Highway Authority. This 12 chapter applies to the Alaska Marine Highway Authority. Compliance with this 13 chapter is the sole responsibility of the authority with respect to the buildings and 14 facilities of the authority, including the Alaska marine highway system. 15 * Sec. 17. AS 35.27.030(1) is amended to read: 16 (1) "building" or "facility" means a permanent improvement 17 constructed by the department or authority; the term 18 (A) includes, but is not limited to, 19 (i) schools, office buildings, and court buildings; 20 (ii) other buildings that [WHICH] the commissioner 21 determines are designed for substantial public use; 22 (iii) [BOATS AND VESSELS OF THE MARINE 23 HIGHWAY SYSTEM; 24 (iv)] transportation facilities that [WHICH] 25 accommodate traveling passengers; 26 (B) excludes 27 (i) boats and vessels of the Alaska marine highway 28 system; and 29 (ii) other transportation facilities; 30 * Sec. 18. AS 35.27.030 is amended by adding a new paragraph to read: 31 (4) "authority" means the Alaska Marine Highway Authority.
01 * Sec. 19. AS 36.30.015(g) is amended to read: 02 (g) The Alaska Marine Highway Authority [DEPARTMENT OF 03 TRANSPORTATION AND PUBLIC FACILITIES] shall adopt regulations to manage 04 the procurement of supplies, services, professional services, and construction for the 05 repair, maintenance, and reconstruction of vessels, docking facilities, and passenger 06 and vehicle transfer facilities of the Alaska marine highway system. The regulations 07 must be based on principles of competitive procurement consistent with this chapter to 08 satisfy the special requirements of the Alaska marine highway system as determined 09 by the Alaska Marine Highway Authority [DEPARTMENT OF 10 TRANSPORTATION AND PUBLIC FACILITIES]. 11 * Sec. 20. AS 36.30.850(b)(29) is amended to read: 12 (29) construction of new vessels by the Alaska Marine Highway 13 Authority [DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES] 14 for the Alaska marine highway system; 15 * Sec. 21. AS 36.30.990(1) is amended to read: 16 (1) "agency" 17 (A) means a department, institution, board, commission, 18 division, authority, public corporation, the Alaska Pioneers' Home, or other 19 administrative unit of the executive branch of state government; 20 (B) does not include 21 (i) the University of Alaska; 22 (ii) the Alaska Railroad Corporation; 23 (iii) the Alaska Housing Finance Corporation; 24 (iv) a regional Native housing authority created under 25 AS 18.55.996 or a regional electrical authority created under 26 AS 18.57.020; 27 (v) the Alaska Marine Highway Authority 28 [DEPARTMENT OF TRANSPORTATION AND PUBLIC 29 FACILITIES], in regard to the repair, maintenance, and reconstruction 30 of vessels, docking facilities, and passenger and vehicle transfer 31 facilities of the Alaska marine highway system;
01 (vi) the Alaska Aerospace Development Corporation; 02 (vii) the Alaska State Pension Investment Board; 03 (viii) the Alaska Seafood Marketing Institute; 04 * Sec. 22. AS 36.90.049(e)(1) is amended to read: 05 (1) "commissioner of the department that operates the marine vessel" 06 includes 07 (A) the president of the University of Alaska with regard to a 08 vessel operated by the university; and 09 (B) the chief executive officer of the Alaska marine highway 10 system with regard to a vessel operated by the Alaska Marine Highway 11 Authority; 12 * Sec. 23. AS 37.05.550(a) is amended to read: 13 (a) There is in the general fund the Alaska marine highway system vessel 14 replacement fund. The fund consists of money appropriated to it by the legislature. 15 Money appropriated to the fund does not lapse. The Department of Revenue shall 16 manage the fund. Interest received on money in the fund shall be accounted for 17 separately and may be appropriated into the fund annually. The legislature may 18 appropriate money from the fund to the Alaska Marine Highway Authority for 19 refurbishment of existing state ferry vessels, acquisition of additional state ferry 20 vessels, or replacement of retired or outmoded state ferry vessels. 21 * Sec. 24. AS 37.07.120(1) is amended to read: 22 (1) "agency" means a department, officer, institution, board, 23 commission, bureau, division, or other administrative unit forming the state 24 government and includes the Alaska Marine Highway Authority, Alaska Pioneers' 25 Home, and the University of Alaska, but does not include the legislature or the 26 judiciary; 27 * Sec. 25. AS 37.14 is amended by adding new sections to read: 28 Article 6A. Marine Highway Transportation Fund. 29 Sec. 37.14.550. Marine highway transportation fund established. (a) 30 Under the authority of the Constitution of the State of Alaska, the marine highway 31 transportation fund is established as a separate and dedicated fund of the state.
