SENATE RESOURCES COMMITTEE April 7, 2000 3:20 p.m. MEMBERS PRESENT Senator Rick Halford, Chairman Senator Robin Taylor, Vice Chairman Senator Pete Kelly Senator Jerry Mackie Senator Lyda Green Senator Georgianna Lincoln MEMBERS ABSENT Senator Sean Parnell COMMITTEE CALENDAR SENATE JOINT RESOLUTION NO. 13 Relating to the membership of the Pacific Salmon Commission. -HEARD AND HELD CS FOR HOUSE BILL NO. 108(FIN) am "An Act relating to the use, operation, and regulation of boats; establishing a uniform state waterway marking system; and providing for an effective date." -HEARD AND HELD PREVIOUS SENATE COMMITTEE ACTION SJR 13 - See Resources Committee minutes dated 3/17/99 and 3/22/99. HB 108 - No previous Senate action. WITNESS REGISTER Ms. Loretta Brown Staff to Senator Jerry Ward Alaska State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Testified for the sponsor of SJR 13 Mr. Joe Malatesta, Sr. No address provided POSITION STATEMENT: Supports SJR 13 Ms. Sue Aspelund, Executive Director Cordova Fishermen United PO Box 939 Cordova, AK 99574 POSITION STATEMENT: Supports SJR 13 Mr. Herman Fandel 702 Lawton Dr. Kenai, AK 99611 POSITION STATEMENT: Opposed to SJR 13 Ms. Karen McGahan PO Box 555 Homer, AK 99603 POSITION STATEMENT: Did not comment on either piece of legislation. Mr. Dale Bondurant 31864 Moonshine Dr. Soldotna, AK 99669 POSITION STATEMENT: Did not comment on either piece of legislation. Mr. Don Johnson PO Box 876 Soldotna, AK 99669 POSITION STATEMENT: Opposed to the proposed committee substitute for SJR 13. Mr. Paul Shadura PO Box 1632 Kenai, AK 99611 POSITION STATEMENT: Supports the proposed committee substitute for SJR 13. Mr. David Martin 71605 Sterling Hwy. Clam Gulch, AK 99568 POSITION STATEMENT: Supports SJR 13 Mr. Gerry Merrigan Petersburg Vessel Owners Association PO Box 232 Petersburg, AK 99833 POSITION STATEMENT: Opposed to the provision in SJR 13 that increases the membership of the Pacific Salmon Commission. Mr. Mark Ducker 23258 S. Cohoe Loop Rd. Kasilof, AK 99610 POSITION STATEMENT: Supports SJR 13 Mr. Arnold Enge Member of the Northern Panel of the Pacific Salmon Commission Petersburg, AK 99833 POSITION STATEMENT: Opposed to SJR 13 Mr. Tom Gemmell United Fishermen of Alaska 211 4th St. Juneau, AK 99801 POSITION STATEMENT: Took no position on SJR 13 Mr. Jim Becker Member of the Northern Panel of the Pacific Salmon Commission Juneau, AK 99801 POSITION STATEMENT: Opposed to increasing the membership of the Pacific Salmon Commission Representative Bill Hudson Alaska State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Sponsor of HB 108 Admiral Thomas Barrett U.S. Coast Guard PO Box 25517 Juneau, AK 99802 POSITION STATEMENT: Supports HB 108 Ms. Susan Hargis U.S. Coast Guard PO Box 25517 Juneau, AK 99802 POSITION STATEMENT: Discussed the boat registration process Mr. David Thompson Division of Public Health Department of Health and Social Services PO Box 110610 Juneau, AK 99811-0610 POSITION STATEMENT: Supports HB 108 Ms. Sharon Lobaugh Alaska Safe Kids 3340 Fritz Cove Rd. Juneau, AK 99801 POSITION STATEMENT: Supports HB 108 Mr. Chuck Hosack, Deputy Director Division of Motor Vehicles Department of Administration 3300 B Fairbanks St. Anchorage, AK 99503 POSITION STATEMENT: Discussed fiscal note and placement of boating safety program in DNR Mr. Don Sherwood 1640 Brink Dr. Anchorage, AK 99504 POSITION STATEMENT: Supports HB 108 Mr. Mike Folkerts Chair, Alaska Boating Safety Advisory Council 23739 Sunny Glen Drive Eagle River, AK 99577 POSITION STATEMENT: Supports HB 108 Mr. Alan Parks Homer, AK 99603 POSITION STATEMENT: Supports HB 108 Mr. Mako Haggerty PO Box 2001 Homer, AK 99603 POSITION STATEMENT: Supports HB 108 Mr. Roger McCampbell PO Box 321 Homer, AK 99603 POSITION STATEMENT: Supports HB 108 ACTION NARRATIVE TAPE 00-20, SIDE A Number 001 CHAIRMAN HALFORD called the Senate Resources Committee meeting to order at 3:20 p.m. Present at the call to order were Senators Mackie, Green, Pete Kelly, and Chairman Halford. SJR 13-AK NATIVE ON PACIFIC SALMON COMMISSION  CHAIRMAN HALFORD announced that the committee would take testimony on a proposed committee substitute (CS) for SJR 13 but, because Senator Ward was called out of town, no action would be taken on the legislation at this time. LORETTA BROWN, aide to Senator Jerry Ward, sponsor of SJR 13, explained that Senator Ward prepared a CS for SJR 13 