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.