Legislature(2021 - 2022)BARNES 124
03/18/2021 01:30 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB63 | |
| Presentation(s): Alaska Marine Highway System | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 63 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HB 63-ALASKA MARINE HIGHWAY OPERATIONS BOARD
1:34:53 PM
CHAIR HOPKINS announced that the first order of business would
be HOUSE BILL NO. 63, "An Act relating to the duties of the
Department of Transportation and Public Facilities; renaming the
Alaska Marine Transportation Advisory Board the Alaska Marine
Highway Operations Board; relating to the membership and duties
of the Alaska Marine Highway Operations Board; and providing for
an effective date."
1:35:37 PM
REPRESENTATIVE LOUISE STUTES, Legislator, Alaska State
Legislature, as prime sponsor, introduced HB 63. Strengthening
governance for the Alaska Marine Highway System (AMHS), HB 63
would select a governance board composed of members with marine
experience. Members would be chosen by governor, House of
Representatives, and Senate, and would need to meet set
requirements.
1:37:44 PM
KERRY CROCKER, Staff to Representative Louise Stutes, Alaska
State Legislature, offered diversity in board would matter and
would create long-term planning for AMHS, he added.
1:38:46 PM
REPRESENTATIVE HANNAN moved Amendment 1, which read as follows:
Page 1, line 4, following "Board;":
Insert "relating to the comprehensive,
intermodal, long-range transportation plan for the
state;"
Page 1, lines 6 - 14:
Delete all material and insert:
"* Section 1. AS 19.65.011 is amended to read:
Sec. 19.65.011. Short-term and comprehensive
[COMPREHENSIVE] long-range plans [PLAN]. The
Department of Transportation and Public Facilities, in
consultation with the Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board, shall prepare a
short-term and a comprehensive long-range plan for the
development and improvement of the Alaska marine
highway system and shall, in consultation with the
Alaska Marine Highway Operations [TRANSPORTATION
ADVISORY] Board, revise and update the short-term plan
annually, and the comprehensive long-range plan at
least every three [FIVE] years. The department shall
submit both the short-term and the comprehensive long-
range plans [PLAN] and revisions and updates of the
plans [PLAN] to the legislature."
Page 2, following line 12:
Insert a new paragraph to read:
"(3) one representative of an Alaska Native
organization or tribe who is from a community served
by the Alaska marine highway system, appointed by the
governor;"
Renumber the following paragraphs accordingly.
Page 2, line 13:
Delete "three"
Insert "two"
Page 2, line 17:
Delete "members"
Insert "public members who have experience in
marine business and procurement practices, marine
personnel management, commercial service options, ship
maintenance, construction, and repair, fleet strategy,
reliability, and regulatory compliance, or risk
management,"
Page 2, line 20:
Delete "members"
Insert "public members who have experience in
marine business and procurement practices, marine
personnel management, commercial service options, ship
maintenance, construction, and repair, fleet strategy,
reliability, and regulatory compliance, or risk
management,"
Page 3, following line 14:
Insert a new bill section to read:
"* Sec. 8. AS 44.42.050(a) is amended to read:
(a) The commissioner shall develop a
comprehensive, intermodal, long-range transportation
plan for the state. The commissioner shall incorporate
the comprehensive long-range plan prepared under
AS 19.65.011 into the plan developed under this
section. The plan may be developed in multiple
documents that address logical components, including
geographic areas, modes of transportation,
transportation corridors, systems, and other distinct
subjects relevant to transportation planning. The
components of the plan shall be revised as the
commissioner determines appropriate. In developing and
revising the state plan, the commissioner shall
conform to the requirements for the eligibility and
use of federal and other funds, as applicable. Upon
approval of each component of the plan by the
commissioner, the commissioner shall transmit notice
of the approval of that component to the governor and
to the legislature."
Renumber the following bill sections accordingly.
Page 3, line 25:
Delete "three"
Insert "two"
Page 3, following line 26:
Insert a new paragraph to read:
"(2) the representative of an Alaska Native
organization or tribe appointed by the governor shall
serve a one-year term;"
Renumber the following paragraphs accordingly.
