Legislature(1993 - 1994)

04/08/1993 02:00 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
               SENATE LABOR AND COMMERCE COMMITTEE                             
                          April 8, 1993                                        
                            2:00 p.m.                                          
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Senator Tim Kelly, Chairman                                                  
  Senator Steve Rieger, Vice Chairman                                          
  Senator Bert Sharp                                                           
  Senator Georgianna Lincoln                                                   
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  Senator Judy Salo                                                            
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  SENATE BILL NO. 177                                                          
  "An Act  relating to  salmon marketing,  a salmon  marketing                 
  tax,   and  the  Alaska  Seafood  Marketing  Institute;  and                 
  providing for an effective date."                                            
                                                                               
  SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 126                                    
  "An Act establishing  the current  prevailing rate of  wages                 
  issued at least 10 days before  the final submission of bids                 
  as the prevailing wage rate for public construction projects                 
  and requiring periodic adjustment of the wage rate."                         
                                                                               
  SENATE BILL NO. 79                                                           
  "An  Act  setting  termination  dates  for  various  boards,                 
  commissions, councils, agencies,  committees, and  divisions                 
  of state government; repealing obsolete statutes relating to                 
  the  State  Fire  Commission  and  the Board  of  Electrical                 
  Examiners;   repealing   obsolete   statutes   relating   to                 
  termination of agency programs and activities; increasing to                 
  10 years the  normal maximum interval for review  of boards,                 
  commissions, and other  entities that are subject  to sunset                 
  reviews; and providing for an effective date."                               
                                                                               
  PREVIOUS SENATE COMMITTEE ACTION                                             
                                                                               
  SB 177 -  No previous action to record.                                      
                                                                               
  HB 126 - No previous action to record.                                       
                                                                               
  SB  79 - See State Affairs minutes dated 2/10/93,                            
           2/17/93.  See HESS minutes dated 3/12/93                            
           and 3/17/93.                                                        
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Kim Elton, Executive Director                                                
  Alaska Seafood Marketing Institute                                           
  1111 W. 8th St., Suite 100                                                   
                                                                               
                                                                               
  Juneau, Alaska 99801-1895                                                    
  POSITION STATEMENT:  Supported SB 177.                                       
                                                                               
  Cheryl Sutton                                                                
  United Fishermen of Alaska                                                   
  P.O. Box 39214                                                               
  Ninilchik, Alaska 99639                                                      
  POSITION STATEMENT:  Commented on SB 177.                                    
                                                                               
  Kate Troll                                                                   
  Southeast Alaska Seiners Association                                         
  9226 Long Run Drive                                                          
  Juneau, Alaska 99801                                                         
  POSITION STATEMENT:  Commented on SB 177.                                    
                                                                               
  Dean Paddock                                                                 
  Bristol Bay Driftnetters Association                                         
  P.O. Box 21951                                                               
  Juneau, Alaska 99802                                                         
  POSITION STATEMENT:  Supported SB 177 with changes.                          
                                                                               
  Robin Samuelson                                                              
  Bristol Bay, Alaska                                                          
  POSITION STATEMENT:  Opposed SB 177.                                         
                                                                               
  Judy Jordan, Legislative Aide                                                
   to Representative Gail Phillips                                             
  State Capitol                                                                
  Juneau, Alaska 99811-1182                                                    
  POSITION STATEMENT:  Sponsor of HB 126.                                      
                                                                               
  Josh Fink, Legislative Aide                                                  
   to Senator Tim Kelly                                                        
  State Capitol                                                                
  Juneau, Alaska 99811-1182                                                    
  POSITION STATEMENT:  Commented on SB 79.                                     
                                                                               
  Carl Luck, Director                                                          
  Occupational Licensing                                                       
  Department of commerce and Economic Development                              
  P.O. Box 0568                                                                
  Juneau, Alaska 99811-0806                                                    
  POSITION STATEMENT:  Commented on SB 79.                                     
                                                                               
  Randy Welker, Legislative Auditor                                            
  Legislative Audit Division                                                   
  P.O. Box 113300                                                              
  Juneau, Alaska 99811-3300                                                    
  POSITION STATEMENT:  Commented on SB 79.                                     
                                                                               
  ACTION NARRATIVE                                                             
  TAPE 93-27, SIDE A                                                           
  Number 001                                                                   
                                                                               
                                                                               
  SENATOR KELLY called  the Senate Labor and  Commerce meeting                 
  to  order  at  2:00  p.m.   and  announced  SB  177  (SALMON                 
  MARKETING,  TAX;ASMI   BOARD  &   DUTIES)  to   be  up   for                 
  consideration.                                                               
                                                                               
  SENATOR  PEARCE   explained  that  the   proposed  committee                 
  substitute was in response to a number of concerns expressed                 
  in the previous meeting.                                                     
                                                                               
  KIM  ELTON, Director of ASMI,  said he anticipated a revenue                 
  stream of between $3 - $5 million with this legislation.  It                 
  supplements revenues received from the processing segment of                 
  the industry.  The harvester tax dollars envisioned in  this                 
  bill would be used  exclusively for salmon marketing in  the                 
  domestic market place.  The processing revenues are now used                 
  for all species.                                                             
                                                                               
