SB 113-EXTEND FISHERY RESOURCE LAND. TAX CREDIT  4:47:39 PM CHAIR REVAK reconvened the meeting and announced the consideration of SENATE BILL NO. 113 "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." 4:48:00 PM SENATOR DONNY OLSON, Alaska State Legislature, Juneau, Alaska, sponsor of SB 113, explained the bill extends the termination date of the fishery resource tax credit. This will allow the Western Alaska Community Development Quota (CDQ) Program to continue its essential function to many of Alaska's rural coastal villages. The program is based on the landing tax credit for fish, which provides economic development in Western Alaska. He reminded members that they heard and passed an identical bill last year, but it did not make it through the process before the legislature adjourned due to the COVID-19 pandemic. The sunset was in 2020 and SB 113 seeks to revive and extend the program to 2030. He noted who was available to speak on the bill and deferred further introduction to Mr. Truitt. 4:49:15 PM KEN TRUITT, Staff, Senator Olson, Alaska State Legislature, Juneau, Alaska, stated the bill last year was a sunset extension bill. This year SB 113 is identical in form, and it extends the Western Alaska Community Development Quota Program to December 31, 2030. 4:49:51 PM SENATOR VON IMHOF described SB 113 as fairly simple and a good bill. She paraphrased the final paragraph of the sponsor statement that read as follows: The Department of Revenue and Legislative Finance Division states that the legislative intent has been met and recommended continuation of the program (January 2019 Indirect Expenditure Report, page 14). The estimated Revenue Impact for FY2013- FY2017 was an average of $553,558.60, while no revenue is foregone by the state. This tax credit program continues serving its purpose by attracting donations each year to Alaska nonprofit corporations that are dedicated to continually improving our fisheries. 4:50:09 PM CHAIR REVAK opened public testimony on SB 113. 4:50:37 PM NORM VAN VACTOR, President and Chief Executive Officer, Bristol Bay Economic Development Corporation (BBEDC), Dillingham, Alaska, thanked the sponsor for introducing SB 113 to extend the sunset date for the fisheries landing tax credit for taxpayers that harvest resources under the provisions of the Community Development Quota Program. He related that BBEDC was one of the six Alaska CDQ corporations; it represents 17 coastal communities. MR. VAN VACTOR stated the CDQ Program provides Alaska communities along the Bering Sea coast with harvest quotas in the federal water fisheries of the exclusive economic zone (EEZ). The returns are invested in the fisheries, fisheries programs, and regional development programs to provide employment and educational opportunities for community residents. MR. VAN VACTOR explained that BBEDC's for-profit fishing partners who are harvesting the CDQ quota are eligible to participate in the tax credit program. BBEDC relies on this program to supplement the Bristol Bay Science and Research Institute and BBEDC's collaborative work with ADF&G. He said these efforts are critical in providing stable research funding that directly benefits the state, region, and health of the salmon resource. Extending the program to 2030 would provide stability for long term planning in the region and further solidifies the collaborative work with ADF&G and other members of the Bristol Bay collaborative. 4:52:58 PM JENNIFER WILLIAMS, Government Affairs, Yukon Delta Fisheries Development Association (YDFDA), Anchorage, Alaska, stated the YDFDA is the CDQ entity that represents 3,400 residents from six communities in the Yukon Delta. The CDQ program provides fishery and economic benefits to resident fishermen, their families, and the entire region, which is one of the most economically challenged in the U.S. She related that YDFDA uses the Fishery Resource Landing Tax Program to offset the amounts spent annually to support fishery research and monitor studies on the Yukon River in collaboration with ADF&G. Area residents are employed to every extent possible. She described the different test fishing and monitoring activities on the Lower Yukon that the credits help pay for and noted the data from these test fisheries are used to predict both commercial and subsistence openings. She emphasized the value of this scientific information to both ADF&G and the economic wellbeing of the region. She expressed appreciation for this well-administered program and urged the legislature to extend the sunset date. 4:56:04 PM HEATHER MCCARTY, representative, Central Bering Sea Fishermen's Association (CBSFA), St. Paul, Alaska, stated CBSFA is one of the six CDQ groups and the one that represents St. Paul in the Pribilof Islands. She said the community depends on both the small boat halibut fishery and the crab fishery in the Bering Sea, and has relied heavily on the program since inception. She related that CBSFA has not only conducted a great deal of research on both halibut and crab, they also have been able to fund a college scholarship program. She stated hearty support for SB 113 and the extension of the tax credit program. 4:57:13 PM ANGEL DROBNICA, representative, Aleutian Pribilof Island Community Development Association (APICDA), Juneau, Alaska, stated APICDA represents six remote communities in Southwest Alaska and is one of the six CDQ entities whose mission is to increase direct participation in the Bering Sea and Aleutian Islands fisheries, and help develop a sustainable fisheries- based economy. She explained APICDA uses the revenue generated from its quota holdings and fisheries investments to create jobs, build infrastructure, provide scholarships and workforce training, and help support a range of local initiatives and projects with grant programs to eligible community entities. She stated support for SB 113 and the continuation of the Resource Landing Tax Credit Program. Under this program, APICDA's harvest partners have the opportunity to attribute a portion of their landing tax liability from the harvest of the CDQ quota for Pacific fisheries investments. She said this has been a very meaningful program and APICDA encourages the committee to advance the bill. 4:58:38 PM CHAIR REVAK discerned that no one else wished to comment, and closed public testimony on SB 113. CHAIR REVAK found no questions or comments and asked the will of the committee. 4:59:06 PM SENATOR VON IMHOF moved to report SB 113, work order 32- LS0719\A, from committee with individual recommendations and attached fiscal note(s). 4:59:21 PM CHAIR REVAK found no objection and SB 113 moved from the Senate Resources Standing Committee.