SB 170 Summary

• Establishes the Alaska Marine Highway Corporation as an independent public corporation within the Department of Commerce, Community, and Economic Development to operate the Alaska marine highway system effective July 1, 2023.

• Creates a board of directors consisting of the commerce commissioner, transportation commissioner (or deputy), and five gubernatorial appointees with specific regional and expertise requirements to manage the corporation.

• Transfers all Alaska marine highway system assets, vessels, property, and liabilities from the Department of Transportation and Public Facilities to the corporation, allowing it to account for and spend generated revenue.

• Grants the corporation broad operational powers including setting rates, establishing routes and schedules, issuing bonds, hiring employees, and negotiating collective bargaining agreements with maritime unions.

• Requires the state to enter into a minimum service assurance agreement guaranteeing funding for specified sailings between Southeast, Southcentral, and Aleutian communities, with costs reimbursed if ticket sales are insufficient.