Legislature(2021 - 2022)BARNES 124
04/15/2022 09:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Board of Veterinary Examiners | |
| HB405 | |
| HB406 | |
| HB407 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 405 | TELECONFERENCED | |
| *+ | HB 406 | TELECONFERENCED | |
| *+ | HB 407 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 174 | TELECONFERENCED | |
HB 407-PROHIBIT COMMERCE WITH RUSSIA
10:07:06 AM
CO-CHAIR SPOHNHOLZ announced that the final order of business
would be HOUSE BILL NO. 407, "An Act relating to commerce with
Russia; relating to the use of the ports in the state; and
providing for an effective date."
CO-CHAIR SPOHNHOLZ noted that HB 407 is another bill in the
suite of legislation that the committee is considering from the
House Labor and Commerce Standing Committee.
10:07:14 AM
CO-CHAIR FIELDS introduced HB 407 on behalf of the House Labor
and Commerce Standing Committee, sponsor. He stated that HB 407
would prohibit the importation of Russian goods specifically by
using Alaska's powers of state to prohibit Russian boats from
docking at Alaskan ports and offloading goods and materials. He
noted that the late Alaska Congressman Don Young introduced an
important federal bill on this point, and that Congress has
taken swift action to assure that there is strong federal law
prohibiting the fueling of the Russian war machine through
Russian imports. He further noted that some of the assets of
some Russian oligarchs who were enriching Putin have been seized
by other nations. He recognized that there is a lot of commerce
in Alaska with Asia and Europe and said longshoreman across the
U.S. have on their own refused to unload Russian products at
ports. Alaska as a state should support democracy and the free
people of Ukraine, he said, and HB 407 will ensure that Alaskans
don't inadvertently provide financing to Putin and his
aggressive regime.
10:08:49 AM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, provided the sectional analysis for HB 407 on
behalf of the House Labor and Commerce Standing Committee,
sponsor. He paraphrased from the document provided in the
committee packet titled "Sectional Analysis House Bill 407
Version A," which read as follows [original punctuation
provided]:
* Section 1. AS 30.50 is amended by adding a new
section to prohibit all Russian ships from docking at
ports in Alaska.
This includes Russian-flagged vessels, ships that are
crewed by Russian nationals, and ships that carry
Russian cargo.
* Sec. 2. AS 45.45 is amended by adding a new section
that bans all imports and exports with Russia,
including seafood, alcohol, and oil & gas.
* Sec. 3. The uncodified law of the State of Alaska is
amended by adding a new section that permits specific
trade with Russia, including the docking of specific
vessels, if contracts were signed prior to the
effective date.
* Sec. 4. AS 30.50.030 and AS 45.45.940 are repealed.
Section 1 & 2 of this bill are automatically repealed
after 10 years.
* Sec. 5. The uncodified law of the State of Alaska is
amended by adding a new section that automatically
repeals the provisions of this bill banning commerce
with Russia, if the current security risk is resolved
and the U.S. Government lifts its sanctions on Russia.
* Sec. 6. If, under sec. 5(a) of this Act, sec. 4 of
this Act takes effect, it takes effect on the earlier
of either July 1, 2032; or the day on which DCCED
commissioner revises the statutes under Section 5(b)
Sec. 7. Except as provided in sec. 6 of this Act, this
Act takes effect immediately under 3 AS 01.10.070(c).
Provides for an effective date.
MR. ANDERSON expounded on Section 1 and explained that typically
the only information tracked is for flagged vessels. However,
he continued, vessels come into Alaska waters which are crewed
or carry Russian cargo, and these are not always tracked under
similar measures.
10:11:49 AM
CO-CHAIR SPOHNHOLZ opened invited testimony on HB 407.
10:11:59 AM
STEVE WHITE, Captain, Executive Director, Marine Exchange of
Alaska, provided invited testimony on HB 407 via a PowerPoint
presentation titled "Russian Vessels in Alaska." He displayed
the second slide, "Sovcomflot (SCF) Vessels 2010-current
'Russia's Largest Shipping Company.'" He stated that the Marine
Exchange does traffic analysis and sea traffic management, and a
traffic analysis was done on Russian ships and ships that are
associated with Russia or Russian companies, some of which was
done for the federal government. He said SCF, a Russian-owned
company with a focus on moving hydrocarbons, jet fuel, made 12
port calls at Anchorage over the last 10 years, including three
[in 2022]. He related that SCF ships are flagged by Liberia,
not Russia, but noted that flagging in another country is a
common practice. He said the black lines on the map delineate
traffic to Alaska and the white lines delineate traffic to
Canada and Washington.
CAPTAIN WHITE proceeded to the third slide, "SCF Tankers at
Alaska Ports 0 < COG < 180." He explained that the blue lines
on the map represent where the tankers came from, east to west,
to hit Alaska ports. But, he continued, they originated in
Korea and before they were in Korea they came from Russia. He
reiterated that SCF is a Russian owned company but is not
Russian flagged.
CAPTAIN WHITE moved to the fourth slide, "SCF Tankers at Alaska
Ports 180 < COG < 360." He explained that the red lines on the
map represent the tankers going back from the west to the east
and that they went to Russian ports instead of South Korea.
