SENATE CS FOR CS FOR HOUSE BILL NO. 93(TRA) "An Act relating to boating safety, registration, and numbering; extending the sunset date of changes in ch. 28, SLA 2000; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken noted that the Senate Transportation Committee committee substitute, Version 23-LS0230\U, and its accompanying fiscal notes would serve to extend the termination date of the Alaska Boating Safety Act from 2005 to 2010 and would remove the registration requirement for non-motorized vessels. LINDA SYLVESTER, Staff to Representative Bruce Weyhrauch, the bill's sponsor, stated that this legislation would extend the termination date of the boating registration program that was implemented in the year 2000. She noted that a termination date was attached to the original legislation due to concern as to whether or not the federal funds the program attracted "might be continuous." She informed that Committee that there is no indication that these federal funds, which are drawn from the Wallace Wallop-Breaux Trust Fund, would terminate. Ms. Sylvester informed the Committee that the original version of this bill eliminated the termination date section; however, a termination date was included in the committee substitute adopted by the Senate Transportation Committee (TRA). Continuing, she noted that after discussions in regarding the statewide controversy about requiring non-motorized boats to register, the Senate TRA decided to exempt all non-powered boats from the requirement. SFC 04 # 106, Side A 10:43 AM Ms. Sylvester noted that the TRA version of the bill is in compliance with federal law, which requires motorized vessels to be registered, and she spoke of the sponsor's desire that the program continue. Co-Chair Wilken noted that a representative of the Department of Health and Social Services is present to answer questions pertinent to that Department. He voiced the understanding that the Department supports the bill. Senator Dyson shared that he is a member of the Boating Safety Council. He voiced appreciation for the registration exemption for non-powered vessels as specified in Section 2, subsection (i)(4) on page two, line 12 that reads as follows. (4) a boat that is not equipped with mechanical propulsion [, THAT IS EXCLUSIVELY PADDLED, POLED, ROWED, OR POWERED BY WIND, AND THAT IS (a) UNDER 10 FEET IN LENGTH; OR (b) OPERATED IN THIS STATE FOR A PERIOD NOT EXCEEDING 30 DAYS IN A CALENDAR YEAR BY A PERSON WHO HAS NOT ESTABLISHED RESIDENCY AS DESCRIBED UNDER AS 01.10.055]; New Text Underlined [DELETED TEXT BRACKETED] Senator Dyson suggested that the word "mechanical" be replaced with the word "powered" as he is concerned the term mechanical could be confusing as such things as mechanically powered peddle-boats might be viewed as requiring registration. SUE HARGIS, Boating Safety Specialist, United States Coast Guard (USCG), responded that peddle-boats are not recognized as mechanically propelled by the federal government. Therefore, she stated that this should not be a concern because the USCG conducts the training of the State Troopers who would be involved in enforcing the law. Senator Dyson acknowledged. Senator Dyson regarded the language in Section 2, subsection (i)(6) on page two, line 22 to be redundant in that its specific reference to "umiaqs," is unnecessary as he viewed those vessels to exempted by the language in Section 2, subsection (i)(4). (6) a handmade non-motorized umiaq with a walrus or sealskin covering. Ms. Sylvester concurred. Continuing, she noted that the TRA committee adopted an amendment sponsored by Senator Olson that incorporated the umiaq reference into the bill, and she noted that this is the first time in Alaska record that umiaqs, which could be powered by motors, are referenced in legislation. Senator Dyson understood; however, asked why such things as kayaks were not also included. Ms. Sylvester agreed that it is redundant. In order to address the reason for the inclusion of umiags, she informed the Committee that according to USCG regulations, all undocumented vessels equipped with propulsion machinery must be registered in the State of principal use. This, she stressed, is the intent of this program. Senator Dyson announced that his vessels would become compliant were this bill adopted. JACK CADIGAN, Captain, United States Coast Guard Retired, and Representative, United States Coast Guard Auxiliary, stated that he was available for questions. Ms. Hargis, on behalf of the USCG, thanked the State for implementing the Boating Safety Program in 2000. She noted that Alaska was the last of the fifty states to implement such a program and as a result, benefited from other states' experiences and has become one of the leaders in such things as educational programs. She affirmed that the termination date, which would be extended by this bill, was originally