02/13/2020 01:00 PM House TRANSPORTATION

            HB 185-REGISTRATION OF BOATS: EXEMPTION                                                                         
                                                                                                                                
1:29:48 PM                                                                                                                    
                                                                                                                                
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."                                                               
[Before the committee was CSHB 185(FSH).]                                                                                       
                                                                                                                                
1:30:48 PM                                                                                                                    
                                                                                                                                
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature,  presented  HB  185   on  behalf  of  Representative                                                               
Stutes,  prime sponsor.   He  explained  vessel documentation,  a                                                               
national  form of  registration through  the United  States Coast                                                               
Guard's  (USCG's)  national  vessel   documentation  center.    A                                                               
brochure  located  on  the Alaska  Legislature's  Bill  Action  &                                                               
Status Inquiry System  (BASIS) from the USCG  fully explains what                                                               
USCG documentation is.                                                                                                          
                                                                                                                                
1:31:46 PM                                                                                                                    
                                                                                                                                
MR. GRUENING  imparted that  vessel documentation  is one  of the                                                               
oldest functions  of the federal  government, dating back  to the                                                               
Eleventh  Act of  the first  Congress in  1789.   He said  HB 185                                                               
would exempt  active commercial fishing vessels  from duplicative                                                               
registration requirements  largely created  by passage  of Senate                                                               
Bill 92,  the Derelict  Vessel Bill, in  2018 [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 Division of                                                               
Motor Vehicles (DMV).                                                                                                           
                                                                                                                                
MR.  GRUENING pointed  out that  prior to  the passage  of Senate                                                               
Bill 92  in 2018,  USCG-documented vessels  were exempt  from DMV                                                               
registration.   That registration  was repealed with  Senate Bill                                                               
92  and,  as  a  result,  larger vessels  fell  under  the  DMV's                                                               
purview.   The rationale at  the time, Mr. Gruening  pointed out,                                                               
was to provide  the state and local municipalities  with a state-                                                               
maintained database on who owned  and operated vessels as well as                                                               
how to contact those individuals.                                                                                               
                                                                                                                                
MR. GRUENING  said Senate Bill  92 overlooked the  CFEC database.                                                               
Vessel licensure with the CFEC,  he pointed out, already required                                                               
annual renewal and provided the  necessary contact information in                                                               
a shareable,  publicly accessible state  database.  He  added for                                                               
committee members'  reference that anyone  can get on his  or her                                                               
cell phone and  access the CFEC database:   it's online, publicly                                                               
accessible information.                                                                                                         
                                                                                                                                
1:33:20 PM                                                                                                                    
                                                                                                                                
MR. GRUENING informed  the committee that HB 185,  in addition to                                                               
removing a duplicative registration  on larger vessels created by                                                               
the passage  of Senate  Bill 92, would  also take  the additional                                                               
step  of  exempting  USCG-undocumented,  CFEC-registered  vessels                                                               
under five  net tons from a  preexisting registration requirement                                                               
with the DMV.  He added  that the vessels in question would still                                                               
be subject  to the new  titling requirement  of the DMV  that was                                                               
created by Senate Bill 92.                                                                                                      
                                                                                                                                
MR.  GRUENING imparted  that commercial  fishing vessels  are the                                                               
backbone of Alaska's most vital  industry, and it's the sponsor's                                                               
intent  with  HB  185  that  vessels would  not  be  required  to                                                               
register every  three years with  the DMV at additional  cost and                                                               
frustration,  only  to provide  the  same  information the  state                                                               
already has through the vessel's annual licensure process.                                                                      
                                                                                                                                
1:34:26 PM                                                                                                                    
                                                                                                                                
MR. GRUENING briefly  ran through the CFEC  licensing process and                                                               
what  it entailed.   With  very  few exceptions,  he stated,  all                                                               
commercial  fishing vessels,  including tenders,  processors, and                                                               
transporters  engaged in  commercial  fishing  in Alaska  waters,                                                               
require CFEC licensure.  The  exceptions are primarily limited to                                                               
setnet skiffs,  he added.   The licensing statute  for commercial                                                               
fishing vessels in Alaska states  that as a condition of delivery                                                               
or landing fish  or engaging in commercial fishing  in the state,                                                               
a license is  required for a commercial vessel.   To give an idea                                                               
of scope, the CFEC licensed 8,806  vessels in 2019 for a total of                                                               
$629,052 in licensing fees.                                                                                                     
                                                                                                                                
