Legislature(2023 - 2024)BARNES 124

03/07/2024 01:00 PM House TRANSPORTATION

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Audio Topic
01:03:58 PM Start
01:04:54 PM HB376
01:13:21 PM SSCR8|| EXECUTIVE ORDER 131
01:52:07 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 376 DELIVERY NETWORK COMPANIES TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
*+ HB 332 SALE OF ALASKA RAILROAD TELECONFERENCED
<Bill Hearing Canceled>
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ SSCR 8 DISAPPROVE EO 131 TELECONFERENCED
Considered
-- Testimony <Invitation Only> --
Uniform Rule 23(a) Waived
EO 131: REORGANIZE MARINE HWY OPERATIONS BD
Uniform Rule 23(a) Waived
-- Testimony <Invitation Only> --
^Executive Order 131                                                                                                            
                    SSCR 8-DISAPPROVE EO 131                                                                                
                      Executive Order 131                                                                                   
                                                                                                                                
1:13:21 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced  that the next order of  business would be                                                               
SENATE   SPECIAL  CONCURRENT   RESOLUTION  NO.   8,  Disapproving                                                               
Executive  Order No.  131.   [The committee  simultaneously heard                                                               
testimony related to Executive Order 131.]                                                                                      
                                                                                                                                
1:13:56 PM                                                                                                                    
                                                                                                                                
RYAN  ANDERSON,  Commissioner,  Department  of  Transportation  &                                                               
Public Facilities, introduced Executive Order  (EO) 131.  He gave                                                               
examples of how the governor  supported the Alaska Marine Highway                                                               
System  (AMHS)  and  he  stressed  the  importance  of  the  AMHS                                                               
operations board.   He stated  that reliability and  service must                                                               
continue  to improve  in the  ferry system,  and he  acknowledged                                                               
that  the  Department  of Transportation  and  Public  Facilities                                                               
(DOT&PF) had  been behind in  its planning and continued  to make                                                               
decisions without short-  and long-term plans in place.   He said                                                               
the bill  requires that  all board members  are appointed  by the                                                               
governor.                                                                                                                       
                                                                                                                                
1:17:07 PM                                                                                                                    
                                                                                                                                
ANDY  MILLS, Legislative  Liaison,  Office  of the  Commissioner,                                                               
Department  of  Transportation  &  Public  Facilities,  gave  the                                                               
sectional analysis for EO 131  [included in the committee packet]                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Section 1.   The uncodified law of the  State of Alaska                                                                  
     is amended by adding a new section to read:                                                                                
          FINDINGS. As governor, I find that it is in the                                                                       
     best   interests   of   efficient   administration   to                                                                    
     reorganize the membership of  the Alaska Marine Highway                                                                    
     Operations Board.                                                                                                          
        * Sec. 2.  AS 19.65.120(a) is amended to read:                                                                        
          (a)  The board is composed of the deputy                                                                              
     commissioner  of transportation  and public  facilities                                                                    
     assigned to  the Alaska marine  highway system  and the                                                                    
     following eight public members, each  of whom must be a                                                                    
     resident of the state:                                                                                                     
               (1)  one representative, who may be retired,                                                                     
     of a recognized union  that represents employees of the                                                                    
     Alaska   marine  highway   system,  appointed   by  the                                                                    
     governor;                                                                                                                  
               (2)  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;                                                                                                                  
               (3)  six public members                                                                                          
               [(A)]  who collectively have experience in                                                                       
     enterprise,    architecture,    business    operations,                                                                    
     financial   management,  risk   management,  logistics,                                                                    
     supply    chain   management,    engineering,   project                                                                    
     management and  controls, marine  operations, strategy,                                                                    
     regulatory compliance,  ship maintenance, construction,                                                                    
     and    repair,     quality    management,    continuous                                                                    
     improvement,    sales,    marketing,    communications,                                                                    
     customer interface, or experience management, [;                                                                       
               (B)  TWO OF WHOM ARE] appointed by the                                                                           
     governor [,  TWO OF WHOM  ARE APPOINTED BY  THE SPEAKER                                                                    
     OF THE  HOUSE OF REPRESENTATIVES  AND WHO SERVE  AT THE                                                                    
     PLEASURE   OF    THE   SPEAKER   OF   THE    HOUSE   OF                                                                    
     REPRESENTATIVES, AND  TWO OF WHOM ARE  APPOINTED BY THE                                                                    
     PRESIDENT OF THE  SENATE AND WHO SERVE  AT THE PLEASURE                                                                    
     OF THE PRESIDENT OF THE SENATE].                                                                                           
        * Sec. 3.  AS 19.65.120(c) is amended to read:                                                                        
          (c)  The members of the board, except for the                                                                         
     deputy  commissioner   of  transportation   and  public                                                                    
     facilities, shall serve staggered  six-year terms. If a                                                                    
     vacancy  arises  on  the board,  the  governor  [,  THE                                                                    
     PRESIDENT OF  THE SENATE, OR  THE SPEAKER OF  THE HOUSE                                                                    
     OF  REPRESENTATIVES, AS  APPLICABLE,] shall,  within 30                                                                    
     days  after the  vacancy  arises, appoint  a person  to                                                                    
     serve  the  balance of  the  unexpired  term. A  person                                                                    
     appointed  to fill  the balance  of  an unexpired  term                                                                    
     shall serve on  the board from the  date of appointment                                                                    
     until the expiration of the term.                                                                                          
        * Sec. 4.  The uncodified law of the State of                                                                         
     Alaska is amended by adding a new section to read:                                                                         
          TRANSITION. The terms of the current members of                                                                       
     the  Alaska Marine  Highway Operations  Board terminate                                                                    
     on the effective  date of this Order.  The governor may                                                                    
     appoint to  the Alaska Marine Highway  Operations Board                                                                    
     a person who  served on the board as  it existed before                                                                    
     the  effective date  of this  Order and  who meets  the                                                                    
     qualifications of  AS 19.65.120(a), as amended  by sec.                                                                    
     2  of  this  order.  The  terms  of  persons  initially                                                                    
     appointed  to  the  Alaska  Marine  Highway  Operations                                                                    
     Board under  AS 19.65.120(a), as  amended by sec.  2 of                                                                    
     this Order, must be set  as provided in AS 19.65.120(c)                                                                    
     so as to establish the staggering of terms.                                                                                
        * Sec. 5.  This Order takes effect July 1, 2024.                                                                      
                                                                                                                                
