Legislature(2025 - 2026)BUTROVICH 205

04/09/2025 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 130 FISHERIES PROD DEVELOPMENT TAX CREDIT TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SB 135 REFUND OF FISH BUSINESS TAX TO MUNIS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= SB 67 PROCURE PREF: AGRIC. & FISH PRODUCTS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
*+ SB 131 DUTIES OF ASMI BOARD; MEANING OF SEAFOOD TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE RESOURCES STANDING COMMITTEE                                                                             
                         April 9, 2025                                                                                          
                           3:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Cathy Giessel, Chair                                                                                                    
Senator Bill Wielechowski, Vice Chair                                                                                           
Senator Forrest Dunbar                                                                                                          
Senator Scott Kawasaki                                                                                                          
Senator Shelley Hughes                                                                                                          
Senator Robert Myers                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Matt Claman                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 130                                                                                                             
"An  Act  relating  to  the  fisheries  product  development  tax                                                               
credit;  providing   for  an  effective  date   by  amending  the                                                               
effective date of sec. 2, ch.  31, SLA 2022; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 135                                                                                                             
"An  Act  relating  to  the  sharing  of  tax  revenue  from  the                                                               
fisheries  business tax  and fishery  resource  landing tax  with                                                               
municipalities; relating  to municipal reports on  the shared tax                                                               
revenue; and providing for an effective date."                                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 131                                                                                                             
"An Act  relating to the  duties of the Alaska  Seafood Marketing                                                               
Institute; and relating to the seafood marketing assessment."                                                                   
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 67                                                                                                              
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 130                                                                                                                  
SHORT TITLE: FISHERIES PROD DEVELOPMENT TAX CREDIT                                                                              
SPONSOR(s): RULES BY REQUEST OF TASK FORCE EVAL ALASKA SEAFOOD                                                                  
INDUSTRY                                                                                                                        
                                                                                                                                
03/12/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/12/25       (S)       RES, FIN                                                                                               
03/31/25       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/31/25       (S)       Heard & Held                                                                                           
03/31/25       (S)       MINUTE(RES)                                                                                            
04/09/25       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 135                                                                                                                  
SHORT TITLE: REFUND OF FISH BUSINESS TAX TO MUNIS                                                                               
SPONSOR(s): RULES BY REQUEST OF TASK FORCE EVAL ALASKA SEAFOOD                                                                  
INDUSTRY                                                                                                                        
                                                                                                                                
03/18/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/25       (S)       RES, FIN                                                                                               
03/31/25       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
03/31/25       (S)       Heard & Held                                                                                           
03/31/25       (S)       MINUTE(RES)                                                                                            
04/09/25       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
BILL: SB 131                                                                                                                  
SHORT TITLE: DUTIES OF ASMI BOARD; MEANING OF SEAFOOD                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/14/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/14/25       (S)       RES, FIN                                                                                               
04/09/25       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM LAMPKIN, Staff                                                                                                              
Senator Gary Stevens                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 130 on behalf of the Senate                                                                 
Rules Standing Committee by request of the Joint Legislative                                                                    
Task Force Evaluating Alaska's Seafood Industry.                                                                                
                                                                                                                                
TOMI MARSH, E.C. Phillips and Son                                                                                               
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 130.                                                                           
                                                                                                                                
SHANNON CARROLL, Director                                                                                                       
Alaska Public Affairs and Fisheries Development                                                                                 
Trident Seafoods                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 130.                                                                           
                                                                                                                                
SINCLAIR WILT, Vice President                                                                                                   
Westward Seafoods                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 130.                                                                           
                                                                                                                                
TOM ENLOW, President and CEO                                                                                                    
UniSea, Incorporated                                                                                                            
Unalaska, Alaska                                                                                                                
POSITION STATEMENT: Testified in support of SB 130.                                                                           
                                                                                                                                
MEGAN O'NEIL, Director of Government Affairs                                                                                    
Canfisco Group                                                                                                                  
Petersburg, Alaska                                                                                                              
POSITION STATEMENT: Testified in support of SB 130.                                                                           
                                                                                                                                
BRANDON SPANOS, Deputy Director                                                                                                 
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on SB 130.                                                                             
                                                                                                                                
CHRIS BECKER, Lead Auditor                                                                                                      
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on SB 130.                                                                             
                                                                                                                                
[JULIE DECKER, President                                                                                                        
Pacific Seafood Processors Association                                                                                          
Wrangell, Alaska                                                                                                                
POSITION STATEMENT: Answered questions on SB 130.]                                                                            
                                                                                                                                
