Legislature(2021 - 2022)BARNES 124

03/23/2021 01:30 PM House TRANSPORTATION

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Audio Topic
01:33:56 PM Start
01:34:59 PM Confirmation Hearing(s): Board of Marine Pilots
01:49:40 PM SJR9
02:09:39 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Consideration of Governor's Appointees: TELECONFERENCED
Board of Marine Pilots - Lucas Hasenbank &
Richard Harris
-- Public Testimony --
+ SJR 9 URGE EXEMPTION FOR CRUISE SHIPS TELECONFERENCED
Moved CSSJR 9(L&C) Out of Committee
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
            HOUSE TRANSPORTATION STANDING COMMITTEE                                                                           
                         March 23, 2021                                                                                         
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Grier Hopkins, Chair                                                                                             
Representative Sara Hannan, Vice Chair                                                                                          
Representative Ivy Spohnholz                                                                                                    
Representative Harriet Drummond                                                                                                 
Representative Tom McKay                                                                                                        
Representative Kevin McCabe                                                                                                     
Representative Mike Cronk                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S): BOARD OF MARINE PILOTS                                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
CS FOR SENATE JOINT RESOLUTION NO. 9(L&C)                                                                                       
Urging the  United States  Congress to  exempt cruise  ships from                                                               
certain provisions  of the Passenger  Vessel Services  Act (PVSA)                                                               
and other  applicable provisions  of federal  law for  the period                                                               
during which Canadian  ports are closed to  cruise ships carrying                                                               
more  than 100  people; and  urging the  President of  the United                                                               
States not to  fine or take actions against  cruise ships sailing                                                               
to the state.                                                                                                                   
                                                                                                                                
     - MOVED CSSJR 9(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SJR  9                                                                                                                  
SHORT TITLE: URGE EXEMPTION FOR CRUISE SHIPS                                                                                    
SPONSOR(s): SENATOR(s) KIEHL                                                                                                    
                                                                                                                                
02/10/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/21       (S)       TRA, L&C                                                                                               
02/18/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/18/21       (S)       Moved SJR 9 Out of Committee                                                                           
02/18/21       (S)       MINUTE(TRA)                                                                                            
02/19/21       (S)       TRA RPT 2DP 1NR                                                                                        
02/19/21       (S)       DP: MYERS, KIEHL                                                                                       
02/19/21       (S)       NR: SHOWER                                                                                             
03/03/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/03/21       (S)       Scheduled but Not Heard                                                                                
03/05/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/05/21       (S)       Heard & Held                                                                                           
03/05/21       (S)       MINUTE(L&C)                                                                                            
03/15/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/15/21       (S)       Moved CSSJR 9(L&C) Out of Committee                                                                    
03/15/21       (S)       MINUTE(L&C)                                                                                            
03/17/21       (S)       L&C RPT CS  4DP SAME TITLE                                                                             
03/17/21       (S)       DP:   STEVENS,    GRAY-JACKSON,   REVAK,                                                               
                         HOLLAND                                                                                                
03/19/21       (S)       TRANSMITTED TO (H)                                                                                     
03/19/21       (S)       VERSION: CSSJR 9(L&C)                                                                                  
03/20/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/20/21       (H)       TRA                                                                                                    
03/23/21       (H)       TRA AT 1:30 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LUCAS HASENBANK                                                                                                                 
Appointee                                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Presented and answered questions during the                                                              
meeting.                                                                                                                        
                                                                                                                                
RICK HARRIS                                                                                                                     
Appointee                                                                                                                       
City & State                                                                                                                    
POSITION STATEMENT:  Presented and answered questions during the                                                              
meeting.                                                                                                                        
                                                                                                                                
SENATOR JESSE KIEHL                                                                                                             
Senator                                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented SJR 9.                                                                       
                                                                                                                                
ANDREW CREMATA, Mayor                                                                                                           
Skagway, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of SJR 9.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:56 PM                                                                                                                    
                                                                                                                                
CHAIR  GRIER HOPKINS  called  the  House Transportation  Standing                                                             
Committee  meeting  to  order  at   1:33  p.m.    Representatives                                                               
Drummond, Cronk, Hannan, McCabe,  McKay, and Hopkins were present                                                               
at the  call to order.   Representative Spohnholz arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
^CONFIRMATION HEARING(S): Board of Marine Pilots                                                                                
        CONFIRMATION HEARING(S): Board of Marine Pilots                                                                     
                                                                                                                              
