Legislature(2001 - 2002)
05/02/2002 10:41 AM Senate RLS
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ALASKA STATE LEGISLATURE
SENATE RULES COMMITTEE
May 2, 2002
10:41 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chair
Senator John Cowdery, Vice Chair
Senator Rick Halford
Senator Gene Therriault
Senator Johnny Ellis
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
SENATE BILL NO. 191
"An Act relating to insurance pooling by members of an airline
employers association."
APPROVED FOR CALENDARING
SENATE CONCURRENT RESOLUTION NO. 33
Relating to Ovarian Cancer Awareness Month.
APPROVED FOR CALENDARING
CS FOR HOUSE BILL NO. 160(JUD)
"An Act requiring the reporting of induced terminations of
pregnancies."
APPROVED FOR CALENDARING
CS FOR HOUSE BILL NO. 206(RLS)
"An Act relating to a vessel-based commercial fisheries limited
entry system for the Bering Sea Korean hair crab fishery and for
weathervane scallop fisheries, to management of offshore
fisheries, and to the definition of 'person' for purposes of the
commercial fisheries entry program; and providing for an
effective date."
HEARD AND HELD
HOUSE BILL NO. 262
"An Act relating to accounting for and appropriations of receipts
from fees collected by the Department of Labor and Workforce
Development for certain inspections and for certain plumbing and
electrical worker certificates of fitness; establishing a
building safety account; and providing for an effective date."
HEARD AND HELD
SENATE CONCURRENT RESOLUTION NO. 36
Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of
the Alaska State Legislature, concerning House Bill No. 262,
relating to accounting for and appropriations of receipts from
fees collected by the Department of Labor and Workforce
Development for certain inspections and for certain plumbing and
electrical worker certificates of fitness, establishing a
building safety account, and providing for an effective date.
SCHEDULED BUT NOT HEARD
CS FOR HOUSE BILL NO. 352(HES) am
"An Act extending the dates for assignment of performance
designations of public schools and the dates for reports and
monitoring based on those designations; and providing for an
effective date."
APPROVED FOR CALENDARING
CS FOR HOUSE BILL NO. 455(CRA)
"An Act relating to the assessment of certain agricultural land
for purposes of municipal taxation; and providing for an
effective date."
APPROVED FOR CALENDARING
CS FOR HOUSE BILL NO. 508(RLS)
"An Act relating to results of testing for paralytic shellfish
poisoning and to participation of the Department of Environmental
Conservation in the development of operating plans of qualified
regional dive fishery development associations."
APPROVED FOR CALENDARING
CS FOR HOUSE JOINT RESOLUTION NO. 47(RLS)
Urging the United States Environmental Protection Agency and the
Alaska Department of Environmental Conservation to provide
maximum possible flexibility in application of ultra low sulfur
diesel fuel requirements to Alaska.
APPROVED FOR CALENDARING
HOUSE CONCURRENT RESOLUTION NO. 23
Proposing amendments to Uniform Rule 20 of the Alaska State
Legislature; and providing for an effective date for the
amendments.
HEARD AND HELD
PREVIOUS SENATE COMMITTEE ACTION
SB 191 - See Labor and Commerce minutes dated 4/17/01
4/24/01 and 5/1/01, Judiciary minutes dated 5/4/01 and 5/5/01.
SCR 33 - No previous action to record.
SCR 36 - See Rules minutes dated 4/30/02.
HB 160 - See HESS minutes dated 4/15/02 and Finance Report dated
5/1/02.
HB 206 - See Resources minutes dated 3/20/02, 4/17/02 and 4/24/02
and Judiciary minutes dated 4/29/02.
HB 262 - See Labor and Commerce minutes dated 3/21/02, State
Affairs minutes dated 4/2/02, Finance Report dated 4/18/02 and
Rules minutes dated 4/29/02 and 4/30/02.
HB 352 - See HESS minutes dated 4/24/02.
HB 455 - See CRA minutes dated 4/17/02 and Resources minutes
dated 4/24/02.
