Legislature(2007 - 2008)HOUSE FINANCE 519
04/06/2008 04:00 PM House FINANCE
Audio | Topic |
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Start | |
SB254 | |
HB314 | |
HB106 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | HB 106 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
+= | HB 422 | TELECONFERENCED | |
+= | HB 314 | TELECONFERENCED | |
+= | SB 254 | TELECONFERENCED | |
SENATE BILL NO. 254 "An Act extending the termination date of the Alaska regional economic assistance program; and providing for an effective date." Vice-Chair Stoltze MOVED to ADOPT HCS SB 254(FIN), labeled 25-LS1367\E, as the work draft before the Committee. There being NO OBJECTION, it was so ordered. Representative Nelson informed the Committee that there was a change in the bill to include hair crab fisheries. FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISSION, offered to provide additional information about the bill. Representative Nelson reported that the addition to the bill would extend the life of the hair crab fisheries along the west coast of Alaska. Mr. Homan said that was correct. In addition, it extends the scallop fisheries. The two fisheries are unique in that they are vessel based license systems. Representative Nelson said her understanding is that those two fisheries alone have 4 out of 18 permit holders that are owned by Community Development Quota (CDQ) groups. Mr. Homen thought that was correct. Representative Nelson asked how many permit holders from Alaska are in the limited entry system. Mr. Homen responded that there are about 15,000 limited entry permits and 78 percent are from Alaska. Representative Nelson asked if there were about 10,000. Mr. Homan thought it was more like 11,000. Representative Nelson estimated that from the two CDQ's that are owners in the hair crab and scallops fisheries, the Coastal Village Region Fund has about 20 villages and about 9,000 people, and Norton Sound has fewer villages but about 8,500 people. Just in those 4 permit holders, the owners of the permits total about 17,000 residents of Alaska. She stated that the CDQ's are not Native programs. She saw the CDQ's with their community shareholders as positive for communities. 4:47:21 PM Representative Thomas asked how corporations can hold permits when it is prohibited throughout the whole limited entry permit system. Mr. Homan clarified that the vessel- based program is unique. In 2002, the legislature passed a bill allowing the two fisheries to have different systems. The limited entry system was designed around the salmon fisheries with an individual owner. Vessel-based limited entry fisheries are managed differently. They are large boats with multiple crews and skippers. The traditional method could not be used. Sometimes the vessels are owned by corporations made up by two or three individuals, due to the expense of getting into these two fisheries. They require a different financial structure. There is no intention of moving the vessel-based system to any other fishery. Representative Thomas thought the doors would be opened when the rules change. He voiced concern about the process. He related that he fought the limited entry program so that no corporation would ever own the permits. Mr. Homan related that the legislature in 2002 made that allowance and it would require legislation to change it. Representative Thomas reiterated his concerns. He suggested consolidating or releasing more permits. He said the usual route is through the Board of Fish. Mr. Homan recalled that in 2002 the legislature did recognize consolidation. No vessel owner could own more than two permits. 4:53:21 PM Vice-Chair Stoltze pointed out that the bill would extend the termination date of the Alaska Regional Economic Assistance Program. Representative Nelson said in addition to extending the termination date, there are 18 hair crab permits and 19 scallop permits. In the 18 crab permits, there are 250 quota holders. She inquired if the fishery were abolished, if all of those quota holders would be able to come in and fish that resource. Mr. Homan confirmed that to be true for both fisheries; both would return to open access. Representative Nelson said that is of great concern because of the potential loss of revenue to Alaskan permit holders. Representative Nelson commented that the fishery is also needed to prevent over fishing. Mr. Homan added that the resource is fragile and the fishery very small. If it is opened to unlimited harvest, restrictions will need to be applied. Representative Nelson asked if the other 14 permit holders are from across the state, in addition to the 4 CDQ's. Mr. Homan replied that it is a mixture of Alaskans and non- residents. Representative Nelson thought there were permit holders from Southeast Alaska as well as from the Interior and South Central Alaska. Mr. Homan said that was correct. 