Legislature(2007 - 2008)BARNES 124

05/04/2007 08:30 AM House FISHERIES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 16 EXTEND LIMITED ENTRY SUNSET: CRAB/SCALLOP TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 188 BOARD OF FISHERIES' AUTHORITY TELECONFERENCED
Heard & Held
HB 16-EXTEND LIMITED ENTRY SUNSET: CRAB/SCALLOP                                                                               
                                                                                                                                
8:42:12 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON announced that the  first order of business would be                                                               
HOUSE BILL  NO. 16, "An  Act providing  for an effective  date by                                                               
delaying the  effective date  of repeal of  the authority  of the                                                               
Commercial  Fisheries Entry  Commission to  maintain the  vessel-                                                               
based commercial  fisheries limited entry systems  for the Bering                                                               
Sea Korean hair  crab and weathervane scallop  fisheries, and the                                                               
effective date of conforming amendments  related to the repeal of                                                               
those systems."                                                                                                                 
                                                                                                                                
8:43:23 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON opened public testimony.                                                                                           
                                                                                                                                
8:43:31 AM                                                                                                                    
                                                                                                                                
JOHN  HILSINGER,  Director,  Division  of  Commercial  Fisheries,                                                               
Alaska   Department  of   Fish   &  Game   (ADF&G),  stated   the                                                               
department's  official support  for  HB 16,  paraphrasing from  a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     ADF&G supported  the vessel based limited  entry system                                                                    
     for scallops and  Korean hair crab when  it was adopted                                                                    
     in  2004  because  it provided  conservation  benefits,                                                                    
     both  for  scallops  and  for   crabs,  that  were  not                                                                    
     provided by  an individual  based limited  entry system                                                                    
     (9  scallop boats  versus  at least  27;  18 hair  crab                                                                    
     boats versus 47).                                                                                                          
                                                                                                                                
     Scallops                                                                                                                   
                                                                                                                                
     At  he  current  time  there   are  9  scallop  vessels                                                                    
     licensed in  both state  and federal  waters.   Four of                                                                    
     those  boats actually  fish.   (Six of  the boats  have                                                                    
     formed a voluntary co-operative  and three of those six                                                                    
     boats fish).                                                                                                               
                                                                                                                                
     Scallops are  long lived slow growing  animals that are                                                                    
     not non-migratory  as adults.   Once the location  of a                                                                    
     scallop bed is identified, the  same bed is fished year                                                                    
     after  year.   Occasionally, new  beds are  discovered.                                                                    
     Population  estimates  exist  for   only  2  of  the  9                                                                    
     registration  areas.    Therefore, management  must  be                                                                    
     precautionary and  harvest rates must be  kept very low                                                                    
     to prevent over fishing.   Harvests are kept well below                                                                    
     estimated MSY levels.                                                                                                      
                                                                                                                                
     King and tanner crabs  are intermixed with scallops and                                                                    
     some scallop beds are closed  to protect depressed crab                                                                    
     populations.   Areas open to scallop  fishing have crab                                                                    
     bycatch  limits because  mortality of  crabs caught  in                                                                    
     scallop dredges is high.                                                                                                   
                                                                                                                                
     Guideline   harvest  ranges   for   the  scallops   are                                                                    
     developed from  observer data,  catch per  unit effort,                                                                    
     and  catch  sampling.    Observers  also  monitor  crab                                                                    
     bycatch  and fisheries  may be  closed if  crab bycatch                                                                    
     limits  are met.    Because of  the  limited number  of                                                                    
     boats  fishing  and  the bycatch  data  collected,  the                                                                    
     vessels  have  been able  to  reduce  crab bycatch  and                                                                    
     avoid premature closures.                                                                                                  
                                                                                                                                
     Recent  average  scallop  harvests for  the  state  are                                                                    
     somewhat  less than  500,000 pounds  of meat  per year.                                                                    
     Approximately  30%,   or  about  145,000   pounds,  are                                                                    
     estimated to  come from state  waters.   These harvests                                                                    
     are lower than they were  in the late 1990s because the                                                                    
     department  is  lowering  guideline harvest  ranges  in                                                                    
     order to sustain the stocks.                                                                                               
                                                                                                                                
