Legislature(2021 - 2022)GRUENBERG 120
05/06/2021 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB52 | |
| HB188 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 188 | TELECONFERENCED | |
| += | HB 52 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
May 6, 2021
10:03 a.m.
MEMBERS PRESENT
Representative Geran Tarr, Chair
Representative Louise Stutes, Vice Chair
Representative Jonathan Kreiss-Tomkins
Representative Andi Story
Representative Sarah Vance
MEMBERS ABSENT
Representative Dan Ortiz
Representative Kevin McCabe
COMMITTEE CALENDAR
HOUSE BILL NO. 52
"An Act providing that operation of the Tutka Bay Lagoon
Hatchery in Kachemak Bay is compatible with the functions of
Kachemak Bay State Park; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 188
"An Act relating to a seafood product development tax credit;
providing for an effective date by repealing secs. 32 and 35,
ch. 61, SLA 2014; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 52
SHORT TITLE: TUTKA BAY HATCHERY
SPONSOR(s): REPRESENTATIVE(s) VANCE
02/18/21 (H) PREFILE RELEASED 1/8/21
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) FSH, RES
04/29/21 (H) FSH AT 10:00 AM GRUENBERG 120
04/29/21 (H) Heard & Held
04/29/21 (H) MINUTE(FSH)
05/06/21 (H) FSH AT 10:00 AM GRUENBERG 120
BILL: HB 188
SHORT TITLE: SEAFOOD PRODUCT DEVELOPMENT TAX CREDIT
SPONSOR(s): REPRESENTATIVE(s) STUTES
04/26/21 (H) READ THE FIRST TIME - REFERRALS
04/26/21 (H) FSH, FIN
05/06/21 (H) FSH AT 10:00 AM GRUENBERG 120
WITNESS REGISTER
JEFFREY LEE, Member
Kachemak Bay Advisory Board
Seldovia, Alaska
POSITION STATEMENT: Testified in opposition to HB 52.
ROBERTA HIGHLAND
Homer, Alaska
POSITION STATEMENT: Testified in opposition to HB 52.
BRENT JOHNSON, Past-President
Cook Inlet Aquaculture Association
Clam Gulch, Alaska
POSITION STATEMENT: Testified during the hearing on HB 52.
SARA PERMAN, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 188 on behalf of
Representative Stutes, prime sponsor.
CHRIS BARROWS, President
Pacific Seafood Processors Association
Seattle, Washington
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 188.
MARK PALMER, President/CEO
OBI Seafoods
Seattle, Washington
POSITION STATEMENT: Provided invited testimony in support of HB
188.
JEREMY WOODROW
Alaska Seafood Marketing Institute
Juneau, Alaska
POSITION STATEMENT: Provided invited testified in support of HB
188.
ACTION NARRATIVE
10:03:55 AM
CHAIR GERAN TARR called the House Special Committee on Fisheries
meeting to order at 10:03 a.m. Representatives Story, Vance,
Stutes, and Tarr were present at the call to order.
Representative Kreiss-Tomkins arrived as the meeting was in
progress.
HB 52-TUTKA BAY HATCHERY
10:04:36 AM
CHAIR TARR announced that the first order of business would be
HOUSE BILL NO. 52, "An Act providing that operation of the Tutka
Bay Lagoon Hatchery in Kachemak Bay is compatible with the
functions of Kachemak Bay State Park; and providing for an
effective date." [Before the committee, adopted as a working
document on 4/29/21, was the proposed committee substitute (CS)
for HB 52, Version 32-LS0327\I, Bullard, 4/29/21 ("Version I").]
CHAIR TARR announced that the committee would hear public
testimony on HB 52, which had been opened on 4/29/21.
10:05:03 AM
JEFFREY LEE, Member, Kachemak Bay Advisory Board, said the Tutka
Bay Lagoon Hatchery in Kachemak Bay has been highly
controversial. The current plan has undergone extensive public
review; it happens every 25-30 years and is a two-year process.
He indicated that [current review] has been going on for six
years and has led to the conclusion that phasing out the
hatchery is a good choice. He warned against degrading the
public process and urged the committee to take no action on HB
52 until the advisory board can review the proposed legislation.
10:07:20 AM
ROBERTA HIGHLAND testified in opposition to HB 52. She said the
process has been rushed. She mentioned a management plan with a
ten-year timeframe. She said the proposed legislation "could
set a precedence for other parks where there's a conflict of the
uses." She spoke of negative environmental impacts. She
indicated there was an increase in pink salmon in the hatchery,
which has led to problems, such as "dumping of the carcasses,"
and that has led to a lawsuit. Further, placing pens in the bay
itself would increase boat traffic into "the heart of the park."
