Legislature(2017 - 2018)GRUENBERG 120
02/20/2018 11:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB260 | |
| HB188 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 260 | TELECONFERENCED | |
| += | HB 188 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 188-COMM. FISH. ENTRY PERMITS; LOANS; TRUSTS
11:11:19 AM
CHAIR STUTES announced that the final order of business would be
HOUSE BILL NO. 188, "An Act relating to commercial fishing entry
permits; establishing regional fisheries trusts and fisheries
trust regions; relating to commercial fishing entry permits held
and leased by a regional fisheries trust; relating to the duties
of the Alaska Commercial Fisheries Entry Commission and the
Department of Commerce, Community, and Economic Development; and
providing for an effective date."
11:11:57 AM
REPRESENTATIVE KREISS-TOMKINS, speaking as prime sponsor of HB
188, stated that he received the proposed committee substitute
from Legislative Legal and Research Services at 10:49 a.m.,
which did not allow him time to review it. He stated that after
reading the draft it would be distributed to the committee and
stakeholders. In terms of the conceptual changes that are
contained in the committee substitute, no fundamental or
structural changes were made, but several smaller, technical
changes and improvements were made.
11:12:40 AM
REID MAGDANZ, Staff, Representative Kreiss-Tomkins, Alaska State
Legislature, offered to explain conceptual changes to the
proposed committee substitute (CS) for HB 188 [not distributed
to the committee]. As Representative Kreiss-Tomkins stated, the
proposed committee substitute (CS) for HB 188 was not available
for this meeting, he said. He stated that most of the changes
were made in response to comments received during the first two
hearings, from relevant agencies and from the fishing industry.
11:13:23 AM
MR. MAGDANZ began his summary of changes in the proposed CS,
noting that even though the requirement for Alaska residency to
access a fishing permit was removed due to constitutional
concerns was from the bill, several sections in the bill
referred to the purposes of the fisheries trust being to help
Alaskans and communities. These references were pointed out by
the Commercial Fisheries Entry Commission (CFEC). The proposed
committee substitute for HB 188 [proposed CS not before the
committee] removed the references and would make the bill less
likely to come under constitutional challenge.
11:14:00 AM
MR. MAGDANZ stated another change was in response to Chair
Stutes' question about emergency transfers of fisheries trust
permits. Under the proposed CS for HB 188, the fisheries trust
would play a role in vetting candidates for emergency transfers
of fisheries trust permits and the emergency transferees must be
qualified in the same way any other holder of a fisheries trust
permit would need to be.
MR. MAGDANZ stated that language in prior versions allowed the
Department of Commerce, Community & Economic Development (DCCED)
to conduct audits of fisheries trusts. The DCCED advised the
sponsor that the audits would fall outside the realm of the
department's responsibility so the proposed CS for HB 188 remove
that audit option. He noted that fisheries trusts would be
subject to special audits by the Legislative Budget and Audit
Committee (LB&A); however, there would not be an expectation
that the department conduct an annual audit of the fisheries
trust.
11:15:08 AM
MR. MAGDANZ also pointed out that the sections describing the
types of permits left a slight "loophole" where it was possible
when a fishery crossed a fisheries trust boundary that perhaps
more than one fisheries trust could be eligible to hold that
permit. The proposed CS for HB 188 closed that loophole and
made it clear that only one fisheries trust would be eligible to
hold any specific type of permit, he said.
MR. MAGDANZ stated that some concerns were expressed by the
fishing industry relating to a "proportionality rule," which
required a fisheries trust to hold a set of permits that was
quantitatively proportional to the distribution of those permits
within its region. There were concerns that this would perhaps
force a fisheries trust to try to acquire permits in fisheries
that were less suited for new entrants and the purposes of the
fisheries trust, he said. The proposed CS for HB 188 addressed
that issue, he further said.
11:16:23 AM
MR. MAGDANZ said that the CFEC commissioners also flagged a
section in AS 16.44.060(d) where the word "leasing" was omitted
from the list of prohibitions on temporarily transferred
permits. The proposed CS for HB 188 addressed that issue and
would put leasing back into that language, making the list of
prohibitions consistent in the existing limited entry law, which
does not allow permits to be used for security for credit.
11:17:07 AM
MR. MAGDANZ said that the proposed CS for HB 188 clarified that
the six-year cap was a cap on an individual's ability to access
a fisheries trust permit. He explained that this was cumulative
no matter what fisheries trust or fishery. In prior versions it
was not clear as to whether it was six years for each type of
permit or six years total. The sponsor wanted it to be six
years total, he advised.