TIM LAMPKIN, Staff                                                                                                              
Senator Gary Stevens                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 135 on behalf of the Senate                                                                 
Rules Standing Committee by request of the Joint Legislative                                                                    
Task Force Evaluating Alaska's Seafood Industry.                                                                                
                                                                                                                                
SANDRA MOLLER, Director                                                                                                         
Division of Community and Regional Affairs                                                                                      
Department of Commerce, Community and                                                                                           
Economic Development (DCCED)                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on SB 135.                                                                             
                                                                                                                                
CHRIS BECKER, Lead Auditor                                                                                                      
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions on SB 135.                                                                             
                                                                                                                                
ANNA LATHAM, Deputy Commissioner                                                                                                
Department of Commerce, Community and                                                                                           
Economic Development (DCCED)                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Introduced  SB 131  on behalf  of the  Rules                                                             
committee at the request of the governor.                                                                                       
                                                                                                                                
JEREMY WOODROW, Executive Director                                                                                              
Alaska Seafood Marketing Institute                                                                                              
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT: Introduced  SB 131  on behalf  of the  Rules                                                             
committee at the request of the governor.                                                                                       
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:22 PM                                                                                                                    
CHAIR  GIESSEL called  the  Senate  Resources Standing  Committee                                                               
meeting to order  at 3:30 p.m. Present at the  call to order were                                                               
Senators   Myers,  Kawasaki,   Wielechowski,  Hughes   and  Chair                                                               
Giessel. Senator Dunbar arrived thereafter.                                                                                     
                                                                                                                                
          SB 130-FISHERIES PROD DEVELOPMENT TAX CREDIT                                                                      
                                                                                                                                
3:31:17 PM                                                                                                                    
CHAIR GIESSEL announced the consideration  of SENATE BILL NO. 130                                                               
"An  Act  relating  to  the  fisheries  product  development  tax                                                               
credit;  providing   for  an  effective  date   by  amending  the                                                               
effective date of sec. 2, ch.  31, SLA 2022; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
3:31:35 PM                                                                                                                    
TIM   LAMPKIN,  Staff,   Senator  Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau,  Alaska, said that  SB 130 would  extend tax                                                               
credit considerations to  all fish species. It  would also update                                                               
and   clarify  the   tax  credit   qualifiers,  components,   and                                                               
innovation investments  that would allow the  processing fleet to                                                               
qualify   and   make   investments  eligible   for   tax   credit                                                               
consideration.                                                                                                                  
                                                                                                                                
3:32:43 PM                                                                                                                    
SENATOR  HUGHES  asked  for  an   example  of  the  technological                                                               
innovations addressed by SB 130.                                                                                                
                                                                                                                                
3:32:55 PM                                                                                                                    
MR.  LAMPKIN  offered  icing   technologies  and  automations  as                                                               
examples. He  added that the processors  could provide additional                                                               
detail.                                                                                                                         
                                                                                                                                
3:33:23 PM                                                                                                                    
SENATOR KAWASAKI asked whether the  qualified investments need to                                                               
be in Alaska (and Alaska-based).                                                                                                
                                                                                                                                
3:33:39 PM                                                                                                                    
MR.  LAMPKIN  replied  that the  tax  credits  have  historically                                                               
applied primarily to shore-based processing.                                                                                    
                                                                                                                                
3:33:57 PM                                                                                                                    
SENATOR KAWASAKI  asked for  clarification regarding  whether the                                                               
equipment  and  technologies  need  to be  in  Alaska.  He  asked                                                               
whether the processor could be located out-of-state.                                                                            
                                                                                                                                
3:34:21 PM                                                                                                                    
MR. LAMPKIN clarified that the  processing must be done in-state,                                                               
for fish caught or landed in Alaskan waters.                                                                                    
                                                                                                                                
3:34:41 PM                                                                                                                    
CHAIR GIESSEL opened public testimony on SB 120.                                                                                
                                                                                                                                
3:34:51 PM                                                                                                                    
SENATOR DUNBAR joined the meeting.                                                                                              
                                                                                                                                
3:35:19 PM                                                                                                                    
TOMI MARSH,  E.C. Phillips and Son,  Ketchikan, Alaska, testified                                                               
in support of  SB 130. She gave  a brief overview of  her work in                                                               
the fishing  industry and  of E.C. Phillips  and Son.  She stated                                                               
that  innovation and  quality have  helped  the fishing  industry                                                               
persevere in the face of  adverse market and economic conditions.                                                               
She  said that  equipment that  elevates quality  encourages full                                                               
utilization  of resources.  She briefly  discussed how  equipment                                                               
can encourage new,  value-added products, which in  turn help the                                                               
industry  remain relevant  in domestic  and  global markets.  She                                                               
said that  high quality and  value-adding help E.C.  Phillips and                                                               
Son diversify and access domestic  and international markets. She                                                               
said SB 130 is crucial  for fostering sustainability, innovation,                                                               
and  economic growth  in Alaska's  seafood sector.  Extending the                                                               
tax  credit  to all  commercially  harvested  fish and  shellfish                                                               
would allow seafood processers to continue investing in value-                                                                  
added production, new technologies, and product diversification.                                                                
                                                                                                                                
