HOUSE SPECIAL COMMITTEE ON FISHERIES February 20, 1995 5:50 p.m. MEMBERS PRESENT Representative Alan Austerman, Chairman Representative Gary Davis Representative Kim Elton Representative Scott Ogan MEMBERS ABSENT Representative Carl Moses COMMITTEE CALENDAR * HB 140: "An Act relating to surety bonds required of certain fish processors." PASSED OUT OF COMMITTEE * HB 141: "An Act relating to the appointment of members of the Board of Fisheries." HEARD AND HELD (* First public hearing) WITNESS REGISTER ANDY GOLIA Post Office Box 663 Dillingham, Alaska 99576 Telephone: 842-5307 POSITION STATEMENT: Supported HB 140 JEROME SELBY, Mayor Kodiak Island Borough 722 Mill Bay Road Kodiak, Alaska 99615 Telephone: 486-9301 POSITION STATEMENT: Supported HB 140 JERRY McCUNE, President United Fishermen of Alaska 211 Fourth Street, Suite 112 Juneau, Alaska 99801 Telephone: 586-2820 POSITION STATEMENT: Supported HB 140 and HB 141 GERON BRUCE, Legislative Liaison Alaska Department of Fish and Game Post Office Box 25526 Juneau, Alaska 99811-5526 Telephone: 465-4100 POSITION STATEMENT: Supported HB 141 PREVIOUS ACTION BILL: HB 140 SHORT TITLE: SMALL FISH PROCESSOR SURETY BONDS SPONSOR(S): REPRESENTATIVE(S) AUSTERMAN JRN-DATE JRN-PG ACTION 02/01/95 199 (H) READ THE FIRST TIME - REFERRAL(S) 02/01/95 199 (H) FSH, L&C 02/15/95 (H) FSH AT 03:30 PM CAPITOL 124 02/20/95 (H) FSH AT 05:00 PM CAPITOL 124  BILL: HB 141 SHORT TITLE: TERM OF FISH & GAME BOARD MEMBERS SPONSOR(S): REPRESENTATIVE(S) AUSTERMAN,Grussendorf JRN-DATE JRN-PG ACTION 02/01/95 199 (H) READ THE FIRST TIME - REFERRAL(S) 02/01/95 199 (H) FSH, RES 02/15/95 (H) FSH AT 03:30 PM CAPITOL 124 02/20/95 (H) FSH AT 05:00 PM CAPITOL 124 ACTION NARRATIVE TAPE 95-9, SIDE A Number 000 The House Special Committee on Fisheries was called to order by Chairman Alan Austerman at 5:50 p.m. Members present at the call to order were Representatives Davis and Elton. HFSH - 02/20/95 HB 140 - SMALL FISH PROCESSOR SURETY BONDS Number 061 CHAIRMAN AUSTERMAN called for a ten minute recess. Number 062 CHAIRMAN AUSTERMAN reopened the meeting at 6:05 p.m., noting that Representative Ogan was present. Number 076 ANDY GOLIA, testified via teleconference from Dillingham, in support of HB 140. He stated for the record, "I believe HB 140 will increase the economic opportunities for small processors or operators who want to market salmon. It is estimated that the Bristol Bay permit holder, has paid about $1.4 million in the 1994 season, towards the 1 percent marketing tax. I expect the domestic market to open up for Alaska salmon and HB 140 will help to facilitate that." Number 155 JEROME SELBY, Mayor, Kodiak Island Borough, testified via teleconference from Kodiak, in support of HB 140. He stated, "HB 140 was drafted in response to a resolution passed by the Southwest Alaska Municipal Conference. It is orientated towards trying to make it a little easier for some of the smaller communities to develop an economy, geared towards processing specialty packs of fish products. The purpose of this bill to allow these people to reduce their start up costs and build this type of economic venture. The marketing analysts seem to think that there is a viable market for this kind of specialty product." Number 215 JERRY McCUNE, President, United Fishermen of Alaska, testified in support of HB 140. He stated, "This bill would be very helpful to the small outfits starting up, because it drops the $10,000 bonding requirement, for processing under 30,000 pounds." Number 231 REPRESENTATIVE SCOTT OGAN asked, "What is the cost difference between a $10,000 surety bond and a $2,000 surety bond?" MR. McCUNE wasn't sure what a company charges. MR. SELBY stated, "There is no hard set fee. Each case is treated on an individual basis. The surety bond companies consider the product, the risk involved and circumstantial information." Number 251 REPRESENTATIVE KIM ELTON moved an amendment forward. The amendment takes place on page 2, line 10, insert the words that are the same as on page 1 where it says if the money is insufficient as a bond, then the bond will double over time if a processor has a claim against him or a judgment resulting from a claim. Basically, it takes Section 1 and inserts it into Section 2. MR. SELBY stated he had no objection to the amendment. MR. GOLIA said he did not object to the amendment. Number 295 CHAIRMAN AUSTERMAN asked if there was any opposition from the committee. Hearing no objection, Amendment Number 1 passed. REPRESENTATIVE ELTON made a motion to move CSHB 140(FSH) out of committee with individual recommendations, and a zero fiscal note. Hearing no objection, CHAIRMAN AUSTERMAN announced that CSHB 140(FSH) moved out of the House Special Committee on Fisheries. HFSH - 02/20/95 HB 141 - TERM OF FISH & GAME BOARD MEMBERS Number 314 GERON BRUCE, Legislative Liaison, Alaska Department of Fish and Game, testified in support of HB 141. He stated, "This bill is a result of concerns brought forth by the Fisheries Policy Transition Team. Since HB 141 is being held over, we would like to work with the committee on rewording the transition section of the bill." MR. McCUNE testified in support of HB 141. He added, "I was a member of the transition team and we felt that this should make the Board of Fish more streamline and more efficient." Number 362 REPRESENTATIVE OGAN commented, "This bill should help in the confirmation process and might produce a better selection of candidates knowing they aren't going to get beat up." CHAIRMAN AUSTERMAN indicated that HB 141 would be held over in committee. ADJOURNMENT CHAIRMAN AUSTERMAN adjourned the meeting at 6:23 p.m.