Legislature(2019 - 2020)ADAMS 519
03/21/2020 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB137 | |
| SB120 | |
| HB290 | |
| HB247 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 137 | TELECONFERENCED | |
| += | SB 120 | TELECONFERENCED | |
| += | HB 290 | TELECONFERENCED | |
| += | HB 247 | TELECONFERENCED | |
HOUSE BILL NO. 247
"An Act relating to the fish and game fund;
establishing the sport fishing enhancement surcharge;
relating to the repeal of the sport fishing facility
surcharge; providing for an effective date by amending
the effective date of sec. 21, ch. 18, SLA 2016; and
providing for an effective date."
10:37:25 AM
Co-Chair Johnston OPENED Public Testimony.
Co-Chair Johnston CLOSED Public Testimony.
Co-Chair Johnston asked for a brief reintroduction to the
bill.
TOM TAUBE, DEPUTY DIRECTOR, DIVISION OF SPORT FISHERIES,
DEPARTMENT OF FISH AND GAME (via teleconference), relayed
that the bill would allow the Department of Fish and Game
(DFG) to continue to collect a reduced sport fishing
license surcharge beyond the date it was set to expire. The
sport fishing surcharge was collected in order to pay off
the bonds issued to construct the Ruth Burnett Sport Fish
Hatchery in Fairbanks and the William Jack Hernandez Sport
Fish Hatchery in Anchorage. The surcharge also funded
Chinook and Coho salmon production in Southeast Alaska,
which would be lost when the surcharge sunset. The statute
authorizing the bonds and surcharge would sunset on
January 1 of the calendar year following the repayment of
the bond obligations (at the end of the current year).
Mr. Taube elaborated that the bill would retain the statute
authorizing DFG to collect the surcharge, but at a reduced
rate. The revenue from the surcharge would be used for
ongoing maintenance and repairs at state sport fish
hatchery facilities as well as continued enhancement of
sport fisheries in Southeast.
10:39:27 AM
Representative Wool asked if there had been discussion
about not reducing the surcharge. He understood the bond
had been paid off. He noted testimony from the previous
hearing on the bill that a reduced number of nonresident
licenses was projected, especially in the current year. He
cited Mr. Taube's testimony that the money would be used
for other maintenance projects and not for the initial
hatcheries that were built. He asked if there had been
discussion about leaving the fee at the current rate.
Mr. Taube responded that at the time the surcharge had been
implemented, DFG had made commitments to discontinue it
after the bonds were paid off. He relayed that when the
bill had been conceived, DFG had realized there were
components of the Fairbanks and Anchorage hatcheries that
were not completed at the time of construction due to
rising construction costs in the mid-2000s. He referenced a
backup well at the Fairbanks hatchery and some effluent
filtering at the Anchorage hatchery as examples. Due to the
high cost of the investment of the hatcheries, the
department had decided to go with a reduced amount to try
to partially remain with the commitment made when the bonds
were first created.
Co-Chair Johnston remarked that in the past the department
had been asked if any of the funds had been used for
operations.
Mr. Taube replied that the entire surcharge had been
directed to paying off the bonds themselves. The component
of the bill would be used for covering maintenance staff,
replacing hatchery vehicles, and for components of the
hatcheries that had not been put in place when the
hatcheries were constructed. He reported that daily
operations were currently being covered by [federal] Dingle
Johnson funds.
10:42:25 AM
Representative Carpenter asked if there had been any
discussion about revenue alternatives in light of the fact
that the fee was scheduled to sunset and the bill would
extend the fee and use the funds for a different purpose
than originally intended. He asked if there were
alternatives about how to continue with maintenance and
repairs at the hatcheries.
Mr. Taube replied that DFG would be continuing to pay for
the operations as it did via Dingle Johnson funds. He
elaborated that for larger components, DFG would likely
come to the legislature for capital improvement project
funds to make necessary upgrades to allow the hatchery to
continue functioning.
Representative Carpenter opined that the conversations
should continue to take place in an operational sense. He
stated that the people had paid a tax via a license fee. He
stated that the purpose for the fee was gone and the
people's money should be returned to them. He believed that
if the legislature needed to fund maintenance, the
conversation should take place.
10:44:22 AM
DAVID RUTZ, DIRECTOR, DIVISION OF SPORT FISHERIES,
DEPARTMENT OF FISH AND GAME (via teleconference), provided
a brief narrative about items that had been left out of the
bill and items included in members' bill packets. He
stressed that the hatcheries were stocking 270 locations
throughout Alaska and they supported hundreds of thousands
of angler-days, a sport fishing effort that generated over
$5,000 to the Alaskan economy. He elaborated that most of
the stocking areas were baren lakes that were once void of
fish population - there had been no fishing opportunities
in those areas previously. The vast majority of the angling
efforts on stocks were Alaskan residents and most of the
stocking locations were within close proximity of major
population centers where anglers could access excellent
fishing for minimal out of pocket cost. He noted it was a
great benefit. The stocking efforts also reduced effects on
wild fish populations, many of which were experiencing
times of low production. He underscored it was a great
driver for reducing the division's dependence on General
Fund monies and would help the department with anticipated
shortfalls caused by reduced non-resident license fees
resulting from COVID-19. He reported that the division was
fully supportive of the legislation.
