03/23/2005 08:30 AM House FISHERIES
| Audio | Topic | 
|---|---|
| Start | |
| HB192 | |
| HB174 | |
| HB37 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 192 | TELECONFERENCED | |
| *+ | HB 37 | TELECONFERENCED | |
| *+ | HB 174 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE SPECIAL COMMITTEE ON FISHERIES                                                                            
                         March 23, 2005                                                                                         
                           8:35 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Bill Thomas, Co-Chair                                                                                            
Representative Jim Elkins                                                                                                       
Representative Woodie Salmon                                                                                                    
Representative Peggy Wilson                                                                                                     
Representative Mary Kapsner                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative John Harris                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 192                                                                                                              
"An  Act  relating  to  requirements to  obtain  and  maintain  a                                                               
fisheries  business license;  relating  to  security required  of                                                               
fish processors  and primary  fish buyers;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 192(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 174                                                                                                              
"An Act relating to commercial fishing permit and vessel license                                                                
fees; and providing for an effective date."                                                                                     
                                                                                                                                
     - MOVED CSHB 174(FSH) OUT OF COMMITTEE                                                                                     
                                                                                                                                
                                                                                                                                
HOUSE BILL NO. 37                                                                                                               
"An Act relating to public access to fishing streams."                                                                          
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PRESENTATION:  REDFERN RESOURCES REGARDING THE TULSEQUAH CHIEF                                                                  
MINE                                                                                                                            
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: HB 192                                                                                                                  
SHORT TITLE: FISHERIES BUSINESS LICENSE; BOND                                                                                   
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/02/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/02/05       (H)       FSH, L&C, FIN                                                                                          
03/09/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
03/09/05       (H)       Heard & Held                                                                                           
03/09/05       (H)       MINUTE(FSH)                                                                                            
03/16/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
03/16/05       (H)       Scheduled But Not Heard                                                                                
03/21/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
03/21/05       (H)       -- Meeting Canceled --                                                                                 
03/23/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                                
BILL: HB 174                                                                                                                  
SHORT TITLE: FISHING PERMIT AND VESSEL LICENSE FEES                                                                             
SPONSOR(S): REPRESENTATIVE(S) SAMUELS                                                                                           
                                                                                                                                
02/24/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/05       (H)       FSH, RES, FIN                                                                                          
03/23/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                                
BILL: HB  37                                                                                                                  
SHORT TITLE: PUBLIC ACCESS TO FISHING STREAMS                                                                                   
SPONSOR(S): REPRESENTATIVE(S) GARA                                                                                              
                                                                                                                                
01/10/05       (H)       PREFILE RELEASED 12/30/04                                                                              
01/10/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/10/05       (H)       FSH, RES                                                                                               
03/21/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
03/21/05       (H)       -- Meeting Canceled --                                                                                 
03/23/05       (H)       FSH AT 8:30 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHUCK HARLAMERT, Juneau Section Chief                                                                                           
Tax Division                                                                                                                    
Alaska Department of Revenue                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the committee substitute for HB
192 on behalf of the governor and answered questions.                                                                           
                                                                                                                                
IAN FISK, Staff                                                                                                                 
to Representative Bill Thomas                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Presented an amendment to HB  192 on behalf                                                               
of Representative Thomas.                                                                                                       
                                                                                                                                
REPRESENTATIVE RALPH SAMUELS                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 174 as bill sponsor.                                                                          
                                                                                                                                
FRANK HOMAN, Commissioner                                                                                                       
Commercial Fisheries Entry Commission (CFEC)                                                                                    
Alaska Department of Fish & Game                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions regarding HB 174.                                                                       
                                                                                                                                
JERRY McCUNE, Lobbyist                                                                                                          
for United Fishermen of Alaska (UFA)                                                                                            
Cordova, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 174.                                                                            
                                                                                                                                
REPRESENTATIVE LES GARA                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 37 as sponsor.                                                                                
                                                                                                                                
BOB CHURCHILL, President,                                                                                                       
Alaska Council of the Federation of Fly Fishers (FFF)                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 37.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CO-CHAIR GABRIELLE  LEDOUX called the House  Special Committee on                                                             
Fisheries  meeting  to  order at  8:35:00  AM.    Representatives                                                             
LeDoux, Thomas,  Wilson, Salmon, and  Elkins were present  at the                                                               
call to  order.   Representative Kapsner  arrived as  the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
HB 192-FISHERIES BUSINESS LICENSE; BOND                                                                                       
                                                                                                                                
8:35:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  first order of business would                                                               
be  HOUSE BILL  NO.  192,  "An Act  relating  to requirements  to                                                               
obtain  and maintain  a fisheries  business license;  relating to                                                               
security  required of  fish processors  and primary  fish buyers;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
8:35:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON moved  to adopt  the committee  substitute                                                               
for  HB  192, Version  24-GH1013\F,  Utermohle,  3/17/05, as  the                                                               
working  document.   [There  being no  objection,  Version F  was                                                               
before the committee.]                                                                                                          
                                                                                                                                