3:38:14 PM                                                                                                                    
SHANNON CARROLL,  Director, Alaska  Public Affairs  and Fisheries                                                               
Development,  Trident Seafoods,  Anchorage, Alaska,  testified in                                                               
support of  SB 130. He provided  a brief history and  overview of                                                               
Trident  Seafoods.  He  stated  that  SB  130  would  incentivize                                                               
investments in new equipment, which  would bring higher value and                                                               
quality  to harvesters,  customers, and  communities. He  pointed                                                               
towards   rising  costs,   unfavorable   currency  markets,   and                                                               
aggressive harvest  and pricing  out of  Russia as  challenges to                                                               
Alaska's  seafood performance  in  the global  market. He  stated                                                               
that  cutting  costs  and  improving the  quality  and  value  of                                                               
Alaskan seafood products is imperative  to the industry's success                                                               
and survival. This requires innovation  and investment. He shared                                                               
that Trident Seafoods  previously used the tax  credit to improve                                                               
utilization, elevating  "waste" into products for  pet and health                                                               
markets.                                                                                                                        
                                                                                                                                
3:40:13 PM                                                                                                                    
SINCLAIR  WILT,  Vice  President, Westward  Seafoods,  Anchorage,                                                               
Alaska,  testified in  support of  SB  130. He  provided a  brief                                                               
overview  of Westward  Seafoods.  He briefly  discussed how  poor                                                               
market conditions  are impacting the seafood  industry in Alaska.                                                               
He stated  that SB 130  would provide incentive to  create value-                                                               
added  products,  which  would  have a  positive  impact  on  the                                                               
industry and local communities.                                                                                                 
                                                                                                                                
3:41:52 PM                                                                                                                    
TOM  ENLOW, President  and CEO,  UniSea, Incorporated,  Unalaska,                                                               
Alaska,  testified in  support of  SB  130. He  provided a  brief                                                               
overview  of UniSea.  He  stated  that SB  130  would provide  an                                                               
incentive to  invest in equipment to  create value-added products                                                               
in-state. He  explained that processing for  value-added products                                                               
currently   happens  out-of-state.   He  said   that  value-added                                                               
products would add  production days to shoulder  seasons and keep                                                               
Alaskans employed in local communities.  He briefly discussed how                                                               
this would benefit the industry  and the state. He emphasized the                                                               
importance of diversification to  remain competitive. He said the                                                               
high-cost equipment  required to produce value-added  products is                                                               
difficult to  justify; SB 130  would incentivize  those equipment                                                               
purchases.                                                                                                                      
                                                                                                                                
3:44:19 PM                                                                                                                    
MEGAN  O'NEIL, Director  of Government  Affairs, Canfisco  Group,                                                               
Petersburg, Alaska,  testified in support  of SB 130. She  gave a                                                               
brief  overview  of Canfisco  Group.  She  briefly discussed  the                                                               
impacts  and benefits  of  SB  130, which  would  expand the  tax                                                               
credit and incentivize new technologies  and processes that would                                                               
create  value-added products  while  maintaining  the 50  percent                                                               
cap.  She  stated  that this  would  benefit  fisherman,  partner                                                               
communities, and the  State of Alaska. She  briefly discussed raw                                                               
fish taxes  and explained  that SB 130  would enable  Canfisco to                                                               
modernize  its processing  plants in  Bristol Bay.  She explained                                                               
that the  new equipment would  reduce physical labor  and improve                                                               
conditions.                                                                                                                     
                                                                                                                                
3:46:16 PM                                                                                                                    
CHAIR GIESSEL closed public testimony on SB 130.                                                                                
                                                                                                                                
3:46:34 PM                                                                                                                    
SENATOR  KAWASAKI asked  whether  the tax  credit  is limited  to                                                               
Alaska-based  companies or  if  an  out-of-state processor  would                                                               
qualify.                                                                                                                        
                                                                                                                                
3:47:23 PM                                                                                                                    
BRANDON  SPANOS, Deputy  Director,  Tax  Division, Department  of                                                               
Revenue (DOR),  Anchorage, Alaska, said  that to qualify  for the                                                               
tax credit, both  the taxpayer and the  processing equipment must                                                               
be based in Alaska.                                                                                                             
                                                                                                                                
