02/14/2020 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB145 | |
| SB155 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 155 | TELECONFERENCED | |
| *+ | SB 145 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
February 14, 2020
3:30 p.m.
MEMBERS PRESENT
Senator Peter Micciche, Chair
Senator John Coghill, Vice Chair
Senator Click Bishop
Senator Cathy Giessel
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Joshua Revak
Senator Scott Kawasaki
COMMITTEE CALENDAR
SENATE BILL NO. 145
"An Act relating to the registration of commercial fishing
vessels; and providing for an effective date."
- HEARD & HELD
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 155
"An Act relating to exploration and mining rights; relating to
annual labor requirements with respect to mining claims and
related leases; relating to statements of annual labor; defining
'labor'; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 145
SHORT TITLE: REGISTRATION OF BOATS: EXEMPTION
SPONSOR(s): SENATOR(s) MICCICHE
01/21/20 (S) PREFILE RELEASED 1/17/20
01/21/20 (S) READ THE FIRST TIME - REFERRALS
01/21/20 (S) RES, FIN
02/14/20 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SB 155
SHORT TITLE: EXPLORATION & MINING RIGHTS; ANNUAL LABOR
SPONSOR(s): SENATOR(s) BISHOP
01/21/20 (S) READ THE FIRST TIME - REFERRALS
01/21/20 (S) RES, FIN
02/03/20 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/03/20 (S) RES, FIN
02/05/20 (S) RES AT 3:30 PM BUTROVICH 205
02/05/20 (S) Heard & Held
02/05/20 (S) MINUTE(RES)
02/14/20 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
KONRAD JACKSON, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Delivered the sponsor statement for SB 145,
on behalf of Senator Micciche.
RICHARD DAVIS, Member
Seafood Producers Co-op
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 145.
JERRY MCCUNE, Lobbyist
Cordova District Fishermen United
Juneau, Alaska
Cordova, Alaska
POSITION STATEMENT: Testified in support of SB 145.
JOANNE OLSEN, Interim Director
Division of Motor Vehicles
Department of Administration
Anchorage, Alaska
POSITION STATEMENT: Answered a question on derelict vessel
owners during the hearing on SB 145.
CHAD HUTCHINSON, Staff
Senate Majority Office
Juneau, Alaska
POSITION STATEMENT: Delivered a recap and sectional analysis of
SB 155 on behalf of the sponsor, Senator Bishop.
JAMES STEVENS, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Section 11 of SB
155.
BRONK JORGENSEN, Trustee
40 Mile Mining District; and
Chair, Alaska Minerals Commission
Tok, Alaska
POSITION STATEMENT: Testified in support of SB 155.
DAVID WRIGHT, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 155.
ACTION NARRATIVE
3:30:49 PM
CHAIR PETER MICCICHE called the Senate Resources Standing
Committee meeting to order at 3:30 p.m. Present at the call to
order were Senators Bishop, Coghill, Kiehl, Giessel, and Chair
Micciche.
SB 145-REGISTRATION OF BOATS: EXEMPTION
3:31:20 PM
CHAIR MICCICHE announced the consideration of SENATE BILL NO.
145, "An Act relating to the registration of commercial fishing
vessels; and providing for an effective date."
3:31:47 PM
CHAIR MICCICHE, speaking as sponsor of SB 145, referred to
Senate Bill 92, the derelict vessel bill that passed [in 2018].
He expressed dissatisfaction with the implementation of the bill
because it has created confusion. He suggested that SB 145 and
the companion bill found solutions to better manage vessel
registration. He said he is working on a committee substitute
for SB 145.
3:32:57 PM
KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, said SB 145 relates to the
exemption of vessel registration and unintended consequences of
Senate Bill 92, as the sponsor mentioned. During implementation
of the derelict vessel bill, the commercial fishing fleet
expressed their frustration.
MR. JACKSON paraphrased from the sponsor statement for SB 145:
SB 145 removes a duplicative and confusing
registration requirement for active commercial fishing
vessels, which was inadvertently created by the
passage of the derelict vessel bill, [Senate Bill 92],
in 2018.
Passage of [Senate Bill 92] was meant to improve
Alaska's prevention and management of derelict vessels
throughout coastal Alaska and on the State's major
river systems. The intent was not to create
duplicative registration requirements and duplicative
vessel numbering. SB 145 removes these duplicative
registration and numbering requirements by allowing
vessels registered with the Commercial Fisheries Entry
Commission (CFEC) to bypass DMV registration.
