Legislature(2003 - 2004)

03/31/2003 03:39 PM Senate RES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             SB 139-AK SALMON PRICE REPORT PROGRAM                                                                          
                                                                                                                                
MR. IAN  FISK, staff to  Representative Ogg, told members  he has                                                               
been working  with Senator Dyson  on SB  139 and presented  it to                                                               
the committee as follows.                                                                                                       
                                                                                                                                
SB 139 repeals  the sunset date of a Department  of Revenue (DOR)                                                               
program called the  Alaska Salmon Price Report  (ASPR). Under the                                                               
ASPR,  processors  who  sell  over 1  million  pounds  of  salmon                                                               
products in one year are required  to report to DOR the wholesale                                                               
prices they receive for those  products. This report is due three                                                               
times per year: January 31, May  31, and September 30. It details                                                               
monthly  and annual  average wholesale  prices  sorted by  salmon                                                               
species, by product  form, and by the eight regions  in which the                                                               
salmon  are produced.  The ASPR  allows  government agencies  and                                                               
industry analysts to  estimate inventory of Alaska  salmon and it                                                               
provides data that is helpful  in negotiations between harvesters                                                               
and processors.  DOR issues an  annual report to  the legislature                                                               
to enable  legislators to see  what is  being done with  a public                                                               
resource.  The  statute sunsets  on  July  1, 2003.  The  sponsor                                                               
believes the ASPR  program should be a permanent  function of DOR                                                               
so SB 139 repeals the sunset date.                                                                                              
                                                                                                                                
CHAIR OGAN asked if SB 139 will make this law permanent.                                                                        
                                                                                                                                
MR. FISK said that is correct.                                                                                                  
                                                                                                                                
CHAIR OGAN pointed  out that the bill has no  fiscal note because                                                               
the  program is  currently funded  with federal  money. He  asked                                                               
what will happen if the federal  money dries up and the state has                                                               
an obligation to fund it with general fund monies.                                                                              
                                                                                                                                
MR. FISK  said that is  a good  question. He noticed  today, when                                                               
the  fiscal  note  was  delivered,  that  the  Tax  Division  has                                                               
proposed changing  the funding source to  [federal] salmon treaty                                                               
fund  money appropriated  to the  Alaska Department  of Fish  and                                                               
Game  (ADF&G). He  said to  his understanding,  that is  a stable                                                               
source  of funding  but  he has  not spoken  with  anyone in  the                                                               
department about it.                                                                                                            
                                                                                                                                
CHAIR  OGAN  pointed  out  that  if  the  federal  money  is  not                                                               
received, the cost to the state would be $50,000 per year.                                                                      
                                                                                                                                
MR. FISK said that is correct, according to DOR.                                                                                
                                                                                                                                
SENATOR BEN STEVENS  explained that the Pacific  Salmon Treaty is                                                               
an international  treaty that has  been in effect for  many years                                                               
and is likely to be funded for  many years to come. He noted that                                                               
as long as the treaty is in  effect, Alaska will continue to be a                                                               
recipient  of  funds. He  also  said  the original  salmon  price                                                               
report contained price  information and was funded  by the Alaska                                                               
Seafood Marketing Institute (ASMI).                                                                                             
                                                                                                                                
MR. FISK  said he believes that  was the case with  the wholesale                                                               
price report,  which was changed to  the ASPR when more  data was                                                               
required.  He understands  the funding  no  longer comes  through                                                               
ASMI,  it comes  through the  salmon market  information service,                                                               
which is provided by ASMI.                                                                                                      
                                                                                                                                
CHAIR OGAN  pointed out if there  is a question about  the fiscal                                                               
note, it  is more appropriate  that the Senate  Finance Committee                                                               
examine it. He then took public testimony.                                                                                      
                                                                                                                                
In response to a question by  Chair Ogan about whether there is a                                                               
compelling  need  to  continue  the ASPR,  MR.  BRUCE  SCHACTLER,                                                               
testifying  from  Kodiak, told  members  that  he would  question                                                               
whether the report actually costs  $50,000 per year. He noted the                                                               
only reason  fishermen are as  informed as they are  about prices                                                               
for different  products is because of  the ASPR. The ASPR  is the                                                               
only database close to real  time that provides this information.                                                               
The price  report is authored by  the McDowell Group and  is used                                                               
by ASMI, the National Marine  Fisheries Services (NMFS), the U.S.                                                               
Departments  of  Agriculture  and  Commerce,  the  University  of                                                               
Alaska,  the  University  of  Washington,   a  host  of  academic                                                               
entities, the legislature and hundreds of individuals.                                                                          
                                                                                                                                
MR. JERRY McCUNE,  Executive Director of the  United Fishermen of                                                               
Alaska  (UFA),  stated  support  for  SB  139  because  the  ASPR                                                               
provides a good snapshot of what products are going where.                                                                      
                                                                                                                                
CHAIR OGAN asked if the ASPR  is an appropriate state function or                                                               
whether it should be supported by UFA.                                                                                          
                                                                                                                                
MR. McCUNE  said that would  be difficult  for UFA to  do because                                                               
DOR gathers  the information, most  of which is  confidential. He                                                               
added that  UFA does not have  the staff or funds  to produce the                                                               
report.                                                                                                                         
                                                                                                                                
SENATOR  WAGONER moved  SB  139  and its  zero  fiscal note  from                                                               
committee  with individual  recommendations.  With no  objection,                                                               
CHAIR OGAN announced the motion carried.                                                                                        

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