1:38:52 PM
CHAIR HOPKINS objected, for purposes of discussion.
1:38:58 PM
REPRESENTATIVE HANNAN introduced Amendment 1, the first section
of which identified there would be both a short-term and
comprehensive long-term plan. Section one added "short-term"
every time "long-term" was mentioned, she said. On page 12, of
the governor's appointees, one would be a tribal member, so that
changed the number from three to two. Community members were
members of the public with marine experience, not members of the
legislature, she explained. All three public members would have
the same qualifications, but would have different appointing
entities, she added.
1:43:31 PM
REPRESENTATIVE STUTES expressed support for Amendment 1, which
she called "clarifying."
1:43:49 PM
MR. CROCKER expressed support for the "short-term plan" language
in Amendment 1, as well as for the incorporation of the
commissioner of the DOT&PF's inclusion of the comprehensive
long-range plan outlined by the board into the state's plan.
1:44:34 PM
CHAIR HOPKINS removed his objection. There being no other
objection, Amendment 1 to HB 63 was adopted.
1:44:51 PM
REPRESENTATIVE MCCABE moved Amendment 2, which read as follows:
Page 1, line 3:
Delete "Highway"
Insert "Transportation"
Page 1, line 4:
Delete "Highway"
Insert "Transportation"
Page 1, lines 8 - 9:
Delete "Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board"
Insert "Alaska Marine Transportation Operations
[ADVISORY] Board"
Page 1, lines 11 - 12:
Delete "Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board"
Insert "Alaska Marine Transportation Operations
[ADVISORY] Board"
Page 2, lines 2 - 3:
Delete "Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board."
Insert "Alaska Marine Transportation Operations
[ADVISORY] Board."
Page 2, lines 4 - 5:
Delete "Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board."
Insert "Alaska Marine Transportation Operations
[ADVISORY] Board."
Page 3, line 14:
Delete "Alaska Marine Highway Operations
[TRANSPORTATION ADVISORY] Board."
Insert "Alaska Marine Transportation Operations
[ADVISORY] Board."
Page 3, line 18:
Delete "HIGHWAY"
Insert "TRANSPORTATION"
Page 3, line 23:
Delete "Highway"
Insert "Transportation"
Page 4, line 1:
Delete "Highway"
Insert "Transportation"
Page 4, line 3:
Delete "Highway"
Insert "Transportation"
CHAIR HOPKINS objected, for purposes of discussion.
REPRESENTATIVE MCCABE introduced Amendment 2, which would
prevent the possibility of "stacking the [AMHS] board" with
union or retired union personnel, such as the Police Advisory
Council, which has retired policemen as general members. The
AMHS admitted 60% of their costs were personnel costs, and
Representative McCabe for this blamed the "oligopoly" of the
AMHS itself. Many boards had union- or retired-union members
serving on them, but it was unusual to have more than one
serving on an advisory board, he said.
1:46:59 PM
REPRESENTATIVE HANNAN asked if there was a legal memo attached
with any cautions against banning a certain class of people.
REPRESENTATIVE MCCABE replied no.
1:47:47 PM
CHAIR HOPKINS asked if any union member could be a member.
REPRESENTATIVE MCCABE replied yes, Amendment 2 could be modified
to replace "a union" with "the unions that represent employees
of the AMHS."
1:49:19 PM
The committee took an at-ease from 1:49 p.m. to 1:51 p.m.
1:51:46 PM
CHAIR HOPKINS stated there was on the table a conceptual
amendment to Amendment 2 proposed by Representative McCabe,
which would insert in lines 2, 5, and 8, after the word "union,"
"currently representing workers employed by the AMHS," and that
this conceptual amendment had been moved.
CHAIR HOPKINS objected, for purposes of discussion.
1:52:27 PM
The committee took a brief at-ease.
1:52:43 PM
REPRESENTATIVE CRONK seconded the conceptual amendment to
Amendment 2.
REPRESENTATIVE MCCABE stated language was only intended to cover
unions representing the AMHS.
