Legislature(1993 - 1994)
03/26/1993 08:30 AM House FSH
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 26, 1993
8:30 a.m.
MEMBERS PRESENT
Representative Carl E. Moses, Chairman
Representative Harley Olberg, Vice-Chairman
Representative Irene Nicholia
Representative Cliff Davidson
MEMBERS ABSENT
Representative Gail Phillips
COMMITTEE CALENDAR
HB 218 "An Act repealing the restriction on the maximum
length of salmon seine vessels; and providing for
an effective date."
HEARD AND HELD IN COMMITTEE FOR FURTHER
CONSIDERATION
*HB 230 "An Act relating to fees for commercial fishing
licenses and permits."
HEARD AND HELD IN COMMITTEE FOR FURTHER
CONSIDERATION
(* first public hearing)
WITNESS REGISTER
Geron Bruce, Special Assistant
Alaska Department of Fish and Game
P.O. Box 25526
Juneau, Alaska 99802-5526
Phone: 465-4100
Position Statement: Neutral on HB 218
Jerry McCune, President
United Fishermen of Alaska
211 Fourth Street, Suite 112
Juneau, Alaska 99801
Phone: 586-2820
Position Statement: Neutral on HB 218; Voiced concerns with
HB 230
Kate Troll, Executive Director
Southeast Seiners Association
9226 Long Run Drive
Juneau, Alaska 99801
Phone: 789-5117
Position Statement: Supported HB 218; Opposed HB 230
James Mykland
P.O. Box 1241
Cordova, Alaska 99574
Phone: 424-7115
Position Statement: Opposed HB 218
Frank Homan, Commissioner
Commercial Fisheries Entry Commission
8800 Glacier Hwy, Suite 109
Juneau, Alaska 99801-8079
Phone: 789-6160
Position Statement: Neutral on HB 218
Phil Brudie
P.O. Box 859
Homer, Alaska 99603
Phone: 235-7597
Position Statement: Felt Cook Inlet was being singled out
for higher fees
Al Ray Carroll, President
Cook Inlet Seiners Association
P.O. Box 4311
Homer, Alaska 99603
Phone: 235-2656
Position Statement: Opposed HB 230
Linda Kozak
Kodiak Long Line Vessel Association
326 Center Street, #202
Kodiak, Alaska 99615
Phone: 486-3781
Position Statement: Opposed HB 230
Maurice Ingman
15008 N. Tongass Highway
Ketchikan, Alaska 99901
Phone: 225-3876
Position Statement: Opposed HB 230
Alvin Osterback, President
Peninsula Marketing Association
P.O. Box 61
Sand Point, Alaska 99661
Phone: 383-4031
Position Statement: Opposed HB 230
Alvin Osterback, Sr.
P.O. Box 188
Sand Point, Alaska 99661
Phone: 383-2363
Position Statement: Opposed HB 230
Bruce Eagle
P.O. Box 303
Wrangell, Alaska 99929
Phone: 874-2162
Position Statement: Opposed HB 230
Norman Anderson
P.O. Box 106
Naknek, Alaska 99633
Phone: 246-4423
Position Statement: Opposed HB 230
Adelheid Herrmann
P.O. Box 263
Naknek, Alaska 99633
Phone: 246-4495
Position Statement: Voiced concerns with HB 230
Dick Jacobsen
P.O. Box 54
Sand Point, Alaska 99633
Phone: 383-2042
Position Statement: Opposed HB 230
Bruce Foster
Address not available
Sand Point, Alaska 99633
Phone: 383-2878
Position Statement: Opposed HB 230
Beth Stewart, Director
Natural Resources Department
Aleutians East Borough
P.O. Box 33796
Juneau, Alaska 99803
Phone: 789-9641
Position Statement: Opposed HB 230
PREVIOUS ACTION
BILL: HB 218
SHORT TITLE: REPEAL 58 FT. LIMIT FOR SEINE VESSELS
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MOSES
TITLE: "An Act repealing the restriction on the maximum
length of salmon seine vessels; and providing for an
effective date."
JRN-DATE JRN-PG ACTION
03/10/93 592 (H) READ THE FIRST TIME/REFERRAL(S)
03/10/93 592 (H) FISHERIES, RESOURCES
03/22/93 (H) FSH AT 08:30 AM CAPITOL 17
03/22/93 (H) MINUTE(FSH)
BILL: HB 230
SHORT TITLE: VESSEL FEES
BILL VERSION:
SPONSOR(S): REPRESENTATIVE(S) MOSES
TITLE: "An Act relating to fees for commercial fishing
licenses and permits."
