HB 131-ABANDONED AND DERELICT VESSELS  2:19:58 PM CHAIR P. WILSON announced that the final order of business would be HOUSE BILL NO. 131, "An Act relating to abandoned and derelict vessels." 2:20:03 PM REPRESENTATIVE PAUL SEATON, Alaska State Legislature, stated that HB 131 relates to derelict vessels. He referred to several additional supportive documents in members' packets, including a resolution from the City of Cordova and the City of Ketchikan. He said that this bill was based primarily on a request from the Alaska Association of Harbormasters and Port Administrators. This bill would address a costly and growing problem of derelict vessels in Alaska. He stated that due to fishery consolidations which occurred in the 1990s, the state has been left with numerous vessels that are now deteriorating or have been sold to parties lacking the financial capability to maintain them. This has led to vessels being abandoned or becoming derelict, which takes up significant room in Alaska's harbors or uses moorage space. Ultimately, municipalities must resolve the problem of abandoned and derelict vessels. For example, a vessel sank in Cordova and it took two years to resolve the issue of the 170- foot landing craft, which ultimately cost the municipality more than $1.2 million in disposal costs. REPRESENTATIVE SEATON pointed out a notable example when two seiners sank in Kachemak Bay and the U.S. Coast Guard and DOT&PF spent $250,000 to dispose of the vessels. He explained the DOT&PF is the entity that originally built the state's harbors so the authority to address derelict and abandoned vessels rests with the DOT&PF. However, he advised that Department of Natural Resources (DNR) has the authority over state waters and state lands. Thus, when a derelict vessel is anchored in state waters and sinks, the DNR has the responsibility; however, the DOT has the authority, yet the USCG oversees any issues related to fuel or petroleum leaks. This bill, HB 131 would attempt to create a multi-agency approach and provide relief for municipalities who own harbors transferred to them. However, many municipalities don't have local authority to address the abandoned and derelict vessels. Thus, HB 131 would coordinate the activities. Additionally, HB 131 would create a requirement that if a vessel was denied entrance into a harbor due to its derelict status, the vessel may not be stored for more than 14 days without removing any petroleum products and hazardous materials. 2:24:00 PM REPRESENTATIVE SEATON emphasized the importance of removing these materials timely rather than wait until the vessel sinks and the materials are released, often during storms, leading to expensive salvage operations. Again, this bill would establish the framework to address abandoned and derelict vessels and clearly lays out the procedures for the state or municipality to handle the vessels. Thus far, he is not aware of any opposition to the bill. He pointed out a March 18, 2013 Seattle Times article, entitled, "Ship Owner Gets More Than He Bargained For - Prison time." He reported that it cost $22 million to resolve this specific salvage issue. He characterized vessel disposal under the bill as being preventive in nature. He described some difficulties that have arisen in recent times. In response to a question, he stated that the bill has a zero fiscal note. 2:27:24 PM REPRESENTATIVE FEIGE said he wholeheartedly supports the bill, noting the City of Valdez has brought this issue to his attention. He acknowledged that the City of Valdez has experienced significant issues with derelict vessels. He stated that a derelict vessel can lie on a beach within the municipality and often times the vessel is abandoned when the owner loses his/her job or runs out of money. In those instances the vessel is abandoned in the harbor. Typically, unmaintained vessels sink, especially in Valdez since when the significant snow accumulation is not shoveled off. At that point, it becomes the City of Valdez's problem, including all the costs associated to accomplish the cleanup. He said he supports any efforts the legislature can take to help local government entities address this issue. CHAIR P. WILSON related the City of Wrangell is also working on this issue and is working to change come of its bylaws. REPRESENTATIVE SEATON remarked that frequently boats are stored over an extended period of time by tipping them upside down. The bill contains an exception for the traditional practices outside municipalities; and within municipalities, the local government can regulate the practice. Additionally, HB 131 does not apply to vessel storage on private land, but only applies to public land and waters. 2:29:38 PM REPRESENTATIVE FEIGE asked for clarification on the relationship and responsibilities of the USCG. REPRESENTATIVE SEATON answered two methods exist to register boats. First, documented vessels are ones that are documented with the U.S. government and in times of war the government could use the vessel. Second, state vessels are under five-ton net weight and are identifiable by the "AK number" listed on the side of the bow. He initially shared Representative Feige's concern over the relationship with the USCG, but the harbormaster has not had any issues between documented or undocumented vessels in derelict situations. He pointed out the USCG has responsibility for oil spills, but if the spill is in state waters, the DOT&PF and DNR coordinate pulling the vessel and dismantling it. In further response, Representative Seaton clarified that any vessel used for commercial purposes weighing five tons net or over must be a documented vessel, although he noted that yachts can't be used for commercial purposes. 2:32:00 PM REPRESENTATIVE ISAACSON asked whether someone wanting to take possession of the vessel would pay the state agency any port fees owed. He wondered whether municipalities must absorb losses if the vessels are sold at auction and the expenses incurred by the municipality are not covered. REPRESENTATIVE SEATON acknowledged that municipalities often attempt to recover funds. He said if the value is under $100 municipalities can dispose of vessels without going to the expense of public noticing, which adds costs. In fact, he cautioned against municipalities selling derelict vessels since these vessels may be purchased but end up in the harbor again. Thus, it is often better to dismantle any vessels with low value. However, he related these decisions can be made by the local harbor and this bill would give the local harbor the authority to address abandoned and derelict vessels. 