3:48:01 PM                                                                                                                    
SENATOR  DUNBAR   asked  how  the  tax   law  addresses  floating                                                               
processors.                                                                                                                     
                                                                                                                                
3:48:38 PM                                                                                                                    
MR. SPANOS deferred the question.                                                                                               
                                                                                                                                
3:48:54 PM                                                                                                                    
CHRIS BECKER,  Lead Auditor, Tax Division,  Department of Revenue                                                               
(DOR), Anchorage,  Alaska, replied  that floating  processors can                                                               
be eligible for the tax  credit. He explained that eligibility is                                                               
based on the amount of processing done in state waters.                                                                         
                                                                                                                                
3:49:08 PM                                                                                                                    
SENATOR DUNBAR asked for further  clarification. He asked whether                                                               
floating processors must  be docked or home-ported  in Alaska. He                                                               
shared  his  understanding  that  it  would  be  possible  for  a                                                               
processor  to   complete  all  work  offshore   without  directly                                                               
interacting  with local  communities. He  offered a  hypothetical                                                               
example   to   illustrate  his   question   and   asked  if   his                                                               
understanding is correct.                                                                                                       
                                                                                                                                
3:49:41 PM                                                                                                                    
MR. BECKER replied that this  is correct; however, the tax credit                                                               
from that activity would be shared with the local community.                                                                    
                                                                                                                                
3:49:54 PM                                                                                                                    
SENATOR  KAWASAKI asked  about at-sea  processors. He  shared his                                                               
understanding that  "qualified investment" means  investment cost                                                               
to purchase  and convert depreciable tangible  personal property.                                                               
He asked how DOR would  determine the portion contributing to the                                                               
qualified investment.                                                                                                           
                                                                                                                                
3:50:50 PM                                                                                                                    
MR. BECKER  answered that  the credit  in SB  130 applies  to the                                                               
fisheries business  tax. He explained that  processors liable for                                                               
the  fisheries resource  landing  tax are  not  eligible for  the                                                               
credit unless the processing is done in state waters.                                                                           
                                                                                                                                
3:51:13 PM                                                                                                                    
CHAIR GIESSEL invited Julie Decker,  president of Pacific Seafood                                                               
Processors Association, to comment.                                                                                             
                                                                                                                                
3:51:24 PM                                                                                                                    
[JULIE    DECKER,   President,    Pacific   Seafood    Processors                                                               
Association, Wrangell,  Alaska,] said  that her  understanding of                                                               
the  questions  corresponds  with   that  of  the  Department  of                                                               
Revenue.                                                                                                                        
                                                                                                                                
3:51:53 PM                                                                                                                    
CHAIR GIESSEL held SB 130 in committee.                                                                                         
                                                                                                                                
          SB 135-REFUND OF FISH BUSINESS TAX TO MUNIS                                                                       
                                                                                                                                
3:52:06 PM                                                                                                                    
CHAIR GIESSEL announced the consideration  of SENATE BILL NO. 135                                                               
"An  Act  relating  to  the  sharing  of  tax  revenue  from  the                                                               
fisheries  business tax  and fishery  resource  landing tax  with                                                               
municipalities; relating  to municipal reports on  the shared tax                                                               
revenue; and providing for an effective date."                                                                                  
                                                                                                                                
3:52:25 PM                                                                                                                    
TIM   LAMPKIN,  Staff,   Senator  Gary   Stevens,  Alaska   State                                                               
Legislature, Juneau, Alaska, explained  that SB 135 would revisit                                                               
a  2012 policy  related to  the  fisheries business  tax and  the                                                               
landing  tax. SB  135 would  not  change the  taxes; instead,  it                                                               
would adjust  how the  taxes are allocated  between the  State of                                                               
Alaska and municipalities.  The intent of SB 135  is to encourage                                                               
municipalities  to improve  their fisheries  infrastructure (e.g.                                                               
docks and  harbors). He  reiterated that SB  135 would  shift the                                                               
tax revenue allocation and added that a sunset is included.                                                                     
                                                                                                                                
3:53:44 PM                                                                                                                    
SENATOR  HUGHES asked  whether SB  135 includes  requirements for                                                               
how municipalities  can use  the additional  funds. Specifically,                                                               
she  wondered if  municipalities  must use  the  funds on  harbor                                                               
related purchases.                                                                                                              
                                                                                                                                
3:54:15 PM                                                                                                                    
MR.  LAMPKIN  said  that  outside   of  intent  language,  it  is                                                               
difficult to create this type of  qualifier. He noted that SB 135                                                               
also includes  a reporting requirement. He  expressed uncertainty                                                               
about  whether the  legislature could  require municipalities  to                                                               
spend the money in a particular way.                                                                                            
                                                                                                                                