which makes the following changes. A section was added to page 2, beginning on line 16, which reads: WHEREAS the Magnuson-Stevens Fishery Conservation and Management Act on the status of North Pacific Fisheries Management Council consisting of 11 voting members of which five members shall be appointed by the United States Secretary of Commerce from lists of residents of Alaska submitted by the Governor of Alaska; MS. BROWN informed committee members that several people were waiting to address this section via teleconference. She noted Mr. Malatesta Sr. did some investigative work on this issue. Mr. Malatesta will address the transcripts of his taped phone interviews, copies of which were placed in committee members' packets. MS. BROWN said the other changes made in the CS are on line 16 through 26 on page 2, and on lines 3 through 9 on page 3. SENATOR MACKIE asked if those sections ask the Secretary of Commerce and the Governor to withdraw the appointees. MS. BROWN said that is correct; they request that the nomination process re-occur. CHAIRMAN HALFORD asked Mr. Malatesta to testify. MR. JOE MALATESTA SR. made the following comments. The Magnuson Stevens Fishery Act is very important because it was developed for the United States fishing industry to include bottomfish caught off of the coast of Alaska. Section 302 specifically requires the Governor to first consult with all users of the fisheries resource before making any nominations. Mr. Malatesta said his concern is with the process used by the Governor to conduct the people's business and whether the Governor first consulted users about his nominations. The Governor sent a letter to the Secretary of Commerce dated March 15, 2000 stating that he met the culpability requirements. The letter included a list of the names of 107 people he consulted with. Mr. Malatesta said he contacted five individually named people, five fishing organizations, and the owners or spokespersons of four processing companies on the list. All 14 people that he spoke with told him that they had not been contacted by the Governor or any representative of the Governor's Office regarding the six nominees. MR. MALATESTA repeated that the importance of this matter is that the Governor wrote to the Secretary of Commerce and stated that he did consult with certain individuals. He said no top executive officer of any government may make deceiving or false representations. The response from the Governor's Office is that the Governor has a lot of leeway but he does not. Mr. Malatesta said he is so upset because this Administration has been circumventing the public process for other board appointments, such as the Board of Fisheries. The Magnuson-Stevens Act contains no penalty for this misstatement of truth, however when a law is written and it lacks a penalty clause, it is left to the trier of facts, perhaps a federal judge, to decide what the penalty shall be. This Administration will go down in the history of this state as the worst offender of circumventing the public process. MR. MALATESTA stated that many people plan to bring their complaints to the Secretary of Commerce and they may ask for a review by a special prosecutor. He said his investigation has been criticized because he randomly chose the individuals he contacted, but his method was to choose five individual names and five fishing organizations and all of the processors on the list. He asserted that he did everything he could to be fair to the Governor. He noted what upset him most about the Governor's March 15 letter to the federal government is that the Governor attached the names of people who provided advice about his nominations to the North Pacific Fisheries Management Council (NPFMC). Those people were never contacted. MR. MALATESTA asked legislators to tell the Governor that they will not stand for circumventing the public process by supporting SJR 13. Number 824 SENATOR LINCOLN referred to the transcripts and asked Mr. Malatesta who he is investigating this matter for. MR. MALATESTA said he did this investigation on his own behalf but he noted that when investigative interviews are conducted, one must make sure that the person being interviewed is aware of the interviewer's background. He stated he is the investigator for the law firm of Arthur Robinson and Allan Beiswenger but he conducted the investigation on behalf of over 150 