1:34:59 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS  announced that the  first order of  business would                                                               
be confirmation hearings for the Board of Marine Pilots.                                                                        
                                                                                                                                
1:35:28 PM                                                                                                                    
                                                                                                                                
CHAIR HOPKINS informed  the committee the Board  of Marine Pilots                                                               
(BMP) appointees were appointed by  the governor and confirmed by                                                               
the Alaska  State Legislature.   He said  the board  consisted of                                                               
seven members,  six of whom  were appointed by the  governor, two                                                               
of  whom  were  licensed  pilots,  two of  whom  were  agents  or                                                               
managers of vessels, and two of  whom were members of the public,                                                               
plus  the   Department  of   Commerce,  Community   and  Economic                                                               
Development commissioner  or their designee.   Not more  than one                                                               
pilot or  one agent should be  from any one judicial  district on                                                               
the board;  all must be  Alaska residents, he shared.   Excepting                                                               
the   commissioner's  designee,   members   were  appointed   for                                                               
staggered  terms of  four years,  and members  shall serve  until                                                               
they are replaced  or resign.  The board adopts  members to carry                                                               
out  its  mission to  provide  efficient  and competent  pilotage                                                               
services and meets three times per year, he imparted.                                                                           
                                                                                                                                
1:36:59 PM                                                                                                                    
                                                                                                                                
LUCAS HASENBANK, Appointee, informed the  committee he was up for                                                               
the agent representative  spot and informed the  committee he had                                                               
obtained  his undergraduate  degree  and his  Master of  Business                                                               
Administration from the  University of South Dakota.   Has served                                                               
as President of  Alaska Maritime Agencies since  2003, he stated.                                                               
He  shared he  had  a  good working  relationship  with both  the                                                               
Southwest Pilots and  the Alaska Marine Pilots  Associations.  He                                                               
added he  has been a regular  at BMP board meetings  for the past                                                               
10  years,  that  he  has  served on  the  Prince  William  Sound                                                               
Regional Citizens Awareness Council  for three-plus years, was an                                                               
Alaska  State Chamber  of Commerce  representative, and  acted as                                                               
Agent Representative for the Cook Inlet Harbor Safety Committee.                                                                
                                                                                                                                
1:39:41 PM                                                                                                                    
                                                                                                                                
RICK HARRIS, Appointee,  said he was up for  reappointment to the                                                               
Board of  Marine Pilots for  a second term  as one of  the public                                                               
members  on  the  board.     He  shared  his  work  at  SeaAlaska                                                               
Corporation as  a Senior  Executive from  1980 until  2014, which                                                               
afforded him experience in both  Natural Resources Management and                                                               
Public  Policy  Development,  crafting  both  state  and  federal                                                               
regulations.   Mr.  Harris  came to  Alaska in  1973  to work  in                                                               
aquaculture, he  shared.   He is  also an  army veteran  with the                                                               
rank of  sergeant, he added.   The BMP played a  critical role in                                                               
SeaAlaska's timber  operations, he shared.   His family  has also                                                               
worked in the cruise industry as  port agents and ship agents, he                                                               
shared.   Mr. Harris  would bring  to the BMP  a public  voice to                                                               
ensure rigorous control  and safe passage of vessels,  as well as                                                               
knowledge of regulatory and budget issues.                                                                                      
                                                                                                                                
1:43:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SPOHNHOLZ  asked why Mr. Harris  was interested in                                                               
serving on the BMP.                                                                                                             
                                                                                                                                
MR. HARRIS replied he was retired  and wanted to give back to the                                                               
community; he  added with  his experience  with marine  pilots as                                                               
well as with the cruise industry, he was a good fit.                                                                            
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ asked  him  to share  some  of the  big                                                               
issues he has worked on over the years.                                                                                         
                                                                                                                                
MR.  HARRIS replied  recently foreign  pleasure  crafts or  large                                                               
private  yachts must  have  pilots  on board  or  must apply  for                                                               
exemptions with  requisite knowledge and skilled  people on board                                                               
vessels,  and he  helped clarify  how waivers  worked to  make it                                                               
easier for the state to determine who qualified for exemption.                                                                  
                                                                                                                                
1:44:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HOPKINS opened  public  testimony  on the  confirmation                                                               
hearing  for appointees  to the  Board of  Marine Pilots.   After                                                               
ascertaining  that there  was no  one who  wished to  testify, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
1:45:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN  commented  Mr.  Hasenbank's  "landlocked"                                                               
alma mater  ought to  be proud  their MBA  was serving  Alaska so                                                               
well.   She also pointed  out that there  was still a  vacancy on                                                               
the BMP after these confirmation hearings.                                                                                      
                                                                                                                                
