Legislature(2009 - 2010)BARNES 124
03/16/2010 10:15 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB365 | |
| HB389 | |
| HB246 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 365 | TELECONFERENCED | |
| *+ | HB 389 | TELECONFERENCED | |
| *+ | HB 246 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 16, 2010
10:19 a.m.
MEMBERS PRESENT
Representative Bryce Edgmon, Chair
Representative Wes Keller, Vice Chair
Representative Charisse Millett
Representative Cathy Engstrom Munoz
Representative Robert L. "Bob" Buch
Representative Scott Kawasaki
MEMBERS ABSENT
Representative Craig Johnson
COMMITTEE CALENDAR
HOUSE BILL NO. 365
"An Act relating to sharing records regarding fish purchased by
fish processors with certain federal agencies, to requirements
to obtain and maintain a fisheries business license, and to
payment of industry fees required of fish processors; and
providing for an effective date."
- MOVED HB 365 OUT OF COMMITTEE
HOUSE BILL NO. 389
"An Act relating to loans made to commercial fishermen under the
Commercial Fishing Loan Act for energy efficiency upgrades; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 246
"An Act relating to the licensing and regulation of sport
fishing operators and sport fishing guides and licensing and
registration of sport fishing vessels; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 365
SHORT TITLE: FISH PROCESSOR FEES, LICENSES, RECORDS
SPONSOR(s): REPRESENTATIVE(s) MILLETT
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) FSH, RES
03/09/10 (H) FSH AT 10:15 AM BARNES 124
03/09/10 (H) Heard & Held
03/09/10 (H) MINUTE(FSH)
03/16/10 (H) FSH AT 10:15 AM BARNES 124
BILL: HB 389
SHORT TITLE: COMMERCIAL FISHING LOAN ACT
SPONSOR(s): REPRESENTATIVE(s) SEATON
02/23/10 (H) READ THE FIRST TIME - REFERRALS
02/23/10 (H) FSH, RES
03/16/10 (H) FSH AT 10:15 AM BARNES 124
BILL: HB 246
SHORT TITLE: SPORT FISH GUIDE LICENSES
SPONSOR(s): REPRESENTATIVE(s) NEUMAN
04/19/09 (H) READ THE FIRST TIME - REFERRALS
04/19/09 (H) FSH, RES
03/16/10 (H) FSH AT 10:15 AM BARNES 124
WITNESS REGISTER
REPRESENTATIVE PAUL SEATON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 389 as the sponsor.
KATIE KOESTER, Staff
Representative Paul Seaton
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the committee substitute (CS) for
HB 389 on behalf of Representative Seaton, prime sponsor.
CATHY JEANS, Systems Branch Manager
Division of Investments
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 389.
GEOFF WHISTLER, Lending Section Manager
Division of Investments
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 389.
JAMES ELLIS, Staff
Representative Mark Neuman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 246 on behalf of
Representative Neuman, prime sponsor.
JENNIFER YUHAS, Director
Public Communications/Legislative Liaison
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Testified in favor of HB 246.
CHARLES SWANTON, Director
Division of Sport Fish
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Testified in favor of HB 246.
MELVIN GROVE, Charter Operator
Big Lake, Alaska
POSITION STATEMENT: Testified in opposition to HB 246.
KEN LARSON, Secretary
Prince William Sound Charter Boat Association
North Pole, Alaska
POSITION STATEMENT: Testified in opposition to HB 246.
ACTION NARRATIVE
10:19:34 AM
CHAIR BRYCE EDGMON called the House Special Committee on
Fisheries meeting to order at 10:19 a.m. Present at the call to
order were Representatives Edgmon, Buch, Keller, and Millett.
Representatives Munoz and Kawasaki arrived as the meeting was in
progress.
HB 365-FISH PROCESSOR FEES, LICENSES, RECORDS
10:19:46 AM
CHAIR EDGMON announced that the first order of business would be
HOUSE BILL NO. 365, "An Act relating to sharing records
regarding fish purchased by fish processors with certain federal
agencies, to requirements to obtain and maintain a fisheries
business license, and to payment of industry fees required of
fish processors; and providing for an effective date."
10:21:13 AM
CHAIR EDGMON reminded the committee that public testimony on HB
365 was closed.
