Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/13/2021 01:30 PM Senate TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 117 PROCUREMENT; CONSTRUCTION; CONTRACTS TELECONFERENCED
Moved SB 117 Out of Committee
(HB 160 Companion Bill)
-- Invited & Public Testimony --
+ HB 34 NAMING VIETNAM HELI. PILOTS' MEM. BRIDGE TELECONFERENCED
Moved HB 34 Out of Committee
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 63 ALASKA MARINE HIGHWAY OPERATIONS BOARD TELECONFERENCED
Heard & Held
          HB 63-ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                      
                                                                                                                              
1:53:59 PM                                                                                                                    
CHAIR MYERS announced the consideration  of CS FOR HOUSE BILL NO.                                                               
63(STA),  "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  relating to  the                                                               
comprehensive,  intermodal,  long-range transportation  plan  for                                                               
the state."                                                                                                                     
                                                                                                                                
1:54:31 PM                                                                                                                    
KERRY CROCKER, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, Juneau,  Alaska, provided the sponsor  statement and                                                               
sectional  analysis  on  behalf  of  the sponsor  of  HB  63.  He                                                               
paraphrased the sponsor statement, which read:                                                                                  
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     This bill  would establish a nine-member  Alaska Marine                                                                    
     Highway (AMHS)  Operation's Board, with  members having                                                                    
     the skills  and experience of  a ferry commission  or a                                                                    
     marine  business  board.  The   board  would  have  the                                                                    
     ability   to  assess   and   suggest  marine   business                                                                    
     practices  that  enhance   revenue  and  reduce  costs.                                                                    
     Members  of   the  board  would  be   chosen  based  on                                                                    
     experience in  personnel management,  ship maintenance,                                                                    
     construction  and  repair,  plans and  activities,  and                                                                    
     they  would  also  have   insight  on  fleet  strategy,                                                                    
     reliability and other service objectives.                                                                                  
                                                                                                                                
     A  continuing  challenge  for AMHS  has  been  frequent                                                                    
     change in  policy direction, coupled  with insufficient                                                                    
     appreciation   of   long-term  implications   of   such                                                                    
     changes.  Lack   of  clarity  and   long-term  planning                                                                    
     objectives  such  as  fleet design,  vessel  deployment                                                                    
     strategy, and marine business  expertise have also been                                                                    
     a hindrance.                                                                                                               
                                                                                                                                
     A Marine  Advisory Board  was established  under Alaska                                                                    
     Statute (AS) 19.65.110, and  though formed with capable                                                                    
     individuals,  it  is   not  structured  to  effectively                                                                    
     direct AMHS with its  large marine business operations,                                                                    
     planning, or  solutions for issues it  currently faces.                                                                    
     Recent agendas  suggest the  Marine Advisory  Board has                                                                    
     kept   community   stakeholders    informed   of   AMHS                                                                    
     activities and  budges and  provided them  with general                                                                    
     feedback  about AMHS  service. Currently  the board  is                                                                    
     comprised of  members from  ferry service  areas, which                                                                    
     brings  public transparency  and community  engagement,                                                                    
     however  the  system   cannot  survive  with  community                                                                    
     feedback  alone. The  members  must additionally  weigh                                                                    
     business  practices  and  have expertise  in  strategic                                                                    
     planning.                                                                                                                  
                                                                                                                                
1:56:37 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     The   AMHS  Marine   Operations  Board   would  provide                                                                    
     professional advice  focused on business  and financial                                                                    
     practices   of  the   ferry  system,   including  fleet                                                                    
     planning,  maintenance,  pricing, service  models,  and                                                                    
     capital   asset   investment.   The  board   would   be                                                                    
     comparable to  a board of directors  providing business                                                                    
     leadership  and  long-term  strategic  planning  for  a                                                                    
     corporation.                                                                                                               
                                                                                                                                
1:57:11 PM                                                                                                                    
MR. CROCKER read the sectional analysis for HB 63.                                                                              
                                                                                                                                
     Section 1:  Changes 19.05.030 by  adding two  duties to                                                                    
     the Department  of Transportation. 19.05.030  (8) which                                                                    
     requires  the  Department  to  review  and  respond  to                                                                    
     recommendations by the Marine  Operations Board and (9)                                                                    
     to report whether  or not the Alaska  Marine Highway is                                                                    
     meeting performance goals.                                                                                                 
                                                                                                                                
     Section 2:  Requires the Board to  create comprehensive                                                                    
     long term  and short-term  plans and provides  them the                                                                    
     framework  detailing what  should  be  included in  the                                                                    
     plans.  Requires  the  Department to  submit  both  the                                                                    
     short-term and long-term  plans, revisions, and updates                                                                    
     to the legislature and the  governor and make the plans                                                                    
     available to the public.                                                                                                   
                                                                                                                                
