Legislature(2019 - 2020)GRUENBERG 120
03/21/2019 11:15 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| HB41 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 41 | TELECONFERENCED | |
HB 41-SHELLFISH ENHANCE. PROJECTS; HATCHERIES
11:19:20 AM
CHAIR STUTES announced that the only order of business would be
HOUSE BILL NO. 41, "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 providing for
an effective date."
11:19:35 AM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, explained
that the [Alaska] fishing industry generates about 6 billion
dollars a year in economic activity. He stated that fisheries
are renewable resources which continually benefit the state. He
went on to say that HB 41 is designed to enhance Alaska's
shellfish industries. Representative Ortiz explained that HB 41
would allow qualified non-profits to prefer enhancement and or
restoration projects involving shellfish species including red
and blue king crab, sea cucumber, abalone, and razor clams. He
continued his explanation by saying the bill would create a
regulatory framework which would enable the Alaska Department of
Fish & Game (ADFG) to manage shellfish enhancement projects and
outline criteria for issuance of permits. It would set out
stringent safety standards to ensure sustainability and health
of existing natural stocks. The commissioner of ADFG would have
to determine that there was substantial public benefit before a
project could proceed. Representative Ortiz explained the bill
would set the application fee for shellfish enhancement projects
to one thousand dollars and would increase the salmon hatchery
fee to the same amount. He summed up his testimony by saying HB
41 had an important role for the mariculture industry in Alaska
by providing a method for increased harvest of shellfish for
public use.
11:23:41 AM
REPRESENTATIVE KREISS-TOMKINS asked if HB 41 was a "letter for
letter" replacement of House Bill 28 in its final form from the
2018 legislature.
11:24:06 AM
REPRESENTATIVE ORTIZ answered yes.
11:24:21 AM
REPRESENTATIVE EDGMON stated the bill seems like an economic
development bill, then asked if ADFG was supportive of the bill.
11:24:40 AM
REPRESENTATIVE ORTIZ answered that the department was in support
of the previous bill and the new bill was a mirror of that bill.
11:25:17 AM
SAM RABUNG, Director, Commercial Fisheries Division, Alaska
Department of Fish & Game, said that Representative Ortiz was
correct; last year the department was in support. This year
there hadn't been any direction from the current administration,
so the departments view was neutral.
11:25:52 AM
REPRESENTATIVE NEUMAN asked if the increase in cost for hatchery
permits covered the operating costs to the department.
11:26:19 AM
MR. RABUNG answered that the department processes very few
hatchery permits. Then he explained that with the proposed new
shellfish permitting process, it was thought there should be
equity between the permit fees.
11:27:40 AM
REPRESENTATIVE KOPP asked if shellfish enhancement was a growing
industry in Alaska.
11:27:59 AM
MR. RABUNG explained that the aquatic farming industry was
growing and had been since 1988. He said aquatic farming was
similar to terrestrial farming in that the farmer owns the
product from when it was planted to when it was harvested; with
enhancement the product is not owned until it is harvested. The
intention of the bill would be to provide additional harvestable
surplus for existing common property fisheries.
REPRESENTATIVE KOPP asked if Mr. Rabung was aware of anything in
the legislation that had to do with macro algae or kelp.
MR. RABUNG replied that the bill only dealt with invertebrates
so there wasnt a macro algae component in the bill.
11:29:40 AM
REPRESENTATIVE KREISS-TOMKINS asked for clarification regarding
whether it was correct that the department received less than
one private nonprofit hatchery application per year on average.
11:30:21 AM
MR. RABUNG confirmed that is correct.
11:30:33 AM
REPRESENTATIVE NEUMAN asked if there was a way to protect
mariculture farms from marine mammals.
MR. RABUNG explained that the sea otter is the marine mammal
that would interact with the farmed species the most. He
confirmed that the sea otter population was growing quickly and
having consequences on marine fisheries. He explained sea
otters are under the jurisdiction of the federal Marine Mammal
Protection Act, which makes it difficult to take any adverse
actions.
11:32:36 AM
CHAIR LOUISE STUTES opened public testimony on HB 41.
11:33:06 AM
JULIE DECKER, Executive Director, Alaska Fisheries Development
Foundation, testified in favor of the HB 41. She said the bill
would create the regulatory framework which would help develop
the shellfish fishery enhancements necessary to benefit the
states economy. Ms. Decker explained that the Alaska Fisheries
Development Foundation had been part of spearheading the Alaska
Mariculture Initiative which was meant to accelerate the
development of mariculture in Alaska.
