Legislature(2005 - 2006)CAPITOL 124

04/15/2005 08:30 AM House FISHERIES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved CSHB 218(FSH) Out of Committee
Moved CSHB 37(FSH) Out of Committee
HB 218-PRIVATE HATCHERY COST RECOVERY FISHERIES                                                                               
CO-CHAIR THOMAS announced  that the next order  of business would                                                               
be  HOUSE  BILL  NO.  218,  "An Act  relating  to  cost  recovery                                                               
fisheries for private nonprofit hatchery facilities."                                                                           
8:50:16 AM                                                                                                                    
REPRESENTATIVE  ELKINS moved  to adopt  the committee  substitute                                                               
for  HB  218, Version  24-LS0544/Y,  Utermohle,  4/12/05.   There                                                               
being no objection, Version Y was before the committee.                                                                         
8:51:19 AM                                                                                                                    
IAN  FISK,   Staff  to   Representative  Thomas,   presented  the                                                               
committee  substitute  for HB  218  on  behalf of  Representative                                                               
Thomas, sponsor.   He pointed out that the  findings were changed                                                               
to read:                                                                                                                        
     The Alaska State Legislature  finds that Alaska private                                                                    
     nonprofit   salmon  hatcheries   should  maximize   the                                                                    
     harvests  of  returning   hatchery-produced  salmon  by                                                                    
     commercial   salmon  fishing   permit  holders.     The                                                                    
     legislature   also   finds   that   private   nonprofit                                                                    
     hatcheries  should  minimize,  to the  greatest  extent                                                                    
     feasible,  the  direct  sale  of  salmon  harvested  in                                                                    
     special harvest areas.                                                                                                     
MR.  FISK  explained that  subsection  (e)  on  page 3  has  been                                                               
reworded to model other fishing  industry assessments such as the                                                               
3 percent salmon enhancement tax.   This was because the attorney                                                               
general's  office advised  that the  original language,  in which                                                               
the revenue  from the  assessment would be  held in  trust, would                                                               
not work;  assessments are  considered revenue  to the  state and                                                               
therefore must be appropriated by  the legislature.  He commented                                                               
that this will cause a delay in the distribution of the funds.                                                                  
8:53:27 AM                                                                                                                    
MR. FISK  stated that lines  20 and  22 on page  2 and line  3 on                                                               
page  3 had  been  changed  such that  the  Alaska Department  of                                                               
Revenue would no longer be able  to set the dates of distribution                                                               
to the  funds because the  funds have  to be appropriated  by the                                                               
legislature.   Also, line 22  on page 3  was altered to  make the                                                               
violation of  this bill  a Class  A fisheries  misdemeanor rather                                                               
than a Class  A misdemeanor, and therefore the fine  can be up to                                                               
$15,000,  and could  require  forfeiture of  the  vessel and  the                                                               
gear.   Mr.  Fisk emphasized  that there  are no  changes to  the                                                               
bill's main language.                                                                                                           
8:55:37 AM                                                                                                                    
REPRESENTATIVE WILSON asked  if the hatcheries will  be likely to                                                               
make any changes if the language in the bill is permissive.                                                                     
MR.  FISK  replied  that  it  wouldn't  be  appropriate  for  the                                                               
legislature  to  require  these  changes.    He  noted  that  the                                                               
hatcheries   each   have   different   circumstances,   including                                                               
different debts and  different types of fish,  and therefore they                                                               
shouldn't  be  forced  into  operating  in  the  same  way.    He                                                               
commented  that it's  hard to  guess how  many of  the hatcheries                                                               
will  make these  changes;  it's  up to  each  hatchery board  to                                                               
decide for itself.                                                                                                              
8:57:52 AM                                                                                                                    
REPRESENTATIVE WILSON asked  if the hatcheries are  in a position                                                               
where they can handle the delay in funding.                                                                                     
MR.  FISK responded  that this  would depend  on the  finances of                                                               
each individual hatchery.                                                                                                       
8:58:33 AM                                                                                                                    
CO-CHAIR THOMAS  stated, "The  fishermen started  the hatcheries,                                                               
the  fish  were for  them  to  increase their  profitability  and                                                               
produce more  common property fish.   Hopefully ... the  board of                                                               
directors have  enough commercial  fishermen on their  board that                                                               
they can utilize this [bill].  And I think it's a good tool...."                                                                
8:59:37 AM                                                                                                                    
BRUCE  WALLACE  noted  that  he  is  on  the  Southern  Southeast                                                               
Regional Aquaculture Association (SSRAA)  board, and said that at                                                               
this time he doubted SSRAA would  support this bill.  However, he                                                               
