Legislature(2017 - 2018)SENATE FINANCE 532

03/01/2018 09:00 AM Senate FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
<Bill Hearing Canceled>
                 SENATE FINANCE COMMITTEE                                                                                       
                       March 1, 2018                                                                                            
                         9:04 a.m.                                                                                              
9:04:08 AM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:04 a.m.                                                                                                   
MEMBERS PRESENT                                                                                                               
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Rachel Hanke,  Staff, Senator Peter Micciche;  Carl Uchytil,                                                                    
President,  Alaska  Association   of  Harbormasters;  Graham                                                                    
Lanz,  Commander,  United  States   Coast  Guard;  Ed  King,                                                                    
Special  Assistant   to  the  Commissioner,   Department  of                                                                    
Natural  Resources;   Jane  Conway,  Staff,   Senator  Cathy                                                                    
Giessel; Senator Cathy Giessel,  Sponsor; Jill Lewis, Deputy                                                                    
Director, Division  of Public  Health, Department  of Health                                                                    
and  Social  Services;  Eliza Muse,  Specialist,  Office  of                                                                    
Substance Misuse and Addiction Prevention.                                                                                      
PRESENT VIA TELECONFERENCE                                                                                                    
Rachel Lord,  Alaska Association  of Harbormasters  and Port                                                                    
Administrators, Homer; Bryan  Hawkins, Harbormaster, City of                                                                    
Homer,  Homer; Peter  Caltagirone,  Attorney, Department  of                                                                    
Law;  Kris  Hess,  Division  of   Mining,  Land  and  Water,                                                                    
Department of  Natural Resources, Anchorage;  Trevor Storrs,                                                                    
Executive   Director,   Alaska   Children's   Trust;   Alana                                                                    
Humphrey,  CEO, Boys  and  Girls  Club Southcentral  Alaska;                                                                    
Thomas  Azzarella,  Alaska   After  School  Network,  Alaska                                                                    
Children's Trust.                                                                                                               
SB 92     VESSELS: REGISTRATION/TITLES; DERELICTS                                                                               
          SB 92 was HEARD and HELD in committee for further                                                                     
SB 128    MARIJUANA EDU/TREATMENT FUND/PROGRAM                                                                                  
          SB 128 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
SENATE BILL NO. 92                                                                                                            
     "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."                                                                                
9:05:18 AM                                                                                                                    
SENATOR PETER  MICCICHE, SPONSOR,  invited his staff  to the                                                                    
9:05:35 AM                                                                                                                    
AT EASE                                                                                                                         
9:06:19 AM                                                                                                                    
Senator  Micciche  he  stated that  the  bill  provided  the                                                                    
ability to  identify ownership of derelict  vessels in order                                                                    
to  address the  vessels  before they  sunk  in harbors  and                                                                    
state land.  He also stated  that there was a  portion about                                                                    
insurance to  ensure financial capacity. He  stated that the                                                                    
current bill restricted it to  the ownership. He stated that                                                                    
it  would  help  track  the  ownership  of  vessels  through                                                                    
titling,  and would  expand the  pool of  registered vessels                                                                    
that  required titles.  He noted  that  the shorelines  were                                                                    
littered  with  derelict vessels,  so  the  bill provided  a                                                                    
simple method to begin to deal with the problem                                                                                 
RACHEL LORD,  ALASKA ASSOCIATION  OF HARBORMASTERS  AND PORT                                                                    
ADMINISTRATORS,  HOMER (via  teleconference), discussed  the                                                                    
presentation,  "SB  92,   Derelict  Vessels,  Accountability                                                                    
Across  Alaska,   a  presentation  to  the   Senate  Finance                                                                    
Committee" (copy on file).                                                                                                      
9:08:44 AM                                                                                                                    
AT EASE                                                                                                                         
9:11:36 AM                                                                                                                    
Ms. Lord highlighted slide 2, "What's the Problem?"                                                                             
     "By 2025,  the Alaska fleet will  include roughly 3,100                                                                    
     vessels  between 28'  and  59' that  are  more than  45                                                                    
     years   old...the  Alaska   fleet   also  includes   75                                                                    
     passenger  vessels,  tugs,  and barges  over  50  years                                                                    
Ms. Lord addressed slide 3, "A Guy Walks Into A Bar?":                                                                          
     We  love our  boats, and  we depend  on our  coasts and                                                                    
     rivers  for transportation,  commerce,  and quality  of                                                                    
     life.  But there  is  no denying  the  immense cost  of                                                                    
     owning and  maintaining a boat.  Those costs  of owning                                                                    
     and maintaining a boat. Those  costs only increase over                                                                    
Ms. Lord  discussed slide 4,  "Jakolof Bay,  2012-2013." She                                                                    
stated that  on Christmas Eve  2012, two vessels  sank under                                                                    
heavy  snow load  in Jakolof  Bay. Those  vessels were  in a                                                                    
critical oyster  habitat area. The boats  were purchased and                                                                    
moored on state  waters. The vessels were  the first vessels                                                                    
that the state impounded under the derelict vessel chapter.                                                                     
9:15:40 AM                                                                                                                    
Ms. Lord highlighted slide 5, "A Growing Problem":                                                                              
     ADNR  has  begun  a  database,   but  it  is  far  from                                                                    
     complete.  There are  nearly  200 documented  derelicts                                                                    
     across Alaska. We know many  more exist, and the number                                                                    
     will continue.                                                                                                             
Ms. Lord displayed slide 6, "The Public Pays the Price":                                                                        
     With  outdated  statues  our municipalities  and  state                                                                    
     agencies are  unable to effectively prevent  and manage                                                                    
     derelict vessels. Alaskan waters  are a default dumping                                                                    
Ms. Lord addressed slide 7, "Solutions in SB 92":                                                                               
     Over a  two-year period the Derelict  Vessel Task Force                                                                    
     identified  major  barriers  and solutions  to  improve                                                                    
     derelict vessel prevention and management in Alaska.                                                                       
Ms. Lord discussed slide 8, "Task Force Participants":                                                                          
