An Act establishing the Alaska Marine and Rail Transportation Authority; relating to ferries and ferry terminals; relating to the Alaska Railroad Corporation; and providing for an effective date.

The intent of this Act is to establish a state-owned authority that would be directly responsible for the operation and management of both the Alaska Railroad Corporation and the Alaska Marine Highway.

In 1985 the State of Alaska purchased the Alaska Railroad from the Federal Government for $20 million dollars. This transaction came with a significant amount of excess land that assists in the operational costs of the railroad. The Alaska Railroad currently has a surplus land base. The Alaska Railroad is not currently under the executive budget act. The Alaska Marine Highway was created under the authority of the Federal Government in 1963 and was not given a land base. For the past several years the Alaska Marine Highway has relied on the general fund for costs because of lack of capital equity base in order to make it self sufficient.

By creating an authority it would allow the excess land to generate revenue and provide a stable funding base for the Alaska Marine and Rail Transportation Authority. The idea is to reduce the requirements to fund the Alaska Marine Highway through the general fund. The overall transportation plan in Alaska would benefit from the re-organization and provide for a system to utilize both services and cut the cost of doing so. Currently the Alaska Marine Highway and the Alaska Railroad share the use of facilities in many locations.

The authority will be a public corporation of the state and a division of the Department of Transportation and Public Facilities. The authority will operate the Alaska marine highway system and the state-owned Alaska Railroad as separate divisions of the authority.

The authority will make all of its financial records available to the legislature and an appointee of the Governor. The authority shall submit an annual budget for the Alaska marine highway system and the Alaska Railroad Corporation to the legislature through the governor.

The primary duties of the authority will be to assist residents, businesses and communities of the state to obtain the highest quality of the marine, rail passenger and freight service. The authority will be responsible to encourage and integrate with other public and private carriers in and outside the state to provide the highest quality of service within the state. The authority is required to employ Alaskan residents to the highest legal level possible.

The authority will operate under the name "Alaska Marine and Rail Transportation Authority." The authority shall prepare a comprehensive long-range plan for the development and improvement of the Alaska marine highway system and the Alaska Railroad.

The authority may acquire by purchase, gift, or exchange land in fee simple or easements that it considers necessary and reasonable for either temporary or permanent public use. The authority may transfer land, other than rail land under AS 44.90.240 that is not considered necessary for use by the marine highway system. The authority will have the power to receive additional land grants from the state. The proceeds of disposal by the Department of Natural Resources shall be credited to the funds from which the purchase of the land was originally made.

It is my hope as sponsor of SB 208 that it becomes legislation in order to ensure a long- term transportation network that serves all Alaskans.