Legislature(2017 - 2018)BUTROVICH 205

02/14/2018 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SB 158 Out of Committee
-- Testimony <Invitation Only> --
Heard & Held
-- Testimony <Invitation Only> --
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
         SB  92-VESSELS: REGISTRATION/TITLES; DERELICTS                                                                     
4:03:18 PM                                                                                                                    
CHAIR  GIESSEL announced  consideration  of SB  92.  This is  its                                                               
third hearing and the sponsor had done some work on the bill.                                                                   
4:03:54 PM                                                                                                                    
At ease                                                                                                                         
4:04:31 PM                                                                                                                    
CHAIR GIESSEL called the meeting back to order.                                                                                 
SENATOR COGHILL moved to adopt  work draft CSSB 92(), version 30-                                                               
LS0481\J, as the working document.                                                                                              
CHAIR GIESSEL  objected for discussion purposes.  She invited her                                                               
committee staff to explain the changes.                                                                                         
4:04:57 PM                                                                                                                    
AKIS GIALOPSOS explained the following changes in CSSB 92( ),                                                                   
from version D to version 30-LS0481\J:                                                                                          
     1.   Page   2,  Line   28:   Amends   Section.  3   (AS                                                                    
     05.25.055(i)) by removing the  words "The United States                                                                    
     or." [The  words "The United  States or"  are currently                                                                    
     in existing  law and appeared  in the  previous version                                                                    
     of the bill.]                                                                                                              
     2.   Page   5,  Line   10:   Amends   Section.  9   (AS                                                                    
     30.30.010(a)) by removing the  word "Docked." [The word                                                                    
     "Docked" is  currently in existing law  and appeared in                                                                    
     the previous version of the bill.]                                                                                         
     3.   Page  5,   Line   20:  Amends   Section.  11   (AS                                                                    
     30.30.010(e)) by  changing the proposed penalty  from a                                                                    
     "B"  misdemeanor to  an "A"  misdemeanor [The  previous                                                                    
     version of  the bill proposed  to make the  violation a                                                                    
     class  "B"  misdemeanor.   Existing  law  stipulated  a                                                                    
     violation  under  AS   30.30.010  was  an  unclassified                                                                    
     4. Page 5,  Line 27: Amends Section.  12 (AS 30.30.010)                                                                    
     by removing  the words "(a)  of" to the  proposed newly                                                                    
     created subsection  (f). [The newly  created subsection                                                                    
     (f) to  AS 30.30.010 permits the  Department of Natural                                                                    
     Resources and  municipalities to report a  violation to                                                                    
     the  Attorney  General.  Whereas the  previous  version                                                                    
     only  permitted   reporting  of   a  violation   to  AS                                                                    
     30.30.010  (a), the  proposed CS  permits reporting  of                                                                    
     any violation under AS 30.30.010.]                                                                                         
4:07:49 PM                                                                                                                    
     5. Page 6, Lines 4-6:  Amends Section. 13 (the proposed                                                                    
     newly created AS 30.30.015)  by rewriting the following                                                                    
     sentence to read "On  application for injunctive relief                                                                    
     and a finding that a  person has violated AS 30.30.010,                                                                    
     the  superior  court  may grant  the  injunction.  [The                                                                    
     sentence  in the  prior version  of the  bill read  "On                                                                    
     application for  injunctive relief  and a finding  of a                                                                    
     violation  or  a  threatened  violation,  the  superior                                                                    
     court shall grant the injunction.]                                                                                         
     6.  Page  6,  Lines  14, 17:  Amends  Section.  14  (AS                                                                    
     30.30.030) by changing  the days a vessel  owner has to                                                                    
     obtain  authorization to  be exempted  from a  derelict                                                                    
     classification from "30" to "14."                                                                                          
     7.  Page  7,  Lines  5,   8:  Amends  Section.  15  (AS                                                                    
     30.30.040) by  changing the wording to  read "the state                                                                    
     agency  or municipality."  [The  prior  version of  the                                                                    
     bill  proposed   using  the   wording  "the   state  or                                                                    
     municipal agency."]                                                                                                        
     8. Page  7, Line 7:  Amends Section. 15  (AS 30.30.040)                                                                    
     by adding  the words "if possible."  [The prior version                                                                    
     of the  bill required the state  agency or municipality                                                                    
     to physically  post a written notice  of impoundment on                                                                    
     the  vessel  30  days   prior  to  impoundment  without                                                                    
     9.  Page  7,  Line   27-28:  Amends  Section.  16  (the                                                                    
     proposed   newly  created   AS  30.30.040)   by  adding                                                                    
     language  that   reads  "with   the  state   agency  or                                                                    
     municipality that sent the  notice." [The prior version                                                                    
