Legislature(2021 - 2022)ADAMS 519

04/20/2021 09:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 79 SALTWATER SPORTFISHING OPERATORS/GUIDES TELECONFERENCED
Heard & Held
+= HB 80 SPT FSH HATCHERY FACIL ACCT; SURCHARGE TELECONFERENCED
Heard & Held
+= SB 22 INTENSIVE MGMT SURCHARGE/REPEAL TERM DATE TELECONFERENCED
Moved SB 22 Out of Committee
+= HB 126 EXTEND BOARD OF PUBLIC ACCOUNTANCY TELECONFERENCED
Moved HB 126 Out of Committee
+= HB 100 EXTEND WORKFORCE INVEST BOARD ALLOCATIONS TELECONFERENCED
Moved HB 100 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 151 UNEMPLOYMENT BENEFITS FOR COVID-19 TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
HOUSE BILL NO. 80                                                                                                             
                                                                                                                                
     "An  Act   establishing  the  sport   fishing  hatchery                                                                    
     facilities  account;  establishing  the  sport  fishing                                                                    
     facility  surcharge;  and  providing for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
10:09:10 AM                                                                                                                   
                                                                                                                                
Vice-Chair Ortiz MOVED to ADOPT Amendment 1 (copy on file):                                                                     
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "fisheries management,"                                                                                        
          Insert "sport fisheries management, sport"                                                                            
                                                                                                                                
     Page 1, line 11:                                                                                                           
          Delete "research,"                                                                                                    
          Insert "research, and"                                                                                                
          Delete ", and habitat restoration"                                                                                    
                                                                                                                                
     Page I, lines 12 - 14:                                                                                                     
          Delete all material and insert:                                                                                       
               "(2)   the   remainder  of   each   surcharge                                                                    
               collected to  the department's  sport fishing                                                                    
               hatchery  facilities,  allocated  equally  to                                                                    
               each    facility,    for   the    operations,                                                                    
               maintenance,   and    sport   fishing   stock                                                                    
               enhancement projects of the facilities."                                                                         
                                                                                                                                
Co-Chair Merrick OBJECTED for discussion.                                                                                       
                                                                                                                                
Vice-Chair Ortiz MOVED to ADOPT Conceptual Amendment 1 to                                                                       
Amendment 1 (copy on file).                                                                                                     
                                                                                                                                
     Strike lines 5-8                                                                                                           
                                                                                                                                
    On line 13: strike "each facility" and replace with                                                                         
    "the Southeast region hatchery facilities, William                                                                          
     Jack Hernandez Hatchery, Ruth Burnett Hatchery,"                                                                           
                                                                                                                                
Representative Ortiz requested an at ease to pass out the                                                                       
conceptual amendment.                                                                                                           
                                                                                                                                
10:09:53 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:16:26 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair  Ortiz restated  his motion  to adopt  Conceptual                                                                    
Amendment 1 to Amendment 1.                                                                                                     
                                                                                                                                
Representative LeBon OBJECTED for discussion.                                                                                   
                                                                                                                                
Vice-Chair Ortiz  explained that his original  amendment was                                                                    
to help put money back.  It was specifically designed to put                                                                    
money where  it had  been generated  - in  Southeast Alaska.                                                                    
Just shy  of one-third sport fish  license surcharge revenue                                                                    
($1.9 million) was generated from  sport fish license sales.                                                                    
The first  part of his original  amendment further specified                                                                    
that  the  surcharge  was  meant   to  benefit  sport  fish.                                                                    
However, given  the way his amendment  was currently written                                                                    
he was offering  Conceptual Amendment 1 to  Amendment 1. The                                                                    
conceptual  amendment  on line  13  would  strike the  words                                                                    
"each facility"  and replace it  with "the  Southeast Region                                                                    
Hatchery  facilities: William  Jack  Hernandez Hatchery  and                                                                    
Ruth Bernett Hatchery." The  conceptual amendment would also                                                                    
strike  lines  5-8 of  the  amendment  because upon  further                                                                    
review  it  was something  that  was  adopted in  the  House                                                                    
Fisheries Committee.                                                                                                            
                                                                                                                                
Representative  Rasmussen asked  if currently  the surcharge                                                                    
was only  impacting the Southeast  fisheries rather  than it                                                                    
being a statewide surcharge on all licenses.                                                                                    
                                                                                                                                
Commissioner  Vincent-Lang replied  that  the surcharge  did                                                                    
two things.  First, it paid  for the repayment of  bonds for                                                                    
the  Fairbanks  and  Anchorage   hatcheries.  It  also  took                                                                    
$500,000 off  the top for enhancement  projects in Southeast                                                                    
Alaska  in  recognition  that  the state  did  not  build  a                                                                    
hatchery there.  The surcharge ended  in the  prior December                                                                    
when the bonds were paid  off. When the surcharge went away,                                                                    
the $500,000 for Southeast Alaska  was lost. Currently there                                                                    
was no surcharge. The bill  would reinstate the surcharge at                                                                    
a reduced  rate to pay  for long-term state  obligations for                                                                    
the maintenance  of the Fairbanks and  Anchorage Hatcheries.                                                                    
It would  also reinstate the $500,000  payments to Southeast                                                                    
Alaska  non-profit hatcheries  that  provided sport  fishing                                                                    
opportunities.                                                                                                                  
                                                                                                                                
