03/30/1993 08:40 AM House FIN

  HB 191    An Act  relating to  cost recovery  by contractors                 
            who operate state-owned hatcheries.                                
                                                                               
            HB 191  was reported out  of Committee with  a "do                 
            pass" recommendation" and with a zero  fiscal note                 
            by the Department of Fish and Game dated 3/17/93.                  
                                                                               
  HOUSE BILL 191                                                               
                                                                               
       "An Act relating  to cost  recovery by contractors  who                 
       operate state-owned hatcheries."                                        
                                                                               
  REPRESENTATIVE BILL WILLIAMS testified in support of HB 191.                 
  The legislation  would address  how a  contractor may  spend                 
  cost recovery  monies generated from a  state-owned hatchery                 
  in which that contractor operates  under a contract with the                 
  State.  The  bill is supported by  aquaculture associations,                 
  fishermen, and the Department of Fish  and Game.  He pointed                 
  out that the bill has a zero  fiscal note and indicated that                 
  the fiscal note  would help  to make the  transition of  the                 
  operation  of  the  state  facilities  by  contractors  more                 
  feasible to  accomplish weaning  of the  hatchery operations                 
  from the State funding.                                                      
                                                                               
  Co-Chair MacLean  asked for  an explanation of  "reasonable"                 
  operating costs and questioned if they would include capital                 
  improvements  at  the  hatchery.    Representative  Williams                 
  advised  that  the  Board  of   Director  submits  a  budget                 
  itemizing the costs to run the facilities.                                   
                                                                               
  Representative Brown inquired  if monies from cost  recovery                 
  would be used at  other hatcheries than that from  which the                 
  cost is recovered.   Representative Williams stated  that HB
 will  enable funding of  the Gulkana Hatchery  with Main                 
  Bay Hatchery revenue.                                                        
                                                                               
  GERON BRUCE, SPECIAL ASSISTANT, DEPARTMENT OF FISH AND GAME,                 
  stated the Gulkana  Hatchery is being operated  by the State                 
  using program receipts provided by  the Prince William Sound                 
  Aquaculture Association.   The FY  94 budget proposal  would                 
  turn the facility  over to  a private  firm.   The Board  of                 
  Directors of  each  hatchery  can limit  the  cost  of  each                 
  facility in order that there may  be surplus fish to harvest                 
  by the  users.   The  Department  of Commerce  and  Economic                 
  Development exercises the  authority to determine how  those                 
  funds  are   spent.     Representative  Brown  stated   that                 
  "reasonable" costs vary a lot.                                               
                                                                               
                                                                               
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  Co-Chair MacLean noted her concern  in allowing a contractor                 
  to use State  money for private operations.   Representative                 
  Williams replied  that the  State money  is to  be used  for                 
  State  owned  and  operated  hatcheries.   The  State  owned                 
  hatcheries sometimes do not receive  the cost recovery money                 
  back.                                                                        
                                                                               
  Co-Chair MacLean asked what the profits from the Aquaculture                 
  Corporation are used  for.   Mr. Geron replied,  they are  a                 
  non-profit organization  which does  not make  profit.   The                 
  Department of Commerce and Economic Development allows  them                 
  to build a reserve fund to cushion for catastrophic failure.                 
  Excess fish  provides an opening of the  commercial area for                 
  other fishermen.                                                             
                                                                               
  Representative  Hanley  MOVED  to  report   HB  191  out  of                 
  Committee  with  individual  recommendations  and  with  the                 
  accompanying  fiscal note.  There being NO OBJECTION, it was                 
  so ordered.                                                                  
                                                                               
  HB  191  was reported  out  of  Committee with  a  "do pass"                 
  recommendation and with a zero fiscal note by the Department                 
  of Fish and Game dated 3/17/93.