3:54:49 PM                                                                                                                    
SENATOR HUGHES  pointed out that  the cruise ship tax  includes a                                                               
requirement that those  funds be used to enhance  the areas where                                                               
the  cruise  passengers  disembark.  She wondered  if  there  was                                                               
anything  preventing  a  similar   requirement  in  SB  135.  She                                                               
indicated that  the intent language  is not sufficient  to ensure                                                               
the money would  benefit the fishing industry. She  said that, in                                                               
a time when the State of  Alaska's budget is limited, it would be                                                               
reassuring to  know the money would  go to the industry  (and not                                                               
be spent in  other ways). She asked if there  is any legal reason                                                               
preventing this.                                                                                                                
                                                                                                                                
3:55:29 PM                                                                                                                    
MR. LAMPKIN noted  that he does not have the  expertise to answer                                                               
this  question. He  hypothesized  that collecting  the tax  would                                                               
create a  feedback loop of  a kind, and communities  would likely                                                               
reinvest  that money  into the  infrastructure  that would  allow                                                               
them to continue to harvest the resource and collect the tax.                                                                   
                                                                                                                                
3:56:02 PM                                                                                                                    
SENATOR HUGHES asked  whether the sponsor of SB  135 would object                                                               
to adding a spending requirement.                                                                                               
                                                                                                                                
3:56:15 PM                                                                                                                    
MR.  LAMPKIN expressed  confidence  that the  sponsor  of SB  135                                                               
would be happy to improve the legislation.                                                                                      
                                                                                                                                
3:56:34 PM                                                                                                                    
SENATOR HUGHES said she would  support the addition of a spending                                                               
requirement.                                                                                                                    
                                                                                                                                
3:56:54 PM                                                                                                                    
SENATOR DUNBAR  recalled previous  invited testimony  from Alaska                                                               
Marine Lines (AML) regarding inland  communities that receive the                                                               
tax but do not have harbors.  He said that he supports giving the                                                               
communities  flexibility,  as  what  improves the  lives  of  the                                                               
fishing community  is not always  straightforward. He  shared his                                                               
understanding that AML was seeking  this flexibility. He asked if                                                               
the sponsor would be open  to amendments - particularly those AML                                                               
proposed  at  the previous  hearing  of  SB  135. He  shared  his                                                               
understanding  that   one  amendment  would  remove   the  intent                                                               
language while  the other  addressed the  reporting requirements.                                                               
He  briefly discussed  how the  reporting  requirements could  be                                                               
made  more reasonable.  He indicated  that it  is responsible  to                                                               
know how the  money is spent; however, if a  community receives a                                                               
de minimis  benefit, it  should not be  subject to  the reporting                                                               
requirement.                                                                                                                    
                                                                                                                                
3:58:36 PM                                                                                                                    
MR.  LAMPKIN shared  that he  does not  generally support  intent                                                               
language, as  there is no  force of law.  He noted that,  in this                                                               
case,  the intent  language simply  makes clear  that SB  135 was                                                               
intended to incentivize  the way the monies are  spent. He agreed                                                               
that  the   fisheries  taxes  do   not  solely   benefit  coastal                                                               
communities and inland communities  should retain the flexibility                                                               
to  invest   in  things  other   than  direct   seafood  industry                                                               
infrastructure.                                                                                                                 
                                                                                                                                
3:59:22 PM                                                                                                                    
SENATOR  DUNBAR asked  if Mr.  Lampkin  has any  thoughts on  the                                                               
reporting requirement.                                                                                                          
                                                                                                                                
3:59:27 PM                                                                                                                    
MR.  LAMPKIN indicated  that changing  the reporting  requirement                                                               
would  be  reasonable. He  stated  that  the current  requirement                                                               
reflects the original  intent of SB 135 and  implied that further                                                               
discussion and change is expected.                                                                                              
                                                                                                                                
3:59:38 PM                                                                                                                    
SENATOR  DUNBAR  asked  Chair  Giessel  about  the  timeline  for                                                               
amendments to SB 135 or a possible committee substitute (CS).                                                                   
                                                                                                                                
3:59:52 PM                                                                                                                    
CHAIR  GIESSEL  replied that  the  amendment  deadline is  Friday                                                               
April 11,  2025, at 8:00  am. She stated that  there is no  CS at                                                               
this time.                                                                                                                      
                                                                                                                                
4:00:10 PM                                                                                                                    
SENATOR HUGHES  requested an example  of a  non-coastal community                                                               
receiving the tax benefit.                                                                                                      
                                                                                                                                
