Legislature(2005 - 2006)CAPITOL 124

03/31/2006 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 386 EXTEND NORTH SLOPE SEVERANCE TAX CREDIT TELECONFERENCED
Heard & Held
+ HB 484 FISHERY ASSOCIATION REIMBURSEMENT TELECONFERENCED
Moved CSHB 484(FSH) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 307 KNIK RIVER PUBLIC USE AREA TELECONFERENCED
Moved CSHB 307(RES) Out of Committee
HB 484-FISHERY ASSOCIATION REIMBURSEMENT                                                                                      
                                                                                                                                
CO-CHAIR RAMRAS 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."                                                                                  
                                                                                                                                
1:31:53 PM                                                                                                                    
                                                                                                                                
LINDA MILLER,  Staff to Representative  Peggy Wilson,  sponsor of                                                               
HB  484,  said  the  Alaska Legislature  created  salmon  fishery                                                               
associations  in  2002  to  encourage   fleet  reduction  in  the                                                               
fisheries.   She said associations  may be formed  throughout the                                                               
state to  facilitate a  permit buy-back  program, which  allows a                                                               
group of  fishermen to buy  back permits  in their fishery.   The                                                               
Southeast Alaska Seiners formed  an association for that purpose,                                                               
but  a concern  was  raised  by the  seiners  of possible  future                                                               
action  by the  Commercial Fisheries  Entry Commission  (CFEC) to                                                               
issue and  sell more permits.   The  group asked for  a guarantee                                                               
that their money would be reimbursed  if that ever happened.  She                                                               
said HB 484 does that.   The House Special Committee on Fisheries                                                               
substitute (CS) to HB 484 contains housekeeping language.                                                                       
                                                                                                                                
MS. MILLER said HB 484 makes  it clear that in the unlikely event                                                               
that the CFEC sells permits  that were previously purchased by an                                                               
association, the  legislature may  appropriate money back  to the                                                               
association.   The  change from  the original  version to  the CS                                                               
makes it  clear that the  association that actually did  the buy-                                                               
back is  the one that may  receive the payback, she  stated.  She                                                               
said that the state has  a responsibility to monitor each limited                                                               
entry  fishery.   In  the  event  that  more permits  are  needed                                                               
through a  CFEC determination or  a court action,  the provisions                                                               
of HB 484 would apply, she concluded.                                                                                           
                                                                                                                                
1:35:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON said  on page 1, lines 8 and  9, the intent                                                               
is to reimburse an association [only  for what was paid].  If the                                                               
permits  sell for  more  than the  original  purchase price,  the                                                               
association would be reimbursed for only the original amount.                                                                   
                                                                                                                                
MS. MILLER said that is correct.                                                                                                
                                                                                                                                
REPRESENTATIVE ELKINS asked why the  language is "may" instead of                                                               
"shall," and what assures that it will be done.                                                                                 
                                                                                                                                
MS. MILLER said it was based on constitutional requirements.                                                                    
                                                                                                                                
1:37:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS said he can see it not happening.                                                                         
                                                                                                                                
REPRESENTATIVE  SEATON suggested  that  dedicated  funds are  not                                                               
permitted under the constitution.                                                                                               
                                                                                                                                
MS. MILLER believes that is correct.                                                                                            
                                                                                                                                
1:38:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS  said it  doesn't say it  is coming  out of                                                               
dedicated funds.                                                                                                                
                                                                                                                                
1:38:38 PM                                                                                                                    
                                                                                                                                
FRANK HOMAN,  Chair, Commercial Fisheries Entry  Commission, said                                                               
Ms. Miller  summed it up.   The  "may" is typical  of legislative                                                               
language  to  avoid  a dedicated-fund  situation,  he  explained,                                                               
because  the  legislature  always  has   the  last  word  on  any                                                               
appropriation.                                                                                                                  
                                                                                                                                
1:39:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  wanted confirmation  that if  permits were                                                               
sold  for more  than  the associations  purchased  them for,  the                                                               
associations would  be reimbursed only  for their costs,  and the                                                               
remaining money would stay in the state.                                                                                        
                                                                                                                                
MR. HOMAN said that was his understanding.                                                                                      
                                                                                                                                
1:40:15 PM                                                                                                                    
                                                                                                                                
JERRY MCCUNE, United  Fishermen of Alaska, said  there has always                                                               
been  the  nagging question  of  what  would  happen if  a  court                                                               
ordered permits  to be put  back into a  fishery.  There  is only                                                               
one  association  at  this time,  the  Southeast  Alaska  Seiners                                                               
Association, but others  might be formed.  If  there were permits                                                               
re-issued, then  the association  could get  some of  their money                                                               
back under this bill, he stated.   The amount would be determined                                                               
by  the  legislature,  he  noted.    He  gave  the  example  that                                                               
aquaculture association money goes into  the general fund and has                                                               
to be appropriated back out by the legislature.                                                                                 
                                                                                                                                
1:42:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON  asked   Mr.   McCune  if   it  was   his                                                               
understanding that if  the state sold the permits  for many times                                                               
the  amount  of  what  the association  paid,  the  amount  being                                                               
reimbursed would only be the amount the association paid.                                                                       
                                                                                                                                
1:42:48 PM                                                                                                                    
                                                                                                                                
MR. MCCUNE said  it would only be the money  that the association                                                               
put out, and the rest would go into the general fund.                                                                           
                                                                                                                                
1:43:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ELKINS said he wished  the bill were stronger, but                                                               
it is fine.                                                                                                                     
                                                                                                                                
1:43:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR RAMRAS  said the committee  is missing four  members and                                                               
asked if the bill should be held.                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON  said Representative LeDoux is  Co-Chair of                                                               
the House Special  Committee on Fisheries, which is  where the CS                                                               
came from.                                                                                                                      
                                                                                                                                
1:44:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  OLSON  moved  to  report  CSHB  484(FSH)  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.  Hearing no objections, it was so ordered.                                                                        
                                                                                                                                

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