Legislature(2007 - 2008)HOUSE FINANCE 519
04/08/2008 08:30 AM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB221 | |
| SB254 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 202 | TELECONFERENCED | |
| + | SB 259 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 254 | TELECONFERENCED | |
| += | SB 221 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 8, 2008
8:51 a.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 8:51:13 AM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Richard Foster
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Bill Thomas, Jr.
MEMBERS ABSENT
Representative Mary Nelson
ALSO PRESENT
Sharon Kelly, Staff, Co-Chair Chenault; Pete Ecklund, Staff,
Representative Kevin Meyer; Bruce Wallace; Mark Vinsel,
Executive Director, United Fishermen of Alaska (UFA); Scott
McAllister, Marketing Chairman, United Fishermen of Alaska;
Jim Stone, President, Alaska Scallop Association; Bob
Thorstenson, Juneau
PRESENT VIA TELECONFERENCE
Shawn Dochtermann, Kodiak Creman's Association, Anchorage;
Julie Kavanaugh, Kodiak; Oliver Holm, Kodiak; John Winther,
Petersburg; Max Hulse, Eagle River; Dick Tremaine, Norton
Sound Economic Development Corporation; Theresa Peterson,
Kodiak; Kip Thomet, Kodiak; Pete Hannan, Kodiak; Alan Parks,
Homer; Arnie Thompson, Executive Director, Alaska Crab
Coalition, Executive Member, United Fisheries of Alaska;
Dawson Hoover, Coastal Village Regions; Thomas Gil Martin,
Arctic Storm; Mako Haggerty, Homer; John Jones, Chiknick
Lagoon
SUMMARY
CSSB 221(FIN) am
"An Act making and amending appropriations,
including capital appropriations, supplemental
appropriations, and appropriations to capitalize
funds; and providing for an effective date."
CSSB 221(FIN) am was heard and HELD in Committee
for further consideration.
SB 254 "An Act extending the termination date of the
Alaska regional economic assistance program; and
providing for an effective date."
SB 254 was heard and HELD in Committee for further
consideration.
SB 259 "An Act repealing certain provisions relating to
applications for medical assistance coverage;
making certain provisions of ch. 96, SLA 2006,
retroactive; providing for an effective date by
repealing an effective date section in ch. 96, SLA
2006; providing for an effective date for certain
sections of ch. 96, SLA 2006; and providing for an
effective date."
SB 259 was scheduled but not heard.
SB 202 "An Act relating to expenditures in aid of or to
implement the provisions of the federal Real ID
Act."
SB 202 was scheduled but not heard.
8:52:14 AM
CS FOR SENATE BILL NO. 221(FIN) am
"An Act making and amending appropriations, including
capital appropriations, supplemental appropriations,
and appropriations to capitalize funds; and providing
for an effective date."
Vice-Chair Stoltze MOVED to ADOPT HCS CSSB 221(FIN), labeled
25-GS2007\V, Kane, 4/7/08 as the working draft before the
committee. There being NO OBJECTION, it was so ordered.
PETE ECKLUND, STAFF, REPRESENTATIVE KEVIN MEYER, noted that
all budget items previously vetoed by the Governor are
included in this section.
Co-Chair Meyer explained how the items were ranked. The
primary emphasis in this version of the bill are the
additions made by House members.
8:55:32 AM
Representative Thomas asked how it would be known which
projects were which. Mr. Ecklund noted the bill was a work
in progress and an explanatory section would be forthcoming.
8:56:22 AM
SHARON KELLY, STAFF, CO-CHAIR CHENAULT, reviewed the
supplemental operating items added to the bill. There were
12 items added: an increment for the Department of Law for
$1.4 million in Section 18; nine items for the Department of
Transportation and Public Facilities, the majority of which
are requests for increases for fuel, and one decrement; one
increment for the University of Alaska that totals $927.2
which funds the fuel request for FY 08 at 100 percent; and
in Section 16, intent language was added to say that the
economic stimulus rebate checks issued by the federal
government during 2008 will not affect income eligibility
criteria for any state program.
Co-Chair Meyer reported that those additions totaled about a
$2 million increase.
Vice-Chair Stoltze said it was confusing which districts
each item belongs to. Co-Chair Meyer said that information
would be included.
CSSB 221 (FIN) am was heard and HELD in Committee for
further consideration.
AT-EASE: 8:58:56 AM
RECONVENED: 9:00:12 AM
SENATE BILL NO. 254
"An Act extending the termination date of the Alaska
regional economic assistance program; and providing for
an effective date."
