Legislature(2017 - 2018)ADAMS ROOM 519
04/17/2018 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB185 | |
| SB105 | |
| SB92 | |
| HB119 | |
| HB409 | |
| SB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 224 | TELECONFERENCED | |
| + | SB 185 | TELECONFERENCED | |
| + | HB 119 | TELECONFERENCED | |
| + | HB 409 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 105 | TELECONFERENCED | |
| += | SB 92 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 92(FIN) am
"An Act relating to abandoned and derelict vessels;
relating to the registration of vessels; relating to
certificates of title for vessels; relating to the
duties of the Department of Administration; relating
to the duties of the Department of Natural Resources;
establishing the derelict vessel prevention program;
establishing the derelict vessel prevention program
fund; relating to the authority of certain persons to
enforce laws relating to derelict vessels; and
providing for an effective date."
12:53:00 PM
Co-Chair Foster asked Co-Chair Seaton's staff to review the
changes in the committee substitute (CS).
12:53:30 PM
ELIZABETH DIAMENT, STAFF, REPRESENTATIVE PAUL SEATON,
highlighted the changes in the CS ["Explanation of Changes:
CSSB 92 (FIN)Version I.A to House Finance CS for CSSB92
(FIN) Version M (copy on file)]:
Section 7 (page 4, line 23)
Definition of Barge
In SB 92 Version I.A "barge" is defined as a "flat-
bottomed boat used for carrying freight that is either
nonmotorized and towed by another boat or motorized."
In the CS for CSSB92 (FIN) Version M the definition
has been changed to "barge" means a boat that is: (A)
motorized or nonmotorized, (B) designed to be towed,
and (C) used for carrying freight.
Note: The main difference reflected is the removal of
the flat-bottomed boat portion of the definition.
There was some concern that definition from CSSB 92
Version I.A could misinterpret a flat bottom skiff as
a barge.
Section 24 (page 14, line 30)
Instead of repealing Chapter 30. Article 03. Vessels
Abandoned on Business Premises of Persons Engaged in
Repair Business, the CS for CSSB92 (FIN) version M
keeps the article in statute and amends it to add
storage businesses, as well as extending the waiting
period for auctioning abandoned vessels from 5 days to
30 days.
Note: The change from 5 to 30 days was in the house
companion bill which did not repeal but amended the
section to be in line with the timeframe laid out in
other sections of the bill.
12:55:07 PM
Co-Chair Seaton MOVED to ADOPT proposed committee
substitute for CSSB 92(FIN)am, Work Draft 30-LS0481\M
(Bruce, 4/17/18). There being NO OBJECTION, it was so
ordered.
Representative Ortiz asked where he could find the language
pertaining to an exemption for boats up to 24 feet long.
Co-Chair Seaton directed attention to page 3, line 30.
Ms. Diament confirmed the language was on page 3, line 30,
subsection (f): "This section does not apply to an
undocumented boat that is 24 feet or less in length, unless
the owner of the boat chooses to apply..."
Representative Ortiz wondered if vehicles were currently
exempt from registering or titling in rural areas without
access to Division of Motor Vehicles (DMV) offices. If so,
he asked if the exemption was maintained for boats under
the legislation.
Ms. Diament deferred to the bill sponsor's staff.
RACHEL HANKE, STAFF, SENATOR PETER MICCICHE, replied that
she could follow up with the information after speaking
with DMV.
Co-Chair Seaton believed 24 foot boats were exempt in any
location. He stated that vessels operating on inland waters
were required to be registered.
12:58:29 PM
Representative Ortiz believed that current titling and
registration requirements for vehicles in outlying areas
were exempt. If there was an exemption for vehicles in
rural areas without access to DMV, he wondered if there was
an exemption for all boat owners.
Co-Chair Seaton believed if there was an exemption it was
not due to lack of access to DMV, but due to a lack of
access to roads with state maintenance. He believed there
was a registration exemption on vehicles not operated on
any public road.
Representative Ortiz asked for verification that Co-Chair
Seaton believed that the issue was not about lack of access
to DMV offices, but was related to being on the road
system.
Co-Chair Seaton added that registration with DMV could be
accessed via mail. He noted some areas may not have
internet, but there was phone and mail access.
Ms. Diament added that DMV would provide a written answer.
Representative Kawasaki stated that Section 4 dealt with
inadequate evidence of ownership. He stated a person was
supposed to obtain documentation to present to the
Department of Administration (DOA) as proof of ownership of
a boat. He asked if it was the same way people licensed and
registered their cars.
Ms. Hanke responded that DMV considered current boat
registration as proof of ownership, which was slightly
different than vehicles.
1:01:17 PM
Representative Kawasaki was concerned they could be getting
to a point where statute designated a person had ownership
of a boat, even though they may not have ownership. He
referenced Section 4(c)(2), which specified if it was
uncontested for three years following the issuance of the
"no title issued" registration that a person could become
the owner of record even though they may not have been the
owner of record. He asked if the issue had come up
previously.
