Legislature(2019 - 2020)ADAMS 519
03/09/2020 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB159 | |
| HB185 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 159 | TELECONFERENCED | |
| + | HB 185 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 9, 2020
9:02 a.m.
9:02:46 AM
CALL TO ORDER
Co-Chair Johnston called the House Finance Committee
meeting to order at 9:02 a.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Jennifer Johnston, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Bart LeBon
Representative Cathy Tilton
Representative Adam Wool
MEMBERS ABSENT
Representative Ben Carpenter
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
ALSO PRESENT
Erin Shine, Staff, Representative Jennifer Johnston;
Representative Louise Stutes, Bill Sponsor; Matt Gruening,
Staff, Representative Louise Stutes.
PRESENT VIA TELECONFERENCE
Stephanie Butler, Alaska Commission on Postsecondary
Education; Dale Kelley, Commissioner, CFEC, Juneau; Lt.
Jonathan Streifel, Lt. Wildlife Troopers, DPS, Kodiak;
Jenna Wamsganz, Deputy Director, Division Of Motor
Vehicles, Anchorage; Rachel Lord, Alaska Association of
Harbormasters, Homer; Representative Kelly Merrick.
SUMMARY
HB 159 MEDICAL EDUCATION PROGRAM
CSHB 159 (FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new
indeterminate fiscal note by the Department of
Education and Early Development.
HB 185 REGISTRATION OF BOATS: EXEMPTION
HB 185 was HEARD and HELD in committee for
further consideration.
Co-Chair Johnston reviewed the agenda for the day.
HOUSE BILL NO. 159
"An Act relating to repayment conditions for medical
education program participants."
9:03:39 AM
Co-Chair Foster MOVED to ADOPT proposed committee
substitute for HB 159, Work Draft 31-LS0981\M (Caouette,
3/6/20). (copy on file).
Co-Chair Johnston OBJECTED for discussion.
9:04:05 AM
ERIN SHINE, STAFF, REPRESENTATIVE JENNIFER JOHNSTON,
reviewed the two changes to the Committee Substitute. She
reported that on page 1, line 2, the words and providing
for an effective date were added. The second change found
on page 2, line 11 added new Section 3, which read: This
act takes effect on January 1, 2021. She explained that
Section 3 was added to exclude the students that had signed
their contracts under the current WWAMI program. Students
entering the program after January 1, 2021 were subject to
the bills 100 percent repayment provision.
9:04:54 AM
Co-Chair Johnston WITHDREW her OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Johnston asked the department to review the new
fiscal note.
STEPHANIE BUTLER, ALASKA COMMISSION ON POSTSECONDARY
EDUCATION (via teleconference), offered to answer any
questions concerning the zero fiscal note.
9:06:40 AM
Co-Chair Foster MOVED to report CSHB 159(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSHB 159(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new indeterminate fiscal
note by the Department of Education and Early Development.
HOUSE BILL NO. 185
"An Act relating to the registration of commercial
vessels; and providing for an effective date."
9:07:33 AM
REPRESENTATIVE LOUISE STUTES, BILL SPONSOR, introduced
herself. She thanked the committee for hearing her bill.
She explained that the legislation would exempt active
commercial fishing vessels with a current Commercial
Fisheries Entry Commission (CFEC) license from duplicative
registration requirements. The duplicative registration was
created by the passage of SB 92 [SB 92 - Vessels:
Registration/Titles; Derelicts - Chapter 111 SLA 18,
10/11/2018] known as the "the derelict vessel bill. The
legislation would remove the requirement for vessels with a
current CFEC license to register every three years with the
Department of Motor Vehicles (DMV). She furthered that the
CFEC required annual renewal and already provided the
necessary contact information in an accessible state
database. She believed the bill streamlined registration
on one of the states most vital industry.
9:09:25 AM
MATT GRUENING, STAFF, REPRESENTATIVE LOUISE STUTES, further
introduced the bill. He explained the difference between
undocumented or documented vessels noting that undocumented
vessels were not nationally registered. He related that
vessel documentation was a national form of vessel
registration through the United States Coast Guard.