8:36:28 AM                                                                                                                    
                                                                                                                                
CHUCK  HARLAMERT,  Juneau  Section Chief,  Tax  Division,  Alaska                                                               
Department of  Revenue (DOR), presented the  committee substitute                                                               
for HB  192 on behalf of  the governor.  He  reviewed the changes                                                               
that the  CS would make to  the original bill.   The first change                                                               
is in  Section 1, page 2,  lines 7 and  22, which he said  is "an                                                               
additional  requirement for  licensure; ...  it basically  places                                                               
local fisheries taxes among the  list of obligations that must be                                                               
paid by a processor in order  to licensed."  The second change is                                                               
that a new Section 2 has been inserted which he said:                                                                           
                                                                                                                                
     gives  processors a  break  during  the period  between                                                                    
     January 1 and March 31.  ... Under current law they are                                                                    
     required  to   post  security  covering   their  unpaid                                                                    
     estimated tax  for the  prior year,  which is  not paid                                                                    
     yet,  and the  new license  year.   During that  three-                                                                    
     month window  they essentially  are stuck  with posting                                                                    
     security for two years of  tax.  This [bill] allows the                                                                    
     [DOR] to  accept ... the  same security for  both years                                                                    
     during that  short period if it's  acceptable to [DOR],                                                                    
     and  that  should  provide   a  significant  cash  flow                                                                    
     benefit to processors during that tight period.                                                                            
                                                                                                                                
8:38:04 AM                                                                                                                    
                                                                                                                                
MR.  HARLAMERT, in  response to  Co-Chair LeDoux,  said that  the                                                               
processors are  not required  to pay the  prior year's  tax until                                                               
March 31, therefore,  under current law the  processor would have                                                               
to  either pay  that tax  before  the due  date or  "pony up"  an                                                               
additional  year's worth  of security.   He  noted that  for this                                                               
change to apply,  the processor must be current in  its taxes and                                                               
be licensed during January through March.                                                                                       
                                                                                                                                
MR. HARLAMERT pointed  out that the third change  to the original                                                               
bill is in Section 3, which  was previously Section 2; on page 4,                                                               
line 7, tenders  are added as bond beneficiaries.   He noted that                                                               
under  current   law,  employees,   fishermen,  and   the  Alaska                                                               
Department of  Labor and Workforce  Development can file  a claim                                                               
against the bond.   He said, "This adds tender  operators to that                                                               
list.  They are required to  get a judgment; having done so, they                                                               
can collect against the bond."                                                                                                  
                                                                                                                                
8:40:01 AM                                                                                                                    
                                                                                                                                
MR. HARLAMERT turned to the next  change in the bill, which is on                                                               
page 6, line 14.   The word "may" was changed  to "shall" so that                                                               
the  bill would  conform  to existing  law  and the  commissioner                                                               
would  be required  to waive  the  filing of  a performance  bond                                                               
under certain conditions.                                                                                                       
                                                                                                                                
8:41:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON asked if the  bill would prevent processors                                                               
from not paying fishermen.                                                                                                      
                                                                                                                                
MR.  HARLAMERT  replied  that  the  bill  wouldn't  automatically                                                               
prevent that from happening.  He noted:                                                                                         
                                                                                                                                
     Under existing law,  you actually have to  have a claim                                                                    
     paid  from the  bond  in order  to  affect the  bonding                                                                    
     requirement of  the [processor], and ...  in all cases,                                                                    
     old  and under  this  proposed law,  fishermen have  to                                                                    
     pursue a claim.   Under current law, if  they pursued a                                                                    
     claim,   it  could   impact  the   processor's  bonding                                                                    
     requirement, and under this law it will impact it.                                                                         
                                                                                                                                
REPRESENTATIVE WILSON asked  if there is a  simple procedure that                                                               
all fishermen  know to  follow if  they have not  been paid  by a                                                               
processor.                                                                                                                      
                                                                                                                                
MR. HARLAMERT  replied that he  assumed that fishermen  know, but                                                               
they may not.  Where they have  to go, under current law and this                                                               
bill, he said, is to the court to obtain a judgment.                                                                            
                                                                                                                                
8:43:08 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX remarked,  "I thought somebody was  going to look                                                               
into   the  constitutionality   of  simply   allowing  a   short,                                                               
administrative hearing for tendermen  and fishermen and employees                                                               
to be  able to go against  the bond without going  through a full                                                               
court hearing."                                                                                                                 
                                                                                                                                
MR. HARLAMERT replied that he was not aware of that expectation.                                                                
                                                                                                                                
CO-CHAIR THOMAS noted  that he had filed against a  bond once and                                                               
he didn't hire an attorney but instead went to a magistrate.                                                                    
                                                                                                                                
CO-CHAIR LEDOUX commented that it  depends on the amount a person                                                               
is  seeking; a  small claims  court  action would  be dealt  with                                                               
through a magistrate.                                                                                                           
                                                                                                                                
8:45:04 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked for confirmation that the bond is $10,000.                                                                
                                                                                                                                
MR.  HARLAMERT replied  that  the basic  bond  level is  $10,000,                                                               
which is  unchanged from prior  law.  He  noted that this  is the                                                               
highest bond in  the country for fish processors.   He continued,                                                               
"It makes  the bonding  requirements, stepping  up to  either the                                                               
$50,000  or the  $100,000 level,  more responsive  to [processor]                                                               
behavior, so  it's easier to  have the bond increased  under this                                                               
bill than it is under current law."                                                                                             
                                                                                                                                
