Legislature(2019 - 2020)BUTROVICH 205
03/20/2020 03:30 PM Senate RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| SB160 | |
| HB16 | |
| SB194 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 160 | TELECONFERENCED | |
| *+ | HB 16 | TELECONFERENCED | |
| + | SB 194 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 130 | TELECONFERENCED | |
SB 130-SEAFOOD PRODUCT DEVELOPMENT TAX CREDIT
CHAIR MICCICHE announced that the first order of business would
be SENATE BILL NO. 130, "An Act relating to a seafood product
development tax credit; providing for an effective date by
repealing secs. 32 and 35, ch. 61, SLA 2014; and providing for
an effective date."
He noted that the bill was previously heard and public testimony
was started. He said the intention today is to finish public
testimony, consider an amendment and look to the will of the
committee. He asked Mr. Lamkin to provide a brief recap of the
bill.
3:37:09 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, stated that SB 130 continues a
direct economic development policy that the State has used for
some time. It is intended to support the long-term development
of Alaska's value-added seafood processing industry. The salmon
and herring fisheries have traditionally been targeted and SB
130 adds pollock and cod products.
He detailed that the economic incentive has historically been in
the form of a tax credit applied to these fisheries that invest
in infrastructure and research and development to find ways of
improving existing or discovering new technologies in adding
value to all parts of the fish, from the gills to the collagen
to the scales.
MR. LAMKIN noted that there was an amendment for the committee
to consider that would add fisheries including cod, sole,
flounder, rockfish, and perch.
CHAIR MICCICHE said the amendment does not have a fiscal note so
it will not be considered today. He suggested that another
committee could take it up and he would be happy to discuss the
details of the amendment with those members.
3:39:04 PM
CHAIR MICCICHE turned to public testimony.
3:39:17 PM
MARK PALMER, President, Ocean Beauty Seafoods, Seattle, Alaska,
testified in support of SB 130. He stated that Ocean Beauty
Seafoods has five Alaska-based seafood processing plants in
Bristol Bay, Kodiak Island, Prince William Sound, and Southeast
Alaska.
MR. PALMER said Alaska has supported the seafood processing
industry over the years. The industry's last critical need was
to diversify the salmon product mix in Alaska. The State helped
the industry succeed with added-value infrastructure investment
in facilities and the industry continues to benefit from the
investment. SB 130 is the final piece for the industry to fully
utilize its processing waste stream.
He said as the seafood processing industry faces increased
demands from the United States Environmental Protection Agency
(EPA), an opportunity exists to develop an economic benefit from
the 10 million pounds of permitted discharge from each of Ocean
Beauty Seafoods' processing facilities. There is an opportunity
to develop economic benefit for the State by reprocessing the
industry's waste stream into finished goods and value-added
products, including existing markets for nutraceutical and
pharmaceutical products.
MR. PALMER said the seafood processing plants in Alaska are
seasonal operations and the industry needs support to get the
needed value-added infrastructure in place. The industry
anticipates a small fiscal note because the biggest
infrastructure requirements are already in place. SB 130 will
support remote salmon facilities and smaller processing plants
around the state, he said.
CHAIR MICCICHE agreed that the seafood processing industry has
challenges ahead and his hope is to pass the legislation during
the current legislative session.
3:41:45 PM
CHRIS BARROWS, President, Pacific Seafood Processors
Association, Tacoma, Washington, testified in support of SB 130.
He said there is no better way to increase the value of Alaska's
resources than to increase the utilization of harvested fish.
Seafood processors have proven greater value in the past from
increased salmon and herring utilization. Given the volume from
the cod and pollock fisheries, increased utilization of the two
species is an appropriate approach for a greater return on
investment.
3:42:56 PM
CHAIR MICCICHE closed public testimony. Finding no questions, he
solicited the will of the committee.
3:43:11 PM
SENATOR REVAK moved to report SB 130, work order 31-LS1197\M,
from committee with individual recommendations and attached
fiscal note.
3:43:27 PM
CHAIR MICCICHE found no objection and SB 130 was reported from
the Senate Resources Standing Committee.