Legislature(2017 - 2018)ADAMS ROOM 519

03/28/2018 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
-- Public Testimony --
Heard & Held
Heard & Held
-- Public Testimony --
Moved CSHJR 29(FIN) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 386                                                                                                            
     "An  Act relating  to abandoned  and derelict  vessels;                                                                    
     relating to  the registration  of vessels;  relating to                                                                    
     certificates  of title  for  vessels;  relating to  the                                                                    
     duties  of the  Department of  Administration; relating                                                                    
     to the  duties of the Department  of Natural Resources;                                                                    
     establishing  the derelict  vessel prevention  program;                                                                    
     establishing  the  derelict vessel  prevention  program                                                                    
     fund; and providing for an effective date."                                                                                
3:27:30 PM                                                                                                                    
Co-Chair Foster discussed the schedule.                                                                                         
3:28:05 PM                                                                                                                    
AT EASE                                                                                                                         
3:28:33 PM                                                                                                                    
REPRESENTATIVE  PAUL  SEATON, SPONSOR,  provided  background                                                                    
information about the  impetus for the bill.  He stated that                                                                    
in  2012  there  was  an   emergency,  because  someone  had                                                                    
purchased  two old  boats, but  could  not put  them in  the                                                                    
water.  He stated  that those  boats sank  in the  swamp. He                                                                    
stated  that  the  clean  up  of  the  vessels  was  a  long                                                                    
expensive   process.  He   shared  that   it  was   a  state                                                                    
responsibility, because  it was  difficult to  determine who                                                                    
owned and  who was  responsible for  the vessels.  He stated                                                                    
that he  had sponsored bill  that said that if  vessels were                                                                    
denied entry into harbor, they  could not be stored in state                                                                    
waters  for over  two weeks  without removing  the hazardous                                                                    
waste from  the vessels.  He felt  that the  legislation was                                                                    
difficult to enforce.                                                                                                           
3:33:50 PM                                                                                                                    
Co-Chair Seaton continued to discuss the need for the bill.                                                                     
PATRICIA   NICKELL-ZIMMERMAN,  STAFF,   REPRESENTATIVE  PAUL                                                                    
SEATON, provided  a PowerPoint  presentation titled  "HB 386                                                                    
Vessels: Registration/Titles; Derelicts" (copy on file).                                                                        
Ms. Nickell-Zimmerman  moved to slide 3,  "Title 05. Chapter                                                                    
25. Watercraft:                                                                                                                 
     Undocumented Vessels:                                                                                                      
          Adds Title requirement @20.00 for vessels that                                                                        
          are: (AS 05.25.096(a)(6))                                                                                             
               20 feet or more; and                                                                                             
               commercially used (AS 05.25.056(g))                                                                              
          Increases boat registration fee to $30.00                                                                             
          [$24.00] for 3 years. (AS 05.25.096(a)(1))                                                                            
          List of exemptions to Title and Registration                                                                          
          requirements. (AS 05.25.056), (AS 05.25.055(i))                                                                       
     Documented Vessels:                                                                                                        
          No Title required (AS 05.25.055(i)(1)(c))                                                                             
          Adds Registration of $30.00 for 3 years. (AS                                                                          
          Adds definition of barge (AS 05.25.100(16))                                                                           
          Adds Barge registration of $75.00 for 3 years.                                                                        
          (AS 05.25.096(5))                                                                                                     
3:39:23 PM                                                                                                                    
Ms. Nickell-Zimmerman turned to slide 4, "Title 30. Chapter                                                                     
30. Abandoned and Derelict Vessels":                                                                                            
     ?  Adds state or municipal property to areas that a                                                                      
     person    may   not    store    a   derelict    vessel.                                                                    
     AS 30.30.010 (a)(1)                                                                                                        
     ?   Amends statute  upon conviction, increases  fine to                                                                  
     not less than 5K or more  than 10K and/or not more than                                                                    