commented that as  long as the bill is permissive,  it is good to                                                               
have it available as a tool.                                                                                                    
9:01:06 AM                                                                                                                    
PETER  ESQUIRO,  General  Manager,  Northern  Southeast  Regional                                                               
Aquaculture  (NSRAA), commented  that  he was  glad the  findings                                                               
were changed in  the CS for HB 218.   He explained that financing                                                               
a hatchery outside of the public  sector is no small job; private                                                               
operation of  hatcheries is very  rare.   He noted that  20 years                                                               
ago  when  private  nonprofit hatcheries  were  authorized,  cost                                                               
recovery was identified by the  legislature as the mechanism most                                                               
likely to  succeed in  allowing for  private payment  of hatchery                                                               
operating costs.  He continued:                                                                                                 
     For a number of years we have not been fully satisfied                                                                     
     with the way cost recovery is going.  Despite the fact                                                                     
     that  we   have  been,  in  this   association,  fairly                                                                    
     successful in  getting 70 plus  percent of  our returns                                                                    
     every year to the  common property fisheries. ... We've                                                                    
     always  felt that  there's some  room for  improvement.                                                                    
     And we  continue to look  for those areas where  we can                                                                    
     improve that program.  But  ... in all the looking that                                                                    
     we've done in the past 15  years or so, we've not found                                                                    
     a  replacement for  it that  does not  result in  a net                                                                    
     loss in  value to  the commercial  fishery resource....                                                                    
     Contributions [to this cost  recovery program] are very                                                                    
     diverse.  ... We  have several  sources  of income;  we                                                                    
     have  several species  in several  locations that  feed                                                                    
     into our total cost recovery program....                                                                                   
9:05:29 AM                                                                                                                    
MR. ESQUIRO expressed appreciation  for the permissiveness of the                                                               
bill.   He  also  made some  recommendations  for other  possible                                                               
changes.  He  asked for clarification regarding  the word "board"                                                               
on page 2, line 10, as it  isn't clear whether it is referring to                                                               
the  Board  of  Fisheries  or  the  board  of  directors  of  the                                                               
corporation.   He commented that  the words,  "representatives of                                                               
affected  commercial  fishermen"  on   page  3,  lines  5-6,  are                                                               
redundant in that there are  15 commercial fisherman on the NSRAA                                                               
board  of directors,  which is  the hatchery  permit holder.   He                                                               
recommended  that  the word  "facility"  on  page  3, line  9  be                                                               
changed to  "corporation" because  the corporation is  the entity                                                               
that has the fiduciary responsibilities to fulfill.                                                                             
MR. ESQUIRO,  regarding subsection (e)  on page 3,  commented, "I                                                               
know that's  modeled after the  language ... that  authorizes the                                                               
salmon enhancement tax,  and I hope that we can  continue to have                                                               
the  same   kind  of  relationship   that  we've  had   with  the                                                               
legislature for  the last ...  twenty-some years with  respect to                                                               
appropriating the  funds."  He then  turned to page 4,  lines 1-4                                                               
regarding the exemption, he said:                                                                                               
     In  some  years,  the salmon  enhancement  tax,  the  3                                                                    
     percent tax  that's generated from  the fish  caught at                                                                    
     Hidden Falls  hatchery can be one-quarter  to one-third                                                                    
     of our entire  enhancement tax in a given year.   So in                                                                    
     the models that we've  worked with to determine whether                                                                    
     or not  this is a good  thing for fishermen ...  we did                                                                    
     not take  exempting this  from the  3 percent  tax into                                                                    
     consideration.   So  I hope  that you  would reconsider                                                                    
     that exemption part there, because  that is real income                                                                    
     that we have coming in to us.                                                                                              
MR. ESQUIRO  stated that NSRAA  is still opposed  to HB 218.   He                                                               
said, "I don't think that this  is really enforceable, and in the                                                               
models  that  I've looked  at,  I  don't  know that  this  really                                                               
produces the results desired by the commercial fishermen."                                                                      
9:10:08 AM                                                                                                                    
STEVE   REIFENSTUHL,  Operations   Manager,  Northern   Southeast                                                               
Regional  Aquaculture  Association  (NSRAA),  remarked  that  the                                                               
findings  in  Version  Y  are   much  better  that  the  original                                                               
language.  He said that he  has done an economic analysis of what                                                               
it  would mean  if this  bill  were implemented  at Hidden  Falls                                                               
