HB 484-FISHERY ASSOCIATION REIMBURSEMENT 9:11:18 AM CO-CHAIR THOMAS 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." 9:11:42 AM REPRESENTATIVE PEGGY WILSON, Alaska State Legislature, testified as prime sponsor of HB 484 paraphrasing from the sponsor statement, which read as follows [original punctuation provided]: In 2002, the Alaska legislature created salmon fishery associations (AS 16.40.250) to encourage fleet reduction in the Alaska salmon fisheries. Salmon fishery associations may be formed in salmon fisheries throughout the state to facilitate a permit buyback program. HB 484 is a housekeeping measure to clarify what may happen to the revenue if the Commercial Fishery Entry Commission should find it necessary to sell (re-issue) permits that have been relinquished under the buyback program authorized under AS 16.40.250. Under HB 484 the legislature may appropriate revenue from the permit sale (re-issue) to the Association that paid money or incurred debt to remove the permit from the market in the first place. The state (CFEC) has the responsibility to monitor each limited entry fishery. In the event the CFEC determines more permits are needed in a salmon fishery through an optimum number determination or court action, the provisions of HB 484 would apply. REPRESENTATIVE WILSON stated that this bill carries the support of the Commercial Fisheries Entry Commissioner (CFEC). 9:13:49 AM REPRESENTATIVE ELKINS moved to adopt CSHB 484, Version 24- LS1693\G, Kane, 2/15/06. There being no objection, Version G was before the committee. 9:14:20 AM REPRESENTATIVE WILSON explained that the committee substitute stipulates that the fisheries association which provided the original buy-back is the association that receives the payback. REPRESENTATIVE ELKINS stated his understanding that the original intent of the bill has not changed, and he received conformation to that end from the sponsor. 9:14:46 AM FRANK HOMAN, Chairman/Commissioner, Commercial Fisheries Entry Commission (CFEC), stated support for HB 484, and explained that this came up through a situation with one of the fisheries associations. He said that the state, through the office of the CFEC, retains the ability to monitor all of the limited fisheries, and at sometime, either through in-house review or a court decision, would be required to sell more permits back into a fishery. The CFEC did not want to have the fisheries associations disadvantaged because they borrowed funds to have a private buy-back, thus putting them in a debt responsibility situation, and hence put them at odds with state permit actions. 9:16:05 AM REPRESENTATIVE ELKINS asked why this applies only if the association is still carrying debt. COMMISSIONER HOMAN clarified that it could apply to money expended or debt carried. 9:16:22 AM BOB THORSTENSON, Lobbyist, Southeast Alaska Seiners Association; President, United Fishermen of Alaska, stated support for this bill from both the groups that he represents, highlighting that this seemingly simple housekeeping bill has had a "chilling effect" on the fishing industry for decades. 9:17:22 AM REPRESENTATIVE ELKINS moved to report CSHB 484, Version 24- LS1693\G, Kane, 2/15/06, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 484(FSH) was so moved.