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Committee hears proposal to bar repeat elver‑dealer violators from reusing the same facility
Summary
Representative Abden Simmons introduced LD 1094 to prevent facilities with repeated elver‑dealer violations from obtaining new dealer licenses at the same address for five years; DMR said the scheme raises legal and property‑rights questions because dealer licenses can be issued to LLCs and urged AG/OPLA review.
Representative Abden Simmons told the Marine Resources Committee he introduced LD 1094 after repeated incidents in which elver dealer facilities continued to operate after individual dealers lost licenses by forming new entities or transferring the license to others.
"When a facility has violated elver laws multiple times, it can still be used," Simmons said, explaining the bill would tie the dealer license restriction to the facility address and prevent a new license from being issued for five years after a violation at that location unless there is a bona fide property transfer at fair market value.
Deirdre Gilbert, DMR's Director of State Marine Policy, testified neither for nor against the bill but described practical and legal complications. DMR currently issues dealer licenses to a "person," a definition that can include corporations and LLCs; the department already collects information about principal operators to reduce simple shell‑company workarounds, but she said a suspended dealer can still create a new corporate entity and continue to benefit from the same facility.
Gilbert warned that a strict facility bar could inadvertently penalize innocent property owners or lessors who had leased space to a dealer and could create legal exposure for DMR without additional legal analysis. She said the department had asked the Attorney General's Office for input and recommended a thorough review by the Office of Policy and Legal Analysis before enacting the proposed restriction.
Committee members discussed possible carve‑outs, such as exempting bona fide transfers at fair market value, or requiring better information collection on LLC ownership and beneficial control. Representative Simmons indicated he was open to an amendment to permit property transfers at fair market value.
The committee closed the public hearing on LD 1094 and scheduled a work session to consider agency and AAG feedback.
