Legislature(2021 - 2022)BELTZ 105 (TSBldg)
05/03/2022 01:30 PM Senate TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB166 | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 166 | TELECONFERENCED | |
| += | SB 170 | TELECONFERENCED | |
SB 170-MARINE HIGHWAY CORPORATION
1:52:01 PM
CHAIR MYERS reconvened the meeting and announced the
consideration of SENATE BILL NO. 170 "An Act relating to the
Alaska marine highway system; establishing the Alaska Marine
Highway Corporation; and providing for an effective date."
[SB 170 was previously heard on 2/17/22, 2/22/22, 3/17/22,
3/22/22, 3/24/22, and 4/5/22.]
1:52:22 PM
SENATOR KIEHL moved to adopt Amendment 1, work order 32-
LS0528\W.5.
32-LS0528\W.5
Bannister
3/29/22
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 5, lines 11 - 13:
Delete "[BOATS AND VESSELS OF THE MARINE HIGHWAY
SYSTEM;
(iv)]"
Insert "boats and vessels of the Alaska marine
highway system;
(iv)"
Page 5, lines 15 - 16:
Delete "and boats and vessels of the Alaska
marine highway system"
1:52:29 PM
CHAIR MYERS objected for discussion purposes.
1:52:33 PM
SENATOR KIEHL explained that Amendment 1 would retain the major
projects of the boats and vessels of the Alaska Marine Highway
System (AMHS) in the Percent for Art Program. He stated that
public art is good for the general public, Alaskans, and
visitors to Alaska. It is beneficial to Alaska's economy because
Alaskan artists bid on these projects, making the public spaces
better places to be. These projects offer opportunities for
communities to educate visitors about Alaska and Alaska's
cultural history. Amendment 1 would retain AMHS in the existing
program.
1:53:28 PM
SENATOR MICCICHE remarked that a percentage of revenue has been
directed towards the arts since the ancient Greeks and Romans.
SENATOR KIEHL related his understanding that the Roman Republic
did not fund public art but relied on ultra-wealthy patrons. He
recalled that when Rome entered its imperial period, it provided
public funding for the arts.
1:54:43 PM
CHAIR MYERS stated that he was unsure whether the Alaska
Railroad Corporation was covered by the Percent for Art Program.
SENATOR KIEHL answered that he was unsure.
CHAIR MYERS expressed his interest in knowing whether ARRC was
subject to the Percent for Art Program since it is a state
corporation.
SENATOR KIEHL offered to bring up Amendment 1 later on in the
meeting.
1:55:39 PM
SENATOR MICCICHE wondered whether this would add to the fiscal
note and if the one percent for art was included in the overall
construction cost.
SENATOR KIEHL related his understanding that the one percent for
art would reflect one percent of the total project cost.
CHAIR MYERS recalled that the Tustumena Replacement Vessel (TRV)
estimate was approximately $250 million, so one percent would be
a significant amount.
CHAIR MYERS rolled Amendment 1 to the bottom of the amendments.
1:56:59 PM
SENATOR KIEHL moved to adopt Amendment 2, work order 32-
LS0528\W.6.
32-LS0528\W.6
Bannister
3/29/22
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 9, line 16, following "state.":
Insert "The continued operation of the Alaska
marine highway system by the corporation as provided in
this chapter is an essential government function of the
state."
1:57:03 PM
CHAIR MYERS objected for discussion purposes.
1:57:09 PM
SENATOR KIEHL stated that Amendment 2 would consider the
continued operation of the ferries as an essential government
function of the state, which matches the language in AS
42.40.010 for the Alaska Railroad Corporation (ARRC).
1:57:36 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 2 was adopted
1:57:45 PM
SENATOR KIEHL moved to adopt Amendment 3, work order 32-
LS0528\W.7.
32-LS0528\W.7
Bannister
3/29/22
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 9, line 24:
Delete "designate the deputy commissioner"
Insert "not designate another person"
1:57:47 PM
CHAIR MYERS objected for discussion purposes.
