Legislature(2021 - 2022)SENATE FINANCE 532

05/17/2021 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled: TELECONFERENCED
Heard & Held
Heard & Held
Heard & Held
CS FOR HOUSE BILL NO. 41(FIN)                                                                                                 
     "An Act  relating to management  of enhanced  stocks of                                                                    
     shellfish; authorizing  certain nonprofit organizations                                                                    
     to engage  in shellfish enhancement  projects; relating                                                                    
     to  application fees  for salmon  hatchery permits  and                                                                    
     shellfish enhancement project  permits; relating to the                                                                    
     marketing  of  aquatic  farm  products  by  the  Alaska                                                                    
     Seafood  Marketing  Institute;  and  providing  for  an                                                                    
     effective date."                                                                                                           
9:10:14 AM                                                                                                                    
Co-Chair Bishop relayed that it  was the first hearing of HB
41,  however   the  committee   had  already   heard  public                                                                    
testimony on, and passed, the companion legislation, SB 64.                                                                     
Senator   Hoffman   MOVED   to  ADOPT   proposed   committee                                                                    
substitute   for  CSHB   41(FIN),  Work   Draft  32-LS0291\G                                                                    
(Bullard, 5/13/21).                                                                                                             
9:11:04 AM                                                                                                                    
AT EASE                                                                                                                         
9:11:30 AM                                                                                                                    
Senator   Hoffman   MOVED   to  ADOPT   proposed   committee                                                                    
substitute   for  CSHB   41(FIN),  Work   Draft  32-LS0291\G                                                                    
(Bullard, 5/13/21).                                                                                                             
Co-Chair Bishop OBJECTED for discussion.                                                                                        
9:12:05 AM                                                                                                                    
ERIN  SHINE,  STAFF,  SENATOR CLICK  BISHOP,  spoke  to  the                                                                    
proposed  Committee  Substitute  (CS).   She  spoke  to  the                                                                    
changes from version I to version G:                                                                                            
     Deletes Sections 7-12 from Version I                                                                                     
     Removes the promotion of aquatic farm products from                                                                        
     the purview of the Alaska Seafood Marketing Institute.                                                                     
Ms.  Shine  added that  the  bill  also made  technical  and                                                                    
conforming   changes  pertaining   to  the   effective  date                                                                    
section. She  added that version  I had  previously provided                                                                    
additional powers to the  Alaska Seafood Marketing Institute                                                                    
(ASMI) board to market aquatic  farm product, in addition to                                                                    
commercially harvested seafood from  Alaska. She stated that                                                                    
ASMIs   current  seafood  marketing activities  were  funded                                                                    
from the  Seafood Marketing  Assessment under  AS 16.51.120,                                                                    
which was  not collected  from aquatic farms.  She furthered                                                                    
that it  was therefore  appropriate for the  aquatic farmers                                                                    
of fisheries such  as kelp, crab, and oysters to  first be a                                                                    
stable  market and  overtime be  able to  establish a  self-                                                                    
assessment to  contribute towards marking of  their products                                                                    
via ASMI before the removed  provisions of the previous bill                                                                    
version became law.                                                                                                             
9:13:24 AM                                                                                                                    
Co-Chair Bishop  asked whether the  sponsor agreed  with the                                                                    
proposed changes to the legislation.                                                                                            
9:13:37 AM                                                                                                                    
REPRESENTATIVE DAN ORTIZ, SPONSOR,  commented that HB 41 had                                                                    
the ASMI  provision as a  part of  the bill. He  shared that                                                                    
ASMI  was  currently   charged  with  marketing  wild-caught                                                                    
Alaskan seafood and was  currently prohibited from marketing                                                                    
aquatic farm products. He said  that without a change in the                                                                    
statute,  ASMI  could  not  market  farm  products  such  as                                                                    
oysters and  kelp. He  noted that  the bill  included sunset                                                                    
language  that limited  how long  ASMI could  market aquatic                                                                    
farm   products,  which   incentivized  the   industry,  the                                                                    
Department of Revenue, and ASMI  to determine a feasible way                                                                    
for the  industry to buy  in to  the marking. He  thought it                                                                    
was a  key point that  the bill would allow  for mariculture                                                                    
industry  to  seek grants  and  other  non-state funds  that                                                                    
could be used to cover marketing costs.                                                                                         
Representative Ortiz  relayed that when  he had spoken  to a                                                                    
representative from ASMI and had  been assured that ASMI had                                                                    
no intention of  using money donated by people  or groups to                                                                    
market  traditional products.  He stressed  that the  intent                                                                    
for ASMI was  to gain access to federal  resources that were                                                                    
specifically for the marketing of mariculture products.                                                                         
