Legislature(2001 - 2002)
05/06/2002 10:35 AM Senate RLS
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ALASKA STATE LEGISLATURE
SENATE RULES COMMITTEE
May 6, 2002
10:35 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chair
Senator John Cowdery, Vice Chair
Senator Gene Therriault
Senator Johnny Ellis
MEMBERS ABSENT
Senator Rick Halford
COMMITTEE CALENDAR
SENATE BILL NO. 239
"An Act relating to state employees who are called to active duty
as reserve or auxiliary members of the armed forces of the United
States; and providing for an effective date."
APPROVED FOR CALENDARING
SENATE BILL NO. 359
"An Act relating to organization grants for mergers,
consolidations, or unifications involving third class boroughs."
ADOPTED A SENATE RULES COMMITTEE SUBSTITUTE AND APPROVED FOR
CALENDARING
CS FOR HOUSE BILL NO. 206(RLS)
"An Act relating to a vessel-based commercial fisheries limited
entry system for the Bering Sea Korean hair crab fishery and for
weathervane scallop fisheries, to management of offshore
fisheries, and to the definition of 'person' for purposes of the
commercial fisheries entry program; and providing for an
effective date."
APPROVED FOR CALENDARING
CS FOR HOUSE BILL NO. 288(FIN) am
"An Act relating to commercial fishing limited entry permit buy-
back programs, to a permit buy-back assessment, and to voluntary
relinquishment of commercial fishing permits; and defining
'optimum number.'"
APPROVED FOR CALENDARING
HOUSE BILL NO. 262
"An Act relating to accounting for and appropriations of receipts
from fees collected by the Department of Labor and Workforce
Development for certain inspections and for certain plumbing and
electrical worker certificates of fitness; establishing a
building safety account; and providing for an effective date."
SCHEDULED BUT NOT HEARD
SENATE CONCURRENT RESOLUTION NO. 36
Suspending Rules 24(c), 35, 41(b), and 42(e), Uniform Rules of
the Alaska State Legislature, concerning House Bill No. 262,
relating to accounting for and appropriations of receipts from
fees collected by the Department of Labor and Workforce
Development for certain inspections and for certain plumbing and
electrical worker certificates of fitness, establishing a
building safety account, and providing for an effective date.
SCHEDULED BUT NOT HEARD
PREVIOUS SENATE COMMITTEE ACTION
SB 239 - See State Affairs minutes dated 1/24/02 and 1/31/02 and
Finance Report dated 4/25/02.
SB 359 - See CRA minutes dated 4/17/02 and Finance Report dated
4/30/02.
HB 206 - See Resources minutes dated 3/20/02, 4/17/02 and 4/24/02
and Judiciary minutes dated 4/29/02.
HB 262 - See Labor and Commerce minutes dated 3/21/02, State
Affairs minutes dated 4/2/02 and Finance Report dated 4/18/02.
HB 288 - See Resources minutes dated 4/8/02 and Finance Report
dated 5/1/02.
WITNESS REGISTER
Mary Jackson
Staff to the Senate CRA Committee
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Explained and stated support for Amendment 1
to SB 359.
Mary McDowell
Commercial Fisheries Entry Commission
8800 Glacier Highway, Suite 109
Juneau, AK 99801
POSITION STATEMENT: Explained the intent of CSHB 206(RLS) and
CSHB 288(RLS).
ACTION NARRATIVE
TAPE 02-12, SIDE A
Number 001
CHAIRMAN RANDY PHILLIPS called the Senate Rules Committee meeting
to order at 10:35 a.m. Senators Cowdery, Therriault and Phillips
were present. The first order of business to come before the
committee was SB 239.
SENATOR COWDERY moved to calendar SB 239-STATE EMPLOYEES CALLED
TO MILITARY DUTY at the Chairman's discretion with its
accompanying fiscal notes.
CHAIRMAN PHILLIPS announced that with no objection, the motion
carried.
SENATOR COWDERY moved to calendar SB 359-MUNICIPAL ORGANIZATION
GRANTS/LBC STUDY at the Chairman's discretion with its
accompanying fiscal notes.
CHAIRMAN PHILLIPS announced that an amendment to SB 359 was
proposed.
SENATOR COWDERY withdrew his motion and then moved to take up SB
359 for discussion.
