Legislature(2001 - 2002)
03/04/2002 09:10 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 282(L&C)
"An Act extending the termination dates of certain activities
and salmon marketing programs of the Alaska Seafood Marketing
Institute and of the salmon marketing tax; expanding the
allowable use of that tax for the salmon marketing programs of
the Alaska Seafood Marketing Institute; relating to the Alaska
Seafood Marketing Institute's salmon marketing committee; and
providing for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
SENATOR BEN STEVENS, sponsor, testified this legislation extends
the termination date of the one-percent salmon tax to the year 2008
and permits the revenue to be used in current Alaska Seafood
Marketing Institute (ASMI) programs. He informed this would be the
second extension of this tax since its enactment in 1993.
Senator Stevens told how ASMI uses the funds to promote the quality
and "superiority" of Alaskan seafood products and to increase world
consumption. He emphasized this is the only generic program in
Alaska to promote all Alaska's seafood products in the global
protein market.
Senator Ward asked if "niche" marketing is necessary to focus on
certain fisheries, such as the Copper River sockeye salmon.
Senator Stevens replied the "brand marketing program" debate has
been ongoing in ASMI but that the organization continues to operate
as a generic marketing program. He expressed that to allocate
funding to regional efforts would dilute the overall efforts.
Senator Ward stated this legislation may not be the entity to begin
these efforts, but shared that Cook Inlet fisherman have requested
a portion of the salmon tax be utilized to market their catch.
Senator Olson asked about the opinions from within the industry
regarding continuation of the one-percent tax.
Senator Stevens relayed the ASMI Board favors the extension and
that no testimony heard on this bill in the Senate Labor and
Commerce Committee opposed elimination of ASMI. He qualified there
are some concerns that have always been present.
Senator Green noted the sponsor statement references the One-
Percent Domestic Salmon Marketing Tax and asked if this is the
official name.
Senator Stevens affirmed this is the official name although this
legislation would change the name to the Salmon Marketing Tax.
BRUCE SCHACTLER, Commercial salmon fisherman, At-Large Member,
Board of Directors, United Fishermen of Alaska, and President,
United Salmon Association, testified via teleconference from Kodiak
about a perceived rush to pass this legislation. He stated he does
not oppose using a portion of the tax revenue for foreign marketing
efforts; however, the tax originally gained approval in part from a
promise that the funds would be expended solely to develop the
domestic market and the matter should be discussed before such
changes are made. He also encouraged further consideration of
expending funds for lobbying efforts in Washington DC to address
farmed salmon and foreign competition.
CHRIS BERNS testified via teleconference from Kodiak that he has
fished since 1970 and he supported the one-percent industry tax and
had lobbied for its implementation in 1993 based on the assumption
that it would be used for domestic marketing. He stated that the
United States is the primary market for farmed salmon. While he did
not oppose "giving flexibility" to the ASMI marketing committee to
expend funds for foreign marketing, he asserted, "foreign markets
are just a big giant hole" and past efforts have been ineffective.
He suggested giving this legislation further consideration as the
current extension does not expire until the following year.
SFC 02 # 24, Side B 10:00 AM
Mr. Berns continued that the salmon industry is the only seafood
producer in the state to pay a tax for the marketing efforts. He
did not see any benefit for himself from this tax.
Co-Chair Kelly asked Senator Stevens to address the comments.
Senator Stevens addressed Mr. Schactler's comments regarding
utilizing funds to lobby in the nation's capital. Senator Stevens
noted this was discussed but not incorporated in the legislation,
as the United Salmon Association was the only organization in
support of the plan and because it was determined this was not the
best use of the funds given the limited amount available. He also
noted this legislation is not being rushed and that most of Mr.
Schactler's concerns were addressed at the Senate Labor and
Commerce Committee. He stated the extension date is being
implemented one year earlier to allow ASMI to make long-term plans.
Senator Ward understood one witness suggested that a subcommittee
of the proposed salmon task could address the concerns raised. He
asked the sponsor's opinion.
Senator Stevens responded ASMI needs stability to allow it to plan
for the future. He expressed there is uncertainty as to the results
of the task force and therefore ASMI should not be dependant on its
outcome.
Senator Stevens referenced the statement that the salmon industry
is the only seafood industry paying a tax. He pointed out that
processors pay a .3 percent tax for all seafood products.
Senator Austerman supported reauthorizing ASMI during this
legislative session because of the time lapse involved in planning
efforts. He suggested the task force could review the issues and if
it recommended, the extension could be repealed.
SUE ASPELUND, Executive Director, Cordova Fisherman United, spoke
to the knowledge of the organization and the full support of
continuation of the one-percent tax. She relayed support for
lifting the restrictions against foreign marketing. She stressed
the importance of seafood marketing and preferred funding marketing
versus lobbying efforts.
BARBARA BELKNAP, Executive Director, Alaska Seafood Marketing
Institute, testified in Juneau to respond to witness statements.
She told of the history and diversity of representation on the
board. She stated that the board of directors supports removal of
the domestic marketing limitation, and that the issue of lobbying
was not addressed during the previous board meeting. She stressed
ASMI is not a trade organization. She spoke to the disadvantages of
lobbying, as any standpoint the agency lobbies in support of would
meet opposition from other entities the agency represents. She told
of the Salmon Marketing Committee that oversees the expenditure of
the marketing funds. She mentioned difficulties incurred the
previous time ASMI was due for reauthorization as commitments could
not be made until continuance of the program was guaranteed.
JERRY MCCUNE, United Fishermen of Alaska, testified in Juneau,
about the 29 groups represented by the organization, which supports
the committee substitute and international marketing. He noted the
original intent of the tax was to focus marketing on the domestic
market, which he stated has occurred. However, he noted new
international markets are emerging for generic salmon.
KATHY HANSON, Executive Director, Southeast Alaska Fishermen's
Alliance testified in Juneau in support of the renewal of ASMI and
the importance of renewing this year rather then waiting until the
term expires. She stated that removing the restrictions related to
international marketing would be beneficial, noting that most of
the funds would continued to be used for domestic marketing
although ASMI should have flexibility to take advantage of the
international market. She spoke of ASMI successes in using funds to
leverage additional funds.
Ms. Hanson addressed changing the number of members on the ASMI
board. She stated the organization was unable to reach consensus.
She relayed some of the arguments in favor and opposition.
AT EASE 10:17 AM / 10:19 AM
Senator Austerman emphasized this bill must be adopted this year.
He informed that the original version of the bill maintained the
domestic marketing restrictions and it reduced the number of
members on the board. He relayed that productive debate occurred in
the Senate Labor and Commerce Committee about these issues as well
as the potential for utilizing a portion of the tax revenues for
lobbying efforts. He stated his opinion is that the domestic
marketing restriction should remain as it weakens the program. He
shared that he had made the suggestion to expend some of the tax
revenues for lobbying efforts, but withdrew after hearing arguments
against the proposal. He expressed he would not offer an amendment
to the committee substitute, citing that "the industry has spoken".
Co-Chair Kelly noted Co-Chair Donley had questions regarding the
fiscal note and requested he consult with the sponsor.
Co-Chair Kelly ordered the bill HELD in Committee.
AT EASE 10:21 AM / 10:32 AM
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