Legislature(2001 - 2002)

02/26/2002 11:05 AM House RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB 206-VESSEL LIMITED ENTRY FOR COMM. FISHERIES                                                                               
                                                                                                                                
CHAIR KOTT  announced that the  first order of business  would be                                                               
HOUSE  BILL  NO.   206,  "An  Act  relating   to  a  vessel-based                                                               
commercial  fisheries  limited  entry system,  to  management  of                                                               
offshore  fisheries,  and  to  the  definition  of  'person'  for                                                               
purposes  of   the  commercial   fisheries  entry   program;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
KRIS KNAUSS,  Staff to Representative Kott,  House Rules Standing                                                               
Committee, Alaska  State Legislature,  informed the  committee of                                                               
the  changes encompassed  in  the  proposed committee  substitute                                                               
(CS) [Version 22-LS0426\W, Utermohle, 2/21/02].   On page 3, line                                                               
28, after  "recent" the  language "and past"  was inserted.   The                                                               
same  was done  on  page 4,  line  5.   On page  4,  line 9,  the                                                               
language "or  recently was" was  inserted.   On page 4,  line 10,                                                               
"may" was changed to "shall".                                                                                                   
                                                                                                                                
Number 0138                                                                                                                     
                                                                                                                                
REPRESENTATIVE  McGUIRE  moved to  adopt  CSHB  206 [Version  22-                                                               
LS0426\W, Utermohle,  2/21/02], as  the working document.   There                                                               
being no objection, Version W was before the committee.                                                                         
                                                                                                                                
Number 0156                                                                                                                     
                                                                                                                                
REPRESENTATIVE  DREW SCALZI,  Alaska State  Legislature, informed                                                               
the committee  that he is carrying  HB 206 at the  request of the                                                               
Commercial Fisheries  Entry Commission (CFEC) who  requested this                                                               
of the legislature.  A  few years ago, the legislature discovered                                                               
that a moratorium  situation was coming in hair  crab and scallop                                                               
fisheries.   Under the current  limited entry system,  [CFEC] was                                                               
tasked  with   developing  a  program  that   would  provide  the                                                               
aforementioned two  fisheries with  a limited  entry.   Under the                                                               
current  limited  entry plan,  a  limited  entry system  must  be                                                               
devised such that  the owner of the limited entry  permit must be                                                               
a person.  Although this makes  sense with the salmon and herring                                                               
fisheries  because  of the  small  operations,  under Bering  Sea                                                               
fisheries  there  are  very  large  vessels  that  have  multiple                                                               
skippers.   Therefore,  if  the CFEC  considers  a limited  entry                                                               
program, it must consider who is  given the permit in relation to                                                               
who operates the  vessel.  This legislation provides  CFEC with a                                                               
new tool, adoption  of a limited entry system.   By doing so, the                                                               
limited entry,  the initial recipient,  would be attached  to the                                                               
vessel rather  than to the person.   In the next  generation, the                                                               
[limited entry permit]  would revert back to a person.   In other                                                               
words, if the  vessel permit was sold later, the  permit would go                                                               
to a person.                                                                                                                    
                                                                                                                                
REPRESENTATIVE SCALZI  posed an  example in  which CFEC  used the                                                               
current  statutes to  provide for  a  limited entry  system.   If                                                               
there were seven vessels in the  hair crab fishery and the desire                                                               
was to  provide a limited  entry system,  then "you" may  have to                                                               
increase to  20 permits.   Therefore, the  entire purpose  of the                                                               
moratorium   would  be   circumvented  because   the  number   of                                                               
participants would have been expanded.                                                                                          
                                                                                                                                
Number 0407                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SCALZI  acknowledged  that there  has  been  some                                                               
opposition to this  bill because those people may  not be initial                                                               
recipients  under  [limited  entry].   He  emphasized  that  this                                                               
merely  provides  a tool  because  the  Limited Entry  Commission                                                               
still  has to  have public  hearings and  devise a  limited entry                                                               
plan.   This legislation merely  allows the permit of  an initial                                                               
recipient  to  go  to  a  vessel.    He  recalled  Representative                                                               
McGuire's  concern  in  regard  to  the  possibility  that  [this                                                               
limited  entry] would  short circuit  [new]  folks from  entering                                                               
into  these fisheries.    He  pointed out  that  [the Bering  Sea                                                               
fishery] isn't an entry-level fishery.                                                                                          
                                                                                                                                
REPRESENTATIVE SCALZI explained that  originally HB 206 was going                                                               
to  be a  generic tool  applicable  to all  fisheries.   However,                                                               
there was  opposition from  various areas of  the state  and thus                                                               
CFEC limited  the legislation to  the two species [hair  crab and                                                               
scallops].  In doing so, the  next generation issue arose.  Under                                                               
the current  limited entry system,  the owner of the  permit must                                                               
be on the  vessel fishing.  However, these are  large vessels and                                                               
the owners  are rarely  on board.   This legislation  would allow                                                               
the owner in the next generation  of the permit to hire a skipper                                                               
to run  the boat, as  is the  current situation.   Therefore, the                                                               
current business practices wouldn't be changed.                                                                                 
                                                                                                                                
Number 0633                                                                                                                     
                                                                                                                                
MAX HULSE,  Eagle River  Seafoods, testified  via teleconference.                                                               
He reviewed  the changes that  he would recommend.   He clarified                                                               
that the  changes on  page 3,  line 28, and  page 4,  lines 9-10,                                                               
involve  the  qualifications for  future  permits  issued in  the                                                               
scallop  fisheries.   On  page  3, line  28,  after "recent",  he                                                               
suggested inserting the language "and past".   On page 4, line 9,                                                               
he suggested changing  "is" to "was" and  insert "recent" between                                                               
"a"  and  "moratorium".   He  also  suggested changing  "may"  to                                                               
"shall"  on page  4, line  10.   Mr.  Hulse explained  that if  a                                                               
vessel  permit  system  is  established   in  the  future,  those                                                               
fishermen who benefit should be  those who have historically been                                                               
involved in  the fishery.   Therefore, [these changes  would] tie                                                               
the eligibility criteria to the receipt of a future permit.                                                                     
                                                                                                                                
Number 0840                                                                                                                     
                                                                                                                                
JOE  KYLE (ph)  noted that  he was  representing the  Korean Hair                                                               
Crab  fishers.   He announced  support of  Mr. Hulse's  suggested                                                               
changes that are reflected in [Version W].                                                                                      
                                                                                                                                
REPRESENTATIVE  McGUIRE mentioned  the  debate regarding  keeping                                                               
these  permits in  the hands  of Alaskans  and Alaskan  boats and                                                               
workers.  She inquired as to Mr. Kyle's opinion of that.                                                                        
                                                                                                                                
MR. KYLE  answered that he believes  the bill is in  harmony with                                                               
all the other  things in place at the federal  and state level in                                                               
regard to  keeping permits local.   However, he noted  that there                                                               
are no guarantees.                                                                                                              
                                                                                                                                
CHAIR KOTT closed the public testimony.                                                                                         
                                                                                                                                
Number 0908                                                                                                                     
                                                                                                                                
REPRESENTATIVE  McGUIRE moved  to  report CSHB  206 [Version  22-                                                               
LS0426\W, Utermohle,  2/21/02], out of committee  with individual                                                               
recommendations and  the accompanying  zero fiscal notes.   There                                                               
being no  objection, CSHB  206(RLS) was  reported from  the House                                                               
Rules Standing Committee.                                                                                                       

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