04/18/2005 01:30 PM House FINANCE

CS FOR SENATE BILL NO. 93(FIN)                                                                                                
                                                                                                                                
     "An Act relating to commercial fishing permit and                                                                          
     vessel license fees; and providing for an effective                                                                        
     date."                                                                                                                     
                                                                                                                                
CHERYL  SUTTON, STAFF,  SENATOR BEN  STEVENS, explained  that                                                                   
the   bill   addresses   the   commercial   fisheries   entry                                                                   
commission,   which  is  fee-based   funded.    She   related                                                                   
contributing factors  which led up to the bill.   SB 93 would                                                                   
bring  the  state  into compliance  with  recent  rulings  in                                                                   
Carlson v. State of Alaska, raise  the $300 artificial cap on                                                                 
the  base  fee  for annual  permit  renewal  to  $3,000,  and                                                                   
charges a  non-resident fee differential  of $115  only once.                                                                   
She explained vessel license fees  as they are related to the                                                                   
various categories.                                                                                                             
                                                                                                                                
2:55:42 PM                                                                                                                    
                                                                                                                                
FRANK   HOMAN,  COMMISSIONER,   COMMERCIAL  FISHERIES   ENTRY                                                                   
COMMISSION, concurred  with Ms. Sutton's  testimony regarding                                                                   
the need  for the bill.   He noted that the  alternatives are                                                                   
not very good; to seek general funds or to reduce staff.                                                                        
                                                                                                                                
2:56:59 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Stoltze  asked  Commissioner   Homan  if  he  has                                                                   
thought   about   not  filling   a   commissioner   position.                                                                   
Commissioner Homan  responded that the commissioner's  salary                                                                   
at the limited entry commission are set in statute.                                                                             
                                                                                                                                
2:58:24 PM                                                                                                                    
                                                                                                                                
JERRY MCCUNE, UNITED FISHERMEN  OF ALASKA, stated support for                                                                   
the Alaska Commercial  Fisheries Entry Commission  (CFEC) and                                                                   
for the committee substitute for SB 93.                                                                                         
                                                                                                                                
3:00:19 PM                                                                                                                    
                                                                                                                                
Representative Weyhrauch MOVED to ADOPT Amendment 1:                                                                            
                                                                                                                                
     Page 2, lines 21 - 23:                                                                                                     
     Delete all material and insert:                                                                                            
               "(4)  over 75 feet  - 100 feet ............  225                                                                 
               (5)  over 100 feet  - 125 feet ............  300                                                                 
               (6)  over 125 feet  - 150 feet ............  375                                                                 
               (7)  over 150 feet  - 175 feet ............  450                                                                 
               (8)  over 175 feet  - 200 feet ............  525                                                                 
               (9)  over 200 feet  - 225 feet ............  600                                                                 
               (10)  over 225  feet - 250 feet ...........  675                                                                 
               (11)  over 250  feet - 275 feet ...........  750                                                                 
               (12)  over 275  feet - 300 feet ...........  825                                                                 
               (13)  over 300  feet ....................  900."                                                                 
                                                                                                                                
Vice-Chair Stoltze OBJECTED for the purpose of discussion.                                                                      
                                                                                                                                
REPRESENTATIVE PAUL SEATON, spoke  in support of Amendment 1,                                                                   
which  would  break  the fees  into  25-foot  categories  for                                                                   
smaller vessel levels.  It would  generate the same amount of                                                                   
money, but be more appropriate.                                                                                                 
                                                                                                                                
3:02:31 PM                                                                                                                    
                                                                                                                                
In   response   to  a   question   by   Vice-Chair   Stoltze,                                                                   
Representative  Seaton explained that  in the amendment  CFEC                                                                   
addressed his concern that appropriate  charges accompany the                                                                   
appropriate size of vessel.                                                                                                     
                                                                                                                                
3:04:13 PM                                                                                                                    
                                                                                                                                
Ms. Sutton spoke in opposition  to Amendment 1.  She observed                                                                   
that the bill is a compromise  between different areas of the                                                                   
state.                                                                                                                          
                                                                                                                                
Representative Weyhrauch  asked if there were  not some basis                                                                   
for size delineations.                                                                                                          
                                                                                                                                
Ms. Sutton noted that she did  not see the amendment prior to                                                                   
the meeting and the sponsor would not approve of it.                                                                            
                                                                                                                                
3:05:50 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer felt that the amendment has some merit.                                                                          
                                                                                                                                
Representative  Croft  summarized  that  the same  amount  of                                                                   
money  would be  raised, but  that  the fee  would be  tilted                                                                   
toward the larger vessels.  Representative  Seaton noted that                                                                   
the fee would  increase according to the size  of the vessel.                                                                   
The top fee would be $900.                                                                                                      
                                                                                                                                
3:08:18 PM                                                                                                                    
                                                                                                                                
Commissioner   Homan,   provided    information   about   the                                                                   
intention  of the  amendment.   He noted that  CSSB 93  (FIN)                                                                   
provides  a straight  20  percent  increase as  a  compromise                                                                   
between larger  and smaller vessels.   The amendment  changes                                                                   
the amount by  adding more categories, which  spreads out the                                                                   
costs.                                                                                                                          
                                                                                                                                
Mr. Homan explained that there  are more boats in the smaller                                                                   
fee categories.  He expressed  concern that the amendment not                                                                   
jeopardize the legislation.                                                                                                     
                                                                                                                                
3:11:04 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer questioned if the  smaller boats are generally                                                                   
owned by Alaskans  and the larger boats are  owned by out-of-                                                                   
state interests.  Mr. Homan confirmed that idea.                                                                                
                                                                                                                                
SB 93 was HELD in Committee for further consideration.                                                                          
                                                                                                                                
3:13:18 PM                                                                                                                    
                                                                                                                                
At ease.                                                                                                                        
                                                                                                                                
3:17:55 PM