Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/15/2021 01:30 PM Senate TRANSPORTATION

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 63 ALASKA MARINE HIGHWAY OPERATIONS BOARD TELECONFERENCED
Moved SCS CSHB 63(TRA) Out of Committee
+ HB 160 PROCUREMENT; CONSTRUCTION; CONTRACTS TELECONFERENCED
Moved CSHB 160(TRA) AM Out of Committee
(SB 117 Companion Bill - TRA Moved Out 5/13)
+ Bills Previously Heard/Scheduled TELECONFERENCED
          HB 63-ALASKA MARINE HIGHWAY OPERATIONS BOARD                                                                      
                                                                                                                                
1:46:18 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."                                                                                                                     
                                                                                                                                
CHAIR  MEYERS  asked  Mr. Crocker  to  provide  opening  comments                                                               
before the committee considered the two amendments.                                                                             
                                                                                                                                
1:46:38 PM                                                                                                                    
KERRY CROCKER, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature, Juneau,  Alaska, summarized that HB  63 modifies the                                                               
system of governance  in the Alaska Marine Highway.  He said this                                                               
had  been  an  issue  since  1982. He  said  he  hoped  that  the                                                               
committee will move the bill forward.                                                                                           
                                                                                                                                
CHAIR MYERS noted who was available to answer questions.                                                                        
                                                                                                                                
1:47:36 PM                                                                                                                    
CHAIR MYERS moved Amendment 1, work order 32-LS0286\N.1.                                                                        
                                                                                                                                
                                                 32-LS0286\N.1                                                                  
                                                       Fisher                                                                   
                                                      5/14/21                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                    BY SENATOR MEYERS                                                                 
          TO:  CSHB 63(STA)                                                                                                     
                                                                                                                                
                                                                                                                                
     Page 4, lines 12-26:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
1:47:45 PM                                                                                                                    
SENATOR MICCICHE objected for discussion purposes.                                                                              
                                                                                                                                
CHAIR  MYERS explained  that Amendment  1 removes  Section 7.  It                                                               
provides that a regional  development organization representing a                                                               
region of  the state  containing a  community dependent  upon the                                                               
Marine Highway  System may recommend  a person to fill  a vacancy                                                               
on  the board.  He  said regional  development organizations  are                                                               
vital resources, but this section  elevates one organization over                                                               
other  people or  organizations that  may also  want to  nominate                                                               
people to the board.                                                                                                            
                                                                                                                                
He asked Mr. Crocker for the sponsor's view of the amendment.                                                                   
                                                                                                                                
1:49:05 PM                                                                                                                    
MR. CROCKER reported that the sponsor supports Amendment 1 to                                                                   
narrow the board's scope.                                                                                                       
                                                                                                                                
1:49:35 PM                                                                                                                    
SENATOR MICCICHE removed his objection.                                                                                         
                                                                                                                                
SENATOR KIEHL asked for the reason to remove both paragraphs.                                                                   
                                                                                                                                
CHAIR MYERS replied he was asked to offer this amendment and                                                                    
that language seemed superfluous.                                                                                               
                                                                                                                                
1:50:21 PM                                                                                                                    
CHAIR MYERS found no further objection, so Amendment 1 passed.                                                                  
                                                                                                                                
1:50:28 PM                                                                                                                    
CHAIR MYERS moved to adopt Amendment 2, work order 32-                                                                          
LS0286\N.2.                                                                                                                     
                                                                                                                                
                                                 32-LS0286\N.2                                                                  
                                                       Fisher                                                                   
                                                      5/14/21                                                                   
                                                                                                                                
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE                 BY SENATOR MEYERS                                                                     
          TO:  CSHB 63(STA)                                                                                                     
                                                                                                                                
                                                                                                                                
     Page 2, line 24, following "attained":                                                                                 
          Insert ", must include recommendations for the                                                                    
     state operating and capital budgets,"                                                                                  
                                                                                                                                
SENATOR MICCICHE objected for discussion purposes.                                                                              
                                                                                                                                
CHAIR MYERS  explained that  Amendment 2  makes it  explicit that                                                               
the short-term  plan must include  recommendations for  the state                                                               
operating and  capital budgets. This  matches what  the committee                                                               
added to SB 103.                                                                                                                
                                                                                                                                
He asked Mr. Crocker if he had any comment.                                                                                     
                                                                                                                                
1:51:35 PM                                                                                                                    
MR. CROCKER stated that the sponsor supports Amendment 2.                                                                       
                                                                                                                                
1:51:43 PM                                                                                                                    
SENATOR MICCICHE removed his objection.                                                                                         
                                                                                                                                
1:51:48 PM                                                                                                                    
CHAIR MYERS found no further objection and Amendment 2 passed.                                                                  
                                                                                                                                
1:52:00 PM                                                                                                                    
CHAIR MYERS asked  Mr. Mills and Susan Pollard to  comment on the                                                               
separation   of   powers    question   related   to   legislative                                                               
appointments.                                                                                                                   
                                                                                                                                
