SENATE RESOURCES COMMITTEE February 3, 1995 3:45 P.M. MEMBERS PRESENT Senator Loren Leman, Chairman Senator Drue Pearce, Vice Chairman Senator Steve Frank Senator Rick Halford Senator Lyman Hoffman COMMITTEE MEMBERS ABSENT Senator Robin Taylor Senator Georgianna Lincoln COMMITTEE CALENDAR SENATE JOINT RESOLUTION NO. 3 Opposing the ban on the export of Alaska North Slope crude oil; endorsing federal legislation to remove restraints on the export of Alaska North Slope oil; requesting the Congress of the United States to pass legislation to permit the export of Alaska North Slope crude oil; and urging the President of the United States to support the legislation to lift the ban on the export of Alaska North Slope crude oil. SENATE BILL NO. 3 "An Act relating to an antitrust exemption for persons engaged in the fishing industry." SENATE BILL NO. 21 "An Act relating to penalties for violations of commercial fishing laws." SENATE BILL NO. 41 "An Act relating to reports by fishing vessels that are not registered under the laws of the state." PREVIOUS ACTION SJR 3- See Resources minutes dated 1/25/95 and 1/27/95. SB 3 - See Resources minutes dated 1/25/95 and 1/27/95. SB 21 - See Resources minutes dated 1/25/95. SB 41 - No previous action to record. WITNESS REGISTER John Ringstad BP Exploration Alaska P.O. Box 196612 Anchorage, AK 99519 POSITION STATEMENT: Supported SJR 3. Louis Menendez 618 Sixth Street Juneau, AK 99801 POSITION STATEMENT: Opposed SB 21. Terry Otness, Legislative Aide Senator Taylor State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Commented on SB 41. ACTION NARRATIVE TAPE 95-5, SIDE A Number 001 SRES 2/3/95 SJR 3 EXPORT OF ALASKA OIL   CHAIRMAN LEMAN called the Senate Resources Committee meeting to order at 3:45 p.m. and announced SJR 3 to be up for consideration. SENATOR HOFFMAN moved to adopt amendment #1. There were no objections and it was so ordered. JOHN RINGSTAD, BP Exploration Alaska, said BP had been working actively on this issue on a federal level for several years and  would support the resolution in any way they could. Number 53 SENATOR PEARCE moved to discharge SJR 3 (am) from Committee with individual recommendations. There were no objections and it was so ordered. SRES 2/3/95 SB 3 ANTITRUST EXEMPTION FOR FISHERMEN  SENATOR LEMAN announced SB 3 to be up for consideration. He said the Committee had already heard substantial support for this bill and no testimony in opposition. SENATOR PEARCE added that this bill passed the Senate with no opposition in the last Legislature and died in the House. SENATOR PEARCE moved to discharge SB 3 from Committee with individual recommendations. There were no objections and it was so ordered. SRES 2/3/95 SB 21 FINES FOR COMMERCIAL FISHING VIOLATIONS  SENATOR LEMAN announced SB 21 to be up for consideration. SENATOR HALFORD moved to adopt the CS to SB 21. There were no objections and it was so ordered. SENATOR HALFORD explained that the CS changes the penalties to $6,000 and $12,000. It leaves the penalty for the first conviction at $3,000. SENATOR LEMAN said most of them would probably agree that the area they would like to get at is the Egegik area and his intent is that the ADF&G and the Board of Fisheries take some action regarding physically identifying that line. Number 128 LOUIS MENENDEZ, former Prosecuting Attorney for the State of Alaska, said he worked in Bristol Bay for about five of his 15 years. He thought this bill would not pass a challenge in the Court of Appeals. He also thought this was more of a management issue and perhaps allocation of the number of boats could be accomplished by a lottery system or something like that. Increasing the penalties will not work, he said. SENATOR FRANK asked on what grounds it would be challenged. Mr. Menendez answered "strict liability." He explained that this statute has no showing of intent for wrongdoing. Applying more of a penalty would make it more criminal in nature and as a result some mental state would have to be incorporated. SENATOR LEMAN said he understood the Court of Appeals has already approved penalty up to $5,000. SENATOR HALFORD agreed and added that was done in 1980. Mr. Menendez reiterated that he didn't think this legislation would pass the Court of Appeals and that it was really a management issue. He also noted that it would be subject to abuse. For instance, if you pick up a fisherman on the line and bring him into a situation where he has to plead guilty or not guilty, you could threaten him. You could say plead to the misdemeanor or plead to the violation. Then you could say the violation will be as much as whatever fine you want to make it. It's dangerous leverage. Number 215 SENATOR HALFORD moved to pass CSSB 21 from Committee with individual recommendations. There were no objections and it was so ordered. SRES 2/3/95 SB 41 REPORTS BY OUT OF STATE FISHING VESSELS  SENATOR LEMAN announced SB 41 to be up for consideration. TERRY OTNESS, Legislative Aide to Senator Taylor, said he would answer questions on SB 41. He said this legislation would require foreign fishing vessels transiting or lying in state waters to report their catch by species, quantity, and area where harvested. The Ketchikan Trollers Committee requested this legislation in response to the rapid expansion of the fisheries off the Capes and it is hoped with increased data from the foreign fleet that there will be better in-season management data. SENATOR PEARCE said she once tried to say that foreign tankers had to provide the state information about their cargo and was told by our Department of Law and the Coast Guard that the State of Alaska has no right to require foreign ships to do anything in our waters, but the Coast Guard can. She asked if he had considered that. MR. OTNESS said he hadn't talked to the federal government, but our Department of Law thought this was permissible, because we have a legitimate interest in the management and are not interfering with commerce. SENATOR PEARCE noted that her problem was not with commerce, but with maritime law which is a separate body of law. SENATOR PEARCE moved to discharge SB 41 from Committee with individual recommendations. There were no objections and it was so ordered. SENATOR LEMAN thanked everyone for their participation and adjourned the meeting at 4:07 p.m.