HB 508 - See Resources minutes dated 4/29/02.
HJR 47 - See Resources minutes dated 4/29/02.
HCR 23 - See Rules minutes dated 5/01/02.
WITNESS REGISTER
Ms. Amy Erickson
Staff to Representative Murkowski
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Objected to both committee substitutes to HB
262
Dr. Mark Leal
Department of Education &
Early Development
th
801 W 10 St.
Juneau, AK 99801-1894
POSITION STATEMENT: Answered questions HB 352
Mr. John Manley
Staff to Representative Harris
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Answered questions on HB 455
Ms. Mary McDowell
Commercial Fisheries Entry Commission
8800 Glacier Highway
Juneau, AK 99801
POSITION STATEMENT: Explained the provisions of HB 206
ACTION NARRATIVE
TAPE 02-11, SIDE A
Number 001
CHAIRMAN RANDY PHILLIPS called the Senate Rules Committee meeting
to order at 10:41 a.m. Senators Cowdery, Halford and Phillips
were present.
SENATOR COWDERY moved to calendar at the Chairman's discretion SB
191-JOINT AVIATION INSURANCE ARRANGEMENTS with its zero fiscal
note.
CHAIRMAN PHILLIPS noted that with no objection, the motion
carried.
SENATOR HALFORD moved to calendar at the Chairman's discretion
SCR 33-OVARIAN CANCER AWARENESS MONTH with its zero fiscal note.
CHAIRMAN PHILLIPS noted that with no objection, the motion
carried.
SENATOR HALFORD moved to calendar at the Chairman's discretion HB
160-REPORTING OF ABORTIONS with any accompanying fiscal notes and
asked for unanimous consent.
CHAIRMAN PHILLIPS announced that Senator Therriault was present.
He then noted that with no objection, the motion carried.
CHAIRMAN PHILLIPS announced that HB 206 would be put at the
bottom of today's calendar.
CHAIRMAN PHILLIPS asked to hear from Representative Murkowski's
staff about her wishes in regard to HB 262-BUILDING SAFETY
ACCOUNT.
MS. AMY ERICKSON, staff to Representative Murkowski, informed
members that Representative Murkowski maintains her objection to
either proposed committee substitute.
SENATOR THERRIAULT asked if Representative Murkowski has talked
to the co-chairs of the House Finance Committee.
MS. ERICKSON said she has and, in fact, they caucused about this
very issue last night.
CHAIRMAN PHILLIPS said he would hold HB 262 and SCR 36 in
committee.
CHAIRMAN PHILLIPS announced the committee would hear HB 352-
SCHOOL PERFORMANCE REPORTS and asked a representative of the
Governor's Office to present the bill.
SENATOR HALFORD asked why the Department of Education and Early
Development (DOEED) wants to extend the implementation date of
the school designator program.
DR. MARK LEAL, DOEED, said that DOEED is requesting an extension
of implementation of the school designators for two reasons.
First, DOEED wants to be able to calculate growth. The designator
committee that has been working on this issue for two years
wanted to be sure to include measures of both status and growth.
Second, the federal "No Child Left Behind Act," was passed last
December and requires DOEED to seek further direction from the U.
S. Department of Education to make sure that Alaska's system will
align with the requirements of that act.
SENATOR THERRIAULT asked if the delayed date will align the
school designators date with the exit exam date.
DR. LEAL agreed and said the 2004 date aligns it with the high
stakes portion of the exit exam.
SENATOR THERRIAULT asked if the House bill and Senate bills were
aligned in the Senate HESS Committee.
DR. LEAL say they were and that many of the items discussed are
items that will now be handled through regulation.
SENATOR HALFORD noted the original bill contained a two-year
extension but the House HESS Committee decreased it to one year.
He asked if the two-year extension was reinstated with a floor
amendment.
DR. LEAL explained that the House adopted an amendment on the
floor to reinstate the original 2004 date.
SENATOR HALFORD asked if this bill was heard by the Senate HESS
Committee and whether committee members objected to the 2004
date.
