Legislature(1999 - 2000)

02/04/2000 01:38 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                  HOUSE FINANCE COMMITTEE                                                                                       
                      February 4, 2000                                                                                          
                         1:38 P.M.                                                                                              
                                                                                                                                
TAPE HFC 00 - 25, Side 1                                                                                                        
TAPE HFC 00 - 25, Side 2                                                                                                        
TAPE HFC 00 - 25, Side 1                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Therriault  called   the  House  Finance  Committee                                                                   
meeting to order at 1:38 p.m.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                       
                                                                                                                                
Co-Chair Mulder                                                                                                                 
Co-Chair Therriault            Representative Foster                                                                            
Vice Chair Bunde               Representative Grussendorf                                                                       
Representative Austerman       Representative Moses                                                                             
Representative J. Davies       Representative Phillips                                                                          
Representative G. Davis                                                                                                         
                                                                                                                                
Representative Williams was absent from the meeting.                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Bill  Hudson,  Sponsor;  Representative  John                                                                   
Cowdery,   Sponsor;   Anne  Carpeneti,   Assistant   Attorney                                                                   
General,  Criminal  Division,   Department  of  Law;  Candace                                                                   
Brower,  Legislative  Liaison,   Department  of  Corrections;                                                                   
Melinda Hofstad, Staff, Representative  Hudson; Mike Tibbles,                                                                   
Staff,  Representative Therriault;  Carol Carroll,  Director,                                                                   
Division   of  Support   Services,   Department  of   Natural                                                                   
Resources; Rear  Admiral Thomas  J. Barrett, Director  of the                                                                   
17thousand dollars Coast Guard                                                                                                  
District.                                                                                                                       
                                                                                                                                
TESTIFIED VIA TELECONFERENCE                                                                                                  
                                                                                                                                
Blair  McCune,  Public  Defender's   Office;  Mike  Folkerts,                                                                   
Chair,  Alaska Boating  Safety  Advisory Council,  Anchorage;                                                                   
Barbara  Sands, District  Commander,  Coast Guard  Auxiliary,                                                                   
Anchorage;  Tim  Kelahan, Rescue  Company,  Fairbanks;  Larry                                                                   
DisBrow,   Advisory  Board,   Northern   Area  State   Parks,                                                                   
Fairbanks; Marie  Scholle, Chair, Alaska Advisory  Council on                                                                   
Safety, Fairbanks;  Brad Snow, President  Fairbanks Paddlers,                                                                   
Fairbanks;  Alan  Parks,  Commercial  Fisherman,  Homer;  Jim                                                                   
Lawyer,  Assessor,  Kenai  Peninsula  Borough,  Kenai;  Jerry                                                                   
Dzugan,    Director,   Alaska    Marine   Safety    Education                                                                   
Association,   Sitka;    Cliff   Judkins,    Alaska   Boating                                                                   
Association,   Matsu;  Patrick   Mead,  Captain,   University                                                                   
Fairbanks Fire  Department, Fairbanks; Alison  Carter, Chair,                                                                   
Ad Hoc Committee, Fairbanks Paddlers,  Fairbanks; Admiral Tom                                                                   
Barrett,  United States  Coast Guard,  Juneau; Chuck  Hosack,                                                                   
Deputy Director, Division of Motor  Vehicles, Anchorage; Mary                                                                   
Marshburn,   Division  of   Motor   Vehicle,  Department   of                                                                   
Administration, Anchorage; Bruce Campbell, Fairbanks.                                                                           
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 108    "An  Act  relating   to  the  use,  operation,  and                                                                   
          regulation  of boats; establishing a  uniform state                                                                   
          waterway  marking  system;  and  providing  for  an                                                                   
          effective date."                                                                                                      
                                                                                                                                
          HB 108 was heard and  HELD in Committee for further                                                                   
          consideration.                                                                                                        
                                                                                                                                
HB 180    An  Act relating  to  the possession,  manufacture,                                                                   
          use, display, or delivery  of controlled substances                                                                   
          while children are present.                                                                                           
                                                                                                                                
          CSHB 180  (FIN) was REPORTED out of  Committee with                                                                   
          a  "do not  pass" recommendation  and a new  fiscal                                                                   
          impact note by the Department  of Administration, a                                                                   
          new zero  fiscal note  by the Alaska  Court System,                                                                   
          and two new indeterminate  fiscal notes, one by the                                                                   
          Department   of   Corrections   and  one   by   the                                                                   
          Department of Law.                                                                                                    
                                                                                                                                
HB 191    "An Act relating to  charter schools; and providing                                                                   
          for an effective date."                                                                                               
                                                                                                                                
          HB 191 postponed for further consideration.                                                                           
                                                                                                                                
HB 203    An  Act  relating  to loans  from  the  agriculture                                                                   
          revolving loan  fund and to contracts  for the sale                                                                   
          of  state agriculture  land; and  providing for  an                                                                   
          effective date.                                                                                                       
                                                                                                                                
          CSHB 203 (FIN) was REPORTED out of Committee with                                                                     
          "no  recommendation" and a  new fiscal  impact note                                                                   
          by the Department of Natural Resources.                                                                               
HOUSE BILL NO. 203                                                                                                            
                                                                                                                                
