Legislature(2013 - 2014)BARNES 124

03/21/2013 01:00 PM House TRANSPORTATION


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 23 KNIK ARM BRIDGE AND TOLL AUTHORITY TELECONFERENCED
Moved Out of Committee
+ HB 131 ABANDONED AND DERELICT VESSELS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
             HB 131-ABANDONED AND DERELICT VESSELS                                                                          
                                                                                                                                
2:19:58 PM                                                                                                                    
                                                                                                                                
CHAIR P. WILSON announced that  the final order of business would                                                               
be  HOUSE  BILL  NO.  131,  "An Act  relating  to  abandoned  and                                                               
derelict vessels."                                                                                                              
                                                                                                                                
2:20:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PAUL  SEATON,  Alaska State  Legislature,  stated                                                               
that HB 131 relates to derelict  vessels.  He referred to several                                                               
additional supportive documents in  members' packets, including a                                                               
resolution from  the City of  Cordova and the City  of Ketchikan.                                                               
He said that this bill was  based primarily on a request from the                                                               
Alaska  Association  of  Harbormasters and  Port  Administrators.                                                               
This bill would address a  costly and growing problem of derelict                                                               
vessels in Alaska.  He  stated that due to fishery consolidations                                                               
which  occurred  in the  1990s,  the  state  has been  left  with                                                               
numerous vessels that are now  deteriorating or have been sold to                                                               
parties lacking the financial capability  to maintain them.  This                                                               
has led  to vessels being  abandoned or becoming  derelict, which                                                               
takes up  significant room  in Alaska's  harbors or  uses moorage                                                               
space.   Ultimately, municipalities  must resolve the  problem of                                                               
abandoned and  derelict vessels.   For example, a vessel  sank in                                                               
Cordova and  it took two years  to resolve the issue  of the 170-                                                               
foot landing  craft, which ultimately cost  the municipality more                                                               
than $1.2 million in disposal costs.                                                                                            
                                                                                                                                
REPRESENTATIVE  SEATON pointed  out  a notable  example when  two                                                               
seiners sank in Kachemak Bay and  the U.S. Coast Guard and DOT&PF                                                               
spent  $250,000 to  dispose of  the  vessels.   He explained  the                                                               
DOT&PF is  the entity that  originally built the  state's harbors                                                               
so the authority to address  derelict and abandoned vessels rests                                                               
with the DOT&PF.  However,  he advised that Department of Natural                                                               
Resources (DNR)  has the  authority over  state waters  and state                                                               
lands.  Thus, when a derelict  vessel is anchored in state waters                                                               
and sinks, the  DNR has the responsibility; however,  the DOT has                                                               
the authority, yet  the USCG oversees any issues  related to fuel                                                               
or petroleum leaks.  This bill,  HB 131 would attempt to create a                                                               
multi-agency approach  and provide relief for  municipalities who                                                               
own harbors  transferred to them.   However,  many municipalities                                                               
don't have local authority to  address the abandoned and derelict                                                               
vessels.     Thus,  HB  131  would   coordinate  the  activities.                                                               
Additionally, HB 131 would create  a requirement that if a vessel                                                               
was denied  entrance into  a harbor due  to its  derelict status,                                                               
the  vessel may  not  be stored  for more  than  14 days  without                                                               
removing any petroleum products and hazardous materials.                                                                        
                                                                                                                                
2:24:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  emphasized  the  importance  of  removing                                                               
these materials  timely rather than  wait until the  vessel sinks                                                               
and the materials  are released, often during  storms, leading to                                                               
expensive salvage  operations.  Again, this  bill would establish                                                               
the  framework  to address  abandoned  and  derelict vessels  and                                                               
clearly lays out the procedures  for the state or municipality to                                                               
handle the vessels.  Thus far,  he is not aware of any opposition                                                               
to  the bill.   He  pointed out  a March  18, 2013  Seattle Times                                                             
article, entitled, "Ship Owner Gets  More Than He Bargained For -                                                               
Prison time."   He reported that  it cost $22 million  to resolve                                                               
this specific  salvage issue.   He characterized  vessel disposal                                                               
under the bill as being preventive  in nature.  He described some                                                               
difficulties that have arisen in recent  times.  In response to a                                                               
question, he stated that the bill has a zero fiscal note.                                                                       
                                                                                                                                
