05/05/2006 09:00 AM Senate FINANCE

9:28:29 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 484(FSH)                                                                                             
     "An Act allowing for revenue received from issuance of                                                                     
     additional   entry   permits    to   be   appropriated   for                                                               
     reimbursement to salmon fishery associations."                                                                             
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
9:28:59 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY WILSON, Sponsor  of the bill, testified that                                                               
she agreed to the changes requested by the Committee.                                                                           
                                                                                                                                
9:29:22 AM                                                                                                                    
                                                                                                                                
Co-Chair  Wilken  moved  for  adoption  of SCS  CS  HB  484,  24-                                                               
LS1693\Y,  as  a working  document  and  objected for  discussion                                                               
purposes.                                                                                                                       
                                                                                                                                
Representative Wilson  explained the addition of  a subsection to                                                               
the bill that would provide  that an appropriation made under the                                                               
subsection must be made within 30  years after the date the money                                                               
was expended or the debt was incurred.                                                                                          
                                                                                                                                
9:30:06 AM                                                                                                                    
                                                                                                                                
Co-Chair Green  emphasized the  difficulty of  the issue  and the                                                               
need for  assurances to prohibit  litigation. This matter  is not                                                               
easy to understand and she  appreciated the sponsor's and other's                                                               
efforts.                                                                                                                        
                                                                                                                                
9:30:34 AM                                                                                                                    
                                                                                                                                
Senator Stedman expressed "discomfort" with 30-year time limit.                                                                 
                                                                                                                                
Co-Chair  Wilken removed  his objection  to the  adoption of  the                                                               
committee substitute.                                                                                                           
                                                                                                                                
Without further objection SCS CS  HB 484, Version "Y" was ADOPTED                                                               
as a working document.                                                                                                          
                                                                                                                                
9:31:17 AM                                                                                                                    
                                                                                                                                
Amendment #1:  This amendment reduces  the number of  years, from                                                               
30  to  15,  in  which  the  legislature  may  appropriate  to  a                                                               
participating  salmon fishery  association  for reimbursement  of                                                               
expenses it incurred  in the implementation of  a fleet reduction                                                               
program, any revenue  resulting from the sale of  permits for the                                                               
same fishery.                                                                                                                   
                                                                                                                                
Senator Stedman moved for adoption.                                                                                             
                                                                                                                                
Senator Stedman  pointed out that  the earlier provision  did not                                                               
stipulate  a  timeframe,  which  provided  the  legislature  with                                                               
latitude  to determine  appropriate  reimbursement. Many  changes                                                               
have occurred in  the commercial fishing industry  over 30 years.                                                               
A  15-year time  limit  would  be more  applicable  to allow  the                                                               
legislature to gauge economic gains in the industry.                                                                            
                                                                                                                                
9:33:08 AM                                                                                                                    
                                                                                                                                
Co-Chair Green shared these concerns.  However, the time limit of                                                               
30 years  was chosen because  it is the  length of the  loan. The                                                               
association, in  collecting funds to  buy permits, does  not have                                                               
any control  over when it  could be directed to  issue additional                                                               
permits.                                                                                                                        
                                                                                                                                
9:33:48 AM                                                                                                                    
                                                                                                                                
Senator  Stedman understood  the argument,  but pointed  out that                                                               
the  association  could  follow  a different  timeframe  and  not                                                               
utilize the  debt. The 30-year  proposal represents  an "unwieldy                                                               
amount of time." In conversations  he had with representatives of                                                               
the  United  Fisherman   of  Alaska,  he  did   not  fault  their                                                               
preference of the 30-year limit.                                                                                                
                                                                                                                                
9:34:31 AM                                                                                                                    
                                                                                                                                
Senator   Olson,   as   commercial  fisherman,   understood   the                                                               
fluctuation of prices. A 30-year  time limit is appropriation and                                                               
would alleviate pressure on fishers to resolve the issue.                                                                       
                                                                                                                                
9:35:20 AM                                                                                                                    
                                                                                                                                
Representative  Wilson expressed  concern that  because fisherman                                                               
do not  have the  money and  are considering  taking out  a loan,                                                               
they  would be  taking  a risk  since the  long  term prices  are                                                               
unknown. A  provision on  this legislation to  last at  least the                                                               
length of the loan would  provide some assurance. This would also                                                               
assist then in obtaining the loan given the guarantee provided.                                                                 
                                                                                                                                
9:36:13 AM                                                                                                                    
                                                                                                                                
FRANK HOMAN, Commercial Fisheries  Entry Commission, testified in                                                               
Juneau  in  agreement   with  Representative  Wilson.  Commercial                                                               
fishers, to form  an organization to buy back  the permits, would                                                               
be  required to  obtain  a  30-year loan.  The  provision of  the                                                               
committee  substitute would  protect these  borrowers during  the                                                               
term of  the loan against a  situation in which the  State issued                                                               
additional permits.                                                                                                             
                                                                                                                                
A roll call was taken on the motion to adopt the amendment.                                                                     
                                                                                                                                
IN FAVOR: Senator Stedman                                                                                                       
                                                                                                                                
OPPOSED: Senator Olson, Senator  Dyson, Senator Hoffman, Co-Chair                                                               
Wilken and Co-Chair Green                                                                                                       
                                                                                                                                
ABSENT: Senator Bunde                                                                                                           
                                                                                                                                
The motion FAILED (1-5-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
9:38:35 AM                                                                                                                    
                                                                                                                                
Co-Chair Wilken  offered a motion  to report  SCS CS HB  484, 24-                                                               
LS1693\Y,  from  Committee  with individual  recommendations  and                                                               
accompanying fiscal note.                                                                                                       
                                                                                                                                
There was  no objection and  SCS CS HB  484 (FIN) was  MOVED from                                                               
Committee with  zero fiscal note  #1 from the Department  of Fish                                                               
and Game.