1:46:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  made a motion to  advance the confirmation                                                               
of Lucas  Hasenbank and Richard  Harris, appointees to  the Board                                                               
of Marine  Pilots, to  the joint session  for consideration.   He                                                               
reminded  the  committee  that   signing  the  reports  regarding                                                               
appointments  to  boards  and  commissions  in  no  way  reflects                                                               
individual members'  approval or  disapproval of  the appointees,                                                               
and the nominations are merely  forwarded to the full legislature                                                               
for confirmation or rejection.                                                                                                  
                                                                                                                                
1:47:09 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 1:47 p.m. to 1:49 p.m.                                                                       
                                                                                                                                
             SJR  9-URGE EXEMPTION FOR CRUISE SHIPS                                                                         
                                                                                                                                
1:49:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HOPKINS  announced that  the  final  order of  business                                                               
would be  CS FOR SENATE  JOINT RESOLUTION NO. 9(L&C),  Urging the                                                               
United  States  Congress  to exempt  cruise  ships  from  certain                                                               
provisions  of  the  PVSA  and  other  applicable  provisions  of                                                               
federal  law  for the  period  during  which Canadian  ports  are                                                               
closed to cruise ships carrying  more than 100 people; and urging                                                               
the President  of the United States  not to fine or  take actions                                                               
against cruise ships sailing to the state.                                                                                      
                                                                                                                                
1:49:51 PM                                                                                                                    
                                                                                                                                
SENATOR JESSE  KIEHL, Senator,  Alaska State  Legislature, shared                                                               
in 2019  Alaska had 2.2m  tourists, most of  whom came in  on big                                                               
ships.  The  tourists were responsible for about  $4B in economic                                                               
activity across Alaska, he shared.   In 2020 the number was close                                                               
to  zero,  he  shared,  putting small-  and  medium-sized  Alaska                                                               
businesses  and  their  employees  at great  risk.    There  were                                                               
federal  payroll  protection  programs,  disaster  loans,  Alaska                                                               
CARES Act  money, and unemployment  assistance; yet, if  the 2021                                                               
numbers looked similar, there would  be very few businesses which                                                               
would survive.                                                                                                                  
                                                                                                                                
SENATOR KIEHL stated in 2021  with the Canadian closure, a series                                                               
of  American  federal laws  were  positioned  to prevent  another                                                               
cruise ship season.  In  effect, with big ships' obligatory stops                                                               
in Canada  on their way to  Alaska canceled, SJR 9  would ask for                                                               
temporary  reprieve  during  the  pandemic  and  closed  Canadian                                                               
waters.     He  noted   SJR  9  had   been  developed   with  the                                                               
Congressional delegation;  that all three members  had introduced                                                               
legislation that  would do what  SJR 9 requested.   If SJR  9 did                                                               
not pass, it would ensure prohibitive  laws did not pass.  It did                                                               
not  ask for  any  breaks  or shortcuts  on  COVID-19 safety,  he                                                               
pointed out.  The Center for  Disease Control (CDC) put out a 40-                                                               
page manual for COVID-19 mitigations  should sailing again become                                                               
safe.  There were safe ways for cruising to resume, he added.                                                                   
                                                                                                                                
1:55:14 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HOPKINS  thanked the  sponsor  for  bringing forth  the                                                               
statewide issue.                                                                                                                
                                                                                                                                
1:55:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked about  the similarity between  SJR 9                                                               
and House Bill 13.                                                                                                              
                                                                                                                                
SENATOR KIEHL said  the only change was  some clarifying language                                                               
in the second resolved clause  to clarify no enforcement would be                                                               
taken  against  ships under  the  Passenger  Vessel Services  Act                                                               
(PVSA).                                                                                                                         
                                                                                                                                
1:56:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CRONK asked when  Congress would "deal with this,"                                                               
and  if getting  ships to  Juneau in  the summer  of 2021  were a                                                               
possibility.                                                                                                                    
                                                                                                                                
SENATOR KIEHL  said he could not  predict Congress.  At  one time                                                               
he  thought the  provisions  could have  been  inserted into  the                                                               
American  Rescue  Act because  it  was  done through  the  budget                                                               
reconciliation  process   and  was  not  an   order,  he  shared.                                                               
Congressman Don  Young originally  introduced legislation  on the                                                               
matter, he stated, and shared  he thought the solution "elegant."                                                               
There are  a couple  potential vehicles in  which to  insert this                                                               
resolution, he  said.  There  was no date,  he said.   The cruise                                                               
lines  needed to  make decisions;  the CDC  was still  in partial                                                               
shutdown mode;  and it would take  90 days "from the  word go" to                                                               
get paying passengers  on board, so there was  very little chance                                                               
before mid- or late-July.                                                                                                       
                                                                                                                                
