Legislature(1999 - 2000)
04/14/2000 06:22 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
SENATE COMMITTEE SUBSTITUTE FOR COMMITTEE SUBSTITUTE
FOR HOUSE BILL NO. 363(L&C)
"An Act relating to salmon product reports and to the
sale of fish; and providing for an effective date."
This was the first hearing for this bill in the Senate
Finance Committee.
REPRESENTATIVE ALAN AUSTERMAN told the Committee the bill
was introduced on behalf of salmon harvesters initially as
an update of current statutes regarding canned and thermal
salmon. He stated that the legislation also adds several
other products currently handled by the salmon industry. He
said the canned salmon reports addressed in the bill have
existed since before statehood.
Representative Austerman continued that the bill adds fresh
and frozen headed and gutted salmon products, fresh and
frozen fillets and salmon roe to the reporting
requirements. It also adds a requirement for salmon
processor to report production areas.
Representative Austerman shared that the bill has been
revised a number of times since its introduction. He
pointed out that original statute requires any processor
producing more than 1000 pounds of canned or thermal
product to submit this report. An amendment to the bill, he
said raises that amount to one million pounds.
Senator Wilken wanted to know if the reports records the
wholesale number of cans produced after the business tax is
incurred. He asked what purpose the reports serve.
Representative Austerman surmised that the original intent
was to provide wholesale price information to the state and
any other interested parties.
Co-Chair Torgerson asked if these reports are confidential.
Representative Austerman affirmed and explained that more
than three processors must be operating in a particular
area before the reports on that area could be released to
the public.
TOM WISCHER, Kodiak area fisherman and Member, United
Salmon Association, testified via teleconference from
Kodiak that the bill fills a gap, eases mistrust between
fishermen and processors, and would give good business
information to fisherman across the state.
VIRGINA ADAMS, Commercial Salmon Fisherman out of Kodiak,
testified via teleconference from Kodiak.
Tape: SFC - 00 #90, Side B 8:50 PM
Ms. Adams continued recounting the efforts to obtain
accurate accounting information on the status of the salmon
industry. She approved on the one million-pound requirement
saying it protects smaller processors.
HERB JENSEN, representing, United Salmon Association,
Cordova District Fishermen United, Copper River Salmon
Producers, testified via teleconference from Cordova in
favor of the bill and what it would provide to the state.
STEPHANIE MADSEN, Vice-President, Pacific Seafood
Processors Association, testified via teleconference from
Anchorage that the association opposed the bill saying it
was not just revision of the report but a significant
expansion of the report. She detailed the additional pages
required.
She requested the frequency of the reports be reduced from
three times annually to two, if the bill passes.
SCOTT MCALLISTER, salmon seining fisherman, Member, United
Salmon Association, United Fisherman of Alaska, Southeast
Seiners Association testified in Juneau about the efforts
behind this bill to improve reporting procedures.
He answered Senator Wilken's question regarding the
relationship between harvesters and processors, saying
there is a relationship that shares the risks and results.
Senator Phillips asked where was the sunset provision in
the bill.
CHRIS NORRIS, Icicle Seafoods in Ketchikan and Norton
Sound, testified in Juneau that she believed the bill is an
intrusion and serves no purpose to private business.
Senator Wilken understood that this bill would increase
reporting requirements by a factor of five to give better
information, after the product has been sold and delivered,
in order to return some of that revenue to the fishermen
according to a pre-agreed upon arrangement.
Ms. Norris gave her understanding of the reason for the
report was to foster the idea that if fishermen have a
better idea of the salmon market and prices paid, they
would have a better leverage to negotiate prices. She noted
that her company and fleet were not involved in the 1997
strike. She believed the reporting system originated out of
frustration of fishermen. She stressed it is unfair to
paint the whole processing industry negatively.
BRET FREID, Economist, Department of Revenue testified
about the sunset clause currently in the statute. He
explained that a previous version of the bill repealed the
sunset, but that the repeal has been removed in the current
committee substitute.
Mr. Freid stated that the department does not have a
position on the collection of data because there is no
direct link with taxation. He shared that the salmon is
taxed at the price paid to the fisherman not the wholesale
value or the profits.
Mr. Freid qualified that the department could do a good job
preparing the reports and meeting the requirements of the
bill. He spoke to the fiscal note that shows the need for
three-quarters of one position to operate the program at a
total operating cost of $38,000 for the first year with an
additional $20,000 in capital funds to set up a database.
Co-Chair Torgerson asked that if the Department of Revenue
does not oversee this program, what other agency could hold
confidential information.
Mr. Freid suggested the Department of Fish and Game.
Co-Chair Torgerson commented that this is a good report and
that if the legislation passes, the matter of which
department has oversight could be revisited.
Amendment #1: This amendment makes the following change to
page 5, lines 23 and 24 of the committee substitute.
Delete
"September 30, 2000, must cover the period of May
1, 2000, through August 21, 2000"
Insert
"January 31, 2001, must cover the period of
September 1, 2000, through December 31, 2000"
The amended language reads as follows.
TRANSITION. The first report required by AS
43.80.050, as amended by secs. 3 - 5 of this act, is
due January 31, 2001, must cover the period of
September 1, 2000, through December 31, 2000, and must
be filed by a fish processor whose business sold more
than 1,000,000 pounds of salmon products at first
wholesale during the 12-month period ending August 31,
2000.
Senator Leman moved for adoption and explained that the
implementation of the program would be delayed by one
reporting period so the department would have an
opportunity to set up a database. He spoke with interested
parties and found concurrence from all sides of the issue.
Representative Austerman approved of the amendment saying
the delay is better for both the processors and the
department.
There was no objection and the amendment was ADOPTED.
Senator Wilken asked if the portion of the report protected
as confidential is the final average wholesale price report
recipient.
Mr. Freid corrected that the identification of a specific
processor, the wholesale price and the total pounds of
salmon should not be identifiable. He stated that only the
summary of all information is published.
Senator Leman relayed a suggestion he made when the bill
was heard in the Senate Labor and Commerce Committee that
electronic filing would be more efficient and cost-
effective. He noted that while the initial set-up cost
would be higher, the long-term costs would be lower for
both the department and the processors.
Senator Leman offered a motion to report from Committee,
SCS CS HB 363 (L&C) as amended with $38,400 fiscal note
from the Department of Revenue.
The bill was MOVED from Committee.
ADJOURNED
Senator Torgerson adjourned the meeting at 9:15 PM.
SFC-00 (1) 04/14/00
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