03/23/2020 03:30 PM Senate RESOURCES
| Audio | Topic |
|---|---|
| Start | |
| SB184 | |
| HB203 | |
| SJR15 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 204 | TELECONFERENCED | |
| += | SJR 15 | TELECONFERENCED | |
| += | SB 184 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 203 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE RESOURCES STANDING COMMITTEE
March 23, 2020
3:44 p.m.
MEMBERS PRESENT
Senator Peter Micciche, Chair
Senator John Coghill, Vice Chair
Senator Click Bishop
Senator Joshua Revak
Senator Scott Kawasaki
Senator Jesse Kiehl
MEMBERS ABSENT
Senator Cathy Giessel
COMMITTEE CALENDAR
SENATE BILL NO. 184
"An Act extending the fishery resource landing tax credit for
certain taxpayers that harvest fishery resources under the
provisions of a community development quota; providing for an
effective date by amending the effective date of sec. 36, ch.
61, SLA 2014; and providing for an effective date."
- MOVED SB 184 OUT OF COMMITTEE
SENATE BILL NO. 204
"An Act relating to state lands; relating to the authority of
the Department of Natural Resources over state owned lands;
relating to the disposal of state land; relating to the leasing
and sale of state land for commercial or industrial development;
repealing establishment of recreation rivers and recreation
river corridors; and providing for an effective date."
- <BILL HEARING CANCELED>
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 203(FSH)
"An Act relating to transportation of live crab."
- MOVED CSHB 203(FSH) OUT OF COMMITTEE
SENATE JOINT RESOLUTION NO. 15
Requesting the United States Congress to repeal sec. 20001(b)(5)
of the Tax Cuts and Jobs Act to honor the Alaska Statehood Act
with respect to the state's share of bonuses, royalties, and
rentals from exploration and development in the coastal plain of
the Arctic National Wildlife Refuge.
- MOVED SJR 15 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 184
SHORT TITLE: EXTEND FISHERY RESOURCE LAND. TAX CREDIT
SPONSOR(s): OLSON
02/12/20 (S) READ THE FIRST TIME - REFERRALS
02/12/20 (S) RES, FIN
03/13/20 (S) RES AT 3:30 PM BUTROVICH 205
03/13/20 (S) Heard & Held
03/13/20 (S) MINUTE(RES)
03/23/20 (S) RES AT 3:30 PM BUTROVICH 205
BILL: HB 203
SHORT TITLE: TRANSPORTATION OF LIVE CRAB
SPONSOR(s): KNOPP
01/21/20 (H) READ THE FIRST TIME - REFERRALS
01/21/20 (H) FSH, RES
01/30/20 (H) FSH AT 11:00 AM GRUENBERG 120
01/30/20 (H) Heard & Held
01/30/20 (H) MINUTE(FSH)
02/04/20 (H) FSH AT 11:00 AM GRUENBERG 120
02/04/20 (H) Moved CSHB 203(FSH) Out of Committee
02/04/20 (H) MINUTE(FSH)
02/05/20 (H) FSH RPT CS(FSH) 5DP
02/05/20 (H) DP: VANCE, KOPP, EDGMON, NEUMAN, STUTES
02/19/20 (H) RES AT 1:00 PM BARNES 124
02/19/20 (H) Heard & Held
02/19/20 (H) MINUTE(RES)
02/21/20 (H) RES AT 1:00 PM BARNES 124
02/21/20 (H) Moved CSHB 203(FSH) Out of Committee
02/21/20 (H) MINUTE(RES)
02/24/20 (H) RES RPT CS(FSH) 6DP
02/24/20 (H) DP: TUCK, HANNAN, TALERICO, HOPKINS,
TARR, LINCOLN
03/05/20 (H) TRANSMITTED TO (S)
03/05/20 (H) VERSION: CSHB 203(FSH)
03/06/20 (S) READ THE FIRST TIME - REFERRALS
03/06/20 (S) RES
03/16/20 (S) RES AT 3:30 PM BUTROVICH 205
03/16/20 (S) Heard & Held
03/16/20 (S) MINUTE(RES)
03/23/20 (S) RES AT 3:30 PM BUTROVICH 205
BILL: SJR 15
SHORT TITLE: STATE FULL SHARE OF PROFITS IN ANWR
SPONSOR(s): WIELECHOWSKI
02/05/20 (S) READ THE FIRST TIME - REFERRALS
02/05/20 (S) RES
03/13/20 (S) RES AT 3:30 PM BUTROVICH 205
03/13/20 (S) <Bill Hearing Canceled>
03/23/20 (S) RES AT 3:30 PM BUTROVICH 205
WITNESS REGISTER
SETH BEAVER, Staff
Senator Donny Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 184 on behalf of the sponsor.
