Legislature(2017 - 2018)GRUENBERG 120

02/27/2018 10:00 AM FISHERIES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 231 CFEC: BD. SALARY;STAFF CLASSIFIED SERVICE TELECONFERENCED
Heard & Held
-- Public Testimony --
<Bill Hearing Rescheduled from 2/22/18>
+= HB 272 TANGLE LAKES STATE GAME REFUGE TELECONFERENCED
Moved HB 272 Out of Committee
-- Public Testimony --
+= HB 260 FISH & GAME LICENSES;ELECTRONIC FORM TELECONFERENCED
Moved HB 260 Out of Committee
-- Public Testimony --
*+ HB 386 VESSELS: REGISTRATION/TITLES; DERELICTS TELECONFERENCED
Heard & Held
+= HB 188 COMM. FISH. ENTRY PERMITS; LOANS; TRUSTS TELECONFERENCED
Moved CSHB 188(FSH) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
         HB 386-VESSELS: REGISTRATION/TITLES; DERELICTS                                                                     
                                                                                                                                
10:04:40 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the  first order of business would be                                                               
HOUSE BILL  NO. 386, "An  Act relating to abandoned  and derelict                                                               
vessels;  relating to  the registration  of vessels;  relating to                                                               
certificates of title for vessels;  relating to the duties of the                                                               
Department  of  Administration; relating  to  the  duties of  the                                                               
Department  of  Natural   Resources;  establishing  the  derelict                                                               
vessel  prevention  program;  establishing  the  derelict  vessel                                                               
prevention program fund; and providing for an effective date."                                                                  
                                                                                                                                
10:05:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, Alaska State Legislature,  said that                                                               
derelict vessels  have long been  a problem that costs  the state                                                               
and  municipalities   significant  money   and  heartache.     He                                                               
previously introduced a derelict vessel  bill in 2013, House Bill                                                               
131, to try to make a  better system.  Previously, the Department                                                               
of  Natural  Resources  (DNR) had  the  sole  responsibility  for                                                               
cleaning  up,  yet  the Department  of  Transportation  &  Public                                                               
Facilities   had   responsibility   for   some   communities   so                                                               
interagency  problems occurred.   He  referred to  the PowerPoint                                                               
presentation and  to slide  3 titled  "A Guy  Walks into  a Bar,"                                                               
which depicts a photo of two  vessels that tried to come into the                                                               
Homer harbor but were turned away.   Once the vessels were turned                                                               
away, they were  anchored up across the bay from  the Homer Spit.                                                               
During the winter, the bilge  pumps failed, the vessels sank, and                                                               
an oil  spill leaked into the  cove.  The previous  bill required                                                               
that  operators turned  away  from harbors  could  not store  the                                                               
vessels  for over  14  days without  removing  all the  hazardous                                                               
materials.  He recalled the  derelict vessels just mentioned cost                                                               
the state $360,000 to remedy, including haul out and storage.                                                                   
                                                                                                                                
10:08:18 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE SEATON  said that the harbormasters  and statewide                                                               
task force  meetings hashed out  the derelict vessel  issue; that                                                               
HB 386  requires accountability such as  title information, which                                                               
would  be like  the  title registration  for  vehicles under  the                                                               
Division of Motor Vehicles (DMV).   The purpose would be to deter                                                               
derelict vessels from coming to Alaska.                                                                                         
                                                                                                                                
10:10:15 AM                                                                                                                   
                                                                                                                                
PATRICIA  NICKELL-ZIMMERMAN, Staff,  Representative Paul  Seaton,                                                               
Alaska  State  Legislature,  explained  that  Rachel  Lord  would                                                               
present a PowerPoint.                                                                                                           
                                                                                                                                
10:11:13 AM                                                                                                                   
                                                                                                                                
MS. NICKELL-ZIMMERMAN said  that the State of Alaska  was home to                                                               
aging vessels  that are  moored or  deposited in  Alaska harbors,                                                               
shorelines and  in State tidelands.   Many of these  vessels have                                                               
fallen  into ill  repair,  leading to  their  abandonment in  the                                                               
waters of  Alaska.  The  State of Alaska, its  municipalities and                                                               
ultimately  Alaska   citizens  will  be  accountable   for  these                                                               
derelict  and  abandoned   vessels  without  legislative  action.                                                               
Alaska  waters are  home to  over 9,400  vessels.   By 2025,  the                                                               
Alaska  fleet will  include roughly  3,100 vessels  more than  45                                                               
years old.   In  addition, there  are approximately  68,000 boats                                                               
registered in the state.                                                                                                        
                                                                                                                                
