Legislature(2003 - 2004)

01/22/2004 01:43 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                      January 22, 2004                                                                                          
                          1:43 PM                                                                                               
                                                                                                                                
TAPE HFC 04 - 10, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House Finance Committee meeting                                                                    
to order at 1:43 PM.                                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative John Harris, Co-Chair                                                                                            
Representative Bill Williams, Co-Chair                                                                                          
Representative Kevin Meyer, Vice-Chair                                                                                          
Representative Mike Chenault                                                                                                    
Representative Eric Croft                                                                                                       
Representative Hugh Fate                                                                                                        
Representative Richard Foster                                                                                                   
Representative Mike Hawker                                                                                                      
Representative Carl Moses                                                                                                       
Representative Bill Stoltze                                                                                                     
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Reggie Joule                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Linda  Sylvester, Staff  to Representative  Bruce  Weyhrauch;                                                                   
Admiral  James  Underwood,  United States  Coast  Guard;  Sue                                                                   
Hargis, United  States Coast Guard; Kevin  Jardell, Assistant                                                                   
Commissioner, Department of Administration.                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jack Cadigan, Coast Guard Auxiliary, Juneau; Duane Bannock,                                                                     
Director, Division of Motor Vehicles, Department of                                                                             
Administration.                                                                                                                 
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 93     An Act relating to boating safety; repealing secs.                                                                    
          3, 5, 7, 9, 11, 14, 16, 18, 20, 23, 26, 27, and                                                                       
          30, ch. 28, SLA 2000; and providing for an                                                                            
          effective date.                                                                                                       
                                                                                                                                
          CS HB 93(TRA) was HEARD and HELD in Committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
HOUSE BILL NO. 93                                                                                                             
                                                                                                                                
          An Act relating to boating  safety; repealing secs.                                                                   
          3, 5,  7, 9, 11,  14, 16, 18,  20, 23, 26,  27, and                                                                   
          30,  ch.  28,  SLA   2000;  and  providing  for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
LINDA  SYLVESTER, STAFF  to REPRESENTATIVE  BRUCE  WEYHRAUCH,                                                                   
explained  that Version  Q of  CS HB 93(TRA)  relates to  the                                                                   
Boating Safety Act reauthorization.   Testimony was heard and                                                                   
the bill was held in House Finance Committee last session.                                                                      
                                                                                                                                
ADMIRAL JAMES  UNDERWOOD, U.S.  COAST GUARD (USCG),  spoke in                                                                   
favor  of  HB 93  that  would  repeal  the sunset  clause  in                                                                   
Alaska's boating safety law. When  the Boating Safety Act was                                                                   
signed  in  May  2000,  Alaska   became  the  last  state  to                                                                   
establish  a boating safety  program.   The sunset  provision                                                                   
was  added  to  address  concerns  about  the  continuity  of                                                                   
federal  funding.   This program  has  been reauthorized  and                                                                   
funding is expected  to continue and increase due  to a shift                                                                   
in  the federal  funding formula.   The  program has  brought                                                                   
about increased  public awareness  of boating safety  and Mr.                                                                   
Underwood spoke  in support of  The Kids Don't  Float program                                                                   
that  has  saved the  lives  of  at  least  9 children.    He                                                                   
described the education efforts  of the program that has more                                                                   
successfully reached  elementary age children than  the Coast                                                                   
Guard Auxiliary program.                                                                                                        
                                                                                                                                
Mr. Underwood  described the shift of boating  safety efforts                                                                   
from the USCG  to the State of  Alaska in 1979 and  the Coast                                                                   
Guard's focus  on search  and rescue.   Since Sept.  11, 2001                                                                   
the USCG has been engaged in Homeland Security issues.                                                                          
                                                                                                                                
Representative  Stoltze inquired about  the possibility  of a                                                                   
volunteer  program  to  assist  in  search  and  rescue.  Mr.                                                                   
Underwood  replied that  a volunteer  program would  not meet                                                                   
the federal  guidelines  and would not  qualify for  matching                                                                   
state funds.                                                                                                                    
                                                                                                                                
