03/13/2020 01:30 PM House FINANCE

HOUSE BILL NO. 185                                                                                                            
                                                                                                                                
     "An Act relating to the registration of commercial                                                                         
     vessels; and providing for an effective date."                                                                             
                                                                                                                                
1:35:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Johnston  asked for a  brief reintroduction  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
1:35:26 PM                                                                                                                    
                                                                                                                                
MATT   GRUENING,   STAFF,  REPRESENTATIVE   LOUISE   STUTES,                                                                    
explained  that  the   bill  exempted  currently  registered                                                                    
Commercial  Fisheries Entry  Commission (CFEC)  vessels from                                                                    
the 3-year  registration requirement  created in  2018 under                                                                    
SB   92   [Short    Title:   Vessels:   Registration/Titles;                                                                    
Derelicts] from  the requirement  to register every  3 years                                                                    
with the Department  of Motor Vehicles (DMV).  The bill also                                                                    
allowed for the  implementation of an annual $8  fee in lieu                                                                    
of the 3-year, $24  registration. Commercial fishermen would                                                                    
still pay  towards the  fund and  the Department  of Natural                                                                    
Resources (DNR)  Boating Safety  Program. He  explained that                                                                    
after the first year it would be  a net loss to the state of                                                                    
zero. There were 2 new  fiscal notes in members  packets. He                                                                    
reiterated  that  the  legislation removed  the  duplicative                                                                    
registration   requirement  on   commercial  vessels.   They                                                                    
provided the  same data regarding vessel  ownership required                                                                    
through SB 92 through their CFEC registration.                                                                                  
                                                                                                                                
1:36:37 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz MOVED to ADOPT Amendment 1 (copy on file):                                                                     
                                                                                                                                
     Page 2, following line 26:                                                                                                 
                                                                                                                                
          Insert a new bill section to read:                                                                                    
                                                                                                                                
          "* Sec. 4. The uncodified law of the State of                                                                         
          Alaska is amended by adding a new section to                                                                          
          read:                                                                                                                 
                                                                                                                                
          TRANSITION. The Alaska  Commercial Fisheries Entry                                                                    
          Commission  shall  waive  the  commercial  fishing                                                                    
          vessel registration  fee imposed  under sec.  3 of                                                                    
          this Act for                                                                                                          
               (1)  calendar  year  2021  for  a  commercial                                                                    
               fishing  vessel for  which registration  fees                                                                    
               were  paid in  calendar  year  2019 under  AS                                                                    
               05.25.096(a)(1);                                                                                                 
                                                                                                                                
               (1)  calendar  year  2021  for  a  commercial                                                                    
               fishing  vessel for  which registration  fees                                                                    
               were  paid in  calendar  year  2019 under  AS                                                                    
               05.25.096(a)(1)."                                                                                                
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, line 31:                                                                                                           
                                                                                                                                
          Delete "sec. 5"                                                                                                       
          Insert "sec. 6"                                                                                                       
                                                                                                                                
Co-Chair Johnston OBJECTED for discussion.                                                                                      
                                                                                                                                
Vice-Chair  Ortiz explained  that Amendment  1 ensured  that                                                                    
the  CFEC  licensed  vessels exempt  from  DMV  registration                                                                    
under  the   bill  would  not   be  charged  twice   as  the                                                                    
legislation  transitioned  into  law. He  further  explained                                                                    
that  Section 3  of the  bill  instituted an  annual $8  fee                                                                    
starting January  1, 2021 for  all CFEC licensed  vessels in                                                                    
lieu of the  current 3-year, $24 fee with  the DMV. However,                                                                    
CFEC licensed vessels  that registered with the  DMV in 2019                                                                    
and 2020 had already paid  a 3-year registration fee of $24.                                                                    
Because vessels  had already paid, Amendment  1 directed the                                                                    
CFEC to waive the $8 fee  for the calendar year 2021 for the                                                                    
vessels  that paid  the  $24  to the  DMV  in  2019 for  the                                                                    
calendar years  of 2021  and 2020 and  for the  vessels that                                                                    
paid the  $24 fee  in 2020. Amendment  1 would  ensure there                                                                    
would  not be  a duplication  of payments  by CFEC  licensed                                                                    
vessels.                                                                                                                        
                                                                                                                                