     Please note  that while many  people sat at  the table,                                                                    
     nothing  within  this   presentation  or  testimony  is                                                                    
     intended  to  speak on  the  behalf  of any  individual                                                                    
     agency, municipality, or task force participant.                                                                           
     ADNR, Mining, Land, and Water                                                                                              
     ADEC, Spill Prevention and Response                                                                                        
     ADOT, Ports and Harbors                                                                                                    
     ADFG, Habitat                                                                                                              
     USCG,  Sectors  and  Anchorage and  Juneau/Division  of                                                                    
     Waterways Management                                                                                                       
     NOAA, Marine Debris Program/Restoration                                                                                    
     EPA, Response Region 10                                                                                                    
     AAHPA (Bethel, Homer)                                                                                                      
     Orutsararmiut Native Council                                                                                               
     Senator Lisa Murkowski's office                                                                                            
     Alaska Marine Response                                                                                                     
Ms. Lord highlighted slide 9, "Registration and Titling":                                                                       
     Agencies  and  municipalities have  found  establishing                                                                    
     ownership  is  one  of the  major  hurdles  to  holding                                                                    
     owners responsible for  derelict vessels. Requiring all                                                                    
     vessels operating in AK to  be registered with DMV, and                                                                    
     beginning a titling system for  vessels similar to that                                                                    
     in place for motor  vehicles, are commonsense solutions                                                                    
     to improve accountability.                                                                                                 
Ms. Lord discussed slide 10, "Increase Clarity":                                                                                
     Agencies  and municipalities  statewide need  increased                                                                    
     clarity   for  defining   a  derelict   vessel,  vessel                                                                    
     ownership,  and for  the impoundment  process including                                                                    
     clarified hearing  and notice requirements.  SB updates                                                                    
     Chapter 30.30  to bring clarity and  improve utility of                                                                    
     the statutes.                                                                                                              
9:20:54 AM                                                                                                                    
Ms. Lord displayed slide 11, "Enforcement Authority and                                                                         
Increased Penalties"                                                                                                            
     Current  statutes  restrict   enforcement  of  derelict                                                                    
     vessel laws.  One major way  to reduce  vessel sinkings                                                                    
     and prevent owners from walking  away is to provide for                                                                    
     enforcement of  the chapter to hold  owners accountable                                                                    
     and  prevent derelict  vessels from  sinking on  public                                                                    
Ms. Lord highlighted slide 12, "Clarified Liability":                                                                           
     Hearing  concerns from  agencies and  the public,  Task                                                                    
     Force members  acknowledged that it is  important to be                                                                    
     clear  that a  vessel  owner is  liable  for all  costs                                                                    
     associated  with the  impoundment, storage  and removal                                                                    
     of a derelict vessel.                                                                                                      
Ms. Lord discussed slide 13, "Streamlined Capacity":                                                                            
     Outside  states have  found significant  improvement in                                                                    
     derelict   vessel   prevention    and   management   by                                                                    
     streamlining   their   efforts  through   a   statewide                                                                    
     program/point  person. Having  a point  person at  ADNR                                                                    
     will concentrate  work that is currently  being done by                                                                    
     numerous   staff,  will   reduce  overall   costs,  and                                                                    
     increase efficacy of derelict vessel management.                                                                           
Ms. Lord addressed slide 14, "Cradle to Grave":                                                                                 
     Addressing vessel disposal was  outside of the scope of                                                                    
     the  Task Force,  but must  be  addressed. Through  the                                                                    
     derelict  vessel  prevention  program, the  state  will                                                                    
     have the  opportunity to begin  looking at  options for                                                                    
     vessel disposal,  scrap and salvage solutions  that cab                                                                    
     benefit  the   private  sector  and  be   a  reasonable                                                                    
     alternative to vessel abandonment.                                                                                         
Ms. Lord highlighted slide 15, "Juneau Empire Editorial,                                                                        
October 15, 2015":                                                                                                              
     The Alaska Department  of Natural Resources?lacks event                                                                    
     the authority  to fine?for  littering. ?In  places like                                                                    
     Bethel,  which has  a dumping  ground called  Steamboat                                                                    
     Slough,  the problem  of derelict  and abandoned  boats                                                                    
     long  ago broke  the surface  of public  awareness. ?we                                                                    
     could instead  simply mandate  the registration  of all                                                                    
     boats  - commercial  and recreational  alike -  through                                                                    
     the DMV. We could also  mandate that boats of a certain                                                                    
     size,  like all  cars,  carry  insurance sufficient  to                                                                    
     cover their salvage. At the  very least, we could grant                                                                    
     the   Department  of   Natural  Resources   the  simple                                                                    
     authority to  levy fines on those  who pollute Alaska's                                                                    
Ms. Lord discussed slide 16, "Chinook Observer, March 22,                                                                       
     Too  many people  get in  over their  heads, and  their                                                                    
     dreams of  ship renovation  or making money  from scrap                                                                    
     become a  nightmare for the  citizens of the  state and                                                                    
     the  marine  environment. 'A  hole  in  the water  into                                                                    
     which  you pour  money'  is a  famous  definition of  a                                                                    
     boat. To  the maximum  extent possible, we  must ensure                                                                    
     taxpayers are not the ones doing the pouring.                                                                              
Ms. Lord addressed slide 17, "HCR 53 1990":                                                                                     
     Whereas  the state  does not  currently have  statutory                                                                    
     authority to  impose liability on the  owners abandoned                                                                    
9:25:14 AM                                                                                                                    
Ms.    Lord   highlighted    slide    18,   "Akutan    Dutch                                                                    
