Legislature(1997 - 1998)

09/12/1997 01:10 PM House FSH

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
 HB 149 - PREFER CONSUMPTIVE USE SALMON FISHERIES                              
                                                                               
 CHAIRMAN AUSTERMAN announced the committee would hear HB 149, "An             
 Act relating to the management of salmon fisheries; and providing             
 for an effective date," sponsored by Representative Kohring, and              
 other fishery-related issues.  He noted this meeting would the                
 first of a series of meetings to be held around the state.  He                
 cautioned the public to keep the testimony constructive and not               
 bring up issues of allocation between gear groups or areas unless             
 these points are specifically addressed within HB 149.  He                    
 indicated Representative Ivan was on his way but was experiencing             
 "plane problems" and should be present shortly.                               
                                                                               
 Number 051                                                                    
                                                                               
 TERRY HOEFFERLE, Bristol Bay Native Association, came before the              
 committee to testify.  He stated, "While the processes of the Board           
 of Fish are not always ones that yield results that everybody                 
 likes, or that you like, I think the board process is one of the              
 things that is unique and very fine about the way that we regulate            
 and manage fish and game in the state of Alaska.  I think that HB
 149 interferes dramatically in that board process and I think that            
 I would simply like to recommend that the legislature stay away               
 from the board's allocation issues.  In talking about allocation,             
 I think that there's a major problem with this legislation in that            
 it assesses a 5 percent measure on all salmon species statewide               
 while the sports fishermen focus their efforts on king salmon and             
 coho salmon primarily.  And I guess that what I would foresee                 
 happening, should this legislation be enacted, is that the count of           
 all salmon species statewide is just going to keep on being                   
 inflated by hatchery fish and so on, low value species and if the             
 5 percent is assessed the state in all five salmon species, what's            
 going to happen is that the coho fishery and the king fishery for             
 too will become dominated by the sportfish industry.  A major                 
 reallocation.  I would suggest that if this bill do move forward              
 that that 5 percent assessment be made by species rather than                 
 salmon across the board.  There needs to be some way of somehow or            
 other breaking up or making finite the mathematical application of            
 this formula.  I would also just like to offer the observation, or            
 maybe it's a question, to the committee and to the department about           
 how the department would be able to manage a very large or an                 
 increasingly large state sport fishery in river in season. And I              
 guess I don't see the department as having the resources that would           
 be required to do that at this time.  I think that there are some             
 conservation issues that that ability to regulate (indisc.)."                 
                                                                               
 Number 098                                                                    
                                                                               
 MR. HOEFFERLE thanked Representative Ivan and Speaker Phillips for            
 their efforts to bring an additional subsistence hearing to                   
 Dillingham in the near future and thanked the representatives in              
 attendance for holding this meeting.                                          
                                                                               
 MR. HOEFFERLE referred to the fishing crises that was experienced             
 in the Bristol Bay area last year and said, "The Governor has                 
 requested a federal disaster declaration under the Magnuson Act to            
 help us -- help our fisheries recover.  The Governor has asked                
 initially for $10 million piece of assistance from the federal                
 government and under the Magnuson Act that would require $2.5                 
 million dollars of state match.  I know the Governor is going to go           
 back to the legislature to ask for that money.  And I guess that I            
 would like to ask this committees support in supporting the                   
 Governor's request in securing match funds to help us reestablish             
 our fisheries.  We're staggering under the impact of the last                 
 season, poor return coupled with poor market prices.  So anything             
 that you can do in that regard would be deeply appreciated."                  
                                                                               
 Number 132                                                                    
                                                                               
 CHAIRMAN AUSTERMAN asked for clarification on the extent of                   
 economic disaster.                                                            
                                                                               