included to address the continuous funding concern. Ms. Hargis noted that while the USCG is typically involved in boating safety issues when there is the need for a Search and Rescue operation, this legislation allows the USCG to be involved at the educational level and in that regard, could assist in saving lives that otherwise might be lost. Senator Olson suggested that the words "internal combustion engine" as opposed to the "less vague mechanical propulsion" term be utilized, were clarification on this issue desired. Ms. Hargis clarified that the term "mechanical propulsion" would serve to include electric engines. Senator Dyson expounded that "all definitions are problematic" as exampled by the fact that steam engines are external combustion engines. Senator Olson asked the consequence of not adopting this legislation. Ms. Sylvester responded that the program would terminate; and as a result Alaska would loose federal funding that is utilized to support educational programs. She noted that were the State to desire to continue any of these programs, general fund support would be required to replace those funds. In addition, she noted, that the boat registration process and the revenue generated from those registrations would revert back to the federal government. Ms. Hargis noted that while the registration component would continue as a federal program, the benefits to the State would dissipate. Co-Chair Wilken disclosed his involvement in an organization that, as a result of the programs supported by the Boating Safety Program, provides life jackets to youth in the Fairbanks area. Co-Chair Wilken ordered the bill HELD in Committee. [NOTE: This bill was readdressed after the Recess.] RECESS TO THE CALL OF THE CHAIR 10:53 AM / 2:50 PM SENATE CS FOR CS FOR HOUSE BILL NO. 93(TRA) "An Act relating to boating safety, registration, and numbering; extending the sunset date of changes in ch. 28, SLA 2000; and providing for an effective date." [NOTE: This bill was heard earlier in the meeting, just prior to the 10:53 AM RECESS.] JENNIFER YUHAS, Executive Director, Alaska Outdoor Council (AOC), testified via teleconference from an offnet site and, while voicing "general support" for the TRA committee substitute, urged the Committee to revoke the non-mechanically propelled vessel exemption afforded in the Version "U" committee substitute in Sec. 2, subsection (i)(4) on page two, lines 12 -15. She declared that allowing this exemption would, in effect, place the burden of funding the program on the shoulders of motorized vessel owners, when in fact, all users benefit from it. Co-Chair Green asked for confirmation that AOC is concerned specifically about language on lines 12-15 of Section 2, subsection (i)(4) rather than the entirety of the exemption language as identified on lines 12 through 19 of that section in the TRA committee substitute. Ms. Yuhas clarified that AOC is most concerned about the language on lines 12 through 15 of that section. The language in question reads as follows. (4) a boat that is not equipped with mechanical propulsion [, THAT IS EXCLUSIVELY PADDLED, POLED, ROWED, OR POWERED BY WIND, AND THAT IS (A) UNDER 10 FEET IN LENGTH; OR New Text Underlined [DELETED TEXT BRACKETED] Senator Bunde questioned the consequences that would occur were the entirety of Section 2, subsection (i)(4)(B) revised, as it would appear that it would allow a person who might, for example, not operate a motorized speed boat for more than 30 days a year, to be exempt from registering. (B) OPERATED IN THIS STATE FOR A PERIOD NOT EXCEEDING 30 DAYS IN A CALENDAR YEAR BY A PERSON WHO HAS NOT ESTABLISHED RSIDENCY AS DESCRIBED UNDER AS 01.10.055]; REPRESENTATIVE BRUCE WEYHRAUCH, the bill's sponsor, affirmed that would be the affect. Senator Bunde surmised therefore that the entirety of Sec. 2, subsection (i)(4) should be eliminated. Co-Chair Green clarified that AOC's position is that the language in Section 2, subsections (i)(4) and (4)(A) that were deleted in the TRA committee substitute be re-inserted. Senator Bunde understood AOC's concern to be that mechanized vessels would be subsidizing the program. Therefore to address that concern, he suggested that the entirety of Section 2, subsection (i),subsection (4), lines 12 through 19, be eliminated. Ms. Yuhas clarified that AOC desires to have the language on page two, lines 12 through 15, reinstated into bill. Co-Chair Wilken clarified that AOC is concerned about the language that reads as follows. (4) a boat that is not equipped with mechanical propulsion [, THAT IS EXCLUSIVELY PADDLED, POLED, ROWED, OR POWERED BY WIND, AND THAT IS (A) UNDER 10 FEET IN LENGTH; OR New Text Underlined [DELETED TEXT BRACKETED] Co-Chair Green recalled that in order to pass the original bill through the Legislative process, the language in question was added as a compromise