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