hatchery.   The  conclusion of  this analysis,  he said,  is that                                                               
there would be a net negative  benefit to the fishermen with this                                                               
tax imposed  at the hatchery.   He commented that only  under one                                                               
or two  scenarios, with  no administrative  fees, no  increase in                                                               
enforcement monies, and with a price  of about 27 cents, is there                                                               
any benefit to common property  fisheries; all other cases, there                                                               
would  be a  negative benefit  and the  fishermen would  actually                                                               
have less  money in their pockets  at the end of  the season than                                                               
they did to begin with.                                                                                                         
MR. REIFENSTUHL noted  that he sent the NSRAA  letter of response                                                               
to HB 218 to all the representatives.  He said:                                                                                 
     Managing a fishery  at one of the  hatchery programs is                                                                    
     a very  difficult and complex job.   And to do  that we                                                                    
     have to  consider not only  contribution to  the common                                                                    
     property fisheries  but also our cost  recovery program                                                                    
     and, more particularly,  our brood stock.   And if this                                                                    
     proposal  were implemented  at Hidden  Falls, we  would                                                                    
     still potentially have to close  down a midweek fishery                                                                    
     because of brood stock concerns.                                                                                           
MR.  REIFENSTUHL explained  that in  many areas  there are  brood                                                               
stock  requirements  of over  100,000  fish,  which can  be  5-10                                                               
percent of the return.  He noted:                                                                                               
     It takes  a great  deal of effort  to have  that entire                                                                    
     return represented  in the timing;  we can't  just wait                                                                    
     until  the  end of  the  return  to take  brood  stock,                                                                    
     because that  would skew the timing  on future returns.                                                                    
     So  we  have  to  manage  the  fishery  from  the  very                                                                    
     beginning to  the end to assure  representation of that                                                                    
     brood stock.                                                                                                               
9:14:15 AM                                                                                                                    
MR. REIFENSTUHL  commented on the  exemption listed on page  4 of                                                               
the bill; he  said that he didn't realize that  the 3 percent tax                                                               
wouldn't be  applied to the  fish harvested  in any one  of these                                                               
special harvest areas.  He stated  that, for example, if they had                                                               
to have a  30 percent tax on the Hidden  Falls fishery, this bill                                                               
would require  that they change it  to a 33 percent  tax in order                                                               
to generate  the revenue required  for operations.  He  said that                                                               
the delay  in revenue  appropriations would  be a  major problem;                                                               
most organizations  don't have the  funds, or what funds  they do                                                               
have are already allocated for certain purposes.                                                                                
9:15:45 AM                                                                                                                    
CO-CHAIR  THOMAS asked  Mr. Reifenstuhl  what  percentage of  the                                                               
contributions to the hatchery come from sport charter fleet.                                                                    
MR. REIFENSTUHL replied  that the hatchery does  not get anything                                                               
on  a regular  basis  from  either the  sport  fish division  [of                                                               
ADF&G] or from sport fish charter  operations.  He said that they                                                               
occasionally receive a small sum  of money from the local charter                                                               
boat  organizations,  but he  noted  that  the program  is  worth                                                               
hundreds of thousands of dollars to the sport fisheries.                                                                        
CO-CHAIR THOMAS  remarked that  it is a  $20 million  industry to                                                               
the sport charter operators in Sitka.                                                                                           
9:17:52 AM                                                                                                                    
MIKE   WELLS,  Sales   Manager,   Valdez  Fisheries   Development                                                               
Association (VFDA),  testified in opposition  to Version Y  of HB
218.  He  said that he has serious concerns  about subsection (e)                                                               
on page 3.  He said:                                                                                                            
     The  suggestion that  the assessed  funds will  go into                                                                    
     the general  fund and then  the legislature may  or may                                                                    
     not  appropriate  these  funds  back  to  the  hatchery                                                                    
     operator  is just  not going  to work  in our  opinion.                                                                    
     There's just  no guarantee that these  funds would come                                                                    
     back  to the  hatcheries after  being subjected  to the                                                                    
     legislative  process.   Hatchery  operators,  including                                                                    
     VFDA, simply  can't wait to pay  expenses pending these                                                                    
     appropriations and  we're not sure what,  if any, loans                                                                    
     ... or  funding would  be available  in reserves  to be                                                                    
     able to carry us over.                                                                                                     
MR. WELLS  pointed out that there  is no fiscal note  attached to                                                               