01 (b) The principal of the fund consists of 02 (1) legislative appropriations to the fund; 03 (2) gifts, bequests, and contributions of cash or other assets from a 04 person; and 05 (3) land conveyed to the fund under AS 37.14.575. 06 (c) The net income of the fund shall be determined by the commissioner of 07 revenue in accordance with investment accounting principles and in a manner that 08 preserves the distinction between principal and income. 09 Sec. 37.14.555. Powers and duties of the commissioner of revenue. The 10 commissioner of revenue is the treasurer of the fund and has the power and duty to 11 (1) act as official custodian of the cash and investments belonging to 12 the fund by securing adequate and safe custodial facilities; 13 (2) receive all items of cash and investments belonging to the fund; 14 (3) collect the principal and income from investments owned or 15 acquired by the fund and deposit the amounts in separate principal and income 16 accounts for the fund; 17 (4) invest and reinvest the assets of the fund as provided in this section 18 and as provided for the investment of funds under AS 37.14.170; 19 (5) exercise the powers of an owner with respect to the assets of the 20 fund; 21 (6) maintain accounting records of the fund in accordance with 22 investment accounting principles and with distinction between the principal and 23 income accounts of the fund; 24 (7) engage an independent firm of certified public accountants to 25 annually audit the financial condition of the fund's investments and investment 26 transactions; 27 (8) enter into and enforce contracts or agreements considered 28 necessary for the investment purposes of the fund; 29 (9) report to the board the condition and investment performance of the 30 fund; 31 (10) do all acts, whether or not expressly authorized, that the
01 commissioner of revenue considers necessary or proper in administering the assets of 02 the fund. 03 Sec. 37.14.560. Administration of the fund; fund board established. (a) 04 The fund shall be administered by the Marine Highway Transportation Fund Board. 05 (b) The Marine Highway Transportation Fund Board is established in the 06 Department of Transportation and Public Facilities. The board is composed of 07 (1) the governor or a designee of the governor; 08 (2) a member of the board of directors of the Alaska Marine Highway 09 Authority; 10 (3) the commissioner of natural resources or the commissioner's 11 designee; 12 (4) the commissioner of transportation and public facilities or the 13 commissioner's designee; and 14 (5) four public members appointed by the governor; in appointing the 15 public members, the governor shall give a preference to persons who have experience 16 and expertise in 17 (A) marine transportation; or 18 (B) private sector resource development. 19 Sec. 37.14.565. Powers and duties of the board. When acting as 20 administrator of the fund, the board shall 21 (1) hold regular and special meetings it considers necessary; the board 22 may hold meetings by teleconference; 23 (2) have the care, control, and management of land selected by and 24 conveyed to the fund by the commissioner of natural resources under AS 37.14.575; 25 (3) keep audio tape recordings of each meeting of the board to be made 26 available on request; and 27 (4) submit to the governor and make available to the legislature by 28 February 1 each year a report describing 29 (A) expenditures made during the preceding fiscal year from 30 the fund that are derived from sales, leases, exchanges, or transfers of the land 31 of the fund or of interests in land of the fund that were selected by and
01 conveyed to the fund under AS 37.14.575; and 02 (B) the annual level of contributions to, income of, and 03 expenses of the fund. 04 Sec. 37.14.570. Uses of fund principal and net income. (a) The principal of 05 the fund shall be retained perpetually in the fund for investment as specified in 06 AS 37.14.555. 07 (b) The net income of the fund may be annually appropriated by the 08 legislature only for the support of marine highway transportation systems and for 09 support of the Alaska Marine Highway Authority. 10 Sec. 37.14.575. Fund land from Statehood Act land selection conveyances. 