1:57:51 PM
SENATOR KIEHL explained that the bill contained disparate
treatment for the two commissioners. He stated that the
Department of Commerce, Community and Economic Development
(DCCED) commissioner could designate someone to serve on the
board, but the Department of Transportation and Public
Facilities (DOTPF) commissioner could not. Amendment 3 would
treat the two commissioners the same by not allowing the DOTPF
commissioner to select a designee. He emphasized the importance
of having DOTPF management engaged with the corporation. The
bill places the corporation under the Department of Commerce,
Community and Economic Development (DCCED). The commissioners
must coordinate the Surface Transportation Improvement Program
(STIP) and intermodal transportation structure. He offered his
view that involving DOTPF at the highest level would be
valuable.
1:58:53 PM
CHAIR MYERS said he was conflicted on Amendment 3. He offered
his view that one reason to create the corporation was to allow
the corporation to manage AMHS instead of the marine highway
falling under DOTPF. He agreed that it was important for AMHS to
mesh with the STIP, which could be a balancing act. He wondered
whether allowing DOTPF to appoint a designee would help provide
some distance.
SENATOR KIEHL acknowledged that these were fine-grained
distinctions because the commissioner-designee could be a
political appointee such as a deputy commissioner or division
director. He stated that Amendment 3 was not meant to increase
the distance but to better integrate AMHS with the department by
indicating the top DOTPF official would serve on the board.
2:00:19 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 3 was adopted.
2:00:33 PM
SENATOR KIEHL moved to adopt Amendment 4, work order 32-
LS0528\W.8.
32-LS0528\W.8
Bannister
3/29/22
AMENDMENT 4
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 10, following line 8:
Insert a new subsection to read:
"(f) One of the members appointed under (b)(3)
of this section shall be a representative of a union
that represents employees of the corporation."
Reletter the following subsections accordingly.
2:00:35 PM
CHAIR MYERS objected for discussion purposes.
2:00:38 PM
SENATOR KIEHL explained that Amendment 4 would specify that one
union representative serve on the board. This would match the
Alaska Marine Highway Operations Board that passed the
legislature last year.
CHAIR MYERS stated that he was comfortable having a current
union employee serving on the board. He explained that it is
often helpful to receive feedback on actual operations. He
expressed concern that a union representative, who is not an
AMHS employee, serving on the board could be problematic because
their interests may differ. He expressed concern that it might
create adversarial relationships during contract negotiations or
other conflicts of interest.
2:02:24 PM
SENATOR KIEHL pointed out that this language does not state it
cannot be a current employee. He offered his view that it could
create a problematic dynamic if the employee were overseeing the
head of the ferry system. However, he did not believe this
language was so prescriptive that it would require the union
representative to be an employee of the corporation.
SENATOR KIEHL offered his view that it would be beneficial to
have someone who understands ship sailings and terminal
operations. He suggested that a union official serving on the
board would be accountable to the employees. Amendment 4 would
keep both options open.
2:03:39 PM
SENATOR MICCICHE said Amendment 4 reads that one member
appointed under (b)(3) of this section shall be a representative
of a union that represents employees of the corporation. He
stated that subparagraph (g) allows not more than one, but
subparagraph (h) does not allow a current state employee to
serve. He suggested that if the committee were to pass
subparagraph (f), subparagraph (h) would still not allow a
current state employee to serve on the board; however, it could
be a past union representative.
2:04:17 PM
SENATOR KIEHL agreed with Senator Micciche that a former
employee could serve. He highlighted that the fundamental point
of Amendment 4 is to require at least one union representative.
2:04:57 PM
SENATOR MICCICHE asked if a union representative could be
someone who is not a current state employee.
2:05:30 PM
CAPTAIN JOHN FALVEY, General Manager, Marine Highway System,
Department of Transportation and Public Facilities (DOTPF),
Ketchikan, Alaska, related his understanding that the question
was whether a union official could be someone not currently
working as an AMHS employee.
SENATOR MICCICHE referred to the language in Amendment 4. He
asked whether a representative of the union representing
employees of the corporation could be someone who is not a
current state employee.
CAPTAIN FALVEY answered yes. He clarified that all three unions
have management representatives who are not union members
sailing on AMHS vessels.
