05/03/2006 09:00 AM Senate FINANCE

10:22:54 AM                                                                                                                   
                                                                                                                                
AT EASE to 10:24:26 AM                                                                                                        
                                                                                                                                
                                                                                                                                
     SENATE CS FOR CS FOR HOUSE BILL NO. 218(RES)                                                                               
     "An Act relating to cost recovery fisheries for private                                                                    
     nonprofit hatchery facilities."                                                                                            
                                                                                                                                
                                                                                                                                
This was the  second hearing for this bill in  the Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
IAN FISK,  Staff to  Representative Bill  Thomas, noted  the bill                                                               
was  heard in  this Committee  then returned  to the  Senate body                                                               
with a recommendation for a  Senate Resources Committee referral.                                                               
That Committee  held hearings and  amended the bill.  The changes                                                               
improved the  language and the  sponsor maintains his  support of                                                               
the legislation.                                                                                                                
                                                                                                                                
Mr. Fisk testified  that hatcheries contract with  a small number                                                               
of fishing  vessels to  harvest salmon returning  to the  site of                                                               
the hatchery. The revenue generated  from these contracts is used                                                               
to offset  maintenance and  operation expenses.  This legislation                                                               
would provide an alternative that  would allow all permit holders                                                               
in the area  access to this resource with 50  percent of the sale                                                               
of these fish paid to  the hatcheries. The hatchery program would                                                               
remain financially user-supported.                                                                                              
                                                                                                                                
10:26:36 AM                                                                                                                   
                                                                                                                                
[Note Amendment #1 was not distributed]                                                                                         
                                                                                                                                
Amendment #2:  This amendment deletes "annually"  and inserts "by                                                               
a  majority  vote  of  the  membership  of  the  hatchery  permit                                                               
holder's  board," to  subsection (b)  of Sec  16.10.455. Cost  of                                                               
recovery  fisheries.,  added  in   Section  1  of  the  committee                                                               
substitute  on page  1, line  11. The  amended language  reads as                                                               
follows.                                                                                                                        
                                                                                                                                
          (b) A hatchery permit holder may by a majority vote of                                                                
     the membership of the hatchery  permit holder's board, elect                                                               
     to  harvest  surplus salmon  produced  at  a facility  in  a                                                               
     terminal harvest area established  for that facility through                                                               
     the common property fishery. …                                                                                             
                                                                                                                                
This  amendment   also  inserts  language  following   "area"  in                                                               
subsection (b) on page 2, line 7 to read as follows.                                                                            
                                                                                                                                
     Following adoption  of regulations  by the  department, each                                                               
     year before March 1, the  hatchery permit holder's board, by                                                               
     a  majority vote  of the  board's membership,  may determine                                                               
     whether  the hatchery  will  operate  under the  regulations                                                               
     adopted under  this subsection  during the  current calendar                                                               
     year,  and  shall  notify the  department  if  the  hatchery                                                               
     intends to operate under the  regulations adopted under this                                                               
     subsection.                                                                                                                
                                                                                                                                
Senator Stedman  moved for  adoption and  objected to  provide an                                                               
explanation.                                                                                                                    
                                                                                                                                
Senator Stedman  stated this amendment clarifies  that a majority                                                               
vote of the  hatchery permit holder's board would  be required to                                                               
implement this option.                                                                                                          
                                                                                                                                
Senator Stedman  pointed out that this  cost recovery methodology                                                               
is  significantly different  than the  current funding  mechanism                                                               
for the  hatcheries and has  different risks associated  with it.                                                               
The provisions of this amendment  would ensure that the board had                                                               
considered these risks and the anticipated recovery.                                                                            
                                                                                                                                
Senator  Stedman removed  his objection  to the  adoption of  the                                                               
amendment.                                                                                                                      
                                                                                                                                
There being no further objection the amendment was ADOPTED.                                                                     
                                                                                                                                
10:29:17 AM                                                                                                                   
                                                                                                                                
PETER  ESQUIRO,  General  Manager,  Northern  Southeast  Regional                                                               
Aquaculture Association, testified  via teleconference from Sitka                                                               
in  appreciation   of  the  adoption  of   the  amendment,  which                                                               
addresses  concerns  of the  Association.  He  informed that  the                                                               
Association meetings normally are held  within the first ten days                                                               
of  each  March  in  accordance  with the  bylaws.  The  March  1                                                               
deadline to select  this option would require the  board to reach                                                               
a  decision  before  the  meetings. He  requested  that  date  be                                                               
changed to March 10.                                                                                                            
                                                                                                                                
10:30:59 AM                                                                                                                   
                                                                                                                                
Amendment #3:  This conceptual amendment changes  the deadline in                                                               
which a  determination must be  made regarding this  program from                                                               
March 1, as stipulated in Amendment #1, to March 10.                                                                            
                                                                                                                                
Senator Stedman moved for adoption.                                                                                             
                                                                                                                                
The amendment was ADOPTED without objection.                                                                                    
                                                                                                                                
10:31:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Wilken  offered a motion  to report SCS CS  HB 218(RES),                                                               
as amended,  from Committee  with individual  recommendations and                                                               
new fiscal notes.                                                                                                               
                                                                                                                                
There was  no objection and  SCS CS HB  218 (FIN) was  MOVED from                                                               
Committee  with   zero  fiscal  notes  from   the  Department  of                                                               
Commerce, Community  and Economic  Development dated  4/3/06, the                                                               
Department of Fish  and Game dated 4/4/06, and  the Department of                                                               
Public Safety dated 4/6/06 and  an indeterminate fiscal note from                                                               
the Department of Revenue dated 4/4/06.