11 (a) The board may select and is entitled to receive the conveyance of 500,000 acres of 12 land conveyed to the state under Sec. 6(b) of the Alaska Statehood Act (P.L. 85-508, 13 72 Stat. 339). The board shall annually submit a list of selections to the commissioner 14 of natural resources. If there is disagreement between the board and the commissioner 15 of natural resources about the land selected, the disagreement must be submitted to the 16 governor, who shall make the final decision. The board and the governor shall 17 annually and jointly submit to the legislature, within 30 days of the beginning of a 18 regular legislative session, a list of the selections of land proposed to be conveyed to 19 the fund under this section. Each list must contain not more than 25 percent of the 20 total acres of land to which the fund is entitled after subtracting previous conveyances 21 under this section, but not less than 25,000 acres or the remaining entitlement under 22 this section, whichever is less. The legislature may by law approve or disapprove the 23 list of selections submitted to it. A list of selections submitted shall be considered 24 approved for conveyance to the fund if the legislature does not disapprove the list 25 during the legislative session during which the list was submitted. If the amount of 26 land to be conveyed exceeds the balance due the fund under this section, the fund shall 27 set out the land to be conveyed in priority order. Land may not be selected if, on the 28 date of its selection by the board, it 29 (1) has been reserved by law from the public domain; 30 (2) is land 31 (A) included in a five-year proposed oil and gas leasing
01 program under AS 38.05.180(b); or 02 (B) leased under, or for which a lease application is pending 03 under, AS 38.05.180(d) or 38.05.150; 04 (3) is subject to 05 (A) an oil, gas, or coal lease, or coal prospecting permit; 06 (B) a mining claim, offshore prospecting permit, a prospecting 07 site, an upland mining lease, or a mining leasehold location; 08 (4) is necessary to carry out the purpose of an interagency land 09 management agreement; or 10 (5) is subject to conveyance under a land exchange or land settlement 11 agreement. 12 (b) Notwithstanding AS 38.05.125(a), the transfer of ownership and 13 management of land from the Department of Natural Resources to the fund under this 14 section includes the interest of the state in 15 (1) the coal, ores, minerals, fissionable materials, geothermal 16 resources, and fossils that may be in or on the land; and 17 (2) the oil and gas that may be in or on the land, but only as to land 18 that is selected by the board under this section on and after the date that is the fifth 19 anniversary of the effective date of this section. 20 (c) When the board selects the land to which it is entitled under this section, 21 selections must be made in parcels of 640 acres or larger unless the selection is an 22 isolated tract or the commissioner of natural resources finds it is in the best interest of 23 the state to convey less. When the fund becomes entitled to land under this section, 24 the commissioner of natural resources shall convey a document of interim conveyance 25 under (j) of this section or a patent to land. 26 (d) Notwithstanding any other provision of law, for land selected under (a) of 27 this section but not yet patented to the fund or for which a document of interim 28 conveyance has not been issued to the fund under this section, 29 (1) the commissioner of natural resources is authorized to enter into 30 contracts and grant leases, licenses, prospecting sites, claims, permits, rights-of-way, 31 or easements and any interim conveyance or patent shall be subject to the contract,
