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Committee moves bill to repeal duplicative vessel registration, transfers derelict-vessel fund balance to general fund
Summary
House Bill 31 would remove DMV registration for USCG-documented commercial fishing vessels that already hold CFEC licenses and repeal the Derelict Vessel Prevention Program Fund; the committee moved the bill out with fiscal notes on March 12.
The House Finance Committee voted to move House Bill 31 out of committee on March 12 after a hearing that reviewed the bill’s fiscal notes. Representative Louise Stutes (District 5) sponsored the bill, saying it removes duplicative registration requirements created by 2018 legislation and repeals the Derelict Vessel Prevention Program Fund.
Representative Stutes told the committee that Senate Bill 92 (2018) unintentionally required U.S. Coast Guard documented commercial fishing vessels — which already report ownership information annually through the Commercial Fisheries Entry Commission (CFEC) — to register with the Division of Motor Vehicles every three years. House Bill 31 would remove that redundant DMV registration requirement for active commercial vessels and repeal the derelict-vessel fund and the department duties tied to that fund, transferring the fund balance to the general fund.
Agency fiscal notes submitted to the committee: CFEC Commissioner Glenn Hite said CFEC expects no net operational effect or additional cost. Kathy Wallace, acting director of the Division of Motor Vehicles, said roughly 4,716 vessels would qualify for the exemption and estimated a DMV revenue reduction of $37,728 over the three-year DMV registration cycle. Aaron Timian of the Department of Natural Resources said the Derelict Vessel Prevention Program Fund had a balance of about $1.2 million, most of which derived from a settlement and about $220,000 from DMV fee collections; he warned that DNR would no longer have that dedicated funding available for vessel-removal work if the fund were repealed.
Sally Cox at the Department of Commerce said the department expected no fiscal impact. Committee members debated timing and history — the bill is largely unchanged from a version that passed the legislature the prior session but was vetoed for timing — and staff supplied control codes for fiscal documents. Representative Bynum moved the committee report (34-LS-0326/A with attached fiscal notes); the chairs noted no objections and the bill report was signed and moved from the committee for further action.
Why this matters: The bill affects how the state collects ownership data and funds derelict-vessel removal. Repealing the derelict vessel fund would transfer an existing dedicated balance to the general fund and remove a discrete funding source DNR has used for vessel-removal actions; DMV revenues would decline modestly if exemptions are enacted.
Next steps: The committee moved HB31 from committee with accompanying fiscal notes and recommendations; the committee report was prepared and circulated for signatures.