8:46:11 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
8:47:02 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS  moved  to  adopt   [Amendment  1],  which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     p.6, line 21: delete "employee or fishermen"                                                                               
        add "employee, fishermen, or contracted raw fish                                                                        
     transporter"                                                                                                               
                                                                                                                                
     p.8, line  7: delete "employee or fishermen"                                                                               
        add "employee, fishermen, or contracted raw fish                                                                        
     transporter"                                                                                                               
                                                                                                                                
     p.8, line 11: delete "employee or fishermen"                                                                               
        add "employee, fishermen, or contracted raw fish                                                                        
     transporter"                                                                                                               
                                                                                                                                
IAN   FISK,  Staff   to  Representative   Thomas,  Alaska   State                                                               
Legislature introduced [Amendment 1]  on behalf of Representative                                                               
Thomas.  He explained that  the amendment would allow "contracted                                                               
raw  fish  transporters"  to  obtain  final  judgment  against  a                                                               
processor's bond.                                                                                                               
                                                                                                                                
8:48:06 AM                                                                                                                    
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
8:48:16 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  moved to report  CSHB 192,  Version 24-GH1013\F,                                                               
Utermohle,  3/17/05, as  amended from  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  192(FSH) was reported from  the House Special                                                               
Committee on Fisheries.                                                                                                         
                                                                                                                                
HB 174-FISHING PERMIT AND VESSEL LICENSE FEES                                                                                 
                                                                                                                                
8:48:57 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be HOUSE  BILL NO.  174, "An Act  relating to  commercial fishing                                                               
permit and  vessel license fees;  and providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
REPRESENTATIVE   RALPH   SAMUELS,   Alaska   State   Legislature,                                                               
presented HB 174 as bill sponsor.  He stated:                                                                                   
                                                                                                                                
     In  2001, the  [Carlson  v. State  of Alaska]  decision                                                                  
     found   that  the   method   of  charging   nonresident                                                                    
     commercial  fishing permits  three  times the  resident                                                                    
     permit  was  discriminatory,  and legislation  in  2003                                                                    
     replaced the  3:1 formula as  determined by  the court.                                                                    
     The permit  fee structure that we  currently have since                                                                    
     the Carlson decision  has a steady decline  in value in                                                                  
     some of the fisheries around  the state.  It's caused a                                                                    
     steady decline  in funds  to [the  Commercial Fisheries                                                                    
     Entry Commission  (CFEC)].  [House Bill]  174 will help                                                                    
     fund  CFEC  by  removing  the arbitrary  $300  cap  and                                                                    
     allowing the permit renewal fees  [to be] based on true                                                                    
     value of  the fishery.  Some  of the points of  it are:                                                                    
     it changes  the nonresident fee differentials  on a per                                                                    
     person rather than  on a per permit basis.   It charges                                                                    
     nonresidents who qualify for  the reduced permit fee by                                                                    
     meeting   low-income  standards   the  full   allowable                                                                    
     nonresident differential.  ... It increases  the annual                                                                    
     fees  for  commercial  vessels  beginning  in  2006  by                                                                    
     various length  categories, and  it authorizes  CFEC to                                                                    
     charge  reasonable fees  for the  initial issuance  and                                                                    
     replacement  of stickers  for  display  of the  [Alaska                                                                    
     Department of Fish & Game (ADF&G)] numbers.                                                                                
                                                                                                                                
8:50:56 AM                                                                                                                    
                                                                                                                                
FRANK HOMAN, Commissioner,  Commercial Fisheries Entry Commission                                                               
(CFEC), Alaska  Department of  Fish &  Game, reiterated  that the                                                               
bill was  formulated in response to  Carlson.  He noted  that the                                                             
CFEC  has recently  had a  decline in  revenues and  therefore it                                                               
would  like to  adjust the  permit  fees and  the vessel  license                                                               
fees.  He continued:                                                                                                            
                                                                                                                                
     Because CFEC  is a receipt-supported agency,  it has no                                                                    
     general funds.  Our  outlook with declining revenues is                                                                    
     that  in  [2006], we  wouldn't  be  able to  cover  our                                                                    
     budgetary obligations.  ... We  have been talking  to a                                                                    
     number  of   the  fishing  associations  and   ...  our                                                                    
     proposal  is that  with  the passage  of  the bill,  we                                                                    
     would have  a public  hearing process to  establish new                                                                    
     fee categories....                                                                                                         
                                                                                                                                
COMMISSIONER  HOMAN  noted  that  his  letter  to  Representative                                                               
Samuels, which is  in the committee packet,  discusses the public                                                               
hearing process.   A new fee  structure would be required  if the                                                               
cap was lifted,  and he remarked that the  [CFEC] would determine                                                               
that structure in cooperation with the fishing community.                                                                       
                                                                                                                                
8:54:31 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked if there is proposed fee schedule out now.                                                                
                                                                                                                                
