March 18, 2011

Alaska Delegation Introduces Maritime Lien Reform Act

WASHINGTON,
D.C. – The Alaska delegation introduced the Maritime Lien Reform Act of 2011
this week.  The legislation would protect fishermen who hold Alaska
commercial fishing permits.  The legislation also would prohibit maritime
liens from being imposed on permits and protect the right of fishermen to
continue to earn a livelihood by engaging in commercial fishing.  Similar
legislation was introduced in 2006 and 2008 but neither bill became law.

“The
legislation is imperative to protect all fishermen’s ability to continue to
make a living and provide income for their families and to meet their debts,”
said Sen. Murkowski. “It will keep fishermen on the water employed with the one
asset in which they can keep earning a living and address their
creditors.” 

“Commercial
fishing is the backbone of the economy in Alaska’s coastal communities and an
individual’s fishing permit needs to be protected,” Sen. Begich said. “This
bill will prevent fishermen from having a lien slapped on their ability to
fish, and allow them to work through problems they may have. It will help keep
permits in local communities and keep fishermen working.”

“Commercial
fishing is one of the largest industries in our state and a valuable commodity
not only to Alaska but to the country,” said Rep. Young.  “This bill
protects fishermen’s ability to make a profit and pay off their debts without
taking away their prime source of income.  Debts cannot be paid off if
there are no earnings, so this legislation is a win-win for fishermen,
creditors, and Alaska.”

Alaska
law already prohibits liens on Alaska limited entry permits, but a court
decision threw that into doubt by determining that a fishing license was
subject to a maritime lien under Federal Admiralty Law.  The decision has
become the rationale for attempts to take Alaskan fishing permits in federal
bankruptcy court and the legislation is the best way to protect these permits
and fishermen.

The
legislation would not only benefit Alaskan residents.  There are over
13,000 individuals who hold Alaska Commercial Entry Permits.  While
approximately 75% of the permits are held by Alaskan residents, permit holders
live in all 50 states.

 

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