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.