DENISE LICCIOLI, Staff
Senator Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided information
on SB 184.
NORMAN VAN VACTOR, Chief Executive Officer
Bristol Bay Economic Development Corporation
Dillingham, Alaska
POSITION STATEMENT: Testified in support of SB 184.
ANGEL DROBNICA, Director of Fisheries and Government Affairs
Aleutian Pribilof Island Community Development Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 184.
RICK WALICKI, Treasurer and Chief Financial Officer
Norton Sound Economic Development Corporation
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 184.
GERALD DAVIS, General Counsel
Yukon Delta Fisheries Development Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 184.
HEATHER MCCARTY, Consultant
Central Bering Sea Fishermen's Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 184.
INTIMAYO HARBISON, Staff
Representative Gary Knopp
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 203 on behalf of the sponsor.
FORREST BOWERS, Deputy Director
Alaska Department of Fish and Game
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 203.
SENATOR BILL WIELECHOWSKI
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SJR 15.
ALEXANDER SCHROEDER, Staff
Senator Bill Wielechowski
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SJR 15 on behalf of the sponsor.
ACTION NARRATIVE
3:44:49 PM
CHAIR PETER MICCICHE called the Senate Resources Standing
Committee meeting to order at 3:44 p.m. Present at the call to
order were Senators Revak, Coghill, Bishop, Kawasaki, Kiehl, and
Chair Micciche.
SB 184-EXTEND FISHERY RESOURCE LAND. TAX CREDIT
3:45:49 PM
CHAIR MICCICHE announced that the first order of business would
be SENATE BILL NO. 184, "An Act extending the fishery resource
landing tax credit for certain taxpayers that harvest fishery
resources under the provisions of a community development quota;
providing for an effective date by amending the effective date
of sec. 36, ch. 61, SLA 2014; and providing for an effective
date."
3:46:30 PM
SETH BEAVER, Staff, Senator Donny Olson, Alaska State
Legislature, Juneau, Alaska, stated that SB 184 would extend the
termination date for the fishery resource landing tax credit for
10 years. The taxpayer contributions through the program are
directed towards nonprofit corporations incorporated within the
state for scholarships for study within the state, fisheries
management training within the state, seafood industry
employment, and capital contributions in the form of loans to
construct or improve seafood transportation facilities such as
docks.
CHAIR MICCICHE noted that he was not aware of any opposition to
SB 184.
3:47:40 PM
DENISE LICCIOLI, Staff, Senator Donny Olson, Alaska State
Legislature, Juneau, Alaska, said the sponsor sends his regrets
for not attending the bill hearing due to illness.
MR. BEAVER summarized that SB 184 would extend the fishery
resource landing tax credit termination date to December 31,
2030.
3:48:02 PM
CHAIR MICCICHE opened public testimony.
3:48:34 PM
NORMAN VAN VACTOR, Chief Executive Officer, Bristol Bay Economic
Development Corporation, Dillingham, Alaska, testified in
support of SB 184. He said the fishery resource landing tax
credit has served the Bristol Bay region and the State of Alaska
exceptionally well.
3:49:01 PM
ANGEL DROBNICA, Director of Fisheries and Government Affairs,
Aleutian Pribilof Island Community Development Association,
Juneau, Alaska, testified in support of SB 184. She said the
Aleutian Pribilof Island Community Development Association
(APICDA) is one of the six groups in the Community Development
Quota (CDQ) Program. The CDQ Program has provided very important
sources of revenue for the Bering Sea and Aleutian Islands
region that helps support the mission of APICDA.