1:52:30 PM                                                                                                                    
ANDY MILLS, Special Assistant to  the Commissioner, Department of                                                               
Transportation  and Public  Facilities  (DOTPF), Juneau,  Alaska,                                                               
noted earlier  comments about giving  the board "more  teeth." He                                                               
stated that based  on the composition of the board  and the legal                                                               
memos  that talk  about  the  advisory nature  of  the board  not                                                               
creating a  separation of powers  issue, the department  looks at                                                               
that as an indication that this board is to be advisory.                                                                        
                                                                                                                                
1:54:33 PM                                                                                                                    
SUSAN  POLLARD,  Chief  Assistant  Attorney  General,  Statewide,                                                               
Civil Division, Legislative  and Regulations Sections, Department                                                               
of Law,  Juneau, Alaska, referred  to the legal memo  dated April                                                               
6, 2021,  by Mr.  Fischer with  Legislative Legal  Services. That                                                               
memo  points out  that  because this  board  provides advice  and                                                               
recommendations   of  an   advisory  nature,   that  avoids   the                                                               
separation  of  powers issue  that  would  arise if  the  board's                                                               
recommendations  were implemented  differently.  Given that,  the                                                               
bill  adds  clarity  to  the   robust  advisory  nature  of  this                                                               
particular board, she said.                                                                                                     
                                                                                                                                
1:56:22 PM                                                                                                                    
SENATOR MICCICHE  said he supports  HB 63.  He said he  views the                                                               
board as advisory.  Further, he hopes it will  have the expertise                                                               
to recognize  the inefficiencies of  the current system  yet find                                                               
affordable  "outside  the  box"  solutions, so  the  system  will                                                               
survive.  He said  he was  sorry the  restructuring skillset  was                                                               
removed  from the  original  bill.  He said  that  as the  Senate                                                               
President, he would find that  requiring the specific skillset as                                                               
important when  appointing board members. People  who restructure                                                               
failing businesses  are very  good at  analyzing the  problem and                                                               
coming up  with solutions to  restructure the business  model. He                                                               
compared it to  the skillsets used in corporate  America and some                                                               
municipal and state business models.  He restated support for the                                                               
bill.   The  bill   provides  an   element   of  separation   and                                                               
independence for  the board. He said  it will take the  system to                                                               
the next step if the right people are appointed.                                                                                
                                                                                                                                
1:58:43 PM                                                                                                                    
CHAIR MYERS said  he tended to agree. To the  point about looking                                                               
for an  expert in  restructuring, he said  he believes  the House                                                               
member  responsible for  removing  that provision  was trying  to                                                               
prevent hamstringing  the board if  they could not  find somebody                                                               
with that  expertise who was willing  to serve. He said  that the                                                               
intent  was to  have that  expertise  even if  it is  not in  the                                                               
statute.                                                                                                                        
                                                                                                                                
1:59:38 PM                                                                                                                    
SENATOR KIEHL  said he believes  it will  be helpful to  have the                                                               
Senate  President and  Speaker  of  the House  make  some of  the                                                               
appointments with  an eye out  for people who have  the expertise                                                               
to evaluate what needs to  change with the Marine Highway System.                                                               
He said  he believes that  the restructuring expert  that Senator                                                               
Micciche mentioned will have an  easier job than usual because 30                                                               
years of  study outline the things  that need to change  with the                                                               
model.  As  Mr.  Mills  and  Ms. Pollard  noted,  this  board  is                                                               
advisory, so  it will remain  the executive branch's job  to take                                                               
the recommendations and  put them into action. It  will come down                                                               
to whether  the executive branch  makes the changes and  uses the                                                               
board.  If that  happens, he  said there  is potential  for great                                                               
success, but if it doesn't  happen, the committee will be looking                                                               
at a very different bill next time.                                                                                             
                                                                                                                                
2:01:19 PM                                                                                                                    
CHAIR MEYERS discerned  that Mr. Crocker had  no closing comments                                                               
and solicited a motion.                                                                                                         
                                                                                                                                
2:01:52 PM                                                                                                                    
SENATOR MICCICHE moved to report  CSHB 63, work order 32-LS0286\N                                                               
as amended,  from committee with individual  recommendations [and                                                               
attached fiscal note(s).]                                                                                                       
                                                                                                                                
CHAIR MYERS stated  that without objection, SCS  CSHB 63(TRA) was                                                               
reported from the Senate Transportation Standing Committee.                                                                     

Document Name Date/Time Subjects
HB 160 Sponsor Statement.pdf STRA 5/15/2021 1:30:00 PM
HB 160
HB 160 Sectional Analysis 5.13.2021.pdf STRA 5/15/2021 1:30:00 PM
HB 160
HB 160 - CMGC Award Process - Flow Chart STEP 2 4.27.2021.pdf STRA 5/15/2021 1:30:00 PM
HB 160
HB 160 - CMGC Award Process - Flow Chart STEP 1 4.27.2021.pdf STRA 5/15/2021 1:30:00 PM
HB 160