She requested the issue be given time, especially in terms of
land swapping, which has not had public review. She asked the
committee not to pass HB 52.
10:09:51 AM
BRENT JOHNSON, Past-President, Cook Inlet Aquaculture
Association, said all the hatcheries work together to fund the
Cook Inlet Aquaculture Association to release fish that are
important to those who fish. He said he favors studies, and he
does not think there have been studies that prove that
hatcheries are detrimental to the environment. He said he is
eager for those studies to take place. He opined that the Tutka
Bay Lagoon Hatchery is important to the Homer economy and Cook
Inlet seiners.
10:10:52 AM
CHAIR TARR, after ascertaining there was no one else who wished
to testify, closed public testimony on HB 52.
10:11:24 AM
REPRESENTATIVE VANCE, as prime sponsor, noted wide-range support
from the Kenai Peninsula to Kodiak. She stated her intent to
include further discussion related to the idea of the land swap,
which was introduced last week. She spoke of separating "the
hatchery issue" and "the land issue."
10:12:16 AM
CHAIR TARR announced that HB 52 was held over.
HB 188-SEAFOOD PRODUCT DEVELOPMENT TAX CREDIT
10:12:39 AM
CHAIR TARR announced that the final order of business would be
HOUSE BILL NO. 188, "An Act relating to a seafood product
development tax credit; providing for an effective date by
repealing secs. 32 and 35, ch. 61, SLA 2014; and providing for
an effective date."
10:13:05 AM
SARA PERMAN, Staff, Representative Louise Stutes, Alaska State
Legislature, presented HB 188 on behalf of Representative
Stutes, prime sponsor. She said the proposed legislation would
extend the sunset date for a tax credit applied to seafood
processors to December 31, 2025, and extend the seafood tax
credit on salmon and herring to also include cod and pollock.
This credit allows processors who have invested in updating
their equipment to process more byproduct - thus getting more
value out of the fish - to receive up to 50 percent back for
that investment. Finding additional uses for each fish, such as
for bone meal or fish oil supplements, adds to the value of the
fish. Extending the credit to pollock and cod is valuable,
because they make up about 60 percent of Alaska's fish harvest.
10:15:34 AM
CHAIR TARR announced the committee would next hear invited
testimony.
10:15:56 AM
CHRIS BARROWS, President, Pacific Seafood Processors
Association, noted written testimony had been submitted. He
said the Pacific Seafood Processors Association (PSPA) is a
nonprofit trade association founded in 1914 that comprised eight
major seafood processing companies around the state. Members
operate 25 facilities in 15 communities, including 3 floating
processors. He said the bill's proposed inclusion of pollock
and cod is important because it would create the opportunity to
obtain more value from high volume species over the long term.
He pointed out that more value added to fishers and processors
means more value to local governments and the state through
taxes based on the value of fish. He said HB 188 also
incentivizes greater use of each fish, which would allow
processors to invest more in product development and marketing
for ancillary products. He emphasized the importance of
diversity in returning value to the state. Mr. Barrows talked
about an attachment to the letter in the committee packet that
includes a summary of conclusions and description of net gains.
He said analysis indicates that this program has directly
contributed to the generation of an additional $114.4 million to
the state's general fund.
10:21:13 AM
MARK PALMER, President/CEO, OBI Seafoods, said OBI Seafoods
[name derived from the merging of Ocean Beauty Seafoods and
Icicle Seafoods] has 10 processing plants in Alaska. He stated
that OBI Seafoods supports HB 188; [the tax credit] works. He
highlighted the need to use every bit of protein from each fish,
because the harvest count can change notably from year to year.
He spoke about the U.S. market being the biggest in terms of
Alaska seafood, and pointed out the benefit of sending product
to the Lower 48 rather than internationally where other
countries create the jobs and the value-added product. He said
this [tax credit] has a proven track record for over 15 years;
co-investment adds jobs in Alaska and investment to run
sophisticated equipment. Further, he related that those jobs
are "higher paying than the typical production working jobs in
our factories."