     of the bill afforded the  vessel owner to file a demand                                                                    
     for  a   pre-impoundment  hearing.  But   the  previous                                                                    
     version  did  not specify  to  what  entity the  vessel                                                                    
     owner could make such a demand.]                                                                                           
     10. Page  8, Lines  9, 16-17:  Amends Section.  16 (the                                                                    
     proposed newly  created AS  30.30.040) by  changing the                                                                    
     wording  to read  "the state  agency or  municipality."                                                                    
     [Please see Change 7.]                                                                                                     
     11.  Page  8,  Lines  21-22: Amends  Section.  17  (the                                                                    
     proposed newly  created AS  30.30.045) by  changing the                                                                    
     wording  to read  "the state  agency or  municipality."                                                                    
     [Please see Change 7.]                                                                                                     
     12. Page 9, Lines 9-10, 12,  16, 23, 25, 27, 29: Amends                                                                    
     Section. 18  (the proposed newly created  AS 30.30.055)                                                                    
     by changing  the wording to  read "the state  agency or                                                                    
     municipality." [Please see Change 7.]                                                                                      
     13. Page 9,  Line 26: Amends Section.  18 (the proposed                                                                    
     newly created  AS 30.30.055) by changing  the reference                                                                    
     from  AS 30.30.097  to AS  30.30.096. [This  is due  to                                                                    
     subsequent  proposed   newly  created   sections  being                                                                    
     removed and renumbered in the Committee Substitute.]                                                                       
     14. Page 10,  Lines 19-20, 23; Page 11, Line  1, 9, 12:                                                                    
     Amends  Section.  20  (the proposed  newly  created  AS                                                                    
     30.30.065) by  changing the wording to  read "the state                                                                    
     agency or municipality." [Please see Change 7.]                                                                            
     15.  Page  11, Lines  12-20:  Amends  Section. 20  (the                                                                    
     proposed newly  created AS 30.30.065)  by adding  a new                                                                    
     paragraph  (2)  to  subsection   (e)  that  reads  "the                                                                    
     hearing officer shall award to  the owner attorney fees                                                                    
     and costs incurred  in the hearing; the  award shall be                                                                    
     made as provided by Rules  69, 79, and 82, Alaska Rules                                                                    
     and Civil Procedures." [The  prior paragraphs (1), (2),                                                                    
     and (3) have been  consolidated under paragraph (1) and                                                                    
     organized with subparagraphs (A), (B), and (C).]                                                                           
4:12:38 PM                                                                                                                    
     16. Page 11, Line 24:  Amends Section. 21 (the proposed                                                                    
     newly created AS 30.30.075) by  changing the wording to                                                                    
     read "the  state agency  or municipality."  [Please see                                                                    
     Change 7.]                                                                                                                 
     17.  The  prior  version's   Section.  22,  related  to                                                                    
     insurance  requirements,  is  removed and  not  in  the                                                                    
     proposed Committee  Substitute. The  following sections                                                                    
     are renumbered accordingly.                                                                                                
     18. Page 12, Lines 2,  22: Amends AS 30.30.090 (Current                                                                    
     Section. 22,  Prior Version Section. 23)  by adding the                                                                    
     word   "abandoned"  to   the  list   of  actions   that                                                                    
     constitute the classification of derelict vessel.                                                                          
     19. Page  12, Lines 8-24: Amends  AS 30.30.090 (Current                                                                    
     Section.  22, Prior  Version Section.  23) by  removing                                                                    
     the words  "and if"  on line 8.  This removal  of words                                                                    
     requires    reformatting    the   subparagraphs    into                                                                    
     paragraphs.  [The  words  "and  if"  are  currently  in                                                                    
     existing  law and  were  in the  prior  version of  the                                                                    
     20. Page 12, Line 26:  Amends the title of the proposed                                                                    
     newly created AS 30.30.095  (Current Section. 23, Prior                                                                    
     Version Section. 24) by renaming  it "Duties and Powers                                                                    
     of  the Department"  from  "Derelict Vessel  Prevention                                                                    
     Program."  [Conforming to  this change,  the subsequent                                                                    
     new proposed section AS  30.30.096 entitled "Duties and                                                                    
     Powers  of   the  Department"  has  been   removed  and                                                                    
     absorbed  into  AS  30.30.095,  and  the  new  proposed                                                                    
     section   AS.30.30.097    entitled   "Derelict   Vessel                                                                    
     Prevention  Fund"  is  renumbered  is  now  section  AS                                                                    
     30.30.096 under the Committee Substitute.]                                                                                 
     21.  Page  12,  Line  27:  Amends  the  proposed  newly                                                                    
     created  AS  30.30.095   (Current  Section.  23,  Prior                                                                    
     Version  Section. 24)  to add  new language  that reads                                                                    
     "subject to appropriations."                                                                                               