10:20:14 AM                                                                                                                   
                                                                                                                                
Representative  Rasmussen asked  if the  specific hatcheries                                                                    
mentioned  in the  conceptual amendment  included Anchorage,                                                                    
Fairbanks, and  Southeast Alaska.  Commissioner Vincent-Lang                                                                    
did not have the amendment in front of him.                                                                                     
                                                                                                                                
Vice-Chair   Ortiz   answered   Representative   Rasmussen's                                                                    
question. The conceptual amendment  changed the amendment to                                                                    
a regional  distinction because in Southeast  Alaska some of                                                                    
the  resources   taken  from  the  surcharge   went  to  two                                                                    
different facilities   one in  Juneau and one in Petersburg.                                                                    
He  further explained  that  the  original amendment  looked                                                                    
like he  was trying to  get equal distribution  amongst each                                                                    
facility. That  was not his  intent. His intent was  to give                                                                    
equal distribution  to each  region. The  original amendment                                                                    
intent  was  that  each  region   would  receive  and  equal                                                                    
distribution since  the bonds had  been paid in  full. Prior                                                                    
to  the amendment,  significantly  more  resources had  gone                                                                    
towards  the facilities  in Fairbanks  and Anchorage  to pay                                                                    
off the bonds.                                                                                                                  
                                                                                                                                
10:22:38 AM                                                                                                                   
                                                                                                                                
Representative  Rasmussen wanted  to double  check that  the                                                                    
amendment  would  distribute   one-third  to  the  Southeast                                                                    
Region hatchery  facilities, one-third  to the  William Jack                                                                    
Hernandez  Hatchery,  and  one-third  to  the  Ruth  Bernett                                                                    
Hatchery.                                                                                                                       
                                                                                                                                
Mr. Bullard  replied that, if  the intent of  the conceptual                                                                    
amendment  was to  ensure that  the  funds were  distributed                                                                    
regionally, it  would be best  for the amendment  to provide                                                                    
that  they  should  be distributed  regionally  rather  than                                                                    
naming  specific facilities.  He  thought there  could be  a                                                                    
potential  challenge Under  Article  2, Section  129 of  the                                                                    
Alaska Constitution that prohibited local and special acts.                                                                     
                                                                                                                                
Vice-Chair Ortiz  noted that the  purpose of  the conceptual                                                                    
amendment was  to speak regionally  rather than  to specific                                                                    
facilities.  Representative Rasmussen  was confused  because                                                                    
certain  hatcheries were  named. Vice-Chair  Ortiz was  fine                                                                    
with  making  a change  to  the  wording.  He was  happy  to                                                                    
reflect equal  distribution within  the 3 regions.  He asked                                                                    
the  department  if  there  were  any  other  facilities  in                                                                    
Anchorage  or  Fairbanks that  the  state  owned that  would                                                                    
benefit from the surcharge that was being levied.                                                                               
                                                                                                                                
Commissioner  Vincent-Lang clarified  that  the two  primary                                                                    
sport fisheries in  Alaska were the Ruth  Burnett Sport Fish                                                                    
Hatchery in  Fairbanks and the Williom  Jack Hernandez Sport                                                                    
Fush Hatchery  in Anchorage. In Southeast  Alaska there were                                                                    
state-owned  hatcheries that  were owned  and operated  by a                                                                    
private nonprofit (PNP) in  Southeast. Currently, the state-                                                                    
owned  programs  at Crystal  Lake  which  produced fish  for                                                                    
sport fishing as  well as the DIPAC  Hatchery which produced                                                                    
fish for King Slamon. His  intent was to continue to partner                                                                    
with people  in Southeast Alaska  to provide for  some long-                                                                    
term maintenance  associated with those facilities  owned by                                                                    
the state.  In interior Alaska,  the state did not  have any                                                                    
other  PNP hatcheries  in which  it  was subcontracting  out                                                                    
those services.                                                                                                                 
                                                                                                                                
Commissioner Vincent-Lang also noted  that one of the things                                                                    
he had discussed with Vice-Chair  Ortiz was that the expense                                                                    
was  allocated equally  across a  timeframe. He  provided an                                                                    
example.  The  goal was  not  to  distribute equally  on  an                                                                    
annual basis.                                                                                                                   
                                                                                                                                
10:26:56 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:30:54 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice-Chair   Ortiz  WITHDREW   Conceptual  Amendment   1  to                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Representative  Wool   touched  on   the  comments   by  the                                                                    
commissioner  about the  different facilities  being managed                                                                    
differently.  He assumed  they likely  had different  fiscal                                                                    
needs. He asked the commissioner to elaborate.                                                                                  
                                                                                                                                