10:24:03 AM
JEREMY WOODROW, Alaska Seafood Marketing Institute, stated that
the Alaska Seafood Marketing institute (ASMI) supports all
efforts to increase the value of Alaska's fisheries, and HB 188
will provide the industry the incentive and support needed to
continue investing in processing facilities and creating more
value in seafood. Mr. Woodrow reported that Alaska's commercial
fisheries harvest, on average, 5.5 billion pounds of seafood
annually. After processing approximately 2.6 billion pounds
sold to markets worldwide, there are 3 billion pounds of
potential product that would increase the value of the state's
seafood resources. He gave examples of products made with fish
byproducts and mentioned other areas in which additional growth
is forecasted. Byproducts used include fish skin and heads and
crab shells. Mr. Woodrow cited a McDowell Group report which
states that Alaska's major shoreside seafood processors invest
over $100 million annually in capital expenditures. He said
expanding value makes it possible for companies to expand
seafood plants, expand production lines, and pay higher fish
prices, all of which benefit local communities. He said market
research shows that consumers want high-quality convenience
products, and this trend provides the opportunity for the
industry to create "new, innovative, and value-added seafood
products" and "match consumer demands," and HB 188 would support
this goal.
10:26:37 AM
REPRESENTATIVE KREISS-TOMKINS remarked that the addition of cod
and pollock would be a massive change to the program and would
more than double the cost to the state; therefore he said he
wants to be sure "we give that due diligence." He remarked that
pollock is primarily processed at sea, but then amended that to
express that pollock has a different "value chain to the state."
He observed that the taxes collected on pollock are a fraction
of that brought in from salmon. He asked if someone could speak
to what kind of equipment would likely qualify for the tax
credit, and what kind of onshore and offshore facilities would
be captured by the proposed legislation.
10:28:05 AM
MR. BARROWS responded that he was not sure the assumption that
pollock was primarily processed at sea was accurate, and he said
he would like to look into that and provide an answer. He noted
that there is "a lot of shoreside production for pollock."
10:28:53 AM
REPRESENTATIVE KREISS-TOMKINS, regarding the assumption, noted
that he had "walked that back." Nevertheless, suggested the
answer should be available for consideration as to what
percentage of pollock is processed offshore versus on land, and
he flagged that as "relevant information."
10:29:23 AM
MR. PALMER shared that OBI Seafoods' Kodiak facility only heads
and guts pollock; it does not produce surimi, for example, which
would be "a much higher value-use product." Its headed and
gutted (H&G) pollock is exported to foreign markets. He stated,
"That would be, I guess, one example of how it could potentially
be utilized and benefit a shore plant, create a higher-value
product, and also probably focus on a domestic market."
10:30:07 AM
CHAIR TARR opened public testimony on HB 188. After
ascertaining that there was no one who wished to testify, she
closed public testimony.
10:30:14 AM
CHAIR TARR said she was considering an amendment deadline of
Monday but did not want to rush the process.
REPRESENTATIVE KREISS-TOMKINS proffered that he would desire a
lot more information regarding HB 188.
10:30:29 AM
CHAIR TARR announced that HB 188 was held over.
10:30:42 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at [10:31]
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 188 Sponsor Statement 04.30.2021.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 188 Version A 04.30.2021.PDF |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 188 Sectional Analysis Version A 04.30.2021.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 188 Fiscal Note - DOR-TAX 4.30.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 52 Version A 2.18.21.PDF |
HFSH 4/29/2021 10:00:00 AM HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM |
HB 52 |
| HB 52 Version I 4.29.21.pdf |
HFSH 4/29/2021 10:00:00 AM HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM |
HB 52 |
| HB 52 Fiscal Note - DNR-DPOR 4.28.21.pdf |
HFSH 4/29/2021 10:00:00 AM HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM |
HB 52 |
| HB 52 Tutka Bay Hatchery & Land Parcel Maps.pdf |
HFSH 4/29/2021 10:00:00 AM HFSH 5/6/2021 10:00:00 AM |
HB 52 |
| HB 52 Tutka Bay Hatchery Historical Background 4.29.21.pdf |
HFSH 4/29/2021 10:00:00 AM HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM HRES 2/7/2022 1:00:00 PM |
HB 52 |
| HB 188 Testimony Received by 5.5.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM |
HB 188 |
| HB 52 Testimony Received by 5.5.21.pdf |
HFSH 5/6/2021 10:00:00 AM |
HB 52 |
| HB 188 Updated - Testimony Received by 5.5.21.pdf |
HFSH 5/6/2021 10:00:00 AM |
HB 188 |
| HB 188 Research - Supporting Analysis - PSPA 5.6.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 52 Research - Brief - DNR 5.5.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM HRES 2/7/2022 1:00:00 PM |
HB 52 |
| HB 188 Testimony Received by 5.6.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/11/2021 10:00:00 AM HFSH 5/13/2021 10:00:00 AM HFSH 5/15/2021 12:15:00 PM |
HB 188 |
| HB 52 Testimony Received by 5.6.21.pdf |
HFSH 5/6/2021 10:00:00 AM HFSH 5/18/2021 10:00:00 AM |
HB 52 |