4:00:39 PM                                                                                                                    
MR.  LAMPKIN  recalled  from  previous  testimony  that  Houston,                                                               
Alaska  assists the  fishing industry  but  is not  based on  the                                                               
coast.   He   surmised   that  the   assistance   could   involve                                                               
transportation  from the  airport or  gear support.  He indicated                                                               
that  his  knowledge  related  to the  question  is  limited.  He                                                               
deferred the question.                                                                                                          
                                                                                                                                
4:02:08 PM                                                                                                                    
SANDRA  MOLLER,  Director,  Division of  Community  and  Regional                                                               
Affairs,   Department  of   Commerce,   Community  and   Economic                                                               
Development   (DCCED),   Anchorage,   Alaska,  said   she   would                                                               
investigate this and provide the answer to the committee.                                                                       
                                                                                                                                
4:02:59 PM                                                                                                                    
CHAIR  GIESSEL invited  representatives  from  the Department  of                                                               
Revenue to answer the question.                                                                                                 
                                                                                                                                
4:03:08 PM                                                                                                                    
CHRIS BECKER,  Lead Auditor, Tax Division,  Department of Revenue                                                               
(DOR), Anchorage,  Alaska, explained that the  fisheries business                                                               
tax  is  based  on  the  location of  the  processing  -  or  the                                                               
unprocessed  exports.  He  explained   that  if  a  resource  was                                                               
transported  to a  non-port city  for  processing, that  non-port                                                               
city would receive a portion of the tax.                                                                                        
                                                                                                                                
4:03:34 PM                                                                                                                    
CHAIR GIESSEL  asked for confirmation  of her  understanding that                                                               
if  the  product  was  transported to  an  inland  community  for                                                               
processing, that community would benefit from the tax credit.                                                                   
                                                                                                                                
4:03:51 PM                                                                                                                    
MR. BECKER confirmed that this is correct.                                                                                      
                                                                                                                                
4:04:14 PM                                                                                                                    
CHAIR GIESSEL  opened public testimony  on SB 135;  finding none,                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
4:04:39 PM                                                                                                                    
CHAIR GIESSEL held SB 135 in committee.                                                                                         
                                                                                                                                
        SB 131-DUTIES OF ASMI BOARD; MEANING OF SEAFOOD                                                                     
                                                                                                                                
4:04:46 PM                                                                                                                    
CHAIR GIESSEL announced the consideration  of SENATE BILL NO. 131                                                               
"An Act  relating to the  duties of the Alaska  Seafood Marketing                                                               
Institute; and relating to the seafood marketing assessment."                                                                   
                                                                                                                                
4:05:37 PM                                                                                                                    
ANNA  LATHAM,   Deputy  Commissioner,  Department   of  Commerce,                                                               
Community and Economic Development  (DCCED), Juneau, Alaska, said                                                               
SB 131 would allow the  Alaska Seafood Marketing Institute (ASMI)                                                               
to  market aquatic  farm products  (e.g. kelp  and oysters).  She                                                               
said  that  Alaska  has  an  ideal  environment  for  mariculture                                                               
industry growth  and highlighted the long  coastlines and history                                                               
of maritime activity in the  state. The mariculture industry also                                                               
has federal  and state support.  She stated that  Alaska produces                                                               
more than half of the seafood in the United States.                                                                             
                                                                                                                                
MS.  LATHAM  opined that  expanding  mariculture  as a  renewable                                                               
resource is a natural progression.  The State of Alaska has shown                                                               
its  commitment to  developing the  state's mariculture  industry                                                               
over the past decade, which  creates year-round jobs and supports                                                               
communities  that have  experienced a  decline in  harvest volume                                                               
and  revenue.  This  expansion   would  also  diversify  Alaska's                                                               
economy.  She stated  that  ASMI has  done well  in  its task  of                                                               
developing an international brand  for Alaska's seafood industry.                                                               
Expanding  ASMI's scope  to include  shellfish could  incentivize                                                               
growth  in  that   emergent  sector.  SB  131   aligns  with  the                                                               
administration's   food  security   initiatives,  as   successful                                                               
marketing  efforts would  allow for  the increased  production of                                                               
shellfish.  She stated  that  this would  ultimately  lead to  an                                                               
increased availability of fresh food in local markets.                                                                          
                                                                                                                                
4:07:20 PM                                                                                                                    
JEREMY  WOODROW,  Executive  Director, Alaska  Seafood  Marketing                                                               
Institute, Juneau, Alaska, paraphrased  the sectional analysis of                                                               
SB 131:                                                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                              
                       SECTIONAL ANALYSIS                                                                                     
        SB 131: Duties of ASMI Board; Meaning of Seafood                                                                      
                           Version A                                                                                            
                                                                                                                                