2:06:30 PM
SENATOR MICCICHE said he stands corrected. He offered his belief
that it would be helpful to have past employees serving on the
board, which is allowed under the current language. He stated
that Amendment 4 would allow someone designated in paragraphs
(1)-(6) to serve on the board but those individuals may not have
the experience the committee seeks to provide. He reiterated
that it would allow any union representative to serve.
2:07:19 PM
CHAIR MYERS maintained his objection.
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 4, and Senators Micciche and Myers voted against it.
Therefore, Amendment 4 failed by a 1:2 vote.
2:08:01 PM
SENATOR KIEHL moved to adopt Amendment 5, work order 32-
LS0528\W.9.
32-LS0528\W.9
Bannister
3/29/22
AMENDMENT 5
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 10, line 18:
Delete "or former"
2:08:07 PM
CHAIR MYERS objected for discussion purposes.
2:08:12 PM
SENATOR KIEHL explained that Amendment 5 would delete "or
former" from subparagraph (g). He stated that the goal was to
broaden the pool. It maintains the restriction that not more
than one member appointed by the governor may be a current union
member whose employees work for the corporation. Removing the
restriction for former members would open up the possibility of
someone who sailed several seasons on AMHS vessels and later
acquired skills in the private sector to serve on the board. He
stated that since they once served as a union member, they would
be barred from serving on the board.
2:09:17 PM
CHAIR MYERS stated that he made a fair point. He offered his
view that someone who used AMHS to get into marine operations
could be a valuable addition to the board.
2:09:45 PM
SENATOR MICCICHE stated he would like to have employees involved
since most of them are union members. He offered his view that
these former members could provide a valuable perspective to the
board.
2:10:07 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 5 was adopted.
2:10:22 PM
SENATOR KIEHL moved to adopt Amendment 6, work order 32-
LS0528\W.10.
32-LS0528\W.10
Bannister
3/28/22
AMENDMENT 6
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 12, lines 9 - 10:
Delete "board may appoint"
Insert "chief executive officer may hire"
Page 12, line 11:
Delete "an executive officer"
Insert "a chief executive officer and a chief
financial officer"
2:10:26 PM
CHAIR MYERS objected for discussion purposes.
2:10:30 PM
SENATOR KIEHL explained Amendment 6 would allow the board to
appoint the Chief Executive Officer (CEO) and Chief Financial
Officer (CFO). Rather than the board, these officers would hire
and establish the pay for other executive officers. This would
allow the board the time and authority to focus on strategic
management and leadership but not be involved in the
corporation's day-to-day operations.
2:11:18 PM
CHAIR MYERS stated he was sympathetic to the concept of a
unified executive structure.
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 6 was adopted.
2:11:40 PM
SENATOR KIEHL moved to adopt Amendment 7, work order 32-
LS0528\W. 11.
32-LS0528\W.11
Bannister
3/29/22
AMENDMENT 7
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 12, line 30:
Delete "$500,000"
Insert "$5,000,000"
2:11:43 PM
CHAIR MYERS objected for discussion purposes.
2:11:47 PM
SENATOR KIEHL explained that Amendment 7 would slightly loosen
direct board involvement regarding capital projects. The bill
requires board approval for capital projects over $500,000.
Amendment 7 would raise the limit to $5 million. For example,
the management team could decide to replace the roof on a
terminal or approve significant annual service on a vessel, but
it could not purchase or build a new project. It would also
require board approval for periodic vessel overhauls.
2:12:53 PM
CHAIR MYERS stated that the bill was initially drafted to
include $50,000. He highlighted that the ferry system has
encountered been contentious. He wanted to ensure that the board
had sufficient oversight. He expressed his willingness to raise
that figure to $500,000.
2:13:46 PM
SENATOR MICCICHE suggested that the figure should be enough to
counter the direction of the board. For instance, if the board
decided a specific port did not require replacing the reef at
the terminal because the ferry system was going to switch from
regularly operating to quarterly vessel service and invest
elsewhere. He asked whether adopting Amendment 7 by reducing the
cap to $5 million would allow management enough flexibility to
make decisions. He offered his view that $5 million was probably
too high, but the cap should be above $500,000. He acknowledged
that it was not for vessel replacement. He expressed concern
that it might cause the leadership team, the employees, to work
against the board. He stated that the goal was to focus on a
board-led executive team operating the system.