COMMISSIONER  HOMAN  replied that  a  list  of proposed  fees  is                                                               
included in  the committee packet.   He stated,  "Those fisheries                                                               
that are  economically healthy  would be in  a higher  fee class;                                                               
they wouldn't artificially  be held to the $300 cap  as they were                                                               
previously."                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAPSNER remarked  that she is pleased  to see that                                                               
the proposed fee schedule is based on a sliding scale.                                                                          
                                                                                                                                
COMMISSIONER HOMAN replied that  the current minimum [permit fee]                                                               
is $60 and the minimum would  rise to $75 under the proposal, but                                                               
"because  we're going  to a  public  hearing that  could also  be                                                               
modified."  He  noted that there is a poverty  category for those                                                               
who are on federal assistance, which costs half the regular fee.                                                                
                                                                                                                                
REPRESENTATIVE  KAPSNER  asked  Commissioner Homan  if  he  would                                                               
consider referring to it as anything other than "poverty."                                                                      
                                                                                                                                
COMMISSIONER HOMAN replied, "Certainly."                                                                                        
                                                                                                                                
8:58:09 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  asked at  what increment  the sliding  scales go                                                               
up.                                                                                                                             
                                                                                                                                
COMMISSIONER HOMAN responded that  he could get that information.                                                               
He  added,  "Where there  is  a  limited  fishery, the  value  is                                                               
established  by the  permit value,  and where  it's an  unlimited                                                               
fishery, it's by the gross earnings in that fishery."                                                                           
                                                                                                                                
8:59:07 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS  commented  on  longline  fisheries  in  outside                                                               
waters  that  have Individual  Fishing  Quotas  (IFQs) that  [the                                                               
state] can't  assess.   He opined,  "It's too  bad that  we can't                                                               
somehow ... figure out how you tap into that ... big resource."                                                                 
                                                                                                                                
COMMISSIONER HOMAN replied:                                                                                                     
                                                                                                                                
     We do  issue halibut  and black  cod permits,  and they                                                                    
     are  based on  the same  principle of  permit value  or                                                                    
     gross  earnings, and  so  we do  try  to recognize  the                                                                    
     differences in those fisheries by  that method, but ...                                                                    
     in the public  hearing process we'd be  looking also at                                                                    
     those blocks  of IFQs  that are  very small  [that] are                                                                    
     sometimes  lumped into  the  larger  blocks. ...  We're                                                                    
     trying  to come  up  with a  mechanism that  recognizes                                                                    
     that difference.                                                                                                           
                                                                                                                                
CO-CHAIR THOMAS clarified that he  was referring to the "IFQ gulf                                                               
fishermen" which is inside Alaskan  waters.  He remarked that the                                                               
CFEC doesn't  assess those  fisheries by  volume of  fish caught;                                                               
everyone  pays the  same amount,  regardless of  how many  pounds                                                               
they have.                                                                                                                      
                                                                                                                                
9:01:33 AM                                                                                                                    
                                                                                                                                
COMMISSIONER HOMAN replied  that this was an issue  that the CFEC                                                               
was  aware of  and plans  to look  at during  the public  hearing                                                               
process.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  WILSON asked  if the  largest increase  resulting                                                               
from this bill would be $90.                                                                                                    
                                                                                                                                
COMMISSIONER  HOMAN pointed  out  that this  was  for the  vessel                                                               
license.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  WILSON asked  by how  much the  permit fee  would                                                               
increase.                                                                                                                       
                                                                                                                                
COMMISSIONER  HOMAN referred  to a  spreadsheet contained  in the                                                               
committee packet.                                                                                                               
                                                                                                                                
9:03:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked for further  clarification regarding                                                               
the bill.                                                                                                                       
                                                                                                                                
COMMISSIONER HOMAN replied that there  are two parts to the bill:                                                               
a permit  fee increase  and a  vessel license  fee increase.   He                                                               
explained that for a limited  fishery, the permit fee would equal                                                               
0.4 percent  of the  value of  the permit,  and for  an unlimited                                                               
fishery, the fee would equal 0.4 percent of the gross earnings.                                                                 
                                                                                                                                
REPRESENTATIVE  KAPSNER  asked  if   the  formula  was  "adjusted                                                               
depending on  what CFEC  is looking at  for their  [fish] tickets                                                               
from the previous year."                                                                                                        
                                                                                                                                
9:05:38 AM                                                                                                                    
                                                                                                                                
COMMISSIONER  HOMAN reiterated  that the  fees are  adjusted each                                                               
year based  on either permit  values or gross earnings  from fish                                                               
tickets.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  KAPSNER asked  how  the CFEC  assesses the  gross                                                               
value of a permit.                                                                                                              
                                                                                                                                
COMMISSIONER HOMAN replied  that the value of  the limited permit                                                               
is a marketplace reflection of the fishery.                                                                                     
                                                                                                                                
9:07:55 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX asked  if the  maximum  fee for  the permit  fee                                                               
would be $3,975, as listed in the spreadsheet.                                                                                  
                                                                                                                                
COMMISSIONER HOMAN  replied that  the numbers  were not  set, but                                                               
were  an illustration  to  show  how the  fee  would reflect  the                                                               
economic return  of a  fishery.   He explained  that the  new fee                                                               
schedules would be produced during the public hearing process.                                                                  
                                                                                                                                