 MR. HOEFFERLE replied, "There have been run problems from the                 
 Chigniks all the way up to Norton Sound.  How extensive the                   
 economic crunch is in some of the areas north of us I can't really            
 say.  I know in the Chignik fishery the return is somewhere between           
 25 and 30 percent of what it has historically been over the last 5            
 years or the last 10 years or the last 15 years.  As you probably             
 are aware, the fishermen in that fishery -- the communities that              
 are encompassed by that fishery are nearly totally dependent upon             
 the fishery.  The number of households, the percentage of                     
 households in Chignik Bay, Chignik Lagoon, Chignik Lake, Ivanoff              
 Bay and Perryville, the percentage of those households that are               
 completely and totally dependent upon the fishery, I would suspect            
 are probably 80 to 85 percent.  They're devastated by this poor               
 return and the poor prices.  We move into Bristol Bay, recent                 
 research that the Bristol Bay Native Association and the Bristol              
 Bay Economic Development Corporation have conducted indicates to us           
 that 30 percent of all of the households in Bristol Bay are totally           
 dependent upon the fishery for their income.  They have no other              
 income going into those households other than what is provided by             
 the fishery.  That comes out to be probably 950 families region               
 wide.  Over half of the families, probably 57 percent of the                  
 families in Bristol Bay, a major source of their income is the                
 salmon fishery.  In terms of how devastating it was, my                       
 understanding is that there are about 200 fishermen, give or take             
 20, that fish for Peter Pan Fisheries, located here in Dillingham.            
 When Peter Pan had a payday there were only 14 boats that had any             
 pay coming to them at all and some of their pay was as low as $36.            
 The average boat fishing for Peter Pan finished the year with a               
 $20,000 debt to the cannery.  I suspect it will take eight years,             
 ten years perhaps, in my conversations with other people who are              
 much more intimately familiar with the fishery than I, it will                
 probably take eight years for us to recover from this one very,               
 very bad season.  Many fishermen that fished at Ugashik this year             
 had such poor seasons that they had to borrow money to get home.              
 They could not even afford to buy gas to get them home."                      
                                                                               
 CHAIRMAN AUSTERMAN asked, "Of the $10 million and the $2.5 million            
 from the state that you're talking about here, what will that be              
 used for?"                                                                    
                                                                               
 MR. HOEFFERLE indicated that was "still being determined."  He                
 said, "This is the first time that there's every been a request for           
 this kind of assistance under the Magnuson Act and so the                     
 Department of Commerce is not sure what kind of programs that it              
 can bring to bear on the situation.  And I think, very frankly,               
 that the state doesn't know the magnitude of the problems that we             
 have before us."                                                              
                                                                               
 Number 202                                                                    
                                                                               
 REPRESENTATIVE MARK HODGINS asked if the fish didn't enter the                
 rivers due to the high water temperatures.                                    
                                                                               
 MR. HOEFFERLE said he couldn't speak to the reasons for the poor              
 salmon returns.  He pointed out some fishermen owe more on their              
 boats than the market value of their boats and in those cases,                
 creditors may seize permits instead of boats and subsequently,                
 fishermen would loose their means of livelihood.  He indicated this           
 may accelerate the loss of Bristol Bay permits out of the local               
 areas.                                                                        
                                                                               
 Number 239                                                                    
                                                                               
 MR. HOEFFERLE described types of public assistance which might                
 become available to fishers in need with the help of the federal              
 disaster funds.                                                               
                                                                               
 Number 265                                                                    
                                                                               
 JOE MCGILL was next to come forward to testify in opposition to HB
 149.  He spoke in support of the Board of Fisheries process to                
 allocate.  He then brought up HB 285 and said, "I'd like to see one           
 thing put in there and it's something that is more of a problem               
 than a lot of people are willing to admit and that's outsiders                
 putting their self down as residents to save money."  He referred             
 to HB 285 and asked, "How many points are you allowed to get before           
 you loose?"                                                                   
                                                                               
 MR. MCGILL added, "I would like to see management get more help and           
 more money in this area.  Before, when the state didn't have money,           
 $80, $90 thousand dollars a year, we'd have smolt programs and all            
 kinds of research.  Now we don't have any.  One example is our                
 herring fishery that before we used to have biologists out there              
 and they would figure the opening when the herring was ripe, you              
 know to call for the openings.  Now they have fishermen in test               
 fisheries testing in stages.  They see fish around they're apt to             
 get a bunch of fish that are not ripe yet and have an opening when            
 the fish is not ready to harvest.  I figure that a few years ago we           
 must have cost -- well the year before last must have cost the                
 fishermen $1.5 million, and of course that (affected) that raw fish           
 tax and everything out of that.  It would pay for the extra                   
 (management) out there of course.  Maybe with a smolt program and             
 stuff we wouldn't have had this trouble.  I mean they're coming up            
 with a lot of different reasons that the fish is not here this year           
 and I know when I fished here the water was warmer and everything             
 else, but we're going to have wait another year to find out                   
 (indisc.) true or not -- rather they disrupted it to water                    
 temperature will keep the fishermen coming in.  It think there are            
 good examples, in `63 when they were getting fish early in                    
 Southeastern then the earthquake came and the fish just                       
 disappeared.  The next year they had a heck of a good run."                   
                                                                               
 Number 339                                                                    
                                                                               
 CHAIRMAN AUSTERMAN thanked Mr. McGill for bringing up the topic of            
 management.  He said, "I think that's part of the overall fisheries           
 (picture) is whether we're managing at first correctly and whether,           
 secondly, if we're not managing correctly, is it a problem with               
 funding or is the problem that we don't do enough research?"  He              
 inquired whether Mr. McGill remembered more research being done in            
 the past.                                                                     
                                                                               