CHAIRMAN PHILLIPS informed members that Amendment 1 was labeled
"5302 Cook F.1" and moved its adoption. He then asked Ms. Jackson
to testify.
MS. MARY JACKSON, staff to the Senate Community and Regional
Affairs Committee, explained that Amendment 1 deletes the
language beginning on page 1 and ending on page 2, line 3. The
essence of that change is that there will be one $200,000 payment
instead of two. It was suggested that the amendment would be a
bit more palatable.
CHAIRMAN PHILLIPS asked if that change is agreeable to the prime
sponsor of the bill.
MS. JACKSON said it is.
SENATOR THERRIAULT moved to adopt Amendment 1.
CHAIRMAN PHILLIPS announced that with no objection, Amendment 1
was adopted.
SENATOR COWDERY moved to calendar CSSB 359(RLS) at the Chairman's
discretion with the accompanying fiscal notes.
CHAIRMAN PHILLIPS announced that with no objection, CSSB 359(RLS)
would be calendared.
CHAIRMAN PHILLIPS announced the committee would take up CSHB 206
(RLS)-LIMITED ENTRY FOR COMM. FISHERIES and asked Ms. McDowell to
testify.
MS. MARY MCDOWELL, Commercial Fisheries Entry Commission,
explained that HB 206 began as a generic bill to create a vessel-
based limited entry alternative. Through the legislative process,
it was narrowed down to authorizing a vessel-based limited entry
alternative for the weathervane scallop and Korean hair crab
fisheries.
SENATOR COWDERY moved to calendar CSHB 206(RLS) at the Chairman's
discretion with the accompanying fiscal note.
CHAIRMAN PHILLIPS announced that with no objection, the motion
carried.
SENATOR THERRIAULT moved to calendar CSHB 288(FIN)am-LIMITED
ENTRY BUY-BACK PROGRAM/ASSESSMENT at the Chairman's discretion
with its accompanying fiscal notes.
MS. MARY MCDOWELL, Commercial Fisheries Entry Commission (CFEC),
explained that this measure corrects several flaws in the current
state permit buy-back program. One of the main issues is that the
funding mechanism in current statute has been found to be
unconstitutional, like a dedicated fund, because it essentially
says the CFEC would declare a buy-back program, tax fishermen and
the money would go straight into the buy-back fund to buy out
permits and vessels. This bill creates a mechanism similar to the
salmon enhancement tax and the ASMI tax in which the CFEC would
declare a buy-back program, the money would be collected out of
fish tickets, and fishermen's earnings would go to the state
general fund and the legislature may appropriate it back to the
buy-back fund to buy out permits.
MS. MCDOWELL explained that current law says that the buy-back
program funds could be used to buy-back permits, vessels and
gear. This bill only allows the funds to be used to buy back
permits, so the money will go much further. It also removes the
mandate that CFEC initiate a state-run buy-back program if an
outcome study determines there are too many permits in a fishery
and instead allows CFEC to do so. This will allow fishermen to
seek other ways of consolidating the fleet, either using an
industry-run buy-back program or some other method. It provides
CFEC with a tool with which to do a study and do a determination
about what number of permits would be defensible under the
Constitution and explore alternatives to the state run program.
MS. MCDOWELL said the bill contains one other significant change.
Current law requires CFEC to do a study of the optimum number of
permits in a fishery. That mandate implies that CFEC determine a
perfect number. CSHB 288(FIN)am allows CFEC to determine an
optimum range, so that CFEC can take fluctuating variables into
account. She noted CFEC initially issues a certain number of
permits in a fishery and, later on, if permits become too
exclusive CFEC must issue more permits; for the opposite
scenario, CFEC can buy back permits.
CHAIRMAN PHILLIPS asked where that provision is located in the
bill.
MS. MCDOWELL said it is in Section 7. She informed members that
this bill is essentially a clean up bill. CFEC has never done a
buy back but this bill will make a buy back functional and
constitutional.
CHAIRMAN PHILLIPS asked, "Are we going to get sued on this one
too?"
MS. MCDOWELL said she believes CFEC is more likely to get sued if
this bill doesn't pass.
CHAIRMAN PHILLIPS asked if there were any objections to moving
the bill from committee. There were none, therefore Senator
Therriault's motion carried.
CHAIRMAN PHILLIPS announced that HB 262 would be held in
committee one more day and that HB 305 would be scheduled the
next day. He then adjourned the meeting at 11:45 a.m.
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