Legislature(2005 - 2006)CAPITOL 124
05/07/2005 09:30 AM House RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB102 | |
| SB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 164 | TELECONFERENCED | |
| += | SB 102 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE RESOURCES STANDING COMMITTEE
May 7, 2005
9:38 a.m.
MEMBERS PRESENT
Representative Jay Ramras, Co-Chair
Representative Ralph Samuels, Co-Chair
Representative Jim Elkins
Representative Carl Gatto
Representative Gabrielle LeDoux
Representative Kurt Olson
Representative Paul Seaton
Representative Harry Crawford
Representative Mary Kapsner
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 102
"An Act relating to district coastal management programs; and
providing for an effective date."
- MOVED HCS CSSB 102(RES) OUT OF COMMITTEE
SENATE BILL NO. 164
"An Act relating to the salmon product development tax credit;
providing for an effective date by amending an effective date in
sec. 7, ch. 57, SLA 2003; and providing for an effective date."
- MOVED CSSB 164(FIN) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 102
SHORT TITLE: COASTAL MANAGEMENT PROGRAMS
SPONSOR(S): SENATOR(S) STEVENS G
02/14/05 (S) READ THE FIRST TIME - REFERRALS
02/14/05 (S) CRA, RES
03/14/05 (S) CRA AT 1:30 PM BELTZ 211
03/14/05 (S) Heard & Held
03/14/05 (S) MINUTE(CRA)
03/16/05 (S) CRA AT 1:30 PM BELTZ 211
03/16/05 (S) Moved CSSB 102(CRA) Out of Committee
03/16/05 (S) MINUTE(CRA)
03/18/05 (S) CRA RPT CS 1DP 3NR
NEW TITLE
03/18/05 (S) NR: STEVENS G, WAGONER, STEDMAN
03/18/05 (S) DP: ELLIS
03/18/05 (S) FIN REFERRAL ADDED AFTER RES
04/06/05 (S) RES AT 3:30 PM BUTROVICH 205
04/06/05 (S) -- Testimony <Invitation Only> --
04/22/05 (S) RES AT 3:30 PM BUTROVICH 205
04/22/05 (S) Moved CSSB 102(RES) Out of Committee
04/22/05 (S) MINUTE(RES)
04/25/05 (S) RES RPT CS 4DP 2NR
NEW TITLE
04/25/05 (S) DP: WAGONER, SEEKINS, STEDMAN, STEVENS
B
04/25/05 (S) NR: ELTON, DYSON
05/02/05 (S) FIN AT 9:00 AM SENATE FINANCE 532
05/02/05 (S) <Bill Hearing Postponed>
05/03/05 (S) FIN RPT CS 5DP 1NR
NEW TITLE
05/03/05 (S) DP: WILKEN, GREEN, HOFFMAN, DYSON,
STEDMAN
05/03/05 (S) NR: OLSON
05/03/05 (S) MOVED TO BOTTOM OF CALENDAR
05/03/05 (S) FIN CS ADOPTED Y11 N6 E1 A2
05/03/05 (S) FIN AT 9:00 AM SENATE FINANCE 532
05/03/05 (S) Moved CSSB 102(FIN) Out of Committee
05/03/05 (S) MINUTE(FIN)
05/05/05 (S) TRANSMITTED TO (H)
05/05/05 (S) VERSION: CSSB 102(FIN) AM
05/05/05 (H) READ THE FIRST TIME - REFERRALS
05/05/05 (H) RES, FIN
05/06/05 (H) RES AT 1:00 PM CAPITOL 124
05/06/05 (H) Heard & Held
05/06/05 (H) MINUTE(RES)
05/07/05 (H) RES AT 9:30 AM CAPITOL 124
05/07/05 (H) FIN AT 2:00 PM HOUSE FINANCE 519
BILL: SB 164
SHORT TITLE: SALMON PRODUCT DEVELOPMENT TAX CREDIT
SPONSOR(S): SENATOR(S) STEDMAN
04/06/05 (S) READ THE FIRST TIME - REFERRALS
04/06/05 (S) RES, FIN
04/15/05 (S) RES AT 3:30 PM BUTROVICH 205
04/15/05 (S) Moved SB 164 Out of Committee
04/15/05 (S) MINUTE(RES)
04/18/05 (S) RES RPT 3DP 1DNP 1NR 2AM
04/18/05 (S) AM: WAGONER, ELTON
04/18/05 (S) DP: STEDMAN, STEVENS B
04/18/05 (S) DP W/AMENDMENTS: DYSON
04/18/05 (S) DNP: SEEKINS
04/18/05 (S) NR: GUESS
04/28/05 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/28/05 (S) Moved CSSB 164(FIN) Out of Committee
04/28/05 (S) MINUTE(FIN)
04/29/05 (S) FIN RPT CS 3DP 2NR
SAME TITLE
04/29/05 (S) DP: GREEN, HOFFMAN, DYSON
04/29/05 (S) NR: WILKEN, OLSON
05/02/05 (S) TRANSMITTED TO (H)
05/02/05 (S) VERSION: CSSB 164(FIN)
05/03/05 (H) READ THE FIRST TIME - REFERRALS
05/03/05 (H) RES, FIN
05/04/05 (H) RES AT 1:00 PM CAPITOL 124
05/04/05 (H) -- Meeting Canceled --
05/06/05 (H) RES AT 1:00 PM CAPITOL 124
05/06/05 (H) Scheduled But Not Heard
05/07/05 (H) RES AT 9:30 AM CAPITOL 124
WITNESS REGISTER
TIM BARRY, Staff
to Senator Bert Stedman
Alaska State Legislature
POSITION STATEMENT: Presented SB 164 on behalf of Senator Bert
Stedman, sponsor.