the bill  and no  financial analysis has  been completed  on what                                                               
the impact of  HB 218 would have on the  private hatcheries or on                                                               
the Alaska Department  of Revenue, which holds the  notes on most                                                               
of the hatcheries.                                                                                                              
9:19:39 AM                                                                                                                    
REPRESENTATIVE HARRIS stated that  the language in subsection (e)                                                               
on page  3 is "more  boilerplate than  anything else."   He asked                                                               
Co-Chair Thomas  if he knew  of any  language in statute  that is                                                               
permissive  in this  way.    He also  asked  if  this bill  would                                                               
develop a situation where a hatchery  would not know from year to                                                               
year whether or  not their cost recovery money  would be returned                                                               
to them.                                                                                                                        
CO-CHAIR THOMAS replied  that it is his understanding  that the 3                                                               
percent salmon enhancement tax is handled in the same way.                                                                      
REPRESENTATIVE HARRIS asked if anyone  from the Alaska Department                                                               
of Revenue was available to take questions.                                                                                     
MR. FISK answered that no one  from that department could make it                                                               
to the meeting.                                                                                                                 
9:21:42 AM                                                                                                                    
STEVE  DAUGHERTY, Assistant  Attorney General,  Alaska Department                                                               
of Law  (DOL), stated that he  is very happy with  the changes in                                                               
the  CS.   He  noted that  DOL  still has  a  very concerns  with                                                               
subsection (d) on  page 3 and the broad discretion  that it gives                                                               
to the  commissioner of the  Alaska Department of Revenue  to set                                                               
an  assessment  anywhere  between  zero and  40  percent  without                                                               
definite guidelines  and criteria for  imposing a set level.   He                                                               
said that  DOL does recognize  that there are criteria  there and                                                               
that the  bill may be  defensible, however DOL does  believe that                                                               
it  would  be  more  defensible if  more  explicit  criteria  for                                                               
establishment of the fee are set forth in the bill.  He stated:                                                                 
     We  note that  there are  no other  statutes that  give                                                                    
     such broad  discretion to  a department  to set  such a                                                                    
     wide  range  of  an  assessment.   Most  of  the  other                                                                    
     statutes  that deal  with this  situation, such  as the                                                                    
     salmon  enhancement tax,  the  dive fishery  management                                                                    
     assessment,  and the  seafood marketing  assessment lay                                                                    
     out  specific options  that the  department can  choose                                                                    
     between,  and  in  some  cases  have  a  vote  of  [an]                                                                    
     association  to  determine which  one  is  going to  be                                                                    
     imposed.   We would  be more comfortable  with language                                                                    
     like that, but we do  realize that with the uncertainty                                                                    
     and  the  variance  between the  different  hatcheries,                                                                    
     that such  a scheme might  not be feasible,  because it                                                                    
     might require 40 or more  separate options.  And we are                                                                    
     continuing to work with the  sponsor of the bill and we                                                                    
     hope that  we can  develop some more  definite criteria                                                                    
     for the assessment in future versions of the bill.                                                                         
9:24:20 AM                                                                                                                    
BRUCE   WHITE,   Hatchery   Program  Coordinator,   Division   of                                                               
Commercial Fisheries,  Alaska Department of Fish  & Game (ADF&G),                                                               
stated that  ADF&G has  some concerns with  the legislation.   He                                                               
     The  department ...  does exercise  authority over  the                                                                    
     private  nonprofit  hatcheries   through  their  annual                                                                    
     management plans.  However the  department has not been                                                                    
     involved in  the actual mechanics of  the cost recovery                                                                    
     operations of  these hatcheries.  And  this legislation                                                                    
     would   have  the   department   establish  rules   and                                                                    
     conditions   governing  these   common  property   cost                                                                    
     recovery  fisheries, and  the  department would  prefer                                                                    
     not to  become involved as  a referee on an  issue that                                                                    
     is  basically between  the fishermen  and the  hatchery                                                                    
MR. WHITE continued:                                                                                                            
     Second  concern is  this  legislation  has the  [ADF&G]                                                                    
     consulting   with   the   Department  of   Revenue   in                                                                    
     establishing  the rate  of assessment  to be  levied on                                                                    
     the  fishermen.   And  we currently  do  not know  what                                                                    
     information  or expertise  the [ADF&G]  is expected  to                                                                    