01 lease, license, prospecting site, claim, permit, right-of-way, or easement, except that 02 the authority granted the commissioner by this subsection 03 (A) is the authority that the commissioner otherwise would 04 have had under existing laws and regulations had the land not been selected by 05 the fund; and 06 (B) may be exercised only if the fund has concurred before the 07 action is taken by the commissioner; 08 (2) income from and management of the land is subject to 09 AS 37.14.590. 10 (e) Unless the governor provides otherwise under (a) of this section, the 11 governor may not include on a list of selections of land submitted to the legislature a 12 land selection made by the fund under this section if the commissioner of natural 13 resources determines that the proposed selection 14 (1) includes land for which, at the time of its selection under this 15 section, 16 (A) a municipality has made a selection under AS 29.65 unless 17 the land selection is, at a later date, rejected by the commissioner of natural 18 resources or relinquished by the municipality; or 19 (B) the commissioner reasonably believes the land may be 20 selected by a municipality under AS 29.65, but the commissioner may not 21 withhold under this subparagraph the conveyance of title to land selected by 22 the fund longer than three years after the date of the municipality's 23 incorporation; or 24 (2) includes land that, at the time of its selection under this section, 25 (A) is subject to an oil and gas exploration license; or 26 (B) the commissioner reasonably believes will be made part of 27 an oil and gas exploration license issued under AS 38.05.131 - 38.05.134; the 28 commissioner may not refuse to convey title to land to the fund under this 29 subparagraph for more than three years after its first selection by the fund. 30 (f) When land is conveyed to the fund under this section, the fund takes the 31 land subject to any possessory interest held by another person on the effective date of
01 the conveyance. 02 (g) In conveying land to the fund under this section, the commissioner of 03 natural resources shall give public notice that substantially complies with notice 04 requirements under AS 38.05.945(b) and (c) and provide for access under 05 AS 38.05.127, but other provisions of AS 38.04 and AS 38.05 do not apply. 06 (h) Land transferred or conveyed to the fund under this section 07 (1) is subject to 08 (A) Sec. 6(i) of the Alaska Statehood Act (P.L. 85-508, 72 Stat. 09 339); 10 (B) art. IX of the state constitution; 11 (C) AS 19.10.010; 12 (D) the payment requirements to the Alaska permanent fund 13 under AS 37.13.010(a) and (b); and 14 (E) the rights of the state under former 43 U.S.C. 932 (sec. 8, 15 Act of July 26, 1866, 14 Stat. 253); 16 (2) excludes any interest transferred to the state by quitclaim deed 17 dated June 30, 1959, under authority of the Alaska Omnibus Act, P.L. 86-70, 73 Stat. 18 141; 19 (3) based on a land selection filed by the fund on or after the effective 20 date of this section and until the day before the day that is the fifth anniversary of the 21 effective date of this section, is subject to reservation by the Department of Natural 22 Resources in perpetuity of all oil and gas that may be in or on the land, together with 23 the right to explore the land for oil and gas and to remove from the land all oil and gas 24 located in and on it. 25 (i) The fund shall bear all costs of selection, platting, surveying, and, except as 26 provided in (k) of this section, conveyance of the land that it selects under this section 27 and, subject to appropriation, shall reimburse the Department of Natural Resources for 28 the reasonable costs incurred by that department relating to that selection, platting, 29 surveying, and conveyance. As to land due the fund under (c) of this section, 30 (1) if the land has been surveyed, the boundaries of the land conveyed 31 must conform to the public land subdivisions established by the approved survey;
01 (2) if the land is unsurveyed, the commissioner shall survey the 02 exterior boundaries of the land to be conveyed without interior subdivision and shall 03 issue patent in terms of the exterior boundary survey within one year of the later of the 04 effective date of the approval by the legislature of the list containing the land or the 05 adjournment of the legislative session during which the list containing the land was 06 not disapproved by the legislature. 07 (j) For land due the fund under (c) of this section that is unsurveyed, pending 08 the survey of exterior boundaries and issuance of patent, the commissioner of natural 09 resources shall, within one year of the later of the effective date of the approval by the 10 legislature of the list containing the land or the adjournment of the legislative session 11 during which the list containing the land was not disapproved by the legislature, 12 prepare and provide to the fund a document of interim conveyance for the land to be 13 conveyed. 