     22.  Page  13,  Line  14:  Amends  the  proposed  newly                                                                    
     created  AS  30.30.096   (Current  Section.  23,  Prior                                                                    
     Version Section.  24) by changing  the wording  to read                                                                    
     "the state agency or  municipality." [Please see Change                                                                    
     23.  Page  13,  Line  25:  Amends  the  proposed  newly                                                                    
     created  AS  30.30.096   (Current  Section.  23,  Prior                                                                    
     Version Section.  24) by  changing paragraph  (b)(4) to                                                                    
     read  "money  collected  under AS  05.25.096(a)(5)  and                                                                    
     (6).  [The prior  version read  "money received  by the                                                                    
     Department  of   Administration  for   registering  and                                                                    
     titling vessels."]                                                                                                         
     24. Page 14, Lines  17-18: Amends AS 30.30.170 (Current                                                                    
     Section. 25,  Prior Version  Section. 26),  by defining                                                                    
     "state agency" rather than  "state or municipal agency"                                                                    
     in accordance with the changes  originating in Change 7                                                                    
     and conformed through the Committee Substitute.                                                                            
4:16:42 PM                                                                                                                    
CHAIR GIESSEL asked for a sectional analysis.                                                                                   
4:17:21 PM                                                                                                                    
RACHEL HANKE, staff to senator Micciche, Alaska State                                                                           
Legislature, presented the sectional analysis of CSSB 92 (RES),                                                                 
version 30-LS0481\J, as follows:                                                                                                
     Section 1:  Requires that a  boat placed on  the waters                                                                    
     of the state be titled, registered, or numbered.                                                                           
     Section  2: Requires  all boats  have a  certificate of                                                                    
     number if operated on the  waters of the state for more                                                                    
     than  90 consecutive  days or  60 consecutive  days for                                                                    
     barges unless otherwise provided in the chapter.                                                                           
     Section  3:  Provides  exceptions  from  numbering  and                                                                    
     registration for boats and barges.                                                                                         
     Section 4:  Adds new section for  establishing a system                                                                    
     for certification of titles.                                                                                               
     Section 5: Inserts a new cross-reference.                                                                                  
     Section 6:  Increases boat  registrations for  a three-                                                                    
     year period  from $24 to  $30, adds  barge registration                                                                    
     fee at  $75 for  a three-year  period, adds  boat title                                                                    
     and duplicate boat title fee of $20.                                                                                       
     Section 7: Adds definition of "barge".                                                                                     
     Section  8: Repeals  and reenacts  definitions from  AS                                                                    
     Sections 9 & 10: Clarifies existing language.                                                                              
     Section  11: Raises  the fine  for abandoning  a vessel                                                                    
     from  not less  than $500  to not  less than  $5,000 or                                                                    
     more  than  $10,000  and lowers  the  maximum  term  of                                                                    
     imprisonment from six months to 90 days.                                                                                   
     Section 12: Allows the department  or a municipality to                                                                    
     report violations  to the Attorney General  in order to                                                                    
     enforce criminal penalties.                                                                                                
     Section  13: Adds  new  section  allowing an  aggrieved                                                                    
     person to  file a  civil injunction  with a  penalty of                                                                    
     not more than $1,000 per violation.                                                                                        
     Section 14:  Allows the  department to  provide written                                                                    
     authorization for  a vessel to  be left within  14 days                                                                    
     and clarifies language.                                                                                                    
     Section 15:  Changes section to  pre-impoundment notice                                                                    
     and  hearing.   Requires  30  days'  notice   prior  to                                                                    
     impoundment, requires the  impounding authority to post                                                                    
     notice on vessel when possible and online.                                                                                 
     Section  16: Adds  new subsections  establishing notice                                                                    
     specification and defines the procedure for pre-                                                                           
     impoundment hearings.                                                                                                      
     Section 17: Adds  new section establishing requirements                                                                    
     for the notice of disposition.                                                                                             
     Section  18: New  section proving  clear guidelines  of                                                                    
     procedure for impoundment  of a vessel by  the state or                                                                    
     a municipality.                                                                                                            
     Section  19:  Removes  requirement that  an  interested                                                                    
     party  taking  possession  of a  derelict  vessel  post                                                                    
     Section  20: Establishes  procedure  for the  immediate                                                                    
     impoundment of  derelict vessels that pose  an imminent                                                                    
