02/06/2025 11:00 AM House FISHERIES
| Audio | Topic |
|---|---|
| Start | |
| HB60 | |
| HB31 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 60 | TELECONFERENCED | |
| *+ | HB 31 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
February 6, 2025
11:02 a.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Bryce Edgmon, Vice Chair
Representative Rebecca Himschoot
Representative Chuck Kopp
Representative Bill Elam
MEMBERS ABSENT
Representative Kevin McCabe
Representative Sarah Vance
COMMITTEE CALENDAR
HOUSE BILL NO. 60
"An Act relating to municipal and state procurement preferences
for agricultural products harvested in the state and fisheries
products harvested or processed in the state; and providing for
an effective date."
- HEARD & HELD
HOUSE BILL NO. 31
"An Act relating to the registration of commercial vessels; and
relating to the derelict vessel prevention program fund."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 60
SHORT TITLE: PROCURE PREF: AGRIC. & FISH PRODUCTS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) FSH, L&C
02/06/25 (H) FSH AT 11:00 AM GRUENBERG 120
BILL: HB 31
SHORT TITLE: VESSELS: REGISTRATION/DERELICT FUND
SPONSOR(s): STUTES
01/22/25 (H) PREFILE RELEASED 1/10/25
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) FSH, FIN
02/06/25 (H) FSH AT 11:00 AM GRUENBERG 120
WITNESS REGISTER
PAULA VRANA, Commissioner
Department of Administration
Juneau, Alaska
POSITION STATEMENT: Introduced HB 60 on behalf of the bill
sponsor, House Rules by request of the governor.
ANNA LATHAM, Deputy Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: On behalf of the bill sponsor, House Rules
by request of the governor, gave a short presentation describing
HB 60 and current procurement operations.
MATT GRUENING, Staff
Representative Louise Stutes
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Stutes, prime
sponsor, presented HB 31 and a background on vessel
registration.
ACTION NARRATIVE
11:02:53 AM
[Due to technical difficulties, the start of the audio of this
meeting was not recorded, but details were captured from the
secretary's log notes. Audio begins at 11:05:28.]
CHAIR LOUISE STUTES called the House Special Committee on
Fisheries meeting to order at 11:02 a.m. Representatives
Himschoot, Edgmon, Vance, McCabe, Kopp and Stutes were present
at the call to order. Representative Elam arrived as the
meeting was in progress.
CHAIR STUTES reviewed the goals of the committee.
HB 60-PROCURE PREF: AGRIC. & FISH PRODUCTS
11:06:35 AM
CHAIR STUTES announced that the first order of business would be
HOUSE BILL NO. 60, "An Act relating to municipal and state
procurement preferences for agricultural products harvested in
the state and fisheries products harvested or processed in the
state; and providing for an effective date."
11:07:10 AM
PAULA VRANA, Commissioner, Department of Administration,
introduced HB 60 on behalf of the bill sponsor, House Rules by
request of the governor. She explained that HB 60 would
strengthen Alaska's commitment to supporting local agriculture
and fisheries industries by enhancing procurement preferences
for state agencies, municipalities and school districts that
receive state funding. This would be done by raising the
required in-state purchase preference from 7 percent to 10
percent and expanding discretionary purchasing from 15 percent
to 25 percent. This bill ensures that more Alaska grown
products are prioritized in procurement decisions. She said
that HB 60 aligns with the recommendations of the governor's
Food Security and Independence Taskforce and has received broad
support from industry stakeholders. By enabling more
flexibility to support Alaska-grown products, the bill seeks to
bolster the state economy, increase food security, and would
ensure a more self-reliant Alaska.
11:08:40 AM
ANNA LATHAM, Deputy Commissioner, Department of Commerce,
Community & Economic Development (DCCED), on behalf of the bill
sponsor, House Rules by request of the governor, gave a short
presentation describing HB 60 and current procurement
operations. She noted that the pandemic caused supply-chain
disruptions on the West Coast and impacted the delivery of food
and essential goods to Alaska. She noted how slow supply-chain
operations were during this time and how it limited available
supplies in Alaska grocery outlets. She said that it forced the
state to take a hard look at Alaska food security and how to
improve it. She remarked that the 2022 establishment of
Administrative Order 331 and the creation of the governors Food
Security and Independence Taskforce was a response to food
security concerns.
11:09:41 AM
MS. LATHAM remarked that one of the findings of the taskforce
was that Alaska imports 95 percent of its food at a cost of
around $2 billion. She said that the taskforce has made many
recommendations on how to bolster food production and harvesting
in Alaska. She said this effort also aligns with Governor
Dunleavy's Executive Order 136 which was introduced this session
and would create a Department of Agriculture.