CAPTAIN WHITE showed the fifth slide, "Russian-flagged Vessels
Along the Border (2014 2021)." He said the two maps on the
slide show the massive amount of Russian flagged vessels that
came close to Alaska borders. He explained that the depictions
are of the Bering Strait with tracks in color by industry [blue
= fishing, black = tanker, green = cargo, orange = tug, fuchsia
= passenger/pleasure, and red = military/law enforcement]. He
drew attention to the map on the left and noted that the [solid
blue color] that looks like water is just the fishing activity.
He then brought attention to the extensive activity shown on the
map to the right and said it excludes the fishing activity. He
pointed out that the boat making port calls out of Nome
[depicted by the fuchsia-colored line] is listed as a
passenger/pleasure craft on the Automated Information System
(AIS), but that it is actually a research vessel which receives
its permits through the [U.S. Department of State]. Captain
White turned to the sixth slide, "Russian-flagged Vessels in AK
Ports 2010-current," and stated that there has not been a ton of
port calls in Alaska since 2010.
CAPTAIN WHITE displayed the seventh slide, "Russian Superyachts
2010-2021." He said these superyachts of oligarchs have visited
Southeast Alaska, with the last one in 2018. He offered his
belief that one of the vessels has been seized by another
country at this time. He pointed out that these superyachts are
not flagged by Russia, but rather Bermuda and Cayman Islands,
and advised that deeper analysis must often be done to figure
out where [vessels] come from.
CAPTAIN WHITE spoke to the eighth slide, "Russian Vessel Calls
at Alaska Ports 2010-current." He stated that not many cargo
ships come from overseas directly to Alaska - much of Alaska's
cargo comes from the bigger ports on the [U.S.] West Coast and
then to Alaska, and a lot of that is by barge rather than cargo
ship, especially in Southeast Alaska. So, he added, the control
points really are in the Lower 48. He summarized by noting that
over the past 11 years, there have been less than 20 commercial
visits from Russian ships which includes the Russian-owned ships
that are Liberian flagged, and less than 40 personal or pleasure
port calls in Alaska.
10:18:17 AM
REPRESENTATIVE KAUFMAN asked whether there would be some kind of
work around for an emergency if Alaska was to close its ports to
vessels owned by Russians. Responding to Captain White for
clarification, he asked whether there would be a safety valve
should there be a Russian vessel is in distress, but Alaska has
closed its ports to vessels owned by Russians.
CAPTAIN WHITE replied yes. He explained that anyone having a
problem can claim force majeure, which gives the right to pull
into port. He said this is a common practice internationally,
and it allows for that to happen for safety reasons, such as a
mechanical breakdown or humanitarian crisis.
REPRESENTATIVE KAUFMAN asked whether the bill as currently
written would allow that.
CAPTAIN WHITE responded that he doesn't know all the details of
the bill, but he doesn't think Alaska could write a bill that
would prevent force majeure.
10:19:56 AM
CO-CHAIR SPOHNHOLZ asked whether force majeure is international
law as well as U.S. law.
CAPTAIN WHITE confirmed that force majeure is international law.
He said it protects U.S. vessels like other vessels that operate
here; for example, a U.S. boat that needs to pull into a foreign
country for an emergency reason. It is for safety of life and
protection of the environment, he stated, and it is extreme
circumstances.
10:20:41 AM
CLAYTON W.A. CHRISTY, Captain, President, provided invited
testimony during the hearing on HB 407. He stated that Alaska
Marine Pilots is a small group comprised of 10 captains mandated
by the State of Alaska to provide pilotage services to vessels
plying the coastal waters of Region III, Western Alaska, to
assure the protection of shipping, human life and property, and
the marine environment. He noted that Region III encompasses
all state waters west of 156 degrees west longitude, which
includes the Alaska Peninsula, the Aleutian Islands, the west
coast of Alaska including the islands of the Bering Sea, and
along the northern coast to the Canadian border. He said Alaska
Marine Pilots provides firsthand the pilotage services to
foreign flagged vessels that are calling in Alaskan waters.
Over the years, he related, Alaska Marine Pilots has seen
Russian flagged oil tankers, Russian flagged research ships
calling into the Port of Nome and Port of Dutch Harbor, and
Russian flagged icebreakers calling into Dutch Harbor and
various other ports during the years when Shell was doing its
exploration in the Chukchi Sea.
10:22:23 AM
REPRESENTATIVE NELSON asked whether enactment of HB 407 would
cause any concerns or dangers to utilizing Russian flagged
icebreakers that are vital on the north side of Alaska.
CAPT. CHRISTY replied that, to his knowledge, this would not be
harmed by the bill.
10:23:15 AM
MR. ANDERSON recalled that about four or five years ago a
Russian icebreaker provided a fuel delivery to Nome when the
city had run out fuel. He stated that HB 407 does not currently
contain any provision for emergencies and that that change would
be welcomed.
REPRESENTATIVE NELSON said that is the incident he was referring
to, and he would look at that change until U.S. icebreakers are
put online.
[HB 407 was held over.]