Legislature(2017 - 2018)SENATE FINANCE 532

04/03/2018 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Scheduled but Not Heard
<Pending Referral>
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
Heard & Held
Heard & Held
Moved SB 198 Out of Committee
HOUSE BILL NO. 128                                                                                                            
     "An Act  relating to management  of enhanced  stocks of                                                                    
     shellfish; authorizing  certain nonprofit organizations                                                                    
     to engage  in shellfish enhancement  projects; relating                                                                    
     to application  fees for  salmon hatchery  permits; and                                                                    
     providing for an effective date."                                                                                          
2:40:23 PM                                                                                                                    
REPRESENTATIVE DAN ORTIZ, SPONSOR introduced himself.                                                                           
2:40:31 PM                                                                                                                    
MARY HAKALA, STAFF, REPRESENTATIVE DAN ORTIZ, introduced                                                                        
the bill.                                                                                                                       
Representative Ortiz read from a prepared statement:                                                                            
     Madam  Chair,  Members  of  Senate  Finance  Committee,                                                                    
     thank  you for  hearing HB  128 dealing  with Shellfish                                                                    
     Enhancement Projects.                                                                                                      
     I'd like  to thank Senator  Stevens for his work  on SB
     89, the Senate companion to this bill.                                                                                     
     With over  30,000 miles of coastline,  pristine waters,                                                                    
     talented  entrepreneurs, and  marketing infrastructure,                                                                    
     Alaska  has  tremendous   untapped  potential  to  grow                                                                    
     mariculture in the State.                                                                                                  
     Very briefly,  HB128 allows  non-profits to  apply for,                                                                    
     and   pursue   enhancement  or   restoration   projects                                                                    
     involving shellfish, with species  ranging from red and                                                                    
     blue king  crab, sea cucumber, abalone,  geoduck, razor                                                                    
     clams, and more.                                                                                                           
     HB128  creates  the  regulatory  framework  needed  for                                                                    
     management of shellfish enhancement projects.                                                                              
     The bill allows research to  continue on a larger scale                                                                    
        that can  make  a difference  in rehabilitation  and                                                                    
     restoration efforts.                                                                                                       
     HB 128  sets out  stringent safety standards  to ensure                                                                    
     sustainability and health of existing wild stocks.                                                                         
     Shellfish produced  under an enhancement  permit become                                                                    
     a common  property resource   available  for common use                                                                    
     - when returned to the wild.                                                                                               
     The  bill provides  for  cost  recovery and  designated                                                                    
     harvest  areas  under  guidelines  established  by  the                                                                    
     Administrative  procedures  parallel those  for  salmon                                                                    
     enhancement   projects,  providing   efficiencies  that                                                                    
     minimize administrative costs to the state.                                                                                
     In  summary,  HB128  establishes a  sound,  sustainable                                                                    
     approach to developing  the State's shellfish resources                                                                    
     and mariculture industry.                                                                                                  
2:42:38 PM                                                                                                                    
AT EASE                                                                                                                         
2:43:11 PM                                                                                                                    
2:44:19 PM                                                                                                                    
JULIE  DECKER, CHAIR,  MARICULTURE TASK  FORCE, stated  that                                                                    
the bill  was one  of the top  priorities necessary  to move                                                                    
the  industry  forward.  She  felt that  it  would  allow  a                                                                    
framework to  continue to make  progress with  the shellfish                                                                    
enhancement programs,  including the king crab  project. She                                                                    
stated that the people involved  in that project was waiting                                                                    
for   the  legislation,   because  the   industry  was   not                                                                    
interested  in further  investment  until there  was a  path                                                                    
forward to address the issue on a large scale.                                                                                  
2:45:04 PM                                                                                                                    
SAM RABUNG,  DEPARTMENT OF FISH and  GAME, expressed support                                                                    
of  the   bill.  The  legislation  was   modeled  after  the                                                                    
Department of Fish and Game  (DFG) after the existing salmon                                                                    
fishery enhancement  statutes that  had been in  place since                                                                    
the mid-1970s.                                                                                                                  
2:45:54 PM                                                                                                                    
JINNY ECKERT,  PROFESSOR, UNIVERSITY OF ALASKA,  JUNEAU (via                                                                    
teleconference),  stated that  she was  a shellfish  expert,                                                                    
and  was currently  teaching a  course  in aquaculture.  She                                                                    
spoke in  support of the  bill, and was available  to answer                                                                    
questions. She spoke  to the need of  rehabilitation of kind                                                                    
crab in Alaska.  She stressed that many king  crab stocks in                                                                    
the  Gulf  of  Alaska  crashed  in the  1980x,  ad  had  not                                                                    
recovered since  that time.  She remarked  that most  of the                                                                    
fisheries  closed, and  overfishing  had  likely caused  the                                                                    
2:48:58 PM                                                                                                                    
JEFF HETRICH, SEWARD SHELLFISH  HATCHERY, announced the dire                                                                    
status of  the shellfish  stocks in  Alaska. He  stated that                                                                    
there was  no king  crab fishery in  almost forty  years. He                                                                    
shared that private shellfish hatcheries  spent the prior 15                                                                    
years  developing  a technology  to  raise  the animals.  He                                                                    
shared  that he  raised  sea cucumbers;  blue  and red  king                                                                    
crab; clams; and  scallops. He remarked that  there was work                                                                    
to stock the animals with experimental research permits.                                                                        
Co-Chair  MacKinnon stated  that Senator  Stevens had  asked                                                                    
