Legislature(2021 - 2022)BELTZ 105 (TSBldg)
04/15/2021 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB36 | |
| SB103 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 36 | TELECONFERENCED | |
| += | SB 103 | TELECONFERENCED | |
SB 103-AMHS OPERATION & PLANNING BOARD
2:02:40 PM
CHAIR MYERS reconvened the meeting and 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."
2:03:22 PM
SENATOR KIEHL moved to take up Amendment 11, 32-GS1649\A.4,
which was previously tabled.
32-GS1649\A.4
Fisher
4/2/21
AMENDMENT 11
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 103
Page 4, following line 25:
Insert a new subsection to read:
"(e) Not later than August 1 of each year, the
board shall submit proposed operating and capital
budgets for the Alaska marine highway system for the
next fiscal year to the governor and to the senate
secretary and chief clerk of the house of
representatives and notify the legislature that the
proposed budgets are available."
Reletter the following subsection accordingly.
Page 5, line 21:
Delete "AS 19.65.280"
Insert "AS 19.65.280(d)"
CHAIR MYERS removed his objection [from the April 8, 2021,
hearing when the measure was tabled].
2:03:44 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 1 to
Amendment 11, to change the date from August 1 to October 1.
CHAIR MYERS objected for discussion purposes.
2:04:06 PM
SENATOR KIEHL stated that the committee had previously
discussed the date. He offered his view that the department
indicated October 1 would be a more workable date.
CHAIR MYERS asked Mr. Mills to respond.
2:04:29 PM
ANDY MILLS, Special Assistant to the Commissioner, Department
of Transportation and Public Facilities (DOTPF), Juneau,
Alaska, stated that the rationale the department used was to
provide two months from the start of a new fiscal year for
preparation and resources to be supplied to the board. It
would allow two and one-half months until the governor's
proposed budget was released. The department considered it to
be "meeting in the middle."
CHAIR MYERS removed his objection. There being no further
objection, Conceptual Amendment 1 to Amendment 11 was adopted.
CHAIR MYERS stated that Amendment 11, as amended, was before
the committee.
2:05:32 PM
SENATOR MICCICHE stated that currently, the duties and powers
do not include budgeting. He asked if it was an appropriate
role of the board to provide proposed budgeting for AMHS or if
it would be an obstacle for the board's primary mission. He
asked for clarification on the intent.
SENATOR KIEHL offered his view that it would be an excellent
complement to the Operating and Planning Board (OPB) because
budgets are policy documents. He stated there is no better way
to understand how something works than to review spending
fully. For the board to obtain the most detailed and thorough
understanding of the Alaska Marine Highway System and how it
accomplishes its mission, OPB must understand its budget and
spending. The governor will retain all constitutional powers
to propose the final budget.
2:07:13 PM
CHAIR MYERS removed his objection.
2:07:25 PM
SENATOR MICCICHE objected. He asked the Department of
Transportation and Public Facilities (DOTPF) how AMHS's
budgeting would mesh with OPB's role.
2:07:57 PM
ROB CARPENTER, Deputy Commissioner, Department of
Transportation and Public Facilities (DOTPF), Juneau, Alaska,
responded that the language in the final bill will determine
the board's responsibilities. As far as process, the agency
will be working on the proposed budget. He said he fully
expects the board to discuss the budget. DOTPF does not have a
position as to whether it should be a board requirement. He
thought it would be remiss for the board not to hold
discussions on financial aspects of AMHS. He said it would all
come down to the governor's budget proposal. He was unsure
whether the department would consider this as a need, but the
board would consider AMHS's budget either way.
2:09:16 PM
SENATOR SHOWER stated that this would give the board
sufficient power to move AMHS to a sustainable model. He
wondered if any efforts were duplicated and if this was the
right direction, but if some of these changes are not made, it
means doing things the same way. He stated that he was leaning
in favor of Amendment 11, but he understood the concern.
2:11:17 PM
SENATOR MICCICHE expressed concern about setting up an
expectation for a board that's not a corporate board. The
committee has discussed the next step. He said he would like
to see an Alaska Railroad Corporation model used in the
future. He said he hoped OPB might achieve this. It may depend
on who is elected as the next governor. Since this budget
would hold some weight, he would prefer the language suggested
or recommended instead of proposed. He pointed out that OPB is
not an elected board and it may set up an unsustainable
expectation. He acknowledged that members each have a vision
of what OPB will do and that vision may vary among members.
