Legislature(2019 - 2020)BUTROVICH 205

04/29/2019 05:30 PM RESOURCES

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Audio Topic
05:29:02 PM Start
05:29:24 PM SB90
05:40:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= SB 90 COOK INLET: NEW ADMIN AREA;PERMIT BUYBACK TELECONFERENCED
Moved CSSB 90(RES) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         April 29, 2019                                                                                         
                           5:29 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Chris Birch, Chair                                                                                                      
Senator John Coghill, Vice Chair                                                                                                
Senator Cathy Giessel                                                                                                           
Senator Lora Reinbold                                                                                                           
Senator Click Bishop                                                                                                            
Senator Scott Kawasaki                                                                                                          
Senator Jesse Kiehl                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 90                                                                                                              
"An  Act  relating  to  the   powers  of  the  Alaska  Commercial                                                               
Fisheries Entry Commission; relating  to administrative areas for                                                               
regulation  of   certain  commercial   set  net   entry  permits;                                                               
establishing  a  buy-back  program  for  certain  set  net  entry                                                               
permits; providing  for the  termination of  state set  net tract                                                               
leases  under  the buy-back  program;  closing  certain water  to                                                               
commercial fishing; and providing for an effective date."                                                                       
                                                                                                                                
     - MOVED CSSB 90(RES) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 90                                                                                                                   
SHORT TITLE: COOK INLET: NEW ADMIN AREA; PERMIT BUYBACK                                                                         
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
03/13/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/13/19       (S)       RES, FIN                                                                                               
03/29/19       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/29/19       (S)       Heard & Held                                                                                           
03/29/19       (S)       MINUTE(RES)                                                                                            
04/22/19       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/22/19       (S)       Heard & Held                                                                                           
04/22/19       (S)       MINUTE(RES)                                                                                            
04/29/19       (S)       RES AT 5:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 90.                                                                                         
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
5:29:02 PM                                                                                                                    
CHAIR CHRIS BIRCH called the  Senate Resources Standing Committee                                                             
meeting to order  at 5:29 p.m. Present at the  call to order were                                                               
Senators  Bishop, Giessel,  Kawasaki,  Coghill, Reinbold,  Kiehl,                                                               
and Chair Birch.                                                                                                                
                                                                                                                                
        SB 90-COOK INLET: NEW ADMIN AREA; PERMIT BUYBACK                                                                    
                                                                                                                                
5:29:24 PM                                                                                                                    
CHAIR BIRCH  announced the  consideration of  Senate Bill  90 (SB                                                               
90). He explained that during  the previous hearing the committee                                                               
adopted  a committee  substitute,  version R,  and adjourned  the                                                               
meeting with Amendment 1 pending.                                                                                               
                                                                                                                                
He asked  Senator Giessel if  she maintained her motion  to adopt                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
SENATOR GIESSEL withdrew Amendment 1.                                                                                           
                                                                                                                                
CHAIR BIRCH asked if she wished to offer Amendment 2.                                                                           
                                                                                                                                
5:31:01 PM                                                                                                                    
SENATOR GIESSEL moved to adopt Amendment 2, version R.3.                                                                        
                                                                                                                                
                                                   31-LS0230\R.3                                                                
                                                        Bullard                                                                 
                                                        4/26/19                                                                 
                                                                                                                                
                                                                                                                                
                          AMENDMENT 2                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                   BY SENATOR GIESSEL                                                                 
     TO: CSSB 90(RES), Draft Version "R"                                                                                        
                                                                                                                                
                                                                                                                                
     Page 6, lines 4 - 8:                                                                                                       
          Delete all material and insert:                                                                                       
               "(2)  provide  a  shore fisheries  lease,  an                                                                    
     area registration,  a buoy  tag, a  previous submission                                                                    
     of   fishing  statistics   for  the   area,  or   other                                                                    
     documentation    proving,     to    the    commission's                                                                    
     satisfaction,  that  the  individual  or  an  immediate                                                                    
     family member of the individual                                                                                            
                    (A) has  held the entry permit  that was                                                                    
     reassigned from  the Cook  Inlet to  the administrative                                                                    
     area    established    under   AS 16.43.200(c)    since                                                                    
     January 1, 2016; and                                                                                                       
                    (B)   actively   participated   in   the                                                                    
     fishery identified  by the Department of  Fish and Game                                                                    
     as  of January 1,  2019, as  statistical areas  244-21,                                                                    
     244-22,  244-31,  244-32,  244-41, and  244-42  of  the                                                                    
     Upper Subdistrict  of the  Cook Inlet  Central District                                                                    
     within the two years preceding December 31, 2018; and                                                                      
               (3)  provide an  affidavit to  the commission                                                                    
     containing  an  accurate  description of  the  specific                                                                    
     site  used to  fish the  entry permit;  the description                                                                    
     must include, if the site is                                                                                               
                    (A)   leased  under   AS 38.05.082,  the                                                                    
     lease agreement;                                                                                                           
                    (B)  leased  from  a  municipality,  the                                                                    
     geographic  location  and   boundaries  of  the  leased                                                                    
     tract; and                                                                                                                 
                    (C)  on  unleased  public land,  a  site                                                                    
     survey  and  other  related  information  that  may  be                                                                    
     required by the commission; and"                                                                                           
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 6, line 20:                                                                                                           
          Delete "the information required under (h)"                                                                           
          Insert "all of the information required under                                                                         
     (a)"                                                                                                                       
                                                                                                                                
     Page 7, line 9, following "who":                                                                                           
          Insert "fishes the individual's entry permit from                                                                     
     a site"                                                                                                                    
                                                                                                                                