10:46:02 AM
Co-Chair Foster MOVED to REPORT CSHB 247 (FSH) out of
committee with individual recommendations and the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CSHB 247(FSH) was REPORTED out of committee with seven "do
pass" recommendations and three "no recommendation"
recommendations and with one new fiscal impact note from
the Department of Fish and Game.
10:46:42 AM
Representative Tilton MOVED to bring back HB 259 [2020
legislation proposed by the governor to pay a 2019
supplemental Permanent Fund Dividend] for additional
discussion. She relayed that the bill would pay the past
Permanent Fund Dividend (PFD) back to the people.
10:47:07 AM
AT EASE
10:48:00 AM
RECONVENED
Co-Chair Johnston OBJECTED.
Representative Tilton believed it would be prudent to bring
HB 259 back before the committee because the legislature
was looking at a long-term economic stabilization plan. She
highlighted that the committee heard from businesses the
previous day that talked about the need for an influx of
cash into communities. She elaborated that committee
members had also heard from individuals. She shared that
she had received numerous emails with concerns about how
they would deal with daily living expenses. Additionally,
the governor had come forward with an economic
stabilization plan that included HB 259. She stated it was
dependent on the legislature to make decisions on the
issues. She thought the bill could be used as a vehicle to
consider and discuss the stabilization of the economy.
10:49:16 AM
Representative Sullivan-Leonard concurred with
Representative Tilton. She stated that the committee was
finally not hearing something related to health and social
services and was having a discussion about fiscal policy
and the budget. She elaborated that legislators had heard
loud and clear from across the state that many residents
were looking for back PFD funds for support. She recognized
there had been discussion with regard to federal funds
coming through, but she believed the quickest route to get
funds to the public was through the PFD. She supported
Representative Tilton's motion.
Co-Chair Johnston MAINTAINED her OBJECTION.
10:50:04 AM
AT EASE
10:50:24 AM
RECONVENED
Co-Chair Johnston discussed her objection. She stated that
while she appreciated the comments by Representative Tilton
and Representative Sullivan-Leonard, she objected because
she believed the legislature would be looking at a
comprehensive relief bill that was currently being worked
on. She stated that the subject in HB 259 could be part of
that legislation, but she did not yet know. She did not
believe a supplemental PFD was the only part of relief. She
had concerns about what kind of relief the state would
provide because it was not an issue of a month's time. She
stated it could be an issue of 18 months to two years. She
wanted to make certain the state had the funds and the
tools to accommodate it. She emphasized the importance of
cash for the state's daily needs. She elaborated that most
of the state's retail and service organizations were
currently closed. She was concerned about their economic
stability going forward and she wanted to ensure that any
funding provided by the state went to Alaskan businesses,
and residents in the most need.
Representative Josephson associated himself with Co-Chair
Johnston's remarks. He understood the importance of cash;
however, the numbers were still the numbers. He appreciated
Co-Chair Johnston's thoughtful comments.
10:52:19 AM
Representative Tilton appreciated Co-Chair Johnston's
comments as well and agreed on the importance of being
thoughtful in developing a comprehensive package. She
highlighted that the legislature had a stabilization plan
for consideration, and she had not seen something come from
the legislature itself. She remarked that bringing HB 259
back was not necessarily about the dividend itself, but it
could be used as a vehicle to have the discussion. She
highlighted that the committee had heard testimony from the
business community the previous day and had received
testimony from the public indicating a strong need for
cash. She reasoned that businesses would not remain stable
or open even with innovative ways to alter their business
style. She pointed out that if people did not have cash in
their pockets, businesses would not be stabilized. Her
overall concern was for the state's residents. She
underscored the need to look at how the state would get
money out to the economy during an unprecedented time.
Co-Chair Johnston thanked Representative Tilton for her
remarks. She stated that everyone on the committee was very
concerned about everyone in Alaska. She MAINTAINED her
OBJECTION.
A roll call vote was taken on the motion to bring HB 259
before the committee.
IN FAVOR: Sullivan-Leonard, Tilton, Carpenter,
OPPOSED: Wool, Josephson, Knopp, LeBon, Ortiz, Johnston,
Foster
The MOTION FAILED (3/7).
Co-Chair Johnston indicated the meeting would be Recessed
to a Call of the Chair. [See separate minutes dated 3/23/20
11:33 A.M.]
^RECESSED
10:55:03 AM
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 120 ver. K Amendment 1 3.19.20.pdf |
HFIN 3/21/2020 9:00:00 AM |
SB 120 |
| HB 120 Testimony Letters 032120.pdf |
HFIN 3/21/2020 9:00:00 AM |
HB 120 |