14 (k) Except as provided in AS 37.14.590(2), management of land conveyed to 15 the fund by patent or by a document of interim conveyance vests with the fund from 16 the date of recording of the patent or document of interim conveyance. The 17 Department of Natural Resources shall pay the cost of recording all patents and 18 documents of interim conveyance. 19 (l) The board may not make a land selection under this section after 20 December 31, 2012. 21 Sec. 37.14.580. Management and disposition of land. (a) The board shall, 22 by policy, establish procedures for mineral entry or location and mineral leasing on 23 land selections made under AS 37.14.575 that are substantially similar to mineral 24 entry, location, and leasing procedures for state land under AS 38.05.185 - 38.05.275. 25 (b) Notwithstanding other provisions of law, the board shall seek public 26 comment on proposals for development, exchange, or sale of land selections made 27 under AS 37.14.575. The board shall adopt policies that provide that the fund shall 28 prepare an annual plan for management and disposition of fund land under this section 29 and shall, not less than 60 days before scheduled approval by the board of the plan, 30 (1) make copies of the plan available at all legislative information 31 offices and at other locations as the board may designate;
01 (2) publish a notice in newspapers of general circulation in the state 02 that provides the public with information on the locations where the plan is available 03 for public inspection; 04 (3) give notice to all legislators and to local governments with 05 jurisdiction over the land affected by the proposal; and 06 (4) seek public comment on the annual plan before action by the board 07 approving the plan. 08 Sec. 37.14.585. Confidential records. Notwithstanding AS 40.25.110 - 09 40.25.125 and 40.25.220, on a determination that it is in the best interest of the fund or 10 on the request of the person who has provided the information, the board may keep the 11 following confidential: 12 (1) the name of a person applying for the sale, lease, or other disposal 13 of land or an interest in land conveyed to the fund under AS 37.14.575; 14 (2) before the announced time of opening of an offer to purchase, 15 lease, or obtain a disposal of land conveyed to the fund under AS 37.14.575, the 16 names of the participants and the terms of their offers; 17 (3) all geological, geophysical, engineering, architectural, sales, 18 appraisal, gross receipts, net receipts, or other financial information relating to land or 19 an interest in land conveyed to the fund under AS 37.14.575 and considered for or 20 offered for disposal or currently subject to a contract; 21 (4) cost data and financial information submitted by an applicant in 22 support of applications for bonds, leases, or other information in offerings and 23 ongoing operations relating to management of land conveyed to the fund under 24 AS 37.14.575; 25 (5) applications for rights-of-way or easements across land conveyed 26 to the fund under AS 37.14.575; and 27 (6) requests for information about or applications by public agencies 28 for land conveyed to the fund under AS 37.14.575 that is being considered for use for 29 a public purpose. 30 Sec. 37.14.590. Land subject to encumbrances and trespasses. Except as 31 provided in AS 37.14.575(b) and subject to art. IX, sec. 15, Constitution of the State
01 of Alaska, for the land selected by the board under AS 37.14.575 that is subject to a 02 lease, license, contract, prospecting site, claim, sale, permit, right-of-way, or easement, 03 or to trespass, 04 (1) if the lease, license, contract, prospecting site, claim, sale, permit, 05 right-of-way, easement, or trespass 06 (A) existed before the selection of the land by the board, the 07 state is entitled to receive the income obtained from the lease, license, contract, 08 prospecting site, claim, sale, permit, right-of-way, easement, or trespass for the 09 duration of the term of the lease, license, contract, prospecting site, claim, sale, 10 permit, right-of-way, or easement, or of the trespass, and during any renewal 11 of it that is authorized by the lease, license, contract, prospecting site, claim, 12 sale