SENATE BILL NO. 315 An Act relating to the administration of commercial fishing entry permit buy-back programs. CHERYL SUTTON, JOINT LEGISLATIVE SALMON INDUSTRIES TASK FORCE, SENATOR BEN STEVENS, stated that SB 315 was the Senate companion to HB 410. It is precisely the same bill as HB 410. There have been no amendments on the Senate side and it passed the Senate unanimously. SB 315 modifies existing law governing buy-back programs. It would allow the Commercial Fisheries Entry Commission to "front fund" a buy-back program if an appropriation were received. The commission would then continue to collect funds through the designated rate of assessment in the buy-back program to "pay back" the indebtedness. She added that when the optimum number of permits is reached in a buy-back and the reasonable costs of the program have been met, the Commission would terminate the assessment in the affected fishery. SB 31 will make the administration of a buy-back program more workable. Representative Chenault asked about current law buy-backs contained in the bill analysis. FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISSION, explained that current law is that the Commercial Fisheries Limited Entry Commission, after the determination of the outcome number and when that number indicates too many permits in the fishery, a buy-back program could be established. That language is already in the fish law. It could increase to 7%, up to 1 through 7 depending on how much money is needed for the buy back program. Representative Chenault asked if it would be voluntary, or would the commission make the determination regarding the optimum number. Mr. Homan responded that it would come about through the interaction with the fishing community. Representative Chenault pointed out that was a concern with commercial fishermen in his area whether or not they were interested in a buy-back. These fishermen want to be "heavily involved in that process". Mr. Homan responded that there would be a public hearing process. DON BREMNER, CENTRAL COUNCIL BUSINESS AND ECONOMIC DEVELOPMENT, JUNEAU, voiced opposition to the proposed legislation. He noted handouts that support his position. (Copy on File). Mr. Bremner pointed out that there is no justification or complete analysis for the legislation and how the buy backs would affect the fishermen. He spoke to finding solutions experienced by the fishermen. The fishermen want to find options. Mr. Bremner recommended that the State should be looking at adding back permits for the rural communities, as it is the only resource for many of them. He reiterated that strong enough reasons have not been addressed. Mr. Bremner noted that the Central Council sent out a proposal to Senator Elton and Senator Stevens requesting a further look at the proposal. The proposal suggests that a complete analysis be performed of the buy back and limited entry systems. He did not know how the legislation would affect the prices to the fishermen. He reiterated that special attention needs to be given to rural communities. Mr. Bremner suggested that the permit banks would be a better idea for taking care of future generations and then they would not have to come back to the Legislature to address these concerns. Ms. Sutton commented that the bill does not establish or promote any buy back. Representative Chenault noted that he had no fiscal note in his file. Ms. Sutton said that was correct. Representative Foster MOVED to report SB 315 out of Committee with individual recommendations and with the fiscal note. Mr. Homan pointed out that there was a zero note and that there would be no buy back and that could be used if the State ever got to that point. The only thing the bill does at this time, is indicate that there could be a buy back program if there was an opportunity to get up-front funding from some source, then the legislation would allow that to happen rather than waiting for years to accumulate an assessment. Representative Stoltze commented that there are options and that when the bill gets to the House floor, discussions should be made regarding these concerns. There being NO OBJECTION, SB 315 was reported out of Committee with a "do pass" recommendation and with zero note #1 by the Department of Fish & Game.