Legislature(2005 - 2006)
05/02/2005 02:33 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| SB141 | |
| SB147 | |
| SB16 | |
| SB139 | |
| SJR11 | |
| SB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 147(FIN)
"An Act providing for a sport fishing facility
surcharge on sport fishing licenses; providing for the
construction and renovation of state sport fishing
facilities and for other projects beneficial to the
sport fish resources of the state as a public
enterprise; and authorizing the issuance of revenue
bonds to finance those projects."
Representative Holm noted that the companion bill to SB 147
is HB 252 [sponsored by Representative Holms]. He spoke in
support of the legislation.
SENATOR RALPH SEEKINS, SPONSOR, explained that the
legislation would provide a sport fishery surcharge to
reconstruct and construct new sport fish hatcheries in the
state and enhance or expand the recreational fishing
opportunities around the state.
Alaska has an ever-growing demand for fish stocks. More
people want to fish. Resident populations are growing.
Tourist demand for recreational opportunity is
increasing. And, at the same time, sport fish
production is decreasing. Alaska's only sport fish
hatcheries are located at Ft. Richardson and Elmendorf
A.F.B. Both are more than 30 years old and nearing the
end of their useful life.
To make matters worse, biomass production will soon
plummet. Hatcheries require warm water to enhance
growth in baby fish. Waste heat from the Ft. Richardson
and Elmendorf power plants has provided that energy for
many years. Both power plants will be shutting down hot
water production in October. As a result, biomass
production will suffer greatly at the same time that
demand is increasing.
We can fix this problem and plan for years to come.
Senate Bill 147 provides for the renovation and
expansion of the Ft. Richardson and Elmendorf
facilities to meet south central needs. Furthermore, it
will also provide for a new hatchery in Fairbanks to
meet the demands of the interior regions. (Currently
hatchery fish are trucked from Richardson into the
interior for planting.)
It won't be cheap but it is affordable. Federal funds
have been procured to meet increased demand due to
military expansion.
Senator Seekins observed that there are some environmental
problems in the Fairbanks area that can be cured by using
hot water from the Chena V power plant. Some of the BTU's
can be taken out of the water before it is discharged back
into the river. Educational facilities with the University
of Alaska School of fisheries can be enhanced and visitor
facilities created for school aged kids. He anticipated that
Senator Stevens would be able to provide $10 million toward
this effort.
Senator Seekins observed that a new fish hatchery building
with a salmon modular would be built at Ft. Richardson. He
observed that 95 percent of the fish from this would go to
sport fisheries. He emphasized that the legislation would
allow the conversion of fishing into catching. The
facilities would be expandable for up to 20 - 25 years.
Senator Seekins explained that once the bonding mechanism is
paid off the surcharge would end. Every dollar earned would
go to pay down the indebtedness.
Senator Seekins stressed the statewide benefit. The
Wrangell/Petersburg Crystal Lake Hatchery would receive $2.5
million; the Sitka/Haines hatchery would receive $1.5
million; and the Skagway hatchery would receive $1.6.
2:47:17 PM
Co-Chair Chenault asked where the fish are deposited after
they are reared. Senator Seekins explained that the fish go
into the lakes and streams of the interior, Kodiak Island,
the Kenai Peninsula, and through South Central Alaska.
2:48:29 PM
Vice-Chair Stoltze asked if inclusion of game licenses was
discussed. Senator Seekins explained that game licenses were
included in SB 170. He observed that there has been
indication that the public would support an increase in
hunting licenses if there is a greater opportunity to bring
something home.
Vice-Chair Stoltze noted that the Susitna Advisory Board has
shown some support for the legislation and suggested a fee
increase of $5.00. Senator Seekins observed that deposits
into the Fish and Game Fund must be sufficient to pay off
the indebtedness. The initial figure was $7.50. The charge
was increased to $8.50 to cover the additional $5.5 million
that went into Southeast Alaska. He termed it a user-benefit
surcharge.
2:52:18 PM
Vice-Chair Stoltze referred to legislation, which would name
the Fairbanks hatchery after Ruth Burnette.
Representative Weyhrauch explained that the only complaint
he has received is that the $8.50 fee would require vendors
to carry change. He suggested an amendment to round down the
amount to $8.00 in order to eliminate the need for change.
Senator Seekins questioned if the reduction would jeopardize
the bond issues and prevent fully-funding the projects. He
suggested rounding it off to $9.00 if the bonding authority
felt it was necessary.
Representative Kelly WITHDREW Amendment 1, which would have
lowered the amount to $7.50.
2:56:24 PM
JIM PRESTON, JUNEAU, spoke as a charter operator and license
vendor. He testified in support of the proposed amendment by
Representative Weyhrauch, which would eliminate the need to
carry quarters around. He argued for "whole dollar amount"
fees. He spoke in support of SB 147.
3:00:08 PM
RICKY GEASE, EXECUTIVE DIRECTOR, KENAI RIVER SPORTFISHING,
testified in support of SB 147. He stressed the need to
upgrade the hatcheries and note that demand on the fisheries
is growing. He agreed that the surcharge should be
eliminated after the bond is paid.
3:01:28 PM
Vice-Chair Stoltze asked if limiting set nets or the bill
would provide the most benefit. Mr. Gease answered both.
Co-Chair Chenault asked for Mr. Gease's opinion on the
rounding up or down to a whole number. Mr. Gease stated that
he would support, whichever amount supported the proposal.
3:02:48 PM
Representative Weyhrauch MOVED to ADOPT Amendment 2:
Page 3, lines 23, 24, 25
Delete $8.50
Insert $8.00
Page 3, line 29
Delete $8.50
Insert $10.00
Co-Chair Meyer OBJECTED.