10:21:35 AM
REPRESENTATIVE MILLETT stated HB 365 is a continuation of a
program enacted in 2002 to allow fishermen to buy back limited
entry permits. The program, established by fishermen, is
voluntary, and intends to provide access to federal dollars in
order to stabilize their fishery.
10:22:24 AM
REPRESENTATIVE KELLER moved to report HB 365, 26-LS1514\A, out
of committee with individual recommendations and the
accompanying fiscal notes.
There being no objection, HB 365 was reported from the House
Special Committee on Fisheries.
10:22:51 AM
The committee took an at-ease from 10:22 a.m. to 10:24 a.m.
10:24:42 AM
HB 389-COMMERCIAL FISHING LOAN ACT
10:25:11 AM
CHAIR EDGMON announced that the next order of business would be
HOUSE BILL NO. 389, "An Act relating to loans made to commercial
fishermen under the Commercial Fishing Loan Act for energy
efficiency upgrades; and providing for an effective date."
10:25:38 AM
REPRESENTATIVE PAUL SEATON, Alaska State Legislature, sponsor,
introduced HB 389 as a bill that addresses investments that
encourage Alaska's workforce and the utilization of Alaskan
products. It allows for a lower loan rate on loans through the
Division of Investment, Department of Commerce, Community, &
Economic Development (DCCED) if the borrower uses products that
are manufactured in Alaska. A manufacturer of refrigeration
units for fishing vessels proposed the bill in order to provide
an incentive for the purchase of Alaskan products.
10:27:01 AM
REPRESENTATIVE KELLER moved to adopt CSHB 389 as the working
document. Hearing no objection, CSHB 389 was before the
committee.
10:27:24 AM
KATIE KOESTER, Staff to Representative Paul Seaton, Alaska State
Legislature, further explained the bill, paraphrasing from a
prepared statement [original punctuation provided]:
HB 389 allows the Department of Commerce, Community, &
Economic Development to give Commercial Fishing Loan
Fund borrowers a reduction in the interest rate on
their loan of up to 2 percent if 50 percent of their
loan is spent on a product produced or manufactured in
the State of Alaska.
MS. KOESTER continued to explain that the loan programs eligible
for this rate reduction are the Product Quality Enhancement and
Engine Efficiency Replacement programs, and include products
such as refrigeration units, ice machines, slush bags, and more
fuel efficient engines. She pointed out the legislation defines
"manufactured or produced" as processing, developing, or making
an item into a new item with a distinct character and use. Ms.
Koester noted that labor is often 30 percent of the cost of a
project and said that the sponsor wanted to emphasize that the
loan is focused on the product, not the labor. Furthermore,
this is voluntary to the department, and DCCED may choose when
to make the program available, depending on the prime interest
rate.
MS. KOESTER pointed out minor changes made by the committee
substitute (CS) including the addition of the Product Quality
Enhancement program, and language that requires the department
to offer the rate reduction to all applicants.
10:30:41 AM
REPRESENTATIVE BUCH noted the committee packet does not contain
any comments on the bill.
10:31:00 AM
MS. KOESTER advised that Representative Seaton's office has not
received any objections to the program; if so, any written
objections would have been included in the committee packet.
10:31:02 AM
REPRESENTATIVE KELLER requested a list of products manufactured
in Alaska that would qualify for a loan. He pointed out that
energy efficient engines are not manufactured locally.
10:31:38 AM
REPRESENTATIVE SEATON stated that there are several
manufacturers of refrigeration units in Alaska, as well as
accessory refrigeration equipment and possibly ice machines.
Although there may not be engine manufacturers now, the purpose
of the bill is to encourage the production of engines, possibly
the newer, lighter-weight diesel engines, in Alaska. In
addition, as the energy efficiency money now available will spur
additional interest in local manufacturing of products such as
thermal pane windows, this type of legislation will provide an
incentive for investment in manufacturing in Alaska.
Representative Seaton further explained that this provision does
not affect the fishermen's loan fund, but only changes the
interest rate, and "will only be there when the Division of
Investments has interest loans that they can absorb this without
losing money on that loan for the services."