Documentation was one of the oldest functions of the
federal government, dating back to 1789. He pointed to a
Coast Guard brochure titled Documentation and Tonnage of
Smaller Commercial Vessels that was included in the
members packets (copy on file). He elaborated that
documentation provided evidence of ownership and
nationality, facilitated interstate commerce, and admitted
vessels of certain restricted trades. He added that all
fishing vessels over 5 net tons were required to be
documented. He shared that he was the owner of a commercial
fishing vessel and would benefit from the legislation. He
read the sponsor statement:
This legislation would exempt active commercial
fishing vessels from duplicative registration
requirements largely created by the passage of SB 92,
"the derelict vessel bill," in 2018.
Specifically, HB 185 would remove the requirement for
vessels with a current Commercial Fisheries Entry
Commission (CFEC) license to register every three
years with the Department of Motor Vehicles (DMV).
Prior to the passage of SB 92, U.S. Coast Guard (USCG)
documented vessels were exempt from DMV registration;
however, that exemption was repealed in the bill and
as a result, larger vessels fell under the DMV's
purview.
The rationale was to provide the State and local
municipalities with a state-maintained database on who
owned and operated vessels in Alaskan waters, as well
as how to contact those individuals; overlooked,
however, was the CFEC database.
Vessel licensure with the CFEC requires annual renewal
and already provides the necessary contact information
in a sharable, state database.
In addition to removing a duplicative registration on
larger fishing vessels that was created by SB 92, this
legislation takes the additional step of exempting
USCG undocumented CFEC vessels, those under 5 net
tons, from a pre-existing registration requirement
with the DMV. These vessels will still be subject to
the new titling requirement with the DMV, as well as
annual CFEC vessel licensure.
Alaska's commercial fishing fleet is the backbone of
our state's most vital industry. We shouldn't require
those vessels to register every three years with the
DMV, at additional cost, only to provide information
that the State already has through the vessel's annual
license renewal process.
Mr. Gruening continued to provide information on HB 185. He
offered to briefly review the CFEC vessel registration
process.
9:13:37 AM
Mr. Gruening read from a prepared statement:
Who must register with CFEC?
With very few exceptions, all commercial fishing
vessels, including tenders, processors, and
transporters, engaged in commercial fishing in Alaskan
waters require CFEC licensure. The exceptions found in
AS 16.05.495 are primarily limited to skiffs used in
setnet operations in specific areas.
For reference, the licensing statute, 16.050.490,
states that "as a condition of delivery or landing of
fish or engaging in commercial fishing in the state, a
license is required for a commercial vessel.
To give an idea of the scope, the CFEC licensed 8,806
vessels in 2019 for a total of $629,052 in licensing
fees.
One of the questions to ask when considering this
bill is what type of information is collected when you
file for a CFEC vessel license?
16.05.530 requires CFEC to file "the name and address
of the vessel owner or the owners authorized agent,
the name and number of the vessel, a vessel license
number, the area to be fished, and "any other
reasonable information required by CFEC"
The CFEC license forms themselves require quite a bit
of additional reasonable information. I would like to
point members to a document in packets containing the
various CFEC license forms. The pertinent sections
have been highlighted in yellow.
Pointing specifically to the form titled "2020 vessel
license application" Under penalty of perjury, the
applicant must identify the legal owner of the vessel
and a contact person if that is a different
individual, the owner's mailing and permanent address,
SSN, phone number, DOB, and email address.
If the vessel is new to an individual or the
fisheries, the applicant MUST submit a current copy of
the vessel's USCG documentation or State registration
to the CFEC and fill out the "vessel history" section
on Page 2, requiring additional vessel information and
lineage.
Every year, in order to relicense that vessel and
fish, the same information needs to be verified,
updated, and signed under penalty of perjury.
Intentionally providing false information on these
forms is a crime punishable by up to a year of
imprisonment and/or a $25,000 fine and subjects the
permit holder to suspension of fishing privileges or
outright permit revocation.
The short of it is, we know who CFEC vessel owners
and operators are and how to get a hold of them.
Another question to ask is how is the CFEC decal
displayed on the vessel and how easily can it be
verified by law enforcement?
I would like to point members to a document in their
packets titled "CFEC vessel license, number plate, and
triangles".
This depicts real-sized examples of the license that
must be carried onboard, as well as the metal
triangular plate and annual decals that are affixed to
all CFEC registered vessels.
