Legislature(2001 - 2002)

04/11/2002 10:38 AM Senate RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
SENATOR  COWDERY moved  to place  HB 390-ASMI  SALMON MARKETING  &                                                          
MARKETING TAX  and a proposed  amendment before the  committee for                                                          
the purpose  of discussion. There  being no objection,  the motion                                                              
carried.                                                                                                                        
                                                                                                                                
MS.  SUE  STANCLIFF, staff  to  Representative  Maguire,  sponsor,                                                              
explained that HB  390 is a companion bill to SB  282. HB 390 does                                                              
two things.  First, the  salmon marketing  programs of  the Alaska                                                              
Seafood  Marketing  Institute  (ASMI),   which  are  scheduled  to                                                              
terminate  on June 30,  2004, would  be extended  for five  years.                                                              
Second, it extends  the salmon marketing tax,  which supports ASMI                                                              
activities  and  the  domestic  marketing  program.  That  tax  is                                                              
scheduled to terminate in 2003; the  bill extends the tax for five                                                              
years.  The  bill  also allows  for  international  marketing.  At                                                              
present ASMI is restricted to domestic marketing.                                                                               
                                                                                                                                
MR. KRISTY  TIBBLES, staff to Senator  Ben Stevens, sponsor  of SB
282,  told members  that both  bills  are identical  except for  a                                                              
change  made to  SB  282 by  the  Senate Finance  Committee.  That                                                              
committee deleted a provision in  the bill on page 3, lines 26-29,                                                              
which extended the date to 2009 for  certain activities related to                                                              
the salmon marketing tax. Therefore,  those activities will expire                                                              
in 2004.  The important  part of the  bill was retained,  which is                                                              
the extension of the tax. She then  noted that Senator Cowdery had                                                              
a proposed amendment to delete the same provision from HB 390.                                                                  
                                                                                                                                
SENATOR THERRIAULT asked what activities  will be curtailed by the                                                              
proposed amendment.                                                                                                             
                                                                                                                                
MS.  TIBBLES  said  the  activities  are  collecting,  organizing,                                                              
distributing, and  making available  to the public  information on                                                              
prices   paid   and  market   conditions   for   raw  salmon   [AS                                                              
16.51.100(7)]; and  cooperating with commercial  salmon fishermen,                                                              
fishermen's  organizations,  seafood  processors, and  the  Alaska                                                              
Fisheries Development Foundation [AS 16.51.100(8)].                                                                             
                                                                                                                                
CHAIRMAN PHILLIPS asked about AS 16.51.100(9).                                                                                  
                                                                                                                                
MS.  TIBBLES  explained  that  subsection   established  a  salmon                                                              
marketing   committee  to   assist   and  advise   the  board   in                                                              
administering  the  domestic  salmon  marketing  program  that  is                                                              
funded through the tax.                                                                                                         
                                                                                                                                
CHAIRMAN PHILLIPS  commented that  if subsections (7)  through (9)                                                              
are repealed, all of those functions will go away.                                                                              
                                                                                                                                
MS. TIBBLES said they will in 2004.                                                                                             
                                                                                                                                
SENATOR  THERRIAULT said  ASMI will have  to specifically  request                                                              
that those functions be extended before they expire in 2004.                                                                    
                                                                                                                                
MS. LAURA  FLEMING, public relations  director of ASMI,  said ASMI                                                              
supports  the  reauthorization  of  the one  percent  tax.  During                                                              
hearings in  both the House and  Senate, that provision  had great                                                              
support  from both  processors and  fishermen.  Extending the  tax                                                              
will prevent  ASMI from getting  "caught midstream" in  the middle                                                              
of a summer season. ASMI supports  bringing HB 390 into conformity                                                              
with the Senate Finance version of SB 282.                                                                                      
                                                                                                                                
SENATOR  COWDERY  moved  to  adopt Amendment  1,  which  reads  as                                                              
follows.                                                                                                                        
                                                                                                                                
        *Sec.4. The uncodified law of the State of Alaska                                                                     
       enacted in sec. 10, ch.55, SLA 1993, as amended by                                                                       
     sec.2, ch.111, SLA 1998, is amended to read:                                                                               
           Sec.10. AS 16.51.100(7), 16.51.100(8), and                                                                           
     16.51.100(9) are repealed June 30, 2009[2004].                                                                           
                                                                                                                                
CHAIRMAN PHILLIPS  noted that with  no objection, Amendment  1 was                                                              
adopted.                                                                                                                        
                                                                                                                                
SENATOR COWDERY moved to calendar  CSHB 390(RLS) with its attached                                                              
fiscal  note  at   the  Chairman's  discretion.   There  being  no                                                              
objection, the motion carried.                                                                                                  

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