MR. MAGDANZ explained that in response to feedback from
primarily fishermen, new language was added to the
qualifications section that would allow a fisheries trust board
to go above and beyond the statutory requirements. This
basically would mean that before a fisheries trust would
transfer a permit to someone, the fisheries trust board could
require the individual show proof of insurance on his/her boat,
that the boat was in good working order, and that the individual
had a place to sell his/her fish, or other requirements
necessary to safely and successfully prosecute the fishery. The
sponsor found this to be a good addition and was glad it had
been pointed out.
11:18:25 AM
MR. MAGDANZ explained that the last two changes related to the
boundaries of fisheries trust regions. The prior version stated
that fisheries trust regions would be only on land. The
proposed CS for HB 188 would clarify that a fisheries trust
region should include both land and state waters. The last
change addressed a problem arising because some CFEC salmon
administrative areas contained only one or very few communities.
It was pointed out that the current bill language may have
forced the Department of Commerce, Community & Economic
Development (DCCED) to draw a regional fisheries trust, which
was in fact not very "regional" at all and basically included
only one community. The proposed CS for HB 188 provided
clarifying language to direct the DCCED how to draw the regions
so that situation would not arise.
11:19:38 AM
REPRESENTATIVE EASTMAN referred to the "six-year limit." He was
not certain whether someone that reached the six-year limit
could then apply for another fisheries trust permit for another
six years, perhaps with a six-month gap between them. He asked
for further clarification on whether that was remedied by the
Legislative Legal and Research Services attorney [in the
conceptual changes being discussed].
MR. MAGDANZ, after confirming Representative Eastman was
reviewing the original version of HB 188 [30-LS0389\U] agreed
that it would have been possible to do so in the original
version. It was never the sponsor's intention to allow for a
fisheries trust to exceed six-years. The proposed CS for HB 188
would clarify that by stating "an individual may not receive a
temporarily transferred entry permit or permits for a cumulative
period of more than six years, regardless of whether the years
are consecutive."
11:21:00 AM
REPRESENTATIVE EASTMAN further asked whether that was spelled
out for the lifetime of an individual.
MR. MAGDANZ answered that the sponsor received the proposed CS
for HB 188 moments ago and was not able to verify the language;
however, the sponsor's intent was for it to be a lifetime cap.
11:21:20 AM
CHAIR STUTES asked how many members serve on the board of the
fisheries trust.
MR. MAGDANZ responded that boards would be composed of one
representative from each incorporated municipality within the
fisheries trust region. He stated that an "incorporated
municipality" meant each community that has a city government
and each borough government. Each incorporated municipality
would be allowed to nominate an individual to serve on the board
to the governor and the governor would select one person from
each of those communities. He offered his belief that the
smaller boards would be on the order of 5 to 10 members and the
largest regions in the state would have 25 members.
11:22:11 AM
CHAIR STUTES asked whether a fiscal note had been prepared for
HB 188.
MR. MAGDANZ responded yes; that funds to support board members
would come from by receipts generated by the fisheries trust.
11:22:39 AM
CHAIR STUTES opened public testimony on HB 188.
11:23:25 AM
MARK CARREL, Commercial Fisherman, stated that he was a self-
employed fisherman. As a captain and owner of a Prince William
Sound salmon drift gillnet vessel, he offered his strong support
for HB 188. He said that the regional fisheries trusts would be
a great tool to help young Alaskans get into the fishing
industry. He has been commercial fishing for over 10 years and
has first-hand experience with how difficult it can be to
purchase a boat and permit, especially with extremely high
permit costs.
MR. CARREL said that many young people in his community want to
become commercial fishermen; however, the costs to initially
cover the boat, nets, and permit make it too expensive for them
to do so. He said that many rely on leasing medical transfer
permits for the first few years. This can be a risky
proposition since the price of medical transfer permits
fluctuate dramatically from one year to the next, he said. No
certainty exists on availability of medical transfer permits
even if the person had one the prior year. He said he has had
friends who have bought boats and fished only to discover that
they could not afford the permit because the price jumped to
$20,000 in a subsequent year. The permit fees must be paid
upfront, and his friends simply did not have the cash to pay the
fees, he explained. This meant these individuals ended up
dropping out of the fishery. He offered his belief that having
multiple year lease agreements under the regional fisheries
trust would allow individuals to plan. These individuals could
buy their boats with the knowledge that they had six years to
save to buy a permit, giving them the security and support they
need. He urged members to support HB 188.
11:26:14 AM
MICHAEL KAMPNICH, Commercial Fisherman, related that he has been
a resident of Craig for 34 years, currently as a commercial
fisherman with a Southeast Alaska drift gillnet and longline
permit. He stated he previously served as the harbormaster for
the City of Craig for 18 years. He said he strongly supports HB
188. He acknowledged the loss of permits and family-based
commercial fishing operations in his community.
