Legislature(2001 - 2002)
04/11/2002 10:38 AM Senate RLS
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE RULES COMMITTEE
April 11, 2001
10:38 a.m.
MEMBERS PRESENT
Senator Randy Phillips, Chair
Senator John Cowdery, Vice Chair
Senator Gene Therriault
Senator Johnny Ellis
MEMBERS ABSENT
Senator Rick Halford
COMMITTEE CALENDAR
SENATE BILL NO. 340
"An Act relating to treatment of permanent fund dividends for
purposes of determining eligibility for certain benefits; and
providing for an effective date."
APPROVED FOR CALENDARING
SENATE BILL NO. 354
"An Act relating to the prices paid by milk processing plants to
suppliers of fluid milk."
APPROVED FOR CALENDARING
SENATE BILL NO. 358
"An Act naming state ferries."
APPROVED FOR CALENDARING
HOUSE BILL NO. 390
"An Act delaying the repeal of the salmon marketing tax;
expanding the allowable use of that tax for the salmon marketing
programs of the Alaska Seafood Marketing Institute; relating to
the Alaska Seafood Marketing Institute's salmon marketing
committee; and providing for an effective date."
APPROVED SCS HB 390(RLS) FOR CALENDARING
HOUSE JOINT RESOLUTION NO. 35 am
Relating to urging the United States Congress to amend the tax
code to permanently repeal the estate tax.
APPROVED FOR CALENDARING
PREVIOUS COMMITTEE ACTION
SB 340 - See Finance Report dated 4/10/02.
SB 354 - See Resources minutes dated 4/3/02.
SB 358 - See Transportation minutes dated 4/9/02.
HB 390 - No previous Senate committee action to record.
HJR 35 - See State Affairs minutes dated 3/21/02.
WITNESS REGISTER
Ms. Laura Jane Wineingar
Staff to Senator Green
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for the sponsor of SB 354
Ms. Sue Stancliff
Staff to Representative Maguire
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for the sponsor of HB 390
Ms. Kristy Tibbles
Staff to Senator Stevens
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for the sponsor of SB 282,
companion bill to HB 390
Ms. Laura Fleming
Alaska Seafood Marketing Institute
th
1111 W 8 St.
Juneau, AK 99801
POSITION STATEMENT: Stated support for HB 390 and a proposed
amendment
Mr. Heath Hilyard
Staff to Representative James
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Testified for the sponsor of HB 390
ACTION NARRATIVE
TAPE 02-6, SIDE A
Number 001
CHAIRMAN RANDY PHILLIPS called the Senate Rules Committee meeting
to order at 10:38 a.m. Senators Cowdery, Therriault, Ellis and
Phillips were present. The committee took up SB 340.
SENATOR COWDERY moved to calendar SB 340-HOLD HARMLESS PROVISIONS
OF PFD PROGRAM with its accompanying fiscal notes at the
Chairman's discretion.
SENATOR ELLIS objected. The motion carried with Senators
Therriault, Cowdery and Phillips in favor, and Senator Ellis
opposed.
SENATOR COWDERY moved to calendar SB 354-PRICES PAID BY MILK
PROCESSING PLANTS at the Chairman's discretion.
SENATOR ELLIS objected and asked for an explanation of the
measure.
MS. JANE WINEINGAR, staff to Senator Green, sponsor, stated that
SB 354 will enable farmers to be paid a fair price for milk.
Pricing will be based on the quality of milk, which depends on
many variables such as the butterfat content. Many states have
similar legislation.
SENATOR ELLIS asked why it is necessary for the State of Alaska
to weigh in to the private sector market considerations for the
price of milk.
MS. WINEINGAR said Matanuska Maid is the only processing plant in
the state so the farmers only have one choice of where to sell,
and that plant is state-owned.
SENATOR ELLIS said maybe the fact that the State of Alaska owns a
dairy is a problem. He asked why the State is in the milk
business.
SENATOR COWDERY commented that in his youth, he hauled milk from
the Matanuska Valley. At that time, two dairies were operating in
the Valley. Some dairy farms had jerseys or cows that produced
milk with a higher butterfat content. He took samples of every
day's production to determine the price. He believes that the
importance of the quality of milk is no different than the
quality of oil. He stated strong support for the bill.