     "An  Act   relating  to   loans  from  the   agriculture                                                                   
     revolving  loan fund and  to contracts  for the  sale of                                                                   
     state agriculture  land; and providing for  an effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Members were  provided with a proposed  committee substitute,                                                                   
work   draft  #1-LS0871\S,   which   incorporated   committee                                                                   
substitute,  work   draft  #1-LS0871\M,  Cook,   1/21/00  and                                                                   
Amendment  2 by  Representative  J.  Davies,  adopted by  the                                                                   
Committee on 02/01/00 (copy on file).                                                                                           
                                                                                                                                
Representative  J.   Davies  MOVED  to  ADOPT   the  proposed                                                                   
committee substitute, work draft  #1-LS0871\S. There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
MIKE TIBBLES,  STAFF, REPRESENTATIVE THERRIAULT  reviewed the                                                                   
committee substitute.  He explained  that Amendment  2, which                                                                   
was  previously  adopted by  the  committee,  dealt with  the                                                                   
ability of the Agricultural Revolving  Loan Fund Board to set                                                                   
guidelines   defining   "disaster"    or   "emergency".   The                                                                   
Department  of Law  explained that  the Board  does not  have                                                                   
regulatory authority. The authority  currently rests with the                                                                   
department. The  amendment was  amended in the  new committee                                                                   
substitute  on page 3,  line 17.  The following language  was                                                                   
added: "based upon regulations adopted by the department."                                                                      
                                                                                                                                
Mr. Tibbles noted that references  to "rate" were modified by                                                                   
"fixed". This  would assure an  equality of comparisons.  The                                                                   
following  language was  added: "a fixed  rate comparable  to                                                                   
that charged  by other  agricultural lending institutions  in                                                                   
the state for similar loans".                                                                                                   
                                                                                                                                
Section 2 is  new. Reference to short term  loans was omitted                                                                   
from  the original  draft.  References  to "8  percent"  were                                                                   
replaced   with  "comparable   to  that   charged  by   other                                                                   
agricultural lending institutions".                                                                                             
                                                                                                                                
Representative  J.   Davies  questioned  if  the   intent  of                                                                   
modifying  "rate" with  "fixed" is to  prevent variable  rate                                                                   
loans. Co-Chair Therriault affirmed  that it is the intent of                                                                   
the  legislation   to  prevent   variable  rate   loans.  The                                                                   
department does not currently,  or intent to, handle variable                                                                   
rate loans.                                                                                                                     
                                                                                                                                
CAROL  CARROLL,  DIRECTOR,  DIVISION   OF  SUPPORT  SERVICES,                                                                   
DEPARTMENT OF  NATURAL RESOURCES provided information  on the                                                                   
legislation.  She  noted  that the  department  supports  the                                                                   
amendment and does not have staff  to do variable rate loans.                                                                   
                                                                                                                                
Mr.  Tibbles   observed  that   "notwithstanding  any   other                                                                   
provision of  law that  relates to loan  terms" was  added on                                                                   
page 3, line 17.  This would override  any previous provision                                                                   
that precluded a loan from being restructured.                                                                                  
                                                                                                                                
Co-Chair Therriault discussed  the fiscal note. He noted that                                                                   
the expected cost has been reduced.                                                                                             
                                                                                                                                
Vice  Chair  Bunde observed  that  the  loan program  is  not                                                                   
expected to break  even. He questioned the cost  to the state                                                                   
over the  next five  years. Co-Chair  Therriault pointed  out                                                                   
that  it is  difficult to  provide  an exact  number for  the                                                                   
fiscal  note. He  observed that  a  more competitive  program                                                                   
could  generate   more  business.  The  division   relies  on                                                                   
proceeds from the loan fund for their funding.                                                                                  
                                                                                                                                
Representative Foster  MOVED to report CSHB 203  (FIN) out of                                                                   
Committee with  the accompanying fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB  203  (FIN)  was REPORTED  out  of  Committee  with  "no                                                                   
recommendation"  and   a  new  fiscal  impact   note  by  the                                                                   
Department of Natural Resources.                                                                                                
HOUSE BILL NO. 180                                                                                                            
                                                                                                                                
     "An Act relating to the possession, manufacture, use,                                                                      
     display, or delivery of controlled substances while                                                                        
     children are present."                                                                                                     
                                                                                                                                
Co-Chair   Therriault  provided   members  with  a   proposed                                                                   
committee  substitute, work  draft  1-LS0188\K, dated  2/3/00                                                                   
(copy on file).                                                                                                                 
                                                                                                                                