CFEC maintains a database of registered vessels that
provides necessary ownership and contact information,
which meets the intent of the derelict vessel bill.
Vessel licensure with the CFEC requires annual renewal
and already provides the necessary contact information
in a sharable, state database.
Alaska's commercial fishing vessels are key to
Alaska's fishermen's ability earn a living while
nourishing our state, the nation and the world with
quality seafood. Policies should support thriving
commerce by removing of unnecessary and duplicative
bureaucratic regulatory burdens whenever possible. SB
145 does exactly that.
I urge your support of this legislation which will
relieve an unnecessary burden from our commercial
fishing community and the Alaskan families the
industry supports.
MR. JACKSON reviewed the sectional analysis of SB 145. The bill
would amend AS 05.25.055(i) by adding new language, which read,
"a commercial fishing vessel that has a valid license issued
under AS 16.05.490 or 16.05.530;". These refer to statutes for
the Commercial Fisheries Entry Commission (CFEC) registration,
he said. Members' packets include examples of the Division of
Motor Vehicles (DMV) boat title application and registration
forms, the CFEC vessel license application, and license tags.
The U.S. Coast Guard provided a document on documentation and
tonnage of smaller commercial vessels. He assured members that
these vessels are adequately identified. He referred to page 2,
line 9 and recommended the committee consider amending the bill
to delete the word "fishing." Not all boats registered by the
CFEC are actively engaged in the fishing industry, such as
tenders. These vessels are registered and complying with the
intent of Senate Bill 92, related to derelict vessels.
3:36:38 PM
SENATOR COGHILL asked if this would effectively require two
registrations.
MR. JACKSON answered that this bill would remove one of the
duplicative registrations. Currently, vessel owners register
with the CFEC and with the DMV. This bill will remove the DMV
registration requirement.
CHAIR MICCICHE reminded members that the language [instituted by
Senate Bill 92] to help prevent derelict vessels was largely
ignored. This bill would solve both issues. Vessels that are in
the water for only 90 days are not a part of the derelict vessel
problem. Typically, derelict vessels are larger ones that are
left in the water and sink lower and lower until they are on the
bottom of the harbor. The vessel owner information is captured
through the CFEC, he said. If vessels are boarded and are not
registered, the vessels are out of compliance. Another problem
that arose was that the duplicate requirement resulted in owners
adhering extra numbers on their vessels. However, these vessels
were already adequately numbered. This meant that vessels must
have their CFEC registration, and if documented, a vessel number
on the hull. SB 145 will provide a better process while still
meeting the intent of the derelict vessel bill passed in 2018.
3:38:42 PM
SENATOR COGHILL said he understood there are boat licenses and
fishing vessel licenses, but this bill only relates to the
CFEC's vessel [registration].
MR. JACKSON answered yes. SB 145 relates only to vessel
registration.
SENATOR COGHILL noted that the Department of Administration,
Division of Motor Vehicles (DMV) fiscal note shows a reduction.
He asked whether this reduction will be offset by another fiscal
note.
CHAIR MICCICHE replied SB 145 mirrors the approach taken in the
House version of the bill. He explained that vessel owners could
register or renew their vessels by clicking on the registration
renewal form on the CFEC's website and be charged an $8 fee. He
said it is not necessary to have an offsetting fiscal note since
the revenues will not change. He said he favors this approach
since commercial vessel owners must pay the registration of
their vessels and permits in order to participate in any
commercial fishery, but owners would not need to pay an
additional, duplicate license. He envisioned that this process
would be seamless.
3:40:34 PM
SENATOR KIEHL said the sponsor described that a fishing vessel
would have a CFEC registration number to verify the vessel
registration. He related his understanding that this
registration will lapse unless the vessel owner registers it
under the provisions of Senate Bill 92.
CHAIR MICCICHE responded that the triangle decal indicates the
year and each year is uniquely colored and easy to recognize
from a distance. He described another option for those who
previously commercially fished. He related that a friend
converted his fishing vessel to a pleasure boat. When his
registration expired, he re-registered it with the DMV, so a
person would still have that option, he said.
3:42:37 PM
CHAIR MICCICHE opened public testimony on SB 145.
3:42:56 PM
RICHARD DAVIS, Member, Seafood Producers Co-op (SPC), Juneau,
Alaska, spoke in support of SB 145. He said the SPC represents
over 500 fishermen who collectively harvest and market their
fish together. The 200 members who have documented vessels would
be required by provisions in Senate Bill 92 to pay duplicate
registration fees. Currently, involvement in Alaska commercial
fisheries requires the vessel owner to register with the U.S.