Representative Weyhrauch reiterated his reasoning and
requested comments from Mr. Mitchell.
3:04:15 PM
DEVON MITCHELL, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL BOND
BANK AUTHORITY, DEPARTMENT OF REVENUE, related that the
fiscal note by the department contemplated a 20-year bond.
He felt that the legislation allowed flexibility and zero
impact would be easy to manage.
Representative Croft opined that the numbers are slightly
positive.
3:05:47 PM
Mr. Mitchell had not examined the numbers by the Department
of Fish and Game. He noted that if there is a positive
impact that it is the sponsor's intent return any funds.
3:06:47 PM
Representative Hawker inquired if the extra revenue would be
dedicated to early retirement of the debt. Mr. Mitchell
agreed and clarified that the intent is to accelerate the
debt repayment and shorten the schedule. Representative
Hawker spoke in support of increasing $8.50 to $9.00.
3:08:20 PM
Mr. Mitchell noted that the Department of Fish and Game's
fee collection has been growing. The amounts suggested are
based on current numbers, not projected numbers.
Representative Weyhrauch suggested Representative Holm make
a friendly amendment as such.
3:09:47 PM
Representative Holm offered a friendly amendment to
Amendment 2, changing $8.00 to $9.00 on page 3, lines 23-25.
Representative Weyhrauch restated the friendly amendment to
Amendment 2.
Vice-Chair Stoltze and Co-Chair Chenault OBJECTED.
3:12:56 PM
Mr. Mitchell pointed out that page 4, line 1 and 2 would
also need to be changed if the intent is to go to whole
numbers.
Representative Croft observed that the other cites are for
non-resident military fishing and small game licenses, which
would have a small impact. He suggested sticking to the
lower number of $8.00 for these uses. He also asked about
the implications of the Carlson Case.
3:15:32 PM
KELLY HEPLER, DIRECTOR, DIVISION OF SPORT FISH, DEPARTMENT
OF FISH AND GAME, addressed the Carlson case, which applies
to commercial issues. He did not feel there would be a
problem.
3:16:47 PM
Representative Croft asked for more information regarding
the use of the Fairbanks hatchery stock. Mr. Hepler related
that the two hatcheries, Ft. Richardson and Elmendorf,
provide all of the stock for Homer to the Alaskan range. The
new hatchery is proposed in Fairbanks to take care of the
Interior needs. The Ft. Richardson hatchery would be
refurbished to take care of area south of the Alaskan range
to Kodiak.
Vice-Chair Stoltze inquired how long this surcharge would be
in place. Mr. Mitchell replied that the fiscal note was
based on 20 year leveraging. He estimated that the term
could be shortened to 17 years or less.
In response to a question by Representative Stoltze, Mr.
Hepler explained that the Ft. Richardson hatchery would be
located on a former Air Force Base facility, with no
practical public access. The facility will be for production
only; there would not be anything fancy about the facility.
The Fairbanks facility would be built for production. There
have been discussions of additional money that would make
the facility more "pleasing to the eye", but without
becoming a visitor center. There have been discussions
regarding housing at Ft. Richardson, similar to what is at
Fairbanks.
3:21:05 PM
GORDON GARCIA, PROJECT MANAGER, DIVISION OF SPORT FISH,
DEPARTMENT OF FISH AND GAME, described the facility and the
attempt to reduce costs. He noted that the Fairbanks
facility has been scaled back to reduce costs. The amount
raised through the legislation would fund the building.
3:21:39 PM
Mr. Mitchell noted that there is a dedicated fund that
cannot crossover into other needs.
3:22:11 PM
Vice-Chair Stoltze expressed concern that the angler
surcharges not be used to pay for any "grand ideas".
3:23:28 PM
Mr. Hepler emphasized that the facility would be a
production facility. He stressed that without fish there is
no hatchery.
3:24:24 PM
Representative Kelly summarized that the amendment to the
amendment is to lower the fee to $8.00.
Representative Croft clarified that the amendment to the
amendment would take the fee to $9.00. His objection would
leave it at $8.00.
3:25:39 PM
Co-Chair Chenault observed that $9.00 would provide $2.47
million more that the original proposal.
3:26:37 PM
Representative Holm observed that the concern is that the
amount be whole, but emphasized that $8.00 would not be
sufficient to fully fund the project. He pointed out that
any extra funds would only pay off the debt earlier. He
noted that most projects do not come in at their estimated
price.
3:28:21 PM
A roll call vote was taken on the motion to amend Amendment
2 to "$9.00".
IN FAVOR: Hawker, Holm, Kelly, Moses, Weyhrauch, Meyer
OPPOSED: Foster, Joule, Stoltze, Croft, Chenault
The MONTION PASSED (6-5).
Co-Chair Meyer MOVED to ADOPT Amendment 2, as amended.
A roll call vote was taken on the motion to adopt Amendment
2.
IN FAVOR: Hawker, Holm, Joule, Kelly, Moses, Weyhrauch,
Foster, Chenault, Meyer
OPPOSED: Stoltze, Croft
The MOTION PASSED (9-2).
Representative Hawker spoke in support of the legislation
and noted the need for the new facility.
3:33:59 PM
Representative Holm thanked the Department of Fish and Game.
3:34:19 PM
Representative Holm MOVED to report HCSSB 147 (FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HCSSB 147 (FIN) was REPORTED out of Committee with a "no
recommendation" recommendation and with three fiscal impact
notes: #1 REV, #2 DFG, #3 DFG.
3:35:08 PM
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