Representative  J.   Davies  MOVED  to  ADOPT   the  proposed                                                                   
committee  substitute, work draft  1-LS0188\K, dated  2/3/00.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Mr.  Tibbles   noted  the   committee  substitute   addresses                                                                   
concerns  that were  expressed,  at the  Committee's  2/01/00                                                                   
hearing, that  there were inconsistencies  between provisions                                                                   
that  apply to  parents and  those  that apply  to an  adult.                                                                   
Standards of proof and the level  of difficulty to prove were                                                                   
not uniform. There  was also some duplication.  Sections 1, 2                                                                   
and 3  were deleted. These applied  to parents with  a minor.                                                                   
Verbs  such  as  allowing, aiding,  and  inducing  have  been                                                                   
picked up  and moved  into the provisions  that now  apply to                                                                   
all adults.  The new standard  is set at the  higher standard                                                                   
of  "knowing", which  applied to  parents. The  penalty of  a                                                                   
class A misdemeanor was retained.                                                                                               
                                                                                                                                
Co-Chair Mulder asked how difficult  a standard is "knowing".                                                                   
                                                                                                                                
ANNE CARPENETI,  ASSISTANT ATTORNEY  GENERAL, LEGAL  SERVICES                                                                   
SECTION, CRIMINAL DIVISION, DEPARTMENT  OF LAW explained that                                                                   
"knowing"  is  the standard  culpable  mental  state that  is                                                                   
presumed on a  criminal statute that doesn't  have a culpable                                                                   
mental state.                                                                                                                   
                                                                                                                                
Co-Chair  Mulder  concluded  that   there  is  a  distinction                                                                   
between  the implication  of knowing.  Ignorance  of the  law                                                                   
can't be  claimed because there  is an implication  that they                                                                   
law should be known.                                                                                                            
                                                                                                                                
Ms. Carpeneti  observed that culpable mental  states apply to                                                                   
what you do and what you intend.  "Knowing" is being aware of                                                                   
facts  surrounding what  is happening  and  knowing that  the                                                                   
result is likely of the behavior.                                                                                               
                                                                                                                                
Representative Grussendorf  referred to page 1,  line 11. Ms.                                                                   
Carpeneti clarified  that the  statute refers to  emancipated                                                                   
youths.                                                                                                                         
                                                                                                                                
Representative  J. Davies referred  to the use  of "unlawful"                                                                   
on page  2, line 1.  He questioned if  this is an  additional                                                                   
burden.  Ms.  Carpeneti  gave   examples  of  "knowing".  She                                                                   
clarified that it would have to  be proved that an individual                                                                   
knowingly takes a minor where  an unlawful possession occurs.                                                                   
Representative J.  Davies questioned if a person  could plead                                                                   
that they did not know it was against the law.                                                                                  
                                                                                                                                
Co-Chair  Therriault   concluded  that  the  second   use  of                                                                   
"unlawful" was not necessary.                                                                                                   
                                                                                                                                
Representative J.  Davies MOVED to Delete "unlawful"  on page                                                                   
2, line 1.                                                                                                                      
                                                                                                                                
Co-Chair Mulder noted  that it is not the intention  to allow                                                                   
another point for defense.                                                                                                      
                                                                                                                                
Ms. Carpeneti agreed with the deletion.                                                                                         
                                                                                                                                
There  being NO  OBJECTION, "unlawful"  was  deleted on  page                                                                   
2,line 1.                                                                                                                       
                                                                                                                                
Vice Chair  Bunde asked  for more  information regarding  the                                                                   
indeterminate   fiscal   note    from   the   Department   of                                                                   
Corrections.                                                                                                                    
                                                                                                                                
CANDACE   BROWER,    LEGISLATIVE   LIASON,    DEPARTMENT   OF                                                                   
CORRECTIONS  provided  information on  the  fiscal note.  She                                                                   
emphasized  that it  is difficult  to  quantify the  ultimate                                                                   
outcome in regards to incarceration.  The department suspects                                                                   
that there will be a fiscal cost.                                                                                               
                                                                                                                                
Vice  Chair Bunde  questioned  if  the legislation  would  be                                                                   
considered an aggravator in sentencing.                                                                                         
                                                                                                                                
Ms. Carpeneti explained  that it would be a  new offence. The                                                                   
legislation includes  possession, manufacture,  use, display,                                                                   
or delivery. There were four -  six of these cases prosecuted                                                                   
in Anchorage in the last year.                                                                                                  
                                                                                                                                
Co-Chair  Mulder questioned  how wide  a net the  legislation                                                                   
would cast. Ms. Carpeneti responded  that the legislation may                                                                   
be broadened by the addition of "possession."                                                                                   
                                                                                                                                
Ms.  Carpeneti explained  that a  person would  have to  have                                                                   
knowledge  that something is  happening. Co-Chair  Therriault                                                                   
concluded that if an individual  encounters a situation, with                                                                   
a  minor,   where   there  are   controlled  substances   and                                                                   
immediately removed  the minor  from the situation  that they                                                                   
would have an allowable defense.  Ms. Carpeneti observed that                                                                   
if  the person  were  unaware  of  the activity  before  they                                                                   
entered that  they would not have  a culpable state  of mind.                                                                   
They  would not  have  encouraged  a child  to  enter into  a                                                                   
situation where an illegal activity  is occurring. "Allowing"                                                                   
applies some  sort of knowledge,  as does to  "aid, encourage                                                                   
or induce"  a person. She emphasized  that the intent  is not                                                                   
to  prosecute a  person  who innocently  walks  into a  party                                                                   
where an illegal activity is occurring.                                                                                         
                                                                                                                                