Harbor/Unalaska."  She  stated  that there  was  an  article                                                                    
about Akutan  in the  packet. She stressed  that it  was the                                                                    
third boat impounded under derelict vessel laws.                                                                                
Senator Olson had been opposed  to registration and titling,                                                                    
because  he  did  not  believe   the  smaller  vessels  were                                                                    
protected.  He wondered  how to  protect  the smaller  boats                                                                    
from  a   cumbersome  registration  requirement.   Ms.  Lord                                                                    
replied  that the  smaller  boats would  have  a title.  She                                                                    
stated  that  vessels under  five  net  tons were  currently                                                                    
required  to  register with  the  state.  She discussed  the                                                                    
Senator   Olson  wondered   whether   inflated  boats   were                                                                    
included. Ms. Lord replied in  the affirmative. She stressed                                                                    
that  motorized boats  were required  to  register with  the                                                                    
Senator Stevens  stressed that it  was a major issue  in his                                                                    
community. He  felt that  it did not  deal with  the problem                                                                    
directly.  He wondered  what could  be done  to help  people                                                                    
with an aging boat. He wanted  to help people dispose of the                                                                    
9:30:55 AM                                                                                                                    
RACHEL HANKE,  STAFF, SENATOR PETER MICCICHE,  discussed the                                                                    
Sectional Analysis (copy on file):                                                                                              
     Section 1                                                                                                                  
     Adds titling to the requirements for boats placed on                                                                       
     the waters of the state.                                                                                                   
     Section 2                                                                                                                  
     Requires  all boats  have a  certificate  of number  if                                                                    
     operated on  the waters of  the state for more  than 90                                                                    
     consecutive  days or  60  consecutive  days for  barges                                                                    
     unless otherwise provided in the chapter.                                                                                  
     Section 3                                                                                                                  
     Provides exceptions from numbering and registration                                                                        
     for boats and barges.                                                                                                      
     Section 4                                                                                                                  
     Adds new section for establishing a system for                                                                             
     certification of titles.                                                                                                   
     Section 5                                                                                                                  
     Inserts cross-reference.                                                                                                   
     Section 6                                                                                                                  
     Increases  boat registrations  for a  three-year period                                                                    
     from $24  to $30,  adds barge  registration fee  at $75                                                                    
     for a three-year period, adds  boat title and duplicate                                                                    
     boat title fee of $20.                                                                                                     
     Section 7                                                                                                                  
     Adds definition of "barge".                                                                                                
     Section 8                                                                                                                  
    Repeals and reenacts definitions from AS 05.25.100.                                                                         
     Sections 9 & 10                                                                                                            
     Clarifies existing language.                                                                                               
     Section 11                                                                                                                 
     Raises the fine  for abandoning a vessel  from not less                                                                    
     than $500 to not less  than $5,000 or more than $10,000                                                                    
     and lowers  the maximum  term of imprisonment  from six                                                                    
     months to 90 days.                                                                                                         
     Section 12                                                                                                                 
     Allows  the  department  or a  municipality  to  report                                                                    
     violations to the Attorney General  in order to enforce                                                                    
     criminal penalties.                                                                                                        
     Section 13                                                                                                                 
     Adds new  section allowing an aggrieved  person to file                                                                    
     a  civil injunction  with a  penalty of  not more  than                                                                    
     $1,000 per violation.                                                                                                      
     Section 14                                                                                                                 
     Allows the department  to provide written authorization                                                                    
     for a  vessel to be  left within 14 days  and clarifies                                                                    
     Section 15                                                                                                                 
     Changes section to  pre-impoundment notice and hearing.                                                                    
     Requires   30  days'   notice  prior   to  impoundment,                                                                    
     requires  the impounding  authority to  post notice  on                                                                    
     vessel when possible and online.                                                                                           
     Section 16                                                                                                                 
     Adds new subsections  establishing notice specification                                                                    
     and   defines   the   procedure   for   pre-impoundment                                                                    
     Section 17                                                                                                                 
     Adds  new  section  establishing requirements  for  the                                                                    
     notice of disposition.                                                                                                     
     Section 18                                                                                                                 
     New section  proving clear guidelines of  procedure for                                                                    
     impoundment   of   a  vessel   by   the   state  or   a                                                                    
     Section 19                                                                                                                 
     Removes  requirement that  an  interested party  taking                                                                    
     possession of a derelict vessel post security.                                                                             
     Section 20                                                                                                                 
     Establishes procedure for  the immediate impoundment of                                                                    
     derelict  vessels  that  pose  an  imminent  threat  to                                                                    
     Section 21                                                                                                                 
     Adds new section stating that  the individual owning an                                                                    
     impounded vessel  is liable for  all costs  incurred in                                                                    
     the process.                                                                                                               
     Section 22                                                                                                                 