  MR.  ELTON  noted  that  the  data  and  market  information                 
  provision of  Section 5  should be  available to the  public                 
  rather than to just one portion of ADF&G.                                    
                                                                               
  Number 171                                                                   
                                                                               
  SENATOR LINCOLN asked about the expansion of the Board.  MR.                 
  ELTON explained that  the Board now  consists of 18  members                 
  and  would expand  to  24 members  comprised of  eight large                 
  processors, 4 small  processors, and 12 fishermen.   SENATOR                 
  LINCOLN  asked who wanted the  expansion.  MR. ELTON replied                 
  that   expansion   was   designed   to   accommodate   50/50                 
  representation among the processors and  fishermen.  He said                 
  under  the  voluntary  processor  assessment the  processing                 
  segment is  contributing hundreds of  thousands of  dollars.                 
  If any of them were removed  from the Board, it would create                 
  a significant amount  of turmoil  in the industry.   So  for                 
  equal representation of fishermen, they  had to add members.                 
  The public  member was  dropped which  he was  uncomfortable                 
  with.                                                                        
                                                                               
  SENATOR SHARP said  he was  uncomfortable taking the  public                 
  member off  the Board since a considerable  amount of public                 
  treasury money was going into ASMI.                                          
                                                                               
  MR.  ELTON  explained that  the  Board is  appointed  by the                 
  Governor and then the Board elects  a chairman annually.  It                 
  is very  important to  maintain the 50  percent balance,  he                 
  reiterated.                                                                  
                                                                               
  Number 303                                                                   
                                                                               
  SENATOR LINCOLN thought the appointing process left too much                 
  discretion to the Governor.                                                  
                                                                               
  There was some discussion about the  makeup of the Board and                 
  Senator  Rieger  thought  a  smaller  Board  might  be  more                 
                                                                               
                                                                               
  workable.    MR.  ELTON  said  a  smaller  number  would  be                 
  difficult, because there would be a lot of bruised feelings.                 
  Also with a larger number of fishermen, many gear groups, as                 
  well  as   different  regions   of  the   state,  could   be                 
  represented.                                                                 
                                                                               
  SENTOR KELLY said they would add the public member back into                 
  the bill.                                                                    
                                                                               
  Number 413                                                                   
                                                                               
  CHERYL  SUTTON,  United  Fisherman  of  Alaska, said  as  an                 
  industry they have more than paid their way.   She said they                 
  like the bill except for Section  5.  She said it was  their                 
  intent that  beneath the  ASMI Board  there would  be a  new                 
  salmon committee that would essentially oversee the domestic                 
  marketing  program  which  would be  largely  funded  by the                 
  assessment of  fishermen/harvesters.  They  want a committee                 
  of seven, comprised of four  fishermen and three processors.                 
                                                                               
                                                                               
  SENATOR KELLY  read the proposed language and  asked if they                 
  should require  the members  to be  Alaska  residents.   MS.                 
  SUTTON said that would not  be good, because their processor                 
  members may or  may not be residents of  the state, but have                 
  tremendous cash flow within the state.                                       
                                                                               
  SENATOR KELLY asked if there would  be a problem with having                 
  the fishermen  being residents of  Alaska.  MS.  SUTTON said                 
  that would  be no  problem  for them,  but it  might not  be                 
  legal.                                                                       
                                                                               
  Number 526                                                                   
                                                                               
  SENATOR  LINCOLN   said   the   language   regarding   which                 
  Commissioner  does  the appointing  was  unclear.   She also                 
  wondered  if  the Board  could  select the  salmon marketing                 
  committee without prejudice.  MS. SUTTON said she didn't see                 
  prejudice as a problem based on her previous experience.                     
                                                                               
  SENATOR  RIEGER   suggested   that   there   needs   to   be                 
  clarification on which commissioner does the appointing.                     
                                                                               
  SENATOR  LINCOLN  said  she  really  wanted  to  see  Alaska                 
  residents on the  Board.   SENATOR KELLY suggested  language                 
  saying "the other three should  be Alaska residents selected                 
  from other fishery  regions within the state  and shall hold                 
  permits under AS 16.43."                                                     
                                                                               
  Number 557                                                                   
                                                                               
  Referring to page  3, line 4,  MS. SUTTON said there  was no                 
  reason to create  an Executive Board.   MR. ELTON said  that                 
  language  applied to the  committee system and  there was no                 
                                                                               
                                                                               
  problem with keeping that.                                                   
                                                                               
  TAPE 93-27, SIDE B                                                           
  Number 580                                                                   
                                                                               
  SENATOR LINCOLN thought there should be language stating the                 
  duties of the new salmon marketing board.                                    
                                                                               
  Number 573                                                                   
                                                                               
  KATE TROLL,  Southeast Alaska Seiners  Association, said the                 
  ability of the fishermen to afford the one percent tax was a                 
  problem.   Southeast Alaska is the only  region that already                 
  pays a three percent enhancement tax.  All the other regions                 
  pay  two percent  or less.   Bristol Bay doesn't  have a tax                 
  since they  have plenty  of fish  with the  wild runs.   MS.                 
  TROLL said they would like the  option of taking one percent                 
  of their enhancement tax and spending it on marketing.                       
                                                                               