commercial fishing families and some Native groups that he does work for regarding fisheries issues. He noted he is an advocate for jobs and for Alaska's commercial fishing industry. CHAIRMAN HALFORD asked testifiers to state support or opposition to the version before the committee due to time constraints. MS. SUE ASPELUND, Executive Director of Cordova Fishermen United (CFU), stated CFU takes its responsibilities regarding appointments to boards and commissions that regulate the Alaska fishing industry very seriously. The NPFMC is one of the most important of those commissions. CFU supports the CS. CFU is well known to the Governor's Office of Boards and Commissions - they are in frequent contact. CFU attended the United Fishermen of Alaska (UFA) meeting in early March. It had prepared its recommendations for the nominations. CFU members contacted the Governor's Office at that time and were quite surprised about the disregard shown by the Governor's Office for CFU's input. MR. HERMAN FANDEL of Kenai said he owns three sport fishing associated businesses in the Kenai area. He informed committee members that about one week ago the Kenai Peninsula Borough Assembly voted down Resolution 23. That same resolution is now before legislators [SJR 13] with the intent of preventing the nomination of a sport fishing representative to the NPFMC. The sport fishing industry has no representative on this Council at all. Commercial fishermen are opposing the appointment of one person to the NPFMC simply because that nominee is a sport fisherman. This sport fisherman has contributed endless time, work and money to the protection of Alaska waters and its wild fish stocks. He is very knowledgeable about Alaska's fisheries and he will do an excellent job if appointed. He maintained there is more to SJR 13 than meets the eye. He stated he is very strongly opposed to SJR 13. MS. KAREN MCGAHAN, representing herself, informed committee members she has fished commercially and hopes to afford to do it again someday. She could not believe that Governor Knowles nominated Bob Penny for this position as Mr. Penny will act as a "fox in a henhouse." Mr. Penny's main qualification is that he has a fishing cabin on the Kenai River and Governor Knowles is often his guest. His appointment is a nice thank you from Governor Knowles at the commercial fishermen's expense. This appointment is outrageous and biased and, if not illegal, it is unethical. She believes Governor Knowles should withdraw Mr. Penny's name for the nomination. MR. DON JOHNSON of Soldotna stated he is opposed to the proposed CS for SJR 13. He views SJR 13 as a racist resolution. He believes the fact is that someone is asking for an appointee to be on the Council with a certain kind of ethnic background. He cannot believe Senator Ward would put forth this legislation for others to sign on to. A similar resolution was presented to the Kenai Peninsula Borough one week ago. The Borough Assembly voted the resolution down twice. The Assembly thought a lot was left to be desired from Mr. Malatesta's investigative process. He stated the Governor has no responsibility to speak to everyone in each fishing group. MR. BONDURANT, testifying from Kenai, informed committee members that he attended a three day discussion of the International Halibut Commission in Anchorage in January related to the halibut issue. It was apparent that the representation was completely weighted by commercial fishing participants. The State's trust responsibility for common use resources is supreme and he was surprised to hear Dr. Leaman, the Executive Director of the Commission, state that both the Canadian and U.S. governments have a robust commitment to the protection of the personal consumptive users of halibut stocks. Mr. Bondurant said he believes that will also be the policy when it comes to all the salmon fisheries. The make-up of the NPFMC has been monopolized by commercial fishing interests. MR. BONDURANT maintained that since beach, wildlife and waters have been recognized as a public trust resource through the centuries, it would appear to be the responsibility of the trustees, legislators, to support the rights of the public as a whole and ensure proper representation for all public interests. This pending issue must be viewed as an attempt at intimidation hiding under claims of process violation. If there is to