Commissioner  Vincent-Lang offered  that  the Fairbanks  and                                                                    
Anchorage hatcheries were benefiting  sport fishermen at 100                                                                    
percent. The  hatcheries in Southeast Alaska  were providing                                                                    
a  mix  of  sport  and  commercial  opportunities.  He  used                                                                    
Crystal  Lake as  an example,  a  state-owned facility.  The                                                                    
state  contracted with  the PNP  to provide  fish for  sport                                                                    
fisheries that  were important  in the  Juneau area.  It was                                                                    
important  since the  treaty  had  become more  constraining                                                                    
with  southern  bound  fish.  The   department  had  done  a                                                                    
significant amount of replacement  with fish hatchery stock.                                                                    
The  state  would  use  some of  the  surcharge  revenue  to                                                                    
replace the raceways at Crystal  Lake which were in bad need                                                                    
of  repair.  The  state  could   not  keep  up  its  current                                                                    
production levels  up much less expand  production levels to                                                                    
provide those  opportunities. The department  would continue                                                                    
to  pay  to  support  the  PNPs  to  provide  sport  fishing                                                                    
opportunities at the hatcheries.                                                                                                
                                                                                                                                
10:33:01 AM                                                                                                                   
                                                                                                                                
Representative Wool understood the  concept of spreading the                                                                    
wealth to  different regions  and not  focusing on  a single                                                                    
area.  He also  understood  that the  legislature could  not                                                                    
dedicate  funds.  Even though  a  fee  might be  slated  for                                                                    
something specific, it could be  used for something else. He                                                                    
asked  if  there was  a  crisis  or  shortage in  which  the                                                                    
department could  not pay for  maintenance for  one facility                                                                    
because of  a constraint of  money for another  facility. He                                                                    
asked  if   there  were  facilities  that   were  not  being                                                                    
maintained  or  were  being neglected  because  of  regional                                                                    
funding considerations.                                                                                                         
                                                                                                                                
Commissioner Vincent-Lang  raised the concern  regarding the                                                                    
verbiage  "allocated equally"  because  a future  legislator                                                                    
might claim that  in any given year the  legislature did not                                                                    
give  any money  to Southeast  Alaska. For  example, in  one                                                                    
year   the  department   might   spend   $2.5  million   for                                                                    
maintenance   at  Crystal   Lake   exceeding  the   relative                                                                    
allocation  equally.  He  was looking  for  some  additional                                                                    
guidance to  ensure that,  overtime, the  contributions were                                                                    
based  on the  number of  licenses purchased  in a  specific                                                                    
region.                                                                                                                         
                                                                                                                                
Representative  Wool  referred  to  the  chart  showing  the                                                                    
number of licenses purchased and  commented that it had some                                                                    
relevance. He  heard that 80  percent of them came  from out                                                                    
of state.  There were  also online  purchases which  did not                                                                    
show a  location, but the information  was extrapolated from                                                                    
previous data prior  to heavy usage online.  He was somewhat                                                                    
concerned about  using the location where  the licenses were                                                                    
purchased to determine  where the money was  spent. He noted                                                                    
the   importance  of   maintaining   all   of  the   state's                                                                    
facilities.  He did  not want  to  constrain the  department                                                                    
with any "use it or lose it" parameters.                                                                                        
                                                                                                                                
Co-Chair  Merrick   set  HB  80   aside.  She   thanked  the                                                                    
commissioner for being at the meeting.                                                                                          
                                                                                                                                
HB  80  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 80 Amendment 1 Ortiz 041721.pdf HFIN 4/20/2021 9:00:00 AM
HB 80
SB22 Amendment 1 Josephson 041721.pdf HFIN 4/20/2021 9:00:00 AM
SB 22
HB 79 Amendment 1 Carpenter 041921.pdf HFIN 4/20/2021 9:00:00 AM
HB 79
HB 80 Amendment 2 Carpenter 041921.pdf HFIN 4/20/2021 9:00:00 AM
HB 80
HB 79 Amendment 2 Wool 041921.pdf HFIN 4/20/2021 9:00:00 AM
HB 79
HB 100 Response to Co Chair Merrick 041921.pdf HFIN 4/20/2021 9:00:00 AM
HB 100
HB 80 KRSMA Letter 4-19-2021.pdf HFIN 4/20/2021 9:00:00 AM
HB 80
HB 80 Conceptual Amendment 1 to Amendment 1 Ortiz 042021.pdf HFIN 4/20/2021 9:00:00 AM
HB 80
HB 151 Supporting Document - Employment Effects of Unemployment Insurance Generosity During the Pandemic, 7.14.20.pdf HFIN 4/20/2021 9:00:00 AM
HB 151
HB 151 Supporting Document - NBER Paper, 2021.pdf HFIN 4/20/2021 9:00:00 AM
HB 151