Representative  Stoltze  commented that  the  purpose of  the                                                                   
sunset was to ensure future funding  and asked if there would                                                                   
be a problem extending the sunset  instead of repealing them.                                                                   
He expressed doubt over the long-term  reliability of federal                                                                   
funding.                                                                                                                        
                                                                                                                                
Mr.  Underwood  replied  that  the federal  funds  have  been                                                                   
reauthorized on  a permanent basis.   Another law,  the "Safe                                                                   
and   Flexible  Transportation   Efficiency   Act  of   2003"                                                                   
allocates available  funds between anglers and  boaters.  The                                                                   
fifty percent state and federal  match of the past is now 75%                                                                   
federal  with  a  25%  matching  state  share,  providing  an                                                                   
increase for Alaska.                                                                                                            
                                                                                                                                
Representative  Stoltze  noted  the  bill  provides  a  total                                                                   
exemption  for  non-motorized  craft,  and  asked  if  that's                                                                   
equitable.  He also  questioned if  there is  no cost to  the                                                                   
USCG for search and rescue of non-motorized vessels.                                                                            
                                                                                                                                
Mr. Underwood  replied,  federal law  has no requirement  for                                                                   
non-motorized  vessels  to  be   registered.  State  law  has                                                                   
required  them  to  register,   which  brings  in  about  $30                                                                   
thousand to  $35 thousand  annually.   The average  number of                                                                   
USCG search  and rescue  efforts for canoes  and kayaks  is 5                                                                   
per year  compared to  30 motorized search  and rescues.   He                                                                   
commented that  having a [registration] decal  doesn't make a                                                                   
boat easier to  find or safer. The cost of  non-motorized and                                                                   
motorized search  and rescue efforts  are more  determined by                                                                   
fuel  costs  to  get  USCG  assets  on  scene,  with  boating                                                                   
accidents in  Unalaska costing  more than those  in Southeast                                                                   
Alaska.                                                                                                                         
                                                                                                                                
Mr. Underwood  continued discussing boating  fatalities since                                                                   
the boating law was enacted.                                                                                                    
                                                                                                                                
Representative  Croft brought up  the intent language  in the                                                                   
original  bill, which  stated that  at least  75% of  federal                                                                   
funds generated from  this Act would be used  to fund boating                                                                   
safety programs.  He asked if the intent is being met.                                                                          
                                                                                                                                
Mr. Underwood replied that he believed it is.                                                                                   
                                                                                                                                
Co-Chair  Harris asked  if the  deleted language  on Page  2,                                                                   
Sec. 2(i)(4) is a good idea.                                                                                                    
                                                                                                                                
Mr.  Underwood   replied  'yes,'  while  at   the  same  time                                                                   
expressing  concern that  the language  not remove the  state                                                                   
from federal  entitlement funds  through non-compliance  with                                                                   
the  Safe Boating  Act. He  stated  that the  number of  non-                                                                   
motorized boating fatalities is extremely low.                                                                                  
                                                                                                                                
Representative Hawker  asked if this proposed  language would                                                                   
threaten existing funding.  Mr.  Underwood responded that the                                                                   
language would not.                                                                                                             
                                                                                                                                
Representative   Hawker  asked  if   the  funding   would  be                                                                   
threatened  if  the  language   in  the  original  bill  were                                                                   
reinserted.                                                                                                                     
                                                                                                                                
Mr.  Underwood replied  that reinserting  the language  would                                                                   
not  threaten  the funding.    He discussed  the  enforcement                                                                   
effort  regarding noncompliant  non-motorized craft  compared                                                                   
to the risk  of losing the  whole program by letting  the law                                                                   
die.   In his  opinion, if  removing those  vessels [in  Sec.                                                                   
2(i)(4)]  would allow  the rest  of  the law  to remain,  the                                                                   
greater good would be served.                                                                                                   
                                                                                                                                
                                                                                                                                
Co-Chair  Harris asked  if the sections  [being repealed]  in                                                                   
Sec. 3 of CSHB 93 (TRA) all relate to the sunset provision.                                                                     
                                                                                                                                
Linda  Sylvester  agreed  that  HB 93  is  confusing  in  its                                                                   
wording.   She explained that  the repealers in  this version                                                                   
refer back  to the bill  passed in 2000;CSHB  93(TRA) repeals                                                                   
the paddle boat provisions.                                                                                                     
                                                                                                                                