9:16:51 AM                                                                                                                    
Senator Hoffman  requested information about which  parts of                                                                    
the  state  contributed  to  the ASMI  budget.  He  did  not                                                                    
believe  the  testifier  had  answered   as  to  whether  he                                                                    
supported the CS.                                                                                                               
Representative Ortiz asserted that he  would like to see the                                                                    
passage of HB 41.                                                                                                               
9:17:44 AM                                                                                                                    
Senator  Olson  commented  on the  multi-management  of  the                                                                    
industry.  He  aske  whether the  commercial  crab  industry                                                                    
would be  solely managed  by the  Alaska Department  of Fish                                                                    
and Game (DF&G).                                                                                                                
Representative  Ortiz was  not  sure  he understood  Senator                                                                    
Olson's question.                                                                                                               
Senator Olson asked who would  be managing the crab industry                                                                    
in the Bering Sea.                                                                                                              
Representative Ortiz stated  that he did not  have an answer                                                                    
to the question.                                                                                                                
9:19:03 AM                                                                                                                    
Senator Olson restated his question.  He thought, looking at                                                                    
the  current  bill  version,  it  appeared  there  had  been                                                                    
consolidation  of shellfish  management in  his district  to                                                                    
SAM  RABUNG,  DIRECTOR,  COMMERCIAL FISHERIES,  JUNEAU  (via                                                                    
teleconference),  did not  think  that  the bill  referenced                                                                    
fisheries management. He relayed  that the bill pertained to                                                                    
the permitting of the  shellfish enhancement projects, which                                                                    
would be managed as shellfish were currently managed.                                                                           
Senator Olson  understood that  there was  no change  in the                                                                    
management system within the crab industry.                                                                                     
Mr. Rabung said that was correct.                                                                                               
Senator  Olson  asked  the sponsor  whether  enhancement  of                                                                    
shellfish farming included crab.                                                                                                
Representative Ortiz replied in the affirmative.                                                                                
9:20:43 AM                                                                                                                    
Senator  Wielechowski asked  whether  the  department had  a                                                                    
preference between the proposed  CS and the original version                                                                    
that came to the senate from the other body.                                                                                    
Mr. Rabung  replied that the CS  did not affect the  work of                                                                    
DF&G. He  revealed that  he was a  member of  the governor's                                                                    
Mariculture  Taskforce, and  one of  the goals  had been  to                                                                    
find a way to allow ASMI  to market all seafood and not only                                                                    
commercially harvested seafood.                                                                                                 
9:21:56 AM                                                                                                                    
Senator  Olson asked  the  sponsor whether  he  had been  in                                                                    
contact  with  any  of the  participants  of  the  Community                                                                    
Development Quota (CDQ) program in the affected areas.                                                                          
Representative Ortiz  had not  specifically been  in contact                                                                    
with  those  groups.  He  noted  that  United  Fishermen  of                                                                    
Alaska,  who represented  those groups,  were in  support of                                                                    
the bill.                                                                                                                       
9:22:40 AM                                                                                                                    
Senator  Wilson  supported   the  legislation.  He  wondered                                                                    
whether there  was additional language  that could  be added                                                                    
to  allow  for  federal   receipt  authority  or  additional                                                                    
9:23:25 AM                                                                                                                    
Senator Hoffman thought  there was a way to  do what Senator                                                                    
Wilson suggested.  He thought while  the bill wanted  to use                                                                    
ASMI  as a  marketing  agent,  the bill  did  not allow  for                                                                    
collection  of taxes  from aquatic  farms. He  thought there                                                                    
might be a way to include a tax that would fund the ASMI                                                                        
marketing activity.                                                                                                             
Co-Chair Bishop WITHDREW his objection. There being NO                                                                          
further OBJECTION, it was so ordered.                                                                                           
CSHB 41(FIN) was HEARD and HELD in committee for further                                                                        

Document Name Date/Time Subjects
SB 50 06 - Supp ProjectDetailByAgency.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
SB 50 05 - SCS1 ProjectDetailByHD.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
SB 50 03 - SCS1 Cap AgencySummary UGF.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
SB 50 02 - SCS1 Cap AgencySummary All Funds.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
SB 50 04 - SCS1 ProjectDetailByAgency.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
SB 50 01- SB 50 Version N, 16 May 2021.pdf SFIN 5/17/2021 9:00:00 AM
SB 50
HB 41 Explanation of Changes ver I to G 5.13.2021.pdf SFIN 5/17/2021 9:00:00 AM
SFIN 1/31/2022 1:00:00 PM
HB 41
HB 41 Work Draft ver. G 5.13.2021.pdf SFIN 5/17/2021 9:00:00 AM
SFIN 1/31/2022 1:00:00 PM
HB 41