permit, right-of-way, or easement, or by law; 13 (B) did not exist before the selection of the land by the board, 14 (i) the state is entitled to receive the income obtained 15 from the lease, license, contract, prospecting site, claim, sale, permit, 16 right-of-way, or easement, or from trespass before the recording of the 17 conveyance to the fund by the issuance of a document of interim 18 conveyance or a patent; 19 (ii) the fund is entitled to receive the income obtained 20 from the lease, license, contract, prospecting site, claim, sale, permit, 21 right-of-way, or easement, or from trespass on the date of and after the 22 recording of the conveyance to the fund by the issuance of a document 23 of interim conveyance or a patent; 24 (2) the responsibility for the management of the land vests with the 25 fund only upon conclusion of the term of the lease, license, contract, prospecting site, 26 claim, sale, permit, right-of-way, or easement, and any renewal authorized by the 27 lease, license, contract, prospecting site, claim, sale, permit, right-of-way, or easement, 28 or by law, if the lease, license, contract, prospecting site, claim, sale, permit, right-of- 29 way, or easement existed before the land's being selected by the board; if the lease, 30 license, contract, prospecting site, claim, sale, permit, right-of-way, or easement was 31 entered into after selection, then the responsibility for management vests with the fund
01 on the date of recording of the conveyance of the land to the fund by a document of 02 interim conveyance or patent. 03 Sec. 37.14.595. Customary and traditional uses to be continued. When 04 land selected by the fund under AS 37.14.575 has been conveyed to it, before 05 conveying or disposing of an interest in land to a third party, the fund shall manage the 06 land in a manner that permits customary and traditional uses of the resources of that 07 land to the maximum extent practicable. 08 Sec. 37.14.599. Definitions. In AS 37.14.550 - 37.14.599, 09 (1) "board" means the Marine Highway Transportation Fund Board; 10 (2) "fund" means the marine highway transportation fund established 11 in AS 37.14.550. 12 * Sec. 26. AS 39.20.310(8) is amended to read: 13 (8) persons employed [BY THE DIVISION OF MARINE 14 TRANSPORTATION] as masters and members of the crews operating the vessels of 15 the Alaska marine highway [STATE FERRY] system who are covered by collective 16 bargaining agreements as provided in AS 23.40.040, except as expressly provided by 17 law; 18 * Sec. 27. AS 39.25.110(11) is amended to read: 19 (11) the officers and employees of the following boards, commissions, 20 and authorities: 21 (A) [REPEALED 22 (B)] Alaska Permanent Fund Corporation; 23 (B) [(C)] Alaska Industrial Development and Export Authority; 24 (C) [(D)] Alaska Commercial Fisheries Entry Commission; 25 (D) [(E)] Alaska Commission on Postsecondary Education; 26 (E) [(F)] Alaska Aerospace Development Corporation; 27 (F) Alaska Marine Highway Authority; 28 * Sec. 28. AS 39.30.150(b) is amended to read: 29 (b) Employees of the Alaska Marine Highway Authority [DIVISION OF 30 MARINE TRANSPORTATION] included in the public employees' retirement system 31 through the process of collective bargaining under AS 39.35.680(21)(D) may, under
01 the terms of a collective bargaining agreement, utilize contributions made under (a) of 02 this section on their behalf to offset the costs of inclusion in the public employees' 03 retirement system; however, 04 (1) the state is placed under no obligation to continue making 05 contributions under this section if the state resumes participation in the federal social 06 security system; 07 (2) the bargaining agreement must provide a mechanism for satisfying 08 any residual liabilities that might exist if the state resumes participation in the federal 09 social security system; and 10 (3) funds contributed under (a) of this section on behalf of employees 11 who are not covered by maritime union contracts may not be obligated or expended to 12 pay any costs associated with the inclusion of Alaska marine highway system 13 [TRANSPORTATION] employees in the public employees' retirement system. 14 * Sec. 29. AS 39.35.680(21) is amended to read: 15 (21) "member" or "employee" 16 (A) means a person eligible to participate in the system and 17 who is covered by the system; 18 (B) includes 19 (i) an active member; 20 (ii) an inactive member; 21 (iii) a vested member; 22 (iv) a deferred vested member; 23 (v) a non-vested member; 24 (vi) a disabled member; 25 (vii) a retired member; 26 (viii) an elected public officer under AS 39.35.381; 27 (C) does not include 28 (i) former members; 29 (ii) persons compensated on a contractual or fee basis; 30 (iii) casual or emergency workers or nonpermanent 31 employees as defined in AS 39.25.200;