MS. LATHAM then proceeded to describe current procurement
procedures for Alaska products. She noted that the current
statutes require municipalities, school districts, and state
agencies that receive state funds to procure Alaskan products
within certain price thresholds. She explained that the current
purchasing model is similar to mobile markets such as Full-
Circle. She said vendors can select Alaska-grown products from
everything that is displayed for purchase. Currently the main
vendor for the Department of Administration (DOA) is U.S. Foods
and any interested Alaska growers can apply to be a vendor with
U.S. Foods. State agencies can select these Alaska-grown
products from this vendor list.
MS. LATHAM noted that the DOA Chief Procurement Officer was
available to answer any committee questions pertaining to vendor
purchases. She echoed MS. VRANA's previous summary of HB 60 and
that it would increase the price differentials currently in
statute for preferential procurements.
11:11:53 AM
MS. LATHAM remarked that DOA conducted a survey in fall 2024 to
assess how much was currently being purchased. The survey
determined that out of the $17 million dollars that the state
spends on food, only $236,000 is on Alaska-grown products. She
noted that there was room for improvement and Alaska purchases
constituted only .014 percent of current procurements. She
reiterated that the intent of HB 60 is to bolster pre-existing
markets and address food security in the state.
11:12:41 AM
MS. LATHAM, at the request of committee members provided
elaboration of some current purchases involved in food
procurement. She noted that currently the Alaska Seafood and
Marketing Institute (ASMI) spends $117,000 on seafood, canned
food and scallops for nutritional testing and display. The
Department of Corrections (DOC) purchases primarily potatoes for
use at correction facilities. The Department of Labor and
Workforce Development (DLWD) and its culinary program at the
vocational training school in Seward spent $7 on sprouts. The
Department of Transportation and Public Facilities (DOT&PF)
spent $1,000 on food for the state ferries. She noted that
these were small amounts, and DCCED hopes to see increases with
HB 60.
11:13:36 AM
REPRESENTATIVE KOPP mentioned large nonprofits that receive
state funding, he inquired whether these entities would be
impacted by HB 60.
MS. LATHAM responded that at this time, the proposed bill would
apply only to government units.
11:14:21 AM
REPRESENTATIVE ELAM asked about anticipated impact on
municipalities, specifically when looking at the amount of
additional revenues needed to support procurement changes.
MS. LATHAM responded to Representative Elam that the Alaska
Municipal League was contacted prior to the hearing and would
prepare an impact statement. The league remarked that the main
consumers would be the nine municipal owned hospitals in the
state as well as the jails.
REPRESENTATIVE ELAM asked whether HB 60 would impact facilities
owned by municipalities but have private incorporations.
MS. LATHAM said that she would have to get back to him regarding
that question.
11:15:52 AM
CHAIR STUTES asked about the capacity of money allocations to
DOT&PF.
MS. LATHAM responded that it was for food purchases on the M/V
Aurora and M/V Tustumena ferries and included sprouts and
potatoes.
11:16:37 AM
REPRESENTATIVE HIMSCHOOT asked for an example of what a
political sub-division could be.
MS. LATHAM responded that this could include school districts
and things of this sort.
11:17:07 AM
REPRESENTATIVE ELAM mentioned small school districts that get
state funding but are not technically within a municipality. He
asked whether HB 60 would pertain to these entities.
MS. LATHAM responded that if they are not in a municipality,
then they would not be impacted.
11:17:48 AM
REPRESENTATIVE KOPP asked whether HB 60 would apply to the
Alaska Railroad Corporation (ARRC).
MS. Latham responded that she did not believe it would apply to
AARC but would get back with an answer following the committee
meeting.
REPRESENTATIVE KOPP mentioned the large amounts of tourists
associated with the railroad and the sizeable portions of food
purchased by them.
11:18:36 AM
REPRESENTATIVE EDGMON asked about any opposition regarding the
addition of tribes to the list of bodies required to expand
procurement purchases. He asked why the state would not want to
do this and whether it was a procurement issue.
MS. LATHAM responded that if it were the will of the committee,
it could be considered. She remarked, however, that HB 60
consisted of minor changes to pre-existing statutes when it was
drafted and was not focused on large procurement expansions.
REPRESENTATIVE EDGMON asked about looking at any downstream
impacts from including tribes under the bill and said he would
like a follow-up much like Representative Kopps inquiry about
railroad procurements.
11:20:24 AM
CHAIR STUTES opened public testimony on HB 60. After
ascertaining that no one wished to testify, she closed public
testimony. She noted that any written testimonies could be sent
to [email protected].
11:21:57 AM
CHAIR STUTES announced that HB 60 was held over.
