02/04/2020 11:00 AM House FISHERIES

            HB 185-REGISTRATION OF BOATS: EXEMPTION                                                                         
                                                                                                                                
11:16:11 AM                                                                                                                   
                                                                                                                                
CHAIR STUTES announced that the final order of business would be                                                                
HOUSE  BILL NO.  185, "An  Act  relating to  the registration  of                                                               
commercial vessels; and providing for an effective date."                                                                       
                                                                                                                                
11:16:38 AM                                                                                                                   
                                                                                                                                
The committee took an at-ease from 11:16 a.m. to 11:17 a.m.                                                                     
                                                                                                                                
11:16:38 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES, as  prime  sponsor, explained  that  HB 185  would                                                               
exempt active  commercial fishing vessels that  already have been                                                               
registered with the  state from having to be  registered a second                                                               
time with the Division of  Motor Vehicles (DMV), thus eliminating                                                               
additional cost and frustration.                                                                                                
                                                                                                                                
11:18:40 AM                                                                                                                   
                                                                                                                                
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature,  presented  HB  185   on  behalf  of  Representative                                                               
Stutes,  prime sponsor.   He  explained  vessel documentation,  a                                                               
very  old  form  of  documentation, which  includes  but  is  not                                                               
limited  to  evidence  of  ownership  and is  one  of  the  first                                                               
functions  of the  federal  government.   He  said  HB 185  would                                                               
exempt  active  fishing  vessels  from  duplicative  registration                                                               
requirements created by passage of  Senate Bill 92 [passed during                                                               
the  Thirtieth Alaska  State Legislature],  removing requirements                                                               
for  current   Commercial  Fisheries  Entry   Commission  (CFEC)-                                                               
licensed vessels to be registered  every three years with the DMV                                                               
at a $24.00 fee.                                                                                                                
                                                                                                                                
MR. GRUENING pointed out that  prior to 2018, United States Coast                                                               
Guard   (USCG)-documented   vessels    were   exempt   from   DMV                                                               
registration.   That exemption was  repealed with Senate  Bill 92                                                               
and, as a  result, larger vessels fell under DMV's  purview.  The                                                               
aim  behind Senate  Bill 92  in  2018, aside  from providing  the                                                               
state  and  municipalities  additional  tools  for  dealing  with                                                               
derelict vessels, was  to ensure that vessels  operated in Alaska                                                               
waters were  registered with the  state, that the state  would be                                                               
aware who  owns and  operates those vessels,  and that  the state                                                               
would know  how to get  ahold of  those owners and  operators and                                                               
hold  them  accountable  in  the event  of  a  vessel's  becoming                                                               
derelict.                                                                                                                       
                                                                                                                                
MR.  GRUENING  said  Senate  Bill   92  overlooked  the  existing                                                               
licensing  process  for  CFEC, whose  vessel  licensure  requires                                                               
annual renewal  and already provides the  necessary ownership and                                                               
contact information in a publicly  accessible state database.  He                                                               
added  that  commercial  fishing  vessels  are  the  backbone  of                                                               
Alaska's most vital  industry, and with very  few exceptions, all                                                               
commercial  fishing vessels,  including tenders,  processors, and                                                               
transporters engaged  in commercial fishing in  Alaska waters are                                                               
required  to  be  under  CFEC  licensure.    The  exceptions  are                                                               
primarily limited  to setnet skiffs.   The licensing  statute for                                                               
commercial fishing vessels  in Alaska states that  as a condition                                                               
of  delivery  or  landing  fish,  a license  is  required  for  a                                                               
commercial vessel.   The CFEC licensed 8,806 vessels  in 2019 for                                                               
a total of $629,052 in  licensing fees.  The commission's license                                                               
forms require quite a bit of ownership and contact information.                                                                 
                                                                                                                                
11:23:30 AM                                                                                                                   
                                                                                                                                
MR. GRUENING passed out CFEC  vessel license application, request                                                               
for duplicate  license, and license  change of  information forms                                                               
to  the   committee  with  requirements  for   proving  ownership                                                               
highlighted.   The CFEC licensing  vessel forms are  also located                                                               
on the Alaska  Legislature's Bill Action &  Status Inquiry System                                                               
(BASIS),  he pointed  out.   On page  1 of  the vessel  licensing                                                               
form, under penalty  of perjury, the applicant  must identify the                                                               
legal owner,  contact person, the  owner's mailing  and permanent                                                               
address,  social security  number, phone  number, date  of birth,                                                               
and email  address.  If  the vessel is  new to the  individual or                                                               
fisheries and  thus does  not have an  Alaska Department  of Fish                                                               
and  Game  (ADF&G)  number,  then the  applicant  must  submit  a                                                               
current copy  of the  vessel's USCG  documentation for  the state                                                               
registration  to  the CFEC  and  fill  out an  additional  vessel                                                               
history section on page 2.   This section includes where and when                                                               
the  vessel  was purchased,  from  whom,  the numbers  issued  in                                                               
another state  for which the  vessel fished, and  other questions                                                               
about the vessel's lineage and history.                                                                                         
                                                                                                                                
