Legislature(2021 - 2022)GRUENBERG 120
03/23/2021 11:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB28 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 28 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 28-REGISTRATION OF BOATS: EXEMPTION
11:21:58 AM
CHAIR TARR announced that the only order of business would be
HOUSE BILL NO. 28, "An Act relating to the registration of
commercial vessels; and providing for an effective date."
CHAIR TARR noted that this bill was introduced by prime sponsor
Representative Stutes at the beginning of the session. After
discussion among committee members, it was then decided to offer
the legislation as a bill sponsored by the House Special
Committee on Fisheries.
11:22:29 AM
REPRESENTATIVE STUTES offered her appreciation to the committee
for agreeing to make HB 28 a committee sponsored bill. She
related that the concept for the bill was brought to her by
commercial fishermen from across Alaska. She said the passage
in 2018 of Senate Bill 92, "the derelict vessel bill," added a
layer of duplicative registration on commercial fishing vessels
by requiring fishing businesses to register with the Division of
Motor Vehicles (DMV) to provide information the state already
had through annual vessel licensure with the Commercial
Fisheries Entry Commission (CFEC). She explained that HB 28
addresses this unnecessary and burdensome issue by exempting
CFEC registered vessels from the requirement to register with
the DMV.
11:23:46 AM
THATCHER BROUWER, Staff, Representative Geran Tarr, Alaska State
Legislature, introduced HB 28 on behalf of the House Special
Committee on Fisheries, sponsor, which is chaired by
Representative Tarr. He first disclosed that he has a
commercial vessel that is licensed with the CFEC. He then
explained that HB 28 would exempt active commercial fishing
vessels from a duplicative registration requirement that was
largely created by the passage in 2018 of Senate Bill 92, the
"derelict vessel bill." The rationale behind Senate Bill 92 was
to provide the state and local municipalities with a state-
maintained database as to who owned and operated vessels in
Alaska waters so that interested entities could contact those
vessels if there was a problem.
MR. BROUWER specified that derelict vessels are a big problem
coastwide in Alaska. An owner might abandon a vessel because he
or she can no longer afford to maintain it or to properly
dispose of it. An abandoned or derelict vessel, especially one
that sinks, can sometimes cost millions of dollars to properly
dispose of. If the owner of the vessel cannot be contacted or
held liable the cost is often passed on to the city or sometimes
the state and federal governments, which is largely why Senate
Bill 92 was passed in 2018.
MR. BROUWER stated that this problem is understood by commercial
fishermen who can pay the price if a derelict vessel sinks and
pollutes an important fish habitat. However, he continued, when
Senate Bill 92 was passed and put into law the current
registration requirements, as well as the 2018 CFEC
requirements, were overlooked. Commissioner Kelley of the CFEC
will explain this in detail, he noted, but he is making comments
now so that committee members looking at HB 28 can understand
why registering with the CFEC is a viable alternative to
registering with the DMV. Currently, commercial fishing vessels
based in or operating in Alaska are required to license their
vessels with the CFEC. This license is renewed annually and
provides necessary ownership information in a publicly
accessible database so that any interested parties can find out
who owns a certain vessel. Commercial fishing vessels are
required to display their five-digit registration number on both
sides of the vessel in twelve-inch-high, one-inch-wide numbers,
which are easily visible for enforcement. Additionally, when it
is registered annually a vessel is given a triangular renewal
plate that states the year of renewal and that can be identified
by enforcement officers.
11:26:54 AM
MR. BROUWER explained that HB 28 would remove the current
requirement for vessels licensed with the CFEC to also register
with the DMV. Prior to the 2018 passage of Senate Bill 92, he
continued, U.S. Coast Guard (USCG) documented vessels, most of
which are commercial fishing vessels, were exempt from DMV
registration. This USCG documentation is a form of registration
that goes nationwide and is recognized in Alaska. There are
also undocumented vessels that aren't registered with the USCG,
these are usually smaller vessels measuring under five net tons.