     Page 7, line 10:                                                                                                           
          Delete "holds a lease"                                                                                                
          Insert "leased"                                                                                                       
                                                                                                                                
     Page 7, lines 11 - 12:                                                                                                     
          Delete "affected lease under AS 38.05.082"                                                                            
          Insert "description of the lease provided under                                                                       
     (a)(3)(A) of this section"                                                                                                 
                                                                                                                                
     Page 7, line 13:                                                                                                           
          Delete "fishes the individual's entry permit from                                                                     
     a tract"                                                                                                                   
                                                                                                                                
     Page 7, line 16:                                                                                                           
          Delete "(h)"                                                                                                          
          Insert "(a)(3)(B)"                                                                                                    
                                                                                                                                
     Page 7, line 25, through page 8, line 2:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Re-letter the following subsections accordingly.                                                                           
                                                                                                                                
     Page 8, lines 18 - 20:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Page 8, lines 21 - 22:                                                                                                     
          Delete all material and insert:                                                                                       
               "(k) In this section,                                                                                            
                    (1) "commission" means the Alaska                                                                           
       Commercial Fisheries Entry Commission established                                                                        
     under AS 16.43.020;                                                                                                        
                    (2) "immediate family member" means                                                                         
                         (A) the spouse of an individual;                                                                       
                         (B) another individual cohabiting                                                                      
         with an individual in a conjugal relationship                                                                          
          that is not a legal marriage;                                                                                         
                         (C) a child, including a stepchild                                                                     
          and an adopted child, of an individual;                                                                               
                         (D)     a      parent,     sibling,                                                                    
       grandparent, aunt, or uncle of an individual; and                                                                        
                         (E) a parent or sibling of an                                                                          
          individual's spouse."                                                                                                 
                                                                                                                                
SENATOR REINBOLD objected for discussion purposes.                                                                              
                                                                                                                                
SENATOR GIESSEL stated  that Amendment 2 should  make the buyback                                                               
program proceed  without impinging  on its likelihood  of success                                                               
and accommodate  the concerns that  some may attempt to  game the                                                               
system.                                                                                                                         
                                                                                                                                
SENATOR GIESSEL summarized Amendment 2 as follows:                                                                              
                                                                                                                                
   1. Requires the buyback applicant to have the permit since                                                                   
     January 1, 2016. That is approximately 4 years from the                                                                    
     effective date.                                                                                                            
   2. Requires  the   buyback    applicant   to   have   actively                                                               
     participated in the fishery within 2 years preceding                                                                       
     December 31, 2018.                                                                                                         
   3. Requires the buyback applicant to attach a specific site to                                                               
     the permit earlier in the lottery process.                                                                                 
        • Amendment 2 prevents an applicant with multiple                                                                       
          permits to pick and choose the least desirable sites                                                                  
          for the permit buyback.                                                                                               
                                                                                                                                
She  said she  believes that  these changes  will still  make the                                                               
buyback a  successful opportunity. She noted  that the definition                                                               
for "immediate family" is still  very broad and maintains the key                                                               
elements that the original bill contained.                                                                                      
                                                                                                                                
CHAIR  BIRCH  asked  Senator  Micciche to  share  his  views  and                                                               
assessment of Amendment 2.                                                                                                      
                                                                                                                                
5:34:32 PM                                                                                                                    
SENATOR  PETER   MICCICHE,  Alaska  State   Legislature,  Juneau,                                                               
Alaska, sponsor of  SB 90, opined that Amendment  2 more directly                                                               
meets  the intent  of the  maker  of the  amendment. The  10-year                                                               
requirement  in Amendment  1 was  difficult for  several reasons.                                                               
The four-year  requirement is approximately when  the legislation                                                               
started being seriously discussed.                                                                                              
                                                                                                                                
He said  he likes the  family exclusion because, "That's  where a                                                               
lot of these permits go and  shouldn't be considered as a part of                                                               
the limiting factors."                                                                                                          
                                                                                                                                
SENATOR  MICCICHE summarized  that the  amendment works  and does                                                               
not  complicate   lottery  operations   or  sales.  He   said  he                                                               
appreciates that Amendment 2 ties the water and permit together.                                                                
                                                                                                                                
He reiterated that it doesn't  matter which 200 permits sell, but                                                               
the amendment more  clearly lays out how the  buyback works while                                                               
meeting the intent.                                                                                                             
                                                                                                                                
CHAIR  BIRCH   thanked  Commissioner   Putman  from   the  Alaska                                                               
Commercial  Entries  Commission  for submitting  answers  to  the                                                               
questions that came up during the  previous hearing.                                                                            
                                                                                                                                
SENATOR REINBOLD removed her objection to Amendment 2.                                                                          
                                                                                                                                
5:36:20 PM                                                                                                                    
CHAIR BIRCH announced that without further objection, Amendment                                                                 
2 is adopted.                                                                                                                   
                                                                                                                                
5:36:31 PM                                                                                                                    
SENATOR COGHILL moved to report CSSB 90(RES), version 31-                                                                       
LS0230\R   as    amended,   from   committee    with   individual                                                               
recommendations and attached fiscal notes.                                                                                      
                                                                                                                                
CHAIR BIRCH announced that without objection, CSSB 90(RES) moves                                                                
from the Senate Resources Standing Committee.                                                                                   
                                                                                                                                
5:37:06 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
5:39:48 PM                                                                                                                    
CHAIR BIRCH called the committee to back to order.                                                                              
                                                                                                                                
5:40:03 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Birch adjourned the Senate Resources Standing Committee                                                                   
meeting at 5:40 p.m.                                                                                                            

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