Legislature(2003 - 2004)
04/27/2004 01:32 PM Senate L&C
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CSHB 419(RES)-REGIONAL SEAFOOD DEVELOPMENT ASS'NS./TAX
CHAIR CON BUNDE announced CS HB 419(RES) to be up for
consideration.
REPRESENTATIVE DAN OGG, sponsor, said HB 419 came out of the
Joint Legislative Salmon Task Force. Fishermen wanted a way to
tax themselves so they could develop their seafood products. The
idea initially came from the Copper River where fishermen
advertise their Copper River Red Salmon, the first salmon
fishery of the year and they are highly prized in the west coast
markets. Some of the grants to help develop their program are
ending and other areas of the state have got the idea of
marketing regional fish. Kodiak and Cook Inlet are working on
similar programs. Twelve regions were developed in the state in
which to administer these programs and each area would have one
program. The bill allows 21 percent of a region's permit holders
to apply to the Department of Community & Economic Development
(DCED) for an election to form an organization. If 51 percent of
the permit holders vote in favor, they form an organization. The
bill allows them to tax themselves in an election in which they
pick a .5, 1, 1.5 or 2 percent taxation rate. If it passes, they
have established their assessment. This bill also gives them the
power to provide an infrastructure for improvements like fish
chillers for members' use.
TAPE 04-36, SIDE A
REPRESENTATIVE OGG explained that folks could untax themselves
with the same method. Twenty-five percent of the permit holders
could ask for a new election to untax.
MR. JERRY MCKUNE, United Fishermen of Alaska (UFA), said a lot
of fishermen in the state are excited about this bill. Grants
are drying up as the sponsor said and this would allow a lot of
fisheries to raise $200,000 to $300,000 at the 1 percent range.
This will also allow fishermen to work with processors and
others in the communities to put promotional programs together
and get more value off the salmon and work on quality problems,
such as installing ice machines in remote areas.
CHAIR BUNDE asked if he knew of any opposition to this bill.
MR. MCKUNE replied that probably some fishermen would get
worried with talk about taxes.
If you have a use for this money, you have to convince
your fleet to take this on and have an election,
you're going to have to do some education of that
fleet to convince them why you want to use the
money.... plus every fisherman gets to sit on the
committee that's in that particular fishery. So, they
all get to have their say....
Some areas probably don't have need for it or won't
have a need for it for a while until they have a
separate fishery. When you break it down to certain
fisheries, there are some gillnet fisheries I see in
the state that could probably do this right away and
try to get this passed once it's on the books and in
other fisheries, like seine fisheries, it would be a
little bit more complicated and would have to be
talked through to whether that's going to be a benefit
for them.
SENATOR GARY STEVENS asked Representative Ogg to explain how the
voting would take place and how latent permits would be dealt
with.
REPRESENTATIVE OGG replied that this issue received a lot of
discussion and the recommendation of the task force is to go
with 50 percent of the actual permits voting, which is how the
aquaculture voting is set up and it works fine.
CHAIR BUNDE asked if the size of a quorum was discussed.
REPRESENTATIVE OGG replied:
The mechanism in which the ballots go out - knowing
how fishermen are and being one myself - sometimes you
don't get the notice. So you are sent out two ballots,
two separate mailings. So, you're most assured to get
everybody and it's pretty clear what's going on and
it's in your high interest to participate. If there's
latent fishermen who aren't fishing, they won't pay a
tax, because they don't have any product that they're
selling. Once they start to fish again, they will pay
a tax.
MR. MCKUNE added that each region has to publish two notices in
a newspaper.
SENATOR SEEKINS asked if there is any requirement to make sure a
ballot was ever received.
REPRESENTATIVE OGG replied no; nothing more is needed than the
two mailings to addressees on the limited entry permit cards.
CHAIR BUNDE asked what level of participation the aquaculture
associations have among eligible voters.
REPRESENTATIVE OGG said he didn't know.
MR. MCKUNE replied that the Prince William Sound Aquaculture
Association had an 80 percent return when it first started. He
thought the same would be the case with this program.
CHAIR BUNDE postulated that an election wouldn't be valid unless
10 or 15 percent of the permit holders participated and wanted
that discussed in the Finance Committee. The way it is written
now, two out of three people could decide an issue. Although he
doubted that would happen, he also sees low voter turnout in
general elections.
SENATOR SEEKINS asked if other forms of notification that an
election is going to take place are required.
MR. MCKUNE answered that the bill requires two ballots and two
notices in the newspaper of the region in which the election
will take place and a minimum of two public meetings must take
place.
SENATOR GARY STEVENS moved to pass CSHB 419(RES) from committee
with attached fiscal note and individual recommendations.
Senators Hollis French, Ben Stevens, Ralph Seekins and Chair Con
Bunde vote yea; and CSHB 419(RES) moved from committee.
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