MS. NICKELL-ZIMMERMAN  stated that current state  regulations for                                                               
disposal and cleanup  of these aging vessels  contain "no teeth".                                                               
The state  does not  have a change  of ownership  tracking system                                                               
for   vessels.     Derelict   vessels   present  navigation   and                                                               
environmental hazards  and disposal of derelict  vessels falls to                                                               
the state or local municipalities  without the financial means to                                                               
recover costs.                                                                                                                  
                                                                                                                                
MS. NICKELL-ZIMMERMAN stated that HB  386 would provide a process                                                               
through   the  Department   of  Administration   (DOA)  and   the                                                               
Department of Natural Resources  (DNR) to stanch the accumulation                                                               
of derelict and  abandoned vessels in Alaska.   It would initiate                                                               
ownership tracking  of a  vessel that was  like the  process used                                                               
for motor  vehicles through the  DOA.   It would require  a title                                                               
for nondocumented  vessels and  expand the  registration process.                                                               
It would  update and increase  fines upon conviction  of unlawful                                                               
abandonment of a vessel.  It  would provide a nominal increase in                                                               
state registration  fees and would  create a requirement  and fee                                                               
for state vessel titles.                                                                                                        
                                                                                                                                
MS. NICKELL-ZIMMERMAN  related that  the DNR would  establish and                                                               
administer  a  derelict  vessel prevention  program.    It  would                                                               
outline  a  process for  abatement  of  a derelict  vessel  while                                                               
balancing the public's  rights with those of a vessel  owner.  It                                                               
would  update  and increase  fines  upon  conviction of  unlawful                                                               
abandonment  of a  vessel and  provide  due process  to a  vessel                                                               
owner  with   notices  and  hearings  prior   to  impoundment  or                                                               
disposal.   She  closed  by stating  that HB  386  would take  an                                                               
important  step toward  responsible vessel  ownership to  address                                                               
the current and future derelict vessel issues in Alaska.                                                                        
                                                                                                                                
10:14:17 AM                                                                                                                   
                                                                                                                                
RACHEL   LORD,  Executive   Secretary,   Alaska  Association   of                                                               
Harbormasters  & Port  Administrators  (AAHPA),  stated that  the                                                               
AAHPA consisted  of 250 members  who represent most of  the ports                                                               
and  harbors   throughout  Alaska.     She  began   a  PowerPoint                                                               
presentation on derelict vessels.                                                                                               
                                                                                                                                
10:15:15 AM                                                                                                                   
                                                                                                                                
MS.  LORD directed  attention to  the  quote on  slide 2,  titled                                                               
"What's   the  Problem?"   which   read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     "By 2025,  the Alaska fleet will  include roughly 3,100                                                                    
     vessels  between 28'  and  59' that  are  more than  45                                                                    
     years   old...the  Alaska   fleet   also  includes   75                                                                    
     passenger  vessels,  tugs,  and barges  over  50  years                                                                    
     old..."                                                                                                                    
                                                                                                                                
MS. LORD  stated that the quote  was taken from a  McDowell Group                                                               
report that was  done for the Alaska  maritime industrial support                                                               
sector.  This  statement was considered a positive  goal for ship                                                               
building; however,  this highlighted a problem,  that Alaska does                                                               
not  have a  "cradle-to-grave" plan  for vessels.   She  directed                                                               
attention  to a  link to  a YouTube  https://youtu.be/S-SFGTzlA1g                                                               
that a private citizen created  which illustrated the problems of                                                               
derelict vessels in Steamboat Slough in Bethel.                                                                                 
                                                                                                                                
10:16:04 AM                                                                                                                   
                                                                                                                                
MS. LORD  turned to  slide 3,  titled "A Guy  Walks into  a Bar,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     We  love our  boats, and  we depend  on our  coasts and                                                                    
     rivers  for transportation,  commerce,  and quality  of                                                                    
     life.   But  there is  no denying  the immense  cost of                                                                    
     owning  and  maintaining  a boat.    Those  costs  only                                                                    
     increase over time.                                                                                                        
                                                                                                                                
