Legislature(2005 - 2006)CAPITOL 124

03/22/2006 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 304 COMMERCIAL FISHING LOAN PROGRAM TELECONFERENCED
Moved CSHB 304(FSH) Out of Committee
*+ HB 484 FISHERY ASSOCIATION REIMBURSEMENT TELECONFERENCED
Moved CSHB 484(FSH) Out of Committee
HB 484-FISHERY ASSOCIATION REIMBURSEMENT                                                                                      
                                                                                                                                
9:11:18 AM                                                                                                                    
                                                                                                                                
CO-CHAIR THOMAS announced  that the next order  of business would                                                               
be  HOUSE BILL  NO. 484,  "An Act  allowing for  revenue received                                                               
from issuance of additional entry  permits to be appropriated for                                                               
reimbursement to salmon fishery associations."                                                                                  
                                                                                                                                
9:11:42 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY WILSON,  Alaska State Legislature, testified                                                               
as  prime  sponsor  of  HB  484  paraphrasing  from  the  sponsor                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     In 2002, the Alaska  legislature created salmon fishery                                                                    
     associations   (AS   16.40.250)  to   encourage   fleet                                                                  
     reduction  in  the   Alaska  salmon  fisheries.  Salmon                                                                    
     fishery associations may be  formed in salmon fisheries                                                                    
     throughout  the state  to facilitate  a permit  buyback                                                                    
     program.                                                                                                                   
                                                                                                                                
     HB 484  is a housekeeping  measure to clarify  what may                                                                    
     happen to  the revenue if the  Commercial Fishery Entry                                                                    
     Commission should find it  necessary to sell (re-issue)                                                                    
     permits that  have been relinquished under  the buyback                                                                    
     program authorized under AS 16.40.250.                                                                                     
                                                                                                                                
     Under HB  484 the  legislature may  appropriate revenue                                                                    
     from  the permit  sale  (re-issue)  to the  Association                                                                    
     that paid money  or incurred debt to  remove the permit                                                                    
     from the market in the first place.                                                                                        
                                                                                                                                
     The  state (CFEC)  has  the  responsibility to  monitor                                                                    
     each  limited  entry fishery.  In  the  event the  CFEC                                                                    
     determines more permits are needed  in a salmon fishery                                                                    
     through  an  optimum   number  determination  or  court                                                                    
     action, the provisions of HB 484 would apply.                                                                              
                                                                                                                                
REPRESENTATIVE WILSON  stated that this bill  carries the support                                                               
of the Commercial Fisheries Entry Commissioner (CFEC).                                                                          
                                                                                                                                
9:13:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  moved  to  adopt CSHB  484,  Version  24-                                                               
LS1693\G, Kane,  2/15/06.   There being  no objection,  Version G                                                               
was before the committee.                                                                                                       
                                                                                                                                
9:14:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON explained  that  the committee  substitute                                                               
stipulates  that the  fisheries  association  which provided  the                                                               
original buy-back is the association that receives the payback.                                                                 
                                                                                                                                
REPRESENTATIVE ELKINS stated his  understanding that the original                                                               
intent of the bill has  not changed, and he received conformation                                                               
to that end from the sponsor.                                                                                                   
                                                                                                                                
9:14:46 AM                                                                                                                    
                                                                                                                                
FRANK  HOMAN, Chairman/Commissioner,  Commercial Fisheries  Entry                                                               
Commission (CFEC), stated support for  HB 484, and explained that                                                               
this  came up  through  a  situation with  one  of the  fisheries                                                               
associations.  He said that the  state, through the office of the                                                               
CFEC,  retains  the  ability  to   monitor  all  of  the  limited                                                               
fisheries, and at  sometime, either through in-house  review or a                                                               
court decision, would be required  to sell more permits back into                                                               
a  fishery.    The  CFEC  did not  want  to  have  the  fisheries                                                               
associations disadvantaged because they  borrowed funds to have a                                                               
private  buy-back, thus  putting  them in  a debt  responsibility                                                               
situation, and hence put them at odds with state permit actions.                                                                
                                                                                                                                
9:16:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  asked  why   this  applies  only  if  the                                                               
association is still carrying debt.                                                                                             
                                                                                                                                
COMMISSIONER  HOMAN  clarified  that  it  could  apply  to  money                                                               
expended or debt carried.                                                                                                       
                                                                                                                                
9:16:22 AM                                                                                                                    
                                                                                                                                
BOB THORSTENSON, Lobbyist,  Southeast Alaska Seiners Association;                                                               
President, United  Fishermen of  Alaska, stated support  for this                                                               
bill from both  the groups that he  represents, highlighting that                                                               
this  seemingly  simple housekeeping  bill  has  had a  "chilling                                                               
effect" on the fishing industry for decades.                                                                                    
                                                                                                                                
9:17:22 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ELKINS  moved to  report  CSHB  484, Version  24-                                                               
LS1693\G,  Kane,  2/15/06,  out   of  committee  with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB 484(FSH) was so moved.                                                                                       

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