HB 318 - WANTON WASTE OF SALMON CHAIRMAN AUSTERMAN announced that the next order of business would be HB 318, "An Act relating to waste of salmon." He stated that the committee heard the bill once before and he believed that some amendments to the bill would be discussed. TOM WRIGHT, Legislative Assistant to Representative Ivan, stated that there are two amendments to HB 318. Number 0316 REPRESENTATIVE IVAN moved to adopt Amendment 1 for discussion purposes. Amendment 1, 0-LS130\A.3, reads as follows: Page 1, line 14, following "fish,": Insert "bait," Page 2, following line 1: Insert a new bill section to read: Sec.2 AS 16.10.450 is amended by adding new subsections to read: (c) Except as provided by (d) and (e) of this section, a hatchery operator is subject to AS 16.05.831. (d) Notwithstanding AS 16.05.831, a hatchery operator who takes eggs or sperm for use in a hatchery or a related salmon culture facility from adult salmon returning to the locations designated by the department under AS 16.10.420 shall provide for the utilization of the flesh of the salmon from which eggs or sperm are taken unless the hatchery operator determines that the flesh is not fit for human consumption and that it is not economical to provide for utilization of the flesh. (e) Notwithstanding AS 16.05.831, if the commissioner issues a permit authorizing the stripping and commercial sale of eggs from adult salmon taken at locations designated by the department under AS 16.10.420, a hatchery operator may strip eggs from the salmon for commercial sale and dispose of the flesh of the salmon in accordance with procedures prescribed by the commissioner in the permit. The commissioner may issue a permit authorizing the stripping of eggs from salmon and disposal of the salmon carcasses by a hatchery operator if the commissioner determines that sufficient salmon eggs will be recovered to continue operation of the hatchery and related salmon culture facilities and to provide salmon eggs to other hatcheries, that the flesh of the salmon carcasses is not fit for human consumption, and that it is not economically feasible to use the flesh of the salmon in a manner consistent with AS 16.05.831. The fee for a permit issued under this subsection is equal to 50 percent of the net proceeds earned from the sale of the salmon eggs to a seafood processor or other purchaser. The commissioner shall adopt regulations as necessary to implement this subsection and shall seek to promote the maximum practical use of the flesh of salmon harvested by hatchery operators. Permit fees collected under this subsection and shall be deposited into the general fund. The legislature may appropriate money collected under this subsection to the Department of Fish and Game, division of commercial fisheries management and development." Number 0319 MR. WRIGHT explained that there was some discussion about whether hatcheries would fit under the wanton waste laws and instead of revising the wanton waste laws, the drafter felt that it was more appropriate to put the wanton waste prohibition under the hatchery statutes, rather than the wanton waste statutes. It does exclude hatcheries from wanton waste when they take milt and eggs for broodstock and those carcasses are not fit for human consumption can be disposed of in the most economical way possible. He stated that Section (E) states that if there is broodstock that returns to the hatchery in excess of cost recovery for milt and egg take, the broodstock may be roe stripped but with the proviso that 50 percent of the net proceeds will go to the department and the other 50 percent will go back to the hatchery. He stated that this was to discourage managing for an excessive broodstock. He stated this would cover the cost incurred for the disposal of carcasses that are unfit for human consumption. Number 0344 REPRESENTATIVE HODGINS stated that he would like to offer an amendment to the Amendment 1. He stated that it would delete on page 2, lines 1-7, "The fee for a permit issued under this subsection is equal to 50 percent of the net proceeds earned from the sale of the salmon eggs to a seafood processor or other purchaser." Number 0355 CHAIRMAN AUSTERMAN asked that in other words Representative Hodgins would like to gut the essence of the proposed amendment. REPRESENTATIVE HODGINS replied yes. CHAIRMAN AUSTERMAN asked if there was an objection on the amendment to Amendment 1. REPRESENTATIVE IVAN objected. Number 0357 REPRESENTATIVE HODGINS stated that he did not think there should be a fee involved with the bill and that there is an economic damage in having the fee more so than the punitive advantage for having fee in there. MR. WRIGHT stated that if it was going to be done correctly on page 2, lines 4-7 would have to be deleted as well. REPRESENTATIVE