2:34:14 PM REPRESENTATIVE LYNN recalled seeing vessels along Thane Road in Juneau. He asked whether this bill would cover these vessels. REPRESENTATIVE SEATON was unsure of specific vessels; however, this bill will provide municipalities the ability to handle vessels within the municipality, but it does not require them to do so. 2:35:00 PM STEVE CORPORAN, Director, Ketchikan Port & Harbors, City of Ketchikan; President, Alaska Association of Harbormasters & Port Administrators, stated that the sponsor did an excellent job outlining the intent and salient and key factors. He said that the City of Ketchikan has strong statutes regarding abandoned and derelict vessels. This bill, HB 131, will help strengthen state and municipal authority. For example, since Ketchikan is proactive, a derelict vessel often will leave the harbor before it is impounded, but will not travel far. In fact, owners often take the vessels just outside Ketchikan's jurisdiction to state lands, anchor out, and the vessels sink and become expensive salvage jobs. The USCG usually gets involved after the vessel sinks and the cost exponentially increases as compared to costs to remove the vessel prior to it sinking. This bill would help pull the team members together to give them authority to impound the vessels before they sink. 2:37:14 PM RACHEL LORD, Statewide Coordinator, Alaska Clean Harbors Program; Outreach and Monitoring Coordinator Cook InletKeeper, stated the Alaska Clean Harbors is a voluntary statewide program that works with harbormasters to improve resources and tools for waste management, pollution prevention, and customer service activities. She testified that HB 131 is a strong step forward to improve the ability of Alaska's municipalities and state agencies to effectively address abandoned and derelict vessels along Alaska's vast coastline. She explained that many coastal municipalities lack the legal framework within their municipal codes or to navigate the maritime law to effectively address these vessels. No longer the owner of the majority of Alaska's harbors, the DOT&PF does not have the staffing or mandate to solely manage abandoned or derelict vessels in harbors and state waters as specified in current statutes. She suggested that the state should look to states, such as Washington, who have spent millions of dollars addressing abandoned and derelict vessels on their coasts and rivers. The high cost associated with these vessels has helped spur states on to take legislative action and create coordinated efforts and provide a structure to address these real environmental and financial concerns. This bill, HB 131, will help Alaska begin to move in the right direction with common sense and immediately make useful changes to outdated state statutes. She offered her belief that Alaska has enjoyed a relatively young fleet of actively working vessels. She highlighted that it is increasingly not the case as the fleet ages and she predicted an increase in derelict vessels. She said that these vessels are increasingly littering the coast line and share the waters with commercial, subsistence, and personal use fisheries and shellfish beds. In conclusion the Alaska Clean Harbors strongly supports passage of HB 131. 2:39:19 PM ROGER HEALY, Chief Engineer, Department of Transportation & Public Facilities (DOT&PF), provided some background, such that in 1975 the original statute was written at a time when the state had the Department of Public Works (DPW). During Governor Hammond's administration the DPW and the Department of Highways was merged into the DOT&PF. The authority came to the DOT&PF, he said. Since the mid-80s the DOT&PF has transferred authority of approximately 100 harbors to municipalities, which represents approximately 75 percent of the harbors. The authority to address abandoned and derelict vessels is contained within this bill. Others have spoken well about the issue, but this bill is needed now. He offered the DOT&PF's support for HB 131. CHAIR P. WILSON remarked she recently told a reporter that the wheels of government turn slowly. 2:41:42 PM CARL UCHYTIL, Vice-President, Harbormasters and Port Administrators (AAHPA); Port Director, City and Borough of Juneau (CBJ), stated that the AAHPA in its resolution 2012-02 strongly urges support to changes in AS 30.30 for abandoned and derelict vessels. The AAHPA believes that delegation of authority under state statutes to local municipalities is a step in the right direction in turning the tide of abandoned and derelict vessels in the state. He stated that the condition of vessels that operate in Alaska is diverse and ranges from modern yachts and well-maintained 80-year-old wooden trawlers, to relatively but decrepit live aboard vessels to turn of the century abandoned tugboats. The harbormaster has continually sought tools to best manage the harbor facilities while keeping a vigilant eye on vessels with encroach on tidelands. This bill would give the harbormasters throughout the state authority to address the liabilities and hazards of abandoned and derelict vessels, which is especially important in smaller coastal communities where legal and enforcement resources are not readily available. He explained that the construction of operations and harbors by the DOT&PF resulted in regulations that empowered only DOT&PF to deal with troublesome vessels. MR. UCHYTIL said that expanding the language to allow not only DOT&PF, but other state agencies and municipalities to address the abandoned and derelict vessels appears to be sound legislation. Further, the proposed delegation of authority to local municipalities would help refine the relationship between the state, city, and borough responsibilities and will enable harbormasters and communities with limited legal resources or limited ordinances to act with competence in prosecuting abandoned and derelict vessels. Additionally, the proposed changes to AS 30.30 in HB 131 appear to provide authority for the state and municipalities to act in a timely manner to dispose of vessels before these vessels sink. He emphasized the importance of this since the disposal cost associated with vessels when afloat is a fraction of the cost once the vessels take on water and become submerged or discharges fuel oil. In conclusion, he said the AAHPA thanks members for their consideration of this important issue for Alaska's coastal communities. CHAIR P. WILSON characterized this type of legislation as one that can assist communities without adding cost to the state, represents a good opportunity for the state. 2:45:05 PM CHAIR P. WILSON, after first determining no one else wished to testify, closed public testimony on HB 131. 2:45:21 PM REPRESENTATIVE ISAACSON moved to report HB 131 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 131 was reported from the House Transportation Standing Committee. 2:46:21 PM