Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/25/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| SB103 | |
| SB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 103 | TELECONFERENCED | |
| *+ | SB 105 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 103-AMHS OPERATION & PLANNING BOARD
1:33:25 PM
CHAIR MYERS announced the consideration of SENATE BILL NO. 103
"An Act repealing the Alaska Marine Transportation Advisory
Board; establishing the Alaska Marine Highway System Operation
and Planning Board; and providing for an effective date."
1:34:14 PM
ANDY MILLS, Special Assistant to the Commissioner, Department of
Transportation and Public Facilities (DOTPF), Juneau, Alaska,
stated that SB 103 would restructure the Alaska Marine Highway
Advisory Board (MTAB) based on recommendations from AMHS's
Reshaping Work Group. This group was formed by the governor's
Administrative Order (AO) 313. The group held 29 meetings and
produced an October 2020 report that made 29 recommendations to
the governor, including one to restructure the board.
He explained that the Alaska Marine Highway System Operation &
Planning Board (OPB) would be better suited to address AMHS
issues than MTAB because it would have additional resources and
information.
1:35:24 PM
SENATOR MICCICHE joined the meeting.
1:35:32 PM
MR. MILLS referred to page 14 of AMHS's Reshaping Work Group
report. He read, "The current MTAB is formed of capable
individuals but not structured to effectively challenge and help
the Alaska Marine Highway System with the large marine operation
planning and execution issues that it confronts." The work
group's recommendation was to produce a board that could focus
on operations and planning; one that would be well-grounded with
outside advice focused on business and financial practices. This
board would change member credential and reporting requirements.
1:36:33 PM
MR. MILLS paraphrased the sectional analysis for SB 103:
Section 1 AS 19.65.011 is amended to change the name
of the Alaska Marine Transportation Advisory Board
(MTAB) to the Alaska Marine Highway System Operation
and Planning Board. A short-term plan (for the
development and improvement of the Alaska marine
highway system) is also added to the department's
current statutory responsibility for development of a
long-term plan.
1:37:42 PM
Section 2 AS 19.65 is amended by adding a new
subsection to establish the new Alaska Marine Highway
System Operation and Planning Board in subsection 210;
outline Board membership and terms in subsection 220;
speak to officers and a quorum in subsection 230;
stipulated meeting rules in subsection 240; address
per diem and expenses in subsection 250; address
record inspection/copying in subsection 260; establish
the Department of Law as the Boards' legal assistance
in subsection 270; document the Boards' powers, duties
and functions in subsection 280; establish that the
Department of Transportation & Public Facilities will
provide staff support to the Board in subsection 290;
and define the word 'Board' for purposes of AS 19.65
in subsection 295.
1:40:37 PM
Section 3 repeals existing subsections 110 195
within chapter 65 which speak to the old MTAB.
Section 4 adds a new section to the uncodified law
of the State of Alaska to establish staggered terms
for Board members and identify that former MTAB
members are not prohibited from being reappointed to
the new Alaska Marine Highway System Operation and
Planning Board.
Section 5 - adds a new section to the uncodified law
of the State of Alaska to establish a deadline of
September 1, 2021, for the Board's initial reports, as
required under Section 2 of the proposal, to the
governor.
Section 6 - establishes an immediate effective date.
1:42:01 PM
SENATOR BISHOP joined the meeting.
1:42:07 PM
SENATOR MICCICHE stated that an ex officio member from each body
previously served on MTAB. He asked whether including ex officio
legislature members was considered or for a specific reason not
to include them.
MR. MILLS explained that the work group did not recommend
members from the legislature serve on the board. He was unsure
why but he thought part of the reason was to pivot to
restructure and operate the Alaska Marine Highway System (AMHS)
more as a business. He suggested that the work group
acknowledged that MTAB required a different skillset.
1:43:33 PM
SENATOR SHOWER stated his intention to amend the bill to add
legislative members to the Operating and Planning Board (OPB).
