SENATE BILL NO. 225 "An Act relating to the grant of certain state land to the University of Alaska; relating to the duties of the Board of Regents; relating to deposits made to the Alaska permanent fund received from certain lands conveyed to the University of Alaska; ratifying and reauthorizing certain prior conveyances of land to the University of Alaska; making conforming amendments; and providing for an effective date." 10:11:46 AM TIM BENINTENDI, STAFF, SENATOR OLSON, commented on the legislation. He introduced a program implemented by the National Marine Fisheries Service providing loans to groups with the purpose of reducing fleet capacity by engaging in permit buy backs as authorized by AS1640250. The Southeast Revitalization Association is engaged in such an arrangement accommodating those in the Southeast sane fishery and operating with a self imposed three percent fee on fish sales. This fee is the basis for repaying federal loans. The objective is to drop from 380 permits to approximately 260 permits. He noted that SB 255 authorizes the Department of Fish and Game and the Commercial Fisheries Entry Commission to release to the National Marine Fisheries Service individual fish ticket data held by the state supporting monitoring the loan program by allowing confirmation of correct assessments and payments. He added that an issue emerged between permit holders and a processors association regarding the eventual final number of permits to remain active in the fishery. He noted that SB 255 does not address a target number of permits upon completion of the "buy back" program. While the permit holders have expressed an interest in reducing the number to approximately 260, the processors express concern that too few permits remaining might impact the economic viability of the fishery and investments made in Alaskan facilities. A memorandum of agreement was struck whereby the Southeast Revitalization Association agreed that no fewer than 260 permits would remain in the fishery following a successful "buy back" program. A legislative letter of intent was produced to solidify the agreement. Co-Chair Stedman noted the two zero fiscal notes from the Department of Fish and Game and the Department of Revenue. 10:15:40 AM FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISSION, commented on the legislation as the completion of a series of attempts to incorporate a program authorized by the Alaska Legislature in 2002. The association was created with the goal of limiting the number of permits in the fishery. State statutes in 2002 and 2006 show that the program was facilitated by the Alaska Legislature and the fishermen have convened with the National Marine Fisheries Service to utilize a federal loan program to repurchase permits. The loan program from the National Marine Fisheries Service requested a process to confirm that the three percent assessment to be paid by the fisherman is monitored. He mentioned that fifty percent of the permits are not fished meaning that the removal of the permits will not have a significant impact, but the future of the fishery will be enhanced by the remaining fishermen. He pointed out that the state retains all authority for future management of the fishery. 10:19:03 AM Senator Olson asked if the permits given by the limited entry commission could be transferred from generation to generation. Commissioner Homan responded that a limited entry permit does not come back to the state except in a buyback by the state. Mr. Homan responded that a provision was incorporated at the beginning of the program to incorporate the suggestion made by Senator Olson. A limited entry permit can be transferred from generation to generation by the permit holder. 10:20:21 AM ROB ZUANICH, MANAGER, SOUTHEAST REVITALIZATION ASSOCIATION (via teleconference) testified in favor of the legislation. He noted that the association exists for the sole purpose of implementing a program to reduce or buy back the number of permits in the fishery. The bill before the committee is essential to the implementation of the program and the background can be summarized. He echoed comments of Commissioner Homan. He stressed that the bill has great support from Southeast Alaskan salmon fishermen and processors. 10:22:27 AM BOB THORETENSON, EXECUTIVE DIRECTOR, SEAS, added that he moved to Alaska six years ago for the sole purpose of achieving the fleet consolidation. He anticipated funding initially to be grant related, but $3 million in grant funding was the limit. He pointed out that the legislature financed over 20 percent of the program and the remaining 80 percent belongs to the loan. He spoke to the importance of the legislation as it links the National Fisheries in the federal loan program to ensure utilization by State Waters Fisheries. 10:24:58 AM MICH EIDE, BOARD MEMBER, SEAS, testified in support of the legislation. He urged the committee's support. Senator Olson asked for an idea about the potential negative impact of the bill. Mr. Eide responded that additional boats do not mean additional fish. 10:26:50 AM SB 225 was HEARD and HELD in Committee for further consideration.