MS.  LORD explained  that boats  can last  for decades;  however,                                                               
what happens  is a vessel gets  passed on to the  next person and                                                               
as a  boat ages  it often has  been passed on  to a  person least                                                               
able  to   maintain  the   vessel  to  keep   it  afloat.     She                                                               
characterized this as a national problem.                                                                                       
                                                                                                                                
10:17:25 AM                                                                                                                   
                                                                                                                                
MS. LORD turned to the  next slice, titled "Jakolof Bay 2012-13,"                                                               
which  consisted of  a photograph  of  a boat  that sank.     She                                                               
stated that the photograph depicts one  of two boats that sank on                                                               
Christmas Eve  in 2012 in  Jakolof Bay.   She explained  that the                                                               
person who purchased the boats  in Sand Point traveled to Kodiak,                                                               
then on  to Seldovia and  Homer, but  was not allowed  into those                                                               
harbors.                                                                                                                        
                                                                                                                                
MS. LORD explained currently the  statutes to address the problem                                                               
have minimally  addressed derelict vessels.   These statutes were                                                               
enacted in  1976 and minimally  updated in 2013 under  House Bill                                                               
131.  Municipalities  who have the authority  to address derelict                                                               
vessels have been  doing so; for example,  Homer Kodiak, Cordova,                                                               
and CBJ [Juneau] all have  strong ordinances to protect customers                                                               
and  the [harbors],  the working  infrastructure, against  vessel                                                               
owners who  cannot pay moorages  and endanger other vessels.   At                                                               
the end of the day, the  state and the smaller communities who do                                                               
not have the funding to  afford them legal protections become the                                                               
[financial] losers.                                                                                                             
                                                                                                                                
10:19:11 AM                                                                                                                   
                                                                                                                                
MS.  LORD  turned  to  slide   5,  titled  "A  growing  Problem,"                                                               
depicting a  map, and which  read, in part, as  follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     ADNR  has  begun  a  database,   but  it  is  far  from                                                                    
     complete.   There are  nearly 200  documented derelicts                                                                    
     across  Alaska.   we  know  many  more exist,  and  the                                                                    
     number will continue to increase.                                                                                          
                                                                                                                                
MS. LORD turned  to slide 6, titled "The Public  Pays The Price,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     With  outdated statutes,  our municipalities  and state                                                                    
     agencies are  unable to effectively prevent  and manage                                                                    
     derelict  vessels.    Alaskan   waters  are  a  default                                                                    
     dumping ground.                                                                                                            
                                                                                                                                
MS.  LORD stated  that Washington  has improved  and strengthened                                                               
its derelict vessel  laws in the past five years,  which tends to                                                               
encourage  dumping  vessels in  Alaska  since  Alaska really  has                                                               
become a very soft target.                                                                                                      
                                                                                                                                
10:20:11 AM                                                                                                                   
                                                                                                                                
MS. LORD directed  attention to slide 7, titled  "Solutions in HB                                                               
386," which read as follows [original punctuation provided]:                                                                    
                                                                                                                                
     Over a two-year period,  the Derelict Vessel Task Force                                                                    
     identified  major  barriers  and solutions  to  improve                                                                    
     derelict vessel prevention and management in Alaska.                                                                       
                                                                                                                                
MS. LORD added  that the AAHPA, the Alaska  Clean Harbors Program                                                               
created a voluntary ad hoc  Derelict Vessel Task Force, with open                                                               
participation.                                                                                                                  
                                                                                                                                
10:21:07 AM                                                                                                                   
                                                                                                                                
MS.   LORD   continued  with   slide   8,   titled  "Task   Force                                                               
Participants,"  which  read   as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     ADNR, Mining Land & Water                                                                                                  
     ADEC, Spill Prevention & Response                                                                                          
     ADOT, Ports & Harbors                                                                                                      
     ADF&G, Habitat                                                                                                             
     USCG, Sectors Anchorage & Juneau/Div. of Waterways                                                                         
     Management                                                                                                                 
     NOAA, Marine Debris Program/Restoration                                                                                    
     EPA, Response Region 10                                                                                                    
     AAHPA (Bethel, Homer)                                                                                                      
     Orutsararmiut Native Councils                                                                                              
     Sen. Lisa Murkowski's office                                                                                               
     Alaska Marine Response                                                                                                     
                                                                                                                                