     Provides situations that would make a vessel derelict.                                                                     
     Section 23                                                                                                                 
     Gives  the  department  the   power  to  establish  and                                                                    
     administer  the  derelict   vessel  prevention  program                                                                    
     which   includes  education,   outreach,  an   advisory                                                                    
     council and  creates a program  fund which  consists of                                                                    
     money appropriated  from donations, vessel  sales under                                                                    
     this chapter, federal funds,  civil penalties and money                                                                    
     collected  from  barge   registration  and  titling  of                                                                    
     Section 24                                                                                                                 
     Adds   "floating  facility"   to   the  definition   of                                                                    
     Section 25                                                                                                                 
     Adds definitions.                                                                                                          
     Section 26                                                                                                                 
     Names this chapter the Derelict Vessels Act.                                                                               
     Section 27                                                                                                                 
     Adds titling to Title 37.                                                                                                  
     Section 28                                                                                                                 
     Allows civil penalties collected under AS 30.30 to be                                                                      
     deposited to the derelict vessel prevention program                                                                        
     Section 29                                                                                                                 
     Removes repealed sections allowing the fund to remain                                                                      
     without federal funding.                                                                                                   
     Section 30                                                                                                                 
     Repealing sections of AS 30.30.                                                                                            
     Section 31                                                                                                                 
     Transition language allowing DNR and DOA to adopt                                                                          
     Section 32                                                                                                                 
     Revisor's instruction to change two headings.                                                                              
     Sections 33-36                                                                                                             
     Effective date sections.                                                                                                   
9:35:16 AM                                                                                                                    
Vice-Chair  Bishop looked  at Section  4, and  felt that  he                                                                    
might  be able  to ask  the administration  a question  at a                                                                    
later date.                                                                                                                     
Co-Chair MacKinnon  wanted to wait until  the public hearing                                                                    
was complete before she asked her questions.                                                                                    
Senator Stevens stressed  that it was an  enormous issue. He                                                                    
wanted to  know the costs.  He wondered whether there  was a                                                                    
survey to understand the cost of the sunken vessels.                                                                            
Senator Micciche replied that  there was an Alaska Abandoned                                                                    
and Derelict  Vessel case studies  document that  captures a                                                                    
few of  the cases. He  remarked that there were  some places                                                                    
with many large barges that were  on the beach, and the cost                                                                    
for those  would be many  millions. He stated that  the bill                                                                    
was  about stopping  adding to  the collection  of abandoned                                                                    
vessels that littered the beaches in Alaska.                                                                                    
Senator  Stevens   felt  that   the  information   would  be                                                                    
available  by contacting  communities  that experienced  the                                                                    
enormous expenses.                                                                                                              
9:38:11 AM                                                                                                                    
CARL    UCHYTIL,    PRESIDENT,   ALASKA    ASSOCIATION    OF                                                                    
HARBORMASTERS,  spoke in  support of  the bill.  He remarked                                                                    
that the  Alaska Municipal League also  expressed support of                                                                    
the legislation.  He shared that  in Juneau, since  2014, he                                                                    
had impounded over  50 vessels and destroyed  37 vessels. He                                                                    
stressed that  it was important  to maintain harbors  in the                                                                    
9:41:53 AM                                                                                                                    
Senator Stevens understood that the  cost of a sunken vessel                                                                    
was much  more than addressing  the disposal of  an floating                                                                    
vessel.  He  wondered  whether  the  fund  was  out  of  the                                                                    
harbormaster  fund.    Mr.  Uchytil   replied  that  he  was                                                                    
committed to  having a  safe, secure,  and clean  harbor. He                                                                    
remarked that vessels that ended  up derelict sometimes were                                                                    
owned by people  with the least resources.  He remarked that                                                                    
due process was afforded, but  there was no derelict "fairy"                                                                    
that would pay for the removal of the vessels.                                                                                  
Senator Stevens stated that Section  22 related to education                                                                    
outreach  and an  advisory council.  He wondered  whether it                                                                    
would assist in letting the  owners know that they could not                                                                    
avoid  the responsibility.  Mr. Uchytil  replied that  there                                                                    
was a  network among the  harbormasters to reach out  to the                                                                    
vessel owners.                                                                                                                  
Senator  Olson queried  the  additional  authority that  was                                                                    
needed for  Department of Natural Resources  (DNR) to ensure                                                                    
that the  disasters were handled  before they  become worse.                                                                    
Mr.  Uchytil replied  that  the  unfortunate consequence  of                                                                    
Juneau being  assertive and provide safe  and secure harbors                                                                    
was the vessel owners would go into DNR lands.                                                                                  
9:46:47 AM                                                                                                                    
Senator Olson  wondered whether the bill  gave the authority                                                                    
to use  the least  amount of resources  to solve  the issue.                                                                    
Mr. Uchytil responded that the  bill would help with some of                                                                    
the smaller communities.                                                                                                        
Senator von  Imhof noted that  in the fiscal note  a portion                                                                    
of  the fees  would be  transferred  to DNR  each year.  She                                                                    
wondered whether  that would help  to clean up  the derelict                                                                    
vessels. Mr. Uchytil replied that  the money needed to clean                                                                    
