HB 206-VESSEL LIMITED ENTRY FOR COMM. FISHERIES CHAIR KOTT announced that the first order of business would be HOUSE BILL NO. 206, "An Act relating to a vessel-based commercial fisheries limited entry system, 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." KRIS KNAUSS, Staff to Representative Kott, House Rules Standing Committee, Alaska State Legislature, informed the committee of the changes encompassed in the proposed committee substitute (CS) [Version 22-LS0426\W, Utermohle, 2/21/02]. On page 3, line 28, after "recent" the language "and past" was inserted. The same was done on page 4, line 5. On page 4, line 9, the language "or recently was" was inserted. On page 4, line 10, "may" was changed to "shall". Number 0138 REPRESENTATIVE McGUIRE moved to adopt CSHB 206 [Version 22- LS0426\W, Utermohle, 2/21/02], as the working document. There being no objection, Version W was before the committee. Number 0156 REPRESENTATIVE DREW SCALZI, Alaska State Legislature, informed the committee that he is carrying HB 206 at the request of the Commercial Fisheries Entry Commission (CFEC) who requested this of the legislature. A few years ago, the legislature discovered that a moratorium situation was coming in hair crab and scallop fisheries. Under the current limited entry system, [CFEC] was tasked with developing a program that would provide the aforementioned two fisheries with a limited entry. Under the current limited entry plan, a limited entry system must be devised such that the owner of the limited entry permit must be a person. Although this makes sense with the salmon and herring fisheries because of the small operations, under Bering Sea fisheries there are very large vessels that have multiple skippers. Therefore, if the CFEC considers a limited entry program, it must consider who is given the permit in relation to who operates the vessel. This legislation provides CFEC with a new tool, adoption of a limited entry system. By doing so, the limited entry, the initial recipient, would be attached to the vessel rather than to the person. In the next generation, the [limited entry permit] would revert back to a person. In other words, if the vessel permit was sold later, the permit would go to a person. REPRESENTATIVE SCALZI posed an example in which CFEC used the current statutes to provide for a limited entry system. If there were seven vessels in the hair crab fishery and the desire was to provide a limited entry system, then "you" may have to increase to 20 permits. Therefore, the entire purpose of the moratorium would be circumvented because the number of participants would have been expanded. Number 0407 REPRESENTATIVE SCALZI acknowledged that there has been some opposition to this bill because those people may not be initial recipients under [limited entry]. He emphasized that this merely provides a tool because the Limited Entry Commission still has to have public hearings and devise a limited entry plan. This legislation merely allows the permit of an initial recipient to go to a vessel. He recalled Representative McGuire's concern in regard to the possibility that [this limited entry] would short circuit [new] folks from entering into these fisheries. He pointed out that [the Bering Sea fishery] isn't an entry-level fishery. REPRESENTATIVE SCALZI explained that originally HB 206 was going to be a generic tool applicable to all fisheries. However, there was opposition from various areas of the state and thus CFEC limited the legislation to the two species [hair crab and scallops]. In doing so, the next generation issue arose. Under the current limited entry system, the owner of the permit must be on the vessel fishing. However, these are large vessels and the owners are rarely on board. This legislation would allow the owner in the next generation of the permit to hire a skipper to run the boat, as is the current situation. Therefore, the current business practices wouldn't be changed. Number 0633 MAX HULSE, Eagle River Seafoods, testified via teleconference. He reviewed the changes that he would recommend. He clarified that the changes on page 3, line 28, and page 4, lines 9-10, involve the qualifications for future permits issued in the scallop fisheries. On page 3, line 28, after "recent", he suggested inserting the language "and past". On page 4, line 9, he suggested changing "is" to "was" and insert "recent" between "a" and "moratorium". He also suggested changing "may" to "shall" on page 4, line 10. Mr. Hulse explained that if a vessel permit system is established in the future, those fishermen who benefit should be those who have historically been involved in the fishery. Therefore, [these changes would] tie the eligibility criteria to the receipt of a future permit. Number 0840 JOE KYLE (ph) noted that he was representing the Korean Hair Crab fishers. He announced support of Mr. Hulse's suggested changes that are reflected in [Version W]. REPRESENTATIVE McGUIRE mentioned the debate regarding keeping these permits in the hands of Alaskans and Alaskan boats and workers. She inquired as to Mr. Kyle's opinion of that. MR. KYLE answered that he believes the bill is in harmony with all the other things in place at the federal and state level in regard to keeping permits local. However, he noted that there are no guarantees. CHAIR KOTT closed the public testimony. Number 0908 REPRESENTATIVE McGUIRE moved to report CSHB 206 [Version 22- LS0426\W, Utermohle, 2/21/02], out of committee with individual recommendations and the accompanying zero fiscal notes. There being no objection, CSHB 206(RLS) was reported from the House Rules Standing Committee.