Legislature(2021 - 2022)GRUENBERG 120

03/23/2021 11:00 AM House FISHERIES

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11:19:58 AM Start
11:21:58 AM HB28
12:03:04 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 28 REGISTRATION OF BOATS: EXEMPTION TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 23, 2021                                                                                         
                           11:19 a.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Geran Tarr, Chair                                                                                                
Representative Louise Stutes, Vice Chair                                                                                        
Representative Jonathan Kreiss-Tomkins                                                                                          
Representative Andi Story                                                                                                       
Representative Dan Ortiz                                                                                                        
Representative Sarah Vance                                                                                                      
Representative Kevin McCabe                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 28                                                                                                               
"An Act relating to the registration of commercial vessels; and                                                                 
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  28                                                                                                                  
SHORT TITLE: REGISTRATION OF BOATS: EXEMPTION                                                                                   
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       FSH, FIN                                                                                               
03/12/21       (H)       BILL REPRINTED                                                                                         
03/23/21       (H)       FSH AT 11:00 AM GRUENBERG 120                                                                          
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
THATCHER BROUWER, Staff                                                                                                         
Representative Geran Tarr                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Introduced HB  28 on  behalf of  the House                                                             
Special  Committee on  Fisheries,  sponsor, which  is chaired  by                                                               
Representative Tarr.                                                                                                            
                                                                                                                                
JEFFREY SCHMITZ, Director                                                                                                       
Division of Motor Vehicles                                                                                                      
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the  hearing  on HB  28,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
DALE KELLEY, Commissioner                                                                                                       
Commercial Fisheries Entry Commission                                                                                           
Alaska Department of Fish and Game                                                                                              
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the  hearing  on HB  28,  answered                                                             
questions  and  provided  invited   testimony  via  a  PowerPoint                                                               
presentation  titled,  "Commercial  Fishing Vessel  Licensing  in                                                               
Alaska," dated March 2021.                                                                                                      
                                                                                                                                
FRANCES LEACH, Executive Director                                                                                               
United Fishermen of Alaska                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided invited  testimony in support of HB
28.                                                                                                                             
                                                                                                                                
RACHEL LORD, Executive Secretary                                                                                                
Alaska Association of Harbormasters and Port Administrators                                                                     
Homer, Alaska                                                                                                                   
POSITION  STATEMENT:    Provided  invited  testimony  during  the                                                             
hearing on HB 28.                                                                                                               
                                                                                                                                
SUSAN DOHERTY, Executive Director                                                                                               
Southeast Alaska Seiners Association                                                                                            
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 28.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:19:58 AM                                                                                                                   
                                                                                                                                
CHAIR GERAN TARR called the  House Special Committee on Fisheries                                                             
meeting to  order at 11:19  a.m.  Representatives  McCabe, Vance,                                                               
Story,  Ortiz, Stutes,  and  Tarr  were present  at  the call  to                                                               
order.  Representative Kreiss-Tomkins  arrived as the meeting was                                                               
in progress.                                                                                                                    
                                                                                                                                
             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.                                                                                  
                                                                                                                                
12:03:04 PM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Special Committee on Fisheries meeting was adjourned at 12:03                                                                   
p.m.                                                                                                                            

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