Representative  J. Davies observed  that "immediate  physical                                                                   
presence" is the operative phrase.  He asked the significance                                                                   
of "immediate physical presence".                                                                                               
                                                                                                                                
Ms. Carpeneti interpreted that  the phase "immediate physical                                                                   
presence"  to imply  that  there is  no  barrier between  the                                                                   
child and  the activity. The activity  could take place  on a                                                                   
lawn  or park  bench. Immediate  physical  presence has  been                                                                   
interpreted in case law to allow  a visible connection. It is                                                                   
not defined in statute.                                                                                                         
                                                                                                                                
Co-Chair Therriault  questioned if  a judge would  instruct a                                                                   
jury on  the meaning of the  phase. Ms. Carpeneti  noted that                                                                   
it would depend  on the case, but that a prosecutor  may want                                                                   
the jury to be instructed.                                                                                                      
                                                                                                                                
Vice Chair  Bunde questioned  the application  of the  law if                                                                   
the  initiative  to  legalize  marijuana  were  enacted.  Ms.                                                                   
Carpeneti  noted that  prosecution  could  still occur  under                                                                   
federal law, but that the state  would probably not prosecute                                                                   
under this statute if it were not illegal under state law.                                                                      
                                                                                                                                
BLAIR  MCCUNE,  PUBLIC  DEFENDER'S OFFICE  pointed  out  that                                                                   
there are a  lot of controlled substances in  drug stores. He                                                                   
expressed  concern  that  the  removal  of  "unlawful"  could                                                                   
broaden the legislation to a level  where it could apply to a                                                                   
situation such as a drug store.                                                                                                 
                                                                                                                                
Co-Chair  Therriault  pointed  out that  "unlawful"  was  not                                                                   
removed from its first reference in the sentence.                                                                               
                                                                                                                                
REPRESENTATIVE JOHN COWDERY, SPONSOR  spoke in support of the                                                                   
legislation. He  acknowledged that the law already  exists in                                                                   
a broad sense, but emphasized  that his intent is to keep the                                                                   
law as tight as possible.                                                                                                       
                                                                                                                                
Co-Chair  Therriault  felt  that   the  committee  substitute                                                                   
struck  a balance  and  helped  clarify the  legislation.  He                                                                   
concluded that the net is still cast broadly.                                                                                   
                                                                                                                                
Representative Foster  MOVED to report CSHB 180  (FIN) out of                                                                   
Committee with  the accompanying fiscal note.  Representative                                                                   
G. Davis OBJECTED. He noted that  every additional crime adds                                                                   
expenses  to  the Department  of  Corrections,  Alaska  Court                                                                   
System and  Department of  Law, at the  same time  that their                                                                   
budgets are being reduced.                                                                                                      
                                                                                                                                
Representative   Grussendorf  expressed   concern  that   the                                                                   
legislation goes too far.                                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Austerman,  Bunde,   Davies,  Foster,  Grussendorf,                                                                   
          Phillips, Therriault, Mulder                                                                                          
OPPOSED: Davis, Moses                                                                                                           
                                                                                                                                
The MOTION PASSED (8-2).                                                                                                        
                                                                                                                                
CSHB 180 (FIN)  was REPORTED out of Committee with  a "do not                                                                   
pass"  recommendation and  a new  fiscal impact  note by  the                                                                   
Department of Administration,  a new zero fiscal  note by the                                                                   
Alaska Court System, and two new  indeterminate fiscal notes,                                                                   
one  by  the  Department  of   Corrections  and  one  by  the                                                                   
Department of Law.                                                                                                              
HOUSE BILL NO. 108                                                                                                            
                                                                                                                                
     "An Act relating to the use, operation, and regulation                                                                     
     of boats; establishing a uniform state waterway marking                                                                    
     system; and providing for an effective date."                                                                              
                                                                                                                                
REPRESENTATIVE BILL  HUDSON, SPONSOR testified  in support of                                                                   
HB 108.  He noted that he  introduced the bill as  the result                                                                   
of his personal  experience with search and  rescue and other                                                                   
activities as a  coastguardsman for more than  20 years. Over                                                                   
the last three years there have  been 75 recreational boating                                                                   
deaths. Alaska  is the  only state  without a boating  safety                                                                   
program.  Alaska's  fatality  rate  per capita  is  10  times                                                                   
higher  than  the  national average.  House  Bill  108  would                                                                   
establish   a  comprehensive   recreational  boating   safety                                                                   
program in Alaska  for the first time. The  legislation would                                                                   
transfer the  responsibilities and regulatory  authority over                                                                   
recreational boat  safety equipment  from the Coast  Guard to                                                                   
the State  of Alaska.  Additionally,  the State would  assume                                                                   
vessel registration  that is currently  being managed  by the                                                                   
Coast Guard.  The Coast  Guard will  continue to function  on                                                                   
the  coast.  The  Coast Guard  will  have  joint  enforcement                                                                   
responsibility wherever they are stationed.                                                                                     
                                                                                                                                
