Legislature(1993 - 1994)
04/08/1993 02:00 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATOR KELLY called the Senate Labor and Commerce meeting
to order at 2:00 p.m. and announced SB 177 (SALMON
MARKETING, TAX;ASMI BOARD & DUTIES) to be up for
consideration.
SENATOR PEARCE explained that the proposed committee
substitute was in response to a number of concerns expressed
in the previous meeting.
KIM ELTON, Director of ASMI, said he anticipated a revenue
stream of between $3 - $5 million with this legislation. It
supplements revenues received from the processing segment of
the industry. The harvester tax dollars envisioned in this
bill would be used exclusively for salmon marketing in the
domestic market place. The processing revenues are now used
for all species.
MR. ELTON noted that the data and market information
provision of Section 5 should be available to the public
rather than to just one portion of ADF&G.
Number 171
SENATOR LINCOLN asked about the expansion of the Board. MR.
ELTON explained that the Board now consists of 18 members
and would expand to 24 members comprised of eight large
processors, 4 small processors, and 12 fishermen. SENATOR
LINCOLN asked who wanted the expansion. MR. ELTON replied
that expansion was designed to accommodate 50/50
representation among the processors and fishermen. He said
under the voluntary processor assessment the processing
segment is contributing hundreds of thousands of dollars.
If any of them were removed from the Board, it would create
a significant amount of turmoil in the industry. So for
equal representation of fishermen, they had to add members.
The public member was dropped which he was uncomfortable
with.
SENATOR SHARP said he was uncomfortable taking the public
member off the Board since a considerable amount of public
treasury money was going into ASMI.
MR. ELTON explained that the Board is appointed by the
Governor and then the Board elects a chairman annually. It
is very important to maintain the 50 percent balance, he
reiterated.
Number 303
SENATOR LINCOLN thought the appointing process left too much
discretion to the Governor.
There was some discussion about the makeup of the Board and
Senator Rieger thought a smaller Board might be more
workable. MR. ELTON said a smaller number would be
difficult, because there would be a lot of bruised feelings.
Also with a larger number of fishermen, many gear groups, as
well as different regions of the state, could be
represented.
SENTOR KELLY said they would add the public member back into
the bill.
Number 413
CHERYL SUTTON, United Fisherman of Alaska, said as an
industry they have more than paid their way. She said they
like the bill except for Section 5. She said it was their
intent that beneath the ASMI Board there would be a new
salmon committee that would essentially oversee the domestic
marketing program which would be largely funded by the
assessment of fishermen/harvesters. They want a committee
of seven, comprised of four fishermen and three processors.
SENATOR KELLY read the proposed language and asked if they
should require the members to be Alaska residents. MS.
SUTTON said that would not be good, because their processor
members may or may not be residents of the state, but have
tremendous cash flow within the state.
SENATOR KELLY asked if there would be a problem with having
the fishermen being residents of Alaska. MS. SUTTON said
that would be no problem for them, but it might not be
legal.
Number 526
SENATOR LINCOLN said the language regarding which
Commissioner does the appointing was unclear. She also
wondered if the Board could select the salmon marketing
committee without prejudice. MS. SUTTON said she didn't see
prejudice as a problem based on her previous experience.
SENATOR RIEGER suggested that there needs to be
clarification on which commissioner does the appointing.
SENATOR LINCOLN said she really wanted to see Alaska
residents on the Board. SENATOR KELLY suggested language
saying "the other three should be Alaska residents selected
from other fishery regions within the state and shall hold
permits under AS 16.43."
Number 557
Referring to page 3, line 4, MS. SUTTON said there was no
reason to create an Executive Board. MR. ELTON said that
language applied to the committee system and there was no
problem with keeping that.
TAPE 93-27, SIDE B
Number 580
SENATOR LINCOLN thought there should be language stating the
duties of the new salmon marketing board.
Number 573
KATE TROLL, Southeast Alaska Seiners Association, said the
ability of the fishermen to afford the one percent tax was a
problem. Southeast Alaska is the only region that already
pays a three percent enhancement tax. All the other regions
pay two percent or less. Bristol Bay doesn't have a tax
since they have plenty of fish with the wild runs. MS.
TROLL said they would like the option of taking one percent
of their enhancement tax and spending it on marketing.
MS. TROLL said she had asked Commissioner Fuhs if he could
allow the aquaculture associations to restructure their
loans until marketing kicks in, if this amendment goes
through. He said there was no problem with that.
She said they would support the bill if they got the one
percent credit.
Number 463
DEAN PADDOCK, Bristol Bay Driftnetters Association,
supported a one percent assessment for salmon marketing. He
also supported changing Section 9 as Ms. Sutton suggested.
Number 425
ROBIN SAMUELSON, Bristol Bay fisherman, opposed the tax,
because he thought Western Alaska would be left out of the
picture and it would amount to taxation without
representation. He said they pay city taxes in excess of
five percent. He said the domestic processors have to show
a willingness to bring fish into the United States and then
they would follow with marketing. This bill would also
benefit the hatchery produced fisheries over natural stocks,
he said.
Number 406
SENATOR KELLY closed the public hearing on SB 177 and said
he would have staff work on a new committee substitute.
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