4:57:05 PM Representative Gara asked for an explanation of the hair crab and scallop fisheries. Mr. Homan explained the history of the two fisheries. The Department of Fish and Game put restrictions on the fisheries, requiring a vessel license, in 2002. Representative Gara asked how long the extension is for. Mr. Homan said 5 years. Representative Gara asked if, when it lapses, it becomes a permit fishery again. Mr. Homan explained that the sunset allows revisiting the issue. Representative Gara asked if the bill would limit additional vessels. Mr. Homan said that is correct. He recalled testimony by Fish and Game that regulation of the fisheries would be increased if the bill does not pass. 5:01:11 PM Representative Thomas recalled during the time of statehood and the intent to abolish fish traps owned by non-Alaskan corporations back then. Limited entry was developed very carefully to ensure that corporations were not able to own permits. Representative Nelson thought that if there was open and unlimited access to the fisheries, it would be more expensive to manage them. She reported that there was also a possibility that they would be managed by the federal government. One of the purposes of statehood was to ensure state management of fish and game resources. Alaska has already lost management of resources on federal land. Losing limited entry will make Alaska vulnerable to more federal management. Mr. Homan related that the federal government also limits these fisheries in the federal fishery zone; however, the state manages both fisheries in all waters. If it goes back to open access there would be two management systems. Representative Nelson noted support for the bill from the Department of Fish and Game and from United Fishermen of Alaska. North Pacific Management Council and the Commercial Fisheries Entry Commission (CFEC) also support this legislation. Mr. Homan concurred that all prominent fisheries support the bill. Representative Kelly asked if the sunset date was expected to be extended. Mr. Homan said it was, and he related the history of another bill that was supposed to extend the termination date, but failed. Representative Kelly asked if everyone in the area supports the bill. Mr. Homan reported that it is generally supported. A few oppose it because they think it is going to do something else. They are uneasy with consolidation. Representative Kelly asked what would happen to protect the resource if it was not extended. Mr. Homan replied that Department of Fish and Game said they would initiate more restrictive policies toward the two fisheries. He said the Commission would not be able to extend any limitation if the bill does not pass. 5:09:05 PM Vice-Chair Stoltze wondered if a five-year sunset was long enough or if a sunset was even needed. Representative Nelson thought a sunset was not needed. She noted that it has been proven that the resources are rebounding and the fisheries are bringing dollars to Alaska's coffers. She worried that a new chairman of fisheries might change the termination date of the sunset in the future. Mr. Homan related that the original intention of the bill was to not have a sunset date. Representative Gara thought the conservation aspect was working. Representative Thomas said he does not like the bill but also did not think it needed a sunset. Vice-Chair Stoltze noted the title restrictions. He suggested a 10-year extension. 5:14:05 PM Representative Kelly said he was uncomfortable with changing the sunset date, but liked the bill. Representative Gara thought there was not a good option surrounding the sunset issue. He did not think that getting rid of the sunset was any worse a solution. Vice-Chair Stoltze said eliminating the sunset is not an option in this bill. Representative Kelly thought he could agree to the 10-year option. 5:16:40 PM Vice-Chair Stoltze MOVED to ADOPT Conceptual Amendment 1 to extend the vessel permit portion of the bill to 2018. Representative Hawker OBJECTED. He clarified that the amendment would apply to Section 2 of the bill. Representative Gara requested that Representative Nelson be added as a sponsor of the bill. Representative Nelson was added as a sponsor. Representative Hawker WITHDREW his OBJECTION to Conceptual Amendment 1. There being NO OBJECTION, it was so ordered. Co-Chair Chenault reviewed the fiscal notes. He noted a need for a new fiscal note from the Department of Fish and Game. Mr. Homan said a new zero fiscal note from the Commercial Fisheries Entry Commission would be forthcoming. 5:20:19 PM Representative Foster MOVED to REPORT HCS SB 254(FIN), as amended, out of Committee with individual recommendations, a title change resolution, and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HCS SB 254(FIN) was REPORTED out of Committee with a "do pass" recommendation, a title change resolution, a new zero fiscal note by the Department of Fish and Game, and with two previously published fiscal notes by the Department of Commerce, Community and Economic Development. AT-EASE: 5:21:41 PM RECONVENED: 5:37:28 PM
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