 MR. MCGILL indicated there was more done in the past.  He said, "We           
 had beluga scaring programs, the smolt programs.  There seemed to             
 be more people out there tagging."                                            
                                                                               
 CHAIRMAN AUSTERMAN said, "You'd think with all the oil wealth                 
 though, we'd have those kinds of programs."                                   
                                                                               
 MR. MCGILL acknowledged the chairman's point and added, "There has            
 never in the history of the salmon been a program where they've               
 followed the fish for several cycles to see where they go to high             
 seas, if they intermingle and where they feed at and how much years           
 like this el nino would affect where they go."  He suggested the el           
 nino occurrence kept the fish offshore where the high seas fleet              
 could harvest them.  He concluded, "I think one of the big things             
 is getting more money for management."                                        
                                                                               
 Number 395                                                                    
                                                                               
 ED CRANE, President, Alaska Seafood Council; President, Commercial            
 Fisheries and Agricultural Bank (CFAB), came before the committee             
 to testify.  He testified in agreement of Mr. Hoefferle's testimony           
 on the economic impacts in the region.  He said, "The numbers that            
 I've seen suggest to me that there's some $60 to $80 million                  
 missing compared to a five year average, missing from this regional           
 economy this year.  I would stress that's only the first dollar, in           
 other words, it doesn't count the number of times any particular              
 dollar may turn over before it heads into Anchorage."                         
                                                                               
 MR. CRANE added, "CFAB is among maybe one of the more significant             
 lenders in Bristol Bay as well as in other fisheries of the state.            
 And I don't have any reason to believe that CFAB is necessarily               
 going to be any part, at least at this time, this season, for the             
 foreseeable future, in creating new and additional pressures on our           
 borrowers.  I think mid-July we had already written letters to all            
 the Bristol Bay borrowers we could identify and we've been                    
 processing a lot of modifications and extensions since then, but              
 the thing is we can only -- the most we can do, or the most any               
 lender can do is to relieve or defer a certain amount of pressure             
 for a certain amount of time.  There's nothing we can do that will            
 address the need that fishermen and others have for cash flow and             
 immediate cash flow."                                                         
                                                                               
 MR. CRANE stated, "I believe we in this state are going to suffer             
 or have to deal with the results of this Bristol Bay shortfall and            
 the rather generalized shortfall around the state for many years to           
 come.  And I would urge this committee and all of your colleagues             
 in the legislature, and I think I've seen it enough to recognize              
 there's often a difference between politics and reality, but I                
 believe that our state is going to bear and must bear the cost, the           
 effects of this shortfall one way or another and I frankly would              
 like to see not necessarily this committee specifically, but the              
 legislature as a whole perhaps be more constructively responsive to           
 what has happened and is happening in rural Alaska as a result of             
 the shortfall."                                                               
                                                                               
 Number 516                                                                    
                                                                               
 REPRESENTATIVE VIC KOHRING, prime sponsor of HB 149, announced that           
 he joined the committee via teleconference.                                   
                                                                               
 CHAIRMAN AUSTERMAN asked Mr. Crane if the Alaska Seafood Council              
 was involved with advocating for the Department of Fish and Game's            
 budget.                                                                       
                                                                               
 MR. CRANE replied that the Alaska Seafood Council supported                   
 increased fish management and research budget.  He said, "There are           
 competing pressures I understand, in the legislature, for funds and           
 there are a lot of things I would not disagree with you or any of             
 your colleagues on.  At the same time, the health of our fisheries            
 is not a constructive place in which to continue trying to save               
 money."                                                                       
                                                                               
 Number 567                                                                    
                                                                               
 REPRESENTATIVE HODGINS asked if enhancement was a concern in this             
 area or only research and management.                                         
                                                                               
 REPRESENTATIVE KOHRING made his statement regarding sponsoring HB
 149, "We have a problem here in the Mat-Su Valley and I think the             
 fishing season that just concluded up here once again reflected               
 that we have a problem here.  That problem is a lack of fish in our           
 rivers to the extent where I personally feel that there's a                   
 jeopardizing of the sustained yield of that resource to the extent            
 where we might even see, frankly in some of the streams anyway, the           
 extinction of some of these species of fish."  He indicated there             
 were "substantially reduced numbers of salmon" in the Mat-Su river            
 drainages.                                                                    
                                                                               