2:15:29 PM
SENATOR MICCICHE moved to adopt a Conceptual Amendment 1 to
Amendment 7 to reduce the $5,000,000 figure to $2,000,000.
2:15:36 PM
CHAIR MYERS objected for discussion purposes.
2:15:41 PM
SENATOR KIEHL stated the $5,000,000 was not a perfect figure. He
stated that he did not have any objection to Conceptual
Amendment 1 to Amendment 7, which would reduce the amount to
$2,000,000.
2:16:10 PM
CHAIR MYERS removed his objection; he found no further
objection, and Conceptual Amendment 1 to Amendment 7 was
adopted.
CHAIR MYERS stated that Conceptual Amendment 1 to Amendment 7,
as amended, was before the committee.
2:16:30 PM
CHAIR MYERS removed his objection to Amendment 7; he found no
further objection, and Amendment 7, as amended, was adopted.
2:16:47 PM
SENATOR KIEHL moved to adopt Amendment 8, work order 32-
LS0528\W.12.
32-LS0528\W.12
Bannister
3/29/22
AMENDMENT 8
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 13, lines 23 - 24:
Delete "and to the corporation's acquisition or
disposal of assets"
2:16:49 PM
CHAIR MYERS objected for discussion purposes.
2:16:54 PM
SENATOR KIEHL explained that Amendment 8 would remove the
rationale for the board to meet in executive session to discuss
the corporation's acquisition or disposal of assets. The board
would be subject to the usual rules for executive sessions per
the Administrative Procedures Act, which would cover any fiscal
implications. He said the board could meet in executive session
to open bids or negotiate contracts. He suggested that the board
might hold conversations about whether to purchase or dispose of
a vessel, terminal, or major facility out of the public view. He
emphasized the importance of the board holding any strategic
discussions in public.
2:18:18 PM
SENATOR MICCICHE wondered whether the board might wish to hold
sensitive competitive discussions about acquisitions of
disposable assets in executive session and come back on the
record to vote on the matter. He expressed concern that it could
compromise someone's competitive position by making it public.
2:19:41 PM
SENATOR KIEHL said he did not have the Administrative Procedures
Act before him but recalled that the board could go into
executive sessions to discuss matters that might have a
detrimental or negative impact on the finances of a government
agency.
2:20:39 PM
SENATOR MICCICHE related a scenario where the Alaska Marine
Highway Corporation purchased a dock from a large company;
however, the corporation also had another offer from a private
entity. He suggested holding conversations in executive session
could protect the other competitor's financial information.
2:21:25 PM
At ease
2:22:39 PM
CHAIR MYERS reconvened the meeting.
CHAIR MYERS stated his interest in incentives for the board or
chief executive officer if it was necessary to dispose or
acquire assets. He expressed concern that holding public
discussions about acquiring or disposing of assets might lead to
leasing rather than purchasing. He related his understanding
that a contract or lease could be discussed under executive
session. He offered his belief that the board could end a lease
in executive session since it would not be disposing of an
asset.
SENATOR KIEHL responded that the short answer was no. He stated
that the Open Meetings Act would require the board to hold
general discussions in public, but the board could discuss any
details in an executive session. He recalled an exception that
allows matters the board to discuss matters in executive session
if they could adversely affect the finances of the public
entity. Thus, opening bids or considering competing offers would
need to be held in an executive session. He offered his belief
that no one would do business with the state if the state
required firms to disclose trade secrets.
2:25:31 PM
CHAIR MYERS related his understanding that if the corporation
wanted to expand service to a new community, it would need to
lease a facility. AMHC could go into executive session to select
a lessee. He expressed concern that it might prejudice the
discussion.
SENATOR KIEHL responded that AMHC would need to advertise to
obtain offers for a lease or purchase. AMHC would hold a general
public discussion about the lease or purchase, but it could
discuss the details in an executive session.
2:27:05 PM
SENATOR MICCICHE asked why this provision was in the bill.