MS.  LORD stated  that the  task force,  consisting of  state and                                                               
federal agencies,  [and participants  listed on this  slide], met                                                               
for nine full  days over a two-year period.   The Derelict Vessel                                                               
Task Force  (DVTF) had pro bono  legal support from the  law firm                                                               
Birch Horton Bittner  & Cherot, a firm  with extensive experience                                                               
in issues related to derelict vessels and admiralty law.                                                                        
                                                                                                                                
10:22:03 AM                                                                                                                   
                                                                                                                                
MS. LORD stated that the genesis of  HB 386 came from the work of                                                               
the  DVTF,  whose  participants reviewed  case  studies,  current                                                               
methods  used for  disposing of  derelict vessels  and how  those                                                               
methods  could  be  improved,  and  other  states'  remedies  for                                                               
derelict vessels.   She  characterized HB 386  as a  strong bill,                                                               
one that  was vetted by  stakeholders, who assessed  and reviewed                                                               
the current derelict vessel situation in Alaska.                                                                                
                                                                                                                                
MS. LORD provided a brief  section-by-section analysis of HB 386,                                                               
noting  that  Sections   1-8  were  changes  to   AS  05.25,  the                                                               
watercraft chapter.   The  goal of  the DVTF was  to make  as few                                                               
changes as  possible, noting the  state's boating  safety program                                                               
was established in AS 05.                                                                                                       
                                                                                                                                
10:23:03 AM                                                                                                                   
                                                                                                                                
MS. LORD  turned to slide  9, titled "Registration  and Titling,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Agencies  and  municipalities have  found  establishing                                                                    
     ownership is  one of the  major hurdles to  hold owners                                                                    
     responsible  for  derelict   vessels.    Requiring  all                                                                    
     vessels operating in Alaska to  be registered with DMV,                                                                    
     and beginning  a titling system for  vessels similar to                                                                    
     that  in  place  for motor  vehicles,  are  commonsense                                                                    
     solutions to improve accountability.                                                                                       
                                                                                                                                
MS. LORD  stated the DVTF  determined that the only  changes that                                                               
were  necessary   to  AS  05.25  related   to  vessel  ownership.                                                               
Currently 68,000  vessels are registered in  Alaska; however, the                                                               
state does not  know how many documented vessels  are in Alaska's                                                               
waters.   The provisions in HB  386 would expand the  universe of                                                               
registration to  include documented vessels, which  has been done                                                               
in at least  26 other states, including Washington.   She related                                                               
that  currently  vessel registration  fees  are  $24 every  three                                                               
years.   The bill would increase  this to $30 every  three years.                                                               
The  other change  in  AS  05 would  be  to  establish a  titling                                                               
program  for  the state,  which  would  not apply  to  documented                                                               
vessels but  would require titles  for non-documented  vessels in                                                               
Alaska.   This  would  provide personal  property protection  for                                                               
owners,  just  as  for  vehicle   owners.    Boat  trailers  have                                                               
considerably less liability  than a boat to people  over time and                                                               
this bill would regulate vessels and  trailers to be more in line                                                               
with the current DMV vehicle registration system.                                                                               
                                                                                                                                
10:25:11 AM                                                                                                                   
                                                                                                                                
MS.  LORD turned  to slide  10, titled  "Increase Clarity"  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Agencies  and municipalities  statewide need  increased                                                                    
     clarity for  defining a derelict vessel  ownership, and                                                                    
     for   the  impoundment   process  including   clarified                                                                    
     hearing and  notice requirements.   SB  updates Chapter                                                                    
     30.30  to  bring clarity  and  improve  utility of  the                                                                    
     statutes.                                                                                                                  
                                                                                                                                