He expressed frustration at missteps the AMHS previously made,
including purchasing Alaska [fast ferries] that were later sold
at a loss, partly because offramps were not appropriately
designed. Currently, the legislature subsidizes a significant
portion of the ferry system costs. He wondered if the new
management structure would fail because the board lacked
sufficient authority and the management structure did not
include a chief executive officer. He expressed concern that the
state continues to spend money on an unsustainable system. He
recalled that the [Inter-Island Ferry serving Hollis and
Ketchikan] consisted of 70 percent private funding and 30
percent state funding. He said that system uses a hub and spoke
model with smaller vessels. He asked what actions OPB could take
besides studying issues and compiling a report. He said it seems
as though the Department of Transportation and Public Facilities
(DOTPF) would still run the system, so he wasn't sure OPB would
work.
MR. MILLS pointed out that Senator Shower mentioned the Alaska
Class ferries; however, the fast ferries were the ones purchased
and sold. He agreed this raises a fundamental question. OPB's
effort was designed with board member expertise to inform its
decisions rather than for AMHS's competent operational staff,
busy with the day-to-day system operations, trying to squeeze in
time to analyze meaningful changes to the system. He deferred to
the deputy commissioner to speak to the board's authority.
1:47:20 PM
ROB CARPENTER, Deputy Commissioner of Surface Transportation,
Department of Transportation and Public Facilities (DOTPF),
Juneau, Alaska, on behalf of the administration, acknowledged
that the work group struggled to identify ways to accomplish
meaningful changes, barring going to a corporate model, such as
the ones used by the Alaska Permanent Fund Corporation or the
Alaska Railroad Corporation. He envisioned that as Deputy
Commissioner, he would serve as DOTPF's designee, acting as a
liaison producing documents and providing direction to the
board. He compared that to an advisory board providing input but
not integrating or working with the agency on its mission. He
highlighted the benefits of keeping AMHS within the agency,
including allowing the department to address the multi-modal
aspects of Alaska's transportation system. If AMHS were a
separate corporation, it would not have the advantage of
conducting planning across all modes and all regions. He offered
his belief that having DOTPF staff serve on the board was
instrumental in giving the board power and authority. Second,
besides the board members with marine experience, other members
will bring business experience to the board. These members could
propose business decisions to create efficiencies that could
make AMHS more effective and able to achieve long-term
sustainability. He hoped that OPB would have sufficient power
and authority to be effective.
1:50:03 PM
SENATOR SHOWER highlighted that two ports are located in the
Mat-Su district. Although he supports the ferry system, which is
necessary because of Alaska's size, he was unsure what that
system should ultimately resemble. He opined that AMHS was
failing so another approach could achieve better results.
1:52:16 PM
SENATOR KIEHL agreed with Senator Shower that the board must
effectively challenge and help the department. He pointed out
the similarities between MTAB and the new OPB established by SB
103. SB 103 would set up OPB as an 11-member board. Just like
MTAB, OPB members will serve at the governor's pleasure, be
staffed by DOTPF and advise DOTPF's deputy commissioner.
However, OPB ultimately will not make any decisions. While he
appreciated the new board members' expertise, nothing currently
prevents the governor from appointing people with expertise. He
asked how the department could better integrate this group and
deeply involve OPB in long-term planning. He asked if OPB would
have a substantive role in the Statewide Transportation
Improvement Program (STIP) process so the board could also
consider things such as system maintenance. He was unsure if OPB
could participate in the budget process. He suggested that
someone other than the governor should appoint some members to
better insulate them from turnover. He asked what could be done
to involve the board in the department's actual work.
1:54:30 PM
MR. MILLS directed attention to the specific reporting
requirements on page 4 of SB 103. These requirements would
ensure that the board cannot omit crucial elements, such as
cost-saving or income-producing business or procurement
practices. He related his understanding that given the work
group's recommendations, the administration considers OPB as a
starting point. The administration was willing to discussing
ways this board could truly impact AMHS's operations and
planning to change AMHS's trajectory. He emphasized that this
was not a rehashing work group designed to maintain the status
quo; rather, it was evident that OPB could improve the system
for the coastal communities that AMHS serves.
1:56:24 PM
SENATOR MICCICHE said he agrees with the board composition and
member expertise except for the members established in
subparagraph (C), which read "two members, one of whom
represents an Alaska native organization or tribe and one of
whom represents a community served by the Alaska marine highway
system;". Instead, this language should read "representatives of
communities served by the AMHS, with one of those members
representing an Alaska Native organization." He explained that
the qualifications in subparagraphs (A) through (E) were system
related, but the Alaska Native representative must also
represent a coastal community served by AMHS.