2:27:32 PM
CHAIR MYERS asked for the current process for acquiring or
disposing of assets.
2:28:00 PM
CAPTAIN FALVEY answered that AMHS adheres to the procurement
rules and regulations, such as when AMHS sold its fast ferries.
CHAIR MYERS asked whether the discussions were held in an
executive session.
CAPTAIN FALVEY answered that AMHS went through a sealed bid
process done privately.
2:29:07 PM
SENATOR KIEHL stated that currently, AMHS is an executive branch
agency, but the Open Meetings Act would govern the corporation.
2:29:25 PM
CHAIR MYERS maintained his objection.
2:29:27 PM
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 8, and Senators Micciche and Myers voted against it.
Therefore, Amendment 8 failed by a 1:2 vote.
2:29:58 PM
SENATOR KIEHL moved to adopt Amendment 9, work order 32-LS0528\W
13.
32-LS0528\W.13
Bannister
3/29/22
AMENDMENT 9
OFFERED IN THE SENATE BY SENATOR KIEHL
Page 17, lines 19 - 21:
Delete ", except that each sailing must show
anticipated incremental revenues that meet or exceed
all projected direct incremental costs of providing
the service"
2:30:02 PM
CHAIR MYERS objected for discussion purposes.
2:30:06 PM
SENATOR KIEHL explained that Amendment 9 relates to the general
powers of the corporation. It would delete the requirement that
each sailing show anticipated incremental revenues that meet or
exceed all incremental service costs. He expressed concern that
with that requirement in place, the system would not have any
flexibility but would need to balance the revenues for each
sailing. He characterized it as a little overly prescriptive for
the general goal to have the system recover its costs.
2:31:28 PM
CHAIR MYERS related that one goal was to have the Marine Highway
System function more like a business. He acknowledged that in
the early stages the system would probably not break even on
each run and it might prevent the system from expanding or
changing service.
2:32:23 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 9 was adopted.
2:32:40 PM
SENATOR KIEHL moved to adopt Amendment 10, work order 32-
LS0528\W.14.
32-LS0528\W.14
Bannister
3/29/22
AMENDMENT 10
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 18, line 27:
Delete all material.
Renumber the following paragraph accordingly.
2:32:45 PM
CHAIR MYERS objected for discussion purposes.
2:32:48 PM
SENATOR KIEHL explained that Amendment 10 was a cleanup
amendment. It would delete the language regarding subcontracting
delivery of services. He referred to page 17, line 24, noting
the corporation has broad discretion to enter into contracts,
leases, and other agreements with carriers related to the
activities and operations of the service. Thus, AMHC already has
the authority to contract for services.
2:33:40 PM
CHAIR MYERS recalled holding discussions about subcontracting
out a route. Although he did not think it would be a significant
problem, he was inclined to leave the language in place because
it would allow the corporation to temporarily hire a
subcontractor, such as Allen Marine, to provide ferry services
if a vessel breaks down.
2:35:09 PM
SENATOR MICCICHE offered his view that it was not duplicative,
and it was important for that language to remain.
2:35:57 PM
SENATOR KIEHL withdrew Amendment 10.
2:36:42 PM
SENATOR KIEHL moved to adopt Amendment 11, work order 32-
LS0528\W.15.
32-LS0528\W.15
Bannister
3/29/22
AMENDMENT 11
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 18, line 31, through page 19, line 3:
Delete "(a) The board shall have the financial
records of the corporation audited annually by an
independent certified public accountant experienced in
marine transportation system accounting.
(b)"
Page 19, line 29:
Delete "AS 42.50.260(a)"
Insert "AS 42.50.260"
Following "generated":
Delete ","
Page 44, lines 14 - 18:
Delete "Notwithstanding AS 42.50.260(a), added by
sec. 17 of this Act, the board of directors of the
Alaska Marine Highway Corporation established by
AS 42.50.010, added by sec. 17 of this Act, shall have
the first audit required under AS 42.50.260(a), added
by sec. 17 of this Act, performed after the second
fiscal year of the corporation"
Insert "The first audit under AS 42.50.260, added
by sec. 17 of this Act, shall be performed after the
second fiscal year following establishment of the
Alaska Marine Highway Corporation by AS 42.50.010,
added by sec. 17 of this Act"
2:36:47 PM
CHAIR MYERS objected for discussion purposes.
