Legislature(2005 - 2006)SENATE FINANCE 532
04/04/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB93 | |
| SB155 | |
| SB112 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 141 | TELECONFERENCED | |
| += | SB 93 | TELECONFERENCED | |
| *+ | SB 155 | TELECONFERENCED | |
| + | SB 112 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 93
"An Act relating to commercial fishing permit and vessel
license fees; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Green noted a proposed committee substitute was
distributed.
Co-Chair Wilken moved for adoption of CS SB 93, 24-LS0504\F, as a
working document.
Co-Chair Green objected for an explanation.
SENATOR BEN STEVENS, sponsor of the bill, outlined two changes
proposed in the committee substitute: the first would impose a cap
on the amount of the permit fee and the second change would provide
for a 20 percent license fee increase to vessel class. The original
language of this legislation contains no limitation and a fee
structure that imposes a proportionately higher fee for smaller
vessels.
9:12:41 AM
Senator B. Stevens referenced a table titled, "DRAFT, CFEC Vessel
Fees, Current and Proposed" [copy on file] which contains the
following data.
Vessel Length: 0-25'
Number: 3,484
Current Fee: $20
Current Revenue: $69,680
Proposed 20% Fee: $24
Proposed 20% Revenue: $83,616
Vessel Length: 25-50'
Number: 5,600
Current Fee: $50
Current Revenue: $280,000
Proposed 20% Fee: $60
Proposed 20% Revenue: $336,000
Vessel Length: 50-75'
Number: 764
Current Fee: $76,400
Proposed 20% Fee: $120
Proposed 20% Revenue: $91,680
Vessel Length: 75-150'
Number: 447
Current Fee: $250
Current Revenue: $111,750
Proposed 20% Fee: $300
Proposed 20% Revenue: $134,100
Vessel Length: 150-250'
Number: 92
Current Fee: $500
Current Revenue: $46,000
Proposed 20% Fee: $600
Proposed 20% Revenue: $55,200
Vessel Length: 250'
Number: 26
Current Fee: $750
Current Revenue: $19,500
Proposed 20% Fee: $900
Proposed 20% Revenue: $23,400
Total
Number of Vessels: 10,413
Current Revenue: $603,330
Proposed 20% Revenue: $723,996
Note: A 20% across the board vessel fee increase would
generate $120,666 in fees over the current vessel fees. In
comparison the vessel fee proposal currently in SB 93
generates approximately $291,000. The current fiscal note for
SB 93 would be reduced by $170,334 under this proposal.
Source: CFEC 3/23/2005
9:13:42 AM
Senator B. Stevens next referenced a chart titled, "State of
Alaska, Commercial Fisheries Entry Commission, Comparison of Permit
Renewal Fees for 2005 Licensing Year Under Current Fee Schedule and
Under CFEC's Proposed Methodology for Implementing SB 93, Permit
Counts and Estimated Revenue by Base Fee with $3000 Cap, March 23,
2005, Draft" [copy on file.] This demonstrates the impact to
individual permit holders of the proposed fee increases with no
change to the current formula for deriving those fees. He detailed
the calculation of how the fees would be assessed under the
provisions of the committee substitute. The majority of the large
vessels impacted are the offshore deep sea fishing fleet.
FRANK HOMAN, Commercial Fisheries Entry Commission, testified the
increased fees would be assessed at four tenths of one percent of
the permit value.
9:17:14 AM
Co-Chair Green understood that the intent is to expand the existing
fee structure.
Senator B. Stevens affirmed the fee amounts have been limited,
although the original language of this bill would eliminate this
maximum cap. The proposed committee substitute instead increases
the cap. The cap is justified because the fisheries at the higher
end are multi-million dollar industries and fluctuate according to
worldwide factors.
9:18:16 AM
Senator Hoffman noted fees have not exceeded $300 in the past and
asked the number of residents and nonresidents who would be subject
to the higher amounts.
Senator B. Stevens indicated he could calculate this and provide
information at a later date.
Senator Hoffman surmised the majority of the new revenue generated
by this legislation would be derived from fees collected from
nonresidents.
Mr. Homan had not differentiated the residency source of the
increased revenues. The value of a permit is not correlated to the
residency of the permit holder, with the exception of a nonresident
differential assessed to each nonresident-owned vessel.
9:19:42 AM
Co-Chair Green asked the position of user groups on this
legislation.
Senator B. Stevens replied that the fee limit was reintroduced to
be less onerous on smaller vessel owners. The limit would also
assure those larger vessel owners participating in the offshore
fleet that the fees would not increase as the fishery values
increased. The majority of the fishing industry does not oppose
this legislation. He noted a letter of support from the United
Fishermen of Alaska organization dated March 7, 2005 [copy on
file.]
9:21:17 AM
Co-Chair Green requested an explanation of how the money is
expended and the function of the Commission.
9:21:33 AM
Senator B. Stevens deferred to Mr. Homan.
9:21:38 AM
Mr. Homan replied that authorization to spend money collected from
the fees is legislative. The Commercial Fisheries Entry Commission
is a receipt-supported entity without general fund support. In many
years and as recently as 1998, the Commission had a surplus of $2
million that was transferred to the State general fund. A practice
was started in the year 2000 to appropriate a portion of the
surplus to the Division of Commercial Fisheries for industry
related programs.
9:23:21 AM
Senator Stedman clarified that only the permit renewal fee would be
changed under the provisions of the committee substitute. Be
Senator B. Stevens stated the fee increase is unchanged from the
original version of the bill with the exception that a $3,000
maximum fee would be established; the original language did not
include a cap.
9:24:20 AM
Senator B. Stevens noted a companion bill was introduced in the
House of Representatives.
JERRY MCCUNE, United Fishermen of Alaska, testified in support of
the committee substitute. Members had complained about the higher
end fees proposed in the original version of the bill. He indicated
that the organization had received a letter from the commissioner
of the Department of Fish and Game, assuring that these concerns
would be considered. The organization was satisfied that the
regulation and public hearing process would be adequate to address
the matter.
9:25:51 AM
Co-Chair Green noted letters from other industry organizations were
received as well.
9:26:04 AM
Co-Chair Green removed her objection to the adoption of the
committee substitute and the committee substitute, Version "F" was
ADOPTED.
Co-Chair Wilken offered a motion to report CS SB 93, 24-LS0504\F
from Committee with individual recommendations and new fiscal note.
There was no objection and CS SB 93 (FIN) MOVED from Committee with
a zero fiscal note dated 4/1/05 from the Department of Fish and
Game.
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