HB 108-USE, REGULATION, AND OPERATION OF BOATS  REPRESENTATIVE BILL HUDSON, sponsor of HB 108, gave the following overview. HB 108 will establish a comprehensive recreational boating safety program in Alaska. It will transfer vessel registration from the U.S. Coast Guard to the Alaska Division of Motor Vehicles (DMV), allowing persons to register a boat at any DMV office by mail, on-line, or with boat dealers. Regulatory authority for boat safety equipment required by federal and, in some cases, state statute would essentially remain the same. The bill specifies required safety equipment for boats by class and updates the standards for life jackets. No new state money will be required; the program will be paid for with Wallop/Breaux funds, the registration fees collected by DMV, and the reimbursement of federal marine taxes. The emphasis of HB 108 is on educating people about boating safety. Alaska has no way to go but up as it already suffers ten times the national average of marine recreation deaths. Every other state has established a similar program and most have cut their marine fatality rates in half. TAPE 00-20, SIDE B REPRESENTATIVE HUDSON continued. With the longest coastline in the United states and more lakes, rivers and streams, Alaska should want to prepare its citizens with the best knowledge and equipment available to save lives. He envisions a program in which the State partners with the U.S. Coast Guard Auxiliary. He does not envision a huge new bureaucracy. He is absolutely convinced that HB 108 will save lives. REPRESENTATIVE HUDSON discussed the changes made in the proposed Senate Resources Committee substitute. First, the exemption for non-mechanical boats was removed on page 10, line 13. He stated that HB 108 originally included small boats. About half of the states include them. The Coast Guard does not require registration for small boats because it focuses on power boats which present more serious hazards, such as explosions and fires. He pointed out that many drowning fatalities in Alaska occur from travel in canoes, kayaks, and other small craft. The House desired to remove small craft from mandatory registration but to allow voluntary participation. The Senate Resources CS also removed, on page 9, line 1, the phrase, "ten foot or greater in length." When drafting the bill, he chose that length because many recreational boaters carry small shuttle boats on their power boats. He recommended putting that phrase back in the bill. SENATOR MACKIE asked Representative Hudson if that is the only change in the CS that he takes exception to. REPRESENTATIVE HUDSON replied there are three changes that he disagrees with. He said the exemption for non-mechanical boats is the committee's call. He cautioned that issue was contentious on the House side so it may be difficult to get the House to agree to the change. He personally does not believe that non-mechanical boats fall into the same class as power boats which deal with fires and explosions but he repeated that is a policy call. SENATOR MACKIE asked if non-mechanical boats will have to be registered under the CS. REPRESENTATIVE HUDSON said that is correct. CHAIRMAN HALFORD indicated two questions are being discussed and that he agrees with Representative Hudson that boats ten feet or smaller should be exempt. He said the problem is that about one- third of the fatalities occur when people are boating in the smaller class of boats. He noted that he has been contacted by power boat associations who do not like the bill but feel strongly that if enacted, it should apply to all boaters. SENATOR MACKIE asked if exempting boats ten feet or smaller will be a half-way point. CHAIRMAN HALFORD stated it will at least remove some of them. REPRESENTATIVE HUDSON clarified that would exempt any vessel under ten feet without power from the registration requirements. Any boat ten feet or longer will have to have a decal and be registered every three years like power boats. CHAIRMAN HALFORD noted the difference is between a dinghy and a canoe. Most people carry dinghies on their power boats that are less than ten feet but canoes and kayaks are usually longer than ten feet. REPRESENTATIVE HUDSON said leaving the exemption for boats ten feet or smaller would give some relief. He stated the next area of concern, which he believes is a policy call, is placing the authority for this program with the Department of Public Safety (DPS) rather than the Department of Natural Resources (DNR). He pointed out that the original boating safety program in Alaska, which is in statute, requires life saving equipment and reporting. That program was originally under the purview of DPS but Governor Knowles transferred it to DNR's Division of Parks in 1998. The Coast Guard will give the State the authority to manage this program regardless of which department it is housed in. He felt DNR is more appropriate because the emphasis of the program is on education rather than enforcement. SENATOR MACKIE asked if the proposed CS recommends placing the program in DPS and what position DPS has taken. CHAIRMAN HALFORD said it would be housed in DPS and that DPS does not want the program without the money. He indicated that his constituency has expressed concern that placing the program under the Division of Parks will give that division enforcement authority over all navigable waters in the State. REPRESENTATIVE