Legislature(2019 - 2020)SENATE FINANCE 532

03/24/2020 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Scheduled but Not Heard
Uniform Rule 23 Waived
**Please Note: All Public Testimony Will be via
Telephone Only. No In-Person Testimony.
From Juneau: 586-9085, Anchorage: 563-9085
Outside Juneau or Anchorage: 844-586-9085
Written Testimony Will be Accepted at:
+ Bills Previously Heard/Scheduled: TELECONFERENCED
Heard & Held
Moved HB 197 Out of Committee
CS FOR HOUSE BILL NO. 41(FIN)                                                                                                 
     "An Act  relating to management  of enhanced  stocks of                                                                    
     shellfish; authorizing  certain nonprofit organizations                                                                    
     to   engage   in    shellfish   enhancement   projects;                                                                    
     authorizing the Department of Fish  and Game to collect                                                                    
     fee   revenue  from   applicants  for   certain  salmon                                                                    
     hatchery  permits  and  from applicants  for  shellfish                                                                    
     enhancement  project permits;  relating to  application                                                                    
     fees for salmon hatchery  permits; and providing for an                                                                    
     effective date."                                                                                                           
9:36:04 AM                                                                                                                    
Co-Chair Stedman recalled that the first bill hearing and                                                                       
public testimony had been on February 2, 2020. He invited                                                                       
the sponsor to the table.                                                                                                       
REPRESENTATIVE DAN  ORTIZ, SPONSOR,  discussed the  bill. He                                                                    
reminded that  the bill  was an  enhancement of  the state's                                                                    
shellfish industry.  He read from a  Sponsor Statement (copy                                                                    
on file):                                                                                                                       
     Enhancement  of Alaska's  shellfish industry  holds the                                                                    
     potential   of  expanded   economic  opportunities   in                                                                    
     Alaska's coastal  communities and  increased resilience                                                                    
     of the State's fisheries portfolio.                                                                                        
     To tap  this potential  House Bill 41  allows qualified                                                                    
     non-profits  to pursue  enhancement and/or  restoration                                                                    
     projects involving shellfish  species including red and                                                                    
     blue  king  crab,  sea  cucumber,  abalone,  and  razor                                                                    
     The bill creates a regulatory  framework with which the                                                                    
     Department  of   Fish  &  Game  can   manage  shellfish                                                                    
     enhancement   projects   and  outlines   criteria   for                                                                    
     issuance  of  permits.  It sets  out  stringent  safety                                                                    
     standards  to  ensure   sustainability  and  health  of                                                                    
     existing  natural  stocks.  The commissioner  of  ADF&G                                                                    
     must also  make a  determination of  substantial public                                                                    
     benefit before a project can proceed.                                                                                      
     In addition, the  bill allows the Department  of Fish &                                                                    
     Game  to  set  the  application  fee  for  a  shellfish                                                                    
     enhancement  project  permit  and  grants  the  similar                                                                    
     authority  over  the  application   fee  for  a  salmon                                                                    
     enhancement project permit.                                                                                                
     House  Bill   41  plays  an   important  role   in  the                                                                    
     development  of mariculture  in Alaska  by providing  a                                                                    
     method to  increase the available harvest  of shellfish                                                                    
     for  public   use  in   an  environmentally   safe  and                                                                    
     responsible manner.                                                                                                        
Co-Chair Stedman relayed that there was a Committee                                                                             
Substitute (CS) for the committee to consider.                                                                                  
9:38:46 AM                                                                                                                    
AT EASE                                                                                                                         
9:38:49 AM                                                                                                                    
Senator   Hoffman   MOVED   to  ADOPT   proposed   committee                                                                    
substitute   for  CSHB   41(FIN),  Work   Draft  31-LS0218\O                                                                    
(Bullard, 11/19/19).                                                                                                            
Co-Chair Stedman OBJECTED for discussion.                                                                                       
DAVID  SCOTT,  STAFF,  SENATOR  BERT  STEDMAN,  discussed  a                                                                    
document entitled  "Abridged Sectional"  (copy on  file). He                                                                    