 REPRESENTATIVE KOHRING said, "I know it's hard to attribute                   
 specifically the cause and it's hard to make a direct correlation             
 between perhaps the intercept of salmon in the high seas or in Cook           
 Inlet but the bottom line is we have a serious problem.  And the              
 bottom line is that it does seem that when commercial fishing                 
 activity does occur, particularly in the lower Cook Inlet, we seem            
 to see a decrease in numbers of fish.  And in some cases likewise             
 when the fishing is restricted commercial wise we seem to see more            
 fish in our rivers up here as well.  So we feel that that                     
 correlation is there and hence, that's why I filed this                       
 legislation, HB 149, to direct the Board of Fisheries to give first           
 priority of the resource, after sustained yield goals are met, to             
 the personal consumptive user - the sports fishermen, subsistence             
 user, the personal user like the dip netter and so forth."                    
                                                                               
 REPRESENTATIVE KOHRING concluded, "I and many of us here in the               
 valley are not against the commercial industry.  We recognize the             
 fact that folks in the commercial industry need too. but we just              
 see this as a problem where our resource is endangered and it's               
 having a negative impact on our economy and we respectfully request           
 that we get a more equitable, a larger share of that resource and             
 hopefully my legislation, if I was so fortunate to get it through             
 would enable us to accomplish that goal."                                     
                                                                               
 CHAIRMAN AUSTERMAN asked the sponsor if there was a significant               
 increase this year in salmon returns.                                         
                                                                               
 REPRESENTATIVE KOHRING replied, "There were select areas where we             
 saw larger numbers of fish, we saw more kings certainly at the                
 onset of the season.  In fact, there were substantial kings in the            
 Deshka River and some of the other streams, but on balance we saw             
 greatly diminished numbers and I think Fish and Game certainly                
 recognized the problem too.  That's why they, once again, as                  
 they've done in recent years, placed major restrictions on our                
 rivers and streams.  They placed restrictions on the use of bait              
 and the numbers of fish you can catch.  Believe me I had many many            
 unhappy people here that were calling and expressing their concern            
 saying that they could not catch the fish up there that they would            
 like to catch simply to put food on the table - to fill up the                
 freezers for the winter."                                                     
                                                                               
 Number 700                                                                    
                                                                               
 ROBYN SAMUELSEN, Commercial Fisherman, came forward to testify                
 against HB 149.  He said, "I wish you'd keep your damn problems in            
 Cook Inlet and not spread them throughout the rest of the state."             
 He then identified himself as a 30-year Bristol Bay commercial                
 fisherman.  He said, "House Bill 149 is nothing more than a                   
 reallocation plan that was spawned in the Cook Inlet area that has            
 now boiled over to the rest of the state of Alaska.  This bill is             
 bad public policy and truly shows the public process adopted by the           
 Board of Fish is meaningless in the eyes of this Alaska                       
 legislature.  House Bill 149 is strictly a political move by a                
 group of state representatives from the Anchorage Mat-Su area to              
 satisfy a small number of greedy sports fishermen lodge owners.  It           
 has nothing....                                                               
                                                                               
 TAPE 97-23, SIDE B                                                            
 Number 001                                                                    
                                                                               
 MR. SAMUELSEN referred to the time he served on the Board of Fish             
 and said, "I was never out to get any one user group.  I have made            
 hundreds of allocation decisions and I can truly say that I made              
 those decisions on the best available information provided to me by           
 the Department of Fish and Game's staff and through the public                
 comment process.  House Bill 149 is a guarantee to sports fishermen           
 that they would get 5 percent of the return in salmon stocks.  Well           
 let's take a look at Cook Inlet and see how HB 149 helps those                
 folks in Cook Inlet that are in need of sport fish.  Cook Inlet               
 sports fishermen caught 89 percent of the returning king salmon, 33           
 percent of the silver salmon, 22 percent of the pink salmon and 7             
 percent of the returning chums.  These folks are already over the             
 5 percent direct allocation as provided in HB 149.  In fact, HB 149           
 would do nothing for those sports fishermen who spawned the idea of           
 this bill.  They already are catching 13 percent of the total                 
 return in salmon to Cook Inlet.  I then ask myself, `Why is this              
 bill continuing on forward?'  I could only come up with a simple              
 answer, `greed.'  In the Bristol Bay region this bill would have a            
 devastating affect on the commercial fisheries.  In 1997, the                 
 Department of Fish and Game forecasted a harvestable surplus of               
 sockeye salmon of 24.8 million fish.  Actual surplus was 12                   
 million.  How would this bill address the margin of error in                  
 forecasting.  It doesn't.  If HB 149 is passed based on the                   
 preseason forecast of 24.8 million return in Bristol Bay sockeye,             
 the allocation to the sportfish industry would be 1.2 million fish.           
 Sport fishermen, under HB 149, would be able to take all the king             
 and silver salmon returning to the rivers of the Bristol Bay.  This           
 bill would basically shut down the entire Bristol Bay commercial              
 fishery during the month of June.  How can you people even consider           
 doing this to the people of Bristol Bay because of a few in Cook              
 Inlet.  Most, 80 to 90 percent of the sport fishing effort in                 
 Bristol Bay is nonAlaska residents.  They are commercially guided.            
 How are you going to protect local Alaska residents sport fishermen           
 from the hordes of nonresident sport fishermen.  Nonresident                  
 sportfish guide license numbers are growing at alarming rates.  In            
 1994, the nonresidents license totalled 227,088 license versus                
 resident license 183,000.  And that number of nonresident licenses            
 continues to grow and outnumber resident licenses.  Who are you               
 people representing?  Nonresident sport fishermen interests?  It              
 sure appears the case to me.  It takes bills like HB 149 that are             
 driving the subsistence issue and turning rural Alaskans backs to             
 the state legislature."                                                       
                                                                               