HODGINS stated that he would then include in the amendment to Amendment 1, the deletion of the language, "Permit fees collected under this subsection shall be deposited into the general fund. The legislature may appropriate money collected under this subsection to the Department of Fish and Game, division of commercial fisheries management and development." Number 0368 CHAIRMAN AUSTERMAN stated that he would accept that as part of the amendment to Amendment 1. He stated that the reason that language is included in the proposed amendment is to try and discourage hatcheries from overestimating the amount of broodstock that they will take. He asked Representative Hodgins if he thought hatcheries should be able to take more broodstock than necessary. Number 0376 REPRESENTATIVE HODGINS stated that he had a problem with the fee structure. Number 0376 CHAIRMAN AUSTERMAN asked if Representative Hodgins if he thought there was any way that they should be controlling the excess brood stock. Number 0378 MR. WRIGHT stated that it one of the safeguards to keep from managing for excessive broodstock. He stated that there are requirements for the hatcheries in the disposal of the fish that are not used for broodstock. He stated that this is a mechanism to get rid of the excessive broodstock and not incur any more cost but yet not allow for carte blanche roe stripping. Number 0393 CHAIRMAN AUSTERMAN asked for a roll call vote on the amendment to Amendment 1. Representative Hodgins voted in favor of the amendment to Amendment 1. Representatives Ivan, Ogan and Austerman voted against it. Representative Kubina was absent. The amendment to Amendment 1 failed. Number 0402 CHAIRMAN AUSTERMAN stated that the original Amendment 1 was back before the committee. He asked if there was an objection. REPRESENTATIVE HODGINS objected. Number 0407 CHAIRMAN AUSTERMAN called for a roll call vote. Representative Hodgins voted against Amendment 1. Representatives Ivan, Ogan and Austerman voted in favor of it. Representative Kubina was absent. Amendment 1 was adopted. REPRESENTATIVE IVAN made a motion to adopt Amendment 2 which reads: Page 1, Line 3: Insert a new bill section to read: "Section 1. INTENT. It is the intent of this legislation that the stripping of salmon roe for cost recovery purposes by hatcheries is prohibited. The only exception is the selling of roe form broodstock, commonly referred to as excessive broodstock, which has returned in numbers larger than anticipated by the hatchery and the Department of Fish and Game and is not fit for human consumption. The roe of that excessive broodstock may be stripped and sold after the hatchery has obtained a permit from the department for that exclusive purpose." Renumber the following sections accordingly. Number 0424 MR. WRIGHT stated that this is to just clarify what the intent of the legislation is, that the stripping of salmon roe for cost recovery is prohibited with the exception of broodstock. He stated that the drafter could not find a way to use the term excessive broodstock. The proposed Amendment 2 is to clarify that there is a difference between the cost recovery, broodstock and excessive broodstock. The point is that the excessive broodstock is what the bill talks to. Number 0433 CHAIRMAN AUSTERMAN stated that if there is no further discussion he would call for a roll call vote. Representative Hodgins voted against Amendment 2. Representatives Ivan and Austerman voted in favor of Amendment 2. Representatives Kubina and Ogan were absent. He stated that Amendment 2 failed. Number 0438 REPRESENTATIVE HODGINS made a motion to reconsider Amendment 2. Number 0439 CHAIRMAN AUSTERMAN called for a brief at ease. Number 0439 CHAIRMAN AUSTERMAN called the meeting back to order. He stated that there is a reconsideration on Amendment 2 by Representative Hodgins. A roll call vote was taken Representative Hodgins voted against Amendment 2. Representatives Ivan, Ogan and Austerman voted in favor of Amendment 2. Amendment 2 was adopted. Number 0448 CHAIRMAN AUSTERMAN stated that he would table CSHB 318(FSH) as Representative Hodgins has requested to talk to John White, Chairman of the Board of Fisheries and he is now on teleconference. HB 318 - WANTON WASTE OF SALMON Number 0350 CHAIRMAN AUSTERMAN stated that they would now continue with HB 318, as amended and asked it there is any further discussion. REPRESENTATIVE IVAN made a motion to move out CSHB 318(FSH) with individual recommendations and the attached fiscal note. REPRESENTATIVE HODGINS objected. Number 0422 CHAIRMAN AUSTERMAN called for a roll call vote. Representative Hodgins voted against the motion. Representatives Ivan, Ogan and Austerman voted in favor of the motion, therefore CSHB 318(FSH) moved out of the House Special Committee on Fisheries.