Representative  Hudson  noted  that  education  and  dockside                                                                   
safety  would  be   a  major  element  of  the   program.  He                                                                   
emphasized  that  75  percent  of all  the  money  goes  into                                                                   
boating safety  and education. He maintained  that prevention                                                                   
through  education does  work.  The legislation  will  assure                                                                   
that  federal  marine  fuel  taxes   that  Alaskans  pay  are                                                                   
redistributed to the state of  Alaska. Passage of HB 108 will                                                                   
bring approximately  $500 thousand dollars in  federal marine                                                                   
fuel  taxes  and  approximately   $600  thousand  dollars  in                                                                   
program receipts  to the  state of Alaska  each year.   These                                                                   
dollars will allow the state to  make a major push to educate                                                                   
the  boating public  about boating  safety, thereby  lowering                                                                   
the rate  of accidents  and death  on Alaska's waterways.  No                                                                   
new state  dollars are  needed for  the program. The  program                                                                   
will be paid by federal dollars  and registration fees. It is                                                                   
user friendly. The Department  of Motor Vehicles will conduct                                                                   
the  registration process,  utilizing  their current  systems                                                                   
(mail,  on-line,  and  in  person  registration  at  any  DMV                                                                   
office)  In   addition,  new   boat  dealers  will   also  be                                                                   
authorized to  register boats  at the point  of sale  for the                                                                   
convenience of the boating public.                                                                                              
                                                                                                                                
Representative Hudson  noted that the Committee  was provided                                                                   
with a proposed committee substitute,  work draft 1-LS0445\U,                                                                   
dated 2/3/00. (Copy on file).                                                                                                   
                                                                                                                                
Co-Chair  Mulder  MOVED  to  ADOPT   the  proposed  committee                                                                   
substitute, work draft 1-LS0445\U,  dated 2/3/00. There being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
MELINDA  HOFSTAD,   STAFF,  REPRESENTATIVE   HUDSON  reviewed                                                                   
changes made  by the committee  substitute. She noted  that a                                                                   
sunset  clause would  repeal the  law if the  state does  not                                                                   
receive federal funding for a statewide boating program.                                                                        
                                                                                                                                
Ms. Hofstad noted that training  responsibility and education                                                                   
aspects and evaluation of the  program are defined on page 8,                                                                   
lines 1 - 22.                                                                                                                   
                                                                                                                                
(TAPE CHANGE, HFC 00 - 25, SIDE 2)                                                                                              
                                                                                                                                
Ms.  Hofstad observed  that boats  that are  operated in  the                                                                   
state for  a period  not exceeding  90 consecutive  days that                                                                   
have  a  current,  valid  certificate  of  number  issued  by                                                                   
another state are exempted on  page 10, line 5. The intent is                                                                   
to exempt  previously  registered boats  that are brought  to                                                                   
Alaska   on   a   temporary   basis   from   another   state.                                                                   
Representative  Hudson emphasized that  every other  state in                                                                   
the union has a boating registration  program and these boats                                                                   
would  have to  comply to  meet Coast  Guard requirements  in                                                                   
other states.                                                                                                                   
                                                                                                                                
Ms. Hofstad  noted that  there would be  four boat  owners on                                                                   
the Alaska  Boating Safety  Advisory Council:  of these  some                                                                   
would be  powerboat owners and  some would be  non-power boat                                                                   
owners.                                                                                                                         
                                                                                                                                
Ms. Hofstad  reviewed further  changes made by  the committee                                                                   
substitute. The Alaska Boating  Safety Advisory Council would                                                                   
make  recommendations  to  the Department  of  Education  and                                                                   
Early Development. The Probable  Cause standard was added for                                                                   
a police  officer to board  a vessel. Inconsistencies  in the                                                                   
name  of the  Alaska  Boating  Safety Advisory  Council  were                                                                   
corrected.                                                                                                                      
                                                                                                                                
Representative  J. Davies expressed  concern with  the sunset                                                                   
provision.  He noted  that the  Director of  the Division  of                                                                   
Legislative  Finance   would  provide  notification   to  the                                                                   
revisor of statutes  that the state has not  received federal                                                                   
funding  for the boating  safety program.  He suggested  that                                                                   
the program could disappear without legislative knowledge.                                                                      
                                                                                                                                
Co-Chair Mulder  thought that  the revisor of  statutes would                                                                   
have  the  responsibility  to  inform  the  chairmen  of  the                                                                   
Legislative Council.  Representative Hudson pointed  out that                                                                   
the  sunset provision  would take  effect  90-days after  the                                                                   
date  the  director  of  the   Legislative  Finance  Division                                                                   
notifies the revisor  that in the previous state  fiscal year                                                                   
the state  did not receive  federal funding. He  thought that                                                                   
there would  be ample notification  and additional  review by                                                                   
the legislature.  Representative J.  Davies pointed  out that                                                                   
federal and state fiscal years differ.                                                                                          
                                                                                                                                
In response  to a  question by  Representative Phillips,  Ms.                                                                   
Hofstad explained  that the  Guppy Fleet is  a group  of sail                                                                   
boat  and powerboat  operators  out  of Whittier.  The  Guppy                                                                   
Fleet is in support of the legislation.                                                                                         
                                                                                                                                