10:34:55 AM
REPRESENTATIVE KELLER gave an example of a loan application for
an upgrade to a boat, and asked whether the loan amount would
only be for equipment, or if labor would be included.
REPRESENTATIVE SEATON responded that at least 50 percent of the
loan proceeds used by the borrower must be for product quality
improvements. In fact, the manufactured equipment installed
must be 50 percent of the loan, not including labor, but the
total amount of the loan can include labor. He advised that the
Department of Commerce, Community, & Economic Development
(DCCED), Division of Investments, provided guidance on this
aspect of the legislation.
10:36:51 AM
REPRESENTATIVE KELLER asked for clarification regarding the
possibility of obtaining a loan for a labor-intensive project.
10:37:44 AM
REPRESENTATIVE SEATON deferred the question to a representative
from DCCED.
10:38:11 AM
REPRESENTATIVE MILLETT, reflecting on her experience as a fisher
from Bristol Bay, offered her support for the bill, especially
as it will provide for quality-of-fish upgrades for boats. She
reminded the committee that each fishery is trying to improve
the quality of its fish by adding refrigeration or slush bags,
and this is a valuable program for exported products.
10:39:20 AM
REPRESENTATIVE KAWASAKI asked for a description of a slush bag.
REPRESENTATIVE SEATON described how a slush bag is installed in
each section of the hold of a boat, and how it works to reduce
the need for ice while improving the quality of fish products.
10:40:33 AM
REPRESENTATIVE KAWASAKI referred to the definition of
"manufactured or produced," and asked whether the construction
of a kit purchased elsewhere would qualify as a product made in
Alaska.
REPRESENTATIVE SEATON advised that the construction of a
refrigeration system from materials would quality; however, the
installation of a product would not.
10:42:04 AM
REPRESENTATIVE KAWASAKI restated his question.
REPRESENTATIVE SEATON recommended clarification from the
Division of Investments on this issue.
10:42:34 AM
CHAIR EDGMON referred to page 1, line 14, of the bill, and
suggested the addition of "in Alaska" after "new item."
10:42:58 AM
CHAIR SEATON pointed out that on page 1, line 10, the language
of the bill specifies "products manufactured or produced in the
state," and he expressed his belief that is sufficient.
10:44:00 AM
CATHY JEANS, Systems Branch Manager, Division of Investments,
Department of Commerce, Community, & Economic Development,
informed the committee that the Division of Investments is the
agency that administers several state loan programs, including
the commercial fishing revolving loan fund amended by this
legislation. She advised that the bill allows the agency to
reduce the interest rate if a borrower purchases an item
manufactured or produced in Alaska. Ms. Jeans called attention
to the zero fiscal note submitted with the bill.
10:44:56 AM
GEOFF WHISTLER, Lending Section Manager, Division of
Investments, Department of Commerce, Community, & Economic
Development, provided the example of an Alaska company that
ships in an engine and then adds a power generator. In that
case, he advised that the borrower should look at the value
added, and the cost of the addition, to measure the percentage
of the manufacture of the product in the state.
CHAIR EDGMON observed that is the interesting part of the bill.
In fact, the agency would need to determine regulations to carry
out the statute. He asked whether the language in the bill is
sufficient for the successful development of regulations.
10:46:27 AM
MS. JEANS advised her agency may need to confer with the
Department of Law (DOL).
10:46:57 AM
CHAIR EDGMON mentioned proposed legislation on an energy
efficiency loan program and asked whether the two bills
"overlap."
MS. JEANS said no, the bills will not jeopardize one another.
10:47:38 AM
REPRESENTATIVE BUCH observed that installation labor costs can
amount to a large portion of the total cost of a project. He
asked how labor costs are handled through the loans.
10:48:36 AM
MR. WHISTLER agreed that installation, modification, and
fabrication can amount to 30-40 percent of costs. He advised
that HB 389 "would deal with just the equipment going in,
manufactured in the state for product quality improvement, it
would still qualify for the whole ... two points under prime
loan program. Those labor costs are inclusive."
10:49:19 AM
REPRESENTATIVE BUCH asked whether the cost of labor will be
separated in the application process.
10:49:50 AM
MR. WHISTLER stated the loan request asks for the total dollar
amount but, with the application, "quotes" are submitted that
break down each item.
