HB 31-VESSELS: REGISTRATION/DERELICT FUND  11:22:06 AM CHAIR STUTES announced that the final order of business would be HOUSE BILL NO. 31, "An Act relating to the registration of commercial vessels; and relating to the derelict vessel prevention program fund." 11:23:00 AM MATT GRUENING, Staff, Representative Louise Stutes, on behalf of Representative Stutes, prime sponsor, presented HB 31 and a background on vessel registration. He began by describing that vessel documentation is a national form of vessel registration through the U.S. Coast Guard (USCG) and is one of the oldest functions of the Federal Government. He noted that there is an informative brochure in the committee file and on the Bill Action and Status Inquiry System (BASIS) that helps explain what USCG documentation is. He explained that the documentation pertains to boats that have under five net tons of displacement. He clarified that the terms "documented" and "undocumented" in his presentation were with reference to boats with or without USCG registration. 11:24:00 AM MR. GRUENING explained that HB 31 would exempt certain commercial fishing vessels from duplicative registration requirements that were created by the passage of Senate Bill 92 during the Thirtieth Alaska State Legislature. This bill would specifically remove the requirement for USCG documented vessels with a current Commercial Fisheries Entry Commission (CFEC) license to register every three years with the Division of Motor Vehicles (DMV). MR. GRUENING explained that prior to the passage of Senate Bill 92, USCG documented vessels were exempt from DMV registration and that exemption was repealed under Senate Bill 92. As a result, larger vessels fell under DMV's purview. The rationale behind Senate Bill 92 was to provide the state and local municipalities with a state-maintained database regarding vessel ownership and operation, and vessel contact details. MR. GRUENING noted that vessel licensure with CFEC already requires annual renewal, and it provides necessary ownership information in a state-maintained database. He remarked that vessels already adhered to the original intent of Senate Bill 92. He noted that the sponsor's intent is that these operators should not be required to register with DMV when pre-existing registrations are already in place. He reiterated that HB 31 seeks to remove the duplicative registration process for these vessels. MR. GRUENING noted that one question to consider is who must register with the CFEC, he stated that nearly all commercial fishing vessels have this requirement. He remarked that the CFEC licensed 7,413 vessels in 2024, 4,356 of which were USCG documented vessels. He concluded by remarking that this is not a free pass for commercial fishing vessels and renewal practices still would be required. He said that HB 60 has overwhelming support in the fishing industry. He also said that registrations put a burden on DMV and the proposed legislation would help alleviate workloads. 11:28:35 AM REPRESENTATIVE HIMSCHOOT asked whether similar legislation was passed before. MR. GRUENING replied that this legislation passed last year, but after midnight, and it was subsequently vetoed by the governor. 11:28:53 AM REPRESENTATIVE KOPP remarked that HB 31 makes a lot of sense. He asked for clarification for set-net fishermen in skiffs 24 feet or less. He said they are already exempt from CFEC registration and currently register with the DMV. He asked whether HB 31 bill would change this. MR. GRUENING responded that skiffs associated with set netting would not be required to register with the CFEC and would continue registration with the DMV. 11:29:49 AM CHAIR STUTES announced that HB 31 was held over.