MIKE  FOLKERTS,   CHAIR,  ALASKA   BOATING  SAFETY   ADVISORY                                                                   
COUNCIL, ANCHORAGE  testified  via teleconference in  support                                                                   
of HB  108. He emphasized that  HB 108 would  provide federal                                                                   
funding  and noted  that  the state  is 10  to  20 times  the                                                                   
national  average for  noncommercial  boating fatalities.  He                                                                   
maintained   that  the  educational   program  would   reduce                                                                   
fatalities.                                                                                                                     
                                                                                                                                
BARBARA  SANDS, DISTRICT  COMMANDER,  COAST GUARD  AUXILIARY,                                                                   
ANCHORAGE testified via teleconference  in support of HB 108.                                                                   
She read from written comments:                                                                                                 
                                                                                                                                
     While  the Auxiliary  in Alaska  continues to grow,  not                                                                   
     matter how  hard we work  to promote boating  safety, It                                                                   
     is not  enough. Each  year it  seems the boating  season                                                                   
     starts with boating fatalities  and accidents that could                                                                   
     hays  been prevented  with some  basic understanding  of                                                                   
     the  importance of  cold  water survival  and wearing  a                                                                   
     life jacket.                                                                                                               
                                                                                                                                
     Two critical  issues will be addressed with  the passage                                                                   
     of this bill. One, additional  funding will be available                                                                   
     to the  state for education  programs and two,  it makes                                                                   
     it a  law that there be  some basic safety  equipment on                                                                   
     boats such as life jackets.  You would be stunned at the                                                                   
     number of  people we have  talked to when  offering free                                                                   
     vessel  safety checks  that state,  "well we don't  need                                                                   
     that  equipment", or  "the  law doesn't  require it  and                                                                   
     nobody checks us anyway".                                                                                                  
                                                                                                                                
     With your  help, HB 108 will  bring more revenue  to the                                                                   
     State  of Alaska  to promote boating  safety. This  bill                                                                   
     carries a  positive fiscal note and returns  to Alaskans                                                                   
     federal fuel taxes that they  already pay, and keeps our                                                                   
     boating  registration fees  within Alaska. This  revenue                                                                   
     will  go  a  long way  towards  helping  expand  boating                                                                   
     safety education  in Alaska. Cold Water  Survival should                                                                   
     be something  that our  children are  taught at  a young                                                                   
     age as it is a way of life  here. The cost of prevention                                                                   
     is small compared to the  cost to the State In emergency                                                                   
     response,  and  to  Alaskan's  in  lost  income  due  to                                                                   
     accidents or worse, the loss of a loved one.                                                                               
                                                                                                                                
TIM  KELAHAN,   RESCUE  COMPANY,   FAIRBANKS  testified   via                                                                   
teleconference in  support of HB 108. He emphasized  that the                                                                   
funding  for  the  education   would  assist  in  search  and                                                                   
recovery  efforts and  reduce accidents.  He maintained  that                                                                   
when it  is not required by  law people decide it  is cheaper                                                                   
or  easier to  go  without (lifejackets).  He  noted that  60                                                                   
percent of drownings across the  nation are trained personnel                                                                   
that  are  attempting  to  rescue   others.  Education  would                                                                   
decrease fatalities.                                                                                                            
                                                                                                                                
LARRY  DISBROW, ADVISORY  BOARD, NORTHERN  AREA STATE  PARKS,                                                                   
FAIRBANKS testified via teleconference  in support of HB 108.                                                                   
He noted  that the  Board passed a  resolution in  support of                                                                   
the legislation.  He maintained  that Alaska needs  a boating                                                                   
safety bill. He emphasized the  number of unsafe acts that he                                                                   
has viewed while boating.                                                                                                       
                                                                                                                                
MARIE  SCHOLLE, CHIAR,  ALASKA  ADVISORY  COUNCIL ON  SAFETY,                                                                   
FAIRBANKS testified via teleconference  in support of HB 108.                                                                   
She emphasized that  the legislation will not  cost the state                                                                   
of  Alaska and  will  save lives.  She  has performed  vessel                                                                   
inspections  with the  Coast  Guard Auxiliary  and  witnessed                                                                   
individuals  with  the attitude  that  "nothing  is going  to                                                                   
happen  to  me" and  overloaded  boats.  Registration  brings                                                                   
responsibility  to  the  state and  boaters.  She  emphasized                                                                   
education and the  need for a presence in the  interior where                                                                   
the Coast Guard is absent.                                                                                                      
                                                                                                                                
BRAD SNOW, PRESIDENT FAIRBANKS  PADDLERS, FAIRBANKS testified                                                                   
via teleconference  in support of HB 108.  Fairbanks Paddlers                                                                   
is a group of  over 250 non-power boat owners.  He maintained                                                                   
that boaters are willing to pay  their fair share in order to                                                                   
assure  safety.   He  emphasized   that  fees  with   federal                                                                   
assistance  will pay for  the program.  Every state  that has                                                                   
implemented  a  boaters  safety  program has  seen  a  marked                                                                   
decrease in boater fatality.                                                                                                    
                                                                                                                                