MS. LORD  explained that the  remainder of the bill  were changes                                                               
to derelict  vessels under AS  30.30, which was written  in 1976.                                                               
The  DVTT  rewrote that  chapter  in  its entirety.    Currently,                                                               
before a derelict vessel such as  the Akutan could be dealt with,                                                               
agencies  and municipalities  must determine  whether the  vessel                                                               
would be  considered as  "abandoned" or  as a  "derelict vessel."                                                               
This  definition matters  because  the path  for impoundment  and                                                               
disposal process  differs depending on  how a vessel  is defined,                                                               
she said.  This bill  would dramatically improve clarity since it                                                               
would define all  abandoned vessels as derelict  vessels under AS                                                               
30.30.  It would  also clarify what it means to  own a vessel, as                                                               
well  as the  impoundment process.    Some have  argued that  the                                                               
state  law may  not be  constitutional  in terms  of due  process                                                               
under federal  admiralty law.   The provisions in HB  386 improve                                                               
due  process  for boat  owners  and  spell  out the  process  for                                                               
noticing,  impoundment, and  hearings  for vessels  deemed to  be                                                               
derelict vessels.                                                                                                               
                                                                                                                                
10:27:05 AM                                                                                                                   
                                                                                                                                
MS.  LORD directed  attention to  slide  11, titled  "Enforcement                                                               
Authority  &   Increased  Penalties,"   which  read   as  follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Current  statutes  restrict   enforcement  of  derelict                                                                    
     vessel laws.   One major way to  reduce vessel sinkings                                                                    
     and prevent owners from walking  away is to provide for                                                                    
     enforcement of  the chapter to hold  owners accountable                                                                    
     and  prevent derelict  vessels from  sinking on  public                                                                    
     waters.                                                                                                                    
                                                                                                                                
MS. LORD stated  that the current statutes  limit enforcement for                                                               
derelict vessels.   The provisions  in HB 386 would  increase the                                                               
enforcement  authority   and  penalties   and  allow   for  civil                                                               
penalties  instead  of  restricting   derelict  vessels  only  to                                                               
criminal  penalties.   The current  enforcement of  writing stern                                                               
letters  to vessel  owners has  not  worked and  this bill  would                                                               
improve enforcement.                                                                                                            
                                                                                                                                
10:27:40 AM                                                                                                                   
                                                                                                                                
MS. LORD turned to slide  12, titled "Clarified Liability," which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Hearing concerns  from agencies and public,  Task Force                                                                    
     members acknowledged  that it is important  to be clear                                                                    
     that a vessel owner is  liable for all costs associated                                                                    
     with  the   impoundment,  storage  and  removal   of  a                                                                    
     derelict vessel.                                                                                                           
                                                                                                                                
MS. LORD  said that it was  difficult to hold someone  liable for                                                               
walking  away from  an old  boat when  he/she does  not have  any                                                               
financial resources.   The DVTF decided it was  important to hold                                                               
these  derelict  vessel  parties   liable,  regardless  of  their                                                               
financial resources.   It was important to have  strong laws that                                                               
can  be enforced;  that when  the state  and municipalities  have                                                               
strong laws  people are  informed not  to get  into irresponsible                                                               
situations with  vessels.  The  bill provides clarity  for vessel                                                               
owners and enforcement authorities  that vessel owners are liable                                                               
for all  costs associated with  impoundment, storage  and removal                                                               
of derelict vessels.                                                                                                            
                                                                                                                                
10:28:36 AM                                                                                                                   
                                                                                                                                
MS.  LORD  turned to  slide  13,  titled "Streamlined  Capacity,"                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Outside  states have  found significant  improvement in                                                                    
     derelict   vessel   prevention    and   management   by                                                                    
     streamlining   their   efforts  through   a   statewide                                                                    
     program/point person.   Having  a point person  at ADNR                                                                    
     will concentrate  work that is currently  being done by                                                                    
     numerous   staff,  will   reduce  overall   costs,  and                                                                    
     increase efficacy of derelict vessel management.                                                                           
                                                                                                                                