DR. LEAL said it was heard by the Senate HESS Committee and that
no one objected to the 2004 date.
SENATOR THERRIAULT moved to calendar at the Chairman's discretion
CSHB 352(HES)am and its accompanying fiscal note.
CHAIRMAN PHILLIPS announced the committee would take up HB 455-
MUNICIPAL TAXATION OF AGRICULTURAL LAND.
MR. JOHN MANLEY, staff to Representative Harris, explained to
members that HB 455 accomplishes two things. Right now,
agricultural land is assessed at the full and true value for fee
simple land. As land sells in the vicinity of agricultural-
restricted land, values go up because it is subdivided.
Agricultural restricted land cannot be used for any other use. HB
455 exempts state restricted agricultural lands from an existing
requirement that the owner apply each year for an assessment and
that the assessment be for the full and true value of the
restricted use only.
SENATOR HALFORD pointed out the bill has a zero fiscal note and
does what he assumes the state would do anyway.
SENATOR HALFORD moved to calendar at the Chairman's discretion HB
455 with the accompanying fiscal note.
CHAIRMAN PHILLIPS noted that with no objection, the motion
carried.
The committee took up HB 508-DIVE FISHERY ASSOCIATIONS/PSP
REPORTS.
SENATOR HALFORD moved to calendar at the Chairman's discretion HB
508 with its accompanying fiscal note.
CHAIRMAN PHILLIPS noted that with no objection, the motion
carried.
SENATOR HALFORD moved to calendar at the Chairman's discretion
HJR 47-LOW SULFUR DIESEL FUEL REQUIREMENTS with its accompanying
zero fiscal note.
CHAIRMAN PHILLIPS noted that with no objection, the motion
carried.
CHAIRMAN PHILLIPS announced that HCR 23-LEGISLATIVE
COMMITTEES:SPLIT HOUSE HESS was before the committee and unless a
member makes a motion to pass it from committee, he will hold it.
SENATOR THERRIAULT informed members that Representative Bunde's
staff provided him with a 2-page memo describing the measure and
that he has not had a chance to read it.
CHAIRMAN PHILLIPS announced that HCR 23 would be held in
committee.
CHAIRMAN PHILLIPS announced the committee would take up HB 206-
LIMITED ENTRY FOR COMM. FISHERIES and asked for an explanation of
the measure.
MS. MARY MCDOWELL, Commercial Fisheries Entry Commission (CFEC),
told members that HB 206 is the result of a 1996 legislative
directive to place a moratorium on vessels in the Korean hair
crab fishery. The legislature directed the CFEC to work with the
Department of Law (DOL) to draft legislation that would create a
vessel-based limited entry program that could be used in
fisheries that can't be affected under the current program. Those
fisheries do not have the characteristics of the fisheries
normally limited by the state. The vessels are not owner
operated, they are large and use multiple skippers. CFEC was
originally directed by the legislature to draft legislation that
is generic and would create an alternative program that could be
used for fisheries with those characteristics. However, when the
bill was heard in the House Resources Committee, it was
considered to be very controversial. People were concerned about
diverging from the current program and creating a generic tool
for future fisheries. At that point, the House Resources
Committee narrowed the scope of the legislation to say the only
fisheries this new tool could be applied to are the Korean hair
crab fishery and the weathervane scallop fishery, the two large
boat fisheries that the state is immediately faced with having to
limit. The legislature imposed vessel based moratoria in both of
those fisheries. HB 206 will provide CFEC with a tool to deal
with those fisheries before they return to open access at the
expiration of the moratoria. The hair crab moratorium expires in
July of 2003 so CFEC needs legislation to pass this session to
have this tool available.
SENATOR HALFORD asked why it must pass this session.
MS. MCDOWELL explained that in order to enact a limitation in a
fishery, CFEC will have to propose a limitation system and put it
out in the form of a regulatory proposal and provide for a 60 day
public notice period. If HB 206 doesn't pass until next session,
CFEC will not have time to do that before the moratorium is
lifted.