In the context of HB 28, documented and undocumented are
referenced as having or not having USCG documentation.
MR. BROUWER stated that in addition to removing the duplicative
registration on larger vessels created by Senate Bill 92, HB 28
would take the additional step of exempting undocumented fishing
vessels from registering with the DMV. Currently, undocumented
vessels are required to register, which was the case prior to
the passage of Senate Bill 92. Under HB 28, these vessels will
still be subject to a titling requirement that was part of
Senate Bill 92, and they will have to register with the CFEC.
An annual fee of $8.00 would be instituted under HB 28 for all
CFEC vessels; this is in place of the $24.00 fee that the DMV
currently charges vessels. The bill would be cost neutral given
the $24.00 fee is for three years. Commercial fishing vessels
are the backbone of Alaska's vital industry, Mr. Brouwer
stressed, so it is the sponsor's, the committee's, intent that
these vessels are not required to register every three years
with the DMV only to also register with the CFEC every year.
11:29:30 AM
REPRESENTATIVE KREISS-TOMKINS commented that he voted against
the original derelict vessel bill partly because of concerns
like this. He said he is glad to see [HB 28] which will relieve
a lot of vessel owners of that headache.
REPRESENTATIVE ORTIZ concurred with the aforementioned reasons.
11:30:03 AM
REPRESENTATIVE VANCE concurred as well. She requested that Mr.
Brouwer speak to the fiscal notes for the public record and
observed that the bill's effective date is 2022.
MR. BROUWER specified that there are two fiscal notes, one from
the Alaska Department of Fish and Game (ADF&G) where the CFEC is
housed and one from the Department of Administration (DOA) where
the DMV is housed. He drew attention to the CFEC fiscal note
and said the revenue in fiscal year 2022 would be $17,600, with
the revenue going up as the years progress. He explained that
this is because it is staggered so that someone who has already
paid his or her DMV registration fee for three years does not
have to pay for the two years going out, thus it will be fully
implemented by 2025. He deferred to the CFEC and DMV to explain
why the fiscal notes are different. He pointed out that the DMV
fiscal note is a lost revenue, but is a different amount than
what the CFEC thinks it will take in.
REPRESENTATIVE VANCE requested that an explanation of the fiscal
notes be given by representatives from the DMV and CFEC.
11:33:14 AM
JEFFREY SCHMITZ, Director, Division of Motor Vehicles (DMV),
Department of Administration (DOA), replied that DMV collects a
fee over a three-year period. He explained that DMV calculated
the amount by dividing the number of vessels registered in its
system by three, which resulted in $26,428. The bill proposes
that DMV no longer collect those fees and that that be
transferred over to a different agency. The fiscal note
therefore reflects a negative income of one-third of the total
amount that DMV would normally collect over a three-year period
for the next three years.
CHAIR TARR requested Ms. Dale Kelley of the CFEC to answer the
question and then continue with her invited testimony.
11:34:20 AM
DALE KELLEY, Commissioner, Commercial Fisheries Entry Commission
(CFEC), Alaska Department of Fish and Game (ADF&G), related that
the confusion with respect to the total numbers is because CFEC
did not receive DMV's numbers prior to CFEC having to meet the
timeline for submitting the fiscal note. She explained that the
CFEC bases its number on DMV's number, therefore she was aware
that CFEC's fiscal note would have to be adjusted after
receiving DMV's numbers.
REPRESENTATIVE VANCE asked whether the committee could expect an
updated fiscal note.
MS. KELLEY replied yes, she would put together an updated fiscal
note in time for the next hearing on the bill.
11:35:50 AM
MS. KELLEY began her invited testimony via a PowerPoint
presentation titled, "Commercial Fishing Vessel Licensing in
Alaska," dated March 2021. She first noted that she is one of
the CFEC's two commissioners. She turned to slide 2, "Licensing
Requirements," and said owners and operators of commercial
vessels used by the seafood industry are subject to many state,
federal, and international requirements. Each state and country
handles licensing according to their unique needs. The CFEC has
licensed Alaska's commercial fishing fleet for decades and has
amassed a significant amount of information about these vessels
and their owners. The CFEC hopes that its experience and
extensive vessel database will assist the state in achieving the
goals and objectives of the derelict vessel prevention program.