     threat to safety.                                                                                                          
     Section  21:   Adds  new   section  stating   that  the                                                                    
     individual  owning an  impounded vessel  is liable  for                                                                    
     all costs incurred in the process.                                                                                         
     Section  22:  Provides  situations that  would  make  a                                                                    
     vessel derelict.                                                                                                           
     Section  23:   Gives  the   department  the   power  to                                                                    
     establish   and   administer    the   derelict   vessel                                                                    
     prevention program which  includes education, outreach,                                                                    
     an advisory  council and creates  a program  fund which                                                                    
     consists of  money appropriated from  donations, vessel                                                                    
     sales   under  this   chapter,  federal   funds,  civil                                                                    
     penalties and  money collected from  barge registration                                                                    
     and titling of vessels.                                                                                                    
     Section 24: Adds "floating  facility" to the definition                                                                    
     of "vessel".                                                                                                               
     Section 25: Adds definitions.                                                                                              
     Section  26: Names  this chapter  the Derelict  Vessels                                                                    
     Section 27: Adds titling to Title 37.                                                                                      
     Section 28:  Allows civil penalties collected  under AS                                                                    
     30.30   to  be   deposited  to   the  derelict   vessel                                                                    
     prevention program fund.                                                                                                   
     Section  29:  Removes  repealed sections  allowing  the                                                                    
     fund to remain without federal funding.                                                                                    
     Section 30: Repealing sections of AS 30.30.                                                                                
      Section 31: Transition language allowing DNR and DOA                                                                      
     to adopt regulations.                                                                                                      
        Section 32: Reviser's instruction to change two                                                                         
     Sections 33-36: Effective date sections.                                                                                   
4:21:16 PM                                                                                                                    
CHAIR  GIESSEL  removed  her objection  and  finding  no  further                                                               
objections, announced that version  J was the committee's working                                                               
document. Public testimony was open.                                                                                            
4:21:51 PM                                                                                                                    
KATHIE  WASSERMAN, Executive  Director, Alaska  Municipal League,                                                               
Juneau,  Alaska, supported  SB 92.  This  issue has  been one  of                                                               
their  top  priorities  for  over  two and  a  half  years.  Most                                                               
municipalities have access  to water one way or  another, and the                                                               
heart of many  communities is the harbor. When  it gets cluttered                                                               
up  with boats  it is  very  difficult for  municipalities to  go                                                               
through all the  work to deal with those  vessels. Usually owners                                                               
of the vessels  have problems long before then:  they quit paying                                                               
moorage or haul their boat onto a beach.                                                                                        
4:23:38 PM                                                                                                                    
CARL  UCHYTIL, President,  Alaska Association  of Harbor  Masters                                                               
and Port  Authorities (AAHPA), Juneau,  Alaska, supported  SB 92.                                                               
AAHPA  has 43-member  harbors and  has  documentation from  other                                                               
communities outside their membership that also support it.                                                                      
SENATOR STEDMAN  asked what tool  this bill would give  to harbor                                                               
masters that they don't currently have.                                                                                         
MR. UCHYTIL  said the  strongest argument he  could make  is when                                                               
the  M/V Challenger  went  down.  She [the  boat]  was no  longer                                                               
welcome  in the  harbor  and  as a  result  was  anchored on  DNR                                                               
tidelands. When  she sank,  the Coast Guard  came out  and opened                                                               
the  Oil Spill  Trust  Fund to  raise and  demolish  her (for  $2                                                               
million).  To this  day, the  Coast  Guard doesn't  know who  the                                                               
responsible owner is.                                                                                                           
SENATOR STEDMAN said that ship should  have had a marine title at                                                               
some  point, and  the question  is who  owned it  at the  end. He                                                               
wanted to  know what  useful tools  SB 92  would provide  in this                                                               
MR. UCHYTIL said  he couldn't speak with great  authority on what                                                               
enforcement activity the Coast Guard  is taking on the Challenger                                                               
now,  but  the  Juneau  Harbor  system  has  other  instances  of                                                               
irresponsible  boat  owners  that   will  transfer  ownership  of                                                               
vessels on a bar napkin or  flip ownership with a handshake. Just                                                               
having a clear title would allow  the harbor master to pursue the                                                               
actual owner of  several derelict vessels in  their harbor system                                                               
SENATOR STEDMAN  said he has  concept issues with this  bill, not                                                               
that derelict  vessels aren't  a problem.  He said  marine titled                                                               