Vice-Chair Stoltze MOVED to RESCIND the action taken
previously to report HCS SB 254(FIN) out of Committee on
April 6. There being NO OBJECTION, it was so ordered.
9:02:14 AM
BRUCE WALLACE, JUNEAU, testified that the bill would allow
fisheries of limited size to go forward in a controlled
manner and is critical in limiting the size of the by catch.
He testified in support of the bill because of those two
components.
Representative Kelly asked if he was in favor of the
amendment. Mr. Wallace said yes.
9:05:09 AM
MARK VINSEL, EXECUTIVE DIRECTOR, UNITED FISHERMAN OF ALASKA
(UFA), testified in support of the amendment to extend the
termination date of the Korean Hair Crab and Weathervane
Scallop fisheries, which have proven to be successful in
staying within by catch limits. He emphasized that it is a
vessel-based commercial fishery and UFA does not support
that method for any other fishery. Vice-Chair Stoltze asked
if the issue was contentious within UFA. Mr. Vinsel
reported that there was wide support.
9:06:25 AM
SCOTT MCALLISTER, MARKETING CHAIR, UNITED FISHERMAN OF
ALASKA, spoke to the importance of the sustainability of the
industry. He stated support for the amendment and wished to
see the sunset eliminated.
Vice-Chair Stoltze asked if Mr. McAllister wanted to see the
program continued permanently. Mr. McAllister said he
would. Vice-Chair Stoltze commented on the importance of
sustainability.
9:08:51 AM
JIM STONE, PRESIDENT, ALASKA SCALLOP ASSOCIATION, thought at
issue was the question of corporate ownership. He read from
testimony about the positives of fishermen working together
to target quotas and reduce by catch. He pointed out that
the Department of Fish and Game supports the amendment. He
testified in support of the sunset date being extended in
this bill. He dispelled the misconception about the
industry not paying taxes. He defended the Alaska Scallop
Association. He testified in support of the bill.
Representative Foster asked who was attacking the
Association. Mr. Stone explained that the attack would be
if they would lose the ability to prosecute the fishery in a
responsible manner.
9:11:30 AM
BOB THORSTENSON, JUNEAU, testified in support of the bill.
He spoke against extinguishing this limited entry system.
He spoke to the 17,500 of Alaskans that are a part of the
two fisheries. It is a larger number than all other
fisheries combined. He said there have been no court cases
regarding the two fisheries since the legislation was passed
in 2002. He noted all of the court cases related to other
fisheries.
Mr. Thorstenson discussed the introduction of a companion
Senate bill. He maintained that limited entry was the most
effective method for fisheries. He shared tax revenue
information from the fisheries.
Vice-Chair Stoltze asked if other limited entry fisheries
should be abolished. Mr. Thorstenson replied no. Vice-
Chair Stoltze thought the corporate entity definition was
misleading. Mr. Thorstenson explained the makeup of the
corporations.
9:18:16 AM
SHAWN DOCHTERMANN, KODIAK CREWMAN'S ASSOCIATION, KODIAK,
related his experience with fisheries. He testified against
the vessel-based limited entry portion of the bill. He
believed that the bill opens the door for commercial entry
fishery permits to be owned by corporations, instead of by
actual persons. He questioned the number of vessel
participants. He spoke of the work on SB 113 to change the
constitution. He testified in opposition to SB 254.
9:20:34 AM
JULIE KAVANAUGH, KODIAK, spoke to the original intent of the
bill. She maintained that inserting the amendment was not
appropriate. The original intent of the bill was to extend
the Alaska Regional Economic Development Organizations
(ARDORS) program, which is unrelated to the vessel based
permit system. She shared the history of the hair crab and
scallop fisheries and the adverse affects this bill would
have. She detailed the negative effects of the bill.
9:25:01 AM
OLIVER HOLM, KODIAK, testified against the inclusion of the
amendment in the bill. He maintained that vessel-based
limited entry is not needed for conservation reasons. He
commented that this legislation is an attempt to allow
corporate ownership of fisheries, which he opposes.
9:27:37 AM
MAX HULSE, EAGLE RIVER, testified in support of the
amendment to SB 221. He shared his family's experience in
scallop fisheries and requested that permits not be taken
away.
9:29:24 AM
JOHN WINTHER, PETERSBURG, related his experience as a hair
crab fisher and his work on the original legislation in
2005. He testified in support of the amendment and for the
removal of the sunset clause.