SENATOR COWDERY repeated his motion to calendar SB 354 and its
accompanying zero fiscal note at the Chairman's discretion.
SENATOR ELLIS removed his objection, therefore the motion
carried.
SENATOR COWDERY moved to calendar SB 358-NAMING STATE FERRIES at
the Chairman's discretion.
CHAIRMAN PHILLIPS announced that with no objection, SB 358 would
be calendared.
SENATOR COWDERY moved to place HB 390-ASMI SALMON MARKETING &
MARKETING TAX and a proposed amendment before the committee for
the purpose of discussion. There being no objection, the motion
carried.
MS. SUE STANCLIFF, staff to Representative Maguire, sponsor,
explained that HB 390 is a companion bill to SB 282. HB 390 does
two things. First, the salmon marketing programs of the Alaska
Seafood Marketing Institute (ASMI), which are scheduled to
terminate on June 30, 2004, would be extended for five years.
Second, it extends the salmon marketing tax, which supports ASMI
activities and the domestic marketing program. That tax is
scheduled to terminate in 2003; the bill extends the tax for five
years. The bill also allows for international marketing. At
present ASMI is restricted to domestic marketing.
MR. KRISTY TIBBLES, staff to Senator Ben Stevens, sponsor of SB
282, told members that both bills are identical except for a
change made to SB 282 by the Senate Finance Committee. That
committee deleted a provision in the bill on page 3, lines 26-29,
which extended the date to 2009 for certain activities related to
the salmon marketing tax. Therefore, those activities will expire
in 2004. The important part of the bill was retained, which is
the extension of the tax. She then noted that Senator Cowdery had
a proposed amendment to delete the same provision from HB 390.
SENATOR THERRIAULT asked what activities will be curtailed by the
proposed amendment.
MS. TIBBLES said the activities are collecting, organizing,
distributing, and making available to the public information on
prices paid and market conditions for raw salmon [AS
16.51.100(7)]; and cooperating with commercial salmon fishermen,
fishermen's organizations, seafood processors, and the Alaska
Fisheries Development Foundation [AS 16.51.100(8)].
CHAIRMAN PHILLIPS asked about AS 16.51.100(9).
MS. TIBBLES explained that subsection established a salmon
marketing committee to assist and advise the board in
administering the domestic salmon marketing program that is
funded through the tax.
CHAIRMAN PHILLIPS commented that if subsections (7) through (9)
are repealed, all of those functions will go away.
MS. TIBBLES said they will in 2004.
SENATOR THERRIAULT said ASMI will have to specifically request
that those functions be extended before they expire in 2004.
MS. LAURA FLEMING, public relations director of ASMI, said ASMI
supports the reauthorization of the one percent tax. During
hearings in both the House and Senate, that provision had great
support from both processors and fishermen. Extending the tax
will prevent ASMI from getting "caught midstream" in the middle
of a summer season. ASMI supports bringing HB 390 into conformity
with the Senate Finance version of SB 282.
SENATOR COWDERY moved to adopt Amendment 1, which reads as
follows.
*Sec.4. The uncodified law of the State of Alaska
enacted in sec. 10, ch.55, SLA 1993, as amended by
sec.2, ch.111, SLA 1998, is amended to read:
Sec.10. AS 16.51.100(7), 16.51.100(8), and
16.51.100(9) are repealed June 30, 2009[2004].
CHAIRMAN PHILLIPS noted that with no objection, Amendment 1 was
adopted.
SENATOR COWDERY moved to calendar CSHB 390(RLS) with its attached
fiscal note at the Chairman's discretion. There being no
objection, the motion carried.
MR. HEATH HILYARD, staff to Representative Jeannette James,
stated he was available to answer questions about HJR 35-REPEAL
ESTATE TAX.
There being no questions, SENATOR COWDERY moved to calendar HJR
35 with its accompanying fiscal note at the Chairman's
discretion. There being no objection, the motion carried.
There being no further business to come before the committee,
CHAIRMAN PHILLIPS adjourned the meeting at 10:54 p.m.
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