 Number 035                                                                    
                                                                               
 MR. SAMUELSEN then informed the committee that the present level of           
 Fish and Game management and funding for that management is not               
 acceptable in rural Alaska.  He said, "You people have cut and cut            
 and cut into the Commercial Fish Division budget where it is damn             
 near a joke.  Why is sportfish dollars -- every sportfish license             
 that is bought goes right back into Sportfish Division.  They're an           
 over financed organization in the state of Alaska.  Our funds that            
 we contribute, through the commercial fish process, are put in the            
 general funds.  Why don't you give us what is due to us that we've            
 paid in for like you do for the sport fishermen?"                             
                                                                               
 MR. SAMUELSEN continued stating any reallocation is best done by              
 the Board of Fisheries and said, "I think we should limit the                 
 amount of commercial sport guides throughout the whole state.  This           
 isn't just germane to Cook Inlet.  It's happening in Southeast,               
 it's happening in Kodiak, it's happening in Bristol Bay."  He then            
 voiced support for HB 19, relating to establishing data collection            
 on charter business, and HB 56, relating to establishing a program            
 to buy back limited entry permits.                                            
                                                                               
 CHAIRMAN AUSTERMAN explained he would encourage testimony outside             
 of HB 149.                                                                    
                                                                               
 MR. SAMUELSEN indicated that he had some bad experiences when                 
 previously testifying via teleconference.                                     
                                                                               
 Number 077                                                                    
                                                                               
 CHAIRMAN AUSTERMAN called for an at-ease at 2:03 p.m.  He called              
 the meeting back to order at 2:07 p.m.                                        
                                                                               
 ROBERT HEYANO, Commercial Fisherman, came before the committee                
 members to give his testimony.  He testified that he participates             
 in the commercial salmon fisheries and a partner in a sports fish             
 camp on the Nushigak River and is against HB 149.  He said, "I                
 think it's poorly piece of legislation.  In my opinion it's another           
 attempt to revive the failed F.I.S.H. Initiative.  The concerns               
 that I have with the bill is that although it allocates 5 percent             
 of the salmon to subsistence to personal and sport fishing                    
 interests, the way I read it is that it could allocate our larger             
 number of salmon species that are of particular high interest to              
 the sportfish industry in this area that (indisc.) primary king               
 salmon and the coho salmon.  You run the numbers, and as Robin                
 stated, that could very well shut down the commercial fishery for             
 those species here in Bristol Bay, based on the amount of other               
 species that are available included in the 5 percent."                        
                                                                               
 MR. HEYANO continued, "The information I've seen, especially here             
 in the area I'm familiar with, is there's a large portion of the              
 sport fishing activity happens from out of state residents.  And I            
 think there's other ways to correct that problem without passing              
 this bill. I think we could, you know the Board of Fish has that              
 prerogative and I think we could impose different season and bag              
 limits for a nonresidents similar to what we do on the hunting                
 regulations.  I think another thing we can do is maybe limit the              
 number of nonresidents per commercial operator.  In my opinion, if            
 this bill is passed, the people who are going to reap the largest             
 benefit are going to be those commercial sportfish organizations or           
 businesses.  The other reason I'm opposed to this particular piece            
 of legislation is because I think it chips away at the integrity of           
 the current board process which is in place and I'm a strong                  
 supporter of that process."  He then voiced concern about fewer               
 dollars appropriated to the Commercial Fisheries Management                   
 Division through the years.                                                   
                                                                               