MS. DROBNICA detailed that APICDA has received approximately
$600,000 in tax credit funds over the past 5 years. APICDA has
expended funds on the statutorily allowable categories including
training in the state for employment in the seafood industry and
making capital contributions to fisheries processing facilities.
3:50:21 PM
RICK WALICKI, Treasurer and Chief Financial Officer, Norton
Sound Economic Development Corporation, Anchorage, Alaska,
testified in support of SB 184. He said the Norton Sound
Economic Development Corporation (NSEDC) is one of the CDQ
groups. They work with the Norton Sound Fund to spend tax credit
funds on fisheries research and employment training for the
Norton Sound region. He said they would like that to continue.
3:51:00 PM
GERALD DAVIS, General Counsel, Yukon Delta Fisheries Development
Association, Anchorage, Alaska, testified in support of SB 184.
He said the Yukon Delta Fisheries Development Association
(YDFDA) is one of the six CDQ groups. He said YDFDA fully
utilizes all aspects of the fishery resource landing tax credit.
They use approximately $100,000 a year from the tax credit to
directly pay for all aspects of in-season fish testing on the
Lower Yukon by the Alaska Department of Fish and Game (ADF&G).
YDFDA will do even more in 2020 because ADF&G was reevaluating
their efforts and the association would likely be picking up the
scale sampling for the department. YDFDA uses the tax credit
money without offsets, without administration fees, and directly
pays the fisheries monitoring work on the Lower Yukon River.
3:52:03 PM
HEATHER MCCARTY, Consultant, Central Bering Sea Fishermen's
Association, Juneau, Alaska, testified in support of SB 184. She
said the Central Bering Sea Fishermen's Association (CBSFA)
represents St. Paul in the Pribilof Islands as one of the six
CDQ groups. The funds that CBSFA has received and expended under
the tax credit program have helped the association support
several important scientific undertakings that have directly
benefited both community fishermen and the marine resources that
the region depends on, notably halibut and crab. CBSFA has
supported funding for studies for the International Pacific
Halibut Commission (IPHC) regarding the affective water
temperature on halibut movement, whale degradation, and blue
king crab restoration for the Pribilof Islands. CBSFA could not
have funded the important studies without the tax credit funds.
3:53:06 PM
CHAIR MICCICHE closed public testimony.
3:53:28 PM
SENATOR COGHILL moved to report SB 184, work order 31-LS1539\A,
from committee with individual recommendations and attached
fiscal note.
3:53:36 PM
CHAIR MICCICHE found no objection and SB 184 was reported from
the Senate Resources Standing Committee.
HB 203-TRANSPORTATION OF LIVE CRAB
3:53:48 PM
CHAIR MICCICHE announced that the next order of business would
be CS FOR HOUSE BILL NO. 203(FSH), "An Act relating to
transportation of live crab."
3:54:16 PM
INTIMAYO HARBISON, Staff, Representative Gary Knopp, Alaska
State Legislature, Juneau, Alaska, said HB 203 would remove the
restrictions on surface transport of King crab, Dungeness crab,
and Tanner crab.
Responding to Senator Coghill's earlier question about the
effective date for HB 203, he said the sponsor believes that the
standard 90-day effective date is more than sufficient because
the crabbing season will be over at that time.
He noted that Senator Kiehl also had a question during the
previous hearing that the Alaska Department of Fish and Game
(ADF&G) would answer.
SENATOR KIEHL restated his question which was whether ADF&G has
any biological concerns should a "crab spill" occur during
transportation.
3:55:39 PM
FORREST BOWERS, Deputy Director, Alaska Department of Fish and
Game, Juneau, Alaska, answered that the department does not have
any biological concerns about a crab spill. He pointed out that
normal crab fishing practices keep crabs alive in circulating
seawater tanks for up to two or three weeks. Fishermen move live
crab from the Bering Sea throughout the state to various ports
including Kodiak, Homer, and Southeast Alaska. There is risk of
disease and parasitic transfer, but a lot of elements would have
to align for that to happen. He summarized that the department
does not have concerns regarding the current practice of
shipping live crab or what HB 203 proposes.
