04/18/1994 03:35 PM Senate RES

 CHAIRMAN MILLER called the Resources Committee meeting to order at            
 3:35 p.m. and announced  HB 191  (CONTRACTOR OPERATED STATE                   
 HATCHERIES) to be up for consideration.                                       
                                                                               
 REPRESENTATIVE WILLIAMS, sponsor, said many aquaculture                       
 associations have been cooperative about operating many hatcheries            
 under contract rather than see them close down for lack of state              
 funding.  The language in current law has caused some logistical              
 and financial problems for the contractors which has made it                  
 unfeasible to get some of the state's hatcheries under contract.              
 The law only allows cost recovery funds generated at the state                
 owned hatchery to be used for the operation of that facility, so              
 the funds cannot go to other facilities, if they have a bad year.             
 This places an unfair financial risk on groups we are trying to               
 convince to accept the responsibility of running our state                    
 hatcheries, REPRESENTATIVE WILLIAMS said.                                     
                                                                               
 Under this bill cost recovery money can flow in both directions               
 between the contractors who own the facilities and those contracted           
 to run facilities for the state.                                              
                                                                               
 This bill is supported by the aquaculture associations, the UFA,              
 and the ADF&G.  No one has expressed opposition to the bill, he               
 concluded.                                                                    
                                                                               
 Number 80                                                                     
                                                                               
 BRUCE BACHEN, Northern Southeast Regional Aquaculture Association,            
 supported HB 191, because it allows them to have a single financial           
 plan for the corporation.  The strength of the overall program is             
 enhanced by diversification of all of the species that they raise             
 and all the sites they operate.  It's healthy to allow one project            
 to depend on another because of the fluctuations in the market.               
                                                                               
 Allowing revenues generated by cost recovery to be used for capital           
 construction is another good point of the bill, he said.                      
                                                                               
 JEFF OLSEN, Operations Manager, Prince William Sound Aquaculture              
 Corporation, read a letter from the Corporation in support of HB
.                                                                          
                                                                               
 JERRY MCCUNE, President, United Fishermen of Alaska, supported HB
.  He said one of the problems is that Gulkana hatchery has no             
 cost recovery, so they have to take funds out of the existing                 
 hatchery.  This way they could move funds from hatchery to                    
 hatchery.                                                                     
                                                                               
 Number 173                                                                    
                                                                               
 SENATOR ADAMS moved to pass HB 191 from committee with individual             
 recommendations.  There were no objections and it was so ordered.