Legislature(1993 - 1994)
02/17/1993 09:00 PM FSH
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES February 17, 1993 9:00 a.m. MEMBERS PRESENT Representative Carl E. Moses, Chairman Representative Harley Olberg, Vice Chairman Representative Gail Phillips Representative Irene Nicholia Representative Cliff Davidson MEMBERS ABSENT None COMMITTEE CALENDAR *HB 133: "An Act amending the definition of `value' for purposes of administration of fisheries taxes; and providing for an effective date." MOVED OUT OF COMMITTEE WITH A DO PASS RECOMMENDATION *HB 134: "An Act relating to temporary transfers of commercial fisheries entry permits." HELD IN COMMITTEE FOR FURTHER CONSIDERATION (* first public hearing) WITNESS REGISTER Paul Dick, Juneau Operations Income and Excise Audit Division Department of Revenue P.O. Box 110420 Juneau, AK 99811-0420 Phone: 465-2320 POSITION STATEMENT: Stated HB 133 clarified the value of fisheries that was the basis for calculating fish tax and salmon enhancement tax. Ray Gillespie Lobbyist, City of Unalaska Gillespie & Associates 9478 Riverbend Court Juneau, AK 99801 Phone: 463-3375 POSITION STATEMENT: Supported HB 133 Richard F. Listowski, Commissioner Commercial Fisheries Entry Commission Alaska Department of Fish and Game 8800-109 Glacier Highway Juneau, AK 99801 Phone: 789-6160 POSITION STATEMENT: Stated HB 134 allowed permit holders 65 years old or more to lease their permits. PREVIOUS ACTION BILL: HB 133 SHORT TITLE: DEFINITION OF VALUE FOR FISHERIES TAX BILL VERSION: SPONSOR(S): SPECIAL COMMITTEE ON FISHERIES TITLE: "An Act amending the definition of `value' for purposes of administration of fisheries taxes; and providing for an effective date." JRN-DATE JRN-PG ACTION 02/05/93 236 (H) READ THE FIRST TIME/REFERRAL(S) 02/05/93 236 (H) FISHERIES, RESOURCES, FINANCE 02/17/93 (H) FSH AT 09:00 AM CAPITOL 17 02/17/93 360 (H) FSH RPT 4DP 02/17/93 360 (H) DP: MOSES, PHILLIPS, NICHOLIA, OLBERG 02/17/93 360 (H) -REVENUE FISCAL NOTE (REV) 2/17/93 BILL: HB 134 SHORT TITLE: TEMP TRANSFER OF ENTRY PERMITS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MOSES TITLE: "An Act relating to temporary transfers of commercial fisheries entry permits." JRN-DATE JRN-PG ACTION 02/05/93 236 (H) READ THE FIRST TIME/REFERRAL(S) 02/05/93 236 (H) FISHERIES, RESOURCES, JUDICIARY, FINANCE 02/17/93 (H) FSH AT 09:00 AM CAPITOL 17 ACTION NARRATIVE TAPE 93-5, SIDE A Number 000 HB 133: DEFINITION OF VALUE FOR FISHERIES TAX CHAIRMAN CARL MOSES called the meeting to order at 9:34 a.m. He noted all members in attendance and asked that discussion start with HB 133 and then move on to HB 134. PAUL DICK, JUNEAU OPERATIONS, INCOME AND EXCISE AUDIT DIVISION, DEPARTMENT OF REVENUE, stated that HB 133 clarified the value of fisheries that was the basis for calculating fish tax and salmon enhancement tax. This was a carryover from 1992's HB 8. RAY GILLESPIE, LOBBYIST, CITY OF UNALASKA, stated the four regional aquaculture associations unanimously supported HB 133. REPRESENTATIVE GAIL PHILLIPS advised that she sponsored the bill last year (HB 8), which was basically an attempt to close up loopholes in the taxing of the fish tax. The House passed HB 8 and it made it to the Senate, but time limitations made it die on the floor, she noted. REPRESENTATIVE IRENE NICHOLIA MOTIONED to move HB 133 out of committee, with the fiscal note. REPRESENTATIVE HARLEY OLBERG SECONDED the motion. HB 133 MOVED out of committee with a do pass recommendation. HB 134: TEMP TRANSFER OF ENTRY PERMITS RICHARD LISTOWSKI, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISSION (CFEC), said HB 134 allowed people 65 years of age and older to lease their limited entry permits through an emergency transfer. The only transfer now available was if, for example, a permit holder broke a leg two days before a fishing period, he could then get an emergency transfer. The CFEC was in a strong anti-lease position due to a bill passed by the legislature in 1973, he noted, adding that the CFEC wanted to see the owners of the permits doing the fishing. MR. LISTOWSKI saw a problem in that older owners would lease their permits to highly successful commercial fishermen, to get more income, instead of to local fishermen who desperately needed the work. He would like to see the older folks actually sell their permits if they were not using them. REPRESENTATIVE CLIFF DAVIDSON asked if passage of HB 134 classified the permits as real property. MR. LISTOWSKI advised that although he was not an attorney, HB 134 leaned toward supporting the Internal Revenue Service's claim that the permits were property, and not privileges. Further, he said that permit holders 65 years or older might lease to highly successful, experienced, commercial fishermen who could make more money instead of leasing to younger, beginner fishermen in the village. He then advised that the state had a loan program to help young, uncollateralized fishermen purchase lease permits. ADJOURNMENT CHAIRMAN MOSES asked members and the public if there were further comments. Hearing none, he adjourned the meeting at 9:55 a.m.