highlighted changes in the CS.  Section 7 through Section 10                                                                    
of  the  bill  would  allow  the  Alaska  Seafood  Marketing                                                                    
Institute (ASMI)  to market  aquatic farm  products. Section                                                                    
13  dealt  with an  annual  report  from the  Department  of                                                                    
Natural  Resources (DNR)  to  the  legislature dealing  with                                                                    
aquatic farm leases and the  lease status. He continued that                                                                    
Section 14  through Section 17  dealt with lease  renewal in                                                                    
DNR. The  sections had  been brought  to the  legislature by                                                                    
DNR the previous year and  were the subject of another bill,                                                                    
HB 116.  He noted  that Section  17 allowed  for eco-tourism                                                                    
and education on aquatic farming permits.                                                                                       
Mr. Scott continued to address  changes to the bill outlined                                                                    
in the Abridged Sectional  document. He relayed that Section                                                                    
17 also had a clause that  allowed a one-year time limit for                                                                    
DNR to grant or deny  a lease application. He explained that                                                                    
the  department had  expressed concerns  with the  provision                                                                    
and  there would  be a  forthcoming conceptual  amendment to                                                                    
address  the matter  if it  was the  will of  the committee.                                                                    
Section 21  was in uncodified  law and asked for  a one-time                                                                    
report from DNR and the Department  of Fish and Game to give                                                                    
recommendations   on  how   to  streamline   the  permitting                                                                    
9:41:56 AM                                                                                                                    
Senator Wielechowski asked for  a definition of aquatic farm                                                                    
Mr.  Scott read  that the  definition could  be found  in AS                                                                    
     2) "aquatic farm product" means an aquatic plant or                                                                        
     shellfish, or part of an aquatic plant or shellfish,                                                                       
     that is propagated, farmed, or cultivated in an                                                                            
     aquatic farm and sold or offered for sale;                                                                                 
Senator  Wielechowski wanted  to  ensure that  the bill  had                                                                    
nothing to do with farming salmon.                                                                                              
Mr.  Scott stated  that the  bill did  not address  fin-fish                                                                    
farming,  which was  still prohibited  in Alaska  as per  AS                                                                    
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION,  the CS for  CSHB 41(FIN), Version  O was                                                                    
Co-Chair Stedman  reminded that the committee  would set the                                                                    
bill aside to  address any questions members  might have and                                                                    
consider any forthcoming amendments.                                                                                            
9:44:25 AM                                                                                                                    
Mr. Scott reviewed the Sectional Analysis (copy on file):                                                                       
     Section 1 The Board of Fish may direct the department                                                                      
     to manage enhanced shellfish stocks for cost recovery                                                                      
     Section 2 Hatchery permit application fee change.                                                                          
     Section 3 Conforms with Sec. 2. Hatchery permit                                                                            
     application  fee will  be set  by  regulation equal  to                                                                    
     regulatory costs. Fee level will be annually reviewed.                                                                     
     Section 4 Adds a new Chapter to Title 16                                                                                   
          ?  AS 16.12.010  Commissioner of  ADF&G may  issue                                                                    
          permits for nonprofit  corporation for a shellfish                                                                    
          enhancement  project. Section  includes permitting                                                                    
          process, rules, and fees.                                                                                             
          ?  AS 16.12.020  Prior to  permit approval,  there                                                                    
          will  be public  notification,  a public  hearing,                                                                    
          and comment period.                                                                                                   
          ? AS 16.12.030 Requirements on permit holders.                                                                        
          ? AS  16.12.040 Permit revocation,  suspension, or                                                                    
          ?  AS  16.12.050  Enhanced  shellfish  stocks  are                                                                    
          common property. Board of Fish may regulate.                                                                          
          ?  AS  16.12.060  ADF&G shall  advise  and  assist                                                                    
          applicants and permit holders  to a reasonable and                                                                    
          appropriate extent.                                                                                                   
