Legislature(1993 - 1994)
05/04/1993 03:10 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 275(FIN) am:
An Act relating to the Alaska Seafood Marketing
Institute and a salmon marketing tax; and providing for
an effective date.
Co-chair Pearce invited Kim Elton, Executive Director,
Alaska Seafood Marketing Institute, to join the committee at
the table and speak to CSHB 275(FIN) am.
KIM ELTON spoke to the sections of CSHB 275(FIN) am.
Senator Kelly asked what changes had been made to the bill
in the Senate version. Mr. Elton said that one of the
changes provided for a separate salmon committee that would
advise the whole board on the salmon marketing program. He
also believed that a change had been made to the salmon
enhancement tax legislation. Senator Kelly asked if a
public member had been reinstated to the board. Mr. Elton
answered affirmatively. Mr. Elton said that United
Fisherman of Alaska (UFA) are interested in amending this
bill to reestablish the salmon marketing subcommittee, and
ASMI board had no objection to that amendment.
REPRESENTATIVE BILL HUDSON, sponsor of HB 275, said that
amendment 1 revised (copy on file) had been forwarded by
UFA. He said that the concept was in the Senate version of
the bill but had been removed when it was in the House. It
would establish the salmon marketing committee with
representation from around the coast to advise the ASMI
board. It would also delete the provision that establishes
the executive board which would still be up to the majority
of the board members who will now consist of 12 fishermen
and 12 processors. He said that he was in support of
amendment 1 revised.
SENATOR JUDITH SALO spoke in favor of amendment 1 revised.
She said that it would make the fishermen in her area much
more comfortable with the bill.
Senator Kelly questioned setting up the executive board.
Representative Hudson said that the amendment would
eliminate the executive board. Senator Kelly said that he
was satisfied with the amendment.
Senator Kerttula MOVED for adoption of amendment 1 revised.
No objections being heard, amendment 1 revised was ADOPTED.
Senator Jacko asked what part of the state would contribute
the majority of the tax money. Mr. Elton said that if it
was evaluated by region, Bristol Bay would contribute the
majority of the tax money.
In answer to Senator Kelly, Representative Hudson said he
had introduced separate legislation providing for a one
percent assessment change. He felt it was not appropriate
to include it in CSHB 275(FIN) because there had not been
adequate time to analyze this assessment.
Senator Jacko MOVED for adoption of amendment 2 (copy on
file). Co-chair Pearce OBJECTED for discussion purposes.
Senator Jacko explained that since the majority of the tax
revenue would be realized from the Bristol Bay area, there
was concern that this area was being asked to pay an
additional tax. This area already is forced to pay a good
amount of municipal and raw fish taxes. He explained that
his amendment would require that the ASMI board would be
comprised of 13 fishermen from the Bristol Bay, Alaska
Peninsula, Bering Sea, or Yukon-Kuskokwim region. One
member of the board would be a lay person selected by the
Governor. He felt that this would insure representation by
this area in the decision making process in regard to where
the tax money is spent. In answer to Co-chair Pearce,
Senator Jacko said the total number of board members would
remain at 25 but representation of the board members would
change.
Representative Hudson voiced his opposition to amending the
language of the bill and requiring all of the commercial
fishing members be from the Bristol Bay, Alaska Peninsula,
Bering Sea, or Yukon-Kuskokwim region. He said this would
mean there would be no fishermen from the balance of the
state of Alaska. Co-chair Pearce asked Senator Jacko's
intent of the amendment. Senator Jacko answered that since
50 percent of the tax money would be received from that area
that 50 percent of the board members should be from the
area.
Representative Hudson said that the purpose of CSHB 275(FIN)
was to provide broad representation throughout the maritime
regions of Alaska on the ASMI board to control not the only
the domestic marketing program but to control all other
aspects of the ASMI program. To only draw from this
specific area to represent the entire coast of Alaska would
be objectionable by fisherman in Cook Inlet, Prince William
Sound, southeast Alaska and other areas. Discussion
followed between Co-chair Pearce and Senator Jacko regarding
other members of the board. It was determined that this
amendment would say that all the fishermen on the board
would have to be from Bristol Bay, Alaska Peninsula, Bering
Sea, or Yukon-Kuskokwim region. Co-chair Pearce said that
she could understand objections to the amendment.
Recess 3:44pm
Reconvene 4:00pm
Co-chair Pearce announced that amendment 2 had been offered.
Senator Kelly OBJECTED to amendment 2. Representative
Hudson said that amendment 2 would break the bill's intent
of having an even-handed approach between the processors and
fishermen. The Governor makes these appointments and to
require all fishermen to come from one region in Alaska
would mean that the rest of the state would not be
represented. He said this amendment would destroy the
merits of this bill. Senator Kelly maintained his
OBJECTION.
JERRY MCCUNE, President, United Fisherman of Alaska, voiced
his opposition to having all 13 fishermen from the Bristol
Bay, Alaska Peninsula, Bering Sea, or Yukon-Kuskokwim region
and asked how the other fishermen from areas such as Copper
River and Kenai would be represented.
