Legislature(1999 - 2000)

04/21/1999 01:11 PM House RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
HB 104 - ENTRY MORATORIA ON PARTICIPANTS/VESSELS                                                                                
                                                                                                                                
Number 1036                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN announced that the final item of business would be                                                                
House Bill No. 104, "An Act revising the procedures and authority                                                               
of the Alaska Commercial Fisheries Entry Commission, the Board of                                                               
Fisheries, and the Department of Fish and Game to establish a                                                                   
moratorium on participants or vessels, or both, participating in                                                                
certain fisheries; and providing for an effective date."  The bill                                                              
had been heard previously. [Before the committee was CSHB
104(FSH).]                                                                                                                      
                                                                                                                                
Number 0996                                                                                                                     
                                                                                                                                
BRENNON EAGLE testified via teleconference from Wrangell.  Noting                                                               
that he has testified in support of this legislation over the past                                                              
couple of years, he emphasized the importance of giving this power                                                              
to the Commercial Fisheries Entry Commission (CFEC).  He has been                                                               
through a convoluted entry process with the Southeast pot shrimp                                                                
fishery, he advised members, which ended up with quite a few more                                                               
people in the fishery than had historically participated, because                                                               
the CFEC had to announce limited entry for the fishery prior to                                                                 
closing it.  Anyone who participated during that small window of                                                                
time was eventually allowed into the fishery, he noted, although                                                                
since limited entry, those people have not participated.  He                                                                    
believes the CFEC has been stuck with a poor process, which the                                                                 
power to do a moratorium would have alleviated.                                                                                 
                                                                                                                                
MR. EAGLE noted that this allows the CFEC to choose different                                                                   
dates, which he believes is a very good addition.  However, he                                                                  
believes it would be a poor decision to disallow transferability of                                                             
permits.  He explained, "I make my living by fishing, and not                                                                   
allowing me to enter a fishery after it's been limited would                                                                    
greatly restrict how I could run my business; and I don't think it                                                              
would be beneficial to the commercial fishermen in the state of                                                                 
Alaska, or to the other people that depend on us, as support                                                                    
industry."  Mr. Eagle urged passage of HB 101.                                                                                  
                                                                                                                                
Number 0848                                                                                                                     
                                                                                                                                
RAY CAMPBELL testified via teleconference from Ketchikan.                                                                       
Referring to previous hearings, he said there is an impression that                                                             
this bill is directed at Bering Sea scallop and Korean hair crab                                                                
fisheries.  However, in looking at files, especially for the Korean                                                             
hair crab fishery, it seems that the majority of permits in 1998                                                                
were held by nonresidents, on the gear license.  On the vessel                                                                  
license, it appears that although many declare themselves                                                                       
residents, the vessel owners' addresses are out of state.  He                                                                   
expressed hope that a CFEC representative could explain that.                                                                   
                                                                                                                                
MR. CAMPBELL said he had asked previously how many other fisheries                                                              
have been requested to be placed under this moratorium; he would                                                                
like an answer to that, as well.  He referred to the question of                                                                
transferability of moratorium permits in the Southeast dive                                                                     
fishery.  He told members that in looking at the transfers, it                                                                  
appears there is a tendency for medical transfers to go from                                                                    
residents to nonresidents; he suggested that committee members get                                                              
numbers from the CFEC regarding that.                                                                                           
                                                                                                                                
Number 0643                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN noted that Liz Cabrera had provided a synopsis, dated                                                             
April 20, 1999, of changes to the current moratorium statute under                                                              
CSHB 104(FSH).  He asked her to explain what is being repealed.                                                                 
                                                                                                                                
Number 0567                                                                                                                     
                                                                                                                                
LIZ CABRERA, Researcher for Representative Bill Hudson [sponsor]                                                                
and Committee Aide, House Special Committee on Fisheries, Alaska                                                                
State Legislature, mentioned that the memorandum was in response to                                                             
Co-Chair Ogan's request regarding the repealed section.  The                                                                    
synopsis goes through the entire bill, she indicated, showing the                                                               
affected statutes and the applicable bill sections.                                                                             
                                                                                                                                
Number 0443                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN asked Ms. McDowell whether any permits under                                                                      
moratoriums would be transferable.                                                                                              
                                                                                                                                
