Legislature(1995 - 1996)
03/29/1996 08:08 AM Senate FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
SENATE BILL NO. 265
An Act relating to receipts of commercial fisheries
test fishing operations; and providing for an effective
date.
Co-chairman Halford directed that SB 265 be brought on for
discussion. Senator Zharoff explained that he introduced
the bill to enhance Dept. of Fish and Game ability to
successfully manage the changing nature of Alaska's complex
fisheries. It will form part of the management scheme to
utilize private sector vessels, gear, and expertise to
conduct test fisheries. Funds derived from these test
fisheries will accrue as designated program receipts. The
bill does not impact the legislature's ability to
appropriate, but it streamlines the process in conducting
test fisheries. A number of test fisheries have been
proposed, but the department has not, in the past, had the
flexibility nor the resources to follow through. Senator
Zharoff asked that department staff speak to the specifics
of the program.
END: SFC-96, #59, Side 2
BEGIN: SFC-96, #60, Side 1
KEVIN BROOKS, Director, Division of Administrative Services,
Dept. of Fish and Game, came before committee. He explained
that the bill would reclassify approximately $2.2 million in
program receipt authority that would not hereafter roll into
departmental caps.
As background information, Mr. Brooks noted that test
fishery receipts in the current year were part of OMB's
classification as designated program receipts because they
are based on a contractual relationship. Proceeds from the
sale of fish caught during a test fishery are used to pay
for the boat chartered to conduct the fishery. Test
fisheries have the potential to extend seasons or open new
seasons. Attempts to develop the sea urchin fishery in
Southeast was cited as an example. These efforts have been
hampered because the department cannot ask for additional
receipt authority "because it runs up against our caps and
shows as an increase to the general fund." OMB took the
first step in designating these program receipts. The
proposed bill would remove those funds from general fund
calculations. It does not cut dollars, it merely
reclassifies them. The test fishery receipt program has
been part of the department's management program since
before statehood.
Co-chairman Frank requested a comparison of the current flow
of funds versus that contemplated by the proposed bill. Mr.
Brooks explained that the department presently receives
authority, through the legislative process, to receive and
expend approximately $2.2 million in program receipts. That
is in the base budget. Under the proposed bill, receipts
would continue to flow through the general fund to be
requested by the department and appropriated by the
legislature. Moneys in excess of expenditures would flow as
unrestricted revenue to the general fund. The only change
is that the receipts would not roll into department general
fund totals. These moneys would show as other funds.
Senator Rieger referenced AS 37.05.146, which contains a
list of exclusions from what flows through the general fund.
It appears that these receipts are merely being added to the
list.
PAUL LARSON, Deputy Director for Fisheries, Division of
Commercial Fisheries, explained that test fishery funds have
been used to conduct research throughout the state. He
cited use in Prince William Sound to identify pollack
resources which had not previously been harvested because
the department had no information on abundance. Contract
with a local fisherman and sale of pollack caught during the
test generated sufficient funds to assess pollack resources
and conduct a new fishery in Prince William Sound.
Senator Sharp asked if a test fish fund presently exists.
Kevin Brooks explained that the proposed bill would not
establish a separate fund. Test fishery moneys do not
constitute designated funds in the same respect as the fish
and game fund. There is currently a test fishery account.
Discussion of potential for a sea urchin fishery followed.
DEAN PADDOCK, Executive Director, Bristol Bay Driftnetters'
Association, came before committee in support of the bill.
He concurred in comments that the legislation would
streamline department ability to manage.
Mr. Paddock advised that he instituted the first state test
fishery operation in 1960, based on a borrowed idea from the
sockeye commission on the Fraser River. Management
biologists need the information obtained through test
fishing. Commercial fishermen in Bristol Bay greatly depend
on test catches which precede openings. Management of
resources in this area would not be as precise without the
test fishery.
In response to comments concerning the impact of reduced
funding on fishery programs, Senator Sharp stressed that the
budget for the division of commercial fisheries increased in
FY 96 over what it was the previous year. Mr. Paddock
attested to increasing complexities associated with
effective management. Initial program budgets are not
keeping pace with overall demands. Senator Sharp reiterated
that while the division did not receive what it requested,
it received more than the previous year.
Comments followed by Mr. Paddock regarding smolt out-
migration on the Egegik River.
Senator Zharoff noted a request from Co-chairman Frank that
he be allowed a day in which to review the bill. Co-
chairman Halford voiced support for the legislation and
advised that it would be again taken up at the next bill
session.
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