          ?  AS 16.12.070  ADF&G  shall  approve source  and                                                                    
          number of shellfish taken for brood stock.                                                                            
          ?  AS  16.12.080  Limits  proceeds  from  sale  of                                                                    
          shellfish    to    operating   costs,    shellfish                                                                    
          enhancement projects, and shellfish research                                                                          
          ?  AS   16.12.090  Cost  recovery   fisheries  via                                                                    
          contract or common property fishery.                                                                                  
          ? AS 16.12.100 ADF&G  can inspect project facility                                                                    
          at any time.                                                                                                          
          ? AS 16.12.110 Annual Report                                                                                          
          ? AS 16.12.199 Definitions                                                                                            
Mr. Scott continued to address the Sectional Analysis:                                                                          
     Section 5 CFEC may issue special harvest area entry                                                                        
     permits to AS 16.12 permit holders.                                                                                        
     Section 6 Fishing gear used in a special harvest area                                                                      
     must be authorized by the Board of Fish.                                                                                   
     Section 7 Allows aquatic farm products to be marketed                                                                      
     by ASMI.                                                                                                                   
Senator Hoffman  asked about  funding for  marketing aquatic                                                                    
farm products. He noted that  fishermen taxed themselves and                                                                    
gave  funds to  ASMI for  marketing fish.  He asked  how the                                                                    
marketing  promotions  of  aquatic farm  products  would  be                                                                    
Mr. Scott  stated that the  topic had come up  in discussion                                                                    
with ASMI. He furthered that  ASMI believed there would need                                                                    
to be a self-assessment related  to the new permits proposed                                                                    
in the bill.                                                                                                                    
Co-Chair Stedman  asked to continue  going through  the bill                                                                    
before hearing from ASMI and considering an amendment.                                                                          
9:50:31 AM                                                                                                                    
Mr. Scott continued to address the Sectional Analysis:                                                                          
     Section 8 Conforms to Section 7.                                                                                           
     Section 9 Conforms to Section 7.                                                                                           
     Section  10  Adds  aquatic   farm  products  to  ASMI's                                                                    
     Section 11  Exempts shellfish raised  under a  AS 16.12                                                                    
     permit from the farmed fish food labeling requirement.                                                                     
     Section 12 Adds hatchery permit  fees & AS 16.12 permit                                                                    
     fees to list of Program Receipts.                                                                                          
     Section  13 DNR  Annual  report to  the legislature  on                                                                    
     aquatic  farming lease  status  and lease  applications                                                                    
     under AS 38.05.083.                                                                                                        
     Section 14  Adds AS 38.05.083  leases to  eligible list                                                                    
     of leases that the Director  of the Division of Mining,                                                                    
     Land, & Water may renew.                                                                                                   
     Section 15 Conforms to Section 14.                                                                                         
     Section 16 Conforms to Section 14.                                                                                         
     Section  17  Allows Commissioner  of  DNR  to renew  or                                                                    
     extend AS  38.05.083 leases. Establishes a  1-year time                                                                    
     limit to grant or  deny a lease application. Ecotourism                                                                    
     and educational uses are  not prohibited. Prohibits DNR                                                                    
     from  charging  additional  use  fees  other  than  the                                                                    
     permit fee.                                                                                                                
     Section 18 Nonprofit Income Tax  exemption for AS 16.12                                                                    
     permit holders.                                                                                                            
Mr. Scott spoke  to Section 17 and explained  that there was                                                                    
a number  of aquatic farmers  in Southeast Alaska  that were                                                                    
finding interest from tourism.  He furthered that the Alaska                                                                    
Sea  Grant program  was interested  in bringing  high school                                                                    
and college  students to aquatic  farm sites, which  was not                                                                    
currently  allowed. Another  provision in  Section 17  would                                                                    