01 (iv) persons covered by the Alaska Teachers' 02 Retirement System except as provided under AS 39.35.131 and 03 39.35.381, or persons covered by the optional university retirement 04 program; 05 (v) employees of the Alaska Marine Highway 06 Authority [DIVISION OF MARINE TRANSPORTATION] engaged 07 in operating the Alaska marine highway [STATE FERRY] system 08 who are covered by a union or group retirement system to which the 09 state makes contributions; 10 (vi) justices of the supreme court or judges of the court 11 of appeals or of the superior or district courts of Alaska; 12 (vii) the administrative director of courts appointed 13 under art. IV, sec. 16 of the state constitution unless the director 14 becomes a member under AS 39.35.158; 15 (viii) members of the elected public officers' retirement 16 system (former AS 39.37); and 17 (ix) contractual employees of the legislative branch of 18 state government under AS 24.10.060(f); 19 (D) may include employees of the Alaska Marine Highway 20 Authority [DIVISION OF MARINE TRANSPORTATION] excluded under 21 (C)(v) of this paragraph provided that 22 (i) the State of Alaska formally agrees to their inclusion 23 through the process of collective bargaining; and 24 (ii) no collective bargaining agreement has the effect of 25 obligating contributions made by the state under AS 39.30.150 in the 26 event the state resumes participation in the federal social security 27 system; 28 * Sec. 30. AS 39.50.200(b) is amended by adding a new paragraph to read: 29 (57) Alaska Marine Highway Authority (AS 19.55.010). 30 * Sec. 31. AS 39.52.960(2) is amended to read: 31 (2) "agency" means a department, office of the governor, or entity in
01 the executive branch, including but not limited to the University of Alaska, public or 02 quasi-public corporations, boards or commissions, the Alaska Marine Highway 03 Authority, and the Alaska Railroad Corporation; 04 * Sec. 32. AS 39.52.960(4) is amended to read: 05 (4) "board or commission" means a board, commission, authority, or 06 board of directors of a public or quasi-public corporation, established by statute in the 07 executive branch, including the Alaska Marine Highway Authority and the Alaska 08 Railroad, but excluding members of a negotiated regulation making committee under 09 AS 44.62.710 - 44.62.800; 10 * Sec. 33. AS 44.42.020(a)(1) is amended to read: 11 (1) plan, design, construct, and maintain all state modes of 12 transportation and transportation facilities and all docks, floats, breakwaters, buildings, 13 and similar facilities, except that departmental planning, design, construction, or 14 maintenance of transportation modes or facilities under the jurisdiction of the 15 Alaska Marine Highway Authority is subject to direction by the Alaska Marine 16 Highway Authority; 17 * Sec. 34. AS 44.42.020(a)(7) is amended to read: 18 (7) manage, operate, and maintain state transportation facilities and all 19 docks, floats, breakwaters, and buildings, including all state highways, vessels, 20 railroads, pipelines, airports, and aviation facilities, except that the department is 21 not responsible for management or operation of transportation facilities under 22 the jurisdiction of the Alaska Marine Highway Authority or for management, 23 operation, or maintenance of vessels or equipment under the jurisdiction of the 24 Alaska Marine Highway Authority; 25 * Sec. 35. AS 44.99.030(a) is amended by adding a new paragraph to read: 26 (15) Alaska Marine Highway Authority. 27 * Sec. 36. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSFER OF CERTAIN APPROPRIATIONS, EMPLOYEES, AND ASSETS TO 30 ALASKA MARINE HIGHWAY AUTHORITY. (a) Employees of the Department of 31 Transportation and Public Facilities assigned to the management, operation, and maintenance