3:57:41 PM
CHAIR MICCICHE closed public testimony.
He commented that SB 184 and HB 203 are important bills and
noted that neither has a fiscal note. He said the legislature
will have to help people get back to work and get the most value
of the state's resources once the difficulty related to COVID-19
ends. He asked for a motion.
3:58:07 PM
SENATOR COGHILL moved to report CSHB 203(FSH), work order 31-
LS1405\U, from committee with individual recommendations and
attached fiscal note.
3:58:17 PM
CHAIR MICCICHE found no objection and CSHB 203(FSH) was reported
from the Senate Resources Standing Committee.
SJR 15-STATE FULL SHARE OF PROFITS IN ANWR
3:58:24 PM
CHAIR MICCICHE announced that the final order of business would
be SENATE JOINT RESOLUTION NO. 15, requesting the United States
Congress to repeal sec. 20001(b)(5) of the Tax Cuts and Jobs Act
to honor the Alaska Statehood Act with respect to the state's
share of bonuses, royalties, and rentals from exploration and
development in the coastal plain of the Arctic National Wildlife
Refuge.
3:58:42 PM
SENATOR BILL WIELECHOWSKI, Alaska State Legislature, Juneau,
Alaska, sponsor of SJR 15, thanked the committee for hearing SJR
15 and noted that his intern would present the resolution.
3:59:00 PM
ALEXANDER SCHROEDER, Staff, Senator Wielechowski, Alaska State
Legislature, Juneau, Alaska, said SJR 15 urges Congress to
repeal section 20001(b)(5) of the Tax Cuts and Jobs Act of 2017,
a bill that opened federally owned land in the Arctic National
Wildlife Refuge (ANWR) for oil, gas, and mining leasing and
exploration. That bill changed the revenue sharing promise made
at statehood between the State of Alaska and the federal
government from 90 percent to 50 percent.
MR. SCHROEDER explained that the Alaska Statehood Act adopted
part of the Mineral Leasing Act to protect the State's mineral
rights. Section 28(b) in the Alaska Statehood Act asserts that
the State would receive 90 percent of oil and gas revenue from
federal land. Lawmakers appropriately decided to ensure Alaska
realized its economic potential via passage of the Alaska
Statehood Act.
He said reducing Alaska's share from 90 percent to 50 percent
already has projected consequences. While most revenues from
ANWR are unprojectable, bonus lease sale revenues are already
determined with certainty by the Congressional Budget Office
(CBO) 2017 analysis. That analysis estimated that gross bonus
lease sales from 800,000 acres out of the total 1.5 million
acres would be approximately $2.2 billion over a 10-year period.
The difference between the State receiving a 90 percent versus a
50 percent revenue share is $880 million.
MR. SCHROEDER summarized that SJR 15 asks Congress to repeal
section 20001(b)(5) of the Tax Cuts and Jobs Act and return
revenue sharing to the 90/10 agreement. SJR 15 would show that
the federal government recognizes the importance of why it made
a promise to the people of Alaska when the State was admitted
into the union.
4:02:34 PM
SENATOR KAWASAKI said he does not understand why Congress
changed the share percentage to 50 percent in the Tax Cuts and
Jobs Act. He asked if there was anything in the congressional
record that indicated whether the change was necessary or just
an oversight.
SENATOR WIELECHOWSKI said he presumes that the Alaska
congressional delegation did what they needed to do to get the
votes. However, the Alaska Statehood Act clearly states that
Alaska is to get 90 percent. The U.S. Secretary of Interior
during the statehood campaign said, "The Statehood Act reaffirms
Alaska's preferential treatment in receiving 90 percent of all
revenues from oil, gas, and coal leasing on the public domain."
The people of Alaska voted on statehood based on the promise by
the federal government and in the language of the Alaska
Statehood Act that clearly gives the state 90 percent. It is
something Congress should have considered. Congressional deals
should not trump what was promised in the Alaska Statehood Act,
he said.