He acknowledged that the board was viewed as a starting point
but expressed concern about the lack of a superior work product.
In his experience working in the private sector, to effectively
solve problems, the private sector would outline tasks and
establish deadlines for the board to meet. He suggested that the
bill establish specific work product deadlines for OPB's serious
consideration on a much more aggressive schedule. Since AMHS's
problems require action now, AMHS could garner statewide support
by highlighting that OPB recognizes it needs more effective ways
to conduct business. It would aggressively pursue those changes
to deliver outcomes in a reasonable amount of time.
1:59:30 PM
MR. CARPENTER highlighted that OPB needs to be in place as a
sounding board, but it must also be an apolitical board driven
by business-oriented members interested in making decisions
using aggressive timelines. He said the new board must consider
AMHS's current maintenance and recapitalization plans.
2:00:52 PM
CHAIR MYERS recalled the work group essentially recommended
minimizing politics for the board. He suggested establishing
longer board terms, such as five or eight years to avoid
wholesale board turnover. Since board members would serve three-
year terms under SB 103, a governor could replace all board
members during a single gubernatorial term.
MR. MILLS responded that he could not speak for Boards and
Commissions, but he recalled that their staff suggested the
standard three-year terms. However, the administration was
willing to consider longer terms.
2:02:07 PM
CHAIR MYERS noted that SB 103 reduced updates to the long-term
plan from five years to three years. However, placing updates
too close together would change it from a planning process to a
planning-to-plan process. Participants would not have time to
think through and reflect on the updates. He suggested keeping
the updates at five years.
MR. MILLS responded that five years was a long time for board
service. He related his understanding that the impetus was that
a short-term plan would apply pressure to the group to work on
specific issues actively.
CHAIR MYERS was unsure that applying pressure to the board was
as crucial as applying pressure to DOTPF.
2:04:10 PM
SENATOR BISHOP asked if the board would actively develop AMHS's
budget.
MR. CARPENTER responded that he envisioned OPB would operate
similarly to how the Alaska Mental Health Trust Authority
(AMHTA) or the University of Alaska, Board of Regents operates.
OPB would compile a one-year budget and make recommendations to
the governor to provide the legislature with another
perspective, which may help depoliticize the process. He
recalled that any changes or deviations made to AMHTA's budget
would require an explanation by the legislature or the governor.
He said the planning process should include budget interaction,
which is not yet in the bill.
SENATOR BISHOP asked if the board would actively develop AMHS's
budget. He said it makes sense to base it on a five-year plan to
coincide with the STIP funding.
2:07:14 PM
SENATOR KIEHL agreed with Senator Bishop. He recalled that the
Board of Education serves at the governor's pleasure. The board
is briefed on the governor's proposed budget and then it votes
to approve it. He suggested the bill would need a slight
structural change to accomplish this.
2:08:16 PM
SENATOR SHOWER asked which agency or person has the authority to
execute the board's recommendations.
MR. CARPENTER answered that under SB 103, OPB would submit its
recommendations to DOTPF's commissioner, who would make the
final decisions. He recommended that a DOTPF staff serve on the
board as a liaison between the agency and the governor. He
envisioned that person would work with the board to develop a
consensus on issues and ways to accomplish them. This liaison
could also provide information and guidance to the commissioner
and the governor on the board's approach and rationale used to
make board recommendations.
SENATOR SHOWER agreed that it is critical to involve DOTPF in
the process; however, the commissioner will ultimately make
decisions, which has happened for a long time. It might be time
to consider a different model, but the commissioner could still
have someone serve on the board to coordinate efforts.
[SB 103 was held in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 103 Sponsor Statement Version A 3.9.2021.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB 103 Sectional Analysis 3.9.2021.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB 103 Fiscal Note DOTPF.PDF |
STRA 3/25/2021 1:30:00 PM |
SB 103 |
| SB105 Sponsor Statement 3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| SB105 Sectional Analysis Version A 3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| SB105 Fiscal Note DCCED.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| FNSB Road Service Area Map.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |
| FNSB support for SB105_3.24.21.pdf |
STRA 3/25/2021 1:30:00 PM |
SB 105 |