04/29/2004 12:27 PM House FIN

SENATE BILL NO. 315                                                                                                           
                                                                                                                                
     An Act relating to the administration of commercial                                                                        
     fishing entry permit buy-back programs.                                                                                    
                                                                                                                                
CHERYL  SUTTON,  JOINT  LEGISLATIVE  SALMON  INDUSTRIES  TASK                                                                   
FORCE,  SENATOR  BEN STEVENS,  stated  that  SB 315  was  the                                                                   
Senate companion  to HB 410.   It is precisely the  same bill                                                                   
as HB 410.  There have been no  amendments on the Senate side                                                                   
and  it passed  the  Senate  unanimously.   SB  315  modifies                                                                   
existing  law governing  buy-back programs.   It would  allow                                                                   
the Commercial  Fisheries Entry Commission to  "front fund" a                                                                   
buy-back  program if  an appropriation  were  received.   The                                                                   
commission would  then continue to collect funds  through the                                                                   
designated  rate of  assessment  in the  buy-back program  to                                                                   
"pay  back"  the  indebtedness.   She  added  that  when  the                                                                   
optimum number  of permits is  reached in a buy-back  and the                                                                   
reasonable  costs   of  the  program   have  been   met,  the                                                                   
Commission  would terminate  the assessment  in the  affected                                                                   
fishery.   SB 31 will make  the administration of  a buy-back                                                                   
program more workable.                                                                                                          
                                                                                                                                
Representative  Chenault asked  about  current law  buy-backs                                                                   
contained in the bill analysis.                                                                                                 
                                                                                                                                
FRANK   HOMAN,  COMMISSIONER,   COMMERCIAL  FISHERIES   ENTRY                                                                   
COMMISSION,   explained  that   current  law   is  that   the                                                                   
Commercial  Fisheries  Limited  Entry Commission,  after  the                                                                   
determination  of the  outcome  number and  when that  number                                                                   
indicates  too  many  permits  in  the  fishery,  a  buy-back                                                                   
program could  be established.   That language is  already in                                                                   
the fish  law.  It could  increase to 7%,  up to 1  through 7                                                                   
depending  on how  much  money  is needed  for  the buy  back                                                                   
program.                                                                                                                        
                                                                                                                                
Representative  Chenault asked if  it would be  voluntary, or                                                                   
would  the commission  make the  determination regarding  the                                                                   
optimum  number.   Mr.  Homan responded  that  it would  come                                                                   
about through the interaction with the fishing community.                                                                       
                                                                                                                                
Representative Chenault  pointed out that was  a concern with                                                                   
commercial  fishermen in his  area whether  or not  they were                                                                   
interested  in  a  buy-back.   These  fishermen  want  to  be                                                                   
"heavily  involved in  that process".    Mr. Homan  responded                                                                   
that there would be a public hearing process.                                                                                   
                                                                                                                                
DON   BREMNER,   CENTRAL  COUNCIL   BUSINESS   AND   ECONOMIC                                                                   
DEVELOPMENT,  JUNEAU,  voiced   opposition  to  the  proposed                                                                   
legislation.   He noted handouts  that support  his position.                                                                   
(Copy on  File).  Mr.  Bremner pointed  out that there  is no                                                                   
justification  or complete analysis  for the legislation  and                                                                   
how the  buy backs would affect  the fishermen.  He  spoke to                                                                   
finding  solutions   experienced  by  the  fishermen.     The                                                                   
fishermen  want to find  options.    Mr. Bremner  recommended                                                                   
that the State  should be looking at adding  back permits for                                                                   
the rural  communities, as it  is the only resource  for many                                                                   
of them.  He  reiterated that strong enough  reasons have not                                                                   
been addressed.                                                                                                                 
                                                                                                                                
Mr.  Bremner  noted  that  the Central  Council  sent  out  a                                                                   
proposal to  Senator Elton and  Senator Stevens  requesting a                                                                   
further look at  the proposal.  The proposal  suggests that a                                                                   
complete analysis  be performed of  the buy back  and limited                                                                   
entry systems.   He  did not know  how the legislation  would                                                                   
affect  the prices  to  the fishermen.    He reiterated  that                                                                   
special attention needs to be given to rural communities.                                                                       
                                                                                                                                
Mr.  Bremner  suggested that  the  permit  banks would  be  a                                                                   
better idea  for taking care  of future generations  and then                                                                   
they  would not  have  to come  back  to the  Legislature  to                                                                   
address these concerns.   Ms. Sutton commented  that the bill                                                                   
does not establish or promote any buy back.                                                                                     
                                                                                                                                
Representative Chenault  noted that he had no  fiscal note in                                                                   
his file.  Ms. Sutton said that was correct.                                                                                    
                                                                                                                                
Representative  Foster   MOVED  to  report  SB   315  out  of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
fiscal note.                                                                                                                    
                                                                                                                                
Mr. Homan  pointed out that  there was  a zero note  and that                                                                   
there would  be no  buy back and  that could  be used  if the                                                                   
State ever got  to that point.  The only thing  the bill does                                                                   
at this  time, is  indicate that  there could  be a  buy back                                                                   
program if there  was an opportunity to get  up-front funding                                                                   
from some  source, then the  legislation would allow  that to                                                                   
happen rather than waiting for years to accumulate an                                                                           
assessment.                                                                                                                     
                                                                                                                                
Representative Stoltze commented that there are options and                                                                     
that when the bill gets to the House floor, discussions                                                                         
should be made regarding these concerns.                                                                                        
                                                                                                                                
There being NO OBJECTION, SB 315 was reported out of                                                                            
Committee with a "do pass" recommendation and with zero note                                                                    
#1 by the Department of Fish & Game.