05/06/2004 09:15 AM House CRA

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled

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ALASKA STATE LEGISLATURE HOUSE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE May 6, 2004 9:15 a.m. MEMBERS PRESENT Representative Carl Morgan, Chair Representative Kelly Wolf, Vice Chair Representative Pete Kott Representative Tom Anderson Representative Ralph Samuels Representative Sharon Cissna Representative Albert Kookesh MEMBERS ABSENT All members present COMMITTEE CALENDAR CS FOR SENATE BILL NO. 260(TRA) am "An Act relating to metropolitan planning organizations and to the policy board of the metropolitan planning organization for the Anchorage metropolitan area; relating to transportation planning in federally recognized metropolitan planning areas; and providing for an effective date." - MOVED HCS CSSB 260(TRA) OUT OF COMMITTEE SENATE BILL NO. 387 am "An Act authorizing the making of certain commercial fishing loans to eligible community quota entities for the purchase of certain fishing quota shares; and providing for an effective date." - MOVED SB 387 AM OUT OF COMMITTEE PREVIOUS COMMITTEE ACTION BILL: SB 260 SHORT TITLE: METROPOLITAN PLANNING ORGANIZATIONS/AREAS SPONSOR(S): SENATOR(S) STEVENS B 01/12/04 (S) READ THE FIRST TIME - REFERRALS

