9:28:29 AM CS FOR HOUSE BILL NO. 484(FSH) "An Act allowing for revenue received from issuance of additional entry permits to be appropriated for reimbursement to salmon fishery associations." This was the second hearing for this bill in the Senate Finance Committee. 9:28:59 AM REPRESENTATIVE PEGGY WILSON, Sponsor of the bill, testified that she agreed to the changes requested by the Committee. 9:29:22 AM Co-Chair Wilken moved for adoption of SCS CS HB 484, 24- LS1693\Y, as a working document and objected for discussion purposes. Representative Wilson explained the addition of a subsection to the bill that would provide that an appropriation made under the subsection must be made within 30 years after the date the money was expended or the debt was incurred. 9:30:06 AM Co-Chair Green emphasized the difficulty of the issue and the need for assurances to prohibit litigation. This matter is not easy to understand and she appreciated the sponsor's and other's efforts. 9:30:34 AM Senator Stedman expressed "discomfort" with 30-year time limit. Co-Chair Wilken removed his objection to the adoption of the committee substitute. Without further objection SCS CS HB 484, Version "Y" was ADOPTED as a working document. 9:31:17 AM Amendment #1: This amendment reduces the number of years, from 30 to 15, in which the legislature may appropriate to a participating salmon fishery association for reimbursement of expenses it incurred in the implementation of a fleet reduction program, any revenue resulting from the sale of permits for the same fishery. Senator Stedman moved for adoption. Senator Stedman pointed out that the earlier provision did not stipulate a timeframe, which provided the legislature with latitude to determine appropriate reimbursement. Many changes have occurred in the commercial fishing industry over 30 years. A 15-year time limit would be more applicable to allow the legislature to gauge economic gains in the industry. 9:33:08 AM Co-Chair Green shared these concerns. However, the time limit of 30 years was chosen because it is the length of the loan. The association, in collecting funds to buy permits, does not have any control over when it could be directed to issue additional permits. 9:33:48 AM Senator Stedman understood the argument, but pointed out that the association could follow a different timeframe and not utilize the debt. The 30-year proposal represents an "unwieldy amount of time." In conversations he had with representatives of the United Fisherman of Alaska, he did not fault their preference of the 30-year limit. 9:34:31 AM Senator Olson, as commercial fisherman, understood the fluctuation of prices. A 30-year time limit is appropriation and would alleviate pressure on fishers to resolve the issue. 9:35:20 AM Representative Wilson expressed concern that because fisherman do not have the money and are considering taking out a loan, they would be taking a risk since the long term prices are unknown. A provision on this legislation to last at least the length of the loan would provide some assurance. This would also assist then in obtaining the loan given the guarantee provided. 9:36:13 AM FRANK HOMAN, Commercial Fisheries Entry Commission, testified in Juneau in agreement with Representative Wilson. Commercial fishers, to form an organization to buy back the permits, would be required to obtain a 30-year loan. The provision of the committee substitute would protect these borrowers during the term of the loan against a situation in which the State issued additional permits. A roll call was taken on the motion to adopt the amendment. IN FAVOR: Senator Stedman OPPOSED: Senator Olson, Senator Dyson, Senator Hoffman, Co-Chair Wilken and Co-Chair Green ABSENT: Senator Bunde The motion FAILED (1-5-1) The amendment FAILED to be adopted. 9:38:35 AM Co-Chair Wilken offered a motion to report SCS CS HB 484, 24- LS1693\Y, from Committee with individual recommendations and accompanying fiscal note. There was no objection and SCS CS HB 484 (FIN) was MOVED from Committee with zero fiscal note #1 from the Department of Fish and Game.