                                                                                                                                
MS. LORD  indicated that  the bill  would provide  provisions for                                                               
the creation of  a derelict vessel prevention  program under DNR.                                                               
She reported  that some  DNR agency  members attended  a National                                                               
Oceanic  and  Atmospheric  Administration  (NOAA)  conference  on                                                               
derelict  vessels.   These staff  returned feeling  positive once                                                               
they realized that  none of the states have the  funds to dispose                                                               
of  derelict vessels.    States that  have  established a  "point                                                               
person"  and  funded  a  proactive  program  to  handle  derelict                                                               
vessels have  found the problem  diminished over time.   She said                                                               
that language within  HB 386 was permissive to  allow creation of                                                               
a derelict  vessel prevention fund  and to allow  the legislature                                                               
to  appropriate funds  for the  program.   Currently, the  public                                                               
does not have any state or  local agency staff to contact about a                                                               
derelict  vessel that  has been  abandoned on  state waters  even                                                               
though abandoned  vessels routinely  happen.  She  explained that                                                               
HB  386  allows  DNR  the statutory  authority  and  capacity  to                                                               
streamline the  work related to  derelict vessels.  In  fact, DNR                                                               
as managers of the state's  public land and water, currently must                                                               
perform  the work.   Unfortunately,  these staff  must work  on a                                                               
case-by-case basis  to deal with abandoned  derelict vessels, she                                                               
said.                                                                                                                           
                                                                                                                                
10:30:30 AM                                                                                                                   
                                                                                                                                
MS.  LORD turned  to slide  14,  titled "Cradle-to-Grave,"  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     Addressing vessel disposal was  outside of the scope of                                                                    
     the Task  Force, but  must be  addressed.   Through the                                                                    
     derelict  vessel  prevention  program, the  state  will                                                                    
     have the  opportunity to begin  looking at  options for                                                                    
     vessel disposal, scrap, and  salvage solutions that can                                                                    
     benefit  the   private  sector  and  be   a  reasonable                                                                    
     alternative to vessel abandonment.                                                                                         
                                                                                                                                
MS.  LORD  characterized  the   cradle-to-grave  view  of  vessel                                                               
management  as important,  noting  that the  DVTF  had plenty  of                                                               
ideas but  did not solve  the issues.   She pointed out  that the                                                               
bill contained permissive language  within the prevention program                                                               
section to allow the department  to consider some cradle-to-grave                                                               
options.  Alaska  does not have a lot of  financial capacity, but                                                               
she  said  the  state  could still  consider  long-term  planning                                                               
options  related  to  derelict   vessels  to  remove  boats  from                                                               
waterways before they sink.                                                                                                     
                                                                                                                                
10:31:25 AM                                                                                                                   
                                                                                                                                
MS.  LORD turned  to slide  15, titled  "Juneau Empire  Editorial                                                               
Oct.  15,  2015,  which read  as  follows  [original  punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     The  Alaska  Department  of  Natural  Resources...lacks                                                                    
     even the authority to fine...for littering.                                                                                
     ...In places  like Bethel, which  has a  dumping ground                                                                    
     called Steamboat  Slough, the  problem of  derelict and                                                                    
     abandoned boats  long ago broke  the surface  of public                                                                    
     awareness.                                                                                                                 
     ...we could instead simply  mandate the registration of                                                                    
     all boats --commercial  and recreational alike--through                                                                    
     the DMV. We could also  mandate that boats of a certain                                                                    
     size,  like all  cars,  carry  insurance sufficient  to                                                                    
     cover their salvage.                                                                                                       
     At the  very least,  we could  grant the  Department of                                                                  
     Natural Resources  the simple  authority to  levy fines                                                                  
     on those who pollute Alaska's waters.                                                                                    
                                                                                                                                
MS.  LORD  said that  when  the  sunken  tug Challenger  sunk  in                                                               
Gastineau Channel  in 2016, that  numerous people  wrote letters.                                                               
She directed attention to the  final sentence on the slide, taken                                                               
from an editorial in the Juneau  Empire, which read, "At the very                                                               
least, we  could grant  the Department  of Natural  Resources the                                                               
simple  authority to  levy fines  on those  who pollute  Alaska's                                                               
waters."  She stated that this was something HB 386 will do.                                                                    
                                                                                                                                
10:32:01 AM                                                                                                                   
                                                                                                                                
MS. LORD turned to slide 16,  with quotes from a Washington State                                                               
newspaper, the  Chinook Observer, March  22, 2017, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     "Too many  people get  in over  their heads,  and their                                                                    
     dreams of  ship renovation  or making money  from scrap                                                                    
     become a nightmare for the citizens of this state and                                                                      
     the marine environment.                                                                                                    
                                                                                                                                