Coast Guard and the CFEC to provide information on the boat and
its owner to obtain an annual vessel license. He asked members
to please pass the bill to remove the duplicate requirement
since the information is readily available to harbormasters or
port managers.
3:45:27 PM
JERRY MCCUNE, Lobbyist, Cordova District Fishermen United,
Cordova, Alaska, spoke in support of SB 145. He said the current
vessel registration process is duplicative and complicated. In
Cordova, the DMV is only open two days a week. When he went to
register at the DMV, the office did not have any decals so he
advised the Alaska State Troopers to make sure the troopers
would not issue tickets to Cordova fishermen. The database is
online so anyone can access the registered vessel information.
SB 145 will fix this issue, he said. He remarked that no one
wants to stand in line at the DMV to get another set of numbers.
3:46:50 PM
CHAIR MICCICHE said he would keep public testimony open on SB
145.
3:47:16 PM
SENATOR COGHILL acknowledged that the bill provides a remedy for
a specific issue. He asked how many vessels had registered. The
goal of Senate Bill 92 was to identify vessels that would
potentially become derelict vessels and provide the ability to
locate the vessel owners.
3:48:12 PM
JOANNE OLSEN, Interim Director, Division of Motor Vehicles
(DMV), Department of Administration, Anchorage, Alaska, answered
a question on derelict vessel owners. She said that the DMV does
not track the vehicles that are derelict. The DMV tracks when
people come in to register their vehicles.
SENATOR COGHILL said he would talk to the sponsor about the
derelict vessel issue.
3:48:32 PM
CHAIR MICCICHE said he has data that could be shared at the next
committee meeting.
3:48:44 PM
CHAIR MICCICHE announced that SB 145 would be held over.
3:49:08 PM
At ease.
SB 155-EXPLORATION & MINING RIGHTS; ANNUAL LABOR
3:49:27 PM
CHAIR MICCICHE reconvened the meeting and announced the
consideration of SENATE BILL NO. 155, "An Act relating to
exploration and mining rights; relating to annual labor
requirements with respect to mining claims and related leases;
relating to statements of annual labor; defining 'labor'; and
providing for an effective date."
CHAIR MICCICHE said SB 155 was introduced on February 5th, when
the committee heard a presentation and took invited testimony.
He said it was his intention to take public testimony today.
3:50:04 PM
CHAD HUTCHINSON, Staff, Senate Majority Office, Juneau, Alaska,
said that the purpose of SB 155 is to ensure that miners are
able to produce. This bill would update the statutes to allow
them to do so. The genesis of the bill starts with Section 1 of
the Constitution of the State of Alaska, Article VIII. He
paraphrased Section 1, that resources must be developed for the
maximum use consistent with the public interest. Article VIII,
Section 11, relates to mineral interests and continuation of
mineral interests in the state. It requires that in order to
continue mineral rights, annual labor must be performed and
fees, rents, royalties must be paid.
He provided a brief recap of the sectional analysis of SB 155.
The first three sections relate to qualifications. Sections 4
and 5 relate to mining claims, including the Meridian, Township,
Range, Section, and Claim (MTRSC) system and amendments to
mining claims. Sections 6-9 outline guidelines and procedures
for annual labor. The definition of labor was updated in Section
10. The definition of abandonment is updated in Section 11.
Section 12 clarifies transfers from an unqualified person to a
qualified person with an interest in a mining claim. He said
that Section 13 relates to mining claim locations, Section 14
relates to applicability, Section 15 relates to transition
process, and Section 16 provides the effective date.
3:52:12 PM
CHAIR MICCICHE opened public testimony on SB 155.
3:52:33 PM
JAMES STEVENS, representing self, Anchorage, Alaska, testified
in opposition to Section 11 of SB 155. He said he attended the
hearing on February 5th and it raised some unpleasant memories
of experiences he has had in his dealings with mineral
exploration companies. He said that in addition to protecting
the interests of the miners, the bill needs to protect the
interests of Alaskan businesses that work to support mineral
exploration in the state. For the past 40 years he has been a
proponent of rural economic development and resource development
in rural Alaska.
He spoke in opposition to the deletion in Section 11, on page 9,
line 2, which read, "[A STATEMENT OF ANNUAL LABOR THAT DOES NOT
ACCURATELY SET OUT THE ESSENTIAL FACTS IS VOID AND OF NO
EFFECT.] He said this language allows the Department of Natural
Resources (DNR) to declare labor null and void, even though
Alaskan businesses need administrative remedies, besides legal
remedies to protect themselves from unscrupulous junior mining
companies.