MS. KELLEY moved to slide 3, "2021 Commercial Fishing Vessel
Licensing Rules," and specified that generally all commercial
fishing vessels, tenders, floating processors, and transporters
must be licensed annually by CFEC. However, she pointed out,
some vessels are exempt, like those used solely at setnet sites
or in (indisc.) Alaska waters. Fees for commercial vessel
licenses are based on the overall length of the vessel as
defined by the USCG. A commercial vessel license consists of a
triangular metal ADF&G numbered plate issued when the vessel is
first licensed with CFEC. A color-coded sticker and receipt are
issued each year. If a vessel owner is licensed for salmon net
fishing, the vessel license will include an area tag specific to
the fishing permit.
MS. KELLEY displayed slide 4 and stated that the agencies
involved in licensing commercial vessels are the DMV, the CFEC,
and the USCG. Each has a unique responsibility under the law
depending on the type of vessel involved, she said. Either USCG
documentation or a state registration is required for all
motorized vessels used in commercial fishing activities, which
includes fishing, tendering, and floating processing. The USCG
registers and titles documented vessels and the DMV registers
and titles undocumented vessels that require registration. Each
year the CFEC licenses roughly 5,000 documented and 4,000
undocumented vessels. The USCG requires documentation for any
U.S. vessel over five net tons that engages in commerce between
two U.S. ports. Documented vessels are generally over 32 feet.
All owners must prove that U.S. citizens own a 75 percent
interest in the vessel and that the vessel meets all U.S. build
requirements. The USCG documentation includes an abstract of
title which tracks the full history of the vessel. Undocumented
vessels are generally under five net tons and less than 32 feet
in length. These vessels must be registered and titled by the
DMV. To be eligible for an annual vessel license, vessel owners
must first provide USCG documentation or DMV title and
registration to the CFEC.
11:39:26 AM
REPRESENTATIVE KREISS-TOMKINS offered his recollection that
Senate Bill 92 was amended to provide that those vessels under a
certain length, which he thinks was 22 feet, did not need to
register with the DMV.
MS. KELLEY replied, "Vessels under 24 feet would be exempt under
... the bill."
REPRESENTATIVE KREISS-TOMKINS requested confirmation from Ms.
Kelley that under present law no vessels under 24 feet need to
register.
MS. KELLEY responded, "I believe that's the case."
MR. BROUWER interjected that he will get a clear answer in
writing, but said he believes motorized vessels under 24 feet
are still required to register with the DMV but are not required
to be titled with the DMV.
REPRESENTATIVE KREISS-TOMKINS said it would be helpful to be
able to consider this differentiation at a future hearing.
MR. BROUWER reiterated that he will provide a written response.
MS. KELLEY concurred with getting confirmation on the answer
from the DMV because the CFEC does not deal with those vessels.
MS. KELLEY resumed her presentation and continued addressing
slide 4. She said vessel licenses must be renewed annually.
Fees are based on the USCG definition of length and with few
exceptions all permitted commercial fishing activities in state
waters must be associated with a CFEC licensed vessel. Due to
COVID-19 fewer vessels were licensed in 2020 than normal, so
2019 provides a more typical snapshot of recent year vessel
numbers and in that year the CFEC licensed 8,806 vessels and
took in over $629,000 in fees.