Co-chair Frank said that there should be fair representation
from all areas of Alaska. Senator Jacko said that the
experience of most of the fishermen was that UFA was not
that supportive of fishermen from southwestern Alaska. If
this legislation was passed, processors in 1993 would pay
$3.2 million and fishermen at 1% would pay $5 million. The
majority of the $5 million would come from the regions he
indicated in his amendment. Senator Jacko would support the
number of processors reduced on the board in order to make
room for other fishermen from other areas.
Mr. Elton said that over the last 15 years, ASMI has gone to
great lengths to not only include regional representation
but gear type representation as well to insure that large
processors and small operations were included in their
program. He said that this tax could vary from year to
year. ASMI is Alaska Seafood Marketing not just salmon
marketing. He said he understood Senator Jacko's concern
but a balance needed to be maintained for ASMI. He felt
assured that ASMI would listen to all the different
fishermen and regions regarding ASMI's marketing plans.
Mr. McCune said that he would be willing to work with
Senator Jacko regarding this amendment but he maintained his
opposition to having all the fishermen coming from one
region.
Representative Hudson suggested that the words "commercial
fishermen members shall be appointed proportional to the
amount of salmon taxes by region to the extent possible"
added to page 2, line 2. He said that this wording would
provide legislative intent to the Governor in his
appointment process giving consideration to those regions
that pay the highest taxes.
End SFC-93 #72, Side 2
Begin SFC-93 #74, Side 1
Senator Jacko said that he would consider amending his
amendment 2 to include one fisherman from another part of
Alaska.
SENATOR BERT SHARP asked if there was any other tax in
statutes that required fishermen other than the processors
to contribute a salmon tax. Mr. Elton said there had been
discussion about having 1 percent across the board on all
different types of fishing. Mr. Elton said there are some
groups that are in favor of that tax. The biggest problem
facing the seafood market is the salmon market. The
decision was made to see how this tax works in this bill and
then another tax could be added later for other fisheries.
Mr. Elton said that problems in the halibut and king crab
market were being faced but at this time salmon is the main
problem.
Representative Hudson said that ASMI markets its products
worldwide and millions of federal dollars have been used to
try and enhance the marketplace of Alaskan products. This
money can only be used for overseas marketing. Mr. Elton
said that $8.5 million of federal dollars were spent this
year, partially matched by the state. Representative Hudson
said that one part of salmon marketing that has been missing
for years is the fresh and frozen salmon. This present
challenge is to increase the consumption of Alaska salmon in
the domestic market. Alaska is not alone in its efforts to
look to the domestic market. Japan, Chile, the Norwegians,
New Zealanders, etc. are all looking at the U.S. domestic
market. If this legislation would pass, ASMI should be able
to bring the fishermen and processors together, moving them
into the domestic market with more knowledge. He wanted to
emphasize that the goal of increasing the domestic market
for all fishermen and processors must not be lost in side
issues. He asked the committee to consider the wording he
had suggested for amending the bill.
Recess 4:15pm
Reconvene 4:50pm
Co-chair Pearce announced that amendment 2 was still before
the committee. Senator Kelly maintained his objection. Co-
chair Pearce called for a show of hands and amendment 2
FAILED on a vote of 6 to 1. Co-chairs Pearce and Frank,
Senators Rieger, Sharp, Kerttula, and Kelly opposed the
amendment. Senator Jacko voted in support of amendment 2.
Senator Jacko MOVED for adoption of amendment 3 (copy on
file). Senator Kelly OBJECTED. Senator Kelly said he was
opposed to the word majority in the amendment. Co-chair
Frank said that this amendment would assure that there would
be proportional representation on the board. Senator Kelly
said that he was not sure that "majority" was proportional.
Co-chair Frank said that it was not the number of fishermen
but it should be proportionally based upon the value of the
product. Senator Kelly maintained his objection to
amendment 3. Co-chair Pearce called for a show of hands and
amendment 3 passed on a vote of 4 to 3. Co-chairs Frank and
Pearce, Senators Jacko, and Sharp voted in support of
amendment 3. Senators Kerttula, Rieger and Kelly were
opposed.
DEAN PADDOCK, Bristol Bay Driftnetters Association, spoke in
support of the original bill, HB 275. His association
believed that Alaska was in desperate need of a domestic
marketing program. He voiced his opposition to amendment 3
and would have preferred the wording as submitted by
Representative Hudson. He said that getting Alaskan
fishermen to work together was a difficult thing to
accomplish. He feared that amendment 3 would polarize the
fishermen and the processors. He reiterated that everyone
needed to work together. He said that after attending
meetings of the ASMI board and after contact with them, he
had never had any problems. He hoped that this legislation
would work for the good of all.
Senator Kerttula MOVED for passage of SCSCSHB 275(FIN) as
amended with individual recommendations and a fiscal note
for the Department of Commerce & Economic Development for
$5,640.3 and a fiscal note for Department of Revenue for
$109.7 with revenue of $5,750. Senator Jacko OBJECTED. Co-
chair Pearce called for show of hands and SCSCSHB 275(FIN)
as amended was REPORTED OUT of committee with the
accompanying fiscal notes on a vote of 4 to 3. Co-chairs
Frank and Pearce signed "do pass." Senators Sharp,
Kerttula, Rieger, Kelly, and Jacko signed "no
recommendation."
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