JRN-DATE JRN-PG ACTION
03/15/93 649 (H) READ THE FIRST TIME/REFERRAL(S)
03/15/93 649 (H) FISHERIES, RESOURCES, FINANCE
03/26/93 (H) FSH AT 08:30 AM CAPITOL 17
ACTION NARRATIVE
Tape 93-14, Side A
Number 000
HB 218: REPEAL 58 FT. LIMIT FOR SEINE VESSELS
CHAIRMAN CARL MOSES called the meeting to order at 8:40
a.m., and acknowledged the teleconference sites. He stated
the meeting would start as a work session due to the lack of
a quorum, and announced HB 218 would be heard again and HB
230 would be heard for the first time.
CHAIRMAN MOSES brought up the proposed Fisheries Committee
Substitute for HB 230 (CSHB 230 (FSH)) which would clarify
that the 58 foot seine limit would be repealed in state law,
but authority for making restrictions on length would go
back to the Board of Fisheries. The Board of Fisheries
would make those restrictions on a fishery by fishery or
regional basis. He added the change was suggested by the
Alaska Department of Fish & Game (ADF&G).
CHAIRMAN MOSES asked Mr. Bruce of the ADF&G to come forward
with the suggested change.
GERON BRUCE, SPECIAL ASSISTANT, ADF&G, stated the amendment
was suggested by the ADF&G to allow the Board of Fisheries
sufficient time to conduct hearings in a three year cycle
region by region. The hearings would be held to determine
whether the fishermen in each region wanted the 58 foot
limit repealed. The Chairman of the Board of Fisheries was
consulted and he recommended the amendment. Mr. Bruce
concluded the ADF&G was neutral on HB 218.
Number 066
JERRY MCCUNE, PRESIDENT, UNITED FISHERMEN OF ALASKA (UFA),
said the UFA had discussed HB 218 and decided if all the
fishing organizations and fishermen agreed to repeal the 58
foot limit for seine vessels, then the UFA would support the
bill; and, the length restrictions for salmon seine vessels
should be determined by the Board of Fisheries on a regional
basis. Otherwise, the UFA is neutral on the bill and will
let the groups address it, he concluded.
Number 091
KATE TROLL, EXECUTIVE DIRECTOR, SOUTHEAST SEINERS
ASSOCIATION said she had previously testified on HB 218, had
made the suggestion about consideration of the Board of Fish
cycle, and was glad to see the change had been included.
JAMES MYKLAND, testified via teleconference from Cordova
that he was involved in purse seine fisheries in Prince
William Sound and felt if 70-100 foot seine boats were
allowed, it would lead to over-capitalization of the fleet
and would not be advantageous to the area.
CHAIRMAN MOSES asked if anyone else wanted to testify via
teleconference on HB 218. Hearing none, he moved on to HB
230.
HB 230: VESSEL FEES
Number 144
FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY
COMMISSION (CFEC), presented an analysis showing some of the
impact of HB 230, which had been requested. (A copy of the
analysis may be found in the House Special Committee on
Fisheries' Committee Room, and after the adjournment of the
second session of the 18th Alaska State Legislature, in the
Legislative Reference Library.) He noted the CFEC had taken
a neutral position on HB 230 because of concern about recent
court cases involving some dispute on the resident/non-
resident fee structure which had not yet been resolved. The
CFEC also felt there was a policy question that as a revenue
generating measure, the legislature was the more appropriate
body to determine the need for revenue than the CFEC.
MR. HOMAN explained the Limited Entry Commission currently
collects an annual vessel fee of $20, and HB 230 would
change the system to one which would be based on the tonnage
of the vessel. The commission would charge $2 per ton and
there would be a $20 minimum. In order to show the impact,
he stated in 1992, 17,194 vessels were licensed and $340,000
was collected. Based on changing to a gross tonnage fee,
calculations of total revenue collected would be $860,000.
MR. HOMAN further explained the current system of the flat
$20 fee is an automatic system and there is very little
administrative costs involved. An analysis of the
administrative impact of going to a tonnage fee system is
still being worked on, he advised, because records would
have to be verified or some official Coast Guard
documentation would have to be sent in with the vessel
license application.
MR. HOMAN commented on the second part of HB 230 which has
to do with the annual fee. The current annual fee formula
for a limited entry permit is 1/4 of one percent of the
value of the limited entry permit and the unlimited
fisheries formula is 1/4 of one percent of the average gross
earnings of that fishery during the last three years.
Currently the cap for residents is $250 and the cap for non-
resident is $750. By removing the cap as HB 230 would do,
there would be a substantial increase in revenue collected.
Number 385
PHIL BRUDIE from Homer, testified via teleconference that
fishing seasons in Cook Inlet have not been very good and
fees are increasing, meanwhile Kodiak had no increase in
fees and better fishing. He wanted to know if there was a
specific reason for the fee increase in Cook Inlet, and
mentioned the fish catch has decreased considerably since
the oil spill. He saw no justification to be singled out
for a fee increase, and suggested an error must have been
made.