REPRESENTATIVE KELLER expressed his belief that the intent of
the bill is to provide an incentive to purchase products made in
Alaska, and he questioned whether the language in the bill was
sufficiently specific to fulfill the intent of the sponsor.
10:51:05 AM
CHAIR EDGMON stated that the bill would be held pending
responses to the questions posed, and for public testimony.
10:52:04 AM
HB 246-SPORT FISH GUIDE LICENSES
10:52:07 AM
CHAIR EDGMON announced that the final order of business would be
HOUSE BILL NO. 246, "An Act relating to the licensing and
regulation of sport fishing operators and sport fishing guides
and licensing and registration of sport fishing vessels; and
providing for an effective date."
10:52:22 AM
JAMES ELLIS, staff to Representative Mark Neuman, Alaska State
Legislature, informed the committee Representative Newman has
offered an amendment to the bill; however, as the sponsor,
Representative Neuman has requested that the committee address
only the bill at this time so that the amendment can be
considered by the next committee of referral. Mr. Ellis
introduced the bill paraphrasing from the sponsor statement,
which read as follows:
HB 246 extends Alaska's sport fish guide licensing and
reporting program for one year. The data collected
through this program has been an important tool for
the proper management of sport fisheries through a
better understanding of our fish stocks and their
harvest. In addition, the licensing has ensured a
standard for professionalism and responsibility for
sport fish businesses and guides, benefiting both
consumer and businesses alike.
The data collected through the reporting program is
important in Alaska's exemption from the National
Saltwater Angler Registry which will prevent Alaskans
from purchasing a certificate of registration.
10:54:53 AM
REPRESENTATIVE BUCH pointed out HB 246 may become a companion
bill to SB 294 and asked for an explanation.
MR. ELLIS expressed his understanding that SB 294 is intended to
be "a repeal also."
10:55:53 AM
JENNIFER YUHAS, Director, Public Communications/Legislative
Liaison, Alaska Department of Fish & Game (ADF&G), informed the
committee that HB 246 is the priority legislation for ADF&G this
session. She recalled that similar legislation was passed by
the committee last year without the one-year sunset clause. In
fact, the sunset was added by amendment in the House Resources
Standing Committee. Ms. Yuhas reiterated the purposes of the
bill, and added that the bill will ensure basic standards for
sport fishing guides for the benefit of the public. She pointed
out the department has attached a zero fiscal note indicating
that ADF&G subsidizes the costs associated with this
legislation.
10:57:22 AM
CHARLES SWANTON, Director, Division of Sport Fish, Alaska
Department of Fish & Game (ADF&G), explained the department
supported the original legislation that was passed in 2004, and
effective in 2005, enacting three main elements: collecting
information on guides and their activities; establishing minimum
standards, such as safety and liability insurance, for these
business activities; providing a comprehensive and credible data
base on guided sport fishing activities for regulatory agencies
such as the Alaska Board of Fisheries, the International Pacific
Halibut Commission, and the North Pacific Fishery Management
Council. Mr. Stanton pointed out that fees are charged as
follows: $100 for a combination business owner/operator; $100
for a business; $50 for a guide. He explained that the Division
of Sport Fish has three primary harvest and data collection
programs: the statewide harvest survey provides a comprehensive
catch harvest level for various fisheries; surveys of anglers in
intensive fisheries; guide licensing and logbooks. At the
request of ADF&G Commissioner Lloyd, the programs are being
modernized so that logbook data and the purchase of licenses can
be recorded electronically, and he described the possibilities
thereof.
11:02:30 AM
REPRESENTATIVE MUNOZ asked how the charter industry feels about
the fee structure.
11:02:50 AM
MR. SWANTON restated the fee structure. Currently, income from
license fees is about $242,000, and the program costs about
$437,000 to administer. The difference of $195,000 is offset by
sport angler license fees.
REPRESENTATIVE MUNOZ remembered there was discussion about
raising the fees.
11:04:04 AM
MR. SWANTON indicated that the fees have not changed. In
response to Representative Buch, he said that electronic forms
will accelerate the process to the point where his division may
be able to provide fish harvest data within one to two weeks of
harvest, rather than eight months.
