Legislature(2017 - 2018)GRUENBERG 120
05/11/2017 10:00 AM House FISHERIES
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| Audio | Topic |
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| Start | |
| Presentation: Alaska Salmon Price & Production Report by Department of Revenue | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
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| + | TELECONFERENCED | ||
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ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
May 11, 2017
10:01 a.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Zach Fansler
Representative Jonathan Kreiss-Tomkins
Representative Geran Tarr
Representative David Eastman
Representative Mark Neuman
MEMBERS ABSENT
Representative Mike Chenault
COMMITTEE CALENDAR
PRESENTATION: ALASKA SALMON PRICE & PRODUCTION REPORT BY
DEPARTMENT OF REVENUE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ELIZABETH NUDELMAN, Fish Manager
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Co-presented the Alaska Salmon Price and
Production report.
MIKE KAZMAC, Auditor
Fish Group
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Co-presented the Alaska Salmon Price and
Production report.
ACTION NARRATIVE
10:01:17 AM
CHAIR LOUISE STUTES called the House Special Committee on
Fisheries meeting to order at 10:01 a.m. Representatives
Stutes, Kreiss-Tomkins, Fansler, Eastman, and Neuman were
present at the call to order. Representative Tarr arrived as
the meeting was in progress.
^Presentation: Alaska Salmon Price & Production Report by
Department of Revenue
Presentation: Alaska Salmon Price & Production Report by
Department of Revenue
10:01:57 AM
CHAIR STUTES announced that the only order of business would be
a presentation on the Alaska Salmon Price & Production reports
by the Department of Revenue.
10:02:34 AM
ELIZABETH NUDELMAN, Fish Manager, Tax Division, Department of
Revenue (DOR), made introductions and then deferred to the
agency auditor.
10:03:20 AM
MIKE KAZMAC, Auditor, Fish Group, Tax Division, Department of
Revenue (DOR), directed attention to the committee packet and
the handout titled, "Overview of the Alaska Salmon Price and
Alaska Salmon Production Reports; May 11, 2017," and explained
that Alaska Statute 43.80 requires salmon processors who sell at
least one million pounds of salmon products at wholesale to file
price and production reports, which are then aggregated by the
DOR Fish Tax Division. Processors must file four reports during
the calendar year, which are: an annual production report of
the quantity of salmon products produced; and three tri-annual
price reports for monthly data of wholesale sales activities for
the yearly periods of January-April, May-August, and September-
December. He said that under AS 43.80, there are six reportable
salmon product forms, which are filed and pertain to species,
the reporting period, weight/cases, value, and other elements.
The six, reportable salmon products are: 1) thermally processed
salmon products, 2) fresh headed and gutted salmon products, 3)
fresh fillet salmon products, 4) frozen headed and gutted salmon
products, 5) frozen fillet salmon products, and 6) salmon roe
products. The purpose of the filing is to provide information
about wholesale salmon prices and production to the public.
However, not all salmon products are required to be reported.
Excluded products include salmon oil, salmon skins, and salmon
by-products.
10:06:22 AM
MS. NUDELMAN added that the DOR website provides all the
reports, beginning in 1980. In 1988, the reports were expanded
to include thermal products, and also increased the threshold of
reporting.
10:07:32 AM
REPRESENTATIVE FANSLER asked about thermally processed products.
MR. KAZMAC responded that these are products which have been
cooked and sealed, and include canned and pouched items. The
canning section of the report is size specific from one-quarter
pound to four pound containers.
10:08:20 AM
MR. KAZMAC said the processors report monthly sales activity for
each salmon species, product form, and areas of production
designated as Southeastern and Yakutat, Kodiak, Bristol Bay, or
other. When all of the processors have filed the price reports
for a given period, DOR runs a check for data anomalies.
Confidentiality tests are performed, as well, to prevent the
publication of any sensitive taxpayer data. He said anomalies
in salmon price reports may occur in the information received
from the processors, such as over-reporting of sales for a given
month or the actual price per pound amounts received.
10:09:39 AM
REPRESENTATIVE NEUMAN asked if industry holds incentives for
misreporting.
MR. KAZMAC replied that there would be no specific reason for
the errors, which are usually attributable to typographical
mistakes or misplaced decimals.
10:10:20 AM
MR. KAZMAC said the confidentiality tests, for a given month,
are reported when: there are three or more processors for a
given area; no one processor has over 80 percent of the total
value; and no two processors have over 95 percent of the total
value. Following the data and confidentiality tests, DOR
publishes the Salmon Price report. He referred to the committee
handout, pages 8-16, to point out the series of tables that
comprise the most recent, 8 page, tri-annual Alaska Salmon Price
report, for the period 9/1/16-12/31/16. The report includes the
headed and gutted statistics, which are the bread and butter of
Alaska's fish report. The reports begins with two summary pages
by species and product, and the remaining pages are the detailed
information.