1:53:14 PM
REPRESENTATIVE STUTES said she understood where Representative
McCabe was coming from but having participated in the AMHS
reshaping group, was not sure Amendment 2 with its conceptual
amendment would be applicable. If it were to happen that there
more than one member from one of the [AMHS employee] unions, she
stated, those members would be the ones who would make the AMHS
more efficient, who would be willing to give and take, and who
wanted jobs. From her personal conversations, she imparted
union members' inclusion on the board could very well be to the
advantage of the state. As an example, she offered there were
licensed, available, and capable workers already working on the
ships and those very workers could save a lot of money by
completing maintenance projects.
1:54:57 PM
MR. CROCKER expressed his concern that upper-level management on
the vessels themselves, such as members of [The International
Organization of] Masters, Mates & Pilots (MM&P) and engineers,
retired and went on to work on management in the marine
industry. This was the very pool from which to draw, he stated.
1:55:51 PM
REPRESENTATIVE HANNAN asked if it had been realized that the
vast number of knowledgeable folks had had union involvement.
REPRESENTATIVE MCCABE said yes, but he has had experience with
union- or former-union members having way too much sway over
contracts and the like, which resulted in an "upside-down cost"
to the state, there being no free market involved. He added
only 6% of the US had been unionized, so there was still 94% of
people to draw from, and that too much experience was not always
a good thing and the AMHS could benefit from some new ideas.
REPRESENTATIVE HANNAN replied Alaska's rate of union was more
like 20%.
CHAIR HOPKINS added "the second-highest in the nation."
REPRESENTATIVE HANNAN said the composition of the new board was
not so much about contract swaying as it was about technical
skills and training. The DOT&PF has had anti-union leadership
but has not bargained any of the union components, only wages.
They were not asking terms were to be changed, she stated.
1:59:44 PM
REPRESENTATIVE SPOHNHOLZ commented she appreciated the
amendment's sponsor was concerned with what could be a potential
imbalance in the AMHS board but was herself concerned most
people who had experience and expertise with the AMHS would not
be able to sit on the board, and it would be narrowing too much.
It wasn't personnel costs; it was mismanagement of capital
assets and lack of planning.
2:01:34 PM
REPRESENTATIVE DRUMMOND asked how many labor contracts for the
AMHS would be negotiated by the board.
MR. CROCKER replied the DOT&PF, Department of Administration
(DOA), Division of Labor typically negotiated the contracts.
2:02:52 PM
The committee took an at-ease from 2:02 p.m. to 2:03 p.m.
2:03:31 PM
CHAIR HOPKINS maintained his objection to the conceptual
amendment on Amendment 2.
2:03:53 PM
The committee took an at-ease from 2:03 p.m. to 2:04 p.m.
2:04:42 PM
A roll call vote was taken. Representatives Hannan, McCabe,
Cronk, and Hopkins voted in favor. Representative Drummond
voted against it. Therefore, the conceptual amendment to
Amendment 2 passed by a vote of 4 - 1.
2:05:59 PM
A roll call vote was taken. Representatives Cronk and McCabe
voted in favor of Amendment 2. Representatives Drummond,
Hannan, Spohnholz, and Hopkins voted against it. Therefore,
Amendment 2 failed by a vote of 2 - 4.
2:06:49 PM
REPRESENTATIVE MCCABE moved Amendment 3, which read as follows:
Page 2, line 16, following "management,":
Insert "and who are not active or retired members
of a union,"
Page 2, line 17, following "members":
Insert ", who are not active or retired members
of a union,"
Page 2, line 20, following "members":
Insert ", who are not active or retired members
of a union,"
CHAIR HOPKINS objected, for purposes of discussion.
REPRESENTATIVE MCCABE said Amendment 3 changed the title "AMHS
board" to "Alaska Marine Transportations Board." This would
helped clarify what the new board was trying to accomplish, as
it dealt with marine transportation needs, he put forth. The
use of the word "highway" limited the focus to a branch of
transportation or, in Alaska's case, to a route structure, as it
was too specific in focus. "['Highway' is] a noun," he reminded
the committee, as well as a romantic misnomer, and
"transportation" better described what the AMHS accomplished.