REPRESENTATIVE CRONK said he supported SJR 9.                                                                                   
                                                                                                                                
1:59:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DRUMMOND asked if  other states impacted had asked                                                               
for similar dispensation; for example,  Washington, where many of                                                               
the cruise ships originated.                                                                                                    
                                                                                                                                
SENATOR KIEHL said he had  been working with the Washington State                                                               
delegation and  several members of  their legislature,  but there                                                               
had  been no  resolution  from Washington.    There were  several                                                               
issues, and the Port of  Seattle would see significant impacts if                                                               
the  big ships  didn't begin  any voyages  there this  summer, he                                                               
added.                                                                                                                          
                                                                                                                                
2:00:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HOPKINS opened public testimony.                                                                                       
                                                                                                                                
2:00:45 PM                                                                                                                    
                                                                                                                                
ANDREW CREMATA, Mayor of Skagway,  testified in support of SJR 9.                                                               
Mr. Cremata  said the  PVSA presented  a "significant  hurdle" to                                                               
cruises  resuming their  ability  to pay  visits  to Skagway  and                                                               
described  the  dire  situation  in that  community  due  to  the                                                               
pandemic and  subsequent loss  of cruise  ship revenue  income to                                                               
the tune of  $160m in 2020.   The loss of the  2021 cruise season                                                               
would mean 2.5 years in the  best-case scenario.  Has sent letter                                                               
of  support  of SJR  9  to  federal  delegation and  spoken  with                                                               
legislators,  he  stated.   He  has  also encouraged  independent                                                               
traffic, but  the border is closed  for many of the  same reasons                                                               
Canada's were,  he said.   Other port communities  were affected,                                                               
as is Denali Borough, he imparted.                                                                                              
                                                                                                                                
2:03:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN   asked  about  the  total   revenue  loss                                                               
compared to total of $160m in 2020.                                                                                             
                                                                                                                                
MR. CREMATA responded  it was almost an entire  year's income and                                                               
that property  taxes even  had to be  waived for  businesses that                                                               
couldn't afford  to pay.   Going into  2021 budget cycle  with 6%                                                               
revenue projected,  which is optimistic.   There was  still sales                                                               
tax revenue, but the significance  of the impact wasn't shown, he                                                               
said.  It was 96% - 98% percent of revenue, he shared.                                                                          
                                                                                                                                
2:04:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HOPKINS asked  if Skagway  had a  similar problem  with                                                               
allocations based on population like Denali.                                                                                    
                                                                                                                                
MR.  CREMATA responded  CARES Act  money  was put  back into  the                                                               
hands of  residents and  created a  grant program  for businesses                                                               
out of sales tax.   He emphasized SJR 9 was  a matter of survival                                                               
for the community of Skagway.                                                                                                   
                                                                                                                                
2:06:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HOPKINS closed public testimony on SJR 9.                                                                              
                                                                                                                                
2:06:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HANNAN moved  to report  SJR 9  out of  committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  SJR 9 moved out  of the House                                                               
Transportation Standing Committee.                                                                                              
                                                                                                                                
2:07:04 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 2:07 p.m. to 2:09 p.m.                                                                       
                                                                                                                                
2:09:39 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Transportation Standing  Committee meeting was adjourned  at 2:09                                                               
p.m.                                                                                                                            

Document Name Date/Time Subjects
HTRA Confirmation Hearing - Board of Marine Pilots - Lucas Hasenbank 3.23.2021.pdf HTRA 3/23/2021 1:30:00 PM
Confirmation Hearing
HTRA Confirmation Hearing - Board of Marine Pilots - Richard Harris 3.23.2021.pdf HTRA 3/23/2021 1:30:00 PM
Confirmation Hearing
SJR 9 Letters of Support 2021-03-15.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Explanation of Changes.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Letters of Opposition 2021-03-15.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Sponsor Statement.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Supporting Document KTOO Article on Federal Legislation.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 ver. B.PDF HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Zero Fiscal Note.PDF HTRA 3/23/2021 1:30:00 PM
SJR 9
SJR 9 Letter of Support Fairbanks Chamber 3.23.2021.pdf HTRA 3/23/2021 1:30:00 PM
SJR 9