MARY McDOWELL, Commissioner, Commercial Fisheries Entry Commission,                                                             
Alaska Department of Fish and Game, answered that permits issued                                                                
under a moratorium are temporary permits for the length of the                                                                  
moratorium.  The only transferability is if somebody has already,                                                               
in a given year, demonstrated intent and ability to fish that year,                                                             
has renewed the interim use permit for the year, and then has some                                                              
medical condition occur, such as a broken leg.  Then that person                                                                
can apply for an "emergency transfer of their ability to fish" for                                                              
that one year.  The process requires filling out an application for                                                             
emergency transfer, which comes to the CFEC, as well as submittal                                                               
of forms from doctors, and so forth.  Those are the only transfers                                                              
allowed for a moratorium permit.                                                                                                
                                                                                                                                
Number 0334                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN stated his understanding that this bill is a                                                                      
departure from previous legislation:  It not only establishes a                                                                 
moratorium on use permits but also creates a vessel permit system.                                                              
He asked Ms. McDowell to explain that.                                                                                          
                                                                                                                                
MS. McDOWELL explained that HB 104 doesn't create a vessel                                                                      
limitation program, but it allows a moratorium to be put on entry                                                               
of new vessels into a fishery.  Another piece of legislation speaks                                                             
to the issue of creating vessel permits, she noted.  This bill, HB
104, allows this process to be used in the same way that the                                                                    
legislature, in the last few years, has enacted vessel moratoriums                                                              
on the scallop and hair crab fisheries.                                                                                         
                                                                                                                                
MS. McDOWELL pointed out that a vessel moratorium would only be                                                                 
used in a fishery where a moratorium on participants doesn't work.                                                              
For example, in the scallop and hair crab fisheries, vessels tend                                                               
to be large and to fish the outside waters; the vessels are often                                                               
owned by someone who hires skippers, and there may be several                                                                   
skippers throughout a year.  In that case, the legislature chose to                                                             
limit the number of vessels, to avoid multiplying the number of                                                                 
vessels by giving a license to each skipper.  In some fisheries,                                                                
that system better gets to the purposes of the Limited Entry Act,                                                               
which are conservation of the resource and avoidance of economic                                                                
distress in the fishery.  This moratorium bill would give the CFEC                                                              
the ability to implement a moratorium on participants or vessels,                                                               
or both, to get a lid on that fishery during the moratorium, while                                                              
the CFEC assesses the situation and decides about a course for the                                                              
future.                                                                                                                         
                                                                                                                                
Number 0103                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN referred to page 3, line 24, which says, "A permit                                                                
issued under this section is a use privilege that may be modified                                                               
or revoked by law without compensation."  He asked Ms. McDowell to                                                              
address that issue, as it relates to other limited entry permits.                                                               
                                                                                                                                
MS. McDOWELL said her understanding is that it just repeats what is                                                             
under the law now for limited entry permits.  The legislature had                                                               
reserved to itself the ability to alter it, without compensation,                                                               
at any time.                                                                                                                    
                                                                                                                                
CO-CHAIR OGAN asked whether Ms. McDowell considers it a property                                                                
right.                                                                                                                          
                                                                                                                                
MS. McDOWELL responded that it is not, under law, considered a                                                                  
property right; it is considered a use privilege.  She briefly                                                                  
discussed the repealer sections, noting that Sections 8, 9 and 10                                                               
simply adjust the sunset dates on the existing hair crab and                                                                    
scallop moratoriums, depending on whether the CFEC [testimony cut                                                               
off by change of tape].                                                                                                         
                                                                                                                                
TAPE 99-28, SIDE A                                                                                                              
Number 0001                                                                                                                     
                                                                                                                                
MS. McDOWELL said [Section 11] repeals the three sections in                                                                    
current law that are the old system of doing moratoriums, where                                                                 
someone petitions the commissioner of ADF&G, who then goes to the                                                               
board, which then goes comes back to the commissioner, who then                                                                 
comes to the CFEC.  It repeals those sections and replaces them                                                                 
with this new system.                                                                                                           
                                                                                                                                
Number 0067                                                                                                                     
                                                                                                                                
CO-CHAIR OGAN commented that this is an important issue, and he                                                                 
would like to deal with it when all members are present.  He                                                                    
announced that HB 104 would be held over.                                                                                       

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