1:57:58 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section 3: Changes  the name of the  board from "Marine                                                                    
     Transportation  Advisory   Board"  (MTAB)   to  "Alaska                                                                    
     Marine Highway Operations Board".                                                                                          
                                                                                                                                
     Section 4: Repeals AS 19.65.120(a)  and is reenacted to                                                                    
     do  the  following:  (a) Creates  a  nine-member  board                                                                    
     instead   of   twelve,   which  includes   the   deputy                                                                    
     commissioner  of transportation  and public  facilities                                                                    
     and requires each member to  be an Alaska resident. (1)                                                                    
     Requires one  member to be a  recognized union employee                                                                    
     from the Alaska Marine Highway,  to be appointed by the                                                                    
     governor.  Page |  2 (2)  Requires one  member from  an                                                                    
     Alaska native  organization or tribe, appointed  by the                                                                    
     governor (3)  Requires six members  of the  public: (A)                                                                    
     That   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  (B) Two                                                                    
     of  which are  appointed by  the governor,  two by  the                                                                    
     speaker of  the house and  two by the president  of the                                                                    
     senate.                                                                                                                    
                                                                                                                                
1:59:20 PM                                                                                                                    
     Section  5: Creates  staggered  six-year  terms on  the                                                                    
     board instead  of three-year  terms, with  exception of                                                                    
     the  deputy  commissioner.  If  a  vacancy  arises,  it                                                                    
     allows for  a new appointment  to be made to  serve out                                                                    
     the remaining term of the vacant seat.                                                                                     
                                                                                                                                
     Section 6:  Exempts the deputy commissioner  from being                                                                    
     removed from the board.                                                                                                    
                                                                                                                                
     Section 7:  Requires the  board to  provide orientation                                                                    
     about  the Alaska  Marine Highway  System to  the newly                                                                    
     appointed   members.    Also   allows    for   regional                                                                    
     development  associations to  make recommendations  for                                                                    
     appointments to the board.                                                                                                 
                                                                                                                                
2:00:06 PM                                                                                                                    
MR. CROCKER continued:                                                                                                          
                                                                                                                                
     Section   8:  Requires   the   Department  to   provide                                                                    
     information at  the request  of the  board in  a timely                                                                    
     manner.                                                                                                                    
                                                                                                                                
     Section 9:  The board  will provide  recommendations to                                                                    
     the  commissioner  of  the department.  (f)  creates  a                                                                    
     mechanism for reporting if  the recommendations are not                                                                    
     followed. (g)  allows the board  to create  a taskforce                                                                    
     consisting of non-board  members to investigate matters                                                                    
     relevant.  (h)  Requires  the board  to  annually  make                                                                    
     recommendations regarding preparation  of the "STIP" to                                                                    
     the department.                                                                                                            
                                                                                                                                
     Section 10: Changes the name  of the board from "Marine                                                                    
     Transportation  Advisory   Board"  (MTAB)   to  "Alaska                                                                    
     Marine Highway Operations Board".                                                                                          
                                                                                                                                
     Section 11  AS 44.0Section  11: Amends  44.42.050(a) to                                                                    
     require   the    commissioner   to    incorporate   the                                                                    
     comprehensive long-term  plan recommended by  the board                                                                    
     into the long-range plan required under the statute.                                                                       
                                                                                                                                
2:01:19 PM                                                                                                                    
     Section 12: Repeals 19.65.120(B)                                                                                           
                                                                                                                                
     Section  13: Once  this bill  is enacted,  this section                                                                    
     directs  the terms  of members  of  the current  Marine                                                                    
     Transportation   Advisory  Board   to  expire   on  the                                                                    
     effective  date and  sets new  staggered terms  for the                                                                    
     members of the Alaska Marine Highway Operations Board.                                                                     
                                                                                                                                
2:01:53 PM                                                                                                                    
SENATOR KIEHL asked whether the intention was for the board to                                                                  
only consider vessels or if it would also include shoreside                                                                     
activities, such as strategy, reliability and reservations.                                                                     
                                                                                                                                
MR. CROCKER responded that the sponsor's intent was that all                                                                    
aspects of AMHS would be covered, including terminals and                                                                       
marketing.                                                                                                                      
                                                                                                                                
2:03:06 PM                                                                                                                    
SENATOR   MICCICHE  recalled   that   the  committee   previously                                                               
considered  and  amended  [SB  103] with  respect  to  the  board                                                               
composition for  an Alaska Native  from a coastal  community that                                                               
is served  by the AMHS. However,  that language does not  seem to                                                               
be part of this bill. The  committee agreed it was important that                                                               
the Alaska  Native participant be  from a coastal  community that                                                               
the AMHA serves.                                                                                                                
                                                                                                                                
