Legislature(2005 - 2006)BELTZ 211

02/15/2005 01:30 PM Senate LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 100 ENHANCED 911 SURCHARGES TELECONFERENCED
Heard & Held
+ HB 64 EXTEND BOARD OF PUBLIC ACCOUNTANCY TELECONFERENCED
Moved HB 64 Out of Committee
+ HB 47 EXTEND BOARD OF REAL ESTATE APPRAISERS TELECONFERENCED
Moved CSHB 47(FIN) Out of Committee
*+ SB 93 FISHING PERMIT AND VESSEL LICENSE FEES TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
= SB 52 OCCUPATIONS/CORPORATIONS/BANKS/SECURITIES
Moved CSSB 52(L&C) Out of Committee
         SB  93-FISHING PERMIT AND VESSEL LICENSE FEES                                                                      
                                                                                                                                
CHAIR CON BUNDE announced SB 93 to be up for consideration.                                                                     
                                                                                                                                
CHERYL SUTTON,  staff to Senator  Ben Stevens, sponsor of  SB 93,                                                               
explained that  the Commercial Fisheries Entry  Commission (CFEC)                                                               
receives  no general  funds,  has  been on  a  downward trend  in                                                               
revenue  and  will  continue  like that  under  the  current  fee                                                               
structure. Some  of the contributing  factors are the  Carlson v.                                                               
Alaska case,  the decline in  value of certain fisheries  and the                                                               
consolidation of various fisheries.                                                                                             
                                                                                                                                
SB  93 would  bring the  state  into compliance  with rulings  in                                                               
Carlson v.  State of Alaska,  a class action brought  against the                                                               
state  by  non-resident  fishermen   who  claimed  that  the  fee                                                               
structure was  not lawful.  The state  had charged a  3 to  1 fee                                                               
differential for  non-residents. The  court agreed that  the fees                                                               
could not  be established  in this manner  and issued  a mandated                                                               
formula that  is now calculated  by the Office of  Management and                                                               
Budget (OMB).                                                                                                                   
                                                                                                                                
CHAIR BUNDE asked for her indulgence to step aside for a moment.                                                                
         SB  93-FISHING PERMIT AND VESSEL LICENSE FEES                                                                      
                                                                                                                                
MS. SUTTON  resumed her testimony  on SB 93. The  major component                                                               
of SB  93 is removal  of the $300  cap for annual  permit renewal                                                               
currently  in  statute.  It  is an  artificial  cap  because  the                                                               
statute  states that  the base  fee must  reasonably reflect  the                                                               
different rates  of economic return for  different fisheries. The                                                               
cap results in  fisheries with a very high  economic return being                                                               
charged fees that are disproportionately  low. She explained that                                                               
the CFEC  would develop  fees through  a public  hearing process.                                                               
Individuals  who  qualify  for  a  poverty  fee  would  still  be                                                               
required to pay the full non-resident fee differential.                                                                         
                                                                                                                                
1:54:28 PM                                                                                                                    
She  said that  vessel license  fees are  also addressed  in this                                                               
bill. A modest modification is  proposed to the six vessel length                                                               
categories and  the fees are  raised by  $15, $30, $45,  $60, $75                                                               
and $90 respectively. She pointed  out that the fee structure had                                                               
not been amended since 1995.                                                                                                    
                                                                                                                                
1:55:04 PM                                                                                                                    
                                                                                                                                
MR. FRANK  HOHMAN, Commissioner,  CFEC, agreed with  Ms. Sutton's                                                               
testimony.  The Carlson  case is  a factor  in CFEC's  decline in                                                               
revenues  and   lower  values  of  fishery   permits  along  with                                                               
consolidation  of  fishing fleets  in  federal  and state  waters                                                               
lowering the  values of fishery  permits upon which the  fees are                                                               
based. There  is a reduction  in the  number of permits  that are                                                               
purchased and the non-transferable  permits, which are held until                                                               
the permit  holder dies are  retired. He estimated that  in FY'06                                                               
the  commission  would  not  be  able  to  cover  its  budget  by                                                               
generating revenues alone. The new  fee structure will help for a                                                               
few more years.                                                                                                                 
                                                                                                                                
1:57:15 PM                                                                                                                    
The $300 cap for lesser value  fisheries might have only a modest                                                               
increase, but higher  value fisheries will fall  into position on                                                               
the fee schedule. The formula is  calculated as .04% of the value                                                               
of the permit, which won't be held down artificially.                                                                           
                                                                                                                                
1:58:12 PM                                                                                                                    
CHAIR  BUNDE asked  if  the non-resident  who  qualified for  the                                                               
poverty fee  would still pay the  non-resident differential, $115                                                               
this year.                                                                                                                      
                                                                                                                                
1:58:51 PM                                                                                                                    
MR. HOHMAN replied that is correct,  but it applies to only 20 or                                                               
so people.  A resident  also can  claim a  poverty fee,  which is                                                               
half of  the base fee,  but his taxes  have already paid  for the                                                               
differential.                                                                                                                   
                                                                                                                                
2:00:04 PM                                                                                                                    
CHAIR  BUNDE mused  that it  seemed a  contradiction of  terms to                                                               
have  a non-resident  come  to  Alaska to  fish,  but then  claim                                                               
poverty.                                                                                                                        
                                                                                                                                
2:00:45 PM                                                                                                                    
MR. AL  BURCH, Alaska Draggers Association,  Kodiak, supported SB
93.   His  problem   was  with   the  proposed   methodology  for                                                               
implementing it. He represents 45  trawlers in the Gulf that also                                                               
do halibut  long lining.  As trawlers, their  fees would  go from                                                               
$300 to  $3,975. As long  liners, they would  go from $300  up to                                                               
$1,500. His  little trawlers that  might gross $200,000  per year                                                               
are being  lumped in with  the super  trawlers in the  Bering Sea                                                               
that might  do over $30  million per  year. The fee  structure is                                                               
not  equitable as  it is  now;  however he  is not  adverse to  a                                                               
reasonable fee increase.                                                                                                        
                                                                                                                                
CHAIR BUNDE  said he  would hold  the bill  over for  Senator Ben                                                               
Stevens' insights.                                                                                                              
                                                                                                                                
2:03:41 PM                                                                                                                    
                                                                                                                                
MR. HOHMAN commented on the issue  of small boats that get caught                                                               
up  with  large boats.  If  the  bill  passed  with the  fee  cap                                                               
removed, CFEC  regulation would establish  fee classes  through a                                                               
public  hearing process.  If classes  were not  proper for  small                                                               
boats, he  would be happy to  make an amendment. It  was never an                                                               
issue with a $300 cap, which is small enough to not matter.                                                                     
                                                                                                                                
CHAIR BUNDE said the bill would be held.                                                                                        

Document Name Date/Time Subjects