     ...'A hole in  the water into which you  pour money' is                                                                    
     a famous  definition of a  boat. To the  maximum extent                                                                    
     possible,  we must  ensure taxpayers  are not  the ones                                                                    
     doing the pouring."                                                                                                        
                                                                                                                                
10:32:20 AM                                                                                                                   
                                                                                                                                
MS. LORD turned to slide 17,  titled "HCR 53 1990" which read, in                                                               
part, as follows [original punctuation provided]:                                                                               
                                                                                                                                
      WHEREAS the state does not currently have statutory                                                                       
         authority to impose liability on the owners of                                                                         
     abandoned vessels...                                                                                                       
                                                                                                                                
MS LORD  noted the  slide had  a copy of  a resolution  from 1990                                                               
that  identified the  problem;  however,  nothing happened  until                                                               
2013, and  now, in 2018,  the derelict  vessel law is  just being                                                               
brought forward.                                                                                                                
                                                                                                                                
10:32:55 AM                                                                                                                   
                                                                                                                                
MS.   LORD   turned   to   slide   18,   titled   "Akutan   Dutch                                                               
Harbor/Unalaska," and commented that there  were many articles on                                                               
the Akutan that members could read.   She said that she was aware                                                               
of only three vessels impounded  by DNR under the derelict vessel                                                               
laws: two in  Katchemak Bay, and the Akutan,  which was impounded                                                               
in  December   at  Unalaska.     She   stated  that   the  state,                                                               
municipality,  and  federal  governments  worked  on  a  creative                                                               
solution  to dispose  of the  Akutan.   She turned  to slide  19,                                                               
titled "Questions," and asked members if they had any questions.                                                                
                                                                                                                                
10:34:34 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN  asked about  the annual cost  for derelict                                                               
vessels.                                                                                                                        
                                                                                                                                
MS.  LORD deferred  to  the  DNR but  noted  that  there was  not                                                               
funding  set aside.   She  acknowledged  that considerable  staff                                                               
time has been spent on derelict  vessel and in terms of pollution                                                               
response,  that  the  Department  of  Environmental  Conservation                                                               
(DEC) and the US Coast Guard have funds for cleanup.                                                                            
                                                                                                                                
10:36:00 AM                                                                                                                   
                                                                                                                                
KRIS  HESS,  Chief of  Operations,  Central  Office, Division  of                                                               
Mining, Land  and Water (DML&W), Department  of Natural Resources                                                               
(DNR), responded  that the  DNR does not  have funding  set aside                                                               
for derelict vessel  disposal.  Anything that the  agency does on                                                               
derelict vessels must be taken from the operating budget.                                                                       
                                                                                                                                
10:36:30 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN asked  how much has been  spent on derelict                                                               
vessels.                                                                                                                        
                                                                                                                                
MS. HESS  answered that in  2017, the  DNR did not  expend funds.                                                               
In 2018,  the DNR expended  funds for  disposal of the  Akutan in                                                               
the amount of $36,000.  The  City of Unalaska agreed to reimburse                                                               
those costs, she said.                                                                                                          
                                                                                                                                
10:37:22 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE  EASTMAN   pointed  out  that  a   vessel  becomes                                                               
derelict after it anchors any place  it is not supposed to do so.                                                               
He offered  his belief there could  be many instances in  which a                                                               
person would  anchor a vessel  for safety  or other reasons.   He                                                               
asked for further clarification  that would address the timeframe                                                               
for the definition of "derelict vessel."                                                                                        
                                                                                                                                
MS.  LORD  said  that  the definition  for  derelict  vessel  was                                                               
derived from current  statutes.  She explained that  AS 30.30 has                                                               
several  definitions for  abandoned and  derelict vessels,  which                                                               
were  combined.    She  referred  to  AS  30.30.030,  related  to                                                               
applicability.  She  stated that the DVTF worked with  the DNR on                                                               
the  definition and  limitation  on applicability.   The  chapter                                                               
does not apply in safety situations, she said.                                                                                  
                                                                                                                                
10:39:29 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE EASTMAN  referred to page  12, line 22, of  HB 386                                                               
and  asked  whether  the  language  expanded  the  definition  of                                                               
derelict vessel.                                                                                                                
                                                                                                                                