prohibit DNR from charging additional use fees.                                                                                 
9:54:49 AM                                                                                                                    
Mr. Scott continued to address the Sectional Analysis:                                                                          
     Section 18 Nonprofit Income Tax  exemption for AS 16.12                                                                    
     permit holders.                                                                                                            
     Section 19 Nonprofit Income Tax exemption for AS 16.12                                                                     
     permit holders. Duplicated to conform with the AS                                                                          
     43.20.012(a) sunset and reenactment (SB 83 2013).                                                                          
     Section 20 Seafood Development Tax exemption for                                                                           
     shellfish harvested under a CFEC special harvest area                                                                      
     Section 21 DNR and ADF&G report and recommendations                                                                        
     for permitting process improvements.                                                                                       
     Section 22 Applicability of Section 2.                                                                                     
     Section 23 ADF&G authority to adopt regulations.                                                                           
    Section 24 Immediate effective date for Section 23.                                                                         
     Section 25 Effective date of 1-year time limit,                                                                            
     Section 17.                                                                                                                
     Section 26 Delayed effective date for Section 19.                                                                          
Mr. Scott noted  that there was an amendment  to remove sub-                                                                    
paragraph 3 on page 17, lines 11 through 13.                                                                                    
9:57:31 AM                                                                                                                    
Co-Chair  Stedman opened  up the  meeting for  questions. He                                                                    
referenced Senator Hoffman's  earlier question about funding                                                                    
for marketing.                                                                                                                  
Senator  Hoffman  reiterated  that  salmon  fishermen  taxed                                                                    
themselves to fund promotions by  ASMI. He did not think the                                                                    
fishermen  should subsidize  any other  marketing. He  asked                                                                    
why the bill would give  ASMI the authority for marketing of                                                                    
shellfish  when there  was no  revenue  to do  so. He  asked                                                                    
where the funds would come from.                                                                                                
JEREMY   WOODROW,   EXECUTIVE   DIRECTOR,   ALASKA   SEAFOOD                                                                    
MARKETING  INSTITUTE (via  teleconference), thought  Senator                                                                    
Hoffman had  brought up a  great question and  informed that                                                                    
the topic had been discussed  at length. He pointed out that                                                                    
that the ASMI bylaws clearly  stated that priority was given                                                                    
to those  that paid into the  voluntary self-assessment, and                                                                    
priority  would continue  to be  given  to the  wild-capture                                                                    
fisheries that paid  into the assessment. When  the bill had                                                                    
been  brought  to ASMI  the  previous  year there  had  been                                                                    
discussions with  the Mariculture Task Force  about what the                                                                    
industry needed.  It was  such a  small industry  that there                                                                    
was not much to self-assess.  The ASMI Board had agreed that                                                                    
it  made sense  to  change the  statutes  without a  funding                                                                    
mechanism  in  place,  knowing   that  there  were  numerous                                                                    
opportunities for federal grants to help with marketing.                                                                        
10:00:34 AM                                                                                                                   
Senator  Hoffman asked  if there  would be  an objection  if                                                                    
there were  a change in the  bill to signify that  the funds                                                                    
charged  by  the  salmon  industry would  not  be  used  for                                                                    
shellfish marketing.                                                                                                            
Mr.  Woodrow  thought  Senator   Hoffman  was  discussing  a                                                                    
"tricky area" based on how  ASMI currently used its funding.                                                                    
He shared that  currently ASMI did not divvy  up the funding                                                                    
for different species that paid  in. He furthered that about                                                                    
50  percent of  ASMI's assessment  was comprised  of pollack                                                                    
and salmon,  but 50  percent of efforts  did not  go towards                                                                    
the two species alone. He  thought the matter needed to come                                                                    
before the ASMI Board.                                                                                                          
Senator  Hoffman wanted  to consult  with  the fishermen  in                                                                    