that the  advancement of  the bill be  held until  the House                                                                    
members could bring their bills before the committee.                                                                           
2:51:56 PM                                                                                                                    
LARRY  COTTER,  CEO,   ALEUTIAN  PRIBOLOF  ISLAND  COMMUNITY                                                                    
DEVELOPMENT   ASSOCIATION,  echoed   the  comments   of  the                                                                    
previous testifiers. He felt that  both bills were important                                                                    
to  provide  the  opportunity  to   move  forward  with  the                                                                    
development of  a new future  for Alaska that he  felt would                                                                    
be very meaningful.                                                                                                             
2:54:40 PM                                                                                                                    
Ms. Hakala discussed the Sectional Analysis (copy on file):                                                                     
     Sec 1.                                                                                                                     
     Provides  the Alaska  Board of  Fisheries authority  to                                                                    
     direct the department to  manage production of enhanced                                                                    
     shellfish stocks,  beyond brood  stock needs,  for cost                                                                    
     recovery harvest.                                                                                                          
     Sec. 2                                                                                                                     
     Increases the  permit application  fee for  new private                                                                    
     nonprofit salmon hatcheries from $100 to $1,000.                                                                           
     Sec. 3                                                                                                                     
     Adds a  new Chapter  12 to  Title 16,  "Shellfish Stock                                                                    
     Enhancement  Projects".   Provides  direction   to  the                                                                    
     commissioner  of the  Department  of Fish  and Game  on                                                                    
     issuance  of permits  for  private nonprofit  shellfish                                                                    
     fishery enhancement  projects and establishes  a $1,000                                                                    
     permit  application  fee.   This  section  directs  the                                                                    
     commissioner to  consult with technical experts  in the                                                                    
     relevant  areas before  permit  issuance. This  section                                                                    
     provides for  a hearing prior  to issuance of  a permit                                                                    
     and  describes  certain  permit  terms  including  cost                                                                    
     recovery  fisheries,  harvest,  sale,  and  release  of                                                                    
     enhancement  project-produced shellfish,  and selection                                                                    
     of   brood  stock   sources.  This   section  describes                                                                    
     reporting  requirements and  terms for  modification or                                                                    
     revocation  of a  permit. It  specifies that  shellfish                                                                    
     produced under  an approved  enhancement project  are a                                                                    
     common  property resource,  with provision  for special                                                                    
     harvest areas by permit holders.                                                                                           
     Sec. 4                                                                                                                     
     Provides   Commercial    Fisheries   Entry   Commission                                                                    
     authority to  issue special harvest area  entry permits                                                                    
     to    holders    of   private    nonprofit    shellfish                                                                    
     rehabilitation, or enhancement project permits.                                                                            
     Sec. 5                                                                                                                     
     Defines  legal fishing  gear for  special harvest  area                                                                    
     entry permit holders.                                                                                                      
     Sec. 6                                                                                                                     
     Exempts  shellfish   raised  in  a   private  nonprofit                                                                    
    shellfish project from the farmed fish definition.                                                                          
     Sec 7 and 8                                                                                                                
     Establish state  corporate income  tax exemption  for a                                                                    
     nonprofit  corporation  holding   a  shellfish  fishery                                                                    
     enhancement permit.                                                                                                        
     Sec. 9                                                                                                                     
     Exempts  shellfish harvested  under  a special  harvest                                                                    
     area entry permit from seafood development taxes.                                                                          
     Sec. 10                                                                                                                    
     Establishes an  effective date for the  salmon hatchery                                                                    
     permit application fee described in sec. 2.                                                                                
     Sec. 11                                                                                                                    
     Authorizes  the Department  of Fish  and Game  to adopt                                                                    
     implementing regulations.                                                                                                  
     Sec. 12                                                                                                                    
     Establishes  an immediate  effective date  for sec.  11                                                                    
     pursuant to AS 01.10.070(c).                                                                                               
     Sec. 13                                                                                                                    
     Establishes an  effective date  for sec.  8 concomitant                                                                    
     with sec. 2, Chapter 55, SLA 2013.                                                                                         
Co-Chair MacKinnon stated that the committee would consider                                                                     
the updated fiscal note at a later date.                                                                                        
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
HB 128 was HEARD and HELD in committee for further                                                                              
2:58:38 PM                                                                                                                    
AT EASE                                                                                                                         
3:05:54 PM                                                                                                                    

Document Name Date/Time Subjects
HB 76 Sponsor Statement 01.26.17.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 76 Support Letters and Resolutions.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 76 Support Silver Bay Seafoods.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
SBS_HB_76_LOS_FINAL.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB128 Letters of Support.pdf SFIN 4/3/2018 1:30:00 PM
HB 128
HB128 Letters To Amend Oppose.pdf SFIN 4/3/2018 1:30:00 PM
HB 128
HB128 Sponsor Statement.pdf SFIN 4/3/2018 1:30:00 PM
HB 128
HB 128 Support Silver Bay Seafoods.pdf SFIN 4/3/2018 1:30:00 PM
HB 128
HB128 Sectional Analysis.pdf SFIN 4/3/2018 1:30:00 PM
HB 128
SB 142 Capital Budget and Economic Recovery Overview (Senate Finance).pdf SFIN 4/3/2018 1:30:00 PM
SB 142
SB 142 Capital Budget and Economic Recovery Overview (Senate Finance).pdf SFIN 4/3/2018 1:30:00 PM
SB 142
HB 76 CSHB76 Sectional Analysis.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 76 Alaska Mariculture Development Plan v2018-03-23 - EXCERPT.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 76 MTF Letter of Support HB 76 and HB 128 2018-03-30.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 128
HB 76 MTF Letter - HB 76 questions 2018-04-16.pdf SFIN 4/3/2018 1:30:00 PM
HB 76
HB 76 follow up S FIN (DED).pdf SFIN 4/3/2018 1:30:00 PM
HB 76