The first time any vessel is registered with the
CFEC, it is assigned a permanent 5-digit number from
ADF&G that is specific to that vessel. This numeric
must be displayed on both sides of the vessel in 12-
inches-high by-1-inch-wide numbers.
The vessel is also assigned an aluminum triangular
plate with that same 5-digit number stamped into it.
The plate must stay permanently affixed to the port
side of the vessel in a visible location.
Every year, the CFEC issues a triangular decal upon
renewal of the license similar to a vehicle tag only
considerably larger. That decal must be affixed on
top of the triangular plate as shown. The 5-digit
number on the decal must match the one on the plate.
The decals are good for one year, are uniform in
color, with the color alternating every year. For
example, all CFEC decals in 2012 were purple with "12"
embossed on them, in 2017 they were green with "17" on
them, and so on and so forth.
This system, again similar to vehicle license plate
tags, provides an easy visual identifier for wildlife
troopers as they drive by a vessel. It's the same
decal troopers have used to check compliance for
decades under Title 16, so no adjustments would be
needed for enforcement or CFEC.
Additionally, the size and color coding of the
triangle make it an easy visual inspection for harbor
masters, port administrators, and others.
9:16:21 AM
Mr. Gruening pointed to a document that provided a visual
aide of the permit, license, and metal triangular decal
that was required to be affixed to a commercial fishing
vessel (copy on file).
9:18:07 AM
Mr. Gruening reviewed the sectional analysis (copy on
file):
Section 1 on Page 1, line 4 through Page 2, line 16:
amends the current list of exemptions to DMV
registration found in 05.25.055 (i) to include CFEC
registered vessels.
Section 2 on Page 2, lines 17 through 21:
Amends the existing DMV titling statute to clarify
that undocumented registered CFEC licensed vessels,
although exempt from registration through the DMV,
will still be required to title through that agency.
Section 3 on Page 2, lines 22 through 26:
A new subsection was added to institute the previously
mentioned $8 annual fee upon CFEC registration in lieu
of the 3-year $24 fee. The fee will be accounted for
separately for as provided in AS 05.25.096(b), to be
made available for used by the legislature for
appropriations to DNR, the Department of the
Administration, and the purposes of the derelict
vessel act. This maintains current funding and uses.
Section 4 on Page 2, lines 27 through 29:
Adds a retractive effective date of January 1st of
2020 for the registration requirement in Section 1 of
the bill. The effective date reflects the first day of
this year's CFEC licensing cycle.
Section 5 on Page 2, line 30:
Adds a delayed effective date to January 1st of 2021,
the first day of next year's CFEC license cycle, for
the new $8 CFEC fee.
Section 6 on Page 2 line 31, through Page 3, line 1:
Adds an immediate effective date to the remainder of
the bill.
9:20:31 AM
Representative Josephson asked why the new fees did not
show up in the fiscal note for FY 22. Mr. Gruening believed
that the fee had a delayed fiscal impact in FY 21 but would
not carry to the following year. Representative Josephson
asked about the solvency of the program. He wondered
whether it had the revenue necessary to carry out the
program. Mr. Gruening answered that he could not speak to
what the statewide needs were regarding derelict vessels.
He indicated that the bill provided the same funding that
was available in SB 92.
9:22:14 AM
Representative LeBon appreciated the depth of the
presentation and explanation of the bill. He asked if a
bank originated a preferred marine mortgage through the
Coast Guard weather the bill would affect the transaction
in any way. Mr. Gruening did not believe the bill had any
impact. Representative LeBon inquired whether an unpaid
licensing or permit fee would be attached to a vessels
loan as an unpaid lien. Mr. Gruening responded that because
the license was annual, if the CFED annual registration was
unpaid the vessel owner fell under the regulatory purview
of DMV. He added that if the fisher failed to keep the
yearly CFED license current the three-year DMV registration
was required. The yearly fee would always be paid, either
by CFED or DMV. Representative LeBon pointed out that a
bank carrying a preferred marine mortgage in foreclosure
would inherit the unpaid fees.
Co-Chair Johnston asked the Department of Fish and Game to
review the fiscal note.
9:24:34 AM
DALE KELLEY, COMMISSIONER, CFEC, JUNEAU (via
teleconference), reviewed the zero fiscal note for CFEC.
