Legislature(1993 - 1994)

03/17/1993 08:30 AM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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              HOUSE SPECIAL COMMITTEE ON FISHERIES                             
                         March 17, 1993                                        
                            8:30 a.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Carl E. Moses, Chairman                                       
  Representative Harley Olberg, Vice-Chairman                                  
  Representative Gail Phillips                                                 
                                                                               
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Representative Irene Nicholia                                                
  Representative Cliff Davidson                                                
                                                                               
                                                                               
  OTHER MEMBERS PRESENT                                                        
                                                                               
  Representative Bill Williams                                                 
                                                                               
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 191    "An Act relating to cost recovery by contractors                   
            who operate state-owned hatcheries."                               
                                                                               
            MOVED OUT OF COMMITTEE WITH INDIVIDUAL                             
            RECOMMENDATIONS                                                    
                                                                               
  HCR 9     Relating to management of the community                            
            development fisheries quota program and fisheries                  
            development by the state.                                          
                                                                               
            CSHCR 9 (FSH) MOVED OUT OF COMMITTEE WITH                          
            INDIVIDUAL RECOMMENDATIONS                                         
                                                                               
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Representative Bill Williams                                                 
  State Capitol, Room 128                                                      
  Juneau, Alaska  99801-1182                                                   
  465-3424                                                                     
  Position Statement: Prime Sponsor of HB 191                                  
                                                                               
  Geron Bruce, Special Assistant,                                              
  Alaska Department of Fish and Game                                           
  P.O. Box 25526                                                               
  Juneau, Alaska  99802-5526                                                   
  465-4100                                                                     
  Position Statement: Supported HB 191                                         
                                                                               
  Marie Sansone, Assistant Attorney General                                    
  Department of Law                                                            
  P.O. Box 110300                                                              
  Juneau, Alaska  99811-0300                                                   
  465-3600                                                                     
  Position Statement: Answered questions regarding HB 191                      
                                                                               
  Ray Gillespie, Lobbyist                                                      
  Aquaculture                                                                  
  9478 Riverbend Court                                                         
  Juneau, Alaska  99801                                                        
  364-3375                                                                     
  Position Statement: Supported HB 191                                         
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 191                                                                
  SHORT TITLE:  CONTRACTOR OPERATED STATE HATCHERIES                           
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) WILLIAMS,Olberg,Grussendorf,                 
  G.Davis,Navarre,Phillips                                                     
  TITLE: "An Act relating to cost recovery by contractors who                  
  operate state-owned hatcheries."                                             
  JRN-DATE     JRN-PG               ACTION                                     
  03/02/93       505    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/02/93       505    (H)   FISHERIES, RESOURCES, FINANCE                    
  03/10/93       596    (H)   COSPONSOR(S): PHILLIPS                           
  03/17/93              (H)   FSH AT 08:30 AM CAPITOL 17                       
  03/17/93       682    (H)   FSH RPT  3DP                                     
  03/17/93       682    (H)   DP: MOSES, OLBERG, PHILLIPS                      
  03/17/93       682    (H)   -ZERO FISCAL NOTE  (F&G)                         
                              3/17/93                                          
                                                                               
  BILL:  HCR 9                                                                 
  SHORT TITLE:  COMMUNITY DEVELOPMENT FISHING QUOTAS                           
  BILL VERSION:                                                                
  SPONSOR(S):   REPRESENTATIVE(S) HOFFMAN,Ulmer                                
  TITLE: Relating to management of the community development                   
  fisheries quota program and fisheries development by the                     
  state.                                                                       
  JRN-DATE     JRN-PG               ACTION                                     
  02/22/93       409    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/22/93       409    (H)   FISHERIES, RESOURCES, FINANCE                    
  03/12/93              (H)   FSH AT 08:30 AM CAPITOL 17                       
  03/17/93       682    (H)   FSH RPT  CS(FSH) NEW TITLE 2DP                   
                              1NR                                              
  03/17/93       682    (H)   DP: MOSES, OLBERG                                
  03/17/93       682    (H)   NR: PHILLIPS                                     
  03/17/93       682    (H)   -ZERO FISCAL NOTE  (F&G)                         
                              3/17/93                                          
  03/17/93       682    (H)   REFERRED TO RESOURCES                            
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-12, SIDE A                                                           
  Number 000                                                                   
                                                                               
  CHAIRMAN CARL MOSES called the meeting to order at 8:33 a.m.                 
  He noted Representatives Olberg and Phillips in attendance                   
  and stated the committee would take up HB 191 and the                        
  Committee Substitute for HCR 9.                                              
                                                                               