2:27:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE  said he  wholeheartedly supports  the bill,                                                               
noting  the  City  of  Valdez  has  brought  this  issue  to  his                                                               
attention.    He  acknowledged  that   the  City  of  Valdez  has                                                               
experienced significant issues with  derelict vessels.  He stated                                                               
that  a   derelict  vessel  can   lie  on  a  beach   within  the                                                               
municipality and  often times  the vessel  is abandoned  when the                                                               
owner  loses  his/her  job  or  runs out  of  money.    In  those                                                               
instances  the vessel  is abandoned  in the  harbor.   Typically,                                                               
unmaintained vessels  sink, especially  in Valdez since  when the                                                               
significant  snow accumulation  is  not shoveled  off.   At  that                                                               
point, it  becomes the  City of  Valdez's problem,  including all                                                               
the  costs associated  to accomplish  the  cleanup.   He said  he                                                               
supports  any efforts  the  legislature can  take  to help  local                                                               
government entities address this issue.                                                                                         
                                                                                                                                
CHAIR P. WILSON  related the City of Wrangell is  also working on                                                               
this issue and is working to change come of its bylaws.                                                                         
                                                                                                                                
REPRESENTATIVE SEATON  remarked that frequently boats  are stored                                                               
over  an extended  period of  time by  tipping them  upside down.                                                               
The  bill contains  an exception  for  the traditional  practices                                                               
outside  municipalities;  and  within municipalities,  the  local                                                               
government can regulate the practice.   Additionally, HB 131 does                                                               
not apply to vessel storage on  private land, but only applies to                                                               
public land and waters.                                                                                                         
                                                                                                                                
2:29:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FEIGE asked for  clarification on the relationship                                                               
and responsibilities of the USCG.                                                                                               
                                                                                                                                
REPRESENTATIVE  SEATON answered  two  methods  exist to  register                                                               
boats.   First, documented vessels  are ones that  are documented                                                               
with  the U.S.  government and  in  times of  war the  government                                                               
could use the  vessel.  Second, state vessels  are under five-ton                                                               
net weight and are identifiable by  the "AK number" listed on the                                                               
side  of the  bow.   He initially  shared Representative  Feige's                                                               
concern   over  the   relationship   with  the   USCG,  but   the                                                               
harbormaster  has  not  had  any  issues  between  documented  or                                                               
undocumented vessels in derelict situations.   He pointed out the                                                               
USCG has  responsibility for oil spills,  but if the spill  is in                                                               
state waters,  the DOT&PF and  DNR coordinate pulling  the vessel                                                               
and dismantling  it.  In further  response, Representative Seaton                                                               
clarified that  any vessel used for  commercial purposes weighing                                                               
five tons  net or over must  be a documented vessel,  although he                                                               
noted that yachts can't be used for commercial purposes.                                                                        
                                                                                                                                
2:32:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ISAACSON asked  whether someone  wanting to  take                                                               
possession  of the  vessel would  pay the  state agency  any port                                                               
fees  owed.    He  wondered whether  municipalities  must  absorb                                                               
losses  if the  vessels  are  sold at  auction  and the  expenses                                                               
incurred by the municipality are not covered.                                                                                   
                                                                                                                                
REPRESENTATIVE  SEATON  acknowledged  that  municipalities  often                                                               
attempt to  recover funds.   He said if  the value is  under $100                                                               
municipalities  can  dispose  of  vessels without  going  to  the                                                               
expense  of public  noticing,  which  adds costs.    In fact,  he                                                               
cautioned against  municipalities selling derelict  vessels since                                                               
these vessels  may be purchased but  end up in the  harbor again.                                                               
Thus,  it is  often  better  to dismantle  any  vessels with  low                                                               
value.   However, he related these  decisions can be made  by the                                                               
local  harbor and  this  bill  would give  the  local harbor  the                                                               
authority to address abandoned and derelict vessels.                                                                            
                                                                                                                                
2:34:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  recalled seeing vessels along  Thane Road in                                                               
Juneau.  He asked whether this bill would cover these vessels.                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  was unsure  of specific  vessels; however,                                                               
this  bill  will provide  municipalities  the  ability to  handle                                                               
vessels within the municipality, but  it does not require them to                                                               
do so.                                                                                                                          
                                                                                                                                
