HJR 18 - FEDERAL MARINE TRANSPORTATION SAFETY ACT CO-CHAIR ELKINS announced that the final order of business would be HOUSE JOINT RESOLUTION NO. 18 Relating to the federal Maritime Transportation Security Act of 2002 and the state's right to tax commercial passenger vessels. 2:47:31 PM CODY RICE, Staff to Representative Carl Gatto, Alaska State Legislature, sponsor, relayed on behalf of Representative Gatto that HJR 18 asks Congress to clarify or repeal Section 445 - proposed 33 U.S.C. 5(b) - of the Maritime Transportation Security Act of 2002. This provision was put in place to prevent Yakutat from taxing cruise ships that sailed by Yakutat and did not stop at its port. He added that the aforementioned provision essentially says that all taxes must be no more than a small burden on interstate commerce and must be used either to compensate [a community] for services rendered to the vessel or to increase the efficiency and safety of interstate commerce. MR. RICE offered his belief that this provision has been interpreted rather broadly by some groups, thus resulting in disagreements regarding the meaning of the provision. He mentioned that a Fairbanks Daily News-Miner article contains comments [by spokespersons for U.S. Senator Ted Stevens and U.S. Congressman Don Young], and that a copy of that article has been included in members' packets. 2:49:14 PM CO-CHAIR ELKINS said he would not characterize the comments in the article as either U.S. Senator Ted Stevens or U.S. Congressman Don Young "weighing in" on the issue. He said his concern with HJR 18 is that the legislature didn't really open up a dialog with either U.S. Senator Ted Stevens or U.S. Congressman Don Young before having "gone public with it." He concluded by saying, "I don't care for it." MR. RICE replied: I don't know that that's necessarily entirely correct. This [section] actually applies specifically to several taxes that may already be existing throughout the United States, and I, myself, have been in contact with both [U.S. Senator Ted Stevens's] chief of staff, [and U.S. Congressman Don Young's] transportation drafting attorney on several instances and have discussed this particular provision with them. And in fact, last summer, there was some talk of including some kind of a clarification in the "Coast Guard bill" that passed. It didn't happen, but it is something that we've ... [had] existing conversations ... [about, though] it has been several months. ... 2:50:24 PM REPRESENTATIVE THOMAS said he didn't like the resolution, and didn't want to embarrass the Senator and Congressmen with it by using it tell those gentlemen that they made a mistake. He also noted that no one raised the issue when those gentlemen recently addressed the legislature. MR. RICE said that nothing in the resolution claims there was a mistake made in the drafting of the Maritime Transportation Security Act of 2002, and noted that neither the Senator nor Congressman have corrected the comments made by their spokespersons. 2:52:03 PM REPRESENTATIVE THOMAS pointed out, however, that the first portion of the resolution claims that the Act's sponsor has stated that the Act was never meant to prevent Alaska from imposing a head tax, but doesn't actually state who the sponsor is. MR. RICE said the sponsor of that specific provision is U.S. Congressman Don Young, and opined that spokespersons commonly speak on behalf of their employers. He noted that according to the newspaper article, comments that [Section 445 of the Maritime Transportation Security Act of 2002] was never intended to prevent state or local governments from imposing a head tax were made by Congressman Young's spokesperson. REPRESENTATIVE THOMAS asked why Congressman Young sponsored the language in that provision. CO-CHAIR GATTO offered his understanding that Congressman Young offered that language in response to local laws passed in Yakutat. He suggested that the language of the provision has resulted in unintended consequences, and offered that the resolution merely asks Congress to clarify the issue. CO-CHAIR ELKINS opined that there is an easier way to communicate with U.S. Senator Ted Stevens and U.S. Congressman Don Young than by passing a resolution, which, he suggested, could embarrass those gentlemen. He reiterated his belief that the legislature has not yet made an effort to discuss the issue with the provision's sponsor. 2:55:30 PM REPRESENTATIVE KAPSNER said that she doesn't know enough about the issue to agree with the statements being made in the resolution. She pointed out that generally when she wants to communicate with or deliver a message to someone, she sends him/her a letter directly. She asked Co-Chair Gatto whether his intent in sponsoring the resolution was to get the public on board. CO-CHAIR GATTO said that he doesn't know whether the public knows about this issue, and suggested that a resolution of this sort is a logical follow-up to the aforementioned conversations his staff has had with U.S. Senator Ted Stevens's and U.S. Congressman Don Young's spokespersons. 2:56:37 PM REPRESENTATIVE NEUMAN asked Mr. Rice and Co-Chair Gatto whether either of them had written to U.S. Senator Ted Stevens, U.S. Senator Lisa Murkowski, or U.S. Congressman Don Young to request that this issue be clarified at the federal level. MR. RICE reiterated that he has had at least a dozen conversations with [U.S. Senator Ted Stevens's] chief of staff [and U.S. Congressman Don Young's] transportation drafting attorney on this subject. REPRESENTATIVE KAPSNER asked if anything has been put in writing. MR. RICE said such has not been done, that phone conversations were considered a more expedient form of conversation. He again said that the resolution merely asks for clarification on a contentious issue. 2:57:53 PM REPRESENTATIVE NEUMAN asked whether the committee wanted to request that Co-Chair Gatto write to the members of Alaska's congressional delegation and ask them to provide the committee with a written response on this issue. Such a letter might appease members' concerns, he suggested. CO-CHAIR ELKINS acknowledged that such could be done, but noted that the cruise ship industry was present and might wish to testify on the bill. 2:58:47 PM REPRESENTATIVE THOMAS instead expressed a preference for tabling the resolution and then contacting the members of Alaska's congressional delegation in writing on this issue. REPRESENTATIVE THOMAS made a motion to table HJR 18. There being no objection, HJR 18 was tabled.