2:37:09 PM
SENATOR KIEHL moved to adopt Conceptual Amendment 1 to Amendment
11.
2:37:14 PM
CHAIR MYERS objected for discussion purposes.
2:37:36 PM
SENATOR KIEHL explained that Conceptual Amendment 1 to Amendment
11 would require one audit, conducted by an outside auditor,
using the normal Legislative Budget and Audit Committee review
process without requiring that they consult with the governor.
2:38:12 PM
CHAIR MYERS stated that the corporation should make all
financial records available for examination by the Division of
Legislative Audit.
CHAIR MYERS removed his objection; he found no further
objection, and Conceptual Amendment 1 to Amendment 11 was
adopted.
CHAIR MYERS stated that Amendment 11, as amended was before the
committee.
2:39:04 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 11, as amended, was adopted.
2:39:32 PM
At ease
2:40:09 PM
CHAIR MYERS reconvened the meeting.
2:40:20 PM
SENATOR KIEHL moved to adopt Amendment 12, work order 32-
LS0528\W.16.
32-LS0528\W.16
Bannister
3/30/22
AMENDMENT 12
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 22, following line 28:
Insert a new subsection to read:
"(c) The corporation may not sell a dock or
terminal unless the legislature approves the action by
law."
Reletter the following subsections accordingly.
2:40:24 PM
CHAIR MYERS objected for discussion purposes.
2:40:29 PM
SENATOR KIEHL explained that Amendment 12 would require
legislative approval to sell land with a dock or terminal. He
characterized this as comparable to ARRC statutes. It ensures
that the legislature could approve or stop the system from
altogether ending service to a community or divesting itself
from the necessary infrastructure since it is essential to the
total transportation system. He offered his view that Amendment
12 would remove the concern that someone might sell off the
state's assets through a partially-owned subsidiary.
2:42:00 PM
CHAIR MYERS stated his concern was that it seems to provide an
incentive to lease rather than buy. He suggested that expanding
service into an area gives the incentive to back out if it were
leased but not if the corporation bought and built a terminal.
He offered his view that, typically, buying would be the better
option financially. He expressed concern that the corporation
might stick with the lease even if it costs a bit more.
2:43:02 PM
SENATOR MICCICHE stated that the legislature should have faith
in the board. He offered his view that the very reason to sell a
dock or terminal is that the board decides that it cannot afford
more than two voyages a year, but a coastal ferry service offers
to provide weekly service. He offered his view that it could
give a community a much higher service level. He offered his
belief that the committee needs to have faith in the board and
the public corporation. He maintained his view that an effective
board will provide a higher level of service to specific
communities that are marginal today. He indicated that he could
not support Amendment 12.
2:44:32 PM
SENATOR KIEHL offered his view that he and Senator Micciche
believe that a functional board will deliver a higher level of
service to communities. He stated that the state currently has a
mix of state-owned and state-leased terminals. It uses existing
docks in some remote areas have agreements to use existing
docks. He offered his view that Amendment 12 would not throw off
the mix. Where the state had previously spent STIP and state
matching funds on facilities. Before those facilities are sold
it is reasonable to have a check. He offered his view that
Amendment 12 would provide a reasonable check.
2:45:54 PM
CHAIR MYERS maintained his objection.
2:46:03 PM
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 12, and Senators Micciche and Myers voted against it.
Therefore, Amendment 12 failed by a 1:2 vote.
2:46:27 PM
SENATOR KIEHL moved to adopt Amendment 13, work order 32-
LS0528\W.17.
32-LS0528\W.17
Bannister
3/29/22
AMENDMENT 13
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 23, line 16:
Delete "or"
Page 23, line 17, following "AS 44.68.110 - 44.68.140":
Insert "; or
(4) privately owned"
2:46:31 PM
CHAIR MYERS objected for discussion purposes.