vessels are  usually small, in  the neighborhood of 27  feet, and                                                               
are required  to have "AK" numbers  and to get a  sticker. If you                                                               
don't, you  get a ticket.  So, the  owner pays the  harbor master                                                               
once a month as a tenant, and  all of a sudden someone else shows                                                               
up to  pay the  monthly fee. He  asked what tools  he needs  as a                                                               
harbor master  here in Juneau  to ensure  that a person  who pays                                                               
the rent owns the boat.                                                                                                         
SENATOR STEDMAN said  his boat is a "documented  vessel" and that                                                               
it is in the Juneau harbor now  where he is also required to have                                                               
an insurance document  to show that it is not  only insurable but                                                               
that  it  is insured.  So,  he  was  really struggling  with  why                                                               
organized  harbors  around  Alaska  can't  keep  track  of  their                                                               
tenants  -  like he  used  to  keep track  of  renters  he was  a                                                               
MR. UCHYTIL  answered that "registered" doesn't  necessarily mean                                                               
owner, and he does have  difficulty with some harbor clientele in                                                               
establishing  clear ownership.  For  instance,  someone could  be                                                               
behind in  their rent and  when they  get kicked out,  the client                                                               
can  say he  sold the  boat to  someone at  the Pioneer  Bar last                                                               
night.  Lawyers  have  told  him   that  title  is  important  in                                                               
establishing ownership.                                                                                                         
4:31:12 PM                                                                                                                    
SENATOR STEDMAN said  the situation is similar to  used cars that                                                               
eventually  get "ditched  out the  road" and  the owner  can't be                                                               
found.  It is  an  enforcement  issue, and  he  wasn't sure  this                                                               
wouldn't set boats up with the  same solution. And at some point,                                                               
the unorganized municipalities need to be addressed.                                                                            
SENATOR VON  IMHOF said this bill  has a fiscal note  of $589,000                                                               
(which  she assumed  was collected  by titling  registrations and                                                               
abandoned  vessel fees)  and asked  if  the duties  of this  fund                                                               
cease to  exist if the  fees are not  raised. Maybe they  have to                                                               
wait a  few years for  money to be  raised and then  this program                                                               
can get off the ground.                                                                                                         
MARLA  THOMPSON,  Director,  Division of  Motor  Vehicles  (DMV),                                                               
Department of  Administration (DOA), Anchorage, Alaska,  said the                                                               
fiscal note for SB 92 is  based off the registration numbers they                                                               
currently have at  $20 per boat and 68,000  boats are registered.                                                               
That   would   generate    approximately   $1.36   million.   The                                                               
registration  period is  for three  years, so  they divided  that                                                               
number by  three and expected  to collect about one-third  of the                                                               
revenues for that the customer in the first year.                                                                               
BRYAN  HAWKINS,  Vice  President, Alaska  Association  of  Harbor                                                               
Masters and Port Authorities (AAHPA),  and Harbor Master, City of                                                               
Homer, Alaska, supported  SB 92. He noted the  Homer City Council                                                               
passed resolutions  in support of  this bill, as well.  Homer has                                                               
over the  years had to deal  with quite a few  abandoned derelict                                                               
vessels  in the  range  of 80-450  feet long.  A  local code  was                                                               
passed that helped with that.                                                                                                   
He explained  that cities have  clearly defined  boundaries. They                                                               
can write local  laws that can help people  make better decisions                                                               
to "move along" and can  legally impound and dispose, which Homer                                                               
has done many times.                                                                                                            
MR.  HAWKINS  said currently  Alaska  doesn't  require titling  a                                                               
vessel, but  it does  require a  registration. Boat  builders say                                                               
people  who buy  vessels  from them  are  concerned because  they                                                               
don't actually get a title. This would fix that.                                                                                
SENATOR STEDMAN said he has a 52  ft. boat and has a marine title                                                               
with the Coast Guard.                                                                                                           
MR. HAWKINS replied that he  has Coast Guard documentation, which                                                               
is not a title.                                                                                                                 
4:38:11 PM                                                                                                                    
RACHEL LORD,  Executive Secretary,  Alaska Association  of Harbor                                                               
Masters and Port  Authorities (AAHPA), supported SB  92. She said                                                               
state statutes  are outdated  and were written  in 1976  by DOTPF                                                               
and briefly  updated in 2013 to  open up authority that  had only                                                               
rested  with   the  Department   of  Transportation   and  Public                                                               
Facilities (DOTPF) because  of their historical role  as owner of                                                               
all Alaska harbors.                                                                                                             
Through a  situation in Kachemak  Bay where two vessels  sank, it                                                               