ALAN  PARKS,   COMMERCIAL  FISHERMAN,  HOMER   testified  via                                                                   
teleconference  in  support of  HB  108.  He noted  that  the                                                                   
commercial  fishing   program  has  gone   through  extensive                                                                   
training. He gave details of how training saved his life.                                                                       
                                                                                                                                
JIM  LAWYER,   ASSESSOR,  KENAI   PENINSULA  BOROUGH,   KENAI                                                                   
testified via teleconference  in support of HB  108. He noted                                                                   
that  the  Borough passed  a  resolution  in support  of  the                                                                   
legislation. The  Borough will be aided in  their assessments                                                                   
by  the registration  provision  within  the legislation.  He                                                                   
noted  that  many  vessels  do   not  display  identification                                                                   
numbers.  He  reviewed  provisions in  the  legislation  that                                                                   
would assist in  the Borough's record keeping.  Records would                                                                   
be available  to municipalities without charge.  He concluded                                                                   
that   the  legislation   provides   adequate  provision   of                                                                   
registration,  ownership and  identification  of the  vessels                                                                   
located   throughout   the   state   of   Alaska.   Ownership                                                                   
information  will be  public record,  research costs  will be                                                                   
reduced and  all boats  within the Borough  would be  easy to                                                                   
identify,  allowing the  cost of services  to be  distributed                                                                   
equally.                                                                                                                        
                                                                                                                                
JERRY  DZUGAN,  DIRECTOR,  ALASKA   MARINE  SAFETY  EDUCATION                                                                   
ASSOCIATION  (AMSEA), SITKA testified  via teleconference  in                                                                   
support  of  HB  108.  He noted  that  AMSEA  has  created  a                                                                   
community based  marine safety instructors network  in Alaska                                                                   
that trains  over 7,000 people  a year. He noted  that Alaska                                                                   
has the highest  fatality rate in the nation and  is the only                                                                   
state  without  a  boating  safety  program.  He  noted  that                                                                   
although most  people would train their children,  adults are                                                                   
the ones that are responsible  for the operation of boats. He                                                                   
stressed that training reduces  fatalities and pointed to the                                                                   
reduction in commercial vessel fatalities.                                                                                      
                                                                                                                                
CLIFF JUDKINS,  ALASKA BOATING  ASSOCIATION, MATSU  testified                                                                   
via teleconference  in support of  HB 108. He noted  that the                                                                   
Association is the largest recreational  boater user group in                                                                   
the state with over 12,000 members.  He stressed the need for                                                                   
life jackets.                                                                                                                   
                                                                                                                                
PATRICK MEAD, CAPTIAN, UNIVERSITY  FAIRBANKS FIRE DEPARTMENT,                                                                   
FAIRBANKS testified via teleconference  in support of HB 108.                                                                   
He  noted that  the legislation  would assist  in search  and                                                                   
rescue missions.  He has been  involved in safety  education.                                                                   
He maintained  that the legislation provides  backbone to the                                                                   
instruction that can be given.                                                                                                  
                                                                                                                                
ALISON CARTER,  CHAIR, AD HOC COMMITTEE,  FAIRBANKS PADDLERS,                                                                   
FAIRBANKS testified via teleconference  in support of HB 108.                                                                   
There were very  few people anxious to register  their canoes                                                                   
and kayaks,  but they are  concerned with saving  lives. They                                                                   
support  the sunset provision  that extinguishes  the  law if                                                                   
less  than  75  percent  of federal  funds  and  the  boating                                                                   
registration fees  are used for boating safety  and education                                                                   
programs.                                                                                                                       
                                                                                                                                
BRUCE  CAMPBELL,  FAIRBANKS,   testified  via  teleconference                                                                   
voiced support  of the  bill. He  stressed the importance  of                                                                   
education in preventing fatalities.                                                                                             
                                                                                                                                
MARY  MARSHBURN,   DIRECTOR,  DIVISION  OF   MOTOR  VEHICLES,                                                                   
ANCHORAGE  acknowledged  that the  Division  has the  largest                                                                   
fiscal  note  on  the bill.  The  legislation  would  require                                                                   
registration  of powered and  non-powered paddleboats  on all                                                                   
state  waterways. The  Division of  Motor Vehicles  estimated                                                                   
that there would  be 175,000 boats to register.  The Division                                                                   
of Motor Vehicles would be working  with dealers and venders.                                                                   
The registration  system must be compatible with  the current                                                                   
one used  for vehicles and  titles and registration  for snow                                                                   
machines.  The fiscal note  contains start  up costs  for the                                                                   
first  two  years  of  the  bill  and  maintenance  costs  as                                                                   
indicated.  She  pointed  out   that  the  legislation  would                                                                   
generate  a positive fiscal  note after  the first  half-year                                                                   
startup.                                                                                                                        
                                                                                                                                