4:04:14 PM
CHAIR MICCICHE said the Alaska congressional delegation probably
decided that 50 percent of something was better than 90 percent
of nothing. He said he hates to second-guess that decision, but
the resolution brings up a point that is worthy of discussion.
SENATOR WIELECHOWSKI related that in a previous year he
introduced a floor amendment urging Congress to honor what he is
proposing. There was wide spread support, but Senate members
recommended a resolution instead of an amendment and that's
before the committee now.
He said he believes that the State must constantly reassert its
right to the promises that the federal government made or it
could lose those rights under the theory in law called "laches
or waiver." That is that rights that are not asserted may be
lost. He said it's important for the State to assert its rights
forestalling potential future federal rollbacks.
CHAIR MICCICHE said he appreciates the resolution and the
discussion. He agreed that Alaska needs to be vigilant to
prevent further erosion of the State's rights.
He asked Senator Coghill if he had any comments or questions
since he has expertise in the areas of Alaska's constitution,
statehood, and ANILCA.
4:07:00 PM
SENATOR COGHILL thanked Senator Wielechowski for bringing the
resolution forward and said he is exactly right. He said the
resolution is totally appropriate as both a statement of fact
and a political pressure point.
He recalled that he struggled with the amendment that Senator
Wielechowski referenced because the legislature was in the
middle of asking the congressional delegation for help with
something else. However, the legislature must continuously
remind the delegation to bargain more for Alaska, especially
when major banks are now bailing on the state's Arctic resource
base while the federal government does not help.
SENATOR COGHILL said he has not studied every word of SJR 15,
but it is appropriate. Without the resolution, people will say
Alaskans did not say anything when the federal government
reduced the revenue sharing to 50 percent.
4:09:19 PM
CHAIR MICCICHE said he would like to have a conversation with a
staff member from the congressional delegation to provide their
take on the Tax Cuts and Jobs Act. He noted that the committee
will see what time it has during the legislative session based
upon pending COVID-19 decisions.
He remarked that he does not think the congressional delegation
would relinquish the State's rights easily. He said he thinks it
must have been their only solution, much like the public knowing
why state legislators do the things they do.
SENATOR COGHILL suggested that to expedite the resolution, the
sponsor could further explain section 20001(b)(5) in the Tax
Cuts and Jobs Act that the resolution requests for repeal.
CHAIR MICCICHE replied that he did not know how realistic the
request for expediting the resolution was due to the intent of
legislators to leave Juneau within the next couple of days
because of COVID-19.
4:11:10 PM
SENATOR WIELECHOWSKI explained that section 20001(b)(5) in the
Tax Cuts Act reduces the payment to the State of Alaska on
rental and bonus receipts derived from oil and gas program
operations on federal land from 90 percent to 50 percent. The
section makes the change despite the Mineral Leasing Act that
authorized the 90 percent payment. The Alaska Statehood Act
relied on the Mineral Leasing Act.
SENATOR COGHILL said with Chair Micciche's permission that the
resolution could move up to Senate Rules, a committee he chairs.
He noted that he addressed specific questions to prepare certain
members before the resolution gets to the Senate floor.
SENATOR COGHILL moved to report SJR 15 from committee.
CHAIR MICCICHE stated that he did not mind the motion but
emphasized that he wanted to be part of the discussion. He said
he had a problem with the committee not involving the people
that made the decision on the Tax Cuts and Jobs Act.
SENATOR COGHILL conceded that the legislature should have said
something last year, but the timing was bad due to a commitment
he made to a congressional delegation member on another front.
CHAIR MICCICHE noted that Senator Coghill previously made a
motion on SJR 15.
4:13:26 PM
SENATOR COGHILL restated his motion to report SJR 15, work order
31-LS1378\K, from committee with individual recommendations and
attached fiscal note.
CHAIR MICCICHE asked if anyone in the room or online wished to
testify. Finding no one, he closed public testimony.
4:14:09 PM
CHAIR MICCICHE found no objection to the motion and SJR 15 was
reported from the Senate Resources Standing Committee.
4:14:17 PM
There being no further business to come before the committee,
Chair Micciche adjourned the Senate Resources Standing Committee
meeting at 4:14 p.m.
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