up  the vessels  was approximately  $10,000 to  $100,000 per                                                                    
Senator Micciche  stressed that the  intent of the  bill was                                                                    
to understand the  ownership of the vessel  to start dealing                                                                    
with the issue before it sinks.                                                                                                 
9:49:37 AM                                                                                                                    
BRYAN  HAWKINS,  HARBORMASTER,  CITY OF  HOMER,  HOMER  (via                                                                    
teleconference),  spoke in  support of  the legislation.  He                                                                    
stated  that  Homer  had  made  an effort  to  clean  up  or                                                                    
encourage  movement  of  larger vessels.  He  stressed  that                                                                    
there was no  more valuable real estate in  a community than                                                                    
its harbor, because it was  extremely expensive. The purpose                                                                    
of a harbor was to provide mooring for working vessels.                                                                         
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
9:57:21 AM                                                                                                                    
Vice-Chair  Bishop   wanted  to   discuss  Section   4  with                                                                    
Department of Administration (DOA).                                                                                             
Senator Stevens wanted to know  about the $2 million cost of                                                                    
a  vessel that  was alluded  to earlier.  He wanted  to know                                                                    
about the Coast Guard's responsibility.                                                                                         
9:58:27 AM                                                                                                                    
GRAHAM LANZ,  COMMANDER, UNITED  STATES COAST  GUARD, stated                                                                    
that the Challenger  that sunk in the  Gastineau Channel was                                                                    
a wooden  vessel that sank  with a  large amount of  fuel on                                                                    
board. The Oil Spill Liability  Trust Fund was open for that                                                                    
clean up, because  the vessel's owner lacked  the ability to                                                                    
raise the  vessel himself. He  stated that it was  rare that                                                                    
an oil spill  response result in a vessel  being removed and                                                                    
Senator  Stevens wanted  to address  the  concern about  the                                                                    
vessel in state lands.                                                                                                          
Senator Olson  wondered what other  states had done  to deal                                                                    
with the issue. Mr. Lanz  replied that some other states had                                                                    
created funds, much  like the proposal in the  bill, to help                                                                    
manage the  end of  life for the  vessels. He  stressed that                                                                    
the  lower 48  saw more  available scrapping  facilities and                                                                    
the ease;  and retrieval  and disposal of  the vessels  at a                                                                    
much lower cost.                                                                                                                
Co-Chair  MacKinnon  wondered  how many  documented  vessels                                                                    
would be subject to the new titling requirements.                                                                               
Senator Micciche deferred to Ms. Lord.                                                                                          
Ms. Lord replied  that she did not know  how many documented                                                                    
vessels were in  the state. She stated that  there were 5000                                                                    
to  6000  commercial  vessel  permits  registered  with  the                                                                    
state. She shared  that any vessel over 5 net  tons owned by                                                                    
a  U.S. citizen  could be  federally documented.  She stated                                                                    
that  many of  the larger  vessels were  probably documented                                                                    
vessels.  She stated  that  the  harbormaster had  estimated                                                                    
that there were probably 10,000 to 20,000 documented boats.                                                                     
Co-Chair MacKinnon looked at page  4, lines 5 through 7. She                                                                    
noted the definition  of a barge, and  wondered whether flat                                                                    
bottom vessels, power scrubbers,  crabbers, and river skiffs                                                                    
would be considered a "barge."                                                                                                  
Senator Micciche deferred to Ms. Lord.                                                                                          
10:04:02 AM                                                                                                                   
Ms. Lord replied that the  definition of a barge was defined                                                                    
by its carrying of cargo.                                                                                                       
Co-Chair MacKinnon  noted that  there was some  concern that                                                                    
those  boats  might get  subjected  into  the definition  of                                                                    
"barge."  She looked  at Section  8,  page 4,  line 15,  and                                                                    
wondered whether paddleboats were  considered water toys, or                                                                    
need to be registered as a boat.                                                                                                
Senator  Micciche stated  that  barges  or motorized  vessel                                                                    
would  require registration.  He stated  that a  paddle boat                                                                    
would be considered a water toy.                                                                                                
Co-Chair MacKinnon  wondered whether paddle boards  would be                                                                    
considered water toys under the definition in Section 8.                                                                        
PETER   CALTAGIRONE,  ATTORNEY,   DEPARTMENT  OF   LAW  (via                                                                    
teleconference), agreed to provide that information.                                                                            
Co-Chair MacKinnon  looked at Section 14,  and asked whether                                                                    
DNR was online.                                                                                                                 
10:06:59 AM                                                                                                                   
KRIS HESS,  DIVISION OF MINING,  LAND AND  WATER, DEPARTMENT                                                                    
OF  NATURAL   RESOURCES,  ANCHORAGE   (via  teleconference),                                                                    
introduced herself.                                                                                                             
Co-Chair MacKinnon  queried the number of  estimated permits                                                                    
that were expected  per year based on Section 14.   Ms. Hess                                                                    
replied  that the  records were  consistent with  Ms. Lord's                                                                    
Co-Chair MacKinnon  stated that  the estimate was  unsure up                                                                    
to $20,000. Ms. Hess replied in the affirmative.                                                                                
Senator  Stevens   queried  the   experience  of   DNR  with                                                                    
abandoned vessels.  Ms. Hess replied  the case  studies from                                                                    
Senator  Micciche's office  detailed  some  of the  incurred                                                                    
cost for DNR.  She recalled that others  had testified about                                                                    
how  DNR  was  continually  contacted  about  abandoned  and                                                                    
derelict  vessels. She  stressed  that it  was difficult  to                                                                    
find  the owners  of the  vessels,  and there  was not  much                                                                    
success  in making  those  owners  responsible for  removing                                                                    
their vessels.                                                                                                                  
Senator Stevens  surmised that  the information  was already                                                                    
provided  to   the  committee.  Ms.  Hess   replied  in  the                                                                    
