Legislature(2001 - 2002)
03/04/2002 01:52 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 04, 2002
1:52 P.M.
TAPE HFC 02 - 37, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:52 P.M.
MEMBERS PRESENT
Representative Bill Williams, Co-Chair
Representative Eldon Mulder, Co-Chair
Representative Con Bunde, Vice-Chair
Representative John Davies
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Carl Moses
MEMBERS ABSENT
Representative Eric Croft
Representative Jim Whitaker
ALSO PRESENT
Representative Drew Scalzi; Mary McDowell, Commissioner,
Commercial Fisheries Entry Commission.
SUMMARY
HB 288 An Act relating to commercial fisheries limited
entry permit buy-back programs.
CS HB 288 (FIN) was reported of Committee with a
"do pass" recommendation and with zero fiscal
notes by #1, the Commercial Fisheries Entry
Commission and two new notes by the Department of
Revenue.
HOUSE BILL NO. 288
An Act relating to commercial fisheries limited entry
permit buy-back programs.
[Tape Malfunction].
Vice-Chair Bunde MOVED to ADOPT the work draft, 22-LS1108\S,
Utermohle, 3/01/02, as the version of the bill before the
Committee. There being NO OBJECTION, it was adopted.
REPRESENTATIVE DREW SCALZI explained that HB 288 would
provide for the establishment of a buy-back fund when the
optimum number of entry permits is less than the number of
entry permits outstanding in a fishery as indicated in
Section 5.
HB 288 would provide for the establishment of a buy-back
plan as listed in Section 5. It also provides for the
establishment of buy-back assessments and programs for
fisheries that are proceeding with a buy-back plan. He
pointed out that:
· The assessment may not exceed 7% of the ex-vessel
(first wholesale) value of the fishery resource
and is paid by the commercial fishermen.
· It delineates the collection and appropriation
process for the assessment, and ensures that the
Commission expends the monies for the plan's
intended purpose.
Representative Scalzi claimed that under HB 288, when a
permit is "bought back", the permit no longer exists as
outlined in Section 6. HB 288 provides the same revenue
flow as the hatchery and Alaska Seafood Marketing Institute
(ASMI) tax that commercial fishermen currently pay as
outlined in Section 8. He stressed that the concerns of the
Committee had been met.
MARY MCDOWELL, COMMISSIONER, COMMERCIAL FISHERIES ENTRY
COMMISSION offered to answer questions of the Committee.
Co-Chair Mulder requested for a "walk through description"
of State funding versus "other" funding mechanisms.
Ms. McDowell explained that the if the Limited Entry
Commission makes a determination of the optimum number and
that number is less than determined in the fishery, then it
will leave the option open to seek federal funds. It
directs the Commission to start a buy-back fund. The State
funding leaves the option number open in order that the
Commission can go out and seek federal funding sources. The
Legislature could appropriate that money. All the authority
would be created but it would not close the funding sources.
She added that the intent of the option would help to create
the needed authority.
Co-Chair Mulder clarified that it would provide double
protection. He pointed out that the Limited Entry
Commission was not looking for the State to create that
authority, however, they need that authority in order to
begin.
Representative Hudson echoed comments made by Co-Chair
Mulder. He noted that the legislation was balanced and
protective.
[Tape Now Works].
Representative Davies MOVED to ADOPT a conceptual Amendment
#1. [Copy on File].
Page 2, Line 28, add language "Interest accrued by the
buy-back fund remains in the fund".
Page 4, Line 11, add a new line 11, language reading,
"amounts collected and interest accrued from these
amounts for each permit buy-back assessment imposed
under AS 43.76.220".
Line 4, Section 12, new line 12, language reads, "The
Legislature may appropriate revenue generated by a
permit buy-back assessment 'and associated interest'
to".
He asked that the legislative drafter make the determination
of where to insert the language.
There being NO OBJECTION, conceptual Amendment #1 was
adopted.
Co-Chair Mulder MOVED to report CS HB 288 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 288 (FIN) was reported out of Committee with a "do
pass" recommendation and with two new fiscal notes by the
Department of Revenue and the zero note #1 by the Department
of Fish & Game, Limited Entry Commission.
ADJOURNMENT
The meeting was adjourned at 2:03 P.M.
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