 MR. HEYANO said, "I would urge you caution on just thinking that              
 limiting the charter business or commercial sportfish interest is             
 that your problem would go away.  I think here, and especially out            
 in rural Alaska, there's very little or a very small amount of                
 local residents who are currently participating in that industry              
 and it's pretty natural type of industry for them to get into.  A             
 lot of them have the land base, private land in which they can                
 operate out of.  They have the basic knowledge and the basic                  
 equipment to do it.  What they lack is the marketing expertise and            
 maybe some of the business sense that it takes to make that type of           
 business work for them.  I think if you're going to limit the                 
 number of commercial operators, then you also need to limit the               
 number of clientele or customers they can take.  Because it does no           
 good to limit the operation to 10 people and have them taking out             
 100 customers a piece.  Where if you had 10 people or 100 taking              
 out 10 I think the end result would be the same.  So I would urge             
 caution on thinking that limiting the commercial operators is going           
 to take care of the problem."                                                 
                                                                               
 CHAIRMAN AUSTERMAN suggested that different areas may have to be              
 individually set up regarding charter business limitations.                   
                                                                               
 Number 185                                                                    
                                                                               
 THOMAS TILDEN, Subsistence and Commercial Fisherman, was next to              
 address the committee.  He testified against HB 149 saying, "I                
 think the bill left more questions than answers for me.  For                  
 instance, I was concerned about how you would, or how the                     
 legislature would define `consumptive user and their gear' and how            
 does that compare to a sport fisherman and his gear?  Another                 
 question that popped into my mind is how would you determine the              
 need for the consumptive user and how would you determine the need            
 for all of the sport fishermen?  I guess some of the positive                 
 things as I read this, I thought maybe that might happen would be             
 is that if you had a consumptive user and a subsistence user and              
 they were getting allocation, I'm sure that you would look to                 
 expand the fish board to put a subsistence fisherman on the Board             
 of Fish and a consumptive user on the Board of Fish."                         
                                                                               
 MR. TILDEN continued, "Sport fisheries has grown quite dramatically           
 in this particular area.  I grew up in a little village called                
 Portage Creek which is 40 miles east of here.  In the `60s there              
 was no sport fisheries at all up in that area.  There was zero,               
 there was nothing.  And now you go up there and it's boats ramming            
 boats.  It has grown so much and I think it's kind of an overflow             
 of the Cook Inlet area."                                                      
                                                                               
 MR. TILDEN said, "I think when you look back five years and see how           
 much it has grown and how much more of the resource they're using             
 and if you start projecting, take that growth and start projecting            
 it in a five year or ten year average, they're going to be taxing             
 that resource tremendously.  And where does that put the commercial           
 fishermen.  It will eventually ace out the commercial fishermen.              
 We saw growth here in our commercial fisheries in the `60s and `70s           
 and we did something about it.  We started the permit system and I            
 think the sport fishery should look at doing something similar.               
 We, as commercial fishermen, contribute a lot of jobs I think to              
 the area, to the state, to the state coffers."                                
                                                                               
 Number 260                                                                    
                                                                               
 MR. TILDEN concluded, "You cannot have good management unless you             
 fund it fully.  Here in our area, we need more research done on our           
 fisheries.  I've approached our managers here about expanding our             
 fishery too.  we have a heck of smelt run out here and there was a            
 proposal to do a pike fishery here at one time, but there's no                
 research."  He added that subsistence and habitat protection should           
 receive more funding as well.  "Habitat protection, with all of               
 this increase in sports fishermen, they're destroying some of the             
 habitat in some of the rivers upriver, particularly this year when            
 the river has been extremely low.  And there's no monitoring of               
 that, there's absolutely no monitoring of that.  The planes fly               
 into the area, drop off their sports fishermen.  They're walking              
 around on these eggs.  And there is no monitoring, there's no                 
 checks and balances here that needs to be done.  So we do need                
 management fully funded.  We need a sonar on the rivers here so we            
 have an accurate count of how much salmon are actually going by."             
                                                                               