affirmative. She stated  that the DNR staff  time to address                                                                    
the issue  was not tracked, but  the out of pocket  cost was                                                                    
detailed in the case study in members' packets.                                                                                 
10:11:21 AM                                                                                                                   
Co-Chair MacKinnon  wondered who would hold  the pre-impound                                                                    
hearings,  and  an estimate  of  the  anticipated number  of                                                                    
hearings.  Ms.  Hess  replied  that  there  was  only  three                                                                    
instances  when  DNR  had  taken  custody  of  an  abandoned                                                                    
derelict  vessel. She  stated that  she believed  that local                                                                    
municipalities  had  not  gone  through  that  process.  She                                                                    
stated  that the  most  recent situation  was  treated as  a                                                                    
derelict vessel.                                                                                                                
Co-Chair MacKinnon noted the  indeterminate fiscal note. She                                                                    
wondered whether  there could be further  examination of the                                                                    
fiscal  impact. Ms.  Hess agreed  to  reexamine that  fiscal                                                                    
Co-Chair MacKinnon  looked at Section  22, page 12,  lines 2                                                                    
through 4, in relationship to  Section 14. She wondered what                                                                    
would occur  should DNR fail  to issue a permit  for someone                                                                    
who had  applied for  a permit.  Ms. Hess  replied it  was a                                                                    
fairly fast and streamlined  permit process. She stated that                                                                    
the application was posted on  the public notice website for                                                                    
fourteen  days,  and  allowed   public  comment.  Once  that                                                                    
fourteen days concluded, the  comments were adjudicated with                                                                    
regard to  issuance of  the permit  and any  conditions that                                                                    
may   be  included   in   the   permit  authorization.   She                                                                    
anticipated that DNR would act as quickly as possible.                                                                          
10:16:38 AM                                                                                                                   
Co-Chair MacKinnon looked  at Section 22, page  12, line 22,                                                                    
and  queried the  recourse of  a private  land owner  with a                                                                    
derelict vessel. Ms. Hess deferred to Mr. Caltagirone.                                                                          
Mr.  Caltagirone stated  that the  private land  owner would                                                                    
have a trespass claim directly against the vessel owner.                                                                        
Co-Chair MacKinnon  wondered whether  the stat  would assist                                                                    
the  land owner.  Mr.  Caltagirone replied  that  it was  an                                                                    
issue for a land owner.                                                                                                         
Co-Chair MacKinnon wondered whether  the state would assist,                                                                    
if the vessel was in the  waters in front of privately owned                                                                    
land. Mr. Caltagirone replied in the affirmative.                                                                               
Co-Chair MacKinnon  surmised that  private land  owners come                                                                    
at high tide. Mr. Caltagirone agreed.                                                                                           
Co-Chair  MacKinnon looked  at  Section  23, and  understood                                                                    
that  the funds  would  not lapse.  She  furthered that  DNR                                                                    
could  use   those  funds   that  collect   without  further                                                                    
appropriations.  She  wondered  whether  DNR  would  provide                                                                    
grants to  municipalities. Ms. Hess  replied that  DOA would                                                                    
administer the money  in the fund, and  DNR would administer                                                                    
the  program. She  stated  that  local municipalities  could                                                                    
apply if they decide to take custody of the vessel.                                                                             
Co-Chair  MacKinnon   wanted  to  ensure  that   Section  23                                                                    
adequately describes  a process  for the  municipalities and                                                                    
the state  us of the funds.  She looked at Section  30, page                                                                    
15, line  1, which removed  the private boat  yard's ability                                                                    
to exercise current derelict vessel disposal procedures.                                                                        
Senator Micciche deferred to Mr. Caltagirone.                                                                                   
10:21:23 AM                                                                                                                   
Co-Chair  MacKinnon queried  the  reason for  the repeal  of                                                                    
that portion of state  statute. Mr. Caltagirone replied that                                                                    
the  statutory  provisions  were current  iteration  of  the                                                                    
derelict  vessel   statute.  He   agreed  to   provide  more                                                                    
Co-Chair MacKinnon  queried the  reason for the  repeal. Ms.                                                                    
Hanke  replied  that  private  land  owners  had  their  own                                                                    
avenues of  recourse, so the  sections were used  for public                                                                    
entities. She deferred to Ms. Lord for more information.                                                                        
Ms. Lord stated that the repeal  of Article 3 in the current                                                                    
statute  expressly  dealt  with vessels  abandoned  on  boat                                                                    
repair  yards. There  was a  thought that  the language  was                                                                    
somewhat misleading.                                                                                                            
Co-Chair  MacKinnon  wanted to  see  how  the process  would                                                                    
change for the private boat yards under the new statute.                                                                        
10:25:39 AM                                                                                                                   
Senator Micciche  stated that it  was not expected  that DNR                                                                    
never over spend what was available in the fund.                                                                                
Co-Chair  MacKinnon  wanted to  outline  that  issue in  the                                                                    
ED KING,  SPECIAL ASSISTANT TO THE  COMMISSIONER, DEPARTMENT                                                                    
OF NATURAL RESOURCES, noted that  DNR was working on updated                                                                    
fiscal notes.                                                                                                                   
Senator  Micciche  noted  that currently  DNR's  involvement                                                                    
with a costly removal of a vessel  there may or may not be a                                                                    
supplemental  request. He  stressed that  the intent  of the                                                                    
bill was  about education, outreach, and  other issues where                                                                    
DNR  could  not  overspend  within  the  program.  Mr.  King                                                                    
pointed  out  that  his  interpretation   of  the  bill  was                                                                    
consistent with the bill sponsor.                                                                                               
Senator Stevens  surmised that  the fund  would not  be used                                                                    
for the potential to raise a vessel.                                                                                            
Senator  Micciche stated  that the  funds could  be used  to                                                                    
assisting municipality  and the  state; however  the limited                                                                    
number was restricted to education and outreach.                                                                                
