04/15/2010 09:00 AM Senate FINANCE

HOUSE BILL NO. 365                                                                                                            
                                                                                                                                
     "An Act relating to sharing records regarding fish                                                                         
     purchased by fish processors with certain federal                                                                          
     agencies, to requirements to obtain and maintain a                                                                         
     fisheries business license, and to payment of industry                                                                     
     fees required of fish processors; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
SENATOR CHARISSE  MILLETT, SPONSOR, explained that  the bill                                                                    
enables processors  to provide fish tickets  to the National                                                                    
Marine  Fisheries so  the self-imposed  commercial fisheries                                                                    
tax  can  attain  a  $21   million  loan  from  the  federal                                                                    
government.   She    noted   that   the    processors   were                                                                    
uncomfortable with  the amount of $21  million. She referred                                                                    
to  a  Letter of  Intent  in  the  bill that  addresses  the                                                                    
understanding  that the  permit level  would not  fall below                                                                    
260  permits.  She  talked  positively  about  the  buy-back                                                                    
mechanism  and thought  it  would be  a  template for  other                                                                    
fisheries.                                                                                                                      
                                                                                                                                
10:02:52 AM                                                                                                                   
                                                                                                                                
Senator  Olson  asked how  many  total  permits there  were.                                                                    
Senator  Millett  thought  there  were  380.  Total  permits                                                                    
fished last year  were 212. The total bought  back last year                                                                    
was 35. She thought there  were 140 latent permits currently                                                                    
not being fished. Senator Olson  asked how many permits were                                                                    
from out of  state. Senator Millet said there  were 193 non-                                                                    
resident permits and 99 of those were fished last year.                                                                         
                                                                                                                                
Co-Chair Hoffman  asked if there  was a provision  to freeze                                                                    
the value of the permits so  that as more permits are bought                                                                    
the  remaining  do not  escalate  in  cost. Senator  Millett                                                                    
replied that  the bill did  not contain that  provision. The                                                                    
Letter of Intent addresses that potential problem.                                                                              
                                                                                                                                
Senator Thomas  asked if  there was a  requirement to  use a                                                                    
permit  with any  regularity,  or if  it  could sit  unused.                                                                    
Senator Millett  said that permits  were not required  to be                                                                    
used on  a regular  basis. Senator  Thomas pointed  out that                                                                    
there used  to be  consistently 415  permits; now  there are                                                                    
380. He inquired what happened  to those 35 permits. Senator                                                                    
Millett reported that the fisheries  bought back and retired                                                                    
35 permits.                                                                                                                     
                                                                                                                                
Co-Chair Hoffman noted  two zero fiscal notes,  one from the                                                                    
Department of  Revenue and one  from the Department  of Fish                                                                    
and Game, and a Letter of Intent.                                                                                               
                                                                                                                                
HB  365  was  heard  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
10:07:32 AM