01/12/04 (S) CRA, TRA BILL: SB SHORT TITLE: COMMERCIAL FISHING LOANS FOR QUOTA SHARES SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR WITNESS REGISTER SENATOR BEN STEVENS Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Spoke as the sponsor of SB CHAIR MORGAN announced that the first order of business would be CS FOR SENATE BILL NO. 260(TRA) am, "An Act relating to metropolitan planning organizations and to the policy board of the metropolitan planning organization for the Anchorage metropolitan area; relating to transportation planning in federally recognized metropolitan planning areas; and providing for an effective date." Number 0145 SENATOR BEN STEVENS, Alaska State Legislature, sponsor of 260, makeup of the policy board of the metropolitan planning organization (MPO). He explained that HCS SB included legislators in a voting capacity. Legislators are elected officials who are responsible to the electorate. In its current form, AMATS is a political animal that isn't responsive to the public's needs. Although Ms. Essert said that she would accept legislators as non-voting members, she expressed hope they would be included in the process. She expressed frustration with the mayor spending taxpayers' dollars to lobby the legislature for specific projects when the mayor could have individuals who are intimately involved in the process of choosing the projects that should be approved sit on the policy committee. Ms. Essert concluded by emphasizing that she preferred the original legislation because it was simpler, less involved, and provided the taxpayers representation. However, she noted her support of placing legislators on the AMATS policy committee in any capacity. Number 0780 CRAIG LYON, AMATS Coordinator, Municipality of Anchorage, informed the committee that the Municipality of Anchorage supports the idea of opening up the process to improve communication and public participation. Currently, there are two citizen committees that support AMATS with public participation, notwithstanding what is offered during the meetings. The Planning & Zoning Commission serves as the federally required citizens advisory group [as does the] AMATS Air Quality Advisory Group. Mr. Lyon highlighted that there is a new mayor, a new coordinator, and a new DOT&PF director for the central region all of which are committed to improving the public process. Steps are being taken to improve the public process, which is a continual process. Therefore, there is flexibility in meeting schedules and quarterly meetings with the Federation of Community Councils are held to brief them on projects and processes in order to open the process. Mr. Lyon related that at this time the Begich Administration doesn't support adding members to the policy committee and doesn't support doing so unilaterally, which is inconsistent with the intent of federal rules for MPOs such as AMATS. REPRESENTATIVE ANDERSON informed the committee that Mr. Lyon worked as legislative staff for many years, and noted that he is glad Mr. Lyon holds the position of Coordinator of AMATS. He also noted that he served on the round-table committee of AMATS with Mr. Lyon, who he said is knowledgeable. He mentioned that he appreciated Mr. Lyon's efforts. Number 0913 REPRESENTATIVE KOTT moved to report HCS 260(TRA) out voted against it. Therefore, HCS SB VICE CHAIR WOLF announced that the final order of business would be SENATE BILL NO. 387 am, "An Act authorizing the making of certain commercial fishing loans to eligible community quota entities for the purchase of certain fishing quota shares; and providing for an effective date." Number 1608 GREG WINEGAR, Director, Division of Investments, Department of Community & Economic Development (DCED), explained that am makes a small change to the existing commercial fishing revolving loan fund, which has been around since the early type of borrower, community quota entities (CQEs), that is being created. The National Marine Fisheries Service (NMFS) is creating this new borrower. He explained that the North Pacific Council was concerned with regard to the loss of quota shares out of a number of Alaska's coastal communities, and therefore the North Pacific Council recommended the change. He pointed out that the committee packet should have documentation with regard to the communities that NMFS determined to be eligible. This legislation allows communities to form nonprofit corporations that can go out into the marketplace to purchase quota shares and lease them back to residents of the particular community. The goal is to improve the economic viability of these communities by allowing local ownership of fishing privileges, he said. MR. WINEGAR informed the committee that since this quota share program was created back in 1995, many communities have lost a number of their shares. Therefore, the North Pacific Council wanted to address the problem. The federal rule isn't scheduled to take effect until June 1st. Section 3 of the legislation has an effective date clause tying the effective date of the legislation to the effective date of the federal rule change. Mr. Winegar pointed out that these type of loans can already be made to individuals, and therefore much of the loan criteria will be the same for CQEs as it is for individuals. With regard to funding, Mr. Winegar stated that the department has adequate funding to handle loan demand. He related that the loan is self-sufficient, and therefore there are no general funds involved in this. Furthermore, existing staff will handle the loan requests, which resulted in the department submitting a zero fiscal note. He related his belief that the Alaska Department of Fish & Game supports the legislation and has submitted a zero fiscal note as well. Several other organizations support this legislation, such as the Gulf of Alaska Coastal Communities Coalition, and Tlingit and Haida Central Council. Mr. Winegar urged the committee's support because it will bring the commercial fishing revolving loan program in sync with the changes NMFS is making in the quota share program. Furthermore, it's consistent with the mission of the program. Most importantly, the legislation provides these communities with a tool to generate some economic activity in these communities. VICE CHAIR WOLF noted that the committee packet has neither letters of support nor the list of communities impacted by this legislation. MR. WINEGAR provided the committee with a list of the impacted communities. REPRESENTATIVE ANDERSON asked if the United Fishermen of Alaska (UFA) support SB Number 1840 MR. WINEGAR said he didn't believe UFA has issued a formal opinion, and he didn't believe that UFA has any problems with the legislation. In response to Vice Chair Wolf, Mr. Winegar said that there are letters of support for the legislation and he would take care of getting those to the committee. VICE CHAIR WOLF asked if anyone wished to testify. There was no response. MR. WINEGAR informed the committee that the Gulf of Alaska coalition is visiting the small rural communities in order to explain the rule changes being made by NMFS. VICE CHAIR WOLF expressed concern that this legislation goes backwards. The legislation seems to return to a time when individual communities or an organization purchased quotas such that the situation would return to a time of fish traps and processors owning large portions of the catch. MR. WINEGAR noted that he didn't take part in the actual discussions that have been going on with the council for the past couple of years. However, he said he understood that the initial concern is that many of these shares have left the communities and this legislation would provide a tool to help get those shares back. VICE CHAIR WOLF highlighted that one of the state's larger seafood processors just purchased another seafood processor. Therefore, he said he was concerned with regard to conglomerates acquiring the quotas and returning the fishing industry back to the 1950s. Number 2000 REPRESENTATIVE KOOKESH suggested reviewing the rules for buying quotas. For instance, the only way an individual can purchase a halibut quota is if that individual originally participated in the fishery. Under the limited entry permit in Alaska, a processor can't own a limited entry permit, only individuals can. Representative Kookesh highlighted that ADJOURNMENT There being no further business before the committee, the House Community and Regional Affairs Standing Committee meeting was adjourned at 9:45 a.m.

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