Legislature(2017 - 2018)GRUENBERG 120

01/25/2018 11:00 AM FISHERIES

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Audio Topic
11:08:11 AM Start
11:09:33 AM HB188
12:00:48 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 188 COMM. FISH. ENTRY PERMITS; LOANS; TRUSTS TELECONFERENCED
Heard & Held
Introduction of Committee Substitute
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                        January 25, 2018                                                                                        
                           11:08 a.m.                                                                                           
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
11:08:11 AM                                                                                                                   
                                                                                                                                
CHAIR LOUISE STUTES called the House Special Committee on                                                                     
Fisheries meeting to order at 11:08 a.m.                                                                                        
                                                                                                                                
                                                                                                                                
11:09:33 AMCHAIR STUTES bring cs                                                                                              
                                                                                                                                
REPRESENTATIVE CHENAULT                                                                                                         
intro document                                                                                                                  
                                                                                                                                
CHAIR STUTES                                                                                                                    
note that fiscal notes are not avaialble                                                                                        
                                                                                                                                
11:10:54 AM                                                                                                                   
                                                                                                                                
11:11:01 AM testimony from Kriess Thomkins                                                                                    
                                                                                                                                
help new and young fishermen                                                                                                    
a lot of work with stake holders                                                                                                
                                                                                                                                
11:12:21 AM witness: Reed Meekins                                                                                             
11:13:50 AM powerpoint pres                                                                                                   
bill does not create trusts automatically                                                                                       
Magans                                                                                                                          
Most important change is...                                                                                                     
P                                                                                                                               
                                                                                                                                
Third. Limited operation                                                                                                        
                                                                                                                                
Bristol Bay, Kodiak, ...no more without legislative action                                                                      
                                                                                                                                
Last, a trust is ....                                                                                                           
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
....idea is to have a limited start. Make changes as needed.                                                                    
Only three trusts.  start snak                                                                                                  
                                                                                                                                
11:16:35 AMREPRESENTATIVE NEUMAN                                                                                              
different permits                                                                                                               
do you see the permits as transferrable?                                                                                        
                                                                                                                                
                                                                                                                                
11:17:16 AMreed Magans                                                                                                        
...take Bristol Bay, the only trust would be the Bristol Bay                                                                    
trust. not transfer                                                                                                             
                                                                                                                                
REPRESENTATIVE NEUMAN                                                                                                           
i guess anwer is no                                                                                                             
                                                                                                                                
11:18:13 AM                                                                                                                   
magans.                                                                                                                         
fisheries are the primary if not only economic driver                                                                           
well documented that access to comm fisheries has decreased.                                                                    
                                                                                                                                
Last, fisheries are becoming capital intensive. Hard to get loan                                                                
these days.                                                                                                                     
                                                                                                                                
11:20:21 AM same speakerfinal slide                                                                                           
Definitive no. Trusts would interfere with emergency transfer.                                                                  
                                                                                                                                
11:21:14 AMREPRESENTATIVE KREISS-TOMKINS (giving testimony)                                                                   
a tool that allows you to work.                                                                                                 
Tool and nothing more                                                                                                           
                                                                                                                                
11:23:50 AM Magans .....reading last line.                                                                                    
                                                                                                                                
there is a hard cap...absolute max                                                                                              
                                                                                                                                
can be revoked? yes                                                                                                             
                                                                                                                                
If failed to make payments....can be revoked.                                                                                   
                                                                                                                                
11:24:53 AMREPRESENTATIVE NEUMAN                                                                                              
Commish should have some type of authority                                                                                      
                                                                                                                                
11:25:46 AM Reed M.                                                                                                           
would note that a temp transfee...also                                                                                          
                                                                                                                                
11:26:14 AMCHAIR STUTES                                                                                                       
on that note....                                                                                                                
                                                                                                                                
11:26:24 AMReed M.                                                                                                            
...does not have the powere                                                                                                     
                                                                                                                                
