04/05/2022 01:30 PM Senate TRANSPORTATION

               SB 170-MARINE HIGHWAY CORPORATION                                                                            
                                                                                                                                
1:37:34 PM                                                                                                                    
CHAIR MYERS  announced the consideration  of SENATE BILL  NO. 170                                                               
"An Act relating  to the Alaska highway  system; establishing the                                                               
Alaska  Marine   Highway  Corporation;   and  providing   for  an                                                               
effective date."                                                                                                                
                                                                                                                                
1:37:44 PM                                                                                                                    
CHAIR MYERS opened public testimony on SB 170.                                                                                  
                                                                                                                                
1:38:11 PM                                                                                                                    
SHANNON ADAMSON,  Alaska Regional Representative,  Masters, Mates                                                               
and Pilots (MMP), Juneau, Alaska,  stated that MMP represents the                                                               
licensed  deck officers  with the  Alaska Marine  Highway System.                                                               
She said she was also speaking  on behalf of the Marine Engineers                                                               
Beneficial  Association  (MEBA),  which represents  the  licensed                                                               
engineering  officers  for  AMHS. She  provided  her  background,                                                               
indicating that she  sailed with AMHS as a  licensed deck officer                                                               
for  seven  years;  and  served   on  the  Marine  Transportation                                                               
Advisory Board  and Southeast  Conferences  AMHS  Reform Steering                                                               
Committee.  She stated  that many  provisions in  the bill  would                                                               
create  a  stronger  and more  reliable  marine  highway  system,                                                               
including  the  public comment  period  for  service or  schedule                                                               
changes, the creation of a  long-term comprehensive plan that has                                                               
provisions for vessel replacement after  30 years of service, and                                                               
the section regarding performance reporting and transparencies.                                                                 
                                                                                                                                
1:39:14 PM                                                                                                                    
MS. ADAMSON expressed concern about  some provisions in the bill,                                                               
including  the board  composition that  lacks a  designated union                                                               
seat, that  this board would  prevent more than one  union member                                                               
from serving.  She offered  her view that  MMP and  MEBA believes                                                               
that  the more  engagement  that the  board  receives from  those                                                               
working  on vessels  would better  inform the  board. The  unions                                                               
also  have concerns  regarding the  language  that requires  each                                                               
sailing  to show  that anticipated  incremental revenue  meets or                                                               
exceeds  the cost  of providing  the  service. MMP  and MEBA  are                                                               
concerned  that  this may  be  unrealistic  for all  routes.  She                                                               
stated that  some routes will  make more money than  others which                                                               
would  offset the  costs  of the  routes  that provide  necessary                                                               
service  to   rural  communities   and  villages.   The  language                                                               
regarding the  rates for  tickets could  mean that  ticket prices                                                               
would  be  set  above  market  value,  which  seems  prohibitive,                                                               
particularly for village  runs where service is  a necessity. She                                                               
suggested that rates could be  determined by the corporation or a                                                               
third-party company, similar to  Washington states  rate setting.                                                               
She thanked members for the  opportunity to testify and expressed                                                               
optimism that this bill would create positive change.                                                                           
                                                                                                                                
CHAIR MYERS closed public testimony on SB 170.                                                                                  
                                                                                                                                
1:40:47 PM                                                                                                                    
CHAIR MYERS held SB 170 in committee.