1:21:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE,  noting the  various differences  in boards                                                               
and commissions  that give recommendations to  departments, asked                                                               
whether  some carry  a fiscal  responsibility of  recommendations                                                               
more so than others.                                                                                                            
                                                                                                                                
MR. MILLS agreed and stated that  DOT&PF has looked at the amount                                                               
of staff  hours put  in to generating  activities for  the board,                                                               
and  many of  the statutory  requirements of  HB 63  come with  a                                                               
significant effort  needed for  AMHS to have  a long-  and short-                                                               
term  plan.   He noted  the integrated  and coordinated  roles of                                                               
AMHS and DOT&PF.                                                                                                                
                                                                                                                                
1:24:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE VANCE pointed out that  she was a part of crafting                                                               
the bill,  and one of  the reasons it was  formed was due  to the                                                               
fiscal responsibility and the amount  of money needed to maintain                                                               
the ferry  system.   An area  of reflection  was the  two ferries                                                               
that were rebuilt but did not  fit the docks and costed "millions                                                               
more."   She explained that  she felt  if there was  something in                                                               
place to anticipate changes that  the department might miss, then                                                               
those costs could be avoided in  the future.  She asked Mr. Mills                                                               
whether  he  saw  a  burden  of  responsibility  that  the  other                                                               
commissions and  boards were  dealing with on  the same  level as                                                               
AMHS.                                                                                                                           
                                                                                                                                
MR. MILLS  replied that that  highlighted an  important question,                                                               
and one of the  areas he would want more from  the board would be                                                               
that there  is a section in  HB 63 that spoke  to recommendations                                                               
and business  to enhance  revenue and  reduce costs;  however, he                                                               
stated those  were not  areas the department  had largely  seen a                                                               
focus  on,  but he  looked  forward  to having  conversations  on                                                               
advice  and  recommendations  for   cost  efficiency  or  revenue                                                               
generation for AMHS.  He further  related the need to be creative                                                               
and  to think  about different  ways  that the  ferry system  can                                                               
provide  the service  the public  expects  but in  ways not  done                                                               
before.                                                                                                                         
                                                                                                                                
1:28:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STUTES  offered   her  understanding   that  the                                                               
enactment was expected  to be a collaborative  effort between the                                                               
department and board to work in  unison to look to the future and                                                               
make   AMHS  more   sustainable   and   cost-effective  with   an                                                               
understanding that  it would always  have to be subsidized.   She                                                               
expressed her  confusion as to why  EO 131 even exists,  and that                                                               
it is  not good  timing due to  AMHS working  collaboratively for                                                               
the good of the  state and for the good of the  ferry system as a                                                               
whole in making it more efficient and effective.                                                                                
                                                                                                                                