Representative Croft  asked if the sections listed  in Sec. 3                                                                   
all relate to sunset.                                                                                                           
                                                                                                                                
Linda Sylvester  replied that  these repealed sections  would                                                                   
make inactive  the provisions  of the boating  safety statute                                                                   
by the end of 2004.                                                                                                             
                                                                                                                                
SUE HARGIS, U.S. COAST GUARD,  explained the bill removes old                                                                   
provisions of  state regulations  that mirrored federal  law.                                                                   
These regulations  will disappear  if the sunset  doesn't get                                                                   
repealed.                                                                                                                       
                                                                                                                                
PAM  LABOLLE, PRESIDENT,  ALASKA STATE  CHAMBER OF  COMMERCE,                                                                   
stated that  the Chamber  was supportive  of the initial  law                                                                   
[Boating Safety  Act].   The Chamber is  convinced this  is a                                                                   
good program and  would like to maintain federal  support for                                                                   
it.                                                                                                                             
                                                                                                                                
JACK CADIGAN, U.S. COAST GUARD  AUXILIARY, spoke representing                                                                   
himself and the  Alaskan district of the Auxiliary.   Boating                                                                   
safety   has  significantly   improved   and  the   Auxiliary                                                                   
enthusiastically   supports   this   bill.   He   urged   the                                                                   
Legislature not to allow primary  water safety responsibility                                                                   
in Alaskan waters  to revert back to the  federal government.                                                                   
The state can do a better overall  job promoting water safety                                                                   
than the USCG, and he urged unanimous support of the bill.                                                                      
                                                                                                                                
Representative Stoltze recalled  a different fiscal note than                                                                   
$35 thousand  for the original  boating safety bill  in 2000,                                                                   
and he asked Mr. Bannock's recollection of the fiscal note.                                                                     
                                                                                                                                
DUANE BANNOCK,  DIRECTOR, DIVISION  OF MOTOR VEHICLES,  (DMV)                                                                   
DEPARTMENT  OF ADMINISTRATION  stated that  he researched  HB
108  [enacted  in  2000]  and   the  numbers  projected  were                                                                   
approximately $930 thousand annually.                                                                                           
                                                                                                                                
Representative   Stoltze   replied,    that's   "a   sobering                                                                   
difference."                                                                                                                    
                                                                                                                                
Mr. Bannock  clarified that the  figure in the  larger fiscal                                                                   
note combined  both power  and non-power  boats.  The  fiscal                                                                   
note for  non-power boats is $333,000.   In his  opinion, the                                                                   
formula   used  in   the  2000   fiscal   note  was   figured                                                                   
incorrectly.                                                                                                                    
                                                                                                                                
MARTHA  MOORE,  TRAUMA REGISTRY  COORDINATOR,  DEPARTMENT  OF                                                                   
HEALTH  & SOCIAL  SERVICES,  stated the  Department  supports                                                                   
eliminating the sunset  clause in this bill.   The Department                                                                   
views the bill from a safety standpoint  and the reduction in                                                                   
number of annual  boating deaths over the past  four years is                                                                   
significant.    Boating    safety   efforts    have    helped                                                                   
tremendously.  Seven kids put  on a life  jacket and  did not                                                                   
drown because of the Kids Don't Float program,                                                                                  
                                                                                                                                
Representative Stoltze referred  to a letter from the Outdoor                                                                   
Council (copy on file.)                                                                                                         
                                                                                                                                
Co-Chair Harris  referred to Sec. 2,(i)(4) and  asked whether                                                                   
any sailboat of  any length without auxiliary  power would be                                                                   
exempt.  A discussion ensued with Ms. Sylvester.                                                                                
                                                                                                                                
Ms. Hargis  said the intent  of the CS  was to remove  paddle                                                                   
boats, the  non-motorized craft;  anything under ten  feet in                                                                   
length was exempted from registration.                                                                                          
                                                                                                                                
HB  93   was  heard  and   HELD  in  Committee   for  further                                                                   
consideration.                                                                                                                  
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 2:26 PM.                                                                                           
                                                                                                                                
                                                                                                                                

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