STEPHANIE MATTSON, Vice President
Pacific Seafood Processors Association (PSPA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 164.
REED STOOPS
Ocean Beauty Seafood
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 164.
JERRY BURNETT, Special Assistant to the Commissioner
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding SB 164.
ACTION NARRATIVE
CO-CHAIR RALPH SAMUELS called the House Resources Standing
Committee meeting, which had been recessed on 5/6/05, back to
order at 9:38:06 AM. Representatives Samuels, Kapsner, Gatto,
Elkins, Crawford, Ramras, LeDoux, Olson, and Seaton were present
at the call back to order.
SB 102-COASTAL MANAGEMENT PROGRAMS
CO-CHAIR SAMUELS announced that the first order of business
would be SENATE BILL NO. 102 "An Act relating to district
coastal management programs; and providing for an effective
date."
CO-CHAIR RAMRAS moved to adopt HCS CSSB 102, labeled 24-
LS0941\N, Bullock, 5/6/05, as a working document. There being
no objection, it was so ordered.
CO-CHAIR SAMUELS explained the changes in the committee
substitute (CS). He said page 12, line 31 of the CS gives the
Department of Natural Resources (DNR) two years to revisit the
ABC list; page 13 eliminates the specific list of what districts
are to review; and Section 22 moves the legislative review date
to May 10, 2006.
9:39:50 AM
REPRESENTATIVE SEATON said the purpose of his previous amendment
(Amendment 1) was to "make sure that before the coastal zone
plan expires we are back in session and have 45 days, so that
the legislature is not cut out of the program. Upon examining
Section 22 later, we have that problem because that's what we do
again in this section, and this is where we should have made the
change from January 1 to March 1, so that we have 45 days to act
instead of this happening when we're not in session."
The committee took an at-ease from 9:41:19 AM to 9:41:47 AM.
REPRESENTATIVE SEATON said he wanted his requested changes put
on the record and considered as the bill goes forward. He said
to change "January" to "March" on lines 22 and 23, and on line
25, change "July" to "May" so the governor has time to act.
CO-CHAIR RAMRAS moved to report HCS CSSB 102, labeled 24-
LS0941\N, Bullock, 5/6/05, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, HCS CSSB 102(RES) passed out of committee.
The committee took an at-ease from 9:43:09 AM to 9:43:49 AM.
SB 164-SALMON PRODUCT DEVELOPMENT TAX CREDIT
CO-CHAIR SAMUELS announced that the final order of business
would be SENATE BILL NO. 164 "An Act relating to the salmon
product development tax credit; providing for an effective date
by amending an effective date in sec. 7, ch. 57, SLA 2003; and
providing for an effective date."
TIM BARRY, Staff to Senator Bert Stedman, Alaska State
Legislature, said SB 164 extends the deadline for salmon
processors in Alaska to receive a salmon product development tax
credit. Currently, processors can claim the credit for property
placed into service by the end of this calendar year, and SB 164
extends it by three years. He said the legislation also makes
minor changes to clarify what is eligible for the tax credit to
more effectively achieve the goal of encouraging seafood
processors to develop innovative, value-added salmon products.
MR. BARRY stated that the original legislation was proposed by
the Joint Legislative Salmon Industry Task Force to encourage
industry to take investment risks to produce new salmon
products. It was drafted in consultation with the Department of
Revenue to ensure efficiency and effectiveness, he added.
9:45:55 AM
REPRESENTATIVE SEATON asked about the date on page 3, line 16.
MR. BARRY said the January 1, 2012 date reflects the fact that
people have three years to make a claim.
CO-CHAIR SAMUELS asked for examples of past claims.
STEPHANIE MATTSON, Vice President, Pacific Seafood Processors
Association (PSPA), said PSPA represents a majority of the major
seafood processors in Alaska, and it supports SB 164 because it
helps the industry in marginal revenue times. She said three
processors have used the credit to put in new filet lines, and
freezing capacity has been increased. Some processors spoke in
recent hearings of fuller utilization in terms of fish oils, she
noted. The task force put this idea forward because a similar
white fish tax credit was successful. She said the extension is
needed because it took time to get the regulations final.
REED STOOPS, Ocean Beauty Seafood, Juneau, said Ocean Beauty has
eight plants in Alaska and handles more salmon than any other
processor, and it supports the bill. The Excursion Inlet plant
now produces pink salmon burgers, and it vacuum packs filets to
produce a higher value product, he noted. As a result, the
company added 40 new seasonal jobs, and the price to fishermen
is going up. He said the credit means doing this work in Alaska
instead of elsewhere or not at all. He concluded that the
company has future opportunities in its other Alaska plants.
9:51:18 AM
REPRESENTATIVE CRAWFORD asked how much the credits have been
worth, so far.
JERRY BURNETT, Special Assistant to the Commissioner, Department
of Revenue, Juneau, said the credits cost about $1.75 million as
a direct reduction in taxes. But if the fish are worth more,
taxes are higher, and he said it's difficult tell how much value
is added, but SB 164 should generate net positive revenue.
9:52:35 AM
REPRESENTATIVE SEATON asked about equipment purchased for salmon
production and then used for other products.
MR. BURNETT said he is not aware of that occurring.
MR. BARRY said SB 164 tries to clarify exactly what qualifies
for the credit, but dual use has not been a problem.
9:53:59 AM
REPRESENTATIVE SEATON moved to report CSSB 164(FIN), labeled 24-
LS0589\S out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, CSSB
164(FIN) was passed out of committee.
ADJOURNMENT
There being no further business before the committee, the House
Resources Standing Committee meeting was adjourned at 9:54 AM.
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