HUDSON responded that the bill contains specific language that prevents any provision in the bill from being used to deny access. It also includes a provision that requires boarding by enforcement agents to be based on probable cause. Under current law, agents can board without probable cause. The penalty provision was also changed so that a judge will establish the fee. He said he reached pretty far to try to satisfy many concerns. He could not change Section (g) on page 9 to provide life time registration because federal law requires that registration be for no longer than three years. He repeated that, as far as he is concerned, the new provision regarding the non-mechanical boats is a policy call and it would not prevent the program from being implemented as long as he can get the votes on the House side. The House chose to provide that exemption and to offer voluntary registration because many groups of paddlers who testified were in favor of being in the program. SENATOR MACKIE asked Representative Hudson his opinion of putting the program in DPS. REPRESENTATIVE HUDSON answered he prefers DNR. He wants to keep the program educational plus, while the bill was on the House side, the possibility of DPS was not raised so House members never had the opportunity to hear from DPS about how it would administer the program. He added that DMV will be able to take care of the registration. The bill requires 75 percent of the federal marine taxes that will be returned to the State to be spent on boating safety education in an effort to limit the bureaucracy. In addition, the bill only provides for five positions to administer the program; three employees to register boats at DMV and a program director and assistant. He noted that he can live with the change to DPS and the provision requiring registration of boats under ten feet, but he cannot live with the life time registration because that will kill the bill. Regarding approval by the Coast Guard, Representative Hudson said it has approved the preliminary plan that he put together. The Coast Guard laid out the parameters the State will have to meet. CHAIRMAN HALFORD noted the three differences in the proposed CS are the change to DPS, perpetual registration, and required registration for all boats versus power boats versus boats over ten feet. He pointed out that a commercial trailer using the highway can be registered for life at a cost of $10 but a canoe with an electric outboard will have to register every three years because of a federal requirement. He was interested in getting the Coast Guard to agree to long term registration as a condition of establishing the program. REPRESENTATIVE HUDSON said, from his professional experience in the Coast Guard, he believes the three year registration system will provide a search and rescue tool. To identify a boat with an owner, registrations need to be updated. The Coast Guard has always limited registration length to no more than three years because it wants to keep the information that ties the owner to the boat current. CHAIRMAN HALFORD said he does not disagree with that idea, but Alaska has less than 50 percent participation in boat registration, particularly in rural Alaska. He noted the $600,000 that will come from registration fees is now in the hands of Alaskans because they do not comply. That amount will double if a state program is enforced. Number 1502 ADMIRAL THOMAS BARRETT, U.S. Coast Guard, discussed the following points. HB 108 will affect every region of Alaska. About half of the drowning deaths in Alaska happen on the coast, the other half happen on inland waters. He asked legislators to consider the fact that prior to passage of the Fishing Vessel Safety Act in 1994, deaths in the fishing industry each year were double what they are now. That experience suggests that if the Legislature passes safe boating legislation, a reduction in the number of recreational boating fatalities will occur. The price of that success will be the cost and the registration requirement. The Coast Guard has no discretion over the length of the registration period; the three year limit is written in the federal Boat Safety Act. The public policy reason for that three year requirement is the need for current information to make this program successful. Admiral Barrett recounted a recent incident in which a Coast Guard cutter travelling South from Kodiak in March sighted an overturned skiff on the beach. Coast Guard personnel investigated and surmised that the boat had been there for awhile, however had the boat recently washed up, with no registration information the Coast Guard could not have followed up on that accident. That type of event is not uncommon in Alaska. ADMIRAL BARRETT said about 23 states provide for three-year registration programs while about 20 provide for one-year registration and some for two years. Six states provide for registration periods from one to three years, at the option of the owner. He thanked committee members for considering HB 108 as it will help the citizens of Alaska for many years to come. Number 1231 SENATOR MACKIE asked Admiral Barrett to comment on the exemption for non-mechanical boats or boats under ten feet. ADMIRAL BARRETT responded that about half of the states exempt smaller boats. The Coast Guard's regulations apply to motorized craft with no length restriction because motorized craft tend to operate