Legislature(2013 - 2014)HOUSE FINANCE 519

03/27/2014 08:30 AM FINANCE


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08:36:00 AM Start
08:36:17 AM HB143
08:52:08 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 278 EDUCATION: FUNDING/TAX CREDITS/PROGRAMS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 143 COMMERCIAL FISHING CREWMEMBER LICENSES TELECONFERENCED
Moved CSHB 143(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      March 27, 2014                                                                                            
                         8:36 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
8:36:00 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the House Finance Committee meeting                                                                     
to order at 8:36 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Alan Austerman, Co-Chair                                                                                         
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Mia Costello                                                                                                     
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Lindsey Holmes                                                                                                   
Representative Cathy Munoz                                                                                                      
Representative Steve Thompson                                                                                                   
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Daniel   George,   Staff,   Representative   Bill   Stoltze;                                                                    
Representative   Paul    Seaton;   Kevin    Brooks,   Deputy                                                                    
Commissioner, Department of Fish and Game.                                                                                      
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Mike Monagle, Director, Division of Workers' Compensation,                                                                      
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 143    COMMERCIAL FISHING CREWMEMBER LICENSES                                                                                
                                                                                                                                
          CSHB 143(FIN) was REPORTED out of committee with                                                                      
          a "do pass" recommendation and with one new                                                                           
          fiscal impact note from the Department of Labor                                                                       
          and Workforce Development and one new fiscal note                                                                     
          from the Department of Fish and Game.                                                                                 
                                                                                                                                
HOUSE BILL NO. 143                                                                                                            
                                                                                                                                
     "An Act relating to crewmember fishing licenses."                                                                          
                                                                                                                                
8:36:17 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  noted that  a  [Department  of Labor  and                                                                    
Workforce Development] fiscal note was forthcoming.                                                                             
                                                                                                                                
Vice-Chair  Neuman MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for HB  143,  Work  Draft 28-LS0520\Y  (Bullard,                                                                    
3/6/14).                                                                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
DANIEL   GEORGE,   STAFF,   REPRESENTATIVE   BILL   STOLTZE,                                                                    
explained the changes  in the CS. Sections 1 and  2 had been                                                                    
added to  conform to changes  added in Section 3.  Section 3                                                                    
had previously read that the  cost of a commercial seven-day                                                                    
crewmember  fishing license  would  be  $93, which  included                                                                    
one-third of the  Carlson differential in addition  to a $30                                                                    
base.  The section  had  been changed  to  allow one  annual                                                                    
seven-day  crewmember  fishing  license  to  a  resident  or                                                                    
nonresident  engaged  in  commercial  fishing  who  did  not                                                                    
possess  an  entry  or  interim-use  permit  (previously  an                                                                    
individual had the ability to  purchase more than one of the                                                                    
licenses per  year). Additionally, a person  was entitled to                                                                    
receive  a  refund  for  their  purchase  of  the  seven-day                                                                    
license  if  they  purchased an  annual  crewmember  fishing                                                                    
license  within the  same year.  The bill  included language                                                                    
directing the department to  adopt regulation establishing a                                                                    
refund  procedure.  Lastly,  the  effective  date  had  been                                                                    
changed from  January 1, 2014  to January 1, 2015.  He noted                                                                    
that  a Legislative  Legal Services  opinion dated  February                                                                    
17, 2014  had been provided  to members (copy on  file). The                                                                    
opinion addressed  existing penalties that would  apply if a                                                                    
person violated the provisions in Section 3.                                                                                    
                                                                                                                                
Co-Chair  Stoltze  remarked  on fee  license  increases.  He                                                                    
stated that the  bill only addressed the  intended issue and                                                                    
not others that were controversial.                                                                                             
                                                                                                                                
8:39:36 AM                                                                                                                    
                                                                                                                                
Representative Costello asked how  many individuals would be                                                                    
impacted  by  the  ability to  only  receive  one  seven-day                                                                    
license per year.                                                                                                               
                                                                                                                                
Mr. George deferred  the question to the  Department of Fish                                                                    
and Game (DFG).                                                                                                                 
                                                                                                                                
KEVIN BROOKS,  DEPUTY COMMISSIONER,  DEPARTMENT OF  FISH AND                                                                    
GAME,  replied that  542  fishermen  had purchased  multiple                                                                    
seven-day licenses  during 2012;  1,344 of the  licenses had                                                                    
been purchased (one person could  have purchased between one                                                                    
and  six  of the  licenses).  He  relayed that  the  numbers                                                                    
tended to be within the same range from year to year.                                                                           
                                                                                                                                
Representative Costello observed  that the seven-day license                                                                    
fee was listed in statute as  $30. She asked for the cost of                                                                    
the annual  crew member fishing license.  Mr. Brooks replied                                                                    
that the  annual fee  was tied  to the  Carlson differential                                                                    
and was currently $250 for a nonresident.                                                                                       
                                                                                                                                
Co-Chair  Stoltze surmised  that the  change would  probably                                                                    
have a  positive fiscal impact.  Mr. Brooks replied  that if                                                                    
everyone  that had  previously  bought two  or  more of  the                                                                    
seven-day licenses purchased an  annual license the increase                                                                    
in  revenue  would  be just  under  $100,000;  approximately                                                                    
$11,000 of the  figure would go to the  fishermen's fund. He                                                                    
relayed  that the  information would  be  delineated in  the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze asked  if DFG  believed the  bill met  the                                                                    
intent of the  original statute. Mr. Brooks  answered in the                                                                    
affirmative. He detailed that  the department had identified                                                                    
the   problem  of   people  purchasing   multiple  seven-day                                                                    
licenses.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze surmised the  original statute had intended                                                                    
individuals   to   purchase   one  of   the   licenses   for                                                                    
recreational or  one-time use. Mr.  Brooks responded  in the                                                                    
affirmative.  He confirmed  that the  bill would  accomplish                                                                    
the goal  and that it  provided for  the refund option  if a                                                                    
person filled  out an application.  He elaborated that  if a                                                                    
person fished  all season they  would be eligible  to submit                                                                    
an application for a credit at the end of the season.                                                                           
                                                                                                                                
