Legislature(2019 - 2020)ADAMS ROOM 519
04/25/2019 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB41 | |
| HB131 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 131 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | SB 93 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
HOUSE BILL NO. 41
"An Act relating to management of enhanced stocks of
shellfish; authorizing certain nonprofit organizations
to engage in shellfish enhancement projects; relating
to application fees for salmon hatchery permits; and
providing for an effective date."
1:31:37 PM
Co-Chair Wilson discussed the bill status. She reported
that the change made by the bill would enable the program
to become self-sustainable and grow. She noted there was an
updated fiscal note.
REPRESENTATIVE DAN ORTIZ, SPONSOR, supported the bill and
believed it offered much potential for the development and
growth of the state's fishing industry.
Co-Chair Wilson reported she had been discussing with the
Department of Revenue (DOR) whether it needed to update its
system; there had been a $50,000 fiscal note. She had
reached out to the Department of Fish and Game (DFG) to
understand why it would take time before the state would
see any revenue. She read from an email explanation from
Sam Rabung [director of the Division of Commercial
Fisheries] (copy not on file):
ADF&G will implement the regulations, accept
applications, process the application through the
public process and ultimately issue a permit. The
earliest a permit could possibly be issued under this
statute if the bill was to pass this year, would be
the fall of 2020. Further, once a permit is issued,
the project would have to be developed, which would
include building the necessary infrastructure,
collecting broodstock, producing juveniles, culturing
those juveniles to the point they could be released,
and allowing them to grow in the wild to a harvestable
size. I would anticipate this to take, depending on
the species and infrastructure needs, approximately
five years or more. In a best case scenario, this
takes it out to about 2025. Couple this with ADF&G
practice of utilizing a precautionary approach to
permitting new enhancement projects, in which a
project is first permitted at a small scale in order
to evaluate it for unanticipated consequences prior to
increasing production to a level that could support a
targeted commercial, common property fishery that
could have a cost recovery assessment applied. In best
case scenario, this would likely take us out to
approximately 2030.
Co-Chair Wilson referenced the idea of changing a system in
DOR, when one may not be needed. She thought a zero fiscal
note better anticipated what was taking place.
Additionally, it was her understanding that the cost
recovery assessment was merely one option a fishery could
take, but not a requirement. She believed there were other
options a fishery could choose that would not impact DOR.
She communicated it was not her intent to require any
agencies to take on any more costs than they already had.
1:34:54 PM
Co-Chair Wilson offered DOR the opportunity to speak to the
fiscal note [OMB Component Number 2476]. She lauded the
department for its work and reported that she did not want
DOR to have to do work that was not necessary.
BRUCE TANGEMAN, COMMISSIONER, DEPARTMENT OF REVENUE,
believed he understood what the chair was saying, but he
did not agree with the approach in the fiscal note. He
pointed to the following language in the second to last
paragraph on page 2 of the note: "These costs will be
absorbed by the Tax Division." He believed the language set
bad precedent when there was a new tax form and regardless
of what the implementation timeframe may be, the bill had
an immediate effective date. He communicated it was
imperative that the department update the revenue
management system to be prepared for taxes to come online
regardless of how they would be implemented. There had been
talk about interagency receipts or receipt authority, but
he did not see that included in the fiscal note. He
suggested including something to help in that way for
preparation. He reported that DOR could not absorb upgrades
to the revenue management system.
Co-Chair Wilson thought he was misunderstanding the fiscal
note. She pointed to language specifying it was the
committee's intent that any DOR programming costs be
absorbed by the requesting entity. She stated it would not
be DOR, but the fishery requesting the update.
1:37:07 PM
Commissioner Tangeman stated that if that was the intent,
it would be better for the information to be reflected in
the fiscal note. He noted the change in revenue shown in
the fiscal note was zero.
1:37:26 PM
AT EASE
1:39:37 PM
RECONVENED
Co-Chair Wilson explained that the fiscal note would still
reflect zero, but the language would be updated to specify
that all costs would be charged to the fishery entity
requesting the update. She asked if it worked for DOR.
Commissioner Tangeman replied, "I believe so."
Co-Chair Wilson specified the intent to move the bill from
committee with a Department of Fish and Game fiscal note
[two DFG fiscal notes] and a forthcoming note from the
Department of Revenue.
Vice-Chair Johnston MOVED to REPORT CSHB 41(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 41(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one new indeterminate note from the
Department of Fish and Game; one new zero note from the
House Finance Committee for the Department of Revenue; and
one previously published zero note: FN1 (DFG).
1:40:56 PM
AT EASE
1:43:08 PM
RECONVENED