CO-CHAIR LEDOUX commented  that the fees would  then have nothing                                                               
to do  with each individual  fisherman's receipts.   She remarked                                                               
on another concern, that "the  trawlers in Kodiak can conceivably                                                               
be paying as much for their  permits as the big at-sea processors                                                               
out west."                                                                                                                      
                                                                                                                                
9:09:32 AM                                                                                                                    
                                                                                                                                
COMMISSIONER HOMAN  noted that he had  discussions with fishermen                                                               
from [Kodiak], and  said, "We can make those  distinctions in the                                                               
public hearing process  ... [to ensure that]  the fishermen would                                                               
be  in a  class  with like  fishermen  and not  in  a class  with                                                               
significantly different [sized boats]."                                                                                         
                                                                                                                                
9:10:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS asked  if the  CPEC had  considered putting  a 1                                                               
percent tax on  top of the raw  fish tax to be used  as a revenue                                                               
source.   He noted that  this type of  tax would "hit  the people                                                               
who are making more on the top end."                                                                                            
                                                                                                                                
COMMISSIONER HOMAN replied:  "I think that might  be a reasonable                                                               
approach.  I think it's a  more complicated approach for us right                                                               
now,  but  I  think  it's   something  that  the  state  [should]                                                               
certainly look at as a way to ... consolidate the various fees."                                                                
                                                                                                                                
CO-CHAIR THOMAS pointed out that this  type of tax would hit each                                                               
fishery in a different way, based on their income.                                                                              
                                                                                                                                
9:12:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON asked  for  further  clarification of  the                                                               
nonresident fees.                                                                                                               
                                                                                                                                
COMMISSIONER   HOMAN  replied   that  there   is  a   nonresident                                                               
differential  which doesn't  show in  the bill  because "all  the                                                               
fees,  resident  or  nonresident,  are   the  same  in  the  same                                                               
fisheries, but for  the nonresident we add  a $115 differential."                                                               
He  stated  that   each  nonresident  would  pay   one  $115  fee                                                               
regardless of  how many permits they  hold.  This would  bring in                                                               
less revenue than before, he noted.                                                                                             
                                                                                                                                
9:15:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAPSNER asked  if  there  is a  way  to attach  a                                                               
sliding scale to nonresident fisherman.                                                                                         
                                                                                                                                
COMMISSIONER HOMAN responded that there is not.                                                                                 
                                                                                                                                
REPRESENTATIVE WILSON commented that  there is never enough money                                                               
in the  budget for Alaska  Department of  Fish & Game  (ADF&G) to                                                               
"do  what they  need to  do."   She pointed  out that  under this                                                               
bill, the largest  increase any boat would have to  pay in vessel                                                               
fees would be  $90, and the smallest increase would  be $15.  She                                                               
remarked that she thought this would be a worthwhile fee raise.                                                                 
                                                                                                                                
9:17:31 AM                                                                                                                    
                                                                                                                                
COMMISSIONER HOMAN stated  that the CFEC budget  "has been fairly                                                               
flat for  years."  He commented,  "[In the past], fees  that have                                                               
been collected have  first gone to fund CFEC and  then there have                                                               
traditionally  been excess  funds  that ...  the legislature  has                                                               
appropriated  to the  [ADF&G]  for  commercial fisheries  support                                                               
activities and projects."                                                                                                       
                                                                                                                                
REPRESENTATIVE  WILSON pointed  out  that the  fiscal note  shows                                                               
that the fees would bring in another $300,000.                                                                                  
                                                                                                                                
COMMISSIONER HOMAN  replied that  the proposed vessel  fees would                                                               
indeed  bring in  an  additional  $300,000.   He  noted that  the                                                               
permit  fees  would  generate  an   additional  $2  million,  and                                                               
therefore the bill in total would generate about $2.3 million.                                                                  
                                                                                                                                
REPRESENTATIVE  WILSON  asked  if   the  $2.3  million  would  be                                                               
allocated to CFEC.                                                                                                              
                                                                                                                                
COMMISSIONER HOMAN replied that  that was a legislative decision,                                                               
but traditionally that has been the case.                                                                                       
                                                                                                                                
9:21:00 AM                                                                                                                    
                                                                                                                                
JERRY  McCUNE, Lobbyist  for United  Fishermen  of Alaska  (UFA),                                                               
testified in support of HB 174.   He commented that the fishermen                                                               
are prepared to negotiate the higher fees.                                                                                      
                                                                                                                                
REPRESENTATIVE WILSON  asked Mr.  McCune if  he had  received any                                                               
complaints regarding the vessel license fee.                                                                                    
                                                                                                                                
MR. McCUNE replied that he had not heard any complaints.                                                                        
                                                                                                                                
REPRESENTATIVE  WILSON pointed  out  that the  fishermen plan  to                                                               
negotiate permit  fees to  a lower price;  however if  the vessel                                                               
fees  were  eliminated,   the  CFEC  would  have   to  raise  the                                                               
additional $300,000 via the permit fees.                                                                                        
                                                                                                                                