Number 400
CHAIRMAN MOSES responded that it was certainly not the
intent of HB 230. It was designed to make all the fees more
equitable, he advised.
Number 412
AL RAY CARROLL, PRESIDENT, COOK INLET SEINERS ASSOCIATION,
testified regarding a media release from Representative
Moses which said the increases would be felt by only the
higher value fisheries with nearly 80 percent coming from
the non-residents. Mr. Carroll pointed out there are 74
resident permits and two non-resident permits. He agreed
with Mr. Brudie that an error must have been made, and asked
the committee to look over the figures.
Number 440
LINDA KOZAK, KODIAK LONG LINE VESSEL ASSOCIATION, asked to
go on record as opposing HB 230. Worried because the
revenue generated from these fees cannot be dedicated to the
fishing industry, she stated the Kodiak Long Line Vessel
Association was not opposed to a slight increase, but felt
the fishermen are already paying enough taxes and fees. She
would rather see a more broad base type of tax or fee
increase.
MAURICE INGMAN on teleconference from Ketchikan opposed HB
230. He stated it would increase his fees by four times,
and expressed concern that the additional revenue would go
into the state's general fund and be used to build roads or
something in other communities.
Number 514
ALVIN OSTERBACK, PRESIDENT, PENINSULA MARKETING ASSOCIATION,
testified from Sand Point and asked to be on record as
opposing HB 230. He had many of the same concerns as
previous speakers.
Number 547
ALVIN OSTERBACK, SR. of Sand Point said prices are going
down and insurance is going up. He felt the state income
tax should be reinstated.
Number 569
BRUCE EAGLE of Wrangell expressed concern of a lack of a cap
in section 3 of HB 230. He felt it should be changed but
not deleted, and was opposed to any more fee increases for
fishermen.
NORMAN ANDERSON of Naknek testified via teleconference. He
wanted to go on record opposing HB 230, and felt the state
should be more involved with the adverse price fluctuations
of salmon.
Number 598
ADELHEID HERRMANN, a commercial fisherman from Naknek, had
concerns with HB 230. If the money were to go back to the
ADF&G she would have no problem, but since there is no such
thing as dedicated funds, she has a problem with it.
Fishing fee increases at the same time as Coast Guard
requirements are coming on line is quite a concern to
fishermen, she noted, and more money needs to go to fish and
wildlife protection where many people go unfined. She was
inclined to support a 1% marketing increase if a system was
set up where fishermen had equal say with the processors.
Number 628
DICK JACOBSEN, of Sand Point commented on HB 230's fee
structure. He felt western Alaska had been singled out to
pay higher fees, and asked to go on record as being opposed
to HB 230 in its present form.
Number 665
BRUCE FOSTER of Sand Point felt the fee increase on
fishermen would be too hard.
TAPE 93-14, Side B
Number 027
BETH STEWART, DIRECTOR, NATURAL RESOURCES DEPARTMENT,
ALEUTIANS EAST BOROUGH (AEB), testified in opposition to HB
230. The AEB suggested the committee increase all vessel
licenses by five, ten, or twenty dollars rather than having
fees based on vessel capacity. She stated there is
currently litigation regarding the issue of differential
permit fees for residents and non-residents and believed
some of the increases proposed would bring additional
litigation. Additionally, the AEB felt if additional
revenue was being looked at from the Exclusive Economic Zone
fisheries, there would be Magnuson Act conflicts that would
result in losing the current revenues the state is
collecting.
MS. STEWART, on behalf of the AEB, asked that the
legislature investigate the issue through the National
Oceanic and Atmospheric Administration's general council.
The AEB felt if the intent of HB 230 is to capture more non-
resident revenue, a more effective way to do that would be
to reinstate a state income tax.
Number 090
JERRY McCUNE, PRESIDENT, UNITED FISHERMEN OF ALASKA (UFA),
stated fishermen are already paying their fair share in fees
and taxes. Since there is no way to dedicate funds, the UFA
was concerned that the additional revenue would go to fund
someone else's programs instead of fisheries.
Number 116
KATE TROLL, EXECUTIVE DIRECTOR, SOUTHEAST ALASKA SEINERS
ASSOCIATION, opposed HB 230 because of cost and fairness.
In order to stay viable many fishermen have had to
diversify. There is no correlation between the money going
to support the fishing industry and the money brought in by
the industry. Not all industries are being asked to pay
increases, and a state income tax should be looked at in all
fairness, she concluded.
ADJOURNMENT
Number 168
CHAIRMAN MOSES asked for further testimony or discussion.
Hearing none he stated his intent to hold both HB 218 and HB
230 for further consideration. He then adjourned at 9:40
a.m.
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