Co-Chair Stoltze  asked for verification that  an individual                                                                    
who  purchased a  nonresident sport  fish license  would not                                                                    
have the option to receive  a reimbursement if they chose to                                                                    
buy   an  annual   license.  Mr.   Brooks  replied   in  the                                                                    
affirmative. The  only time reimbursement would  occur under                                                                    
the mentioned scenario  would be if a fishery  was closed or                                                                    
another unlikely situation occurred.                                                                                            
                                                                                                                                
Co-Chair Stoltze commented that  the bill treated commercial                                                                    
fishermen better than sport fishermen.                                                                                          
                                                                                                                                
Representative  Guttenberg  asked  for verification  that  a                                                                    
person who  purchased a  seven-day license  and subsequently                                                                    
purchased  a  seasonal  license  would  need  to  request  a                                                                    
refund.                                                                                                                         
                                                                                                                                
8:43:22 AM                                                                                                                    
                                                                                                                                
Mr. Brooks  agreed. He detailed  that the licenses  could be                                                                    
purchased anywhere. The department  felt that it should take                                                                    
the responsibility  for handling the refund  applications as                                                                    
opposed  to  requiring  a  license vendor  to  take  on  the                                                                    
responsibility.                                                                                                                 
                                                                                                                                
Co-Chair Stoltze made a remark  about an individual's choice                                                                    
to complete the paperwork.                                                                                                      
                                                                                                                                
REPRESENTATIVE   PAUL   SEATON,  SPONSOR   appreciated   the                                                                    
committee's attention to the bill.  He relayed that the bill                                                                    
would   prevent   nonresidents  from   purchasing   multiple                                                                    
licenses and from not paying the appropriate fees.                                                                              
                                                                                                                                
Co-Chair Stoltze asked  if the sponsor had  any objection to                                                                    
the  changes in  the CS.  He  understood the  sponsor had  a                                                                    
preferred product and  wondered if the CS  met the sponsor's                                                                    
goals.                                                                                                                          
                                                                                                                                
Representative Seaton replied in the affirmative.                                                                               
                                                                                                                                
Co-Chair  Stoltze WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Work Draft 28-LS0520\Y was ADOPTED.                                                                          
                                                                                                                                
8:44:57 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:47:43 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair Neuman  discussed the fiscal notes  including one                                                                    
fiscal  impact note  from the  Department of  Fish and  Game                                                                    
showing a change in revenue of  $14,300 in FY 15 and $83,800                                                                    
annually from FY 16 through FY 20.                                                                                              
                                                                                                                                
Co-Chair  Stoltze remarked  that  revenue from  nonresidents                                                                    
would increase  without any disparity issues.  He noted that                                                                    
nonresident  fishermen under  the bill  were treated  better                                                                    
than nonresident sport fishermen. Mr. Brooks agreed.                                                                            
                                                                                                                                
Representative Wilson  asked why  11 years  of age  had been                                                                    
selected as the  beginning age the bill would  apply to. She                                                                    
wondered  if there  were a  significant  number of  children                                                                    
between the  ages of 11  and 18 who purchased  the licenses.                                                                    
Mr. Brooks  replied that  he did not  know why  the specific                                                                    
age had  been selected.  There were 17  nonresident children                                                                    
with the license  and 378 resident children  who fished with                                                                    
their parents.                                                                                                                  
                                                                                                                                
Co-Chair  Stoltze  asked how  the  adjustment  of the  extra                                                                    
license fees would impact the fishermen's fund receipts.                                                                        
                                                                                                                                
MIKE MONAGLE,  DIRECTOR, DIVISION OF  WORKERS' COMPENSATION,                                                                    
DEPARTMENT   OF  LABOR   AND   WORKFORCE  DEVELOPMENT   (via                                                                    
teleconference),   replied  there   should  be   a  moderate                                                                    
increase in contributions from  DFG of approximately $12,000                                                                    
per year.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze  asked Mr.  Monagle to  keep members  up to                                                                    
date on any changes to  the fiscal note. Mr. Monagle replied                                                                    
in the affirmative.                                                                                                             
                                                                                                                                
Vice-Chair  Neuman  MOVED to  REPORT  CSHB  143(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Co-Chair  Stoltze  noted  that  the  DWLD  fiscal  note  was                                                                    
forthcoming.                                                                                                                    
                                                                                                                                
There being NO OBJECTION, CSHB  143(FIN) was REPORTED out of                                                                    
committee with a  "do pass" recommendation and  with one new                                                                    
fiscal  impact  note  from  the   Department  of  Labor  and                                                                    
Workforce  Development  and one  new  fiscal  note from  the                                                                    
Department of Fish and Game.                                                                                                    
                                                                                                                                
Co-Chair Stoltze discussed agendas for future meetings.                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
8:52:08 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 8:52 a.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 143 CS(FIN)-DFG-DAS-3-27-14.pdf HFIN 3/27/2014 8:30:00 AM
HB 143
HB 143 legal opinion.pdf HFIN 3/27/2014 8:30:00 AM
HB 143