MR. KAMPNICH said family-based commercial fishing businesses
have historically provided the core of the economic and social
well-being of Alaska's small, rural communities. The loss of
these permits has been devasting for families and the economy of
these small communities. The one constant to support the well-
being of communities in Southeast Alaska has been the marine
environment and commercial fishing. In his time as harbormaster
he has observed many hardworking young men and women take the
lead to establish themselves in the commercial fishing industry.
Too often financial constraints have been the reason some have
not been successful. He offered his belief this effort to try
and support young people re-engaging in the commercial fishing
industries was a worthy effort. He thanked members for the
opportunity to address the committee.
11:29:21 AM
KIM REITMEIER, Executive Director, ANCSA Regional Association,
stated that she was a member of the Koniag Regional Association
and a granddaughter of a commercial fisherman from Kodiak. She
offered the association's support for HB 188, noting she
represents the 12 chief executive officers (CEO) from the 12
Alaska Native Regional Corporations. The collective mission of
these 12 Alaska Native Regional Corporations has been to promote
and foster the continued growth and economic strength on behalf
of the more than 127,000 shareholders, who stand together today
to support HB 188.
MS. REITMEIER said that the regional corporations would like to
see economic development in communities and economically
sustainable villages with jobs available. These corporations
put in a significant amount of time to create economic
opportunities within their regions. Commercial fishing has been
an economic driver for these communities, as well as a vital
cultural heritage. Commercial fishing has been a source of jobs
for nearby communities with limited cash economies. Alaskans
should be doing everything possible to ensure that those
individuals near fisheries have good access to them.
MS. REITMEIER said that the ANSCA CEOs know their communities
and the fishing histories, such that many communities once had
thriving hard-working commercial fishing fleets that have
dwindled. The barriers to entry into the commercial fishing
industry in have been especially high for those living in rural
communities.
MS. REITMEIER offered her belief that the fisheries trust would
provide better opportunities for individuals to get into
commercial fishing, especially at a time when fishing fleets are
aging. The fisheries trusts could be important tools in rural
communities, especially since they will complement extensive
economic development efforts for ANSCA corporations. Fisheries
trusts could be a self-sustaining economic tool that once
established can provide economic opportunities without continued
corporation or government funding, she said. She offered ANCSA
Regional Association's support for HB 188.
11:32:22 AM
RICK WYSOCKI, Commercial Fisherman, offered his support for HB
188. He said that his family is from this region and that he
has been commercial fishing since he was eight years old and he
became a permit holder when he was 12 years old. His family has
fished on a beach about six miles across the bay from
Dillingham, he said. He reported that only 4 of 30 boats that
fish on that beach are local. About 85 percent of the
commercial fishing [permit and boat] ownership in the community
was not local, he reported. He reiterated that non-local
ownership has been a problem in his community. He offered his
belief that HB 188 has identified the root of the problem and
offers a viable solution. He said HB 188 would provide a good
tool to help Alaskans. He again characterized the extent of the
outside ownership as devastating to his community and noted that
the boats fly in their crews from out of state, their goods are
barged in, and many do not pay local taxes. He especially liked
HB 188 because it would create opportunities for commercial
fishing to young people in his community, as well as economic
stability from the six-year terms. He closed by stating that he
would like to see HB 188 advanced for more discussion.
11:36:06 AM
CHAIR STUTES announced that public testimony would be left open
on HB 188.
[HB 188 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB260 Sponsor Statement 1.25.18.pdf |
HFSH 2/20/2018 11:00:00 AM HRES 3/16/2018 1:00:00 PM HRES 3/26/2018 1:00:00 PM HRES 4/2/2018 1:00:00 PM HRES 4/4/2018 1:00:00 PM |
HB 260 |
| HB260 Residential Hunters AK Letter of Support HB 260.pdf |
HFSH 2/20/2018 11:00:00 AM HRES 3/16/2018 1:00:00 PM |
HB 260 |
| HB260 ver A 1.25.18.pdf |
HFSH 2/20/2018 11:00:00 AM HRES 3/16/2018 1:00:00 PM HRES 3/21/2018 1:00:00 PM HRES 3/26/2018 1:00:00 PM HRES 4/2/2018 1:00:00 PM HRES 4/4/2018 1:00:00 PM |
HB 260 |
| HB 260 Fiscal Note-DFG- 2.16.18.pdf |
HFSH 2/20/2018 11:00:00 AM |
HB 260 |
| HB188 Supporting Document-ANCSA CEOs Letter.pdf |
HFSH 2/20/2018 11:00:00 AM |
HB 188 |