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**
        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.                                                                                         

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