became clear  that a  problem existed with  DOTPF being  the only                                                               
one with  authority to exercise  the chapter because  they didn't                                                               
have any mandate  to do so. So,  HB 131 opened up the  use of the                                                               
chapter to all  state agencies and municipalities.  That was just                                                               
a starting point.                                                                                                               
She explained that the AAHMPA  and others supported the formation                                                               
of an ad  hoc derelict vessel task force,  which she facilitated.                                                               
It met for  nine full days over  a year and a half.  They had the                                                               
entire "alphabet  soup" of  every state  and federal  agency, the                                                               
municipalities,  Senator  Murkowski's  office,  a  Bethel  Native                                                               
Council, and  some private  salvage companies  participating. The                                                               
group discussed  case studies in  Alaska, what is going  on, what                                                               
people are dealing with, what  the problems are in preventing and                                                               
managing  them,  what   people's  jurisdictional  boundaries  and                                                               
authorities  are, and  what  other states  are  doing around  the                                                               
country.  It became  very clear  that  a full  rewrite of  Alaska                                                               
statutes was a very necessary first step.                                                                                       
MS. LORD  said the group had  pro bono legal assistance  from the                                                               
municipal  law firm  of Birch  Horton Bittner  & and  Cherot that                                                               
worked  through the  problems everyone  agreed  upon and  crafted                                                               
solutions and a suite of tools to make some forward progress.                                                                   
In the case  of the M/V Akutan, before taking  legal action you a                                                               
vessel  has to  be  determined as  derelict  or abandoned.  Under                                                               
state  law now,  if  it's  derelict or  abandoned  there are  two                                                               
different courses  of action for  due process, hearings,  and for                                                               
noticing, and two  different paths of options  for disposition of                                                               
that vessel.  So, one  has to  choose carefully,  because current                                                               
statutes are layered with confusion and lack of clarity.                                                                        
MS.  LORD  said   SB  92  clarifies  not  only   the  notice  and                                                               
impoundment process for agencies  and municipalities, but it also                                                               
improves due process  for vessel owners. Some  would contend that                                                               
perhaps current  statutes are not federally  constitutional under                                                               
federal Admiralty law and do  not afford vessel owners the proper                                                               
amount of due  process that should be afforded  to somebody under                                                               
it, and SB 92 clarifies that.                                                                                                   
4:42:33 PM                                                                                                                    
To  answer  some  of  the  concerns  regarding  registration  and                                                               
titling issues, there  is no silver bullet. However,  under SB 92                                                               
federally  documented vessels  are not  required to  get a  state                                                               
title, but  they would be  asked to  register with the  state for                                                               
the increased  fee of $30  (from $24) if SB  92 passes.   That is                                                               
true in at least 26 other states, including Washington.                                                                         
One  of  the  problems  with  relying  on  federal  documentation                                                               
exclusively for tracking  of ownership is the point  at which the                                                               
owner  stops paying  for  documentation. And  at  that point  the                                                               
State of Alaska  doesn't have any document of any  of these boats                                                               
MS. LORD said if you have ever  owned a boat trailer and tried to                                                               
get  it titled  or registered,  you know  that it  can be  really                                                               
challenging. It is way easier to own  a boat in Alaska now than a                                                               
boat trailer,  because a boat  trailer is regulated as  a highway                                                               
vehicle.  Many contend,  including her,  that a  boat has  a much                                                               
greater potential public liability than a boat trailer.                                                                         
While  she appreciated  not wanting  to expand  that universe  of                                                               
registration with  added paperwork, Ms. Lord  said, however, this                                                               
is borne out  of very real problems being found  daily in Alaska.                                                               
The language  in SB 92 was  crafted in a  way to try to  help the                                                               
state  have some  more recourse  when it  comes to  determining a                                                               
vessel owner.  The fact remains  that with nearly  every derelict                                                               
vessel  has contention  over  who  owns it  because  of the  huge                                                               
amount of liability that is on the hook.                                                                                        
She  said  SB  92  clarifies   liability  for  owners,  which  is                                                               
important. The  state wants  to hold  people accountable  that if                                                               
you buy a boat the easiest  dumping ground should not be state or                                                               
municipal waters,  and right now  it is. Neighboring  states have                                                               
dramatically cracked down  on their laws, which  leaves Alaska as                                                               
an easy target for dumping of boats.                                                                                            
MS. LORD  noted the  DNR's zero  fiscal note  saying the  hope is                                                               
that some funds are raised  to help address this situation. Other                                                               
states  have found  that  a little  money goes  a  long way  with                                                               