10:14:42 AM
CHAIR STUTES noted that the report represents numerous man hours
on the part of industry and the state to report, compile, and
publish, and asked, "What's the value of this report to the
state?"
10:15:05 AM
MR. KAZMAC responded that the purpose of the report is to
provide fisherman an idea of the price processors receive for
their finished product, and economists use the report to monitor
the health of the industry.
CHAIR STUTES surmised that there is no direct monetary value
associated with the reports.
MR. KAZMAC said correct.
CHAIR STUTES requested an estimate of what it costs to compile
the quarterly information.
MR. KAZMAC offered to provide further information.
10:16:22 AM
REPRESENTATIVE NEUMAN expressed similar concern and said the
report has multiple, associated costs without any direct,
monetary benefits to the state.
10:17:01 AM
CHAIR STUTES asked if the report reflects the ex-vessel value of
the fish, or the finished product.
MR. KAZMAC said all the data reflect finished products.
10:17:27 AM
REPRESENTATIVE KREISS-TOMKINS inquired whether another agency
compiles the ex-vessel value.
MR. KAZMAC responded that the ex-vessel value is compiled by
Alaska Department of Fish & Game (ADF&G), a well as DOR.
10:18:11 AM
CHAIR STUTES questioned whether the data might be available
through any other venue, such as the e-landing system.
MR. KAZMAC replied, "Not to my knowledge." He offered that
ADF&G compiles a production report as part of their core
services, and deferred further comment.
CHAIR STUTES asked whether the information collected by the
different agencies could be shared and electronically
interfaced.
MR. KAZMAC said the dates for receiving the data and the
reporting requirements are not in alignment between the
agencies.
CHAIR STUTES opined that the reporting efforts may be redundant.
10:20:18 AM
REPRESENTATIVE NEUMAN asked whether the requirement for the DOR
report is held in statute.
MS. NUDELMAN replied that the DOR reports are required by
statute. Further, the information is electronically compiled at
DOR, and the reports issued with confidential tax information in
mind. Regarding the core report information issued by ADF&G,
there may be duplication, which could be a point for review, she
suggested, and offered to provide further information.
REPRESENTATIVE NEUMAN queried whether the information is
regularly requested by different groups and organization, or
simply made accessible as a public service.
MR. KAZMAC said that members of the media and economists use the
information, as does the Alaska Seafood Marketing Institute
(ASMI).
10:23:07 AM
CHAIR STUTES maintained her interest in discovering any
redundancy in the collection and reporting efforts by the
agencies.
MS. NUDELMAN agreed that ADF&G does collect some of the same
information as is required by DOR. Confidentiality guidelines
would be held by that agency, also. A review would need to be
conducted to identify any overlap or redundancy.
10:25:00 AM
MR. KAZMAC moved onto the Annual Salmon Price Report, which DOR
publishes annually by combining the three tri-annual processor
price reports, and any adjustments for the calendar year. Of
all the reports, he said, this is the one that generates the
least feedback. It is published because of statutory
requirement. He reviewed the three page report and the contents
on each, referring to the committee handout pages 18-20.
Finally, he directed attention to pages 22 and 23, to introduce
the final report, the Annual Salmon Production Report, which
shows the quantity of salmon products, as produced, by
processor. All of these reports are available on the DOR
website, he finished. To a committee question, he said that
five major areas, previously mentioned, are reported on but
smaller locales are not, in order to maintain tax reporting
anonymity requirements. The identification of certain
processors cannot be held in confidence, when they are the sole
operator in an area.
10:30:28 AM
REPRESENTATIVE NEUMAN returned to the question of redundancy and
the statutory requirements for reporting. He said that, as the
legislature continues to seek out government efficiencies, it
appears that this is an area in need of scrutiny. The value of
the report after forty years should be visited, and questioned
as whether or not to maintain the requirement in statute.
10:31:57 AM
CHAIR STUTES interjected that ASMI may be asked to comment on
how the report is utilized for its programs; perhaps to great
advantage of the state.
CHAIR STUTES thanked the participants.
10:32:45 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 10:32
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DOR Overview of Salmon Price and Production Reports - House Fisheries 5.11.17.pdf |
HFSH 5/11/2017 10:00:00 AM |
Salmon Price Production Report |
| 2016 Annual Price Report.pdf |
HFSH 5/11/2017 10:00:00 AM |
Salmon Price Production Report |
| 2016 Annual Production Report.pdf |
HFSH 5/11/2017 10:00:00 AM |
Salmon Price Production Report |
| 2016 Sept Dec Price Report.pdf |
HFSH 5/11/2017 10:00:00 AM |
Salmon Price Production Report |