Bristol  Bay  to  see  if they  agreed  with  Mr.  Woodrow's                                                                    
assessment. He assumed the response would be negative.                                                                          
Co-Chair Stedman asked if ASMI  members had been involved in                                                                    
discussion on  the subject, and  if there  was documentation                                                                    
of support.                                                                                                                     
Mr. Woodrow relayed  that the bill was brought  forth to the                                                                    
board on November  21, 2019. There had been  a motion passed                                                                    
unanimously  that  supported  change  to  ASMI  statutes  to                                                                    
include powers  to market aquatic  farm products.  The board                                                                    
was supportive of the current version of the bill.                                                                              
Senator Hoffman  questioned whether salmon fishermen  in the                                                                    
state  would support  the version  of the  bill, or  if they                                                                    
would rather have their taxes  excluded for use in marketing                                                                    
shellfish. He asked  if ASMI had received  feedback from any                                                                    
of the numerous salmon fisheries associations in the state.                                                                     
Mr. Woodrow relayed that ASMI  had not reached out to salmon                                                                    
associations specifically.  He was happy  to reach out  to a                                                                    
couple of the groups to get input.                                                                                              
10:04:01 AM                                                                                                                   
Senator  Wielechowski  asked about  page  3,  line 5;  which                                                                    
related  to augmenting  the yield  and harvest  of shellfish                                                                    
indigenous to state water. He  asked if the bill allowed for                                                                    
shellfish  indigenous  to  one  part  of  the  state  to  be                                                                    
transferred to another part of the state.                                                                                       
SAM   RABUNG,   COMMERCIAL    FISHERIES   DIVISION,   ALASKA                                                                    
DEPARTMENT OF  FISH AND GAME (via  teleconference), informed                                                                    
that Department of Fish and  Game (DFG) had a genetic policy                                                                    
that applied to  fin fish, that prohibited  the transport of                                                                    
indigenous  stocks  around  the state;  and  the  department                                                                    
required the  use of local  stocks. The rule was  applied to                                                                    
all species excepting  the geoduck, which was  allowed to be                                                                    
transported contiguous to the Gulf of Alaska.                                                                                   
Senator  Wielechowski  asked if  any  of  the scientists  or                                                                    
biologists at DFG had expressed any concerns over the bill.                                                                     
Mr. Rabung stated that there  had been some concerns only to                                                                    
ensure  that safeguards  were in  place. He  emphasized that                                                                    
every  time  there was  a  permit  application it  would  be                                                                    
reviewed  by   biologists,  pathologists,   and  geneticists                                                                    
before  a recommendation  was made  to  the commissioner  on                                                                    
whether  to approve  the  permit or  not.  He reminded  that                                                                    
permits were  issued on a case  by case basis, based  on the                                                                    
appropriateness of the plan.                                                                                                    
Co-Chair Stedman asked if DFG had a position on the bill.                                                                       
Mr.  Rabung   replied  that   he  had   been  told   by  the                                                                    
administration that the department was neutral.                                                                                 
Senator Wielechowski  asked if  Mr. Rabung believed  DFG had                                                                    
the  resources and  tools available  to  ensure that  native                                                                    
species  in the  area  would be  protected  and the  changes                                                                    
proposed would not harm the local ecosystem.                                                                                    
Mr. Rabung  affirmed that  the safety  of the  ecosystem and                                                                    
local species would be the  main charge of the department in                                                                    
consideration  of each  application that  was submitted,  as                                                                    
when  other  permits were  issued.  He  stated that  aquatic                                                                    
farming  currently allowed  for culturing  of the  organisms                                                                    
around the state under positive control.                                                                                        
10:08:00 AM                                                                                                                   
Senator Wilson asked if there  was anyone from Department of                                                                    
Environmental Conservation (DEC) available for questions.                                                                       
Co-Chair Stedman observed that there was not.                                                                                   