be any disparity of that obligation of the Council membership as a majority, it should be in favor of the interests of common personal users. He offered to make copies available of papers he wrote to the International Halibut Fisheries Commission, the NPFMC, and the Alaska Sport Fish Division. MR. PAUL SHADURA, a Kenai resident, stated support for the proposed CS for SJR 13. He read a statement from Harry Bader regarding interstate commerce, which he believes this issue is about. He believes that the procedures to allow people to comment on the people who represent them on such an important board should be open. MR. DAVID MARTIN said he has been involved in the fish and game process for about 20 years and was chairman of an advisory committee. He believes this issue is about using a public process and knowing who the nominees are. He stated support for SJR 13 because it holds the Governor accountable for what the Magnuson Act requires. MR. MARK DUCKER emphasized that the public process is the backbone of our entire government. In his opinion, he agrees almost entirely with Mr. Martin in that the public process has been circumvented in this case. MR. GERRY MERRIGAN, representing the Petersburg Vessel Owners Association (PVOA), said he cannot support the portion of SJR 13 related to the membership of the Pacific Salmon Commission as that would necessitate opening up the congressional amendment establishing the Act. That Act was recently renegotiated and amended after a lengthy process. He suggested deleting that portion of the resolution and moving it forward. PVOA members have a long history with the NPFMC and have held several seats on it. From his personal experience, knowing one area of the Southeast fishery did not prepare him well for his three-year Council seat. He expressed concern that none of the six nominees advanced by the Governor were on a list known to the public, therefore consultations described in the letter to the Secretary of Commerce did not occur. The preferred nominees will represent a significant departure from present Council structure and make-up. There has been no public opportunity to ask or answer questions as to why. MR. MERRIGAN pointed out that six other people submitted their names for consideration. All six had some experience with the Council process, ranging from serving on either the Council, the Advisory Panel, Council committees, or at the very least, attending a meeting. None of those names were advanced by the Governor. Interested parties sought recommendations and endorsed some applicants and not others, no doubt bruising some feelings unnecessarily. One of the most insulting aspects of the Governor's letter is that he said he consulted with the commercial and recreational fishing interests of the State and he attached a list of the names of over 100 groups and individuals. Yesterday, he asked the Governor's Office how many of the groups and individuals knew that Mr. Benton and Mr. Penny were potential nominees. The response was honest, "Not many, very few." For these reasons, he supports SJR 13. MR. ARNOLD ENGE, a member of the Northern Panel of the Pacific Salmon Commission for 12 years and a Petersburg resident, said the Commission just completed a lengthy process to get the Treaty renegotiated. Legislation will be required to change the make-up of the Commission. The other parties to the Treaty from Canada and the Pacific Northwest would insist that there be no change in the power structure. Since its inception, the representatives on the Pacific Salmon Commission have done a fine job representing all people of Alaska. Alaska has been served well by that Commission during times when Alaska was being ganged up on by others. Consensus is required on all decisions made by that Commission. MR. TOM GEMMELL, Executive Director of the United Fishermen of Alaska, said his testimony is directed at the portion of the CS that deals with the NPFMC. UFA did not address the other sections of SJR 13 and deferred to its Southeast member groups to do so. In UFA's letter [to the Governor] of March 10, UFA endorsed five nominees for two of the seats and it was aware of two other people with sport fishing interests who had applied at that time. According to a printout UFA received from the Boards and Commissions Office, two applications were received on March 13 and two final names were received on