Mr. McCUNE replied  that as he understood it, if  the permit fees                                                               
were  imposed as  written in  the bill,  the CFEC  would be  over                                                               
budget  even without  the vessel  fees.   He concluded,  "There's                                                               
room for  negotiations still without  the increase in  the vessel                                                               
fees."                                                                                                                          
                                                                                                                                
9:23:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  responded that this  bill is a  chance for                                                               
the CFEC  to increase its  budget.  She commented,  "I understand                                                               
where  the fishermen  are  coming  from, but  this  is for  their                                                               
benefit.  ...  These are  little  increments  that might  make  a                                                               
difference for the [CFEC}."   She reiterated that the largest fee                                                               
increase would be $90.                                                                                                          
                                                                                                                                
CO-CHAIR THOMAS pointed  out that the bill  would increase vessel                                                               
fees 40-60 percent.  He noted  that he represents a lot of small-                                                               
vessel owners to whom this increase would be considerable.                                                                      
                                                                                                                                
9:27:10 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
CO-CHAIR THOMAS  remarked that he  would like to omit  the vessel                                                               
fee.   He  commented that  the  fee would  adversely affect  hand                                                               
trollers in several of the communities that he represents.                                                                      
                                                                                                                                
9:28:21 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS  moved  to  adopt   [Amendment  1],  which  read                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     P.2, Line 5: Delete Sec. 2                                                                                                 
     P.3, Line 17: Delete Sec. 4                                                                                                
                                                                                                                                
REPRESENTATIVE  WILSON objected  for  discussion  purposes.   She                                                               
asked Co-Chair Thomas how large the [hand troller] boats are.                                                                   
                                                                                                                                
CO-CHAIR THOMAS replied that the boats are 25-50 feet long.                                                                     
                                                                                                                                
REPRESENTATIVE WILSON pointed  out that the increase  in fees for                                                               
those boats would be $30.                                                                                                       
                                                                                                                                
CO-CHAIR THOMAS commented  that a lot of the  hand trollers gross                                                               
about $5,000-$6,000  per year,  and they  already have  high fuel                                                               
costs to contend with.                                                                                                          
                                                                                                                                
9:29:32 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked what  kind of permits  the fishermen                                                               
with the 25-50 foot boats have.                                                                                                 
                                                                                                                                
CO-CHAIR THOMAS  replied that most  of them would fall  under the                                                               
[currently]  $180  fee  range,  which   by  this  bill  would  be                                                               
increased to $225, and therefore the increase would be $45.                                                                     
                                                                                                                                
REPRESENTATIVE WILSON  summarized that  with both the  vessel fee                                                               
increase and  the permit fee  increase, these fishermen  would be                                                               
paying a total of less than $100 additional each year.                                                                          
                                                                                                                                
CO-CHAIR THOMAS noted that this would  be true if a fisherman has                                                               
only one  permit; however, if  a fisherman owns  several permits,                                                               
he/she would  pay a different fee  for each permit.   He remarked                                                               
that the insurance rates for  fishing vessels have gone up almost                                                               
100 percent in the last four years.                                                                                             
                                                                                                                                
REPRESENTATIVE WILSON withdrew her objection.                                                                                   
                                                                                                                                
9:31:47 AM                                                                                                                    
                                                                                                                                
There being no objection, Amendment 1 was adopted.                                                                              
                                                                                                                                
9:31:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAPSNER  moved to report  HB 174, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  note.    There  being  no  objection,  CSHB
174(FSH)  was  reported  from  the  House  Special  Committee  on                                                               
Fisheries.                                                                                                                      
                                                                                                                                
HB  37-PUBLIC ACCESS TO FISHING STREAMS                                                                                       
                                                                                                                              
9:32:21 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  final order of business would                                                               
be  HOUSE BILL  NO.  37, "An  Act relating  to  public access  to                                                               
fishing streams."                                                                                                               
                                                                                                                                
9:32:54 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LES  GARA, Alaska State Legislature,  presented HB
37 as bill sponsor.  He explained  that the bill is an attempt to                                                               
ensure public  access to stream bank  lands.  There are  a number                                                               
of  streams  in  Alaska  where  people hike  and  fish  with  the                                                               
assumption that the  land is public, but  it's actually privately                                                               
owned, he pointed out.  He  stated, "There's a fear among some in                                                               
the fishing community  that while today things are  fine, [in the                                                               
future] as  these lands get  developed, people won't  have access                                                               
to their trout  streams and steelhead streams  and salmon streams                                                               
any more."   He opined that  the state has generally  done a very                                                               
good job at  maintaining public access to  fishing streams; since                                                               
the 1980s the  state has been required to  maintain public access                                                               
to and along  fishing streams when it gives away  land.  However,                                                               
prior to  this requirement, there  were a number of  federal land                                                               
transfers  to   private  parties  where  no   public  access  was                                                               
reserved.   He explained that  under HB 37, ADF&G  would identify                                                               
certain areas where  the public would benefit  from public access                                                               
to fishing streams,  and the resulting list  would "create public                                                               
discussion about whether  or not we should ever  negotiate to try                                                               
and get  some of these lands  back into public ownership,  or get                                                               
public easements back."                                                                                                         
                                                                                                                                
9:35:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA emphasized:                                                                                                 
                                                                                                                                
