Legislature(1993 - 1994)
03/17/1993 08:30 AM House FSH
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES March 17, 1993 8:30 a.m. MEMBERS PRESENT Representative Carl E. Moses, Chairman Representative Harley Olberg, Vice-Chairman Representative Gail Phillips MEMBERS ABSENT Representative Irene Nicholia Representative Cliff Davidson OTHER MEMBERS PRESENT Representative Bill Williams COMMITTEE CALENDAR HB 191 "An Act relating to cost recovery by contractors who operate state-owned hatcheries." MOVED OUT OF COMMITTEE WITH INDIVIDUAL RECOMMENDATIONS HCR 9 Relating to management of the community development fisheries quota program and fisheries development by the state. CSHCR 9 (FSH) MOVED OUT OF COMMITTEE WITH INDIVIDUAL RECOMMENDATIONS WITNESS REGISTER Representative Bill Williams State Capitol, Room 128 Juneau, Alaska 99801-1182 465-3424 Position Statement: Prime Sponsor of HB 191 Geron Bruce, Special Assistant, Alaska Department of Fish and Game P.O. Box 25526 Juneau, Alaska 99802-5526 465-4100 Position Statement: Supported HB 191 Marie Sansone, Assistant Attorney General Department of Law P.O. Box 110300 Juneau, Alaska 99811-0300 465-3600 Position Statement: Answered questions regarding HB 191 Ray Gillespie, Lobbyist Aquaculture 9478 Riverbend Court Juneau, Alaska 99801 364-3375 Position Statement: Supported HB 191 PREVIOUS ACTION BILL: HB 191 SHORT TITLE: CONTRACTOR OPERATED STATE HATCHERIES BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) WILLIAMS,Olberg,Grussendorf, G.Davis,Navarre,Phillips TITLE: "An Act relating to cost recovery by contractors who operate state-owned hatcheries." JRN-DATE JRN-PG ACTION 03/02/93 505 (H) READ THE FIRST TIME/REFERRAL(S) 03/02/93 505 (H) FISHERIES, RESOURCES, FINANCE 03/10/93 596 (H) COSPONSOR(S): PHILLIPS 03/17/93 (H) FSH AT 08:30 AM CAPITOL 17 03/17/93 682 (H) FSH RPT 3DP 03/17/93 682 (H) DP: MOSES, OLBERG, PHILLIPS 03/17/93 682 (H) -ZERO FISCAL NOTE (F&G) 3/17/93 BILL: HCR 9 SHORT TITLE: COMMUNITY DEVELOPMENT FISHING QUOTAS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HOFFMAN,Ulmer TITLE: Relating to management of the community development fisheries quota program and fisheries development by the state. JRN-DATE JRN-PG ACTION 02/22/93 409 (H) READ THE FIRST TIME/REFERRAL(S) 02/22/93 409 (H) FISHERIES, RESOURCES, FINANCE 03/12/93 (H) FSH AT 08:30 AM CAPITOL 17 03/17/93 682 (H) FSH RPT CS(FSH) NEW TITLE 2DP 1NR 03/17/93 682 (H) DP: MOSES, OLBERG 03/17/93 682 (H) NR: PHILLIPS 03/17/93 682 (H) -ZERO FISCAL NOTE (F&G) 3/17/93 03/17/93 682 (H) REFERRED TO RESOURCES ACTION NARRATIVE TAPE 93-12, SIDE A Number 000 CHAIRMAN CARL MOSES called the meeting to order at 8:33 a.m. He noted Representatives Olberg and Phillips in attendance and stated the committee would take up HB 191 and the Committee Substitute for HCR 9. HB 191: CONTRACTOR OPERATED STATE HATCHERIES REPRESENTATIVE BILL WILLIAMS, PRIME SPONSOR of HB 191, told the committee that several years ago legislation was passed that would allow state owned hatcheries to be put out on contract for operation by private and non profit corporations to help get the state out of the expensive burden of running hatcheries. The contractor could then harvest fish from the hatchery to cover the cost of operating that particular hatchery (cost recovery). REPRESENTATIVE WILLIAMS added that the main problem with current law is that the language is too restrictive and inflexible, regarding the shuffling of funds between hatcheries. He gave an example of an aquaculture association that has several hatcheries and then contracts to run one of the state's hatcheries, and that particular hatchery has a bad year, the association would have to take money that was generated at the other facilities to subsidize the operation for the state hatchery. However, because the law restricts the use of cost recovery funds generated at the contracted hatchery to operation of only that facility, the shuffling of funds cannot go the other way. REPRESENTATIVE WILLIAMS said HB 191 broadens the description of how cost recovery monies generated from a state owned hatchery operated under contract may be spent by the contractor. It allows for the shuffling of funds between the various facilities operated by the contractor and it allows for capital expenditures to be made from these cost recovery monies. Number 055 GERON BRUCE, SPECIAL ASSISTANT, ALASKA DEPARTMENT OF FISH AND GAME (ADF&G), stated the ADF&G supports HB 191, and the ADF&G felt the current legislation unnecessarily restricted the flexibility that an aquaculture association might have to pool its funds and most effectively use its resources to operate its facilities. Number 065 REPRESENTATIVE GAIL PHILLIPS asked how many of the hatcheries would not be in an aquaculture association under the new scenario. MR. BRUCE said that there would be two hatcheries in Southeast, three in Cook Inlet, operated by the sports fishermen, one in Kotzebue, and one in Fairbanks. VICE CHAIR HARLEY OLBERG talked about the Gulkana hatchery which is two hundred miles from salt water. He noted since the Copper River is a mixed stock run, there can be no cost recovery, and Prince William Sound Aquaculture Corporation cannot recover any costs from that hatchery because it is a mixed stock run. Number 121 REPRESENTATIVE PHILLIPS asked if there were any legal prohibitions regarding this amendment. MARIE SANSONE, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF LAW, responded that the amendment was necessary because the section as originally passed, restricted the cost recovery at the state hatchery. Number 137 RAY GILLESPIE, LOBBYIST for four aquaculture associations: Cook Inlet, Prince William Sound, and Northern and Southern Southeastern, said the four groups unanimously supported HB 191. Number 157 REPRESENTATIVE PHILLIPS made the MOTION to move HB 191 out of committee with individual recommendations, and IT WAS SO MOVED. HCR 9: COMMUNITY DEVELOPMENT FISHING QUOTAS Number 167 VICE CHAIR OLBERG made the MOTION to ADOPT the committee substitute for HCR 9, dated March 16, 1993. CSHCR 9 (FSH) was ADOPTED. Number 192 CHAIRMAN MOSES stated CSHCR 9 (FSH) would incorporate changes recommended by the Department of Community and Regional Affairs and by several fishing organizations. It would delete all references to an expanded Community Development Quota (CDQ) program. It also refers to a full- time staff in the plural, thus reflecting the governor's proposed budget amendment. And it also clarifies what is actually being requested. He noted all the changes had been approved by the sponsor. Number 201 CSHCR 9 (FSH) was MOVED with individual recommendations. ADJOURNMENT CHAIRMAN MOSES adjourned the committee at 8:53 a.m.