MR. GRUENING  stated that the commission's  license forms require                                                               
quite a  bit of ownership  and contact information:   the owner's                                                               
name  and permanent  address, the  owner's authorized  agent, the                                                               
name and  number of  the vessel, the  vessel license  number, the                                                               
area to  be fished, and  any other information  deemed reasonable                                                               
by the CFEC.   He proceeded to  show the committee a  copy of the                                                               
four  different CFEC  licensing  forms with  the different  areas                                                               
asking  for ownership  information, vessel  lineage, and  ways to                                                               
identify the  vessel highlighted  in yellow.   On  page 1  of the                                                               
vessel licensing  form, under penalty  of perjury,  the applicant                                                               
must identify the legal owner of  the vessel, a contact person if                                                               
that  is   a  different  individual,  the   owner's  mailing  and                                                               
permanent address, social security  number, phone number, date of                                                               
birth, and email address.                                                                                                       
                                                                                                                                
MR. GRUENING stated  that if the vessel is new  to the individual                                                               
or  the fisheries  in Alaska  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 or                                                               
state registration to the CFEC  and fill out an additional vessel                                                               
history in section 2.                                                                                                           
                                                                                                                                
MR. GRUENING let  the committee know that every year  in order to                                                               
re-license a vessel, the same  information needed to be verified,                                                               
updated,  and signed  under penalty  of  perjury.   Intentionally                                                               
providing  false information  is punishable  by up  to a  year in                                                               
prison  and/or a  $25,000 fine,  and falsifying  information also                                                               
subjects the permit holder to  a suspension of fishing privileges                                                               
or permanent  revocation of permit.   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 stated  that HB  185 would  remove the  duplicative                                                               
registration  requirement  on  larger   vessels  created  by  the                                                               
passage of  Senate Bill 92.  Those vessels will still  be subject                                                               
to  the new  titling  requirement with  the DMV  as  well as  the                                                               
annual CFEC  licensure, Mr. Gruening  added, but  three different                                                               
state  registrations seemed  too much.   With  the passage  of HB
,  all the  information provided  by the  documented boats  is                                                               
there,  and the  new titling  requirement  in Senate  Bill 92  is                                                               
viewed in lieu of USCG documentation.                                                                                           
                                                                                                                                
MR. GRUENING  added that there is  a fiscal impact to  HB 185. He                                                               
added that  the DMV is  not concerned  with the lack  of revenue,                                                               
but it  has been suggested  that an  amendment could be  added to                                                               
make up for the DMV's lost funds.   He added that HB 185 is not a                                                               
free pass  for life  for commercial fishing  vessels, but  a one-                                                               
year  exemption  for active  businesses  that  have renewed  that                                                               
year.    Mr. Gruening  pointed  out  that  there have  been  many                                                               
letters from  businesses as well  as from individuals  in support                                                               
of HB 185.                                                                                                                      
                                                                                                                                
1:43:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CLAMAN  asked   why   there  would   not  be   a                                                               
corresponding  reduction  in cost  because  people  [in the  DMV]                                                               
would not be having to do as much work.                                                                                         
                                                                                                                                
1:44:27 PM                                                                                                                    
                                                                                                                                
MR. GRUENING  replied that  he had  asked representatives  of the                                                               
DMV  whether, while  making the  fiscal note,  they could  take a                                                               
look at the reduced labor costs, and they said they would.                                                                      
                                                                                                                                
1:44:33 PM                                                                                                                    
                                                                                                                                
JOANNE  OLSEN,  Interim  Director   for  the  Division  of  Motor                                                               
Vehicles,  Department of  Administration, said  that she  did not                                                               
have a breakdown  of costs for an employee who  would be handling                                                               
the transaction.                                                                                                                
                                                                                                                                
1:45:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CLAMAN said that he  would like to know more about                                                               
the labor savings  achieved by essentially not  having to process                                                               
as many applications.                                                                                                           
                                                                                                                                
1:45:25 PM                                                                                                                    
                                                                                                                                
MS. OLSEN said that she would be happy to provide that.                                                                         
                                                                                                                                
1:45:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE EDGMON followed up  by commenting that Senate Bill                                                               
92  wasn't in  effect  long enough  for the  DMV  to be  actively                                                               
involved, because it wasn't even in place in the summer of 2019.                                                                
                                                                                                                                
1:46:16 PM                                                                                                                    
                                                                                                                                
MR. GRUENING also pointed out that  a lot of people didn't comply                                                               
and that  the fiscal notes may  not yet be accurate,  but that he                                                               
would work with the DMV on the matter.                                                                                          
                                                                                                                                
1:46:57 PM                                                                                                                    
                                                                                                                                
CHAIR  STUTES  opened   public  testimony  on  HB   185.    After                                                               
ascertaining there was  no one who wished to  testify, she closed                                                               
public testimony.                                                                                                               
                                                                                                                                
1:47:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TALERICO said  it seemed as though the  DMV may be                                                               
the one  place that "carries its  own water," and that  this loss                                                               
probably has almost no effect [on the DMV].                                                                                     
                                                                                                                                
1:48:30 PM                                                                                                                    
                                                                                                                                
CHAIR STUTES announced that HB 185 was held over.