1994-07-15                     House Journal                      Page 4505
HB 230                                                                       
The following letter dated June 9, 1994, was received:                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. II, sec. 15, of the Alaska Constitution, I         
have vetoed the following bill:                                                
                                                                               
CS FOR HOUSE BILL NO. 230 (FIN) am S                                          
"An Act relating to fees for a commercial fishing vessel license."            
                                                                               
This bill would have made several changes to fees charged for licenses         
for commercial fishing vessels.  It would have established a                   
progressive schedule so that longer vessels are charged higher fees.  It       
would have significantly increased the overall fees that are collected         
by the state.                                                                  
                                                                               
The problem with this bill is contained in the section which would             
have charged nonresident commercial fishermen twice the vessel                 
license fees that are charged resident fishermen.                              
                                                                               

1994-07-15                     House Journal                      Page 4506
HB 230                                                                       
The state currently has a differential fee for residents and nonresidents      
in connection with limited entry permits.  This differential is presently      
before the courts to interpret its validity and I am concerned that the        
nonresident license differential provided by this bill will negatively         
impact the state's position in the current lawsuit.  In that suit, we are      
defending a three-to-one differential that exists between resident and         
nonresident fishing permit fees.  At stake in this suit are millions of        
dollars that will have to be refunded to nonresident commercial                
fishermen if the state does not prevail.  When differential vessel             
license fees are added to existing nonresident permit fees and there is        
no corresponding increase in the state's expenditures for commercial           
fishery management, our ability to defend the existing permit fee              
differential is substantially weakened.                                        
                                                                               
While I agree that nonresidents should be charged more for their use           
of Alaska's resources, I do not believe it is prudent to increase the          
present differential until the courts finally rule on how much more the        
state may charge them.  Otherwise, we will be jeopardizing our                 
position in a multimillion dollar suit in return for a much smaller gain       
in revenues.                                                                   
                                                                               
There is another reason for vetoing an increase in costs to the                
commercial fishing industry.  This industry is Alaska's largest private        
sector employer.  Each year, it accounts for more than 30,000 jobs and         
millions of dollars of income to Alaskans.                                     
                                                                               
Increased world salmon production has dramatically lowered prices              
paid to fishermen.  Despite their current financial difficulties, Alaska       
fishermen were willing to step up and contribute to fish and game              
management through increased vessel fees.  However, I believe that             
this is not the time to add additional operating costs to this important       
industry.                                                                      
                                                                               
I am therefore vetoing CSHB 230 (FIN) am S.                                    
                                                                               
                                                                               
									Sincerely,                                                            
									/s/                                                                   
									Walter J. Hickel                                                      
									Governor"