HOUSE BILL NO. 185 "An Act relating to the registration of commercial vessels; and providing for an effective date." 1:35:04 PM Co-Chair Johnston asked for a brief reintroduction of the bill. 1:35:26 PM MATT GRUENING, STAFF, REPRESENTATIVE LOUISE STUTES, explained that the bill exempted currently registered Commercial Fisheries Entry Commission (CFEC) vessels from the 3-year registration requirement created in 2018 under SB 92 [Short Title: Vessels: Registration/Titles; Derelicts] from the requirement to register every 3 years with the Department of Motor Vehicles (DMV). The bill also allowed for the implementation of an annual $8 fee in lieu of the 3-year, $24 registration. Commercial fishermen would still pay towards the fund and the Department of Natural Resources (DNR) Boating Safety Program. He explained that after the first year it would be a net loss to the state of zero. There were 2 new fiscal notes in members packets. He reiterated that the legislation removed the duplicative registration requirement on commercial vessels. They provided the same data regarding vessel ownership required through SB 92 through their CFEC registration. 1:36:37 PM Vice-Chair Ortiz MOVED to ADOPT Amendment 1 (copy on file): Page 2, following line 26: Insert a new bill section to read: "* Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to read: TRANSITION. The Alaska Commercial Fisheries Entry Commission shall waive the commercial fishing vessel registration fee imposed under sec. 3 of this Act for (1) calendar year 2021 for a commercial fishing vessel for which registration fees were paid in calendar year 2019 under AS 05.25.096(a)(1); (1) calendar year 2021 for a commercial fishing vessel for which registration fees were paid in calendar year 2019 under AS 05.25.096(a)(1)." Renumber the following bill sections accordingly. Page 2, line 31: Delete "sec. 5" Insert "sec. 6" Co-Chair Johnston OBJECTED for discussion. Vice-Chair Ortiz explained that Amendment 1 ensured that the CFEC licensed vessels exempt from DMV registration under the bill would not be charged twice as the legislation transitioned into law. He further explained that Section 3 of the bill instituted an annual $8 fee starting January 1, 2021 for all CFEC licensed vessels in lieu of the current 3-year, $24 fee with the DMV. However, CFEC licensed vessels that registered with the DMV in 2019 and 2020 had already paid a 3-year registration fee of $24. Because vessels had already paid, Amendment 1 directed the CFEC to waive the $8 fee for the calendar year 2021 for the vessels that paid the $24 to the DMV in 2019 for the calendar years of 2021 and 2020 and for the vessels that paid the $24 fee in 2020. Amendment 1 would ensure there would not be a duplication of payments by CFEC licensed vessels. 1:38:14 PM Representative Knopp asked if the bill sponsors had weighed in on the amendment and supported it. Vice-Chair Ortiz was offering the amendment on behalf of the bill sponsor. 1:38:31 PM Representative Wool asked about a brand-new commercial fishing boat and wondered if the $8 fee would be waived. Vice-Chair Ortiz responded that the amendment did not apply to new vessels. The bill only applied to vessels that had pre-paid in the years of 2019 or 2020. Co-Chair Johnston WITHDREW her OBJECTION. There being NO OBJECTION, Amendment 1 was ADOPTED. Co-Chair Johnston noted there were 2 new fiscal notes. She invited someone from CFEC to review them. 1:39:51 PM DALE KELLY, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISISON (via teleconference), relayed that the fiscal note [OMB Component #471] had been amended from the previous version, which was zero, and had no indication of changes in revenue. The commission had been directed as to how to properly convey the information. She reported that the fund would be a pass-through fund similar to the Fishermen's Fund. The commission would collect the funds and move them to another pot of money. The fiscal note reflected what the commission expected to take in for a portion of FY 21 beginning on January 1, 2021 if the bill were to pass. The commission anticipated receiving about $70,000 per year from the program. She indicated it was difficult to insert a finite number because there was a random number of vessels that licensed each year. She reported that in the previous year the commission licensed 8,806 vessels. However, the recent 5-year average was about 9,200. An adjustment might have to be made to the fiscal note with the amendment that just passed. 1:41:45 PM JOANNE OLSEN, DIRECTOR, DIVISION OF MOTOR VEHICLES (via teleconference), reviewed the fiscal note by the Department of Administration. She reported that the Division would experience a deficit of $21,500 because the division would no longer be collecting the registration. The division wrote the fiscal note based on a 3-year average of what it collected. However, an annual amount would apply. Annually, the DMV collected $12,082.67 based on the number the division took in in 2019. For the following 2 years the division would not collect any money. Co-Chair Johnston intended to move the bill on Monday [March 16, 2021]. HB 185 was HEARD and HELD in committee for further consideration.