Bill to pay for dredging with boat-registration fees passes Senate, but it’s been gutted

Increases in fees are cut well below original levels; commercial boats no longer exempt

Senate Bill 58 to increase funding for dredging of coastal inlets, which crossed from the N.C. Senate to the N.C. House last week doesn’t bear a lot of resemblance to the original bill sponsored by Sen. Harry Brown (R-Onslow). About the only things that haven’t been changed are the bill’s number, its name and its intent.

The bill went through two Senate committees for modification before a final vote on the floor last week of a substitute bill drafted by the Finance Committee.

The original bill proposed a multi-tiered structure of increased boat-registration fees based on boat length, some of the increases being in excess of 750 percent. What remains of the bill sets fees for registering boats in two levels: less than 26 feet and 26 feet and longer. Registration fees for smaller boats will be $25 annually (up from $15) or $75 for three years (up from $40). Registration fees for larger boats will be $50 annually and $150 for three years.

The original bill raised fees for smaller boats to $150 for three years and for larger boats up to $750 for three years.

The increased fees are for all boats registered or used for the majority of the year in North Carolina waters, regardless of location. That was a big change from Brown’s original bill, which provided numerous exemptions for boats involved in commercial fishing or documented (registered federally) boats.

One additional provision in the substitute bill is to transfer one-sixth of 1 percent of the N.C. Highway Fund excise taxes on motor fuels to the dredging fund. Dredging funds would only be available if matched one-to-one by monies from local governments or municipalities adjacent to the inlets.

One original concern that was not addressed in the substitute bill was how dredging projects funded will be scheduled and prioritized.

The substitute Senate Bill 58 passed its final vote in the Senate on May 6 and was forwarded to the House. The bill passed its first reading in the House on May 8 and was referred to the House Committee on Commerce and Job Development. If reviewed favorably, it will then go to the House Finance Committee before returning to the House floor. The trail of SB 58, from introduction to current wording and progress, can be found on the N.C. Legislature website at www.ncleg.net.