Ms. Ranke responded that someone could currently go in to
DMV with a bar napkin as a bill of sale to get a
registration. After starting to issue the titles with a
sale and initial titling would use current registrations as
proof of ownership. She supposed it could be happening
currently.
1:02:37 PM
Representative Kawasaki referenced the exemption for
undocumented boats that were 24 feet or less. He wondered
how 24 feet had been chosen.
Ms. Hanke replied that she would have to get back to the
committee.
Representative Wilson thought a boat had to be larger than
24 feet and commercial.
Ms. Diament responded that the language Representative
Wilson was referencing was in the house companion bill HB
386, whereas, SB 92 only contained a length determination.
She explained boats that were 24 feet or less were exempt;
boats over 24 feet would require a title.
Representative Wilson asked how many 25-foot personal use
boats there were that would have to register. She thought
the problem pertained to commercial boats, not personal
boats. She wondered why the change had been made.
1:04:09 PM
Co-Chair Seaton responded that the 20-foot length was used
because it was considered fairly easy to dispose of. Boats
over 24 feet had built in fuel tanks and other things. He
stated there was generally a length and width ratio. He
continued it became a larger problem. The exemption used
[by the House version] had been for non-commercial so that
commercial vessels under 20 feet would still require a
title, but that had not been in the Senate bill. He
continued that the provisions considered what was a
reasonable amount. He asked his staff for number of boats
excluded pertaining to difference between 20 and 24 feet.
Ms. Diament relayed that there were about 9,100 boats
between 20 and 25 feet that were exempt.
Co-Chair Seaton explained the consideration was a balancing
act around what qualified as something that could be
abandoned, but would need to be taken care of by a
different mechanism; it was the reason for the length of 24
feet suggested by the Senate. He stated that the House
version of the bill had used 20 feet, but it had agreed
with the Senate.
Representative Wilson pointed out the 9,000 boats mentioned
by Ms. Diament pertained to boats between 20 and 25 feet,
not 20 and 24 feet. She asked if her understanding was
accurate.
Ms. Diament replied that the current language was 24 feet.
She stated the bill related to boats that were 20 feet and
under or 24 feet and under. She explained it would be under
25 feet.
Representative Wilson restated her question. She explained
that Ms. Diament had previously provided information about
the number of boats between 20 and 25 feet.
Ms. Diament corrected her previous testimony and clarified
that the [9,100] boats were between 20 and 24 feet.
1:06:23 PM
Vice-Chair Gara reviewed the four fiscal notes. There were
two zero fiscal notes from the Department of Natural
Resources and the Department of Environmental Conservation
(OMB Component Numbers 3002 and 3094 respectively). There
was one Department of Natural Resources fund capitalization
fiscal note for funds from fees generated under the
legislation - fees would generate roughly $58,600 beginning
in 2020 and would decline after registrations were
completed to $30,000 in 2022 and to $2,500 in 2023 and
2024. The last note was from the Department of
Administration (OMB Component Number 2348) DMV reflecting
fee generation of $65,000, declining to $50,000 in 2020.
The note reflected additional designated general fund (DGF)
revenues from fees beginning at $64,100 in 2019, increasing
to $108,600 in 2020 and 2021, $80,500 in 2022, $52,500 in
2023 and 2024. Undesignated general fund (UGF) revenues
were projected at $19,600 starting in 2020.
1:09:16 PM
Representative Wilson referred to page 2 of the Department
of Administration fiscal note (OMB Component Number 2348)
related to title and barge fees. The fiscal note specified
there were over 68,000 motorized boats registered in the
State of Alaska, of which 8,418 are 25 feet and over. It
also specified that a title fee of $20 for boats above 24
feet would generate approximately $168,360. She asked why
the language used 25 feet in one sentence and 24 feet in
the
MARLA THOMPSON, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION, (via teleconference), replied
the language was merely an error. The language should read
"25 feet and above."
Representative Wilson asked for verification that the
reference to 24 feet should be changed to 25.
Co-Chair Foster replied in the affirmative.
Representative Ortiz asked about the fiscal note OMB
Component Number 2348. He wondered if the fiscal note had
been changed since the boat exemption had changed from 20
feet to 24 feet. He believed there would be less revenue
with the inclusion of the exemption.
Ms. Thomson responded that the fiscal note reflected the
change.
Co-Chair Seaton noted there had been a question about
numbering of documented vessels. He read from a response he
had received to the question: "states may require
documented vessels to be registered and to display the
state decal showing that they have complied with state
requirements." However, there was some dispute about
whether vessels could be renumbered. The bill specified the
same numbers would be used in titling as used in the
documentation. He noted that the Coast Guard was present
for questions. Apparently other states had the same
situation.
1:12:17 PM
Co-Chair Seaton MOVED to report HCS CSSB 92(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCS CSSB 92(FIN) was REPORTED out of committee with a "no
recommendation" recommendation and with one new fiscal
impact note from the Department of Administration; one new
fiscal impact note from the Department of Natural Resources
for Fund Capitalization; and two previously published zero
notes: FN3 (DEC) and FN4 (DNR).
1:12:57 PM
AT EASE
1:13:15 PM
RECONVENED