     Section  1: Technical  change amending  AS 16.51.100(3)                                                                  
     to include  "or harvest" related to  the development of                                                                    
     quality specifications  and handling of  Alaska seafood                                                                    
     "from the moment  of capture" under duties  of the ASMI                                                                    
     board.                                                                                                                     
                                                                                                                                
     Section 2: Amends AS 16.51.180(7) to include "aquatic                                                                    
        farm products" in the definition of "seafood" in                                                                        
     ASMI's chapter of statute.                                                                                                 
                                                                                                                                
MR. WOODROW said  that "aquatic farm products" are  defined in AS                                                               
16.41.099. He explained that current  statute prohibits ASMI from                                                               
marketing mariculture products. He said SB  131 is not tied to SB
108  (which relates  to fin  fish farming).  He emphasized  that,                                                               
should SB  108 pass,  SB 131  would not give  ASMI the  powers to                                                               
market  farmed  fin fish.  He  said  ASMI  is supportive  of  two                                                               
nascent  industries   in  Alaska:  farmed   shellfish  (primarily                                                               
oysters)  and farmed  kelp.  He  stated that  in  a recent  board                                                               
meeting ASMI unanimously  passed a motion in  support of changing                                                               
ASMI statutes  to include powers  to market  Alaska's mariculture                                                               
products.  If SB  131  passes, ASMI  would  immediately begin  to                                                               
include  those  products  in its  global  marketing  efforts.  He                                                               
briefly  described those  marketing  efforts. SB  131 would  also                                                               
allow ASMI to  pursue grant funding for  those marketing efforts,                                                               
on behalf of the mariculture industry.  He said that he is not an                                                               
expert in Alaska  mariculture. He added that  he anticipates ASMI                                                               
would adopt  a structure that  would include  Alaskan mariculture                                                               
experts  in ASMI  activities and  committees.  This would  ensure                                                               
that ASMI's actions align with  the needs of Alaska's mariculture                                                               
industry.                                                                                                                       
                                                                                                                                
4:09:56 PM                                                                                                                    
SENATOR DUNBAR  directed attention  to SB 131,  page 2,  line 11,                                                               
which  refers to  "aquatic  farm" and  commented  that this  term                                                               
brings to mind farmed fish.  He asked whether "mariculture" would                                                               
be a  more accurate  term. If  so, he  wondered if  the committee                                                               
should   amend   SB  131   and   replace   "aquatic  farm"   with                                                               
"mariculture."                                                                                                                  
                                                                                                                                
4:10:40 PM                                                                                                                    
MR.  WOODWROW shared  his understanding  that "mariculture  " and                                                               
"aquatic  farm" are  often interchangeable.  He added  that there                                                               
may be  nuances with those  definitions when used outside  of the                                                               
legislative process.                                                                                                            
                                                                                                                                
4:11:04 PM                                                                                                                    
SENATOR  DUNBAR said  he has  heard the  term "mariculture"  many                                                               
times;  however, he  has not  heard the  term "aquatic  farm." He                                                               
wondered if  someone involved  in drafting  SB 131  could address                                                               
the question.                                                                                                                   
                                                                                                                                
4:11:30 PM                                                                                                                    
MR. WOODROW clarified that the  term "aquatic farm" is defined in                                                               
AS  16.41.99. He  said  the term  has been  in  statute for  many                                                               
years. He shared his understanding  that "mariculture" is a newer                                                               
term and  surmised that changing "aquatic  farm" to "mariculture"                                                               
would require  changes to other  areas of statute. He  added that                                                               
"aquatic farm" seems to be  the preferred term in Alaska Statute.                                                               
He  said that  "aquatic farm  products" refers  to products  in a                                                               
controlled environment.                                                                                                         
                                                                                                                                
4:12:21 PM                                                                                                                    
SENATOR DUNBAR noted that oysters  are grown in a semi-controlled                                                               
way that often involves open water.  He said he does not think of                                                               
this as "farming" but acknowledged that  it is farming of a kind.                                                               
He opined  that, in  this case, "mariculture"  would be  a better                                                               
term. He expressed his support for SB 131.                                                                                      
                                                                                                                                
4:13:03 PM                                                                                                                    
SENATOR KAWASAKI  directed attention to the  following definition                                                               
of "aquatic farm" in AS 16.40.199:                                                                                              
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Sec. 16.40.199.   Definitions.                                                                                           
     In AS 16.40.100  16.40.199,                                                                                                
                                                                                                                                
        (1) "aquatic farm" means a facility that grows,                                                                         
        farms, or cultivates aquatic farm products in                                                                           
        captivity or under positive control;                                                                                    
                                                                                                                                