Senator  Wilson  recalled  that  DEC  did  the  testing  for                                                                    
shellfish.  He thought  it would  be hard  to determine  the                                                                    
revenues  from the  industry. He  thought  if the  shellfish                                                                    
industry  was  worried  about paying  for  testing,  he  was                                                                    
concerned about  affordability, marketing,  and continuation                                                                    
of the industry.                                                                                                                
Representative Ortiz  thought the funding aspect  of testing                                                                    
and permitting  had received much attention  and discussion.                                                                    
He reminded  that the industry  was just beginning,  and the                                                                    
overall  sentiment  was  that  the  state  needed  to  be  a                                                                    
facilitator  in the  process. He  thought the  prospects for                                                                    
the  industry  were  limitless,  but  the  state  needed  to                                                                    
provide the regulatory framework to  get the industry up and                                                                    
running.  He thought  there was  no question  that once  the                                                                    
industry  was  up and  running,  the  businesses would  have                                                                    
sufficient  revenue  to  be  active  participants  in  self-                                                                    
assessment and pay into the process.                                                                                            
Representative Ortiz  continued his  remarks. He  thought in                                                                    
the initial phase there was  recognition by all parties that                                                                    
the state needed to be  onboard wherever possible to get the                                                                    
industry  up  and  running. He  thought  the  support  might                                                                    
include some  initial monetary outlay  that would  likely be                                                                    
covered by the industry in the future.                                                                                          
Senator  Wilson wanted  to emphasize  the complexity  of the                                                                    
industry, which  he thought  touched on  four or  five state                                                                    
Representative  Ortiz thought  there might  be someone  from                                                                    
the Mariculture Task Force to add to the discussion.                                                                            
Co-Chair  Stedman thought  there  would be  time to  discuss                                                                    
matters with the bill sponsor  and the department before the                                                                    
bill was brought back to committee.                                                                                             
10:12:45 AM                                                                                                                   
AT EASE                                                                                                                         
10:13:32 AM                                                                                                                   
Co-Chair Stedman  relayed that  the sponsor would  leave the                                                                    
meeting and his staff would speak to the bill.                                                                                  
Senator Bishop MOVED to ADOPT Conceptual Amendment 1.                                                                           
Co-Chair Stedman OBJECTED for discussion.                                                                                       
10:14:28 AM                                                                                                                   
AT EASE                                                                                                                         
10:15:04 AM                                                                                                                   
Mr. Scott spoke to Conceptual Amendment 1:                                                                                      
     1 Page 2, line 23, following "actual"                                                                                      
     2 DELETE "regulatory"                                                                                                      
     3 INSERT "permit application processing"                                                                                   
     5 Page 2, line 25, following "department's"                                                                                
     6 DELETE "regulatory"                                                                                                      
     8 Page 5, line 28, following "source of"                                                                                   
     9 INSERT "wild"                                                                                                            
     11 Page 14, lines 30, following "lease"                                                                                    
     12 DELETE "under this section, AS 38.05.075, or                                                                            
     14 Page 15, lines 19-22                                                                                                    
     15 DELETE ALL MATERIAL                                                                                                     
     17 Page 17, lines 10, following ";" through line 13                                                                        
     18 DELETE ALL MATERIAL                                                                                                     
     19 INSERT "and"                                                                                                            
     20 Renumber sections accordingly                                                                                           
Mr. Scott  explained that there  were six  amendments within                                                                    
the  conceptual amendment.  He noted  that  all the  changes                                                                    
reflected in  the amendment were  at the request of  DFG and                                                                    