CHAIR STUTES....acording to you. If have opportunity...if called                                                                
up for                                                                                                                          
                                                                                                                                
Reed M.                                                                                                                         
....that person could emergency transfer..                                                                                      
                                                                                                                                
REPRESENTATIVE NEUMAN                                                                                                           
likes that point...                                                                                                             
                                                                                                                                
Reed M.                                                                                                                         
other big change is the constitutionality...only transfer to Ak                                                                 
residents.                                                                                                                      
decided to go most conservative legal route.                                                                                    
                                                                                                                                
CHAIR STUTES                                                                                                                    
who is eligible for these permits.  need to experience. Someone                                                                 
from say themi                                                                                                                  
                                                                                                                                
Reed M.                                                                                                                         
Section ...describes the eligibility.                                                                                           
Tayht would speak to your example.                                                                                              
                                                                                                                                
CHAIR STUTES                                                                                                                    
so only have to be an able bodied human being                                                                                   
                                                                                                                                
Reed M.                                                                                                                         
can't say he knows exactly                                                                                                      
                                                                                                                                
CHAIR STUTES                                                                                                                    
but as currently written...anyone is eligible                                                                                   
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
that is correct, but need to ....                                                                                               
...not in a persons best interest                                                                                               
                                                                                                                                
11:32:21 AMCHAIR STUTES                                                                                                       
                                                                                                                                
                                                                                                                                
REPRESENTATIVE CHENAULT                                                                                                         
my concern...when you talk to 2.5% as a cap                                                                                     
                                                                                                                                
Realize that trust is...                                                                                                        
There are people concerned about money                                                                                          
Are there any disadvantage to setting this up for non Alaskans.                                                                 
Not sure if this a question or a statement.                                                                                     
Similar problem in Cook Inlet                                                                                                   
                                                                                                                                
11:35:02 AMReed M.                                                                                                            
                                                                                                                                
Legal provisions prohibit...can't based on residency.                                                                           
                                                                                                                                
What we did...Bid preference in the bill                                                                                        
Page 24...criteria that other states have used...                                                                               
It allow the trust to...grant permits to people....                                                                             
..prioritize                                                                                                                    
                                                                                                                                
Similar to Tier II hunting permits...                                                                                           
                                                                                                                                
11:38:02 AMREPRESENTATIVE KREISS-TOMKINS                                                                                      
comments from REPRESENTATIVE CHENAULT really well taken.                                                                        
This policy tool....helps people we know, as opposed to                                                                         
The other thing wanted to touch on is...working on this the past                                                                
three years. High cost of capital getting into the fishery.                                                                     
Idea is that this creates a stepping stone.                                                                                     
....would analogize that most people don't jump from ling with                                                                  
parents to buying a home or apartment.                                                                                          
11:41:53 AM                                                                                                                   
Reed M.                                                                                                                         
Final slide.                                                                                                                    
New bill requires that board have a diversity of experience.                                                                    
cant acquire permits in small fisheries                                                                                         
                                                                                                                                
Prohigit5s                                                                                                                      
Clarifies can not hold quota share                                                                                              
Ensureens ...revert back to ...                                                                                                 
Requires.ries that tem                                                                                                          
                                                                                                                                
                                                                                                                                
11:44:43 AMREPRESENTATIVE NEUMAN                                                                                              
though about this is that doesn't use state dollars                                                                             
Penalties paid if don't meet conditions of the permit                                                                           
If it is a loan..                                                                                                               
How does that process work                                                                                                      
                                                                                                                                
Reed M.                                                                                                                         
would say that a permit held by a trust can not be pledged                                                                      
as....for a mortgage                                                                                                            
Could not use the permit as collateral                                                                                          
                                                                                                                                
REPRESENTATIVE NEUMAN                                                                                                           
Thinks that should be side boards there.                                                                                        
A way for board to persuade that to happen                                                                                      
                                                                                                                                