11:42:08 AM
MS. KELLEY spoke to slide 5, a screenshot of the Commercial
Fisheries Entry Commission webpage where commercial fishermen
and commercial vessel owners can access all CFEC licensing
forms. She explained that vessel owners have two options: 1)
download and submit CFEC licensing application forms; or 2)
apply through CFEC's online license portal. She drew attention
to slide 6, a screenshot of the list of CFEC vessel license
forms that are available. Ms. Kelley then addressed slides 7,
8, and 9, screenshots respectively of the CFEC 2020 Commercial
Vessel License Application, the CFEC 2020 Commercial Fishing
Permit Application, and CFEC's online licensing system. She
explained that both paper and online applications are signed by
the applicant under penalty of perjury. The yellow highlights
on the [license and permit] forms specifically reference vessel
ownership. Whether the owner or an agent secures the vessel
license, it is necessary for them to provide all the requested
information to prove ownership. Ms. Kelley turned to slide 8
and noted that vessel information is also required on the
Commercial Fishing Permit Application. The name of the vessel
is embossed on the permit card, which is not printed until the
permit is associated with a vessel for the fishing season. It
is not unusual for one person in fishing operation to own the
permit and the other to own or lease the vessel. In reference
to slide 9, Ms. Kelley stated that the LEON online licensing
renewal system requires the applicant to state whether he or she
is the owner or agent of the vessel before the applicant can
advance to the licensing documents.
11:45:55 AM
MS. KELLEY moved to slide 10, a depiction of the various
documents commercial fishermen and vessel owners might receive
from the CFEC during the annual licensing process. She
explained that all permit cards and associated paperwork are
color coded every year for ease of enforcement. The permit card
(lower left of slide) includes essential information about the
permit holder and vessel and is used in making fishery landings.
She reiterated that a fishermen will not receive a card until
the permit has been linked to a properly licensed vessel for the
fishing year in question. She said the triangular shaped and
numbered ADF&G vessel plate must be prominently placed on the
side of the vessel. A licensing sticker is affixed to it as
visible proof of current year licensing, like the DMV's vehicle
license and registration stickers. The Vessel License Receipt
includes key information about the vessel and its owner. If the
vessel is used in a salmon net area there will be a letter
designating the permitted fishing area. If the license holder
has a salmon net license for another region and wishes to change
areas during the season, the license holder must first contact
CFEC and possibly ADF&G to work through a process to trade the
area tag. Ms. Kelley noted that slide 11 depicts a sampling of
color-coded permit cards that CFEC issues every year.
MS. KELLEY displayed slide 12, a screenshot of the CFEC online
Public Search Application, and stated that the CFEC developed
and maintains a sophisticated online public permit and vessel
lookup system. With the use of a few key pieces of information,
a great deal can be found out about both documented and
undocumented vessels. She drew attention to the tabs along the
top of the screenshot that help guide the researcher to select
search options. In this screenshot, she noted, information was
used to search for the documented fishing vessel "Ida Lee" that
was owned by [former state senator Richard Eliason]. The data
that can be found includes such information as vessel weight,
engine type, whether the vessel has refrigeration, and so forth.
She displayed slide 13, another screenshot of CFEC's online
Public Search Application, and noted that it is an example of a
search for an undocumented vessel that used only the owner's
name. She showed slide 14, yet another screenshot of CFEC's
online Public Search Application, and stated that people who
want even more information on vessels and owners can use the tab
labeled "Yearly Downloads" to obtain spreadsheets that can be
sorted to meet specific data needs.
MS. KELLEY concluded with slide 15. In summary, she stated that
with few exceptions, all commercial fishing vessels, tenders,
floating processors, and transporters must be licensed by CFEC
every year; the USCG requires registration and title for
documented vessels; DMV titles and registers undocumented
vessels; and the CFEC requires both title and registration
documents from the USCG or DMV before issuing an ADF&G plate and
annual vessel license.
11:48:28 AM
REPRESENTATIVE KREISS-TOMKINS suggested that it would be helpful
to have DNR or ADF&G available to testify to get a sense of
where the fees are going in terms of how they are solving the
problem of derelicts. He said he is supportive of the bill but
could benefit from a refresher on how the money flows and how
the derelict problem is trying to be solved.