 Number 282                                                                    
                                                                               
 JERRY LIBOFF, Commercial Fisherman, came before the committee to              
 testify.  He thanked the committee for their visit to Dillingham.             
 He said, "You guys being here is to me probably the classic and               
 most important single reason that I can think of why I want the               
 state to maintain managing fish and game resources versus the                 
 federals."  He indicated he is a 30 year resident of the area, he             
 is commercial fisherman, manages two village corporations and does            
 some accounting.  He said he is also opposed HB 149 saying, "I                
 think for managers for commercial and sportfish managers in a mixed           
 stock fishery, it could sometimes be real difficult to try to                 
 allocate that 5 percent or 9 percent or 27 percent whatever we                
 decide the personal use fishery is supposed to get in a particular            
 river system or a particular area.  An allocation between the two,            
 in terms of numbers, is one thing but to achieve those numbers, is            
 another thing and it can be really difficult.  In order to do that            
 you might wind up shorting another fish resource in the mixed stock           
 fisheries.  For example, in this river system we have king salmon             
 that run kind of the same time as sockeye salmon, and if this fish            
 initiative was in existence and we had to get X number of fish                
 upriver for the sports fishery to catch in kings -- the kings quite           
 often run with the reds in order to do that, you might end up                 
 getting an over escapement of reds upriver and an under escapement            
 or an under catch of reds out in the commercial district.  So it's            
 one thing to put it on paper but another thing to manage this in a            
 mixed stock fishery you could wind up actually doing more damage              
 than good."                                                                   
                                                                               
 MR. LIBOFF also stated that he did not like the university lands              
 trust bills which have twice passed the legislature but was vetoed            
 twice by the Governor.  "The mandate for the university is to                 
 basically generate as much revenue off that land that they get as             
 possible and what that has meant in the past is basically                     
 wholesale, either selling, or leasing out either large tracks of              
 land.  In this area what would happen and what has happened in the            
 past when that's happened is we get more competing interest for our           
 fish and game resources."  He gave an example of a local tract of             
 land which would effect local subsistence practices and that the              
 university does not include the public process in their                       
 considerations of land disposal.                                              
                                                                               
 Number 363                                                                    
                                                                               
 MR. LIBOFF commented in support of HB 123, which is a tax                     
 obligation loan program.  He said, "A lot of my tax clients and               
 accounting clients that I've dealt with have used that program,               
 used it successfully to save their permits from the IRS."  He                 
 concluded, "In addition to specific families making use of that               
 program, it has been a real good tool to convince the Internal                
 Revenue Service (IRS) to deal with the state on saving permits.               
 The IRS has always fought to be able to seize permits and sell them           
 due to back taxes that are owed but with this program in place, for           
 the years that we had it, which was for four or five years before             
 it sunsetted last year, the IRS was willing and continuously dealt            
 with the state and individuals to try to do a work out with them.             
 Without this program, we have much less leverage with the IRS to              
 convince them to back off.  And if for no other reason, it becomes            
 a very good negotiating tool with the IRS to get them to change               
 their hard stance on this, I think it's an important program to               
 have in place.  Much beyond the 200 or 300 people that have made              
 use of it."                                                                   
                                                                               
 REPRESENTATIVE HODGINS questioned where legislative process is with           
 HB 123.                                                                       
                                                                               
 AMY DAUGHERTY, Legislative Administrative Assistant to                        
 Representative Austerman, said HB 123 was currently in Senate                 
 Resources.                                                                    
                                                                               
 TOM WRIGHT, Legislative Assistant to Representative Ivan, confirmed           
 via teleconference that Representative Ivan would be persevering              
 this legislation this coming session.                                         
                                                                               
 Number 414                                                                    
                                                                               
 BERNICE HEYANO, Bristol Bay Permit Brokerage, Bristol Bay Economic            
 Development Corporation, testified in support HB 123.  She said she           
 is aware of many people utilizing the tax obligation loan program             
 over the last year.                                                           
                                                                               
 Number 447                                                                    
                                                                               
 HARVEY SAMUELSEN, Commercial Fisherman, came before the committee             
 to testify.  He said he is against HB 149 saying, "That's Fish and            
 Game's job, not the legislature's job.  Our legislators down in               
 Juneau seem to hate rural Alaska and anybody who lives in rural               
 Alaska.  We got hardly any voice down there anymore in Juneau and             
 now these people that's making all of these dreams are for                    
 themselves, not all of Alaska.  In the old days, we had a bunch of            
 legislators that ran from their districts, got elected and when               
 they got down to Juneau they all worked for Alaska then.  Now we              
 got a different type of legislator down there.  Most of them."                
                                                                               
 Number 477                                                                    
                                                                               
 MR. SAMUELSEN then suggested that Alaska become two different                 
 states and added, "Sport fishing has really grown in this area.               
 I'm really concerned. I know one sports fishing lodge, they don't             
 hire from here, they don't hire their guides from here - kids that            
 know how to run skiff and kicker and know how to survive.  One                
 sport fishing lodge, his selling point is, he sends all of his                
 guides through Orvis School out in the states, wherever Orvis runs            
 it's school and these guys are graduates from there.  And they come           
 up and work and take the jobs away from kids up here.  I think                
 there should be something done if they're going to use the                    
 resources of Alaska, 50 percent or more should come out of Alaska.            
 I don't know how you'd do it but it would certainly put a lot of              
 kids to work."  He then voiced support for the offshore factory               
 trawler fleet and indicated some knowledge about recent high seas             
 salmon interception by  Japanese.                                             
                                                                               