     provide or its  role in this consultation.   And again,                                                                    
     historically the [ADF&G] has not  had a role in setting                                                                    
     hatchery cost  recovery policies or amounts,  and would                                                                    
     prefer that it  to continue to not have a  roll in that                                                                    
MR. WHITE commented:                                                                                                            
     The  {ADF&G]  is  concerned that  the  early  and  late                                                                    
     portions of  the returns to the  hatchery cost recovery                                                                    
     when the volumes of fish  are relatively low may not be                                                                    
     adequately   harvested,   especially  if   other   more                                                                    
     attraction   opportunities   are   available   to   the                                                                    
     commercial  fishermen.   So the  {ADF&G] would  want to                                                                    
     ensure  that the  hatchery had  a  backup harvester  or                                                                    
     harvesters to clean  up any fish from  the beginning or                                                                    
     end of the run that may  not be harvested in the common                                                                    
     property fishery.                                                                                                          
MR. WHITE concluded:                                                                                                            
     The {ADF&G] understands that  this legislation has been                                                                    
     generated  because   of  some  conflicts   between  the                                                                    
     hatchery  cost  recovery operations  and  opportunities                                                                    
     for common property fisheries on  hatchery stocks.  The                                                                    
     {ADF&G]  is  willing  to work  on  solutions  to  these                                                                    
     problems when they  are brought to our  attention.  And                                                                    
     in   closing,  the   {ADF&G]   appreciates  that   this                                                                    
     legislation is voluntary and  the hatchery operator has                                                                    
     the  option to  utilize common  property fisheries  for                                                                    
     cost recovery.   We're also  supportive of  the efforts                                                                    
     to  benefit  ...   commercial  fishermen  and  hatchery                                                                    
     operators, which we believe this bill attempts to do.                                                                      
9:28:17 AM                                                                                                                    
BOB THORSTENSON, President, United Fishermen of Alaska (UFA);                                                                   
Executive   Director,  Southeast   Alaska  Seiners   Association,                                                               
testified in support  of HB 218.  He said,  "All we're asking for                                                               
is  the ability  to discuss  with the  hatchery and  the hatchery                                                               
board  a  way to  have  a  direct user  fee  so  the people  that                                                               
actually catch the fish pay the fee."  He continued:                                                                            
     [Under this  bill, Alaska Department of  Fish & Game's]                                                                    
     role will  not change  dramatically at  all.   The fish                                                                    
     are  going  to be  caught  during  the common  property                                                                    
     harvest, ... not in a  special cost recovery fishery if                                                                    
     this legislation  were to be  passed;   [ADF&G] already                                                                    
     manages  that common  property  fishery.  ... The  cost                                                                    
     recovery fishery is  going to be taken  into the common                                                                    
     property fishery, so  ... this is not going  to be cost                                                                    
     recovery anymore if a hatchery  decides to go down this                                                                    
     course  because  cost recovery  will  come  out of  the                                                                    
     assessment in the fishery.                                                                                                 
MR. THORSTENSON remarked  that ADF&G has a role in  the 3 percent                                                               
enhancement  tax and  he said,  "We're not  asking for  a greater                                                               
role than that.   He continued, "The [ADF&G] has  to make a guess                                                               
or  make an  estimate of  how  many fish  are coming  back.   The                                                               
[ADF&G]  doesn't  have to  levy  taxes,  come up  with  different                                                               
revenue ideas;  [ADF&G] is  just going to  do the  normal, simple                                                               
role of  estimating how much  fish are  coming back."   He opined                                                               
that there will always be  fishermen available to catch the fish,                                                               
and [therefore there will be no need for backup harvesters].                                                                    
9:31:53 AM                                                                                                                    
REPRESENTATIVE HARRIS  commented that VFDA had  expressed concern                                                               
about how  the hatchery can be  sure that it will  get funding to                                                               
operate the hatchery.                                                                                                           
MR. THORSTENSON  replied that  most districts  have some  sort of                                                               
overriding  enhancement tax  which  then goes  only  to the  main                                                               
regional   aquaculture  associations;   therefore  some   of  the                                                               
hatcheries do  not collect an  enhancement tax.  For  example, in                                                               
Southeast Alaska the  3 percent enhancement tax is  given only to                                                               
NRSAA and SSRAA.  He estimated  that NRSAA collects an average of                                                               
between  $700,000  to  $1.2  million   [per  year],  while  SSRAA                                                               
collects about $350,000 to $800,000.                                                                                            
REPRESENTATIVE  HARRIS asked  if  that  money automatically  goes                                                               