MR.  GRUENING let  the committee  know that  every year  the same                                                               
information  needs  to be  verified  and  signed.   Intentionally                                                               
providing  false information  is punishable  by up  to a  year in                                                               
prison and/or  $25,000 fine and  subjects the permit holder  to a                                                               
suspension  of  fishing  privileges  or  possible  revocation  of                                                               
permit.   He emphasized that there  are few people who  are being                                                               
dishonest   on  these   forms,  particularly   when  taken   into                                                               
consideration  how expensive  the vessels  and permits  are.   An                                                               
additional layer  of assurance for  vessel provenance is  that to                                                               
even have a vessel in the first  place, one must first be a valid                                                               
permit holder:   hold  an Alaskan  fishing permit,  register that                                                               
through the CFEC, and then get the vessel license.                                                                              
                                                                                                                                
11:26:38 AM                                                                                                                   
                                                                                                                                
MR. GRUENING passed  to the committee an example of  the decal to                                                               
be displayed  on a vessel,  which is  issued every year  by CFEC.                                                               
The metal plate to be permanently  affixed to the vessel was also                                                               
explained  to the  committee.   More specifics  about registering                                                               
vessels  with  CFEC,   and  the  correct  way   to  display  said                                                               
registration, were  explained.   Mr. Gruening reiterated  that HB
  removes a  duplicative registration  requirement created  by                                                               
the  passage  of  Senate  Bill  92  by  exempting  aforementioned                                                               
vessels with  valid CFEC  licenses from  having to  be registered                                                               
every  three years  with the  DMV.   Owners of  active commercial                                                               
fishing vessels  already must renew their  registration annually,                                                               
so the moment CFEC registration is  no longer valid they would be                                                               
required to register with the DMV.   Not a free pass for life for                                                               
commercial fishing  boats, HB 185  would be a  one-year exemption                                                               
for active businesses that have renewed that year.                                                                              
                                                                                                                                
11:29:21 AM                                                                                                                   
                                                                                                                                
MR.  GRUENING let  committee  members  know that  a  copy of  the                                                               
proposed legislation  was provided  to the Alaska  Association of                                                               
Harbormasters  and Port  Administrators (AAHPA);  the association                                                               
submitted a letter of non-opposition  to the bill.  He encouraged                                                               
members  to read  the  letter,  as well  as  Senate  Bill 92,  to                                                               
reference changes  that would be made  under HB 185.   Letters of                                                               
support came  from United Fishermen  of Alaska,  Cordova District                                                               
Fishermen   United,    United   Southeast    Alaska   Gillnetters                                                               
Association,  and Alaska  Bering Sea  Crabbers, as  well as  from                                                               
individuals.                                                                                                                    
                                                                                                                                
11:31:13 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE KOPP  suggested he  should declare a  conflict [of                                                               
interest]  as a  commercial fisherman  in  Bristol Bay.   At  the                                                               
invitation of Chair Stutes, he  asked for clarification regarding                                                               
setnet registration exemption.                                                                                                  
                                                                                                                                
11:32:33 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE VANCE asked  whether the DMV has  a required decal                                                               
for law officers  for purposes of identification  related to non-                                                               
CFEC vessels.                                                                                                                   
                                                                                                                                
11:32:22 AM                                                                                                                   
                                                                                                                                
MATT GRUENING answered  that since House Bill 108 in  May of 2000                                                               
[passed  during the  Twenty-first Alaska  State Legislature]  all                                                               
undocumented vessels,  CFEC-registered or not, had  been required                                                               
to be  registered through the DMV.   The way HB  185 is currently                                                               
written with the  exemption being broad and applying  to all CFEC                                                               
vessels, some of which are  undocumented, rolls back a pre-Senate                                                               
Bill  92 requirement  for a  small segment  of CFEC  vessels that                                                               
previously  had  to  be  registered  with  the  DMV.    The  same                                                               
rationale  exists  for  exempting  CFEC-undocumented  vessels  as                                                               
documented; both fill  out the same information  through the same                                                               
license  renewal process  with the  CFEC.   Further, there  was a                                                               
titling  requirement  created in  Senate  Bill  92, which  states                                                               
those undocumented  vessels also  have to  title.   Exempting the                                                               
undocumented  CFEC  vessels  rolls  back  a  pre-Senate  Bill  92                                                               
requirement  on a  smaller subset  of fishing  vessels and  would                                                               
reduce   some   fees.     Mr.   Gruening   posited  that   having                                                               
documentation tied to CFEC registration  does make sense, and for                                                               
this reason sought  to make the committee aware that  the way the                                                               
bill  is currently  drafted applies  to all  CFEC vessels,  which                                                               
does exempt  a small  amount of  undocumented vessels,  which are                                                               
those vessels less than five net tons.                                                                                          
                                                                                                                                
MR.  GRUENING  mentioned  in closing  that  the  committee  could                                                               
choose to offer  an amendment to clarify that HB  185 would apply                                                               
to documented CFEC vessels.                                                                                                     
                                                                                                                                
11:35:30 AM                                                                                                                   
                                                                                                                                
CHAIR  STUTES stated  that  HB 185  would  remove an  unnecessary                                                               
burden placed  on Alaskans.   She  added that it  is her  hope to                                                               
move HB 185 at the next  hearing.  Furthermore, she said that she                                                               
would  consider the  clarifying amendment  and would  confer with                                                               
the committee before  the next meeting, at which  both public and                                                               
invited testimony would be allowed.                                                                                             
                                                                                                                                
[HB 185 was held over.]