MR. STEVENS related his experience to illustrate his point.
About eight or nine years ago, his family worked to support
mineral exploration on some claims north of the Pebble deposit.
The company his business supported amassed about $350,000 in
bills under Mr. Steven's name. This included invoices from air
taxis, helicopters, air freight companies, laborers and other
subcontractors who were engaged and never paid. Yet, this
company had the audacity to list the value of all that labor on
their affidavit of annual labor. When he asked DNR to enforce
that portion of existing law, the department said it did not
have explicit authorization to do so.
MR. STEVENS said this event has followed him for the past eight
years. The companies not paid blame him, yet the mining company
was able to retain its mining claims based on its disclosure
that listed labor, even though it was unpaid labor. The state
should address this clearly and explicitly. He suggested that
the committee should add language to strengthen protections for
Alaska businesses that support this vital industry. He thanked
the committee for the opportunity to testify.
3:56:14 PM
CHAIR MICCICHE asked him to forward his written testimony.
3:56:42 PM
BRONK JORGENSEN, Trustee, 40 Mile Mining District, and Chair,
Alaska Minerals Commission, Tok, Alaska, said he is a lifelong
Alaskan. On behalf of the Alaska Mineral Commission, he spoke in
support of SB 155 to ensure that mineral tenure laws are
modernized. It was one of the priorities of the commission in
2019 and 2020. The commission's role is to recommend strategy to
the legislature and governor to mitigate constraints on mineral
development in Alaska.
MR. JORGENSEN also offered his support for SB 155, speaking as
trustee the 40 Mile Mining District. He related that many placer
miners have had significant issues with annual labor reporting
in what are known as fatal flaws. He characterized this as a
complicated issue, one that creates great stress for placer
miners, whether or not they lose their mining claims. This bill
would put labor affidavit requirements clearly in statute. He
related his experiences with fatal flaws, including one possible
error made by the original claim owner in the early 1990s. In
2011, he also made an error and was lucky that no one over-
staked his claims. He was able to re-stake his ground at a
significant cost, but he did not lose his claims. Most
importantly, the bill would provide authority for DNR to send
notices to those with mining claims to correct clerical errors
prior to receiving notices of abandonment.
MR. JORGENSEN said SB 155 is of utmost importance to the 40 Mile
Mining District. He urged the committee to pass the bill.
4:00:15 PM
DAVID WRIGHT, representing self, Fairbanks, Alaska, said he and
his partners are small-scale placer miners who have held many
mining claims. In 2010, 2011, and 2012 two claims were auctioned
to other companies. In 2013, he discovered that the affidavits
of annual labor had fatal flaws for both projects. Since no one
had over-staked the claims, he hired a helicopter to re-stake
one claim, and he re-staked the other from the ground. This came
at great expense, but it was better than losing the claims. He
said he supports SB 155 because a clerical error should not be a
reason to lose a claim. He agreed with [Mr. Steven's] testimony
that some mechanism should also protect businesses. In closing,
he said he would like to see SB 155 pass to correct the problem
of clerical errors being a potential avenue to lose claims.
4:02:50 PM
CHAIR MICCICHE said he would keep public testimony open on SB
155.
[SB 155 was held in committee].
4:03:42 PM
There being no further business to come before the committee,
Chair Micciche adjourned the Senate Resources Standing Committee
meeting at 4:03 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 155 AMA Testimony on DNR Fiscal Note 02.13.2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 155 |
| SB 145 ver. A.pdf |
SRES 2/14/2020 3:30:00 PM SRES 2/24/2020 3:30:00 PM |
SB 145 |
| SB 145 Sponsor Statement 02.12.2020.pdf |
SRES 2/14/2020 3:30:00 PM SRES 2/24/2020 3:30:00 PM |
SB 145 |
| SB 145 Fiscal Note - DOA-DMV-02-07-2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 Fiscal Note - DPS-AWT-02-07-2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 CFEC Current DMV Vessel Registration Docs & FAQ 02.13.2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 CFEC Vessel Licensing Forms 02.12.2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 USCG Brochure Documentation and Tonnage 02.12.2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 CFEC MOCK UP Vessel Packet, 2020.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |
| SB 145 CFEC NEW 2020 Commercial Fishing Vessel Licensing Overview.pdf |
SRES 2/14/2020 3:30:00 PM |
SB 145 |