back to those hatcheries.                                                                                                       
MR. THORSTENSON  answered that  it is  his understanding  that it                                                               
takes 9-12  months for the  money to  come back to  the hatchery.                                                               
He commented,  "Some of the  hatchery operators are looking  at a                                                               
potential problem with this funding  because it will mirror that,                                                               
the same kind of collection and  it will be nine or twelve months                                                               
later that the funds will come  back."  He opined that because of                                                               
this delay, there  might have to be a much  higher assessment the                                                               
first year  so that the hatchery  can be prepared for  the delay.                                                               
He pointed out that in cost  recovery the hatchery would get paid                                                               
within 30 days of selling the fish.                                                                                             
9:34:48 AM                                                                                                                    
REPRESENTATIVE HARRIS asked Mr.  Thorstenson if he understood the                                                               
hatcheries'  concerns  about  waiting   for  the  legislature  to                                                               
appropriate funds every year.                                                                                                   
MR.  THORSTENSON said  that hatchery  boards have  to take  it on                                                               
faith that they will get the funds they need.                                                                                   
9:35:39 AM                                                                                                                    
REPRESENTATIVE WILSON  commented that she doesn't  understand the                                                               
process  of allocating  funds to  the hatcheries.   She  asked if                                                               
this was  part of  the budget deliberations,  and if  the funding                                                               
has ever been adjusted by the legislature.                                                                                      
MR.  ESQUIRO explained  that in  the beginning  all the  regional                                                               
aquacultures gave  information to the legislature  regarding what                                                               
they would  need to  get their programs  started; it  was forward                                                               
funded by appropriation by the  legislature.  From that point on,                                                               
what  the hatcheries  get  in  any given  year  is  based on  the                                                               
previous year's  collection, and therefore  there is no  delay in                                                               
receipt of  funds.  He  said, "If we  were to start  this program                                                               
just  the same  way that  the 3  percent enhancement  program was                                                               
started  way back  when,  ... there  should  be an  appropriation                                                               
equal to what the projected costs  of operating would be for next                                                               
year."  He  noted that in 27  years, all the money  that was ever                                                               
collected through  the enhancement program was  appropriated back                                                               
to the hatcheries.                                                                                                              
9:38:33 AM                                                                                                                    
McKIE CAMPBELL,  Commissioner, Alaska  Department of Fish  & Game                                                               
(ADF&G),  offered  to  answer  questions  and  noted  that  other                                                               
members of his staff were also available.                                                                                       
REPRESENTATIVE  HARRIS  asked if  the  language  in the  bill  is                                                               
similar to language in other bills for funding hatcheries.                                                                      
COMMISSIONER CAMPBELL  replied that  he did  not know  the answer                                                               
but would find out and get back to Representative Harris.                                                                       
9:40:16 AM                                                                                                                    
CO-CHAIR THOMAS,  after ascertaining that  no one else  wished to                                                               
testify, closed public testimony on HB 218.                                                                                     
9:40:25 AM                                                                                                                    
CO-CHAIR THOMAS  commented that the Alaska  Department of Revenue                                                               
told him that the legislature can  choose to allocate some of the                                                               
enhancement  tax money  to  Douglas Island  Pink  and Chum,  Inc.                                                               
REPRESENTATIVE WILSON asked why DIPAC  doesn't usually get any of                                                               
the enhancement tax money.                                                                                                      
CO-CHAIR THOMAS replied that this  was because DIPAC is a private                                                               
nonprofit hatchery and not a  regional aquaculture.  He explained                                                               
that the regional aquacultures are  owned by fishermen, while the                                                               
others are not.                                                                                                                 
9:42:13 AM                                                                                                                    
REPRESENTATIVE ELKINS  moved to  report the  committee substitute                                                               
for  HB  218, Version  24-LS0544\Y,  Utermohle,  4/12/05, out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
zero fiscal notes.                                                                                                              
REPRESENTATIVE  HARRIS  objected  for discussion  purposes.    He                                                               
commented  that he  will research  the issues  and deal  with his                                                               
concerns when the  bill is heard by the  House Resources Standing                                                               
Committee.  He then removed his objection.                                                                                      
9:43:11 AM                                                                                                                    
There being  no objection,  CSHB 218(FSH)  was reported  from the                                                               
House Special Committee on Fisheries.                                                                                           

Document Name Date/Time Subjects