2:13:17 PM
SENATOR SHOWER asked whether "proposed" means it is just a
proposal; that the governor will ultimately decide on the
budget.
SENATOR KIEHL answered yes. He related his understanding that
this board would suggest the budget. He recalled that
constitutional language for the Board of Education gives it
the power to set or approve the budget that is binding. He
said he used "proposed" to clarify that since OPB is an
advisory board, it will propose the budget, but the governor
and the Office of Management and Budget (OMB) will send a
proposed budget to the legislature.
2:14:55 PM
SENATOR MICCICHE removed his objection. There being no further
objection, Amendment 11, as amended, was adopted.
2:15:30 PM
SENATOR SHOWER moved to take up Amendment 9, 32-GS1649\A.9,
which was previously tabled.
32-GS1649\A.9
Fisher
4/2/21
AMENDMENT 9
OFFERED IN THE SENATE BY SENATOR SHOWER
TO: SB 103
Page 1, line 2, following "Board;"
Insert "relating to the powers and duties of
the Alaska Marine Highway System Operation and
Planning Board and the commissioner of
transportation and public facilities;"
Page 3, lines 20 - 25:
Delete all material and insert:
"Sec. 19.65.280. Powers, duties, and functions.
(a) The commissioner of transportation and public
facilities in conjunction with the board shall,
without regard to political affiliation, solicit,
interview, and recruit the head of the division of
marine transportation, who shall report to and
function at the direction of the board."
CHAIR MYERS stated that Amendment 9 was before the committee.
2:15:50 PM
SENATOR SHOWER read Amendment 9. He stated that there is
precedent on boards. He said he requested an opinion from the
Department of Law on how the Board of Fisheries operates but
he had not heard back. He pointed out the Department of
Education says "The board shall appoint the commissioner of
education and early development subject to the approval of the
governor. The commissioner serves at the pleasure of the board
and may not be appointed for a fixed term." He said if the
committee would like to give the board more power, it could be
left to the board's discretion. Another approach could be to
add language "and the commissioner" to indicate that the
director works for the board, but also reports to the
commissioner. He asked the committee to consider which
direction to go.
2:19:10 PM
SENATOR KIEHL expressed concern that Amendment 9 raises a
constitutional issue. He said he requested Legislative Legal
Services to draft something similar to Amendment 9.
Ultimately, the attorneys convinced him it could not be done
because the Boards of Fisheries and Game and the Department of
Education and Early Development are under Art. III, Sec. 26 of
the Alaska Constitution, which indicates the board heads the
department and is confirmed by the legislature.
SENATOR SHOWER responded that was why he asked for alternate
methods. He suggested a half step would be to add "and the
commissioner" which may prevent a constitutional challenge. He
indicated that this language might help bridge the concern and
it may be worth going through with a challenge.
2:21:30 PM
SENATOR MICCICHE stated that this board is an interim board
that will get the legislature to the next step. He expressed
concern that this board has the structural authority to
operate AMHS. He said he would like to get there. He offered
his view that this tries to drag a subject-matter board to
suggest fundamental changes to how AMHS operates, its vessels,
and routes and convert it into a relatively new one. He
offered support for an independent AMHS structure. He said he
viewed SB 103 as the halfway point. Further, he agreed that
the legislature had not gotten anywhere. He offered his belief
that OPB can provide the expertise to identify recommended
changes. Then a final solution could be made to operate the
board independently. However, he did not believe Amendment 9
was the right direction to take at this time.
2:23:45 PM
SENATOR SHOWER offered his belief that it was problematic to
have AMHS under the commissioner and that the board lacked
sufficient authority. He expressed concern that this board
will not affect change because it will still be up to the
commissioner to make the final decisions. He offered his
belief that it was time to get something done since the state
does not have two, three, or five years to change the
direction of AMHS.
SENATOR SHOWER withdrew Amendment 9.
2:25:19 PM
SENATOR MICCICHE said he was not concerned about the
constitutional issues. He stated that the committee changed SB
103 by adding legislative appointees to OPB, which will move
the process forward. He offered his belief that this expert
board with its authority can propose AMHS's budget, which will
help the ferry system rely less and less on the state over
time. This board will demand better results, he said.
CHAIR MYERS held SB 103 in committee.
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