CHAIR TARR apologized that no one from either department was
available online for this hearing. She asked whether Ms. Kelley
would like to add a comment in this regard.
MS. KELLEY noted that she was specifically asked to provide an
overview of CFEC's program for her presentation today. In terms
of the fund, she noted that CFEC already collects fees for the
Fishermen's Fund as a passthrough and so CFEC is familiar with
handling this type of a (indisc.).
MR. BROUWER assured committee members that representatives from
DNR would be online at the bill's next hearing. He offered his
understanding that the new titling requirement for undocumented
vessels as established under Senate Bill 92 is intended to
support the derelict vessel fund, which is housed within DNR but
administered by DOA. He stated that the money from vessel
license fees, which have long been established for undocumented
vessels and just newly established with Senate Bill 92 for
documented vessels, has traditionally often gone to DNR to the
boating safety program as well as to other programs within DNR.
He pointed out that there cannot be a dedicated fund and
therefore some flexibility in how the money is spent.
11:50:51 AM
CHAIR TARR opened invited testimony.
REPRESENTATIVE KREISS-TOMKINS asked about the total sum of fees
that DMV has collected pursuant to passage of Senate Bill 92.
MR. SCHMITZ replied he will get back to the committee with that
figure.
11:52:11 AM
FRANCES LEACH, Executive Director, United Fishermen of Alaska
(UFA), provided invited testimony in support of HB 28. She
noted UFA represents 37 commercial fishing groups across Alaska.
She recounted that UFA was extremely supportive of the derelict
vessel bill when it was first introduced because fishermen well
know the navigational hazards and environmental issues caused by
derelict vessels. She said UFA supports the registration of
vessels so that owners may be linked back to vessels in the case
of abandonment. However, she noted, at the inception of [Senate
Bill 92], UFA asked that vessels registered with CFEC be exempt
from having to take the extra step of registering with the DMV,
but it did not happen. The purpose of [Senate Bill 92] was to
have a state-managed database to track vessel owners, and this
is exactly what the CFEC already does. Commercial fishermen
register their boats annually with the CFEC, all details are
housed in a state-managed database, and vessels are required to
display their registration sticker on the outside of the vessel,
making them easy to identify. Requiring commercial fishermen to
register with the CFEC and the DMV is recreating the wheel and
making fishermen jump through more hurdles and pay more money.
She offered her thanks to those who have been involved in
correcting this issue so that boat owners may be held liable for
abandonment while not having to duplicate what they already do.
11:54:27 AM
RACHEL LORD, Executive Secretary, Alaska Association of
Harbormasters and Port Administrators, provided invited
testimony regarding HB 28. She noted that the association,
currently representing 43 ports and harbors and over 60
companies from related support industries, works to maintain and
drive Alaska's port and harbor facilities to benefit Alaska's
economy and intermodal transportation system. She related that
from 2014-2016 she was the facilitator of the Statewide Derelict
Vessel Task Force, whose work was the underpinning of Senate
Bill 92.
MS. LORD stated that the association's primary goal on the issue
of derelict vessels is to work with the state to better track
the ownership of vessels using public waters, and to hold owners
responsible for their boats. While active fishermen are
responsible boat owners, she said, it's about what happens once
they sell their boats, and those vessels leave the fishery.
MS. LORD acknowledged the challenging rollout of the new
registration requirements following passage of Senate Bill 92
and expressed the association's understanding of the commercial
fleet's frustrations given that the CFEC already has a similar
annual vessel registration. She said the association supports
efforts that continue to meet the goals and create lifetime
vessel tracking while reducing bureaucratic burden.