Vice-Chair Stoltze asked for comments on the importance of
sustainability. Mr. Winther said he has worked very hard to
get name recognition, limited entry, and sustainable
fisheries in Alaska. Vice-Chair Stoltze asked if this idea
could be carried over to the salmon fishery. Mr. Winther
said it could.
9:33:25 AM
DICK TREMAINE, NORTON SOUND ECONOMIC DEVELOPMENT
CORPORATION, said he represents the Community Development
Quota (CDQ) element that owns two permits. He explained
that these are fisheries that occur primarily in federal
waters. He maintained that the owners are corporate-owned.
He advocated for maintaining the current entry system.
Representative Hawker asked for assurance that the CDQ
program benefits the whole state. Mr. Tremaine replied that
they pumped dollars and services back to the state.
9:37:17 AM
Representative Hawker asked if the CDQ program is working.
Mr. Tremaine said that the CDQ program is unique in that it
takes a public resource and subsidizes communities at no
cost to taxpayers. It is working very well.
9:38:30 AM
THERESA PETERSON, KODIAK, testified against the inclusion of
the language which would allow vessels to own permits. She
thought it would erode the limited entry system intent. She
encouraged the vessel owners to work together to figure out
a way to manage the fishery and keep the permits in the
names of the people fishing.
KIP THOMET, KODIAK, testified against inclusion of the
amendment in the bill. He wanted permits to be held by
active fishermen and not individuals or entities that could
exploit fishermen, as the legislation originally intended.
9:43:30 AM
PETE HANNAN, KODIAK, testified against including the
amendment in the bill. He requested more time for public
comment. He maintained that competition is healthy for the
industry.
9:44:54 AM
ALAN PARKS, HOMER, voiced concern about the process of
inserting the language in the bill and not allowing enough
time for public testimony. He testified against the vessel-
based limited entry system. He thought all other limited
entry system were in compliance with the Limited Entry Act.
He spoke to a good record for progressive consumers and the
process of dredging for scallops.
9:47:45 AM
ARNIE THOMPSON, EXECUTIVE DIRECTOR, ALASKA CRAB COALITION,
EXECUTIVE MEMBER, UNITED FISHERIES OF ALASKA, shared the
history of crab and scallop closure areas and the limiting
of vessel-based licensing. He maintained that the industry
has been sustainable. He agreed with Mr. Winther regarding
the need for a vessel-based license program for both crab
and scallop fisheries.
9:52:07 AM
DAWSON HOOVER, COASTAL VILLAGE REGIONS, testified in support
of maintaining CDQ programs. The vessel limitation program
is working.
9:53:55 AM
THOMAS GIL MARTIN, ARCTIC STORM, testified against the
amendment to SB 254. He shared his experience with owning a
scallop fishery. He related the history of the fisheries.
He suggested going to open access and making rules to favor
the small operators.
9:56:59 AM
Representative Gara asked how the current system made the
fishery too expensive to fish. Mr. Martin related how the
observer charges a $20,000 deposit which priced the small
boat out of business. The observer program did not work
well. The state declared that a scallop vessel is a
processor which required additional costs.
9:59:44 AM
MAKO HAGGERTY, HOMER, explained that he is a former
fisherman due to the type of program being proposed. He
urged the Committee to research the impact of fishery plans.
He stated opposition to the method the Committee is using
regarding this bill. He testified against the amendment.
Representative Thomas asked which fishery he was in. Mr.
Haggerty said halibut and black cod. Representative Thomas
agreed with the problems of fishermen, based on personal
experience.
10:02:35 AM
JOHN JONES, CHIKNICK LAGOON, asked for clarification about
the bill. Vice-Chair Stoltze related that the bill is
trying to extend an existing permit. Mr. Jones thought that
corporations should not be allowed to own a permit. He
testified against the amendment in SB 254.
SB 254 was heard and HELD in Committee for further
consideration.
SENATE BILL NO. 259
"An Act repealing certain provisions relating to
applications for medical assistance coverage; making
certain provisions of ch. 96, SLA 2006, retroactive;
providing for an effective date by repealing an
effective date section in ch. 96, SLA 2006; providing
for an effective date for certain sections of ch. 96,
SLA 2006; and providing for an effective date."
SB 259 was scheduled but not heard.
SENATE BILL NO. 202
"An Act relating to expenditures in aid of or to
implement the provisions of the federal Real ID Act."
SB 202 was scheduled but not heard.
ADJOURNMENT
The meeting was adjourned at 10:05 AM.
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