Legislature(2021 - 2022)BUTROVICH 205
04/26/2021 03:30 PM Senate RESOURCES
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| Audio | Topic |
|---|---|
| Start | |
| SB110 | |
| SB125 | |
| SB113 | |
| SB59 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 110 | TELECONFERENCED | |
| *+ | SB 113 | TELECONFERENCED | |
| *+ | SB 125 | TELECONFERENCED | |
| *+ | SB 59 | TELECONFERENCED | |
| *+ | HB 79 | TELECONFERENCED | |
| *+ | HB 80 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 113-EXTEND FISHERY RESOURCE LAND. TAX CREDIT
4:47:39 PM
CHAIR REVAK reconvened the meeting and announced the
consideration of SENATE BILL NO. 113 "An Act extending the
fishery resource landing tax credit for certain taxpayers that
harvest fishery resources under the provisions of a community
development quota; providing for an effective date by amending
the effective date of sec. 36, ch. 61, SLA 2014; and providing
for an effective date."
4:48:00 PM
SENATOR DONNY OLSON, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 113, explained the bill extends the termination
date of the fishery resource tax credit. This will allow the
Western Alaska Community Development Quota (CDQ) Program to
continue its essential function to many of Alaska's rural
coastal villages. The program is based on the landing tax credit
for fish, which provides economic development in Western Alaska.
He reminded members that they heard and passed an identical bill
last year, but it did not make it through the process before the
legislature adjourned due to the COVID-19 pandemic. The sunset
was in 2020 and SB 113 seeks to revive and extend the program to
2030. He noted who was available to speak on the bill and
deferred further introduction to Mr. Truitt.
4:49:15 PM
KEN TRUITT, Staff, Senator Olson, Alaska State Legislature,
Juneau, Alaska, stated the bill last year was a sunset extension
bill. This year SB 113 is identical in form, and it extends the
Western Alaska Community Development Quota Program to December
31, 2030.
4:49:51 PM
SENATOR VON IMHOF described SB 113 as fairly simple and a good
bill. She paraphrased the final paragraph of the sponsor
statement that read as follows:
The Department of Revenue and Legislative Finance
Division states that the legislative intent has been
met and recommended continuation of the program
(January 2019 Indirect Expenditure Report, page 14).
The estimated Revenue Impact for FY2013- FY2017 was an
average of $553,558.60, while no revenue is foregone
by the state. This tax credit program continues
serving its purpose by attracting donations each year
to Alaska nonprofit corporations that are dedicated to
continually improving our fisheries.
4:50:09 PM
CHAIR REVAK opened public testimony on SB 113.
4:50:37 PM
NORM VAN VACTOR, President and Chief Executive Officer, Bristol
Bay Economic Development Corporation (BBEDC), Dillingham,
Alaska, thanked the sponsor for introducing SB 113 to extend the
sunset date for the fisheries landing tax credit for taxpayers
that harvest resources under the provisions of the Community
Development Quota Program. He related that BBEDC was one of the
six Alaska CDQ corporations; it represents 17 coastal
communities.
MR. VAN VACTOR stated the CDQ Program provides Alaska
communities along the Bering Sea coast with harvest quotas in
the federal water fisheries of the exclusive economic zone
(EEZ). The returns are invested in the fisheries, fisheries
programs, and regional development programs to provide
employment and educational opportunities for community
residents.
MR. VAN VACTOR explained that BBEDC's for-profit fishing
partners who are harvesting the CDQ quota are eligible to
participate in the tax credit program. BBEDC relies on this
program to supplement the Bristol Bay Science and Research
Institute and BBEDC's collaborative work with ADF&G. He said
these efforts are critical in providing stable research funding
that directly benefits the state, region, and health of the
salmon resource. Extending the program to 2030 would provide
stability for long term planning in the region and further
solidifies the collaborative work with ADF&G and other members
of the Bristol Bay collaborative.
4:52:58 PM
JENNIFER WILLIAMS, Government Affairs, Yukon Delta Fisheries
Development Association (YDFDA), Anchorage, Alaska, stated the
YDFDA is the CDQ entity that represents 3,400 residents from six
communities in the Yukon Delta. The CDQ program provides fishery
and economic benefits to resident fishermen, their families, and
the entire region, which is one of the most economically
challenged in the U.S. She related that YDFDA uses the Fishery
Resource Landing Tax Program to offset the amounts spent
annually to support fishery research and monitor studies on the
Yukon River in collaboration with ADF&G. Area residents are
employed to every extent possible. She described the different
test fishing and monitoring activities on the Lower Yukon that
the credits help pay for and noted the data from these test
fisheries are used to predict both commercial and subsistence
openings. She emphasized the value of this scientific
information to both ADF&G and the economic wellbeing of the
region. She expressed appreciation for this well-administered
program and urged the legislature to extend the sunset date.
4:56:04 PM
HEATHER MCCARTY, representative, Central Bering Sea Fishermen's
Association (CBSFA), St. Paul, Alaska, stated CBSFA is one of
the six CDQ groups and the one that represents St. Paul in the
Pribilof Islands. She said the community depends on both the
small boat halibut fishery and the crab fishery in the Bering
Sea, and has relied heavily on the program since inception. She
related that CBSFA has not only conducted a great deal of
research on both halibut and crab, they also have been able to
fund a college scholarship program. She stated hearty support
for SB 113 and the extension of the tax credit program.
4:57:13 PM
ANGEL DROBNICA, representative, Aleutian Pribilof Island
Community Development Association (APICDA), Juneau, Alaska,
stated APICDA represents six remote communities in Southwest
Alaska and is one of the six CDQ entities whose mission is to
increase direct participation in the Bering Sea and Aleutian
Islands fisheries, and help develop a sustainable fisheries-
based economy. She explained APICDA uses the revenue generated
from its quota holdings and fisheries investments to create
jobs, build infrastructure, provide scholarships and workforce
training, and help support a range of local initiatives and
projects with grant programs to eligible community entities. She
stated support for SB 113 and the continuation of the Resource
Landing Tax Credit Program. Under this program, APICDA's harvest
partners have the opportunity to attribute a portion of their
landing tax liability from the harvest of the CDQ quota for
Pacific fisheries investments. She said this has been a very
meaningful program and APICDA encourages the committee to
advance the bill.
4:58:38 PM
CHAIR REVAK discerned that no one else wished to comment, and
closed public testimony on SB 113.
CHAIR REVAK found no questions or comments and asked the will of
the committee.
4:59:06 PM
SENATOR VON IMHOF moved to report SB 113, work order 32-
LS0719\A, from committee with individual recommendations and
attached fiscal note(s).
4:59:21 PM
CHAIR REVAK found no objection and SB 113 moved from the Senate
Resources Standing Committee.