2:46:34 PM
SENATOR KIEHL explained that Amendment 13 would allow the
corporation to purchase privately-owned land, but it does not
create a right of eminent domain.
CHAIR MYERS agreed it was a slight oversight. He had not
considered that the corporation might wish to purchase
privately-owned land. He offered his view that Amendment 13
would correct this.
2:47:43 PM
SENATOR MICCICHE referred to page 23, line 16. He asked if he
was removing the first "or."
SENATOR KIEHL agreed. He stated that the "or" would go after
paragraph (3).
2:48:35 PM
CHAIR MYERS related his understanding that this was a technical
change to correct the grammar.
SENATOR MICCICHE said there were two instances of "or that was
a little confusing.
2:48:33 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 13 was adopted.
2:48:57 PM
SENATOR KIEHL moved to adopt Amendment 14, work order 32-
LS0528\W.18.
32-LS0528\W.18
Bannister
3/29/22
AMENDMENT 14
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 23, line 20, following "Act).":
Insert "The corporation may not exchange land
owned by the corporation that has a dock or terminal
unless the legislature approves the exchange by law."
2:49:01 PM
CHAIR MYERS objected for discussion purposes.
2:49:06 PM
SENATOR KIEHL explained that Amendment 14 would require
legislative approval to dispose of a dock or terminal in a land
exchange.
2:49:26 PM
CHAIR MYERS stated that Senator Micciche's point on the previous
amendment relates to Amendment 14 also. He said he understood
the trepidation of not wanting to make it too easy for the board
to end or significantly reduce a service. He highlighted the
importance of getting some tough decision-making out of the
legislature. He stated that the committee must trust the board.
However, it concerns him a bit.
SENATOR KIEHL stated that the legislature must trust but verify.
2:50:29 PM
CHAIR MYERS maintained his objection.
A roll call vote was taken. Senator Kiehl voted in favor of
Amendment 14, and Senators Micciche and Myers voted against it.
Therefore, Amendment 14 failed by a 1:2 vote.
2:51:08 PM
SENATOR KIEHL moved to adopt Amendment 15, work order 32-
LS0528\W.19.
32-LS0528\W.19
Ambrose/Bannister
3/29/22
AMENDMENT 15
OFFERED IN THE SENATE BY SENATOR KIEHL
TO: SB 170
Page 23, line 30:
Delete "may"
Insert "shall"
2:51:12 PM
CHAIR MYERS objected for discussion purposes.
2:51:15 PM
SENATOR KIEHL explained that Amendment 15 would clear up an
ambiguity in the fidelity bond. The current language states that
the corporation may obtain a fidelity bond to cover board
members and executive officers. The bond must be in effect
during the entire tenure in office of the bonded person.
Amendment 15 would change the language from "may" to "shall." He
stated that it is internally consistent and a good, safe
business practice that protects the corporation.
2:52:19 PM
CHAIR MYERS recalled that this provision was also required for
the Alaska Railroad Corporation.
SENATOR KIEHL agreed.
2:52:44 PM
CHAIR MYERS removed his objection; he found no further
objection, and Amendment 15 was adopted.
2:53:31 PM
SENATOR MICCICHE remarked that Senator Kiehl had raised good
points. He noted some difficulties the Alaska Railroad
Corporation had experienced. He offered that starting AHMC with
the proper framework was essential and that the legislature
could make subsequent changes to improve its effectiveness if
needed.
2:55:14 PM
CHAIR MYERS held SB 170 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB166.OpposingLetters.4.29.22.pdf |
STRA 5/3/2022 1:30:00 PM |
HB 166 |
| HB166.VerB.SupportingLetters.4.29.22.pdf |
STRA 5/3/2022 1:30:00 PM |
HB 166 |
| HB166.FiscalNote.DOA.4.29.22.pdf |
STRA 5/3/2022 1:30:00 PM |
HB 166 |
| HB166.SectionalAnalysis.VerB.4.29.22.pdf |
STRA 5/3/2022 1:30:00 PM |
HB 166 |
| HB166.SponsorStmt.VerB.4.29.22.pdf |
STRA 5/3/2022 1:30:00 PM |
HB 166 |