2:35:00 PM                                                                                                                    
                                                                                                                                
STEVE  CORPORAN,  Director, Ketchikan  Port  &  Harbors, City  of                                                               
Ketchikan; President, Alaska Association  of Harbormasters & Port                                                               
Administrators,  stated that  the  sponsor did  an excellent  job                                                               
outlining the intent  and salient and key factors.   He said that                                                               
the  City of  Ketchikan has  strong statutes  regarding abandoned                                                               
and derelict  vessels.  This  bill, HB 131, will  help strengthen                                                               
state and municipal  authority.  For example,  since Ketchikan is                                                               
proactive, a derelict  vessel often will leave  the harbor before                                                               
it is impounded, but will not  travel far.  In fact, owners often                                                               
take the  vessels just outside Ketchikan's  jurisdiction to state                                                               
lands,  anchor out,  and the  vessels sink  and become  expensive                                                               
salvage jobs.   The USCG  usually gets involved after  the vessel                                                               
sinks and the  cost exponentially increases as  compared to costs                                                               
to remove the  vessel prior to it sinking.   This bill would help                                                               
pull the team members together  to give them authority to impound                                                               
the vessels before they sink.                                                                                                   
                                                                                                                                
2:37:14 PM                                                                                                                    
                                                                                                                                
RACHEL   LORD,  Statewide   Coordinator,  Alaska   Clean  Harbors                                                               
Program;  Outreach and  Monitoring Coordinator  Cook InletKeeper,                                                               
stated the Alaska Clean Harbors  is a voluntary statewide program                                                               
that works with harbormasters to  improve resources and tools for                                                               
waste  management,  pollution  prevention, and  customer  service                                                               
activities.  She  testified that HB 131 is a  strong step forward                                                               
to  improve  the ability  of  Alaska's  municipalities and  state                                                               
agencies to  effectively address  abandoned and  derelict vessels                                                               
along Alaska's vast  coastline.  She explained  that many coastal                                                               
municipalities lack  the legal  framework within  their municipal                                                               
codes  or to  navigate the  maritime law  to effectively  address                                                               
these vessels.   No longer the owner of the  majority of Alaska's                                                               
harbors,  the DOT&PF  does not  have the  staffing or  mandate to                                                               
solely manage abandoned or derelict  vessels in harbors and state                                                               
waters as specified in current  statutes.  She suggested that the                                                               
state should look  to states, such as Washington,  who have spent                                                               
millions of dollars addressing abandoned  and derelict vessels on                                                               
their coasts  and rivers.   The high  cost associated  with these                                                               
vessels has helped spur states  on to take legislative action and                                                               
create  coordinated efforts  and provide  a structure  to address                                                               
these real environmental  and financial concerns.   This bill, HB
131, will help  Alaska begin to move in the  right direction with                                                               
common  sense and  immediately make  useful  changes to  outdated                                                               
state statutes.   She offered her belief that  Alaska has enjoyed                                                               
a  relatively  young fleet  of  actively  working vessels.    She                                                               
highlighted that  it is  increasingly not the  case as  the fleet                                                               
ages  and she  predicted an  increase in  derelict vessels.   She                                                               
said  that these  vessels are  increasingly  littering the  coast                                                               
line  and  share the  waters  with  commercial, subsistence,  and                                                               
personal use  fisheries and  shellfish beds.   In  conclusion the                                                               
Alaska Clean Harbors strongly supports passage of HB 131.                                                                       
                                                                                                                                
2:39:19 PM                                                                                                                    
                                                                                                                                
ROGER  HEALY,  Chief  Engineer, Department  of  Transportation  &                                                               
Public Facilities  (DOT&PF), provided some background,  such that                                                               
in  1975 the  original statute  was written  at a  time when  the                                                               
state had the Department of  Public Works (DPW).  During Governor                                                               
Hammond's administration  the DPW and the  Department of Highways                                                               
was merged  into the DOT&PF.   The authority came to  the DOT&PF,                                                               
he said.  Since the  mid-80s the DOT&PF has transferred authority                                                               
of approximately 100 harbors  to municipalities, which represents                                                               
approximately  75  percent of  the  harbors.   The  authority  to                                                               
address abandoned  and derelict vessels is  contained within this                                                               
bill.  Others have spoken well  about the issue, but this bill is                                                               
needed now.  He offered the DOT&PF's support for HB 131.                                                                        
                                                                                                                                
CHAIR P.  WILSON remarked she  recently told a reporter  that the                                                               
wheels of government turn slowly.                                                                                               
                                                                                                                                
