Legislature(2013 - 2014)CAPITOL 120
04/11/2013 10:00 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB156 | |
| SB54 | |
| HB192 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 156 | TELECONFERENCED | |
| + | SB 54 | TELECONFERENCED | |
| *+ | HB 192 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
April 11, 2013
10:03 a.m.
MEMBERS PRESENT
Representative Paul Seaton, Chair
Representative Eric Feige
Representative Lynn Gattis
Representative Jonathan Kreiss-Tomkins
MEMBERS ABSENT
Representative Bob Herron
Representative Craig Johnson
Representative Kurt Olson
OTHER MEMBERS PRESENT
Senator Anna Fairclough
COMMITTEE CALENDAR
HOUSE BILL NO. 156
"An Act extending the termination date of the authority of the
Commercial Fisheries Entry Commission to maintain a vessel-based
limited entry fisheries system for the weathervane scallop and
Bering Sea hair crab fisheries; and providing for an effective
date by amending the effective date under sec. 28, ch. 137, SLA
2002."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 54(RES)
"An Act extending the termination date of the authority of the
Commercial Fisheries Entry Commission to maintain a vessel-based
limited entry fisheries system for the weathervane scallop and
Bering Sea hair crab fisheries; and providing for an effective
date by amending the effective date under sec. 28, ch. 137, SLA
2002."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 192(FSH)
"An Act relating to the fishery resource landing tax; and
providing for an effective date."
- MOVED CSHB 192(FSH) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 156
SHORT TITLE: EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY
SPONSOR(s): REPRESENTATIVE(s) HERRON
03/04/13 (H) READ THE FIRST TIME - REFERRALS
03/04/13 (H) FSH, RES
04/11/13 (H) FSH AT 10:00 AM CAPITOL 120
BILL: SB 54
SHORT TITLE: EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY
SPONSOR(s): RESOURCES
02/13/13 (S) READ THE FIRST TIME - REFERRALS
02/13/13 (S) RES
03/04/13 (S) RES AT 3:30 PM BUTROVICH 205
03/04/13 (S) Heard & Held
03/04/13 (S) MINUTE(RES)
03/11/13 (S) RES AT 3:30 PM BUTROVICH 205
03/11/13 (S) Moved CSSB 54(RES) Out of Committee
03/11/13 (S) MINUTE(RES)
03/13/13 (S) RES RPT CS 2DP 3NR SAME TITLE
03/13/13 (S) DP: GIESSEL, MCGUIRE
03/13/13 (S) NR: MICCICHE, BISHOP, DYSON
03/18/13 (S) TRANSMITTED TO (H)
03/18/13 (S) VERSION: CSSB 54(RES)
03/20/13 (H) READ THE FIRST TIME - REFERRALS
03/20/13 (H) FSH, RES
04/11/13 (H) FSH AT 10:00 AM CAPITOL 120
BILL: HB 192
SHORT TITLE: PAYMENT OF FISHERY RESOURCE LANDING TAX
SPONSOR(s): MILLETT
03/29/13 (H) READ THE FIRST TIME - REFERRALS
03/29/13 (H) FSH, FIN
04/11/13 (H) FSH AT 10:00 AM CAPITOL 120
WITNESS REGISTER
KATE WOLGEMUTH, Staff
Representative Bob Herron
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 156, on behalf of
Representative Herron, sponsor.
SHARON LONG, Staff
Senator Cathy Geisel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented CSSB 54, by request of the Senate
Resources Committee, which Senator Geisel chairs.
CHARISSE MILLETT
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 192, as prime sponsor.
TIM COTTONGIM, Fish Group Manager
Juneau Office
Tax Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Responded to questions, during the hearing
on HB 192.
JULIANNE CURRY, Executive Director
United Fishermen of Alaska (UFA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 192.
KATHY HANSEN, Executive Director
Southeast Alaska Fishermen's Alliance
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 192.
ACTION NARRATIVE
10:03:48 AM
CHAIR PAUL SEATON called the House Special Committee on
Fisheries meeting to order at 10:03 a.m. Present at the call to
order were Representatives Seaton, Feige, Kreiss-Tomkins, and
Gattis.
HB 156-EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY
10:04:25 AM
CHAIR SEATON announced that the first order of business would be
HOUSE BILL NO. 156, "An Act extending the termination date of
the authority of the Commercial Fisheries Entry Commission to
maintain a vessel-based limited entry fisheries system for the
weathervane scallop and Bering Sea hair crab fisheries; and
providing for an effective date by amending the effective date
under sec. 28, ch. 137, SLA 2002."
10:05:09 AM
KATE WOLGEMUTH, Staff, Representative Bob Herron, Alaska State
Legislature, presented HB 156, paraphrasing from a prepared
statement, which read as follows [original punctuation
provided]:
House Bill 156 extends the "sunset" date of the
vessel-based limited entry programs for the
weathervane scallops and the Bering Sea hair crab
fisheries from December 30, 2013 to December 30, 2023.