     90 days  imprisonment and/or  forfeiture of  vessel. AS                                                                    
     ? Adds DNR duties and powers to establish and                                                                            
     administer Derelict Vessel Prevention Program Fund.                                                                        
     AS 30.30.095 and 096                                                                                                       
     ? Adds regulated process for impoundment, through                                                                        
     notice and hearings prior to disposition. AS                                                                               
     30.30.040, 045, 055, 060, 065, 075                                                                                         
Ms. Nickell-Zimmerman addressed slide 5 titled "What is                                                                         
     DERELICT VESSEL 30.30.090                                                                                                  
          Sunk  or   sinking,  obstructing   or  endangering                                                                    
          health, safety, or environment                                                                                        
          number obliterated                                                                                                    
          Owner of record disclaims and current owner                                                                           
          cannot  be determined                                                                                                 
          Moored,    anchored,   stored,    abandoned   (see                                                                    
          definition) or left contrary to law                                                                                   
          No  record of  documentation  or registration  and                                                                    
          ownership cannot be determined                                                                                        
          Moored,    anchored,   stored,    abandoned   (see                                                                    
          definition)   without  authorization   on  private                                                                    
          Expired registration or  document number and owner                                                                    
          no longer at address                                                                                                  
Ms. Nickell-Zimmerman moved to slide 6 titled "Process to                                                                       
     20 days prior to impoundment, written notice and                                                                           
     posted on agencies website AS 30.30.040                                                                                    
     Within 15 days after postmark on written notice, owner                                                                     
     may request informal pre-impoundment hearing AS                                                                            
               10 business  days (or  longer per  request of                                                                    
          owner) after receipt of  written request by owner,                                                                    
          jurisdiction  schedules  informal   hearing.    AS                                                                    
               Jurisdiction to  provide written  decision to                                                                    
          owner, showing  "substantial evidence  that vessel                                                                    
          is derelict". AS 30.30.040(f)                                                                                         
     If found to be derelict, jurisdiction may impound                                                                          
     AS 30.30.055                                                                                                               
               Owner may take  possession upon reimbursement                                                                    
          to  State  or   municipality  of  incurred  costs.                                                                    
          (notices costs,  harbor fees, storage  fees, etc.)                                                                    
          AS 30.30.060                                                                                                          
               Jurisdiction may  sell, donate or  destroy if                                                                    
          not repossessed  within 30 days after  postmark on                                                                    
          written  notice  AS30.30.055(b)     after  posting                                                                    
          disposition. AS 30.30.045                                                                                             
Ms. Nickell-Zimmerman  addressed slide 7,  "Appropriation of                                                                    
Title   Fees   and   Barge   Fees   created   through   this                                                                    
     Derelict Vessel Prevention Program Fund AS 30.30.096                                                                       
          Money is appropriated into the fund, no further                                                                       
          appropriation is needed to move funds out.                                                                            
          Appropriations do not lapse.                                                                                          
3:44:41 PM                                                                                                                    
Representative Wilson MOVED to  ADOPT the proposed committee                                                                    
substitute  for  HB  386,  Work  Draft  30-LS1475\D  (Bruce,                                                                    
3/21/18). There being NO OBJECTION, it was so ordered.                                                                          
Vice-Chair  Gara  supported the  bill.  He  remarked on  the                                                                    
short  title  of  the  bill, which  he  believed  should  be                                                                    
Representative  Kawasaki  asked  about the  collection  from                                                                    
people who had left derelict vehicles.                                                                                          
Co-Chair Foster listed individuals available for questions.                                                                     
Co-Chair Seaton deferred to the Department of Law.                                                                              
3:47:25 PM                                                                                                                    