DNR. He  mentioned a proposed  change that would  affect the                                                                    
renewal  process  for  aquatic  farm permits  and  would  be                                                                    
identical  to language  in HB  116  [a bill  related to  the                                                                    
renewal or extension of site  leases for aquatic farming and                                                                    
aquatic plant and shellfish hatchery operations].                                                                               
Co-Chair Stedman WITHDREW his OBJECTION.                                                                                        
Senator Wielechowski  was curious if the  proposed amendment                                                                    
would have an impact on the fiscal notes.                                                                                       
Mr. Scott  stated that  if the fifth  part of  the amendment                                                                    
did not go through, there would be a large fiscal note.                                                                         
Co-Chair Stedman asked for more detail.                                                                                         
Mr. Scott  relayed that  the section  would require  DNR and                                                                    
the permitting  staff to deny  or approve an 083  permit and                                                                    
additional staff  would be required  to meet a  timeline set                                                                    
by the legislature.                                                                                                             
Senator Wielechowski thought a year  seemed like a long time                                                                    
to approve or deny a permit request.                                                                                            
Mr. Rabung stated that the  portion of the bill pertained to                                                                    
10:20:33 AM                                                                                                                   
CHRISTY  COLLES, CHIEF  OF  OPERATIONS,  DIVISION OF  MINING                                                                    
LAND  AND  WATER,  DEPARTMENT   OF  NATURAL  RESOURCES  (via                                                                    
teleconference), spoke  to Senator  Wielechowski's question.                                                                    
She  acknowledged  that  the department  had  a  significant                                                                    
backlog  of applications,  and there  was a  required public                                                                    
process  component  which took  quite  a  bit of  time.  She                                                                    
continued  that   the  department   recently  got   two  new                                                                    
adjudicators  to  review  applications. She  continued  that                                                                    
once the backlog  was diminished, the process  would be more                                                                    
timely.  The  time  frame  was  concerning  because  if  the                                                                    
department could  not meet  the public  process requirement,                                                                    
it would  then be  forced the deny  the application  to meet                                                                    
the deadline.                                                                                                                   
Senator  Wielechowski wondered  if there  was fiscal  impact                                                                    
from the  first change  outlined in Conceptual  Amendment 1,                                                                    
which  would delete  the word  "regulatory"  and insert  the                                                                    
words "permit application processing."                                                                                          
Mr. Rabung  thought there  should not  be any  fiscal impact                                                                    
from the  proposed change. The department  had requested the                                                                    
change  because  the  term  "regulatory"  could  be  broadly                                                                    
interpreted  to  mean  things  other  than  the  application                                                                    
Co-Chair  Stedman WITHDREW  his  OBJECTION.  There being  NO                                                                    
further OBJECTION, Conceptual Amendment 1 was ADOPTED.                                                                          
Senator Hoffman  MOVED to ADOPT  a conceptual  amendment. He                                                                    
wanted  to insert  wording to  say  that ASMI  may only  use                                                                    
grant funds to market the enhancement of aquatic shellfish.                                                                     
Co-Chair Stedman OBJECTED for discussion.                                                                                       
Co-Chair Stedman  explained that the committee  would not be                                                                    
moving  the  bill  during the  meeting,  so  members  should                                                                    
consider  working with  the bill's  sponsor on  any proposed                                                                    
changes. The committee  could consider additional amendments                                                                    
the next time the bill was brought before the committee.                                                                        
10:24:35 AM                                                                                                                   
AT EASE                                                                                                                         
10:26:07 AM                                                                                                                   
Senator Hoffman stated  he would work with  the bill sponsor                                                                    
to get the issue addressed in proper form.                                                                                      
Senator  Hoffman WITHDREW  his  conceptual amendment.  There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
Co-Chair  Stedman   asked  committee  members   to  consider                                                                    
holding off  on proposing amendments  till later in  the day                                                                    