SENATOR KAWASAKI  noted that this  definition is also used  in SB
108 (which  relates to  fin fish  farming). He  expressed concern                                                               
about this  overlap and emphasized  that he does not  want farmed                                                               
fish to  be considered "seafood"  - even  if it is  farmed "under                                                               
positive control." He  noted that some farmed fish  are raised in                                                               
tanks  rather than  in  bodies  of water  and  are therefore  not                                                               
considered "seafood" by the State of Alaska.                                                                                    
                                                                                                                                
4:13:58 PM                                                                                                                    
MR. WOODROW  indicated his understanding and  suggested that this                                                               
definition may  need additional consideration if  the legislature                                                               
does not want seafood and farmed fish to intersect.                                                                             
                                                                                                                                
4:14:21 PM                                                                                                                    
SENATOR HUGHES  returned to an  earlier comment on  adjusting the                                                               
ASMI board  to include mariculture  expertise. She asked  if ASMI                                                               
has  the  authority to  add  board  members and/or  change  board                                                               
member  qualifications  -  or  whether   a  statutory  change  is                                                               
required.                                                                                                                       
                                                                                                                                
4:14:41 PM                                                                                                                    
MR. WOODROW replied  that ASMI does not have  authority to change                                                               
the board.  The board membership  is set in statute,  and members                                                               
are chosen by  the governor. He explained that the  ASMI board is                                                               
authorized  to  create  advisory committees.  He  explained  that                                                               
advisory committees  increase inclusivity,  and members  are from                                                               
various sectors  of the  Alaska seafood  industry. He  shared his                                                               
vision  (which   the  ASMI  board   has  discussed)   that  these                                                               
committees  would  expand to  include  mariculture  experts -  or                                                               
perhaps  the ASMI  board would  create  a mariculture  committee.                                                               
This  would enable  the  mariculture sector  to  advise the  ASMI                                                               
board and  ensure that  decisions made by  ASMI are  aligned with                                                               
that sector's needs.                                                                                                            
                                                                                                                                
4:15:37 PM                                                                                                                    
CHAIR GIESSEL  asked about  the current  composition of  the ASMI                                                               
board.                                                                                                                          
                                                                                                                                
4:15:42 PM                                                                                                                    
MR.  WOODROW said  the board  has seven  voting members.  Five of                                                               
those  are seafood  processors (including  one small  processor).                                                               
The  remaining two  members  are harvesters.  He  noted that  the                                                               
harvesters must be engaged in commercial fishing in Alaska.                                                                     
                                                                                                                                
4:16:50 PM                                                                                                                    
CHAIR GIESSEL opened public testimony on SB 131.                                                                                
                                                                                                                                
4:17:06 PM                                                                                                                    
CHAIR GIESSEL held public testimony on SB 131 open.                                                                             
                                                                                                                                
4:17:25 PM                                                                                                                    
CHAIR GIESSEL held SB 131 in committee.                                                                                         
                                                                                                                                
4:18:51 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Giessel adjourned the Senate Resources Standing Committee                                                                 
meeting at 4:18 p.m.                                                                                                            

Document Name Date/Time Subjects
SB 130 - Support Letter - RDC.pdf SRES 4/9/2025 3:30:00 PM
SB 130
SB 130 - Support Letter - Trident - 4.8.25.pdf SRES 4/9/2025 3:30:00 PM
SB 130
SB 130 Fiscal Note DOR.pdf SRES 4/9/2025 3:30:00 PM
SB 130
SB 130 Seafood Product Development Tax Credit.pdf SRES 4/9/2025 3:30:00 PM
SB 130
SB 130 - Support Letter - PSPA - 3.27.25.pdf SRES 4/9/2025 3:30:00 PM
SB 130
SB 131 Transmittal Letter 3.13.25.pdf SRES 4/9/2025 3:30:00 PM
SB 131
SB 131 Sectional Analysis version A 3.17.25.pdf SRES 4/9/2025 3:30:00 PM
SB 131
SB 131 version A 3.14.25.pdf SRES 4/9/2025 3:30:00 PM
SB 131
SB 131 Fiscal Note DCCED-ASMI 3.13.25.pdf SRES 4/9/2025 3:30:00 PM
SB 131
SB 131 Fiscal Note DCCED-DCRA 3.13.25.pdf SRES 4/9/2025 3:30:00 PM
SB 131
SB 135 Fiscal Note DCCED.pdf SRES 4/9/2025 3:30:00 PM
SB 135
SB 135 Fiscal Note DOR.pdf SRES 4/9/2025 3:30:00 PM
SB 135