March 15, the day the Governor sent a letter to the Secretary of Commerce. UFA had no opportunity to comment on those four names. He referred to a report published by the Secretary of Commerce in January, 2000. In that report the Secretary of Defense commented, "In consideration of the strongly competitive commercial fishing and environmental interests in the North Pacific fisheries, the current balance of inshore-offshore gear groups and ecosystem representation should be maintained to meet the apportionment requirements of the Magnuson Stevens Act." MR. GEMMELL asked to correct a comment made previously and stated that two people who represent sport and charter interests sit on the NPFMC Advisory Panel. The halibut issue has been ongoing since 1993 and representatives of the sport fishing industry were heavily involved in the committee work and elsewhere. One Council member, Mr. Kyle, has been designated by the Governor to carry the ball for the sport-charter fishermen. UFA is not opposed to changing the representation of the Council, but it wants the process to be public so that it can comment. The Governor's process only allowed user groups to comment directly to the Secretary of Commerce. UFA would prefer that discussions be held in Alaska first. SENATOR MACKIE stated that some of the Southeast fishing organizations testified at a previous hearing in strong opposition to SJR 13 and gave compelling testimony about why the make-up of the Pacific Salmon Commission should not be changed. He asked why UFA has taken no position on that issue. MR. GEMMELL replied that issue was brought up at the October UFA meeting but UFA only takes positions on statewide issues. SENATOR MACKIE remarked that he finds himself in a dilemma because he thought the arguments made about the make-up of the Pacific Salmon Commission by the Southeast fishing groups were compelling yet that portion of SJR 13 has not been changed by the CS. He said he recognizes UFA's dissatisfaction with the Governor over the process used but the other problem remains. He questioned why UFA has not looked at the make-up of the Commission. MR. GEMMELL said this issue only came up last week and he has not had time to poll the UFA board yet. Number 2036 SENATOR TAYLOR noted the Governor's March 15 letter lists UFA as the second organization that provided advice on his appointments. MR. GEMMELL stated UFA met on April [March] 8 and he signed a letter dated April [March ] 10 from the Board that named the people it supported. He pointed out that the Governor stated, in his letter to the Secretary of Commerce, that UFA provided advice. The word "consulted" was not used. Mr. Gemmell noted UFA had no opportunity to comment on the six names that went forward. MR. JIM BECKER, a member of the Northern Panel of the Pacific Salmon Commission and an interim member of the newly formed Transboundary River Panel, made the following comments about the part of SJR 13 that requests an additional commissioner to represent Alaska Native issues. The Northern Panel opposes that part of the resolution because it sees no need to add a new commissioner. Opening up the whole process would be very cumbersome. Alaska is well represented on the Pacific Salmon Commission. One phenomenon is that all of the gear groups that represent Alaska speak together with a unified voice before the Pacific Salmon Commission. One Alaskan already sits on the panel, and he has input on all of Alaska's positions with respect to the treaty issues. The Southern Treaty tribes have their own commissioners because they share harvest authority with their respective states. That situation does not exist in Alaska. A ten-year treaty has just been negotiated with Canada which provides Alaska with stability with respect to harvest sharing among fisheries. Alaska cannot just unilaterally add a new commissioner to the Northern Panel. Alaska has an internal issue of subsistence and Canada has an internal issue with its First Nation Settlement. Those issues are not normally dealt with on the treaty level. He noted that Mr. Dave Benton, who is on the Commission right now, does an excellent job representing all of the interests in the State of Alaska. CHAIRMAN HALFORD thanked all participants and announced that SJR 13 would remain on the table. The committee then took up HB 108. 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.