  HB 191:  CONTRACTOR OPERATED STATE HATCHERIES                                
                                                                               
  REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR of HB 191, told                  
  the committee that several years ago legislation was passed                  
  that would allow state owned hatcheries to be put out on                     
  contract for operation by private and non profit                             
  corporations to help get the state out of the expensive                      
  burden of running hatcheries.  The contractor could then                     
  harvest fish from the hatchery to cover the cost of                          
  operating that particular hatchery (cost recovery).                          
                                                                               
  REPRESENTATIVE WILLIAMS added that the main problem with                     
  current law is that the language is too restrictive and                      
  inflexible, regarding the shuffling of funds between                         
  hatcheries.  He gave an example of an aquaculture                            
  association that has several hatcheries and then contracts                   
  to run one of the state's hatcheries, and that particular                    
  hatchery has a bad year, the association would have to take                  
  money that was generated at the other facilities to                          
  subsidize the operation for the state hatchery.  However,                    
  because the law restricts the use of cost recovery funds                     
  generated at the contracted hatchery to operation of only                    
  that facility, the shuffling of funds cannot go the other                    
  way.                                                                         
                                                                               
  REPRESENTATIVE WILLIAMS said HB 191 broadens the description                 
  of how cost recovery monies generated from a state owned                     
  hatchery operated under contract may be spent by the                         
  contractor.  It allows for the shuffling of funds between                    
  the various facilities operated by the contractor and it                     
  allows for capital expenditures to be made from these cost                   
  recovery monies.                                                             
                                                                               
  Number 055                                                                   
                                                                               
  GERON BRUCE, SPECIAL ASSISTANT, ALASKA DEPARTMENT OF FISH                    
  AND GAME (ADF&G), stated the ADF&G supports HB 191, and the                  
  ADF&G felt the current legislation unnecessarily restricted                  
  the flexibility that an aquaculture association might have                   
  to pool its funds and most effectively use its resources to                  
  operate its facilities.                                                      
                                                                               
  Number 065                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS asked how many of the                           
  hatcheries would not be in an aquaculture association under                  
  the new scenario.                                                            
                                                                               
  MR. BRUCE said that there would be two hatcheries in                         
  Southeast, three in Cook Inlet, operated by the sports                       
  fishermen, one in Kotzebue, and one in Fairbanks.                            
                                                                               
  VICE CHAIR HARLEY OLBERG talked about the Gulkana hatchery                   
  which is two hundred miles from salt water.  He noted since                  
  the Copper River is a mixed stock run, there can be no cost                  
  recovery, and Prince William Sound Aquaculture Corporation                   
  cannot recover any costs from that hatchery because it is a                  
  mixed stock run.                                                             
                                                                               
  Number 121                                                                   
                                                                               
  REPRESENTATIVE PHILLIPS asked if there were any legal                        
  prohibitions regarding this amendment.                                       
                                                                               
  MARIE SANSONE, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                     
  LAW, responded that the amendment was necessary because the                  
  section as originally passed, restricted the cost recovery                   
  at the state hatchery.                                                       
                                                                               
  Number 137                                                                   
                                                                               
  RAY GILLESPIE, LOBBYIST for four aquaculture associations:                   
  Cook Inlet, Prince William Sound, and Northern and Southern                  
  Southeastern, said the four groups unanimously supported                     
  HB 191.                                                                      
                                                                               
  Number 157                                                                   
                                                                               
  REPRESENTATIVE PHILLIPS made the MOTION to move HB 191 out                   
  of committee with individual recommendations, and IT WAS SO                  
  MOVED.                                                                       
  HCR 9:  COMMUNITY DEVELOPMENT FISHING QUOTAS                                 
                                                                               
  Number 167                                                                   
                                                                               
  VICE CHAIR OLBERG made the MOTION to ADOPT the committee                     
  substitute for HCR 9, dated March 16, 1993.  CSHCR 9 (FSH)                   
  was ADOPTED.                                                                 
                                                                               
  Number 192                                                                   
                                                                               
  CHAIRMAN MOSES stated CSHCR 9 (FSH) would incorporate                        
  changes recommended by the Department of Community and                       
  Regional Affairs and by several fishing organizations.  It                   
  would delete all references to an expanded Community                         
  Development Quota (CDQ) program.  It also refers to a full-                  
  time staff in the plural, thus reflecting the governor's                     
  proposed budget amendment.  And it also clarifies what is                    
  actually being requested.  He noted all the changes had been                 
  approved by the sponsor.                                                     
                                                                               
  Number 201                                                                   
                                                                               
  CSHCR 9 (FSH) was MOVED with individual recommendations.                     
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  CHAIRMAN MOSES adjourned the committee at 8:53 a.m.                          

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