     The  land trades  or land  purchases  could only  occur                                                                    
     with  a  willing,  voluntary landowner  who  wanted  to                                                                    
     engage  in  a land  trade  or  land sale.  ...  There's                                                                    
     nothing about this bill that  gives the state the power                                                                    
     to take  anything from anybody;  it's just  a voluntary                                                                    
     program, and  really the  list is created  in a  way to                                                                    
     create public  discussion so we  can get some  of these                                                                    
     stream  bank lands  back into  public ownership  before                                                                    
     they're developed.                                                                                                         
                                                                                                                                
REPRESENTATIVE  GARA  presented a  few  examples  of streams  and                                                               
rivers where  the public fish on  private lands.  He  pointed out                                                               
that  the Anchor  River on  the Kenai  River is  a highly  valued                                                               
steelhead and  salmon stream, and  much of it is  privately owned                                                               
but hasn't  been developed yet.   There are many  privately owned                                                               
fishing streams along the Parks Highway  as well.  He stated that                                                               
the streams  haven't been developed  much yet, but "one  of these                                                               
days [they]  will be and  the public  will lose access  to them."                                                               
Therefore, he said:                                                                                                             
                                                                                                                                
     That's  the motivation  behind the  bill: it's  to keep                                                                    
     this quality of  life we have here where  we're able to                                                                    
     access the  outdoors, and use  the outdoors,  and enjoy                                                                    
     the outdoors in  a way where, in other  states, many of                                                                    
     the prized fishing streams you  have to pay for access,                                                                    
     sometimes thousands of  dollars a week to  a rancher or                                                                    
     to a lodge  owner to access a fishing stream.   We just                                                                    
     want to make sure that doesn't become the case here.                                                                       
                                                                                                                                
9:37:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  LEDOUX asked,  regarding  the specific  pieces of  land                                                               
that  had  been  mentioned  in the  presentation,  what  was  the                                                               
reaction of the owners of these properties.                                                                                     
                                                                                                                                
REPRESENTATIVE  GARA replied  that the  landowners have  not been                                                               
contacted;  "if they  decide they  don't  want to  trade or  they                                                               
don't  want to  sell,  they just  won't."   He  mentioned that  a                                                               
property  owner  on  Deep  Creek has  expressed  an  interest  in                                                               
selling her property to the state.                                                                                              
                                                                                                                                
9:38:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX asked if there was a fiscal note.                                                                               
                                                                                                                                
REPRESENTATIVE GARA responded  that there was a  zero fiscal note                                                               
from ADF&G because it can do  this as part of its current duties.                                                               
The Alaska  Department of Natural  Resources (DNR) would  have to                                                               
do  appraisals  and  land  surveys, and  therefore  they  have  a                                                               
$40,000 fiscal note.                                                                                                            
                                                                                                                                
9:39:17 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  asked if the  bill would be continuous,  with no                                                               
sunset date.                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARA replied that ADF&G  would put together a list                                                               
of streams  and the state  would decide if  and when to  trade or                                                               
buy the land on  the list.  The ADF&G could add  to the list, but                                                               
"if at  some point the  state decides [that  it is] not  going to                                                               
buy or  trade for  anymore land, the  list probably  won't change                                                               
anymore and it will just remain there.                                                                                          
                                                                                                                                
9:39:58 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS  turned to  page 3, line  24, and  voiced concern                                                               
about the need to allow for an appeal.                                                                                          
                                                                                                                                
REPRESENTATIVE  GARA explained  that an  appeal process  was left                                                               
out of  the bill  because "we'd  like [ADF&G] to  come up  with a                                                               
list of  sort of high  value areas that  we'd like to  get public                                                               
access back  on.   We can  do that in  a very  easy way  and say,                                                               
'Look you have the expertise  within your agencies and within DNR                                                               
to  know what  those areas  are now'  take public  testimony, get                                                               
some public  comment, and  that's provided for  in the  bill, and                                                               
then just come up with a list.   Or we could impose very specific                                                               
standards on which  lands they would have to pick,  and if we did                                                               
that  and  had  an  appeals process  that  required  more  formal                                                               
studies to  determine which  lands would  end up  on the  list, I                                                               
think  it would  just become  very expensive  and so  I tried  to                                                               
avoid any  sort of formal  process that would impose  the expense                                                               
of appeal, that would impose the  expense of studies, that ... ok                                                               
the expense  of staff.   The bill as it  is written right  now is                                                               
pretty informal                                                                                                                 
                                                                                                                                
9:41:38 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  THOMAS turned  to page  4, line  12 and  voiced concern                                                               
that the  state would take over  the private property for  a very                                                               
low price.                                                                                                                      
                                                                                                                                
REPRESENTATIVE GARA answered  that the intention of  the bill was                                                               
"to do  the exact opposite,"  and give  the state the  ability to                                                               
offer  more  than  the  fair  market  value  for  property.    He                                                               
mentioned that he  would be willing to take this  part out of the                                                               
bill  if the  committee so  wished.   He also  noted, "There  can                                                               
never  be a  land purchase  under  this bill  unless the  private                                                               
property owner wants to sell it."                                                                                               
                                                                                                                                