11:36:08 AM
CLAY KOPLIN, Mayor, City of Cordova, testified in support of HB
41. He said Alaska has the potential for a multi-billion dollar
industry, but currently the production is under a million
dollars annually. He shared that he thought the proposed
legislation would provide an opportunity for Alaska to use its
world-class environmental standards for shellfish and salmon
enhancement. He explained that Cordova ranks as the thirteenth
largest seafood port on average in the United States even though
the fisheries are largely summer month fisheries. He concluded
his testimony by explaining there are opportunities for aquatic
farms to enhance the economy of Cordova and the state.
11:39:18 AM
NANCY HILLSTRAND, Pioneer Alaskan Fisheries, testified she was
concerned that Alaska fisheries were becoming farm fisheries.
She shared that during the previous year approximately 200
million dollars had been earned from tanner crab fisheries. Ms.
Hillstrand pointed out fisheries were making money without any
up-front costs. She said that from an economic business
perspective, self-perpetuating wild fish stock provided the most
efficient business model. She requested that a cost analysis be
done on hatcheries. Ms. Hillstrand stated that shellfish need a
comprehensive shellfish plan by species.
11:41:42 AM
TOMI MARSH, Oceans Alaska, testified in support of HB 41. She
shared her belief that the bill would create the regulatory
framework for shellfish hatcheries and enhancement.
11:43:13 AM
JEFF HETRICK, Director, Alutiiq Pride Shellfish Hatchery,
testified in support of HB 41. He explained that the Alutiiq
Pride Shellfish Hatchery had been doing research into shellfish
farming for almost twenty years. He said it was time to move
beyond studies and start determining the economic benefits of
using shellfish enhancement as a tool to restore depleted
shellfish species.
11:44:46 AM
STEVE RICCI, Aleutian Pribilof Island Community Development
Association, testified in support of HB 41. Mr. Ricci said that
there is tremendous opportunity for mariculture business and
revenue generation in Western Alaska. He stated potential
increases to subsistence fisheries, workforce development, and
furthering research efforts to better understand the impacts of
climatic related ocean changes are all potential long run
benefits.
11:47:12 AM
CHAIR LOUISE STUTES closed public testimony on HB 41.
11:51:33 AM
REPRESENTATVE VANCE asked if the sponsor of the bill
[Representative Ortiz] could address concerns from one of her
constituents about shellfish enhancement to the wild stock.
11:51:57 AM
REPRESENTATIVE ORTIZ suggested Mr. Rabung would be better suited
to answer the question.
11:52:22 AM
MR. RABUNG explained that safeguards are built into place.
Sustainability of wild stock is the departments primary
guidance, so potential projects are evaluated with wild stock
safety as part of the planning process. Mr. Rabung described
various methods of ensuring the same genetic stock were used
within the area they were gathered from in an effort to protect
the resource. He said the departments primary concern is
maintaining natural stock productivity.
11:55:15 AM
REPRESENTATIVE VANCE asked if mariculture enhancement was like a
nursery.
MR. RABUNG replied, That is exactly what it is like. He
explained that the gain comes from protecting the young until
they are large enough to survive at a much higher rate than
would occur naturally in the wild.
12:00:53 PM
REPRESENTATIVE TARR asked Mr. Rabung whether the stock would be
from a local source or from another area.
MR. RABUNG explained that ADFG would provide the stock or
approve appropriate stock from another project.
12:01:33 PM
REPRESENTATIVE VANCE asked what would happen in an area that no
longer supported or had local natural stock to enhance.
MR. RABUNG answered, There is language in the bill that says
you must first use stock from the project location, if
feasible. If an area needed to have natural stock
reestablished, the department would provide breed stock from the
nearest available appropriate stock.
12:03:30 PM
CHAIR STUTES shared that the bill has two zero fiscal notes, one
indeterminant note, and a further reference to the House Finance
Committee.
12:03:58 PM
REPRESENTATIVE NEUMAN suggested that there might be some
legitimate questions from the public, and he expected that the
bill would not be moved forward without further discussion. He
concluded by saying he would continue to work with the sponsor
and would have no objection to moving the bill.
12:05:39 PM
REPRESENTATIVE KOPP moved to report HB 41 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 41 was reported out of the House
Special Committee on Fisheries.