CHUCK HOSACK,  DEPUTY DIRECTOR,  DIVISION OF MOTOR  VEHICLES,                                                                   
ANCHORAGE provided information  relating to HB 108.The fiscal                                                                   
note requests positions to work  with registration and to set                                                                   
up dealers  as agents.  He noted that  the state  has 675,000                                                                   
registered vehicles  in the state. The legislation  would add                                                                   
175,000  boats  that  would be  registered  on  a  three-year                                                                   
cycle.  Each  year there would be 1/3 of  these registrations                                                                   
in   addition   to   current    vehicle   registrations.   He                                                                   
acknowledged that  the Division is  the best place to  do the                                                                   
registration.  Current  registration  means can  be  utilized                                                                   
such  as the  Internet  and phone  system.  The costs  should                                                                   
offset work increases.                                                                                                          
                                                                                                                                
Vice Chair  Bunde noted  that he  supported the  legislation.                                                                   
He commented that members of the  public that judge the state                                                                   
budget based on  gross numbers would not be  pleased with the                                                                   
addition.                                                                                                                       
                                                                                                                                
(TAPE CHANGE, HFC 00-26, SIDE 1)                                                                                                
                                                                                                                                
Co-Chair  Therriault   agreed  that  the   legislation  would                                                                   
increase the agency's budget.                                                                                                   
                                                                                                                                
In response to  a question by Co-Chair Therriault,  Mr. Hosac                                                                   
clarified  that boating  registration  would be  on the  same                                                                   
system used  for vehicle registration.  This is  available to                                                                   
law  enforcement  and  government   agencies  at  no  charge.                                                                   
Assessors can  obtain registration numbers for  the boats and                                                                   
their  owner  names  and  addresses.  The  Division  provides                                                                   
vehicle information at no charge to municipalities.                                                                             
                                                                                                                                
REAR ADMIRAL THOMAS  J. BARRETT, COMMANDER, 17TH  COAST GUARD                                                                   
DISTRICT,  UNITED STATES  COAST  GUARD,  JUNEAU testified  in                                                                   
support  of  HB  108.  He  stressed  that  there  is  a  high                                                                   
likelihood  that the program  would be  successful. He  noted                                                                   
that  deaths  from  boating fatalities  occur  all  over  the                                                                   
state.  Alaska's  fatality  rate  is 10  times  the  national                                                                   
average.  The federal  program has reduced  fatalities  by 50                                                                   
percent. The number  of recreational fatalities  is twice the                                                                   
number of  commercial fishing  related deaths. He  noted that                                                                   
deaths  in  this  industry  were   reduced  through  training                                                                   
efforts.  Under the  federal boating  safety legislation  the                                                                   
minimum federal  funding floor to  the states is  $59 million                                                                   
dollars a  year, guarantied for  five years. Congress  funded                                                                   
the program  at $79  million dollars  in the  past year.  The                                                                   
federal  government   recognized   that  states  could   more                                                                   
effectively  run  the  program,  but is  still  committed  to                                                                   
financial support,  as is the  Coast Guard. He  stressed that                                                                   
the Coast Guard's efforts would  not be reduced as the result                                                                   
of state programs.                                                                                                              
                                                                                                                                
In response  to a  question by  Co-Chair Therriault,  Admiral                                                                   
Barrett noted that Alaska is in  the second year of the five-                                                                   
year federal funding floor.                                                                                                     
                                                                                                                                
In  response  to  a  question  by  Co-Chair  Therriault,  Ms.                                                                   
Hofstad  noted that paddleboats  would  be registered  in the                                                                   
same manner as  other boats. They could register  on-line, at                                                                   
the Division of Motor Vehicles,  or at the point of purchase.                                                                   
Failure  to register  would be  a violation,  like a  traffic                                                                   
ticket.  Representative Hudson  clarified that  non-motorized                                                                   
boats under 10 feet in length  would not have to register. He                                                                   
explained that this is consistent with federal law.                                                                             
                                                                                                                                
In response  to a  question by  Representative G. Davis,  Co-                                                                   
Chair  Therriault  clarified that  boats  would  not have  to                                                                   
register  if they  are registered  in another  state and  are                                                                   
used in  the state  for less  than 90  consecutive days.  Ms.                                                                   
Hofstad stated that the intent  is to exempt boats from other                                                                   
states that come to Alaska.                                                                                                     
                                                                                                                                
Representative G.  Davis noted that the department  can adopt                                                                   
regulations for  training. He  expressed concern that  a test                                                                   
could  be required  for registration.  Representative  Hudson                                                                   
noted that it is not the intent to require training.                                                                            
                                                                                                                                
Representative  Phillips noted  that the legislative  revisor                                                                   
normally    goes   to    the    Legislative   Council    with                                                                   
recommendations. The  Legislative Council does  not generally                                                                   
go to the legislative revisor.                                                                                                  
                                                                                                                                
Representative  Phillips  emphasized  that  there  is  an  82                                                                   
percent fatality  rate in Alaska,  compared to a  6.4 percent                                                                   
fatality rate in the nation.                                                                                                    
                                                                                                                                
Representative   J.   Davies   spoke  in   support   of   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Co-Chair Therriault noted that there are three issues to be                                                                     
addressed: access to information, sunset trigger, and the                                                                       
90-day exemption.                                                                                                               
                                                                                                                                
HB 108 was heard and HELD in Committee for further                                                                              
consideration.                                                                                                                  
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting adjourned at 3:32 p.m.                                                                                              

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