01 of the Alaska marine highway system on the effective date of this section are transferred to 02 the Alaska Marine Highway Authority as state employees of the authority. The commissioner 03 of transportation and public facilities shall determine which employees are transferred to the 04 authority. An employee who is transferred to the authority under this subsection shall 05 continue to participate without interruption in the supplemental employee benefits program 06 under AS 39.30.150 - 39.30.180 and in the public employees' retirement system under 07 AS 39.35 if the employee was a participant in these programs on the day before the employee 08 was transferred to the authority. 09 (b) During the term of a collective bargaining agreement that applies to employees 10 who are transferred to the Alaska Marine Highway Authority under this section and that is in 11 effect on the effective date of this section, nothing in this Act terminates or modifies 12 recognition of the exclusive bargaining representative for those employees or that collective 13 bargaining agreement. The Alaska Marine Highway Authority shall abide by the collective 14 bargaining agreements that are in effect for employees transferred to the authority on the date 15 of transfer. A collective bargaining agreement covering employees transferred under this Act 16 shall remain in effect for the term of the agreement unless the agreement is renegotiated by 17 the Alaska Marine Highway Authority and the exclusive bargaining representative. The 18 legislature finds that the community of interest of shore-based employees of the Alaska 19 marine highway system who are transferred to the Alaska Marine Highway Authority under 20 this section is substantially different from the community of interest of the employees of the 21 executive branch in the classified service. Accordingly, the shore-based employees of the 22 Alaska marine highway system who are transferred to the Alaska Marine Highway Authority 23 are severed from their recognized collective bargaining units in effect on the effective date of 24 this section on expiration of the collective bargaining agreement in effect on the effective date 25 of this section for their unit. The severed units shall continue as units of the Alaska Marine 26 Highway Authority with the exclusive representative in place at the time of the severance 27 until actions under AS 23.40.070 - 23.40.260 (Public Employment Relations Act) change the 28 units or representatives. 29 (c) The unexpended and unobligated balances of operating and capital appropriations 30 for the Department of Transportation and Public Facilities, Alaska marine highway system, 31 shall be transferred to the Alaska Marine Highway Authority.
01 (d) The personal property assets and real property assets, including ferries, equipment, 02 buildings, and associated facilities, of the Department of Transportation and Public Facilities, 03 Alaska marine highway system, shall be transferred to the Alaska Marine Highway Authority. 04 * Sec. 37. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 INITIAL APPOINTMENT OF MEMBERS OF THE BOARD OF DIRECTORS OF 07 THE ALASKA MARINE HIGHWAY AUTHORITY. Notwithstanding AS 19.55.020(b), 08 added by sec. 2 of this Act, and AS 39.05.055, the initially appointed members of the board of 09 directors of the Alaska Marine Highway Authority shall be appointed by the governor to 10 terms as follows: one member serves for one year, two members serve for two years, one 11 member serves for three years, one member serves for four years, and two members serve for 12 five years. The governor shall appoint the initial members of the board of directors of the 13 Alaska Marine Highway Authority before December 1, 2002. 14 * Sec. 38. AS 19.65.011, 19.65.020, 19.65.030, 19.65.035; and AS 39.25.110(16) are 15 repealed. 16 * Sec. 39. Sections 1, 24, and 37 of this Act take effect immediately under 17 AS 01.10.070(c). 18 * Sec. 40. Sections 12 and 25 of this Act take effect on the effective date of an amendment 19 to the Constitution of the State of Alaska relating to establishing the marine transportation 20 fund proposed by the Twenty-Second Alaska State Legislature. 21 * Sec. 41. Except as provided in secs. 39 and 40 of this Act, this Act takes effect January 1, 22 2003.