Legislature(1993 - 1994)
04/08/1993 02:00 PM L&C
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.