Legislature(2005 - 2006)BELTZ 211
02/15/2005 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB64 | |
| HB47 | |
| SB93 | |
| SB52 | |
| SB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 100 | TELECONFERENCED | |
| + | HB 64 | TELECONFERENCED | |
| + | HB 47 | TELECONFERENCED | |
| *+ | SB 93 | TELECONFERENCED | |
| = | SB 52 | ||
SB 93-FISHING PERMIT AND VESSEL LICENSE FEES
CHAIR CON BUNDE announced SB 93 to be up for consideration.
CHERYL SUTTON, staff to Senator Ben Stevens, sponsor of SB 93,
explained that the Commercial Fisheries Entry Commission (CFEC)
receives no general funds, has been on a downward trend in
revenue and will continue like that under the current fee
structure. Some of the contributing factors are the Carlson v.
Alaska case, the decline in value of certain fisheries and the
consolidation of various fisheries.
SB 93 would bring the state into compliance with rulings in
Carlson v. State of Alaska, a class action brought against the
state by non-resident fishermen who claimed that the fee
structure was not lawful. The state had charged a 3 to 1 fee
differential for non-residents. The court agreed that the fees
could not be established in this manner and issued a mandated
formula that is now calculated by the Office of Management and
Budget (OMB).
CHAIR BUNDE asked for her indulgence to step aside for a moment.
SB 93-FISHING PERMIT AND VESSEL LICENSE FEES
MS. SUTTON resumed her testimony on SB 93. The major component
of SB 93 is removal of the $300 cap for annual permit renewal
currently in statute. It is an artificial cap because the
statute states that the base fee must reasonably reflect the
different rates of economic return for different fisheries. The
cap results in fisheries with a very high economic return being
charged fees that are disproportionately low. She explained that
the CFEC would develop fees through a public hearing process.
Individuals who qualify for a poverty fee would still be
required to pay the full non-resident fee differential.
1:54:28 PM
She said that vessel license fees are also addressed in this
bill. A modest modification is proposed to the six vessel length
categories and the fees are raised by $15, $30, $45, $60, $75
and $90 respectively. She pointed out that the fee structure had
not been amended since 1995.
1:55:04 PM
MR. FRANK HOHMAN, Commissioner, CFEC, agreed with Ms. Sutton's
testimony. The Carlson case is a factor in CFEC's decline in
revenues and lower values of fishery permits along with
consolidation of fishing fleets in federal and state waters
lowering the values of fishery permits upon which the fees are
based. There is a reduction in the number of permits that are
purchased and the non-transferable permits, which are held until
the permit holder dies are retired. He estimated that in FY'06
the commission would not be able to cover its budget by
generating revenues alone. The new fee structure will help for a
few more years.
1:57:15 PM
The $300 cap for lesser value fisheries might have only a modest
increase, but higher value fisheries will fall into position on
the fee schedule. The formula is calculated as .04% of the value
of the permit, which won't be held down artificially.
1:58:12 PM
CHAIR BUNDE asked if the non-resident who qualified for the
poverty fee would still pay the non-resident differential, $115
this year.
1:58:51 PM
MR. HOHMAN replied that is correct, but it applies to only 20 or
so people. A resident also can claim a poverty fee, which is
half of the base fee, but his taxes have already paid for the
differential.
2:00:04 PM
CHAIR BUNDE mused that it seemed a contradiction of terms to
have a non-resident come to Alaska to fish, but then claim
poverty.
2:00:45 PM
MR. AL BURCH, Alaska Draggers Association, Kodiak, supported SB
93. His problem was with the proposed methodology for
implementing it. He represents 45 trawlers in the Gulf that also
do halibut long lining. As trawlers, their fees would go from
$300 to $3,975. As long liners, they would go from $300 up to
$1,500. His little trawlers that might gross $200,000 per year
are being lumped in with the super trawlers in the Bering Sea
that might do over $30 million per year. The fee structure is
not equitable as it is now; however he is not adverse to a
reasonable fee increase.
CHAIR BUNDE said he would hold the bill over for Senator Ben
Stevens' insights.
2:03:41 PM
MR. HOHMAN commented on the issue of small boats that get caught
up with large boats. If the bill passed with the fee cap
removed, CFEC regulation would establish fee classes through a
public hearing process. If classes were not proper for small
boats, he would be happy to make an amendment. It was never an
issue with a $300 cap, which is small enough to not matter.
CHAIR BUNDE said the bill would be held.
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