2:41:42 PM                                                                                                                    
                                                                                                                                
CARL    UCHYTIL,   Vice-President,    Harbormasters   and    Port                                                               
Administrators  (AAHPA);  Port  Director,  City  and  Borough  of                                                               
Juneau (CBJ),  stated that  the AAHPA  in its  resolution 2012-02                                                               
strongly urges support  to changes in AS 30.30  for abandoned and                                                               
derelict  vessels.    The  AAHPA   believes  that  delegation  of                                                               
authority under state statutes to  local municipalities is a step                                                               
in  the right  direction in  turning  the tide  of abandoned  and                                                               
derelict vessels in  the state.  He stated that  the condition of                                                               
vessels that operate in Alaska  is diverse and ranges from modern                                                               
yachts  and  well-maintained   80-year-old  wooden  trawlers,  to                                                               
relatively  but  decrepit live  aboard  vessels  to turn  of  the                                                               
century  abandoned tugboats.   The  harbormaster has  continually                                                               
sought tools to  best manage the harbor  facilities while keeping                                                               
a vigilant eye on vessels with  encroach on tidelands.  This bill                                                               
would give  the harbormasters throughout  the state  authority to                                                               
address  the liabilities  and hazards  of abandoned  and derelict                                                               
vessels,  which  is  especially   important  in  smaller  coastal                                                               
communities  where  legal  and   enforcement  resources  are  not                                                               
readily  available.    He  explained  that  the  construction  of                                                               
operations  and harbors  by the  DOT&PF  resulted in  regulations                                                               
that empowered only DOT&PF to deal with troublesome vessels.                                                                    
                                                                                                                                
MR. UCHYTIL  said that expanding  the language to allow  not only                                                               
DOT&PF, but  other state agencies  and municipalities  to address                                                               
the  abandoned   and  derelict  vessels   appears  to   be  sound                                                               
legislation.   Further, the proposed  delegation of  authority to                                                               
local municipalities  would help refine the  relationship between                                                               
the  state, city,  and borough  responsibilities and  will enable                                                               
harbormasters  and communities  with limited  legal resources  or                                                               
limited  ordinances   to  act  with  competence   in  prosecuting                                                               
abandoned  and  derelict  vessels.   Additionally,  the  proposed                                                               
changes to  AS 30.30 in  HB 131  appear to provide  authority for                                                               
the  state  and municipalities  to  act  in  a timely  manner  to                                                               
dispose of vessels before these  vessels sink.  He emphasized the                                                               
importance  of  this  since the  disposal  cost  associated  with                                                               
vessels when  afloat is a fraction  of the cost once  the vessels                                                               
take on  water and become submerged  or discharges fuel oil.   In                                                               
conclusion,  he   said  the  AAHPA   thanks  members   for  their                                                               
consideration  of  this  important  issue  for  Alaska's  coastal                                                               
communities.                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON characterized  this type  of legislation  as one                                                               
that can  assist communities  without adding  cost to  the state,                                                               
represents a good opportunity for the state.                                                                                    
                                                                                                                                
2:45:05 PM                                                                                                                    
                                                                                                                                
CHAIR P.  WILSON, after first  determining no one else  wished to                                                               
testify, closed public testimony on HB 131.                                                                                     
                                                                                                                                
2:45:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ISAACSON moved  to report HB 131  out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 131 was reported  from the                                                               
House Transportation Standing Committee.                                                                                        
                                                                                                                                
2:46:21 PM                                                                                                                    

Document Name Date/Time Subjects
HB0131A.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 Sponsor Statement.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
Washington State Derelict Vessel Program Brochure.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
City of Homer resolution_13-026.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
e-mail from Homer Harbormaster regarding Derelict Vessel problem.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 AAHPA Resolution.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 Cordova Article.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 Derelict vessels - DNR information.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 DNR Derelict Vessels Presentation.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 News articles on Derelict vessels in Alaska.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 131 Seattle Times article on Derelict vessel issue in Washington State.pdf HTRA 3/21/2013 1:00:00 PM
HB 131
HB 23 KABATA Questions from 3-12.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 1.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 3.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 4.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 5.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 7.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 8.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Sectional Analysis.pdf HTRA 3/21/2013 1:00:00 PM
HB 23
HB 23 Amendment A 2.pdf HTRA 3/21/2013 1:00:00 PM
HB 23