MS. LORD responded  by advising that the goal was  to be as clear                                                               
as possible;  for example, some  people might consider  moored to                                                               
be tied  to a  dock versus  anchored in open  water.   She stated                                                               
that  the language  would also  apply  to municipalities  without                                                               
ordinances  or  other  laws;  this   chapter  needed  to  provide                                                               
explicit  clarity to  give  them the  protection  and ability  to                                                               
address  derelict  vessels  under  state  law.    The  additional                                                               
language  was  more  to  provide   clarity  than  to  expand  the                                                               
definition, she said.                                                                                                           
                                                                                                                                
10:41:45 AM                                                                                                                   
                                                                                                                                
MS. NICKELL-ZIMMERMAN  responded that the bill  sections had been                                                               
thoroughly addressed by Ms. Lord.                                                                                               
                                                                                                                                
10:42:39 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE TARR  said it  was disconcerting  to her  that the                                                               
state  does  not have  financial  resources  to put  towards  the                                                               
problem  of abandoned  and derelict  vessels.   She expressed  an                                                               
interest  in exploring  funding  especially  since these  vessels                                                               
could impact fisheries along Alaska's coastline.                                                                                
                                                                                                                                
10:43:12 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that she would set HB 386 aside.                                                                         
                                                                                                                                
[HB 386 was held over.]                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
CSHB 231 Additional Document CFEC Adjudications Graph 2014.pdf HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Additional Document CFEC Adjudications Table 2014.pdf HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Explanation of Changes.pdf HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Fiscal Note DFG.PDF HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Sectional Analysis.pdf HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Supporting Document NPFA.PDF HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Supporting Document USAG.PDF HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231 Transmittal Letter.pdf HFSH 2/27/2018 10:00:00 AM
HB 231
CSHB 231(FSH) ver D.PDF HFSH 2/27/2018 10:00:00 AM
HB 231
HB 386 Bill Ver A 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Power Point 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Sectional Analysis 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Sponsor Statement 02.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document - Article ADn Abandoned vessels litter 02.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document - Article ADN Boat carrying diesel fuel.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document - Article AED Unalaska pays thousands 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document - Article KTOO Juneau mulls anchoring.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document - Coming flood of abandoned 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document -Report McDowell Group, Inc 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Letter - Homer 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Document -Report State of Alaska Leg & Adm Review 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Letter - Juneau 2.23.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB188 Draft Proposed Blank CS ver L 2.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Fiscal Note DCCED.BS.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Fiscal Note DDCED.ED.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Sectional Analysis ver L 2.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Summary of Changes ver U-ver L 2.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Supporting Document BSFA 2.18.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB188 Supporting Document-Afognak Corporation Letter 2.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 188
HB260 Sponsor Statement 1.25.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 260
HB260 Fiscal Note-DFG- 2.16.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 260
HB260 Residential Hunters AK Letter of Support HB 260.pdf HFSH 2/27/2018 10:00:00 AM
HB 260
HB260 ver A 1.25.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 260
HB 272 Presentation 2.9.18.pdf HFSH 2/27/2018 10:00:00 AM
HRES 3/12/2018 1:00:00 PM
HB 272
HB272 Additional Document-Map.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272 Fiscal Note-DFG.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272 Fiscal Note-DNR.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272 Opposing Documents(Combined) Ahtna, AMA, CVCC.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272 Sectional Analysis ver U 1.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272 Sponsor Statement 1.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HRES 3/7/2018 1:00:00 PM
HB 272
HB272 Supporting Documents (Combined 49).pdf HFSH 2/27/2018 10:00:00 AM
HRES 3/7/2018 1:00:00 PM
HB 272
HB272 ver U 1.22.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB272-support letters Palin and Murkowski.pdf HFSH 2/27/2018 10:00:00 AM
HB 272
HB 386 Fiscal Note DOA 02.27.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Fiscal Note DNR 02.27.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Fiscal Note DEC 02.27.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Letter - Dillingham 02.27.18.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Letter - Cordova.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 386 Support Letter - Seward.pdf HFSH 2/27/2018 10:00:00 AM
HB 386
HB 188 Opposing Document BBFA.pdf HFSH 2/27/2018 10:00:00 AM
HB 188