03/16/2020 09:00 AM House FINANCE

HOUSE BILL NO. 185                                                                                                            
                                                                                                                                
     "An Act relating to the registration of commercial                                                                         
     vessels; and providing for an effective date."                                                                             
                                                                                                                                
9:06:34 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT the proposed committee                                                                           
substitute for HB 185, Work Draft 31-LS1250\E (Klein,                                                                           
3/12/20).                                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
ERIN   SHINE,  STAFF,   REPRESENTATIVE  JENNIFER   JOHNSTON,                                                                    
highlighted new language on page  2, line 27 through page 3,                                                                    
line 3 of the committee substitute (CS).                                                                                        
                                                                                                                                
Co-Chair Johnston asked  the Department of Fish  and Game to                                                                    
address the new fiscal note.                                                                                                    
                                                                                                                                
DALE   KELLY,   COMMISSIONER,   COMMERCIAL   FISHING   ENTRY                                                                    
COMMISSION,    DEPARTMENT   OF    FISH    AND   GAME    (via                                                                    
teleconference),  reviewed the  fiscal  note that  reflected                                                                    
the  waiver provided  for in  HB 185  for vessel  owners who                                                                    
paid fees for the Derelict  Vessel Fund through the Division                                                                    
of  Motor  Vehicles  (DMV)  in  either  2019  or  2020.  She                                                                    
elaborated  that the  Commercial Fisheries  Entry Commission                                                                    
(CFEC) would begin collecting the  fees beginning in January                                                                    
2021. She  detailed that  DMV assessed  a three-year  fee of                                                                    
$24 for the program and CFEC  would assess an annual $8 fee.                                                                    
She  explained that  without the  waiver, fishermen  who had                                                                    
already paid would be overcharged  for one or two years when                                                                    
the new fee  was implemented. The commission  would not know                                                                    
precisely how many vessel owners  had paid the fee until the                                                                    
end of 2020.  In order to account for the  waiver, CFEC used                                                                    
the $21,500  decrement in  DMV's fiscal  note to  adjust its                                                                    
revenue  projection  downward  for the  first  three  fiscal                                                                    
years of the program.                                                                                                           
                                                                                                                                
Ms. Kelly  clarified that  because the  new fee  would begin                                                                    
during  the second  half  of  FY 21,  CFEC  had reduced  the                                                                    
revenue  projection for  that year  by  half (about  $35,000                                                                    
minus the $21,500). Although the  waivers would last no more                                                                    
than two  years and would  end on  December 31, 2022,  FY 23                                                                    
would  be  included  because  it began  in  July  2022.  She                                                                    
reported that  CFEC licensed roughly 8,800  vessels per year                                                                    
and  all vessel  owners would  pay the  $8 annual  fee. From                                                                    
FY 24  onward, CFCE estimated  an annual revenue  of $70,500                                                                    
for the Derelict Vessel Fund.  She explained that during the                                                                    
first two years of the  program, CFEC anticipated some added                                                                    
expense in  handling the waivers,  but it would work  to try                                                                    
to absorb  the costs within  the current budget.  After that                                                                    
time,  CFEC   anticipated  minimal  costs  to   collect  the                                                                    
licensing fee.                                                                                                                  
                                                                                                                                
9:09:47 AM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  REPORT  CSHB  185(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSHB  185(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with one  new fiscal  impact note                                                                    
from the Department of Fish  and Game, one new fiscal impact                                                                    
note  from   the  Department  of  Administration,   and  one                                                                    
previously published zero note: FN1 (DPS).