2:08:51 PM
REPRESENTATIVE STUTES said she disagreed with the Amendment, as
the original intent was for the AMHS to in effect be a road, but
to make it a marine highway was more cost effective than
building bridges. Taking "highway" off would also reduce the
amount of federal dollars entitled. It is the only highway
users paid to get on, she pointed out.
REPRESENTATIVE MCCABE clarified Amendment 3 would just change
the name of the board, not the entire system. He added he
didn't think the dollars would go away, and that he "understood
the romance," but the AMHS was not a highway.
REPRESENTATIVE STUTES maintained the AMHS was a marine highway,
whatever happened to be on it.
2:12:47 PM
REPRESENTATIVE HANNAN asked whether changing the name of the
board would create confusion over task and governance.
REPRESENTATIVE MCCABE replied "no more than calling a boat that
runs on a waterway a highway." He reiterated the need to "think
broader," adding the AMHS board title limited board reach.
REPRESENTATIVE HANNAN said if the board was titled as proposed
in Amendment 3, she may think the board had control over feeder
airports, especially float plane airports which were in many
communities served. She added the AMHS did not have that
guidance. She added since there is not a central governance
board, but there is long-term planning, perhaps somewhere down
the road the new title could be integrated.
2:15:49 PM
REPRESENTATIVE DRUMMOND asked which ferries did not allow
driving on and off.
MR. CROCKER replied all of them allowed driving on and off.
REPRESENTATIVE DRUMMOND asked, in Amendment 1, how much the word
"intermodal" would apply to other modes of transportation as
discussed.
MR. CROCKER replied "intermodal" referred to where the AMHS
connected to another highway system.
2:17:14 PM
REPRESENTATIVE HANNAN replied the intermodal plans existed
already; the addition of the short-term and long-term plans
added to them.
2:17:43 PM
REPRESENTATIVE SPOHNHOLZ commented that Amendment 3 would lead
to distraction and confusion, as the word "Transportation" was
taken out intentionally.
2:18:23 PM
REPRESENTATIVE MCCABE maintained the board title would still
have the word "marine" in it. He then asked which roads there
were in Tenakee, as that seemed not to fit in the "highway"
definition.
CHAIR HOPKINS maintained his objection.
2:19:22 PM
A roll call vote was taken. Representatives McCabe and Cronk
voted in favor of Amendment 3. Representatives Drummond,
Hannan, Hopkins, and Spohnholz voted against it. Therefore,
Amendment 3 failed by a vote of 2 - 4.
2:20:20 PM
CHAIR HOPKINS opened public testimony on HB 63.
2:20:33 PM
NANCY BIRD testified in support of HB 63. Ms. Bird said while
the new board wouldn't be able to fix all the challenges facing
the AMHS, an experienced board was overdue and much needed,
primarily to provide professional and non-political advice on
how to run a successful operation. There must be secure funding
several years ahead, she stated, and long-term capital funding.
2:21:54 PM
REPRESENTATIVE STUTES said the AMHS has had many boards, but HB
63 had teeth in it and would make things more sustainable for
the state of Alaska.
2:22:39 PM
CHAIR HOPKINS closed public testimony.
2:22:51 PM
REPRESENTATIVE HANNAN moved to report CS/HB63 as amended out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HB 63 moved from
committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 63 - Letter of Support Eric Gucker 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| HB63 - Amendment 1 by Rep Hannan 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| HB 63 - Amendment 2 by Rep McCabe 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| HB 63 - Amendment 3 by Rep McCabe 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| HB 63 Statutes for Reference AS 44.42.050 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| HB 63 DOTPF Fiscal Note 3.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
HB 63 |
| Presentation - AMHS House Transportation Committee 03.18.2021.pdf |
HTRA 3/18/2021 1:30:00 PM |
AMHS Ferry Vessel Replacement, Refurbishment and Planning |