11:05:04 AM
REPRESENTATIVE BUCH surmised the passage of this legislation
means the program will take effect this summer.
MR. SWANTON stated the intention is to institute the scan-able
logbook sheets for saltwater in 2010, followed by logbook sheets
for freshwater in 2011.
11:05:55 AM
CHAIR EDGMON opened public testimony.
11:06:10 AM
MELVIN GROVE, Charter Operator, informed the committee he
operates a charter boat in Valdez, is affiliated with the Prince
William Sound Charter Boat Association, and is testifying on his
own behalf. Mr. Grove stated his adamant opposition to HB 246.
Although he is not against data collection, he is opposed to the
cost of the license. He opined that the program was "instituted
as a license with a disguise of paying for the data collection
under the license requirement." In 2004, the logbook program
cost $80,000, and now the cost is nearly $450,000. Furthermore,
the sensors and surveys for data collection are paid for by the
fishing license revenue from his clients and, as an operator, he
is charged a fee to support the logbook program; this appears to
be "double-dipping" by the department. Mr. Grove expressed his
hope that electronic improvements to the reporting program may
lead to a reduction in fees. Finally, he questioned the benefit
of data collection to the charter operators; in fact, there has
not been an increase in the allotment of fish and the release of
data to federal authorities has been detrimental to the charter
operators. Mr. Grove restated his opposition to the bill;
however, should the bill pass, he encouraged the committee to
retain the 2012 sunset clause.
11:11:05 AM
REPRESENTATIVE MUNOZ inquired as to the federal requirements
with which charter operators must comply.
11:11:13 AM
MR. GROVE said a federal limited entry program is being
instituted in 2011, requiring a permit to fish for halibut. He
predicted 38 percent of the halibut charter operators will be
put out of business because of the limited entry program.
REPRESENTATIVE MUNOZ asked whether there is a compensation
component.
MR. GROVE said no.
11:12:30 AM
KEN LARSON, Secretary, Prince William Sound Charter Boat
Association, stated that the members of his organization and
sister organizations want the record to reflect their opposition
to HB 246. While recognizing the need for the guide and logbook
program, the program should not be funded as it is.
Additionally, many members support the termination or sunset
clause of the guide license fees. He recommended that ADF&G
"look for other funding sources, like sport fish licenses, or
other internal funds, because ... the economy has definitely
tanked; ... things like the one-fish limit down in Southeast,
the limited entry program which will put 38 percent of the
charter, halibut charter operators out of business in 2011, and
... the program has only generated about 55 percent of the
operating expense." Mr. Larson referred to the fiscal note and
pointed out that the program received no federal funds from the
National Oceanic and Atmospheric Administration (NOAA) to pay
for the logbook data from which it benefits. Charter boat
operators pay $100 for the annual state business license and
also buy individual sport fishing licenses; in fact, the
national registry only costs $25 per angler. As NOAA is
handling the halibut limited entry permit program, Mr. Larson
said he expects there will charges similar to those assessed to
commercial fisherman. He stressed the inequity of requiring
charter operators to purchase a state business license, a guide
license, and a sport fishing license, when commercial fishermen
are not required to do the same. Mr. Larson encouraged the
committee to allow the legislation to "sunset."
11:15:59 AM
CHAIR EDGMON closed public testimony, and announced that HB 246
would be held.
11:16:47 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:16
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 365-SE Revitalization Assn Ltr.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 365 |
| HB 389--Commercial Fishing Loan Fund Home Page.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 389 |
| HB 389--Committee Substitute LS1441 P 3.1.10.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 389 |
| HB 389--DCCED statistics for loan servicing.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 389 |
| HB 389--Sponsor Statement.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 389 |
| HB 389--CED-INV-3-12-10 Fiscal Note.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 389 |
| HB 246--Sponsor Statement.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 246 |
| HB 246--DFG-SFD-03-10-10 Fiscal Note.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 246 |
| HB 246--LICENSING BRIEF.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 246 |
| HB 246--Amendment 3 15 2010 H FISH.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 246 |
| HB 246--Amendment Rationale 3 15 2010 H FISH.pdf |
HFSH 3/16/2010 10:15:00 AM |
HB 246 |