Legislature(1993 - 1994)
04/18/1994 03:35 PM Senate RES
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SENATE RESOURCES COMMITTEE
April 18, 1994
3:35 P.M.
MEMBERS PRESENT
Senator Mike Miller, Chairman
Senator Loren Leman, Vice Chairman
Senator Steve Frank
Senator Drue Pearce
Senator Al Adams
Senator Dave Donley
Senator Fred Zharoff
MEMBERS ABSENT
None
COMMITTEE CALENDAR
HOUSE BILL NO. 191
"An Act relating to cost recovery by contractors who operate
state-owned hatcheries."
SENATE BILL NO. 341
"An Act extending the termination date of the Alaska Tourism
Marketing Council; and providing for an effective date."
SENATE BILL NO. 193
"An Act relating to unfair discrimination under group disability
insurance; and providing for an effective date."
SCR 20 REOPENING ALASKA-JUNEAU MINE
SCHEDULED, BUT NOT HEARD THIS DAY
PREVIOUS ACTION
HB 191 - No previous action to record.
SB 341 - See Labor & Commerce minutes dated 3/10/94.
SB 193 - See Labor & Commerce minutes dated 3/24/94 and
3/28/94.
WITNESS REGISTER
Bruce Bachen
Northern Southeast Regional Aquaculture Association
1308 Sawmill Creek Rd.
Sitka, Ak. 99835
POSITION STATEMENT: Supported HB 191.
Jeff Olsen, Operations Manager
Prince William Sound Aquaculture Corporation
P.O. Box 1110
Cordova, Ak. 99574
POSITION STATEMENT: Supported HB 191.
Jerry McCune, President
United Fishermen of Alaska
Juneau, Ak. 99801
POSITION STATEMENT: Supported HB 191 and HB 398.
Ron Swanson, Director
Division of Lands
P.O. Box 107005
Anchorage, Ak. 99510-7005
POSITION STATEMENT: Supported HB 398.
Lee Sharp
Aleutian East Borough
426 L Street
Anchorage, Ak. 99501
POSITION STATEMENT: Supported HB 398.
ACTION NARRATIVE
TAPE 94-37, SIDE A
Number 001
CHAIRMAN MILLER called the Resources Committee meeting to order at
3:35 p.m. and announced HB 191 (CONTRACTOR OPERATED STATE
HATCHERIES) to be up for consideration.
REPRESENTATIVE WILLIAMS, sponsor, said many aquaculture
associations have been cooperative about operating many hatcheries
under contract rather than see them close down for lack of state
funding. The language in current law has caused some logistical
and financial problems for the contractors which has made it
unfeasible to get some of the state's hatcheries under contract.
The law only allows cost recovery funds generated at the state
owned hatchery to be used for the operation of that facility, so
the funds cannot go to other facilities, if they have a bad year.
This places an unfair financial risk on groups we are trying to
convince to accept the responsibility of running our state
hatcheries, REPRESENTATIVE WILLIAMS said.
Under this bill cost recovery money can flow in both directions
between the contractors who own the facilities and those contracted
to run facilities for the state.
This bill is supported by the aquaculture associations, the UFA,
and the ADF&G. No one has expressed opposition to the bill, he
concluded.
Number 80
BRUCE BACHEN, Northern Southeast Regional Aquaculture Association,
supported HB 191, because it allows them to have a single financial
plan for the corporation. The strength of the overall program is
enhanced by diversification of all of the species that they raise
and all the sites they operate. It's healthy to allow one project
to depend on another because of the fluctuations in the market.
Allowing revenues generated by cost recovery to be used for capital
construction is another good point of the bill, he said.
JEFF OLSEN, Operations Manager, Prince William Sound Aquaculture
Corporation, read a letter from the Corporation in support of HB
191.
JERRY MCCUNE, President, United Fishermen of Alaska, supported HB
191. He said one of the problems is that Gulkana hatchery has no
cost recovery, so they have to take funds out of the existing
hatchery. This way they could move funds from hatchery to
hatchery.