1:38:14 PM                                                                                                                    
                                                                                                                                
Representative Knopp asked if  the bill sponsors had weighed                                                                    
in on the amendment and supported it.                                                                                           
                                                                                                                                
Vice-Chair  Ortiz was  offering the  amendment on  behalf of                                                                    
the bill sponsor.                                                                                                               
                                                                                                                                
1:38:31 PM                                                                                                                    
                                                                                                                                
Representative  Wool  asked  about  a  brand-new  commercial                                                                    
fishing boat and wondered if the $8 fee would be waived.                                                                        
                                                                                                                                
Vice-Chair Ortiz responded that  the amendment did not apply                                                                    
to new  vessels. The bill  only applied to vessels  that had                                                                    
pre-paid in the years of 2019 or 2020.                                                                                          
                                                                                                                                
Co-Chair Johnston WITHDREW her OBJECTION.                                                                                       
                                                                                                                                
There being NO OBJECTION, Amendment 1 was ADOPTED.                                                                              
                                                                                                                                
Co-Chair Johnston noted  there were 2 new  fiscal notes. She                                                                    
invited someone from CFEC to review them.                                                                                       
                                                                                                                                
1:39:51 PM                                                                                                                    
                                                                                                                                
DALE   KELLY,  COMMISSIONER,   COMMERCIAL  FISHERIES   ENTRY                                                                    
COMMISISON  (via teleconference),  relayed  that the  fiscal                                                                    
note  [OMB  Component  #471]  had   been  amended  from  the                                                                    
previous version, which  was zero, and had  no indication of                                                                    
changes in revenue.  The commission had been  directed as to                                                                    
how to  properly convey the  information. She  reported that                                                                    
the  fund  would  be  a pass-through  fund  similar  to  the                                                                    
Fishermen's  Fund. The  commission would  collect the  funds                                                                    
and  move them  to another  pot  of money.  The fiscal  note                                                                    
reflected  what the  commission expected  to take  in for  a                                                                    
portion of  FY 21 beginning on  January 1, 2021 if  the bill                                                                    
were  to pass.  The commission  anticipated receiving  about                                                                    
$70,000  per year  from the  program. She  indicated it  was                                                                    
difficult  to insert  a finite  number because  there was  a                                                                    
random  number  of  vessels that  licensed  each  year.  She                                                                    
reported that  in the previous year  the commission licensed                                                                    
8,806 vessels. However, the recent  5-year average was about                                                                    
9,200. An  adjustment might  have to be  made to  the fiscal                                                                    
note with the amendment that just passed.                                                                                       
                                                                                                                                
1:41:45 PM                                                                                                                    
                                                                                                                                
JOANNE  OLSEN, DIRECTOR,  DIVISION  OF  MOTOR VEHICLES  (via                                                                    
teleconference), reviewed the fiscal  note by the Department                                                                    
of  Administration. She  reported  that  the Division  would                                                                    
experience a  deficit of $21,500 because  the division would                                                                    
no  longer  be  collecting the  registration.  The  division                                                                    
wrote the fiscal  note based on a 3-year average  of what it                                                                    
collected. However, an annual  amount would apply. Annually,                                                                    
the  DMV  collected  $12,082.67  based  on  the  number  the                                                                    
division  took in  in 2019.  For the  following 2  years the                                                                    
division would not collect any money.                                                                                           
                                                                                                                                
Co-Chair  Johnston  intended  to  move the  bill  on  Monday                                                                    
[March 16, 2021].                                                                                                               
                                                                                                                                
HB  185  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.