She understood that the fee was a pass through, similar to
the Fishermans Fund and did not affect revenues.
LT. JONATHAN STREIFEL, LT. WILDLIFE TROOPERS, DPS, KODIAK
(via teleconference), did not have anything to say about
the fiscal note.
Co-Chair Johnston indicated the Department of Public Safety
fiscal note was zero.
9:25:40 AM
JENNA WAMSGANZ, DEPUTY DIRECTOR, DIVISION OF MOTOR
VEHICLES, ANCHORAGE (via teleconference), indicated that
the bill imposed a change to the fee structure. She
explained that under SB 92 the DMV was registering the
vessels every three years at $24. The new annual fee would
replace the three year fee and was a wash for the out
years. However, the bills effective date was January 1,
2021 and was retroactive to the current year. Because fees
would not be collected until January 2021, there was a
negative impact to the current fiscal year.
9:26:38 AM
Co-Chair Johnston OPENED Public Testimony.
9:27:06 AM
RACHEL LORD, ALASKA ASSOCIATION OF HARBORMASTERS, HOMER
(via teleconference), spoke in support of HB 185. She
relayed that the association along with a number of
municipalities recently passed a resolution in support of
automatic registration of CFEC vessels with the DMV. She
offered that automatic registration would diminish the
bureaucratic burden and create a single tracking repository
for vessels operating in state waters. She voiced that in
deference to the work done on the bill the association
supported the legislation.
9:28:18 AM
Co-Chair Johnston CLOSED Public Testimony.
9:28:27 AM
Representative Wool understood that there was a redundancy
in the CFEC and DMV databases. He thought that was the
reason the bill was waiving the DMV registration and the $8
fee would go directly to the CFEC. Mr. Gruening responded
that Representative Wool's summation was not totally
accurate. He explained that the fee would be collected by
CFEC and pass through to the Department of Administration
(DOA) for the purposes of the SB 92. In addition, some of
the fee was collected for the Department of Natural
Resources (DNR) Boating Safety Program, which was an
existing program.
Representative Stutes further explained that the provision
in SB 92 required a duplicative registration. The fishers
had to register with the DMV even though they had already
registered with the CFEC. Representative Wool ascertained
that SB 92 was created to collect funds to help deal with
derelict boats and named DMV as the collecting agency
requiring boats to register with them even though they also
had to register with the CFEC. He asked if the fee of $8
was in addition to the CFEC fee. Mr. Gruening replied in
the affirmative.
Representative Wool mentioned an exemption for certain
types of boats. He surmised that the boats were currently
paying the DMV fee and were not required under the bill. He
wondered about how that affected the bottom line. Mr.
Gruening responded that undocumented vessels under 5 net
tons had been required to register with the DMV since the
year 2000 under HB 108 [HB 108 - Use, Regulation, and
Operation of Boats - Chapter 28 SLA 00, 05/11/2000]. He
further expounded that HB 185 exempted undocumented vessels
from the preexisting SB 92 requirement to register with the
DMV twice: for their title and registration. Undocumented
vessels would be subject to DMV title registration and
registering with CFEC under the legislation. The documented
vessel over 5 tons would need a CFEC registration and the
US Coast Guard documentation. Representative Wool asked if
the vessels still had to register with the CFEC and pay
the $8 fee. Mr. Gruening replied in the affirmative.
Co-Chair Johnston reviewed the agenda for the following
meeting.
HB 185 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
9:33:57 AM
The meeting was adjourned at 9:33 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 159 House Finance CS ver M.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 159 |
| HB 185 Additional Document- CFEC Vessel Licensing Forms 2.2.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Additional Document-2020 Fishing Vessel Licensing-CFEC 2.3.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Additional Document SB 92- Enrolled from 2018.PDF |
HFIN 3/9/2020 9:00:00 AM |
HB 185 SB 92 |
| HB 185 Additional Document-CFEC Vessel License, Number Plate, and Decal 2.3.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Explanation of Changes v S to K 3.3.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Addtional Document-USCG Brochure Documentation and Tonnage 1.20.15.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Sponsor Statement v. K 3.3.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |
| HB 185 Testimony-Recieved by 3.3.20.pdf |
HFIN 3/9/2020 9:00:00 AM |
HB 185 |