REPRESENTATIVE CHENAULT                                                                                                         
Regarding up to 6 years...                                                                                                      
Is there a yearly charge for holding the permit                                                                                 
This cost of holding that permit                                                                                                
                                                                                                                                
Reed M.                                                                                                                         
Decision would be up to                                                                                                         
Paying fees up front would defeat the purpose.                                                                                  
Fisheries trusts allocate..                                                                                                     
Individuals interested would...                                                                                                 
HIstory of being in the fishery..                                                                                               
                                                                                                                                
11:49:52 AM                                                                                                                   
REPRESENTATIVE CHENAULT                                                                                                         
Is there any type of minimum...a                                                                                                
                                                                                                                                
Reed M.                                                                                                                         
There is no minimum bid that is set.                                                                                            
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
Building on that answer...the market will ...                                                                                   
The real value is...                                                                                                            
Its in your own best interest ...                                                                                               
The value is that it offers flexibility...                                                                                      
Market will determine....                                                                                                       
                                                                                                                                
REPRESENTATIVE CHENAULT                                                                                                         
comment briefly                                                                                                                 
                                                                                                                                
REPRESENTATIVE EASTMAN                                                                                                          
Take the devils advocate                                                                                                        
How is that different                                                                                                           
                                                                                                                                
11:52:55 AM                                                                                                                   
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
It gets back to the flexibility                                                                                                 
Looking at a multi decade term                                                                                                  
...long term commitment.                                                                                                        
...not locked in to a mulit                                                                                                     
                                                                                                                                
Reed. M.                                                                                                                        
Difference between the lease                                                                                                    
Under the prior bill...                                                                                                         
The fundemental distinction is ....going through CFEC...                                                                        
If you don't make the payment, the guy can ...                                                                                  
                                                                                                                                
CHAIR STUTES                                                                                                                    
Ask                                                                                                                             
Mayor of...                                                                                                                     
                                                                                                                                
                                                                                                                                
11:55:54 AM                                                                                                                   
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
miscomprehended the question                                                                                                    
in the spirit of summary.                                                                                                       
                                                                                                                                
11:56:50 AM                                                                                                                   
CHAIR STUTES                                                                                                                    
We have this schedule again                                                                                                     
                                                                                                                                
11:57:05 AM                                                                                                                   
open public testimony                                                                                                           
                                                                                                                                
                                                                                                                                
Mayor Alvin Osterback Mayor of Aleutian...                                                                                      
Livestyle is fishing                                                                                                            
he holds permits.                                                                                                               
requesting that an additional name be listed ...                                                                                
The borough passed a resolution...also King Cove                                                                                
for transfer...by having an additonal name.                                                                                     
Would allow for young and                                                                                                       
New entrants..                                                                                                                  
Also a survivors spouse..                                                                                                       
Serious....for our community.                                                                                                   
Problems with alcholism                                                                                                         
Young fishermen...                                                                                                              
As a young person we never looked at what was s                                                                                 
                                                                                                                                
12:00:23 PM                                                                                                                   
CHAIR STUTES appreciate testimony.                                                                                              
                                                                                                                                
                                                                                                                                
Announced that she was leaving public testimony open.                                                                           
                                                                                                                                
CHAIR STUTES                                                                                                                    
                                                                                                                                
12:00:48 PM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the *                                                                     
meeting was adjourned at *.c testimony open                                                                                     
                                                                                                                                

Document Name Date/Time Subjects
HB188 Sectional Analysis ver M 1.24.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188
HB188 Sponsor Statement ver M 1.24.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188
HB188 Summary of Changes ver U-ver M 1.24.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188
HB188 Sponsor Statement ver M 1.24.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188
HB188 Draft Proposed Blank CS ver M 1.24.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188
HB188 Additional Document-Version M PPT 1.25.18.pdf HFSH 1/25/2018 11:00:00 AM
HB 188