Although, it is recognized that there are two
fisheries affected here, I will be mostly speaking to
the Bering Sea hair crab fishery, as:
It is being brought forth as requested by a CDQ in the
Bering Sea Region who has interest in two hair crab
permits.
Vessel-based limited entry permits are not widespread
in the state of Alaska.
Limited entry into the vast majority of commercial
fisheries has been implemented with a skipper-based
system that awards permits to individual fisherman
based on their prior history of participation in and
economic dependence on each specific fishery.
Created by the Alaska State Legislature about a decade
ago, vessel-based limited entry is a very narrow
exception to the individual-based system.
In 2002, the Legislature amended that Limited Entry
Act to allow vessel-based limited entry permits to be
given to vessels (instead of individuals) with a
history of fishing for weathervane scallops and Bering
Sea hair crab in state waters.
These permits were issued as a result of an
adjudicative process that considered past fishing
history and other criteria that provide a rational
basis for the issuance of those permits. This process
complied with the constitutional mandate limiting the
establishment of exclusive rights of fishery.
That said, conservation concerns have not allowed for
any commercial openings for the Bering Sea hair crab
fishery in the last decade.
Although, keep in mind that these permits are still
held by vessels that are ready and able to harvest
hair crab if and when fisheries managers decide that
circumstances allow this fishery to open.
Bering Sea hair crab are of significant economic
interest for the Bering Sea Region, as there already
exist successful opilio and king crab fisheries that
provide job opportunities for residents of said
region.
It is expected that when the hair crab fishery is
reopened, those same great opportunities will be
available in the Bering Sea region for those aboard
hair crab vessels.
Extending the sunset date for the vessel-based limited
entry programs within the Limited Entry Act will serve
the Bering Sea region well, as it allows for a
potential future opening of the hair crab fishery.
10:08:00 AM
REPRESENTATIVE GATTIS asked how the fishery was handled prior to
the limited entry approach.
MS. WOLGEMUTH responded that the fisheries were open access
prior to moratoria being imposed and the vessel based limited
entry scheme implemented.
10:08:41 AM
CHAIR SEATON asked what has occurred for the vessels during the
ten year moratoria; have any left the fisheries.
MS. WOLGEMUTH offered to provide the information to the
committee.
CHAIR SEATON announced that the bill would be held.
SB 54-EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY
10:09:37 AM
CHAIR SEATON announced that the next order of business would be
CS FOR SENATE BILL NO. 54(RES), "An Act extending the
termination date of the authority of the Commercial Fisheries
Entry Commission to maintain a vessel-based limited entry
fisheries system for the weathervane scallop and Bering Sea hair
crab fisheries; and providing for an effective date by amending
the effective date under sec. 28, ch. 137, SLA 2002."
10:09:47 AM
SHARON LONG, Staff, Senator Cathy Geisel, Alaska State
Legislature, presented SB 54, paraphrasing from a prepared
statement, which read as follows [original punctuation
provided]:
Senate Bill 54 was introduced by the Senate Resources
Committee at the request of the Alaska Commercial
Fisheries Entry Commission. It is a bill which - if
enacted - simply, will prolong for five years the
decade-old vessel-based limited entry system for two
discrete fisheries, Alaska weathervane scallops and
Bering Sea hair crab. The bill was heard twice and
passed out of the Senate Resources Committee, which
heard testimony both in favor of and in opposition to
it. Those in favor of the bill include CFEC, the
State agency that adjudicated and issued all the
limited entry permits that now exist, and many
fishermen who participate in the fishery and who spoke
of the direct economic harm they would suffer if their
fishery were to "sunset" and cease to exist at the end
of this year. There was less testimony in opposition
to the bill, than in favor.
SB 54 passed the full Senate with 18 votes in favor
and a single vote in opposition. As the Senate
Resources Committee aide I promptly, on the 21st of
March, submitted a request for a hearing before this
panel. We heard, just day before yesterday, of this
opportunity for the bill to be heard. With just four
days left in this session of the 28th Legislature, if
neither this bill nor Representative Herron's
companion bill move out of this committee today, they
will not be able to pass the Legislature this session.
With a looming sunset date at the end of this year -
before next year's session begins - that would mean
the end of these limited entry fisheries.
As SB 54 was introduced at the request of CFEC, I'll
defer any questions you may have, Mr. Chairman, or any
that the Fisheries members may have, to Ben Brown, who
serves on the Entry Commission. He can address the
history of vessel-based limited entry, the
constitutional and statutory legality of the program,
and why it is good and sound public policy for the
House to pass SB 54 without delay.
10:12:09 AM
CHAIR SEATON noted that the limited entry commission has
provided a seven page document in the committee packet for
background information, and pointed out other notable supporting
documents provided to the committee.
