10:22:54 AM AT EASE to 10:24:26 AM SENATE CS FOR CS FOR HOUSE BILL NO. 218(RES) "An Act relating to cost recovery fisheries for private nonprofit hatchery facilities." This was the second hearing for this bill in the Senate Finance Committee. IAN FISK, Staff to Representative Bill Thomas, noted the bill was heard in this Committee then returned to the Senate body with a recommendation for a Senate Resources Committee referral. That Committee held hearings and amended the bill. The changes improved the language and the sponsor maintains his support of the legislation. Mr. Fisk testified that hatcheries contract with a small number of fishing vessels to harvest salmon returning to the site of the hatchery. The revenue generated from these contracts is used to offset maintenance and operation expenses. This legislation would provide an alternative that would allow all permit holders in the area access to this resource with 50 percent of the sale of these fish paid to the hatcheries. The hatchery program would remain financially user-supported. 10:26:36 AM [Note Amendment #1 was not distributed] Amendment #2: This amendment deletes "annually" and inserts "by a majority vote of the membership of the hatchery permit holder's board," to subsection (b) of Sec 16.10.455. Cost of recovery fisheries., added in Section 1 of the committee substitute on page 1, line 11. The amended language reads as follows. (b) A hatchery permit holder may by a majority vote of the membership of the hatchery permit holder's board, elect to harvest surplus salmon produced at a facility in a terminal harvest area established for that facility through the common property fishery. … This amendment also inserts language following "area" in subsection (b) on page 2, line 7 to read as follows. Following adoption of regulations by the department, each year before March 1, the hatchery permit holder's board, by a majority vote of the board's membership, may determine whether the hatchery will operate under the regulations adopted under this subsection during the current calendar year, and shall notify the department if the hatchery intends to operate under the regulations adopted under this subsection. Senator Stedman moved for adoption and objected to provide an explanation. Senator Stedman stated this amendment clarifies that a majority vote of the hatchery permit holder's board would be required to implement this option. Senator Stedman pointed out that this cost recovery methodology is significantly different than the current funding mechanism for the hatcheries and has different risks associated with it. The provisions of this amendment would ensure that the board had considered these risks and the anticipated recovery. Senator Stedman removed his objection to the adoption of the amendment. There being no further objection the amendment was ADOPTED. 10:29:17 AM PETER ESQUIRO, General Manager, Northern Southeast Regional Aquaculture Association, testified via teleconference from Sitka in appreciation of the adoption of the amendment, which addresses concerns of the Association. He informed that the Association meetings normally are held within the first ten days of each March in accordance with the bylaws. The March 1 deadline to select this option would require the board to reach a decision before the meetings. He requested that date be changed to March 10. 10:30:59 AM Amendment #3: This conceptual amendment changes the deadline in which a determination must be made regarding this program from March 1, as stipulated in Amendment #1, to March 10. Senator Stedman moved for adoption. The amendment was ADOPTED without objection. 10:31:29 AM Co-Chair Wilken offered a motion to report SCS CS HB 218(RES), as amended, from Committee with individual recommendations and new fiscal notes. There was no objection and SCS CS HB 218 (FIN) was MOVED from Committee with zero fiscal notes from the Department of Commerce, Community and Economic Development dated 4/3/06, the Department of Fish and Game dated 4/4/06, and the Department of Public Safety dated 4/6/06 and an indeterminate fiscal note from the Department of Revenue dated 4/4/06.