Co-Chair MacKinnon  announced that  amendments were  due the                                                                    
following Monday by 5pm.                                                                                                        
SB  92  was   HEARD  and  HELD  in   committee  for  further                                                                    
10:29:45 AM                                                                                                                   
AT EASE                                                                                                                         
10:32:18 AM                                                                                                                   
SENATE BILL NO. 128                                                                                                           
     "An  Act  establishing   the  marijuana  education  and                                                                    
     treatment  fund;  and relating  to  the  duties of  the                                                                    
     Department of Health and  Social Services to administer                                                                    
     a comprehensive  marijuana use education  and treatment                                                                    
10:32:34 AM                                                                                                                   
Vice-Chair Bishop  MOVED to  ADOPT the  committee substitute                                                                    
for   SB  128,   Work  Draft   30-LS1069\U  (Wallace/Martin,                                                                    
10:32:51 AM                                                                                                                   
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
10:33:06 AM                                                                                                                   
AT EASE                                                                                                                         
10:33:09 AM                                                                                                                   
10:33:22 AM                                                                                                                   
JANE  CONWAY, STAFF,  SENATOR CATHY  GIESSEL, discussed  the                                                                    
changes in  the committee substitute. She  shared that after                                                                    
Senator  Giessel   had  introduced  the   bill,  Legislative                                                                    
Finance Division (LFD)  wanted to make a few  changes to the                                                                    
bill  language.  He  felt  that  the  fiscal  note  did  not                                                                    
particularly address  the impact of the  marijuana education                                                                    
and treatment  fund on the  unrestricted general  fund (UGF)                                                                    
revenue.  He   indicated  there  would  be   work  with  the                                                                    
governor's  office to  clarify  the fiscal  note. There  was                                                                    
also a suggestion  for new language that  may better reflect                                                                    
the process  of how  the money would  be deposited  into the                                                                    
fund, and  how the  legislature could  use those  funds. She                                                                    
stated that  Legislative Legal drafted new  language on page                                                                    
1, line 14 to page 2,  line 5. She stated that the rewording                                                                    
did not change the intent of the bill/                                                                                          
Co-Chair MacKinnon  WITHDREW her  objection. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
10:34:55 AM                                                                                                                   
SENATOR CATHY  GIESSEL, SPONSOR, explained  the legislation.                                                                    
She stated  that the bill established  a marijuana education                                                                    
and treatment  fund using taxes from  marijuana. The purpose                                                                    
of the  fund was  to use  a portion of  those taxes  for the                                                                    
Division  of Public  Health to  develop education  materials                                                                    
for the  public. She stated  that private  sector nonprofits                                                                    
would apply for grant money.  The Alaskan youth would be the                                                                    
target audience. She stated that  the purpose was to educate                                                                    
youth about marijuana and its  implications, law, and health                                                                    
impacts  of commercialized  marijuana. She  stated that  the                                                                    
grants   were   intended   to    go   to   local   nonprofit                                                                    
organizations, and  open to  many different  nonprofits that                                                                    
particular target youth in after school programs.                                                                               
10:36:38 AM                                                                                                                   
TREVOR STORRS,  EXECUTIVE DIRECTOR, ALASKA  CHILDREN'S TRUST                                                                    
(via  teleconference),  spoke in  support  of  the bill.  He                                                                    
stated  that   the  legalization   of  marijuana   came  new                                                                    
opportunities  and   challenges.  He  stated  that   it  was                                                                    
critical  to use  the lessons  from similar  industries like                                                                    
alcohol and  tobacco. He stressed  that inappropriate  us of                                                                    
alcohol,  tobacco,  and marijuana  led  to  a high  cost  to                                                                    
society on  a social  and economic  level. He  remarked that                                                                    
Alaska  had  faced two  challenges  related  to alcohol  and                                                                    
tobacco,   because  prevention   was  an   afterthought.  He                                                                    
remarked that it was important  to not make similar mistakes                                                                    
with marijuana.                                                                                                                 
10:40:06 AM                                                                                                                   
ALANA  HUMPHREY,  CEO,  BOYS  AND  GIRLS  CLUB  SOUTHCENTRAL                                                                    
ALASKA (via teleconference), stated  that she understood the                                                                    
importance of  resources that  continued to  provide primary                                                                    
and secondary  prevention programs between 3pm  and 6pm. She                                                                    
stressed  that children  may  be  unsupervised during  those                                                                    
hours, and far  more likely to engage in  behavior that puts                                                                    
them  at  risk  for  tobacco, alcohol,  and  drug  use.  The                                                                    
importance  of   structured  after  school  time   was  well                                                                    
Senator Stevens  wondered whether  there was  agreement with                                                                    
the  recommendations  of  Mr.  Storrs  about  who  would  be                                                                    
contracted  to conduct  the  services.  Ms. Humphrey  agreed                                                                    
that after school programs should  be a focus area. She felt                                                                    
that  it  might be  more  accessible  for all  after  school                                                                    
programs to  work with an  organization that could  focus on                                                                    
reaching  out to  programs that  may be  less proficient  in                                                                    
grant writing.                                                                                                                  
Co-Chair   MacKinnon  remarked   that  there   would  be   a                                                                    
10:44:38 AM                                                                                                                   
AT EASE                                                                                                                         
10:45:33 AM                                                                                                                   
10:46:07 AM                                                                                                                   
JILL  LEWIS, DEPUTY  DIRECTOR,  DIVISION  OF PUBLIC  HEALTH,                                                                    
DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES, recognized  the                                                                    
importance of  keeping the public informed  of the potential                                                                    