9:43:09 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAPSNER  commented that  the Bethel region  is all                                                               
federal land and native allotments,  and she stated, "I'm worried                                                               
about the regions  of the state where the rivers  abut state land                                                               
or private land, and then the access of subsistence users."                                                                     
                                                                                                                                
REPRESENTATIVE GARA remarked that  there is already public access                                                               
to federal lands and so this  bill would have no impact on those.                                                               
He continued:                                                                                                                   
                                                                                                                                
     The intent is to allow  public access for all Alaskans,                                                                    
     whether  it's  subsistence  users,  sport  fish  users,                                                                    
     other recreational  users, [or] commercial  users; it's                                                                    
     to  maintain public  access so  all Alaskans  can enjoy                                                                    
     the  public resource.  ... This  bill actually  doesn't                                                                    
     change the law anywhere or  have any impact except that                                                                    
     it  allows the  state to  try and  engage in  voluntary                                                                    
     land  trades  and purchases  to  get  some more  public                                                                    
     access with a willing property owner.                                                                                      
                                                                                                                                
9:44:25 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARA,  in  response  to  Representative  Kapsner,                                                               
reiterated that  the state  would only  buy land  from landowners                                                               
who wish to sell.                                                                                                               
                                                                                                                                
9:45:15 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked how  the state  would deal  with the                                                               
Alaska Mental Health Trust Land near Wrangell.                                                                                  
                                                                                                                                
REPRESENTATIVE  GARA   replied  that  when  the   state  retained                                                               
easements and public access to  streams when it transferred lands                                                               
to the Mental Health Trust.                                                                                                     
                                                                                                                                
9:46:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  stated  concern about  the  list  because                                                               
local residents may not want others  to know the locations of the                                                               
nearby fishing streams.                                                                                                         
                                                                                                                                
REPRESENTATIVE GARA responded, "It's  the conflict between trying                                                               
to protect an area  and not wanting to talk about  it."  He noted                                                               
that  the areas  Representative Wilson  referred to  are probably                                                               
already publicly accessible and therefore  wouldn't end up on the                                                               
list.  He continued:                                                                                                            
                                                                                                                                
     We're  trying  to keep  the  list  very small,  [naming                                                                    
     only] the  highest priority lands ...  where the public                                                                    
     doesn't have  access, and  so we  said roughly  ... two                                                                    
     miles' worth  of land  should be on  the list,  so they                                                                    
     probably    wouldn't   get    into    an   area    like                                                                    
     [Representative  Wilson is]  talking about  anyway. ...                                                                    
     But I don't  know how to get public access  to a stream                                                                    
     without mentioning  it. ...  The list  isn't a  list of                                                                    
     places that  are great places  to fish; it's a  list of                                                                    
     places where there's no public access.                                                                                     
                                                                                                                                
9:48:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SALMON  remarked that this  bill would be  bad for                                                               
his district.   He expressed  concern that if "[the  state wants]                                                               
that land they'll get it, no matter  how....  If they want to get                                                               
it, they'll  get it.  ... Privately dealing  with [the  state] is                                                               
not  good for  the public  to begin  with."   He opined  that the                                                               
state should  have allowed for public  access to begin with.   He                                                               
commented  that  he viewed  the  bill  as  an attempt  to  expand                                                               
Anchorage, because  "Anchorage is  in kind  of a  little fishbowl                                                               
area and  now [Anchorage residents]  want more room to  play, and                                                               
if they should play, then they should pay."                                                                                     
                                                                                                                                
9:51:12 AM                                                                                                                    
                                                                                                                                
BOB  CHURCHILL, President,  Alaska Council  of the  Federation of                                                               
Fly Fishers  (FFF), testified in  favor of  HB 37.   He commented                                                               
that he understood  the concern regarding the  possible influx of                                                               
people to  areas, but he stated  that he didn't think  this would                                                               
happen  because travel  is  very  expensive in  Alaska.   He  did                                                               
express concern  that if land  passes into private  ownership and                                                               
then "gets  locked up," then  average Alaskans can no  longer use                                                               
those streams.  He said:                                                                                                        
                                                                                                                                
     There  may  be  a  belief  that  you're  going  to  get                                                                    
     inundated in  areas outside of the  population centers;                                                                    
     [however]   I  think   [that  HB   37]   is  far   more                                                                    
     advantageous  to those  that live  in those  areas now,                                                                    
     that they can continue to have  access.  I see the land                                                                    
     being bought by  folks from out of state,  and those of                                                                    
     us  that live  here and  pay  our taxes  and raise  our                                                                    
     children are going  to be the very ones  excluded if we                                                                    
     don't  start  moving  to ensure  we  continue  to  have                                                                    
     public access to these waterways.                                                                                          
                                                                                                                                
MR.  CHURCHILL  noted that  there  was  an  effort on  the  Kenai                                                               
Peninsula about  4-5 years ago  where the  landowners voluntarily                                                               
[sold stream access to the state].                                                                                              
                                                                                                                                
9:53:50 AM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
[HB 37 was held over].                                                                                                          
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Special Committee  on Fisheries meeting was  adjourned at 9:54:09                                                             
AM.                                                                                                                           
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