03/17/1993 08:30 AM House FSH

  HB 191:  CONTRACTOR OPERATED STATE HATCHERIES                                
                                                                               
  REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR of HB 191, told                  
  the committee that several years ago legislation was passed                  
  that would allow state owned hatcheries to be put out on                     
  contract for operation by private and non profit                             
  corporations to help get the state out of the expensive                      
  burden of running hatcheries.  The contractor could then                     
  harvest fish from the hatchery to cover the cost of                          
  operating that particular hatchery (cost recovery).                          
                                                                               
  REPRESENTATIVE WILLIAMS added that the main problem with                     
  current law is that the language is too restrictive and                      
  inflexible, regarding the shuffling of funds between                         
  hatcheries.  He gave an example of an aquaculture                            
  association that has several hatcheries and then contracts                   
  to run one of the state's hatcheries, and that particular                    
  hatchery has a bad year, the association would have to take                  
  money that was generated at the other facilities to                          
  subsidize the operation for the state hatchery.  However,                    
  because the law restricts the use of cost recovery funds                     
  generated at the contracted hatchery to operation of only                    
  that facility, the shuffling of funds cannot go the other                    
  way.                                                                         
                                                                               
  REPRESENTATIVE WILLIAMS said HB 191 broadens the description                 
  of how cost recovery monies generated from a state owned                     
  hatchery operated under contract may be spent by the                         
  contractor.  It allows for the shuffling of funds between                    
  the various facilities operated by the contractor and it                     
  allows for capital expenditures to be made from these cost                   
  recovery monies.                                                             
                                                                               
  Number 055                                                                   
                                                                               
  GERON BRUCE, SPECIAL ASSISTANT, ALASKA DEPARTMENT OF FISH                    
  AND GAME (ADF&G), stated the ADF&G supports HB 191, and the                  
  ADF&G felt the current legislation unnecessarily restricted                  
  the flexibility that an aquaculture association might have                   
  to pool its funds and most effectively use its resources to                  
  operate its facilities.                                                      
                                                                               
  Number 065                                                                   
                                                                               
  REPRESENTATIVE GAIL PHILLIPS asked how many of the                           
  hatcheries would not be in an aquaculture association under                  
  the new scenario.                                                            
                                                                               
  MR. BRUCE said that there would be two hatcheries in                         
  Southeast, three in Cook Inlet, operated by the sports                       
  fishermen, one in Kotzebue, and one in Fairbanks.                            
                                                                               
  VICE CHAIR HARLEY OLBERG talked about the Gulkana hatchery                   
  which is two hundred miles from salt water.  He noted since                  
  the Copper River is a mixed stock run, there can be no cost                  
  recovery, and Prince William Sound Aquaculture Corporation                   
  cannot recover any costs from that hatchery because it is a                  
  mixed stock run.                                                             
                                                                               
  Number 121                                                                   
                                                                               
  REPRESENTATIVE PHILLIPS asked if there were any legal                        
  prohibitions regarding this amendment.                                       
                                                                               
  MARIE SANSONE, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF                     
  LAW, responded that the amendment was necessary because the                  
  section as originally passed, restricted the cost recovery                   
  at the state hatchery.                                                       
                                                                               
  Number 137                                                                   
                                                                               
  RAY GILLESPIE, LOBBYIST for four aquaculture associations:                   
  Cook Inlet, Prince William Sound, and Northern and Southern                  
  Southeastern, said the four groups unanimously supported                     
  HB 191.                                                                      
                                                                               
  Number 157                                                                   
                                                                               
  REPRESENTATIVE PHILLIPS made the MOTION to move HB 191 out                   
  of committee with individual recommendations, and IT WAS SO                  
  MOVED.