 Number 620                                                                    
                                                                               
 CHAIRMAN AUSTERMAN thanked Mr. Samuelsen for his testimony and                
 asked his opinion on allocation in light of the increasing                    
 populations in the Anchorage area.                                            
                                                                               
 Number 640                                                                    
                                                                               
 MR. SAMUELSEN said, "I think that allocation issue shouldn't be               
 brought up in the legislature.  That's what these boards are                  
 appointed for."  He concluded, "People get mad at the fish and game           
 boys.  There's a lot of people in this room that weren't around               
 when the feds had the say so during the old territorial days.  It             
 wasn't all a bed of roses when the feds had it.  It was horrible.             
 You had one game warden in this area and he was a dictator.  You              
 couldn't just pick up the phone and phone up Juneau, you had to               
 call Washington, D.C. or somebody.  A lot of people don't realize             
 that.  It's going to be good for a year or two if the feds take               
 over, I'm pretty sure, until the greenies take over back in                   
 Washington, D.C., and all these guys that figure that'll be a good            
 deal are going to be kicking their asses.  I don't trust the                  
 federal government.  I don't trust the state government either, but           
 I trust state government a little bit more than I do the federal              
 government."                                                                  
                                                                               
 RON BOWERS came forward and thanked the committee for coming to               
 Dillingham.                                                                   
                                                                               
 TAPE 97-24, SIDE A                                                            
 Number 000                                                                    
                                                                               
 MR. BOWERS spoke in support of the $100,000 provided to Alaska                
 Marine Safety Education Association (AMSEA) and described some of             
 the local benefits that money provides.  He asked for additional              
 support this year.                                                            
                                                                               
 GERON BRUCE, Legislative Liaison, Office of the Commissioner                  
 Department of Fish and Game, testified via teleconference providing           
 information on the department's budget regarding commercial                   
 fisheries.  He indicated those dollars are general fund monies and            
 said, "Since fiscal year `92, over the last six years, the                    
 Department of Fish and Game has lost almost $11 million in general            
 fund appropriations.  And that is a very significant amount of                
 money."                                                                       
                                                                               
 Number 046                                                                    
                                                                               
 MR. WRIGHT apologized that Representative Ivan had not made the               
 meeting and spoke about HB 285.  He said, "Those suspensions and              
 revocations are found on the bottom of page 2 and the top of page             
 3 where if a person accumulates 12 or more points during a                    
 consecutive 48 month period, the Commercial Fisheries Entry                   
 Commission (CFEC) can make determination about a suspension or if             
 16 or more points during any consecutive 16 month period for                  
 violations occur, then the CFEC can also make a suspension and                
 revocation can occur after 18 or more points during any consecutive           
 72 month period.  These numbers aren't set in concrete.  They're              
 something that we worked with a recommendation made by one of the             
 fishermen in the Bristol Bay area from South of Naknek, I believe."           
 He indicated that once this gets into the committee process,                  
 they'll certainly be looking for any assistance from the Bristol              
 Bay fishermen and also fishermen from around the state in helping             
 to refine this and if this is what they want to see happen.                   
                                                                               
 CHAIRMAN AUSTERMAN asked if Representative Kohring was on line, but           
 there was no response for several minutes.  Then Representative               
 Kohring indicated he was listening.                                           
                                                                               
 Number 068                                                                    
                                                                               
 MR. CRANE asked about how HB 123 would effect CFAB permit loans.              
 He pointed out that points assessed through the policies in this              
 legislation would carry with permits during sale transfers.                   
                                                                               
 Number 100                                                                    
                                                                               
 REPRESENTATIVE KOHRING indicated that he was willing to modify some           
 language in HB 149.  He said, "I'm not trying to be hard-nosed                
 about this.  I'm just simply trying to help folks in Southcentral             
 Alaska who are really hurting here, and many of which are being               
 restricted from getting fish they were simply trying to put on the            
 dinner table and fill their freezers with to feed their families.             
 The bottom line is that we here in the Mat-Su are at the end of the           
 line so to speak as far as the route that the fish take.  We're at            
 the terminal point here and our residents are just simply not                 
 getting an adequate fish in our rivers here.  And of course Fish              
 and Game does recognize the problem and they're recognizing it by             
 restricting our access to those fish."                                        
                                                                               
 CHAIRMAN AUSTERMAN said he hoped for more problem solving at the              
 next House Special Committee on Fisheries meeting scheduled for               
 September 30, 1997.                                                           

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