consolidating efforts.  Right now, DNR,  as the land  manager, is                                                               
dealing  with  these  problems, spending  staff  time  and  state                                                               
resources on dealing with derelict  vessels throughout the state,                                                               
across the  coast, and across  the river systems. They  are doing                                                               
it in  a way that is  not consolidated or streamlined,  and there                                                               
is no  one to call if  a derelict vessel is  in an unincorporated                                                               
area or in state waters.                                                                                                        
She said  the language in  SB 92 is  permissive to allow  for the                                                               
department  to create  that program,  to allow  for them  to look                                                               
proactively at  this issue.  It does  not require  them to  do it                                                               
immediately. It would take time and resources.                                                                                  
MS. LORD summarized that this is  a national problem, and this is                                                               
the  direction  in which  other  states  are going.  The  federal                                                               
delegation is  aware of that, but  in the meantime, the  State of                                                               
Alaska is still back in 1976.                                                                                                   
SENATOR  STEDMAN said  derelict boat  inhabitants live  basically                                                               
week to week  and if their boat sinks, they  "play the hot potato                                                               
game." Some are drug addicts  and unemployed, but he could assure                                                               
people that  crime issues in the  harbors don't come from  the $2                                                               
and $3 million  boats. But he wanted to know  how identifying the                                                               
derelicts would help extract money from them.                                                                                   
MS. LORD  answered there is  no silver  bullet, but a  law deters                                                               
more  people  than  otherwise.  One   of  the  big  problems  not                                                               
explicitly addressed  in SB  92 is the  cradle to  grave problem.                                                               
She explained that  everything that is created has  a shelf life.                                                               
A  well-maintained boat  will operate  for decades  or more,  but                                                               
that  takes  money  and  resources  neither  of  which  are  ever                                                               
guaranteed. And they have not come up  with a plan for what to do                                                               
with  a boat  at  the end  of  its useful  life.  Right now,  the                                                               
default plan  is to  keep passing  it down the  line until  it is                                                               
with a person  who has the least resources to  deal with it. That                                                               
is a  problem. But raising  the awareness and clarifying  the law                                                               
and  liability of  an  owner  is a  big  step  forward and  helps                                                               
agencies and  municipalities legally  deal with  these situations                                                               
when they invariably arise.                                                                                                     
She  said  that  SB  92  under the  permissive  language  in  the                                                               
Derelict  Vessel Prevention  Program allows  for the  department,                                                               
with resources permitting,  to explore options for  the cradle to                                                               
grave  question  including  voluntary  vessel  turn-in  programs,                                                               
which have been  "hugely beneficial" and saved  states around the                                                               
country a  lot of money.  California is  one state that  has been                                                               
very successful. Alaska is different:  our harbors can't pull out                                                               
all  the boats.  We don't  have the  infrastructure, the  salvage                                                               
companies or  the ship breakers  to do  it. The people  in Alaska                                                               
have to look collectively at how to deal with it.                                                                               
SENATOR  STEDMAN  remarked that  the  organized  harbors are  all                                                               
managed differently. A useful thing  that Juneau does that others                                                               
don't do is  require insurance certificates, and in  order to get                                                               
an insurance  certificate, an owner has  to get a survey  and the                                                               
boat will  have to be fairly  sound to get it.  An uninsured boat                                                               
helps  tip off  a  harbor master.  It comes  back  to his  point:                                                               
knowing your tenant  and being responsive to who  you are renting                                                               
to. And knowing you don't have to rent to anybody that shows up.                                                                
4:52:55 PM                                                                                                                    
MS. LORD said  people have dreams and those  should be protected,                                                               
but huge liabilities  are being created as those  dreams go awry.                                                               
Her wish is  that the state takes the  situation seriously enough                                                               
to provide  enough resources to  be able to enforce  mooring laws                                                               
around the state  where the liability is big  enough that someone                                                               
will think  three times before signing  a bill of sale,  and that                                                               
people  are more  circumspect about  buying a  boat because  more                                                               
liability  is associated  with it  than there  currently is.  She                                                               
also  pointed   out  that  some  municipal   harbors  have  great                                                               
ordinances and have  spent a lot of money  to protect themselves,                                                               
but that  means that  those boats  leave the  harbor and  moor on                                                               
state waters or they moor  in smaller communities that don't have                                                               
the legal  or financial resources  to deal with them.  The larger                                                               
communities will  continue to protect  themselves, but  the state                                                               
loses, and  the smaller  communities and  unorganized communities                                                               
