Legislature(2003 - 2004)
03/31/2003 03:39 PM Senate RES
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 139-AK SALMON PRICE REPORT PROGRAM
MR. IAN FISK, staff to Representative Ogg, told members he has
been working with Senator Dyson on SB 139 and presented it to
the committee as follows.
SB 139 repeals the sunset date of a Department of Revenue (DOR)
program called the Alaska Salmon Price Report (ASPR). Under the
ASPR, processors who sell over 1 million pounds of salmon
products in one year are required to report to DOR the wholesale
prices they receive for those products. This report is due three
times per year: January 31, May 31, and September 30. It details
monthly and annual average wholesale prices sorted by salmon
species, by product form, and by the eight regions in which the
salmon are produced. The ASPR allows government agencies and
industry analysts to estimate inventory of Alaska salmon and it
provides data that is helpful in negotiations between harvesters
and processors. DOR issues an annual report to the legislature
to enable legislators to see what is being done with a public
resource. The statute sunsets on July 1, 2003. The sponsor
believes the ASPR program should be a permanent function of DOR
so SB 139 repeals the sunset date.
CHAIR OGAN asked if SB 139 will make this law permanent.
MR. FISK said that is correct.
CHAIR OGAN pointed out that the bill has no fiscal note because
the program is currently funded with federal money. He asked
what will happen if the federal money dries up and the state has
an obligation to fund it with general fund monies.
MR. FISK said that is a good question. He noticed today, when
the fiscal note was delivered, that the Tax Division has
proposed changing the funding source to [federal] salmon treaty
fund money appropriated to the Alaska Department of Fish and
Game (ADF&G). He said to his understanding, that is a stable
source of funding but he has not spoken with anyone in the
department about it.
CHAIR OGAN pointed out that if the federal money is not
received, the cost to the state would be $50,000 per year.
MR. FISK said that is correct, according to DOR.
SENATOR BEN STEVENS explained that the Pacific Salmon Treaty is
an international treaty that has been in effect for many years
and is likely to be funded for many years to come. He noted that
as long as the treaty is in effect, Alaska will continue to be a
recipient of funds. He also said the original salmon price
report contained price information and was funded by the Alaska
Seafood Marketing Institute (ASMI).
MR. FISK said he believes that was the case with the wholesale
price report, which was changed to the ASPR when more data was
required. He understands the funding no longer comes through
ASMI, it comes through the salmon market information service,
which is provided by ASMI.
CHAIR OGAN pointed out if there is a question about the fiscal
note, it is more appropriate that the Senate Finance Committee
examine it. He then took public testimony.
In response to a question by Chair Ogan about whether there is a
compelling need to continue the ASPR, MR. BRUCE SCHACTLER,
testifying from Kodiak, told members that he would question
whether the report actually costs $50,000 per year. He noted the
only reason fishermen are as informed as they are about prices
for different products is because of the ASPR. The ASPR is the
only database close to real time that provides this information.
The price report is authored by the McDowell Group and is used
by ASMI, the National Marine Fisheries Services (NMFS), the U.S.
Departments of Agriculture and Commerce, the University of
Alaska, the University of Washington, a host of academic
entities, the legislature and hundreds of individuals.
MR. JERRY McCUNE, Executive Director of the United Fishermen of
Alaska (UFA), stated support for SB 139 because the ASPR
provides a good snapshot of what products are going where.
CHAIR OGAN asked if the ASPR is an appropriate state function or
whether it should be supported by UFA.
MR. McCUNE said that would be difficult for UFA to do because
DOR gathers the information, most of which is confidential. He
added that UFA does not have the staff or funds to produce the
report.
SENATOR WAGONER moved SB 139 and its zero fiscal note from
committee with individual recommendations. With no objection,
CHAIR OGAN announced the motion carried.
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