MR.  CROCKER  answered   that  was  covered  in  HB   63  [in  AS                                                               
19.65.120(a)(2)],  which read  "one representative  of an  Alaska                                                               
Native organization  or tribe who  is currently from  a community                                                               
served  by the  Alaska marine  highway system,  appointed by  the                                                               
governor;".                                                                                                                     
                                                                                                                                
2:04:13 PM                                                                                                                    
SENATOR KIEHL  referred to another  change the committee  made to                                                               
[SB  103] was  to require  the Alaska  Marine Highway  Operations                                                               
Board to  propose an  operating and capital  budget ahead  of the                                                               
governor's usual  budget schedule.  He asked whether  the sponsor                                                               
considered this.                                                                                                                
                                                                                                                                
MR.  CROCKER  answered  that  the  sponsor  believed  this  would                                                               
inherently happen when developing  the short and long-term plans.                                                               
The sponsor  did not  think it  was possible  to craft  the plans                                                               
without considering a budget.                                                                                                   
                                                                                                                                
2:05:31 PM                                                                                                                    
CHAIR MYERS opened public testimony on HB 63.                                                                                   
                                                                                                                                
2:05:49 PM                                                                                                                    
SHANNON  ADAMSON, Alaska  Regional Representative,  International                                                               
Organization of  Masters, Mates and Pilots,  Juneau, Alaska, said                                                               
she serves  on the current  Marine Transportation  Advisory Board                                                               
(MTAB). She spoke  in support of HB 63 because  it created a more                                                               
diverse  board membership  than the  current MTAB.  MM&P believes                                                               
this will help depoliticize the  board and isolate AMHS from some                                                               
political infighting, she  said. HB 63 also  includes language to                                                               
require that  DOTPF incorporate the  board's short  and long-term                                                               
plans, which  would help the  board with existing  management and                                                               
create  better solutions.  As a  current MTAB  member, she  found                                                               
that  aspect  invaluable because  DOTPF  has  not adopted  MTAB's                                                               
recommendations. She offered her view  that increasing funding to                                                               
AMHS would  not produce significant  positive changes  in service                                                               
or  sustainability unless  AMHS's  management  structure were  to                                                               
change. Every report  related to AMHS has  recommended changes to                                                               
its management structure. This bill  starts that process and MM&P                                                               
looks forward to that change.                                                                                                   
                                                                                                                                
2:07:36 PM                                                                                                                    
SENATOR SHOWER asked  whether MM&P would support  moving AMHS out                                                               
of DOTPF.                                                                                                                       
                                                                                                                                
MS.  ADAMSON  responded  that MM&P  would  support  any  positive                                                               
change to AMHS's  current structure. The current  system does not                                                               
work, so that any change would be positive.                                                                                     
                                                                                                                                
2:08:32 PM                                                                                                                    
BEN   GOLDRICH,  representative,   Marine  Engineers   Beneficial                                                               
Association  (MEBA), Juneau,  Alaska,  said  MEBA represents  the                                                               
engineers on  board AMHS  vessels and shoreside.  He said  he was                                                               
fully supportive of Ms. Adamson's  comments. Although he does not                                                               
work  on the  vessels, he  has worked  closely with  AMHS for  18                                                               
years.  He  said Governor  Dunleavy  appointed  him to  serve  on                                                               
AMHS's Reshaping Work Group. One  recommendation of the group was                                                               
to  change  AMHS's  management structure,  which  MEBA  views  as                                                               
necessary.                                                                                                                      
                                                                                                                                
2:09:42 PM                                                                                                                    
SENATOR SHOWER  asked if he  would support moving AMHS  being out                                                               
of DOTPF.                                                                                                                       
                                                                                                                                
MR. GOLDRICH answered that MEBA would support such a change.                                                                    
                                                                                                                                
2:10:12 PM                                                                                                                    
CHAIR MYERS,  after first determining  no one wished  to testify,                                                               
closed public testimony on HB 63.                                                                                               
                                                                                                                                
[HB 63 was held in committee.]                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB34 Sponsor Statement 2.25.2021.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Bridge Images 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Vietnam Helicopter Memorial - Time Magazine 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - VHPA Honored 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Helicopters in Vietnam 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - Air & Space Magazine Article 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
HB34 Additional Info - VHPA Website 2.7.2020.pdf STRA 5/13/2021 1:30:00 PM
HB 34
SB 117 Sponsor Statement.pdf STRA 5/13/2021 1:30:00 PM
SB 117
SB 117 Sectional Analysis 3.31.2021.pdf STRA 5/13/2021 1:30:00 PM
SB 117
CMGC Award Process - Flow Chart STEP 2.pdf STRA 5/13/2021 1:30:00 PM
SB 117
CMGC Award Process - Flow Chart STEP 1.pdf STRA 5/13/2021 1:30:00 PM
SB 117