on bigger water and have a fire and explosion risk. He pointed out that Representative Hudson is correct in that one-third of the drowning deaths from recreational boating in Alaska happen in non-motorized craft. He felt the exemption for boats under ten feet addresses the concern about the dinghies used by boat owners to get to and from a moorage. He felt that question is a state policy issue. CHAIRMAN HALFORD said regarding the perpetual registration issue and search and rescue, the Federal Aviation Administration provides for perpetual registration of aircraft. He asked why a different approach is taken by a parallel federal agency. He noted that some states require annual registration to bring in more money. SENATOR MACKIE felt it is a given that a revenue stream is necessary to provide educational programs. He repeated that 75 percent of the income will have to be used for education programs. He pointed out that the three-year registration requirement was established by federal law so there is no way to get around that. CHAIRMAN HALFORD indicated that most people are more concerned about remembering to register every year rather than the cost of paying for several years at a time. SENATOR MACKIE commented that having grown up around the water, he has participated in many search and rescues so he can appreciate the need for updated vessel registrations. He added that in many cases, the only way to verify whether someone was in distress after finding a beached boat was to call the home to find out if anyone was lost. He felt the most important aspect of this bill is the ability to provide ongoing education for children because he sees many kids driving skiffs with no life jackets. He noted the issue of where this program resides is unimportant in light of the need for the program and the number of lives that can be saved. Number 946 MS. SUSAN HARGIS, U.S. Coast Guard, informed committee members that she manages boat registrations statewide, and that she gets about a ten percent return rate from renewal notices because people move and she does not get current information. A significant percentage of the renewal notices are returned with a forwarding address so she is able to track people down. The three-year registration period enables her to do that. MR. DAVID THOMPSON, Division of Public Health (DPH), Department of Health and Social Services, said DPH wishes to go on record in support of HB 108. Alaska's rate for unintentional drowning death is the highest in the nation, and ten times the national average. The comprehensive and statewide boating safety program is expected to drive this rate down and save the lives of numerous Alaskans. DPH became involved in the Kids Don't Float program in 1997. That program has expanded to 170 sites around the state and is credited with saving four lives. DPH also applauds the efforts of the Tanana Chiefs Conference, the Yukon Kuskokwim Health Corporation and other Native organizations for making float coats available in rural areas and promoting their use. DPH pledges to continue to support health and safety programs geared toward drowning prevention. Number 803 MS. SHARON LOBAUGH, Alaska Safe Kids, thanked Representative Hudson for sponsoring HB 108 as she feels passionate about this issue. Alaska Safe Kids is the only organization in the nation organized to prevent childhood injuries. Alaska's program is tied to National Safe Kids, which has corporate sponsors and several thousand chapters. Data shows that more children die from injuries, not disease. Alaska Safe Kids strongly supports HB 108 because drowning is a major reason for child fatalities. After hearing testimony and debate on HB 108 in the House, she learned of the large number of people who have had some personal experience with fatalities from drowning. She discussed the public's enthusiasm at the start of the Kids Don't Float program in Homer and incidents in which this program saved lives. CHUCK HOSACK, Deputy Director of DMV, stated the fiscal note passed by the House only applies to power boats. If HB 108 passes, approximately 75,000 boats will have to be registered. If the Legislature adds the provision requiring non-powered boats to register, the number of required boats will increase to 100,000 which will have a significant impact on the fiscal note. It will increase DMV's workload but it will also increase revenue by about $333,000 per year. He suspects that if a one-year registration period is offered, most people will choose that rather than pay for three years at a time. The snowmachine registration program allows for either a two, four, or six-year registration period. Of the 23,000 registered snow machines, only four owners opted for the four-year registration and, as of December, no one opted for the six-year registration. He favors a three-year registration period because if the period is longer people will not update their addresses. The registration expiration date provides a means to do that, even if boats change ownership within the three-year period. He offered to answer questions. CHAIRMAN HALFORD asked if the fiscal note Mr. Hosack was speaking to applied to the version of HB 108 that went to the House floor before it was amended. MR. HOSACK said it is. CHAIRMAN HALFORD explained that fiscal note would then apply to the proposed CS before the committee. MR. HOSACK said that version had additional positions to