Legislature(2019 - 2020)BUTROVICH 205

03/23/2020 03:30 PM Senate RESOURCES

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 204 STATE LAND SALES; PLATS; RIVERS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+= SJR 15 STATE FULL SHARE OF PROFITS IN ANWR TELECONFERENCED
Moved SJR 15 Out of Committee
-- Public Testimony --
+= SB 184 EXTEND FISHERY RESOURCE LAND. TAX CREDIT TELECONFERENCED
Moved SB 184 Out of Committee
-- Public Testimony --
**Streamed live on AKL.tv**
- Continue to Access Meeting Through akleg.gov
- All Off-Net Callers Must Hang Up Immediately
After Testifying to Keep Lines Open
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 203 TRANSPORTATION OF LIVE CRAB TELECONFERENCED
Moved CSHB 203(FSH) Out of Committee
-- Public Testimony --
        SB 184-EXTEND FISHERY RESOURCE LAND. TAX CREDIT                                                                     
                                                                                                                                
3:45:49 PM                                                                                                                    
CHAIR MICCICHE announced that the first order of business would                                                                 
be SENATE BILL NO. 184, "An Act extending the fishery resource                                                                  
landing  tax credit  for certain  taxpayers that  harvest fishery                                                               
resources under the provisions of  a community development quota;                                                               
providing for  an effective date  by amending the  effective date                                                               
of sec.  36, ch.  61, SLA  2014; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
3:46:30 PM                                                                                                                    
SETH   BEAVER,  Staff,   Senator   Donny   Olson,  Alaska   State                                                               
Legislature, Juneau, Alaska, stated that  SB 184 would extend the                                                               
termination date for the fishery  resource landing tax credit for                                                               
10  years. The  taxpayer  contributions through  the program  are                                                               
directed towards  nonprofit corporations incorporated  within the                                                               
state  for scholarships  for study  within  the state,  fisheries                                                               
management   training   within   the  state,   seafood   industry                                                               
employment, and  capital contributions  in the  form of  loans to                                                               
construct or  improve seafood  transportation facilities  such as                                                               
docks.                                                                                                                          
                                                                                                                                
CHAIR MICCICHE noted  that he was not aware of  any opposition to                                                               
SB 184.                                                                                                                         
                                                                                                                                
3:47:40 PM                                                                                                                    
DENISE  LICCIOLI,  Staff,  Senator   Donny  Olson,  Alaska  State                                                               
Legislature, Juneau,  Alaska, said the sponsor  sends his regrets                                                               
for not attending the bill hearing due to illness.                                                                              
                                                                                                                                
MR.  BEAVER  summarized that  SB  184  would extend  the  fishery                                                               
resource  landing tax  credit termination  date  to December  31,                                                               
2030.                                                                                                                           
                                                                                                                                
3:48:02 PM                                                                                                                    
CHAIR MICCICHE opened public testimony.                                                                                         
                                                                                                                                
3:48:34 PM                                                                                                                    
NORMAN VAN VACTOR, Chief Executive  Officer, Bristol Bay Economic                                                               
Development   Corporation,  Dillingham,   Alaska,  testified   in                                                               
support  of SB  184. He  said  the fishery  resource landing  tax                                                               
credit has served the Bristol Bay  region and the State of Alaska                                                               
exceptionally well.                                                                                                             
                                                                                                                                
3:49:01 PM                                                                                                                    
ANGEL  DROBNICA, Director  of Fisheries  and Government  Affairs,                                                               
Aleutian  Pribilof  Island   Community  Development  Association,                                                               
Juneau,  Alaska, testified  in support  of SB  184. She  said the                                                               
Aleutian  Pribilof   Island  Community   Development  Association                                                               
(APICDA) is  one of the  six groups in the  Community Development                                                               
Quota (CDQ) Program. The CDQ  Program has provided very important                                                               
sources  of  revenue for  the  Bering  Sea and  Aleutian  Islands                                                               
region that helps support the mission of APICDA.                                                                                
                                                                                                                                
MS.  DROBNICA detailed  that  APICDA  has received  approximately                                                               
$600,000 in  tax credit funds over  the past 5 years.  APICDA has                                                               
expended funds on the  statutorily allowable categories including                                                               
training in the state for  employment in the seafood industry and                                                               
making capital contributions to fisheries processing facilities.                                                                
                                                                                                                                
3:50:21 PM                                                                                                                    
RICK  WALICKI,  Treasurer  and Chief  Financial  Officer,  Norton                                                               
Sound  Economic   Development  Corporation,   Anchorage,  Alaska,                                                               
testified  in  support  of  SB  184. He  said  the  Norton  Sound                                                               
Economic  Development  Corporation  (NSEDC)  is one  of  the  CDQ                                                               
groups. They work with the Norton  Sound Fund to spend tax credit                                                               
funds  on  fisheries research  and  employment  training for  the                                                               
Norton Sound region. He said they would like that to continue.                                                                  
                                                                                                                                
3:51:00 PM                                                                                                                    
GERALD DAVIS, General Counsel,  Yukon Delta Fisheries Development                                                               
Association, Anchorage,  Alaska, testified in support  of SB 184.                                                               
He  said  the  Yukon   Delta  Fisheries  Development  Association                                                               
(YDFDA)  is one  of  the  six CDQ  groups.  He  said YDFDA  fully                                                               
utilizes all aspects of the  fishery resource landing tax credit.                                                               
They use  approximately $100,000  a year from  the tax  credit to                                                               
directly pay  for all  aspects of in-season  fish testing  on the                                                               
Lower Yukon  by the Alaska  Department of Fish and  Game (ADF&G).                                                               
YDFDA will  do even more  in 2020 because ADF&G  was reevaluating                                                               
their efforts and the association  would likely be picking up the                                                               
scale  sampling for  the department.  YDFDA uses  the tax  credit                                                               
money without offsets, without  administration fees, and directly                                                               
pays the fisheries monitoring work on the Lower Yukon River.                                                                    
                                                                                                                                
3:52:03 PM                                                                                                                    
HEATHER  MCCARTY,  Consultant,  Central  Bering  Sea  Fishermen's                                                               
Association, Juneau, Alaska, testified in  support of SB 184. She                                                               
said  the  Central  Bering Sea  Fishermen's  Association  (CBSFA)                                                               
represents St.  Paul in the  Pribilof Islands  as one of  the six                                                               
CDQ groups. The funds that  CBSFA has received and expended under                                                               
the  tax  credit  program have  helped  the  association  support                                                               
several  important  scientific  undertakings that  have  directly                                                               
benefited both community fishermen  and the marine resources that                                                               
the  region  depends on,  notably  halibut  and crab.  CBSFA  has                                                               
supported  funding  for  studies for  the  International  Pacific                                                               
Halibut   Commission  (IPHC)   regarding   the  affective   water                                                               
temperature  on halibut  movement,  whale  degradation, and  blue                                                               
king crab restoration  for the Pribilof Islands.  CBSFA could not                                                               
have funded the important studies without the tax credit funds.                                                                 
                                                                                                                                
3:53:06 PM                                                                                                                    
CHAIR MICCICHE closed public testimony.                                                                                         
                                                                                                                                
3:53:28 PM                                                                                                                    
SENATOR COGHILL moved  to report SB 184,  work order 31-LS1539\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note.                                                                                                                    
                                                                                                                                
3:53:36 PM                                                                                                                    
CHAIR MICCICHE  found no objection  and SB 184 was  reported from                                                               
the Senate Resources Standing Committee.                                                                                        

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