Number 173
SENATOR ADAMS moved to pass HB 191 from committee with individual
recommendations. There were no objections and it was so ordered.
SENATOR MILLER announced SB 341 (EXTEND TOURISM MARKETING COUNCIL) )
to be up for consideration.
SENATOR ADAMS asked why there was a CS, since at the last meeting
they were just going to extend the date of the Tourism Marketing
Association.
SENATOR MILLER explained that the 25% was added, because he and
other people felt that the industry needed to do more in
contributing into the marketing programs, especially in a time of
declining revenues.
SENATOR ADAMS said he did not support that increase, but he did
support the extension of the Council.
SENATOR LEMAN moved to adopt the CS to SB 341. SENATOR ADAMS
objected. SENATORS MILLER, LEMAN, FRANK, and PEARCE voted yes;
SENATOR ZHAROFF and ADAMS voted no; and the CS was adopted.
SENATOR ZHAROFF noted that there was a two year extension instead
of four. SENATOR MILLER said that this was so the legislature
could timely review their progress.
KAREN COWARD, Executive Director, Alaska Visitors Association,
supported the Alaska Tourism Marketing Council and did not support
the CS to SB 341. The Council markets Alaska as a destination to
the Unites States and Canada. Advertising rates in the Vacation
Planner have increased across the Board almost every year. If they
continue to raise rates, some businesses have indicated they will
no longer be able to participate in the state's cooperative
marketing program. It's in the best interest of the state and the
population of Alaska to continue funding the Tourism Marketing.
SENATOR FRANK said he thought the match was budgeted at 22%. MS.
COWARD said the match was budgeted at 20%. This was based on a $7
million state program for last year. This fiscal year it is $4.492
million. She explained as the industry dollars go down, the
program becomes less effective and their ability to attract
advertisers in the Vacation Planner will go down. Advertising is
where they get their matching money.
SENATOR PEARCE asked her to explain why Holland America was so far
out of line. MS. COWARD said they often take 300 - 500 travel
agents through an inside passage trip. They bring people up to
market Alaska generically, not just their tours.
Number 310
SENATOR LEMAN moved to discharge CSSB 341 (RES) with individual
recommendations. SENATOR ADAMS objected. SENATORS MILLER, LEMAN,
PEARCE, and FRANK voted yes; SENATOR DONLEY, ADAMS, and ZHAROFF
voted no, and the bill passed from committee.
SENATOR MILLER announced HB 398 (LAND CONVEYED TO & FROM
MUNICIPALITIES) to be up for consideration.
DAVE KAMRATH, Legislative Aide to Representative Harvey Olberg,
read a sponsor statement.
RON SWANSON, Director, Division of Land, supported the concepts
embodied in this bill.
SENATOR DONLEY asked when the options occur if there was a mandated
conveyance. MR. SWANSON said he understands that when the four
conditions have been met, the Commissioner has no authority, but to
convey to the municipality. To eliminate a conflict, if there is
a greater public interest, he suggested using "may" instead of
"shall."
SENATOR DONLEY said he supported using "may."
SENATOR PEARCE asked how many other situations exist that he knows
of where this bill could help. MR. SWANSON said that Skagway is
the only one he is aware of.
SENATOR ADAMS mentioned one other place. He said he has an
amendment requiring public hearings, making it optional, having it
be in the best interests of our state, and having no critical
habitat in it.
LEE SHARP, Aleutian East Borough, supported HB 398.
JERRY MCCUNE, representing himself, said he is interested in this
bill because of the way it affects the small house owner where they
have built a little bit over, or the surveyors made a mistake and
their house is on state land by 2 or 3 inches or a couple feet.
This would give the municipalities a way to trade that land and
solve some problems for the home owner who can't get title to their
property right now and close their loans.
SENATOR DONLEY commented that it was a pretty big leap from not
being able to transfer to being mandated to transfer when
conditions are met, whether or not it's in the public interest.
SENATOR MILLER noted that Senator Adams was working with that issue
before bringing the bill up again.
SENATOR MILLER adjourned the meeting at 4:15 p.m.
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