Legislature(2001 - 2002)

04/11/2002 10:38 AM RLS

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= 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.                                                                           

Document Name Date/Time Subjects