are the losers  in that and the  protected one at the  end of the                                                               
day  is  the  person  who  made a  really  poor  choice  with  no                                                               
resources to buy a crappy old boat. They get to walk away free.                                                                 
CHAIR GIESSEL asked the Department  of Natural Resources (DNR) to                                                               
comment on the fiscal note.                                                                                                     
4:55:13 PM                                                                                                                    
ED  KING, Special  Assistant it  the Commissioner,  Department of                                                               
Natural Resources  (DNR), Juneau, Alaska, said  the department is                                                               
working  on  a  fiscal  note, but  had  some  issues  surrounding                                                               
Senator Von Imhof's  question about the intent  of the department                                                               
and what  the costs  might be.  They interpret  the bill  to mean                                                               
that  to the  extent that  there are  funds available  within the                                                               
fund that  is being  created by  the bill,  and only  then, would                                                               
action  be required.  The fiscal  note is  being finalized  under                                                               
that interpretation.                                                                                                            
CHAIR  GIESSEL  asked  if  the   department  is  spending  a  lot                                                               
resources on this subject currently.                                                                                            
4:56:32 PM                                                                                                                    
KRIS  HESS,  Operations Manager,  Division  of  Mining, Land  and                                                               
Water,  Department  of   Natural  Resources,  Anchorage,  Alaska,                                                               
answered that they spent considerable  time and resources between                                                               
herself,  Director  Brent   Goodrum,  Deputy  Commissioner  Heidi                                                               
Hansen, and others in terms  of coordinating with federal, state,                                                               
and local agencies to deal  with this situation. From August 2017                                                               
when the Akutan  suffered problems with its engines  and the time                                                               
of actual disposal,  which was in January 2018,  a rough estimate                                                               
is at least 250 hours of staff time was spent.                                                                                  
SENATOR  STEDMAN asked,  when  a derelict  vessel  is sitting  on                                                               
their tidelands, if  it isn't it a matter of  an appropriation of                                                               
funds to  the Department of Law.  And if this bill  is only going                                                               
to produce $100,000-200,000/year, it would  take 10 years to just                                                               
pay for  the tug boat  that sank in  Juneau last year.  He didn't                                                               
think  the  ends  were  lining  up very  well  outside  of  large                                                               
appropriations from the legislature, with or without this bill.                                                                 
MR.  KING agreed  that a  lot of  money would  be needed  to take                                                               
immediate action, and those funds are not available.                                                                            
MS. HESS also agreed that was probably an accurate assessment.                                                                  
SENATOR BISHOP  suggested that the federal  Resource Conservation                                                               
and Recovery  Act (RCRA) addressed midnight  dumping of hazardous                                                               
materials, and  he was thinking  if a 400-foot barge  grounded on                                                               
state tidelands if  the state could access some  of those federal                                                               
funds to help with clean-up.                                                                                                    
MR. KING replied yes; the Coast  Guard does assist in the removal                                                               
of contaminants  or environmentally  dangerous materials  and did                                                               
that in  the Akutan  case. But once  the hazardous  materials are                                                               
removed, that is where it stops: at the boat.                                                                                   
SENATOR BISHOP  suggested stretching it  a little to take  in the                                                               
whole boat removal.  He said they are trying  to eliminate future                                                               
liabilities and that would be going in the right direction.                                                                     
5:03:37 PM                                                                                                                    
CHAIR  GIESSEL,  finding  no   further  comments,  closed  public                                                               
testimony. She held SB 92 in committee.                                                                                         

Document Name Date/Time Subjects
Senate Resources - Updated Agenda - 2 - 14 - 18.pdf SRES 2/14/2018 3:30:00 PM
CSSB92- Version J - 2 - 7 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Explanation of Changes - Version D to Version J - 2 - 12 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Sectional Analysis Ver. J - 2 - 9 - 2018.PDF SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Fiscal Note - Dept Administration - 2 - 11 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Fiscal Note - Dept Env Conservation - 2 - 9 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CCSB92 - Various Support - 2 - 9 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Supporting Document - Additional Various Support - 2 - 10 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92 - Supporting Document - Letter Juneau Port Director - 2 - 11 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB92- Supporting Document - Updated Letter AK Muni League - 2 - 12 - 2018.PDF SRES 2/14/2018 3:30:00 PM
SB 92
SB92 - Supporting Document - Letter Jakolof Bay Oyster Co - 2 - 13 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
CSSB173 - Version D.pdf SRES 2/14/2018 3:30:00 PM
SB 173
CSSB173 - Legislative Legal Memorandum.pdf SRES 2/14/2018 3:30:00 PM
SB 173
SB173 - Testimony - Phil Steyer - Chugach Electric Assoc .pdf SRES 2/14/2018 3:30:00 PM
SB 173
CSSB173 - CORRECTED Explanation of Changes From Version A to Version D - 2 - 14 - 2018 .pdf SRES 2/14/2018 3:30:00 PM
SB 173
SB173 - Comments - Cook Inlet Keeper - 2 - 14 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 173
CSSB92 - Fiscal Note - Dept Natural Resources - 2 - 13 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 92
SB173 - Document - Penta Overview - EPA - 2 - 15 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 173
SB173 - Document - Penta Mat Safety Data Sheet - Cumberland Electric Membership Corp - 2 - 15 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 173
SB173 - Document - Penta Contam Drink Water from Utility Poles - Amer Journal Public Health - 2 - 15 - 2018.pdf SRES 2/14/2018 3:30:00 PM
SB 173