  MS. TROLL said she  had asked Commissioner Fuhs if  he could                 
  allow  the  aquaculture  associations to  restructure  their                 
  loans  until  marketing  kicks in,  if  this  amendment goes                 
  through.  He said there was no problem with that.                            
                                                                               
  She  said they would  support the bill  if they got  the one                 
  percent credit.                                                              
                                                                               
  Number 463                                                                   
                                                                               
  DEAN   PADDOCK,   Bristol   Bay  Driftnetters   Association,                 
  supported a one percent assessment for salmon marketing.  He                 
  also supported changing Section 9 as Ms. Sutton suggested.                   
                                                                               
  Number 425                                                                   
                                                                               
  ROBIN  SAMUELSON, Bristol  Bay fisherman,  opposed  the tax,                 
  because he thought Western  Alaska would be left out  of the                 
  picture   and   it   would  amount   to   taxation   without                 
  representation.  He  said they pay  city taxes in excess  of                 
  five percent.  He said the  domestic processors have to show                 
  a willingness to bring fish into  the United States and then                 
  they  would follow  with marketing.   This  bill would  also                 
  benefit the hatchery produced fisheries over natural stocks,                 
  he said.                                                                     
                                                                               
  Number 406                                                                   
                                                                               
  SENATOR KELLY closed the  public hearing on SB 177  and said                 
  he would have staff work on a new committee substitute.                      
  SENATOR  KELLY  announced  SSHB   126  (PUBLIC  CONSTRUCTION                 
  PREVAILING WAGE RATES) to be up for consideration.                           
                                                                               
                                                                               
  JUDY JORDAN, Staff for Representative  Gail Phillips, read a                 
  brief sponsor statement.                                                     
                                                                               
  SENATOR KELLY  asked if  there  was anyone  who opposed  the                 
  bill.  There was no opposition.                                              
                                                                               
  SENATOR RIEGER moved to pass SSHB 126 from committee.  There                 
  were no objections and it was so ordered.                                    
  Number 370                                                                   
  SENATOR   KELLY  announced   SB  79   (BOARDS,  COMMISSIONS,                 
  COUNCILS, AUTHORITIES) to be up for consideration.                           
                                                                               
  JOSH FINK, Legislative Aide for Senator Kelly, explained the                 
  amendments.                                                                  
                                                                               
  RANDY WELKER,  Legislative Auditor, said  the only amendment                 
  he wanted them  to consider is on  page 5, line 5  where the                 
  reference  to  the  Alaska Women's  Commission  needs  to be                 
  deleted since it no longer exists.                                           
                                                                               
  He said  in reestablishing dates,  in a ten-year  cycle they                 
  moved some  of the Boards  to a later  date in  the ten-year                 
  cycle.    Others that  have had  problems  or have  not been                 
  reviewed recently   are in the  earlier years of the  sunset                 
  cycle.                                                                       
                                                                               
  Number 276                                                                   
                                                                               
  CARL LOCK, Director  of Occupational Licensing, said  all of                 
  the  Boards are  self  sufficient financially.   Eliminating                 
  boards does not  save any money.   He wanted to know  if the                 
  legislature wanted to continue to license the function if it                 
  sunsets the board.  He said seven boards sunset this year if                 
  no action is taken.                                                          
                                                                               
  SENATOR  KELLY  asked  what  happened  with  the  electrical                 
  examiners.  MR.  FINK replied that  they had sunseted.   MR.                 
  LOCK  explained   that  licensing   requirements  for   that                 
  profession no longer exist.                                                  
                                                                               
  SENATOR KELLY  asked what  would happen  if the  legislature                 
  reinstated them.  MR. FINK said they would be very pleased.                  
                                                                               
  MR. WELKER said their licenses actually expire in August and                 
  without the  authority to  reissue licenses,  they would  go                 
  away.                                                                        
                                                                               
  SENATOR KELLY  asked how they could be given that authority.                 
  MR. WELKER said the DOL had introduced separate legislation.                 
  SENATOR KELLY said  that legislation was  dead.  MR.  WELKER                 
  said they  could resurrect the  Board today or  transfer the                 
  authority  to  the  Division  to  issue  licenses  for  this                 
                                                                               
                                                                               
  profession in this legislation.                                              
                                                                               
  SENATOR KELLY asked staff to take care of that.                              
                                                                               
  Number 172                                                                   
                                                                               
  SENATOR SHARP said he had letters  from constituents who are                 
  very opposed  to HB 249,  which reestablishes  the Board  of                 
  Electrical Examiners and extends the termination date of the                 
  Board of Mechanical Examiners.                                               
                                                                               
  SENATOR SHARP moved to adopt a conceptual amendment adopting                 
  a committee substitute with all the  changes.  There were no                 
  objections and it was so ordered.                                            
  SENATOR KELLY adjourned the meeting at 3:28 p.m.                             

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