health impacts  of marijuana  legalization. She  shared that                                                                    
Oregon, Colorado, Washington,  California, and Massachusetts                                                                    
all  had  established  funding   for  abuse  prevention  and                                                                    
treatment purposes.  She stressed  that Alaska needed  to be                                                                    
counted among  those states. She  remarked that  without the                                                                    
funding provided by the bill,  Alaska lacked the capacity to                                                                    
create   the  evidence   based  public   health,  education,                                                                    
prevention and  treatment programming needed to  address the                                                                    
social  and health  consequences  of  a legalized  marijuana                                                                    
industry.   She  shared   that   the   bill  established   a                                                                    
comprehensive  program   supported  by  the   new  Marijuana                                                                    
Education and  Treatment Fund. She mentioned  that the after                                                                    
school  programs  were  a required  part  of  the  committee                                                                    
substitute,  as part  of the  community based  programs. She                                                                    
stressed  that  Alaska  monitor   use  and  knowledge  about                                                                    
marijuana during the first years  of legalized use to inform                                                                    
the  public of  the  specifics  of the  law;  and about  the                                                                    
potential  health effects  as people  begin to  use the  new                                                                    
products.  It was  also important  to  provide resources  to                                                                    
prevent  poisoning among  harmful exposures.  She felt  that                                                                    
establishing a  sustainable and comprehensive  public health                                                                    
program aimed  at marijuana misuse and  addiction prevention                                                                    
was vital to keeping all Alaskans healthy and safe.                                                                             
10:48:28 AM                                                                                                                   
ELIZA  MUSE,  SPECIALIST,  OFFICE OF  SUBSTANCE  MISUSE  AND                                                                    
ADDICTION  PREVENTION,  discussed   the  components  of  the                                                                    
program. She stated that the  idea for funding was supported                                                                    
by a 2017 resolution  from the American Medical Association.                                                                    
She  shared  that there  had  been  consultation with  other                                                                    
states  for program  design. The  components of  the program                                                                    
were  community based  marijuana  misuse  prevention with  a                                                                    
focus  on  youth  prevention, including  support  for  after                                                                    
school  programming; assessment  of knowledge  and awareness                                                                    
of  the  laws and  use  of  marijuana  products as  well  as                                                                    
monitoring a  public health impact related  to marijuana use                                                                    
and legalization; training and  program develop in marijuana                                                                    
education;    and   substance    abuse   screening,    brief                                                                    
intervention, and referral to treatment.                                                                                        
10:49:52 AM                                                                                                                   
THOMAS  AZZARELLA,  ALASKA   AFTER  SCHOOL  NETWORK,  ALASKA                                                                    
CHILDREN'S TRUST (via  teleconference), testified in support                                                                    
of  the  bill.  He  stated that  out-ot-school  time  was  a                                                                    
critical component  in preventing youth substance  abuse. He                                                                    
supported  the   Senate  version  of  the   bill,  with  the                                                                    
modifications  recommended by  the Alaska  Children's Trust.                                                                    
He  stressed that  after school  time  addressed a  critical                                                                    
safety piece for children during the hours of 3 to 6 pm.                                                                        
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
Co-Chair MacKinnon  noted a  critical difference,  and asked                                                                    
for  more information  about those  differences. Ms.  Conway                                                                    
shared that  during the  redraft process  there was  a small                                                                    
change on  page 4, line 9,  which changed the word  "and" to                                                                    
the  word  "to." She  stated  that  it  was  a typo  in  the                                                                    
original bill.  The new  committee substitute  also included                                                                    
language  that  specifically  added  community  based  youth                                                                    
services programs, with criteria  of promoting cessation and                                                                    
reducing access  to marijuana products. She  noted that page                                                                    
3, line 16 and 19  provided programs for after school hours.                                                                    
She shared  that lines 20  through 21 outlined the  usage of                                                                    
outcome-based  curricula, mentoring,  and opportunities  for                                                                    
positive activities.                                                                                                            
10:55:40 AM                                                                                                                   
Senator Stevens  expressed the change  from DHSS to  DEED to                                                                    
be responsible for  the program. Ms. Conway  stated that she                                                                    
had heard  those concerns, and  was confident that  DHSS was                                                                    
the correct place for the program.                                                                                              
Senator  von  Imhof  stated  that   she  would  reserve  her                                                                    
questions for the following day.                                                                                                
SB  128  was  HEARD  and   HELD  in  committee  for  further                                                                    
10:58:07 AM                                                                                                                   
The meeting was adjourned at 10:58 a.m.                                                                                         

Document Name Date/Time Subjects
SB 92 Explanation of Changes Ver. D to Ver. O.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Sectional Analysis ver. O.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Letters of Support.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Sponsor Statement Ver. O.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Support Doc - ADV Newsletters.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Support Doc - Case Studies.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 Support Doc - News Articles.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB92 Resolution of Support - Unalaska.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 128 - Letter of Support Boys and Girls Club.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Supporting Document MJ Use in Alaska 1-30-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
Sb 128 CS for SB128 vsn J 2-7-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Support Letter NAACP Anchorage 1-27-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Hearing Request SFIN 2-7-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Support Letter Sampson 1-5-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Summary of Changes vsn A to J 2-7-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Sponsor Statement.2 1-17-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Sectional Analysis 1-17-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Letter of Support DHSS 1-22-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB 92 Support Document-Presentation by Rachel Lord (003).pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB128 Summary of Changes Original vsn to CS(FIN) 2-27-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Sectional Analysis of CS(FIN) 2-27-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB128 Supporting Document DHSS Slidedeck 3-1-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB 128 work draft version U.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB 92 Resolution of Support - Sitka.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 128 Letter Of Support ABADA 2-28-18.pdf SFIN 3/1/2018 9:00:00 AM
SB 128
SB 92 Andy Deering Opposition Letter.pdf SFIN 3/1/2018 9:00:00 AM
SB 92
SB 92 TestimonyRadke.pdf SFIN 3/1/2018 9:00:00 AM
SB 92