01/31/2022 01:00 PM Senate FINANCE

CS FOR HOUSE BILL NO. 41(FIN)                                                                                                 
                                                                                                                                
     "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                                                                    
     shellfish enhancement project  permits; relating to the                                                                    
     marketing  of  aquatic  farm  products  by  the  Alaska                                                                    
     Seafood  Marketing  Institute;  and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:18:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN ORTIZ,  SPONSOR, reintroduced  the bill.                                                                    
He stated  that the legislation was  a shellfish enhancement                                                                    
bill.  He remarked  that mariculture  was an  opportunity to                                                                    
expand  Alaskas  fishing  industry economy.  He stated  that                                                                    
certain things  must be  put in place  in order  to expedite                                                                    
the  mariculture  industry.  He   explained  that  the  bill                                                                    
allowed qualified  nonprofits to pursue  enhancements and/or                                                                    
restoration projects  involving shellfish  species including                                                                    
red and  blue king  crab; sea  cucumber; abalone;  and razor                                                                    
clams.  He  stated  that  the   bill  created  a  regulatory                                                                    
framework in  which the  Department of  Fish and  Game (DFG)                                                                    
could manage shellfish enhancement projects.                                                                                    
                                                                                                                                
1:20:51 PM                                                                                                                    
                                                                                                                                
Senator Olson  wondered whether there was  opposition to the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative   Ortiz   replied   that  there   were   some                                                                    
longstanding critics  over the years, and  stated that there                                                                    
were some  recent emails  from some folks  in the  state. He                                                                    
felt that the concerns had  been previously addressed in the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Senator  Olson  wondered   whether  there  were  subsistence                                                                    
groups opposed to the bill.                                                                                                     
                                                                                                                                
Representative Ortiz  replied that he  was not aware  of any                                                                    
subsistence groups opposed to the bill.                                                                                         
                                                                                                                                
Co-Chair Stedman  asked that DFG  present their  position on                                                                    
the bill.                                                                                                                       
                                                                                                                                
1:21:59 PM                                                                                                                    
                                                                                                                                
SAM RABUNG, DIRECTOR OF  COMMERCIAL FISHERIES, DEPARTMENT OF                                                                    
FISH AND  GAME, JUNEAU  (via teleconference), had  not heard                                                                    
from  the  governor  about  the position  on  the  bill.  He                                                                    
remarked  that the  governors   mariculture  task force  had                                                                    
identified the issue as one of its top five priorities.                                                                         
                                                                                                                                
Senator Wielechowski wondered whether  any DFG scientists or                                                                    
biologists were opposed to the legislation.                                                                                     
                                                                                                                                
Mr.  Rabung  replied  that  scientists  and  biologists  had                                                                    
opinions, and there were some  concerns about wild organisms                                                                    
to ensure that there were  safe measures. He felt that there                                                                    
were safeguards to address those concerns.                                                                                      
                                                                                                                                
Senator Wielechowski  asked for documentation in  writing of                                                                    
opposition from the scientists and biologists.                                                                                  
                                                                                                                                
Mr. Rabung  replied that there  was nothing in  writing, but                                                                    
there   were  continual   and  constant   conversations.  He                                                                    
stressed that  there were efforts  to take into  account all                                                                    
concerns, which  were built into the  permitting process. He                                                                    
stated that,  in the  long run,  more permits  were declined                                                                    
than were approved.                                                                                                             
                                                                                                                                
1:25:48 PM                                                                                                                    
                                                                                                                                
Senator Wielechowski  wondered whether the  department could                                                                    
make the scientists available to the legislature.                                                                               
                                                                                                                                
Mr.  Rabung  stated that  he  did  not have  concerns  about                                                                    
commercial fishing staff available for questions.                                                                               
                                                                                                                                
Senator Olson  wondered whether  the discussion  was ongoing                                                                    
discussions or outright opposition.                                                                                             
                                                                                                                                
Mr. Rabung  replied that it  was an ongoing  discussion, and                                                                    
the discussions would continue about permitting.                                                                                
                                                                                                                                
Senator Wielechowski queried  the definition of  traditional                                                                    
fisheries.                                                                                                                      
                                                                                                                                
Mr.  Rabung  replied  that  the  enhancement  projects  were                                                                    
intended to benefit existing  common property fisheries. The                                                                    
intention was for  them to be harvested  in already existing                                                                    
fisheries.                                                                                                                      
                                                                                                                                
Senator  Wielechowski  queried  the definition  of   already                                                                    
existing fisheries.                                                                                                             
                                                                                                                                
Mr. Rabung replied that enhancement  projects would have the                                                                    
resultant organisms from an existing fishery.                                                                                   
                                                                                                                                
1:29:40 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:30:23 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:30:33 PM                                                                                                                    
                                                                                                                                
Senator Wielechowski wondered whether  there was funding for                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair Bishop replied that he  would cover the fiscal note                                                                    
later in the meeting, but  stated that each fiscal note were                                                                    
zero.                                                                                                                           
                                                                                                                                
Senator   Wielechowski  wondered   how  the   administration                                                                    
intended to fund the bill with zero fiscal notes.                                                                               
                                                                                                                                
Co-Chair  Bishop stated  that  the back  up  related to  the                                                                    
fiscal notes would answer the question.                                                                                         
                                                                                                                                
1:31:19 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:31:26 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:31:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Bishop highlighted the fiscal notes.                                                                                   
                                                                                                                                
Senator  Wilson  remarked  that   the  difference  with  the                                                                    
committee  substitutes was  the  removal of  purview of  the                                                                    
Alaska Seafood Marketing Institute (ASMI).                                                                                      
                                                                                                                                
Co-Chair Bishop  wondered whether  Senator Wilson  wanted to                                                                    
address the remaining fiscal notes.                                                                                             
                                                                                                                                
Senator Wilson  replied that he  would not, but  merely want                                                                    
to point to  the change that was not included  in the backup                                                                    
for the fiscal notes.                                                                                                           
                                                                                                                                
1:33:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:33:35 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:34:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Bishop continued to address the fiscal notes.                                                                          
                                                                                                                                
Senator  Wilson  MOVED  to  REPORT  SCS  CSHB  41(FIN)  from                                                                    
committee  with  individual   recommendations  and  attached                                                                    
fiscal notes. There being NO OBJECTION, it was so ordered.                                                                      
                                                                                                                                
SCS CSHB 41(FIN) was REPORTED  out of committee with two "do                                                                    
pass"   recommendations,  and   three  "no   recommendation"                                                                    
recommendations and  with a  new zero  fiscal note  from the                                                                    
Department of Commerce,  Community and Economic Development,                                                                    
new zero fiscal  note from Department of Fish  and Game, new                                                                    
indeterminate fiscal note from  Department of Fish and Game,                                                                    
new  indeterminate  fiscal  note  from  the  Office  of  the                                                                    
Governor,  and  new  indeterminate   fiscal  note  from  the                                                                    
Department of Revenue.