so  that  members  could  work with  the  bill  sponsor.  He                                                                    
thought there was several amendments  to consider, some with                                                                    
duplicative numbers. He  asked to slow the  process down and                                                                    
re-visit the issue  after working with the  bill sponsor. He                                                                    
stated that  the action  did not  preclude the  members from                                                                    
proposing additional  amendments. He thought a  more orderly                                                                    
process would create a more refined product.                                                                                    
Senator Olson supported Co-Chair Stedman's remarks.                                                                             
Senator  Wielechowski  asked  if  there  had  been  concerns                                                                    
expressed   by   scientists  regarding   inter-breeding   of                                                                    
Mr. Rabung stated that DFG  policy required the use of local                                                                    
stocks,  so  the  organisms  would  be  derived  from  other                                                                    
animals they  may interbreed with.  The species were  not to                                                                    
be  changed in  any way  whatsoever but  would be  protected                                                                    
during the  vulnerable juvenile life  stage and  then placed                                                                    
in  the same  area  or  an adjacent  area  with depleted  or                                                                    
extirpated  stock. He  believed the  department had  genetic                                                                    
policy and safeguards in place.                                                                                                 
Senator Wielechowski  asked if Mr. Rabung  thought there was                                                                    
enough wild crab stock to give brood stock to hatcheries.                                                                       
Mr.  Rabung thought  there  was most  likely  not enough  to                                                                    
provide  brood  stock  everywhere. He  reminded  that  crabs                                                                    
mated  in the  wild, and  the impregnated  females would  be                                                                    
collected  and  held until  the  crab  released. The  larvae                                                                    
would be protected, and the  crabs could be re-released from                                                                    
where they were collected if pathology approved.                                                                                
10:30:16 AM                                                                                                                   
Senator  Wielechowski  observed  that there  were  two  zero                                                                    
fiscal notes.  He asked if  DFG had enough funds  to protect                                                                    
the resource.                                                                                                                   
Mr. Rabung answered in the  affirmative. He noted that every                                                                    
new  fiscal  year  brought  the  topic  into  question.  The                                                                    
department  had  permitting  people  in place  and  the  new                                                                    
applications  were similar  to others  that were  already in                                                                    
existence.  He  did not  expect  that  there would  be  many                                                                    
permit  applications since  costs were  very high  and there                                                                    
was no guarantee of cost recovery.                                                                                              
Co-Chair Stedman  referenced concerns of members  and stated                                                                    
there  were several  amendments  to consider.  He asked  the                                                                    
sponsor to work with members on amendments.                                                                                     
Co-Chair Stedman  set the bill  aside. He asked  the sponsor                                                                    
if he had comments or concerns to share.                                                                                        
Representative  Ortiz  affirmed  that he  would  communicate                                                                    
with  members and  staff to  explore  questions and  further                                                                    
discussion.  He understood  the  topic of  the bill  merited                                                                    
further discussion.                                                                                                             
Co-Chair Stedman reminded  that the CS had  been adopted and                                                                    
Conceptual Amendment 1 had been adopted.                                                                                        
Co-Chair  Stedman reminded  that  the session  was close  to                                                                    
ending and the committee was  trying to take action on bills                                                                    
as needed.  He anticipated  that many pieces  of legislation                                                                    
would be taken up the following session.                                                                                        
10:35:02 AM                                                                                                                   
[Co-Chair von Imhof adjourned the meeting at 4:43 p.m.]                                                                         

Document Name Date/Time Subjects
HB 41 work draft version O.pdf SFIN 3/24/2020 9:00:00 AM
HB 41
HB 41 version O - Abridged Sectional_.pdf SFIN 3/24/2020 9:00:00 AM
HB 41
HB 41 version O - Sectional Analysis.pdf SFIN 3/24/2020 9:00:00 AM
HB 41
HB 41 v. O Conceptual Amendment #1.pdf SFIN 3/24/2020 9:00:00 AM
HB 41
HB 247 Support Doc - Surcharge Revenue Breakdown 3.20.20.pdf SFIN 3/24/2020 9:00:00 AM
HB 247
HB 247 Explanation of Changes ver. A to U 3.19.20.pdf SFIN 3/24/2020 9:00:00 AM
HB 247
HB 247 Sectional Analysis - ver. U 3.19.20.pdf SFIN 3/24/2020 9:00:00 AM
HB 247