measure because, she noted that, at the time, people who owned such things as canoes and kayaks under ten feet in length did not wish to support the program. The supporters of the original bill, she noted, assumed that everyone, regardless of whether their vessel was motorized or not, participated in recreation and would require assistance in times of need or would benefit from one of the educational programs. Therefore, she urged that this language be reinserted. Amendment #1: This language would reinstate the following language into Sec. 2, subsection (i)(4) on page two, beginning on page 12 as follows. (4) a boat that is not equipped with mechanical propulsion, that is exclusively paddled, poled, rowed, or powered by wind, and that is (A) under 10 feet in length Co-Chair Green moved to adopt Amendment #1. Co-Chair Wilken objected for discussion. Senator Dyson asked the affect of this amendment. Co-Chair Green stated that were this language reinstated, all boats exceeding ten feet in length would require registration. Representative Bruce Weyhrauch explained that the bill, after progressing through four different committee hearings, "is a compromised package." He noted that during the bill's progression through committees, AOC had spoken in support of establishing the 2010 termination date in order to more adequately assess the language being discussed in Amendment #1. He informed the Committee that were the language in Amendment #1 reinstated, then language in Section 1, subsection (2) on page one, beginning on line 11, must additionally be discussed as it addresses the same issue. Senator Bunde understood that adoption of the amendment would specify that non-powered boats under ten feet would be exempt, and that longer boats such as canoes, kayaks and other similar boats would be required to register. Ms. Hargis affirmed that Senator Bunde is correct in that were Amendment #1 adopted, non-motorized small boats such as paddleboats would require registration. She stressed that adoption of the amendment would not jeopardize compliance with federal requirements. She clarified that "the occasional users" of such things as kayaks and canoes, rather than avid boaters, requested the exemption implemented in the TRA committee substitute. Co-Chair Wilken understood therefore that were the Committee to adopt the TRA committee substitute as is, his 18-foot canoe would not require numbering and registration; however, he continued, were Amendment #1 adopted, that 18-foot boat would require numbering and registration as it exceeds ten feet in length. Senator Dyson recalled that during previous committees' discussions, small boat owners objected to registering them because they argued that many small boats are seldom utilized and therefore would not require the same measure of USCG assistance that larger, more frequently used power boats would. He voiced opposition to the amendment. Ms. Sylvester stated that the original purpose of the bill was to either repeal or extend the termination date of the Safe Boating Program. However, she pointed out that during the committee processes, the issue of whether or not to license non-motorized vessels such as rafts, rowboats, and kayaks, particularly in Interior Alaska, which were used on an infrequent basis, surfaced and became a pivotal point of discussion. She disclosed that "the bottom line" regarding this bill is the fact that the money that funds this program is derived from the federal motor fuel tax rather than from such things as registration fees. Thus, she concluded, "the logical link" in this legislation is the fact that federal regulations specifically require boats propelled by motorized mechanisms to be registered. While voicing appreciation for AOC's position, she observed that there are impassioned positions on both sides of the argument. To put the cost of registering "in perspective," she pointed out that the cost of registering a vessel is $3.33 per year. In summary, she stated that removing the language in question was a policy call on the part of the TRA committee, and she stressed that, "for the price," the Boating Safety Program "is a great program." Co-Chair Wilken reviewed the amendment and concluded that a vote for the amendment would reinstate language on page two, lines 12 through 15 that was omitted by the TRA committee. Thus, he stated, adoption of the amendment would serve to continue the original bill's language in that any non-motorized boat, ten feet in length or longer, would be required to register. Senator Dyson asked how many non-mechanized vessels have been registered since this program's implementation. Ms. Hargus stated that, "there has been compliance" with the program and that approximately 25,000 vessels have registered. She noted that prior to the program's transferal from federal control to the State, approximately 33,000 boats