MS. LORD stressed that every working vessel will one day see an
end of its useful life as with cars and trucks, but with an
arguably higher public liability in cost and potential for
navigational and environmental hazard. To balance that reality
with reducing paperwork and burden, she related, in fall 2019
the association's membership fully supported an automatic
registration of CFEC vessels with the DMV, thus meeting both
goals reducing that paperwork burden on the commercial fleet
while also maintaining a single tracking system for vessels over
the course of their lives, both in the active commercial fleet
and beyond. The association's board of directors has heard that
there are logistical barriers to this concept of automatic
registration. At this time with this understanding and
direction from its membership, she continued, the association
does not oppose HB 28 and will continue to offer its support and
expertise to the legislature as this bill is considered.
11:57:21 AM
REPRESENTATIVE KREISS-TOMKINS asked whether the real-world
application of Senate Bill 92 has resulted in owners being held
accountable for derelict vessels that would not have happened
prior to passage of that bill.
MS. LORD replied that she could get some real-world examples
from her board of directors, harbormasters, and port directors
to provide to the committee. Many old boats are out of active
fishing and have already gone down that path, she said. This
increased tracking and holding vessel owners accountable - while
they are active and after - is a long-term game and the point of
this is to be able to stop the hot potato from happening. She
related that the City of Homer just recently authorized over
$100,000 to dispose of a large vessel abandoned in the municipal
harbor. The public bore this cost through the city's enterprise
fund, she said, and the story is the same throughout the state.
REPRESENTATIVE KREISS-TOMKINS stated that the Homer example is
exactly at the heart of his question. He asked why the City of
Homer paid for that and why the owner of the vessel was not held
accountable given there are now titling and registration
requirements. He said he would like to have a better
understanding of the tools that now exist and how effective they
are in both the short term and the long term.
CHAIR TARR said it would be helpful if Ms. Lord could collect
that information from her members.
11:59:53 AM
CHAIR TARR opened public testimony on HB 28.
12:00:12 PM
SUSAN DOHERTY, Executive Director, Southeast Alaska Seiners
Association (SEAS), testified in support of HB 28 and its intent
to rectify the unintended consequences of the passage of the
derelict vessel bill. Regarding the issues addressed in HB 28,
she explained that it was a real compliance issue for many
vessel owners who didn't have DMV offices in their communities.
It was also an issue for permit holders who lived outside the
state to obtain proper documentation in coastal communities that
did have DMV offices. The restricted hours of the DMV offices
created a nightmare for permit holders who were trying to
prosecute their limited fisheries with very strict openings and
closings. All the while, the information they were trying to
obtain was already available through the CFEC licensing process.
Ms. Doherty offered appreciation for addressing the concerns and
needs of Alaska fishermen and urged the passage of HB 28.
12:01:49 PM
CHAIR TARR closed public testimony on HB 28 after ascertaining
that no one else wished to testify.
CHAIR TARR announced that HB 28 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 28 Version A 2.18.21.PDF |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM |
HB 28 |
| HB 28 Fiscal Note - DOA-DMV 3.19.21.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM |
HB 28 |
| HB 28 Fiscal Note - DFG-CFEC 3.19.21.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM |
HB 28 |
| HB 28 Research - Commercial Fishing Vessel Licensing Overview - CFEC 3.21.21.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM SRES 2/7/2022 3:30:00 PM |
HB 28 |
| HB 28 Research - Vessel Licensing Presentation - CFEC 3.21.21.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM |
HB 28 |
| HB 28 Research - USCG Documentation and Tonnage Brochure - Speaker Stutes 3.4.20.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM SRES 2/7/2022 3:30:00 PM |
HB 28 |
| HB 28 Research - Enrolled SB 92 (11.7.18) - Speaker Stutes 3.4.20.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM |
HB 28 |
| HB 28 Testimony Received by 3.22.21.pdf |
HFSH 3/23/2021 11:00:00 AM |
|
| HB 28 Sponsor Statement - Version A 3.19.21.pdf |
HFSH 3/23/2021 11:00:00 AM HFSH 3/25/2021 10:30:00 AM HFSH 3/30/2021 10:00:00 AM |
HB 28 |
| HB 28 Sectional Analysis - Version A 3.20.21.pdf |
HFSH 3/23/2021 11:00:00 AM |