cover the registration of non-powered boats. CHAIRMAN HALFORD asked if the House version, before it was amended on the House floor, exempted boats under ten feet in length. MR. HOSACK said that is correct. TAPE 00-21, SIDE A MR. DON SHERWOOD, a boater in Alaska for over 30 years, stated he believes the authority for this program should be moved from DNR to DPS because of DNR's record of limiting and restricting access to state waters and lands. Second, regarding registration, he thinks if all boaters are going to use this program, all should pay. He has rescued non-motorized boats with no registration numbers which encouraged searches that did not need to happen. He believes Alaska needs a Boating Safety Act and he asked committee members to consider his suggestions and pass the legislation. Number 131 MR. MIKE FOLKERTS, Chairperson of the Alaska Boating Safety Advisory Council, made the following points. The federal money for this bill and the State match will not go into the general fund. This means users will definitely be getting the benefit of their money. Much of this bill already exists in federal and state statutes. HB 108 will give the State the authority to promulgate regulations and it will give oversight authority to the Boating Safety Council. Enactment of HB 108 will greatly reduce the number of drowning deaths in Alaska by providing money for education, money that Alaska now sends to other states. He asked the committee to pass HB 108. MR. ROGER MCCAMPBELL, a resident of Homer, said he was speaking on his own behalf although he has worked for DNR for 12 years and did search and rescue work for the federal government for 15 years. He supports HB 108 but believes the program should be housed in DNR as the focus of the program is on education. DNR has been administering an educational program for the past three years. MR. ALAN PARKS, a commercial fisherman, stated support for HB 108. He noted when the Commercial Fishing Vessel Safety Act was enacted, industry people were apprehensive about it but they have found that it contained practical requirements that work. In 1997, his boat rolled over and sank. Had he not been trained to operate his safety equipment, he would not be alive today. He favors placing the program in DNR and asked committee members to pass HB 108. MR. MAKO HAGGERTY, a water taxi operator in Kachemak Bay, thanked Representative Hudson for all of the work he has done on this bill and asked committee members to support it. Many of the foolish activities that occur on the water could be curtailed with education rather than enforcement. He believes that DNR is the better agency to oversee the program. Number 903 CHAIRMAN HALFORD noted the Department of Administration runs the registration part of the program and that the other two parts of the program are education and enforcement. He repeated that he has no problem with DNR administering the education part of the program but his constituents are very concerned about DNR having enforcement authority over all navigable waters in the State. He asked if there is a way to separate the education and enforcement components of the program. REPRESENTATIVE HUDSON responded that separating the two components would work within the memorandum of understanding with the Coast Guard. He indicated the question of who can board and enforce came up on the House side. He was told that under current law, any peace officer, including Fish and Wildlife Protection officers and Coast Guard officers, are authorized to enforce the law. He asked for a little time to work on some language to address Chairman Halford's concern. SENATOR MACKIE said that most people in his communities would not recognize a State park ranger because they are surrounded by federal land therefore, if a park ranger tried to enforce this program, a serious misunderstanding could occur. He agreed that splitting the two components among DNR and DPS is a good idea. Regarding the lifetime registration, Senator Mackie said he favors the three-year registration period. He asked Chairman Halford if his intention is to tighten the bill by including boats under ten feet. CHAIRMAN HALFORD replied that he is proposing to include all boats as the original House version did in response to his constituents' concerns. His main concern is the issue of the lifetime registration but if that provision is forbidden by federal law, changing it will not work. He believes the FAA does very well at locating and identifying airplanes and it offers a lifetime registration. The FAA periodically sends out activity reports to registrants asking for updated information. He suggested continuing to push for the lifetime registration and including a sunset provision in the bill to give the Coast Guard an incentive to get the federal law changed. He stated in reality, two-thirds of the areas in which the most drownings occur will not have any of these programs or enforcement no matter who administers the program because those areas are rural. SENATOR MACKIE asked Chairman Halford his intention regarding the requirement to register non-powered boats over ten feet in length. CHAIRMAN HALFORD said that will remain in the bill. REPRESENTATIVE HUDSON said he would work on language to separate the enforcement function and place it in DPS. There being no further business to come before the committee, CHAIRMAN HALFORD adjourned the meeting at 5:20 p.m.