CHAIR SEATON announced that SB 54 would be held over.
HB 192-PAYMENT OF FISHERY RESOURCE LANDING TAX
10:14:58 AM
CHAIR SEATON announced that the final order of business would be
HOUSE BILL NO. 192, "An Act relating to the filing date for the
final quarterly payment of, and to the assessment of penalties
under, the fishery resource landing tax."
10:15:11 AM
CHARISSE MILLETT, Alaska State Legislature, introduced HB 192
and explained the intent behind the legislation, paraphrasing
from the sponsor statement, which read as follows [original
punctuation provided]:
Currently, commercial fishermen are required to submit
the resource landing tax by April 1st. The difficulty
with this fixed date is that Department of Fish and
Game does not always have the statewide average fish
report by that time. Though the Department of Revenue
does grant an automatic extension to file the landing
tax return if the report has not been submitted within
30 days of the due date, there are no extensions for
payment time. This results in penalties and interest
to occur. For example, the 2011 list was not published
until May 29, 2012. This results in in the
accumulation of unfair penalties and interest to
commercial fishermen. Commercial fishermen are also
required to make equal quarterly payments. This means
that in some instances, the current statute would
require payment of 50% of the landing taxes before
even leaving port.
House Bill 192 makes necessary changes to the resource
landing tax statutes. The first section aligns the
due date for the resource landing tax with the date
that the statewide average fish report is released.
This is a long overdue remedy. The State of Alaska
should not punish our fishing industry for the delay
of information they have no control over.
The second section of House Bill 192 still maintains
that 100% of the previous year's tax liability or at
least 90% of the estimated amount is owed. However,
the requirement to make equal quarterly payments is
deleted. Instead, the commercial fisherman is allowed
to pay their quarterly tax based on their production
and estimated price for that specific quarter. It
only makes sense that a way of life as volatile as
that of our commercial fishermen should have a tax
structure that reflects those realities. House Bill
192 provides a tax regime that is equitable and fair.
REPRESENTATIVE MILLETT reminded the committee of the volatile
financial experience that is inherent to the fishing business.
10:19:23 AM
CHAIR SEATON clarified that the bill relates to the business of
fishing more than to the actual commercial fishing activity. He
noted that an effective date is not stipulated, and asked
whether a 90 day effective date, following bill passage, would
be appropriate.
REPRESENTATIVE MILLETT indicated that the Alaska Department of
Fish & Game (ADF&G) would stipulate a date via regulation.
REPRESENTATIVE FEIGE opined that an effective date would not be
necessary to include in the bill.
10:22:29 AM
TIM COTTONGIM, Fish Group Manager, Juneau Office, Tax Division,
Department of Revenue (DOR), responding to the effective date
question said a January 1 effective date would align with the
tax year.
10:23:49 AM
REPRESENTATIVE FEIGE moved to adopt the proposed committee
substitute (CS) for HB 192, Version 28-LS0725\U, Bullard,
4/10/13. Without objection, Version U was before the committee.
10:24:14 AM
MR. COTTONGIM pointed out that the CS allows businesses that are
subject to a landing tax to elect of which of the three
installment payment methods is preferable. The decision is due
by March 31 of each year. He pointed out that the provision
could not be honored in 2013 and said this default further
supports a January effective date.
CHAIR SEATON characterized the proposed legislation as a
housekeeping bill, and asked if the system of tax collection
will be better served by passage of HB 192.
MR. COTTONGIM opined that the bill will serve the industry and
the optional pay period should prove helpful.
10:26:54 AM
REPRESENTATIVE FEIGE noted that the bill may not pass this
session, and asked if the effective date could be retroactive to
January 2014, if passed in the 2014 legislative session.
10:27:58 AM
MR. COTTONGIM explained how tax reporting works on a quarterly
basis, and said it would be possible for bill language to
effectively stipulate a retroactive payment.
10:28:40 AM
JULIANNE CURRY, Executive Director, United Fishermen of Alaska
(UFA), stated unqualified support for HB 192.
10:29:11 AM
KATHY HANSEN, Executive Director, Southeast Alaska Fishermen's
Alliance, stated unqualified support for HB 192.
CHAIR SEATON closed public testimony.
10:29:52 AM
CHAIR SEATON offered Conceptual Amendment 1 to add an effective
date of January 1, 2014. Without objection Conceptual Amendment
1 was adopted.
10:30:26 AM
REPRESENTATIVE GATTIS opined that the bill is necessary and
urged committee support.
10:30:54 AM
REPRESENTATIVE FEIGE moved to report the CS for HB 192, Version
28-LS0725\U, Bullard, 4/10/13, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
Without objection, CSHB 192(FSH), was reported from the House
Special Committee on Fisheries.
CHAIR SEATON thanked the committee members and participants.
10:31:10 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 10:31
a.m.