1:31:36 PM                                                                                                                    
                                                                                                                                
MORGAN  GRIFFIN,  Assistant  Attorney General,  Labor  and  State                                                               
Affairs  Section, Department  of Law,  joined the  discussion and                                                               
stated  her  intention was  to  provide  the committee  with  the                                                               
Department of Law's (DOL's) understanding  of the Constitution of                                                               
the State of  Alaska.  She mentioned  "a bit of a  dispute" as to                                                               
whether it was  a violation of the constitution  to allow another                                                               
branch of government to appoint members to an executive branch.                                                                 
                                                                                                                                
1:35:19 PM                                                                                                                    
                                                                                                                                
MS. GRIFFIN explained separation of  powers as it pertains to the                                                               
constitution   and  provided   an   explanation   of  the   three                                                               
governmental   branches   being   legislative,   executive,   and                                                               
judicial.  She gave examples of  how a violation might occur as a                                                               
result of attempting  to carry out a function of  one branch from                                                               
another.                                                                                                                        
                                                                                                                                
1:38:19 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE  remarked that  when the  board was  constructed, it                                                               
was envisioned to be more advisory in nature.                                                                                   
                                                                                                                                
1:39:23 PM                                                                                                                    
                                                                                                                                
MS.  GRIFFIN  stated that  she  brought  up the  advisory  nature                                                               
because it is  not an aspect of the legal  analysis; the question                                                               
was whether  it really  violated the separation  of powers.   She                                                               
added examples of legal authority  and following guidance that is                                                               
set in statute.                                                                                                                 
                                                                                                                                
1:42:15 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE interjected  that "we are in the weeds"  in terms of                                                               
what the  body really needed,  and he expressed  appreciation for                                                               
Ms. Griffin's analysis.                                                                                                         
                                                                                                                                
MS. GRIFFIN provided  a scenario of the power to  appoint and the                                                               
power to  remove in  relation to the  governor following  the law                                                               
and how it could raise constitutional concerns.                                                                                 
                                                                                                                                
1:44:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  VANCE noted  that  the same  governor signed  the                                                               
bill thus  agreeing to the  creation of  the board as  written in                                                               
statute.   She  questioned why,  if  there were  a separation  of                                                               
powers  issue, it  had  not been  brought up  when  the bill  was                                                               
originally before the governor.                                                                                                 
                                                                                                                                
1:45:36 PM                                                                                                                    
                                                                                                                                
MR. MILLS conceptualized that part  of the legal argument is that                                                               
"this  is like  a  business"  where employees  have  no say  over                                                               
conduct,  performance, or  anything  else.   In  relation to  the                                                               
governor   signing  the   bill,  he   opined  that   AMHS  needed                                                               
collaborative partnerships to move forward.   Knowing there is an                                                               
issue and DOT&PF  has no say over it has  presented an issue that                                                               
the EO 131 seeks to solve, he said.                                                                                             
                                                                                                                                
1:48:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STUTES   observed  that  that   legislation  went                                                               
through DOL  before it was  enacted into law.   She said  she was                                                               
alarmed to  hear there was  no control  over board members.   She                                                               
opined  that  it is  beneficial  to  have  a board  comprised  of                                                               
individuals who  have different ideas and  can collaborate rather                                                               
than one  in which every member  thinks the same.   She indicated                                                               
that Legislative Legal Services may  offer the opposite view that                                                               
this  is  not an  infringement  on  the  different parts  of  the                                                               
state's government.  She expressed her concern as to what has                                                                   
motivated EO 131 and opined that the board has been doing well.                                                                 
                                                                                                                                
1:51:10 PM                                                                                                                    
                                                                                                                                
CHAIR MCCABE announced that the committee has held a hearing on                                                                 
SSCR 8 as required by Uniform Rule 49 and the resolution will                                                                   
move to joint session when scheduled for such a session.                                                                        

Document Name Date/Time Subjects
SSCR08.VerA.3.4.24.pdf HTRA 3/7/2024 1:00:00 PM
SSCR 8
ExecutiveOrder131.3.4.24.pdf HTRA 3/7/2024 1:00:00 PM
HB0376A.3.6.24.pdf HTRA 3/7/2024 1:00:00 PM
HB 376
HB 376 Sponsor Statement.3.6.24.pdf HTRA 3/7/2024 1:00:00 PM
HB 376
HB 376 Sectional Analysis.3.6.24.pdf HTRA 3/7/2024 1:00:00 PM
HB 376
HB376.Fiscal Note DOLWD.3.1.24.pdf HTRA 3/7/2024 1:00:00 PM
HB 376
HB376 Support Letter DeliveryNetworkCo 3.05.24.pdf HTRA 3/7/2024 1:00:00 PM
HB 376