SENATOR HALFORD asked when the season for Bering Sea hair crab
begins.
MS. MCDOWELL said it begins in November.
SENATOR HALFORD maintained that CFEC would have time to develop
regulations before the season.
MS. MCDOWELL said that part of the problem is that once the
moratorium expires, people are eligible to apply for an interim
use permit for the calendar year before CFEC restricts who is
eligible. CFEC has been involved in lawsuits about the effective
date in the past so it feels it is up against a deadline.
CHAIRMAN PHILLIPS suggested holding the bill for 24 hours.
SENATOR HALFORD said that both sides of this conflict have a
legitimate argument. The legislature directed CFEC to place a
vessel-based - not individual based - moratoria on those
fisheries. He said this is the one place in the system where some
kind of a business ownership permit is being created, rather than
an individual permit. The point he has argued is that he does not
want to create any new permits with any value. He is not
unwilling to create new permits, but if those permits are
transferable for value, the state has created an artificial value
that comes down on the fishery. He noted there are very few hair
crab or scallop vessels, but this method will set a precedent.
Senator Halford said he thought Representative Scalzi planned to
talk to Ms. McDowell about another permutation and asked if she
spoke to him recently.
MS. MCDOWELL said he talked to her several days ago about the
possibility of coming up with a method of non-transferability.
She said she explained to him that CFEC would have to come up
with a new method of transferring new permits whereby permits
would have to revert to CFEC and be redistributed through a
lottery or some similar method. She noted that would be risky for
the current program because permits would leave the hands of
Alaskans. She pointed out that 30 to 40 percent of all permits
now change hands by gift rather than sale because they change
hands within families. That would be less applicable to vessel
permits.
SENATOR HALFORD asked if you could get them out with no notice in
February in the community closest to where the permit is fished.
MS. MCDOWELL said that interstate commerce issues come into play.
SENATOR HALFORD maintained that it is difficult to come up with a
method that avoids a value in the permits and that he is not
against the particular fishery.
MS. MCDOWELL acknowledged that this issue has had many, many
hearings.
CHAIRMAN PHILLIPS noted the purpose of this hearing is to
schedule.
SENATOR THERRIAULT said he has a concern similar to Senator
Halford's in that he has always been bothered by the value that
is placed on the right to take the collective resource.
CHAIRMAN PHILLIPS noted he will hold HB 206 in committee for 24
hours.
SENATOR HALFORD said he believes there is a better method but it
will require a lot of work and no one is better qualified to
figure out that method than CFEC. He said the legislature has
discussed this question over and over and now the moratoria are
going to run out. He indicated that it may be difficult to come
up with a process other than a cash transfer but it is not
impossible. As a matter of policy, it would be the right
direction to go in. He said he does not want to participate in
creating new permits for value because that debt load represents
half of the load the fisheries are dealing with today.
SENATOR THERRIAULT asked if the moratoria can be extended.
MS. MCDOWELL said this one has been extended already and that
CFEC will run into another constitutional problem if it continues
to extend it. The moratorium has created an exclusive class so
that those people are locked in with no opportunity to exchange
permits. Extending the moratorium indefinitely is problematic as
well.
SENATOR TAYLOR indicated that he has been working on this issue
for about four years and said that part of the frustration is
that the legislature suppressed this question with each of the
moratoriums and in fact gave direction to the CFEC. He said he
agrees with Senator Halford on the value issue but he would hate
to see this very small and unique fishery remain closed because
no answer has been found yet.
SENATOR HALFORD said the issue raises two questions: one is in
regard to the fact that the permits are not individually owned,
which was mandated by the legislature; the other is
transferability.
MS. MCDOWELL pointed out that because the bill has been
dramatically narrowed, it creates a less sweeping policy call
than it might have been if it was a generic bill.
CHAIRMAN PHILLIPS announced that he would hold the bill until the
next meeting. He then adjourned the meeting at 11:04 a.m.
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