PETER CALTAGIRONE,  ATTORNEY, CIVIL  DIVISION, ENVIRONMENTAL                                                                    
SECTION, DEPARTMENT  OF LAW  (via teleconference),  asked to                                                                    
hear the question.                                                                                                              
Representative  Kawasaki wondered  why it  was difficult  to                                                                    
prosecute the owner in removing their "junk."                                                                                   
Mr. Caltagirone replied that the  current penalty in statute                                                                    
was not very high. The  bill as presented increased both the                                                                    
fines,  and punishment  as an  unclassified misdemeanor.  He                                                                    
remarked  that the  difficulty in  removing  the vessel  was                                                                    
primarily the cost. He shared  that the current statute gave                                                                    
the   Department  of   Natural  Resources   (DNR)  and   the                                                                    
municipality the  ability to  take the  vessel, but  did not                                                                    
address  the high  cost.  He shared  that  the current  bill                                                                    
created  a titling  requirement, which  would help  tracking                                                                    
the owner. He  furthered that even knowing the  owner of the                                                                    
vessel did  not guarantee removal  of the vessel.  He stated                                                                    
that there was a high cost to remove even a smaller vessel.                                                                     
3:51:10 PM                                                                                                                    
Representative Kawasaki  asked about past  legislation about                                                                    
derelict mining equipment on state lands.                                                                                       
Mr.  Caltagirone   was  not  familiar  with   the  mentioned                                                                    
Representative  Guttenberg   noted  that   the  registration                                                                    
process sat on  top of the Division of  Motor Vehicles (DMV)                                                                    
process. He asked if  there was a way for a  party to take a                                                                    
vessel before it derelict and take ownership.                                                                                   
Mr. Caltagirone replied in the  negative. The current law as                                                                    
written  did not  allow  it. There  was  no current  titling                                                                    
requirement in Alaska.                                                                                                          
Representative Guttenberg  asked if  a person would  have an                                                                    
opportunity to bid on the item.                                                                                                 
Mr. Caltagirone  asked what Representative  Guttenberg meant                                                                    
by his use of the word "you."                                                                                                   
Representative Guttenberg clarified.                                                                                            
Mr. Caltagirone  replied it would be  his understanding. For                                                                    
the state  to get involved he  believed it would have  to be                                                                    
on trespassing.                                                                                                                 
3:54:38 PM                                                                                                                    
Co-Chair  Seaton requested  to hear  about the  process from                                                                    
his staff.                                                                                                                      
Ms. Nickel-Zimmerman  shared that one of  the questions that                                                                    
had arisen when  DMV had approached the  sponsor was related                                                                    
to titling.  Titling would be  new for boat owners,  and was                                                                    
proof  of  ownership. They  had  been  told there  would  be                                                                    
another process for the potential of an affidavit.                                                                              
Representative  Wilson  asked  for  verification  they  were                                                                    
speaking about boats 20 feet or larger.                                                                                         
Ms. Nickel-Zimmerman replied in the affirmative.                                                                                
HB  386  was  HEARD  and   HELD  in  committee  for  further                                                                    
Co-Chair  Foster  reviewed  the  meeting  schedule  for  the                                                                    
following day.                                                                                                                  

Document Name Date/Time Subjects
HB 219 Sectional for HFIN.pdf HFIN 3/28/2018 1:30:00 PM
HB 219
HB219 Transmittal Letter.pdf HFIN 3/28/2018 1:30:00 PM
HB 219
HJR 29 Secure Rural Schools Funding in Federal Omnibus Bill.pdf HFIN 3/28/2018 1:30:00 PM
HJR 29
HB 386 Draft Proposed CS Ver D 03.27.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 386
HB 386 statute changes power point house finance.pdf HFIN 3/28/2018 1:30:00 PM
HB 386
HB 217 Alaska Grown 3-26-18.pdf HFIN 3/28/2018 1:30:00 PM
HB 217
HB 217 Version T 3-27-18.pdf HFIN 3/28/2018 1:30:00 PM
HB 217
HB 217 Alaska Grown Sponsor Statement 3.27.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 217
HB 386 Sectional Analysis ver D 03.28.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 386
HB 386 Sectional changes ver A to Ver D 03.28.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 386
HB 217 Summary of Changes Version O to T.pdf HFIN 3/28/2018 1:30:00 PM
HB 217
HB217 Letters of Support 3.28.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 217
HB 386 Letter of concern 3.28.18.pdf HFIN 3/28/2018 1:30:00 PM
HB 386
HJR 29 Dr. Wegner testomony.pdf HFIN 3/28/2018 1:30:00 PM
HJR 29
HB 217 Audit 2015.pdf HFIN 3/28/2018 1:30:00 PM
HB 217