HB 31-VESSELS: REGISTRATION/DERELICT FUND
11:22:06 AM
CHAIR STUTES announced that the final order of business would be
HOUSE BILL NO. 31, "An Act relating to the registration of
commercial vessels; and relating to the derelict vessel
prevention program fund."
11:23:00 AM
MATT GRUENING, Staff, Representative Louise Stutes, on behalf of
Representative Stutes, prime sponsor, presented HB 31 and a
background on vessel registration. He began by describing that
vessel documentation is a national form of vessel registration
through the U.S. Coast Guard (USCG) and is one of the oldest
functions of the Federal Government. He noted that there is an
informative brochure in the committee file and on the Bill
Action and Status Inquiry System (BASIS) that helps explain what
USCG documentation is. He explained that the documentation
pertains to boats that have under five net tons of displacement.
He clarified that the terms "documented" and "undocumented" in
his presentation were with reference to boats with or without
USCG registration.
11:24:00 AM
MR. GRUENING explained that HB 31 would exempt certain
commercial fishing vessels from duplicative registration
requirements that were created by the passage of Senate Bill 92
during the Thirtieth Alaska State Legislature. This bill would
specifically remove the requirement for USCG documented vessels
with a current Commercial Fisheries Entry Commission (CFEC)
license to register every three years with the Division of Motor
Vehicles (DMV).
MR. GRUENING explained that prior to the passage of Senate Bill
92, USCG documented vessels were exempt from DMV registration
and that exemption was repealed under Senate Bill 92. As a
result, larger vessels fell under DMV's purview. The rationale
behind Senate Bill 92 was to provide the state and local
municipalities with a state-maintained database regarding vessel
ownership and operation, and vessel contact details.
MR. GRUENING noted that vessel licensure with CFEC already
requires annual renewal, and it provides necessary ownership
information in a state-maintained database. He remarked that
vessels already adhered to the original intent of Senate Bill
92. He noted that the sponsor's intent is that these operators
should not be required to register with DMV when pre-existing
registrations are already in place. He reiterated that HB 31
seeks to remove the duplicative registration process for these
vessels.
MR. GRUENING noted that one question to consider is who must
register with the CFEC, he stated that nearly all commercial
fishing vessels have this requirement. He remarked that the
CFEC licensed 7,413 vessels in 2024, 4,356 of which were USCG
documented vessels. He concluded by remarking that this is not
a free pass for commercial fishing vessels and renewal practices
still would be required. He said that HB 60 has overwhelming
support in the fishing industry. He also said that
registrations put a burden on DMV and the proposed legislation
would help alleviate workloads.
11:28:35 AM
REPRESENTATIVE HIMSCHOOT asked whether similar legislation was
passed before.
MR. GRUENING replied that this legislation passed last year, but
after midnight, and it was subsequently vetoed by the governor.
11:28:53 AM
REPRESENTATIVE KOPP remarked that HB 31 makes a lot of sense.
He asked for clarification for set-net fishermen in skiffs 24
feet or less. He said they are already exempt from CFEC
registration and currently register with the DMV. He asked
whether HB 31 bill would change this.
MR. GRUENING responded that skiffs associated with set netting
would not be required to register with the CFEC and would
continue registration with the DMV.
11:29:49 AM
CHAIR STUTES announced that HB 31 was held over.
11:30:50 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:30
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 60 Transmittal Letter 1.21.2025.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 60 version A.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 60 Sectional Analysis version A 1.27.2025.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 60 DOA FN 1.22.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 60 PowerPoint Presentation to HFSH 2.6.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 60 FN DCCED 1.22.25 2879.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 60 |
| HB 31 Sponsor Statement version A 1.25.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Version A 1.22.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Sectional Analysis Version A 1.25.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research 2025 Commercial_Fishing_Permit_Application.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research 2025 Commercial_Vessel_License_Application.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research CFEC Public Database 1.20.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research CFEC Vessel License Number Plate and Decal 1.26.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research DMV Registration FAQ - CFEC June 2019 1.20.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Research USCG Documentation and Tonnage Brochure 1.19.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 letter of support UFA 2025.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Fiscal Note-DFG-1.31.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Fiscal Note-DNR-1.31.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| HB 31 Fiscal Note-DOA-1.31.25.pdf |
HFSH 2/6/2025 11:00:00 AM HFSH 2/11/2025 10:00:00 AM |
HB 31 |
| Final Recommendations of the Joint Legislative Seafood Task Force 1.29.25.pdf |
HFSH 2/6/2025 11:00:00 AM |
Report |
| Final Recommendations of the Joint Legislative Seafood Task Force 1.29.25.pdf |
HFSH 2/4/2025 10:00:00 AM HFSH 2/6/2025 11:00:00 AM |
Joint Legislative Seafood Task Force Joint Legislative Task re: Alaska Seafood Industry |