were registered and that after the transfer, the numbers increased to approximately 85,000 overall. She disclosed that upon a USCG review of Search and Rescue (S&R) responses that were conducted, it was determined that approximately ten percent of the total S&R responses involved non- motorized boats. Senator Dyson calculated that approximately 25-percent of the entire number of non-motorized vessels in the State that should be registered, are. Continuing, he stated that adoption of this amendment would make the owners of the remaining 75-percent non- compliant, and therefore subject to sanction. Therefore, he asked the penalty for non-compliance. Representative Weyhrauch stated that, the previous year, he had been cited for non-registration of a 16-foot Boston Whaler skiff. He disclosed that he had received a citation and was required to comply with USCG licensing regulations. Senator Dyson asked whether his picture was published in the paper. Representative Weyhrauch responded in the negative, and stated that once he had complied with the requirements, the case was dismissed. Senator Dyson understood therefore that no fine was levied. Representative Weyhrauch stated that he was required to comply with the requirements and did not have to pay a fine. Senator Olson spoke against the amendment. Ms. Hargus stated that were the State, rather than the USCG, to have cited Representative Weyhrauch, a $50 fine would have been levied for the offense. Co-Chair Wilken, noting that the end of this Legislative Session is nearing, asked how the adoption of this amendment would affect further action on this bill. Representative Weyhrauch opined that this action would negatively affect the bill's passage. Senator B. Stevens understood that the amendment would reinstate the registration for non-motorized vessels that are ten feet in length or longer and would not require registration for non- motorized vessels less than ten feet. He declared a conflict, as he owned boats in each category. Senator B. Stevens asked the reason that the adoption of the amendment "would dislodge the bill from concurrence." Representative Weyhrauch responded that getting agreement, in light of the controversy regarding the termination date and the non- motorized vessel registration issues, might be difficult. In response to a question from Senator B. Stevens, Ms. Hargus clarified that the registration issue pertains to non-motorized boats, as all motorized vessels would continue to be required to register. Representative Weyhrauch reiterated that the motorized boat registration requirement is because of the federal motor fuel tax. Ms. Sylvester pointed out that the bill would not have reported from the TRA committee were the exemption for non-motorized vessels not incorporated. She stated that the individuals who opposed the requirement that non-powered vessels be registered would again voice their objection to the bill were this language reinstated. Co-Chair Wilken voiced that delaying the bill would be problematic. Senator B. Stevens asked regarding the registration fee. Representative Weyhrauch responded that the three-year registration fee is ten-dollars. Ms. Sylvester stated therefore, that the cost is $3.33 a year. Senator Olson spoke against the amendment due to its negative affect on the use of small non-motorized boats in Rural Alaska. He stated that this is another example of an un-necessary layer of government. Senator Bunde stated that "for the greater good," he would oppose the amendment. However, he suggested that those who disagree with paying $3.33 a year should not receive S&R support. Co-Chair Green reminded the Committee that the original Boating Safety Program legislation would not have been enacted were the exemption awarded to non-motorized vessels under ten-feet not incorporated. She opined that all boaters should support the program as all benefit from it. Representative Weyhrauch acknowledged Co-Chair Green' comment. A roll call was taken on the motion. IN FAVOR: Co-Chair Green OPPOSED: Senator Hoffman, Senator Olson, Senator B. Stevens, Senator Dyson, Senator Bunde, and Co-Chair Wilken The motion FAILED (1-6) The motion to adopt Amendment #1 FAILED. CLIFF JUDKINS, Chair, Alaska Boating Association, testified via teleconference from Mat-Su, to share that the Association's 1,200 membership consists of both power and non-power boaters. He noted that his testimony is "moot" as it pertained to Amendment #1 that the Committee failed to adopt. Senator Bunde moved to report the bill from Committee with individual recommendations and accompanying fiscal notes. There being no objections, SCS CS HB 93(TRA) was REPORTED from Committee with zero fiscal note #3, dated January 13, 2004 from the Department of Natural Resources and negative $24,800 fiscal note #4, dated January 16, 2004 from the Department of Administration.