     The vessel  based limited entry program  works together                                                                    
     with  the  guideline  harvest  ranges,  observer  data,                                                                    
     other  sampling,   closed  areas,  seasons,   and  gear                                                                    
     limitations   to  provide   a  sustainable   management                                                                    
     program  for  scallops.   It  is  not clear  what  will                                                                    
     happen  if  one of  those  tools  is removed,  or  what                                                                    
     exactly   could  replace   it  without   affecting  the                                                                    
     viability of the fishery.                                                                                                  
                                                                                                                                
     If HB  16 does  not pass, at  best the  department will                                                                    
     need to  seek regulatory  changes through the  Board of                                                                    
     Fisheries.   However,  if there  is a  large influx  of                                                                    
     vessels it is possible some  state water areas will not                                                                    
     open.                                                                                                                      
                                                                                                                                
     A significant  difficulty in implementing  this fishery                                                                    
     in  the  absence  of the  vessel  based  limited  entry                                                                    
     system  is that  the  state waters  boundary line  cuts                                                                    
     right cross  the middle of  many of these  scallop beds                                                                    
     requiring  the  state  to consider  managing  a  single                                                                    
     scallop bed essentially as two separate areas.                                                                             
                                                                                                                                
     In anticipation  of HB 16  not passing,  the department                                                                    
     is  considering what  additional  regulations might  be                                                                    
     necessary.  These may include,  but are not limited to,                                                                    
     separate  guideline   harvest  ranges  for   state  and                                                                    
     federal  waters, recording  catch separately  for state                                                                    
     and federal waters,  vessel monitoring systems, shorter                                                                    
     seasons, and pre-registration.                                                                                             
                                                                                                                                
8:48:39 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON clarified  that a vessel monitoring  system (VMS) is                                                               
not a requirement for the scallop fleet.                                                                                        
                                                                                                                                
MR.  HILSINGER said  that VMS  would be  necessary if  the vessel                                                               
limited  entry program  were not  in  place.   The state  opposes                                                               
requiring VMS,  because of the lack  of access to the  data.  The                                                               
federal government  may make  the data  available in  the future,                                                               
which would  change the department's outlook  on this technology.                                                               
The on-board  observer is able  to provide  accurate information,                                                               
although when they tow across  the boundary line, it is difficult                                                               
to ascertain from which area the scallops were dredged.                                                                         
                                                                                                                                
CHAIR  SEATON queried  how the  tows are  recorded, and  the data                                                               
reported, for tows in state waters.                                                                                             
                                                                                                                                
MR. HILSINGER  stated, "That's a  good question, ... and  I don't                                                               
know precisely  what they  record.  I  assume that  they probably                                                               
record the start/stop location of  the tow."  Electronic data may                                                               
not be available, he opined.                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  if it  would  create a  problem, should  the                                                               
state require  electronic data  be reported  for the  location of                                                               
the tows.                                                                                                                       
                                                                                                                                
MR. HILSINGER agreed that such  a requirement could be an option.                                                               
An alternative, which the department  has considered, would be to                                                               
disallow the  dredging of state  and federal waters at  one time.                                                               
If  this program  is not  extended, the  department will  need to                                                               
develop  a complete  package of  regulations, which  may include:                                                               
separating  the  guideline  harvest   ranges,  requiring  a  VMS,                                                               
limiting  the season  to a  shorter period,  and imposing  a pre-                                                               
registration requirement.                                                                                                       
                                                                                                                                
CHAIR  SEATON established  that these  are management  tools that                                                               
are currently available in regulation.                                                                                          
                                                                                                                                
8:53:13 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX inquired  why these  regulations were  not                                                               
considered  prior to  this program  being implemented;  a program                                                               
that is a departure from the states standard practices.                                                                         
                                                                                                                                
MR.  HILSINGER   suggested  that   the  program  may   have  been                                                               
implemented based on the traditional  harvest levels of the beds.                                                               
The  technology has  not been  available to  accurately ascertain                                                               
the federal  and state  harvests.  The  viability of  the fishery                                                               
may  also have  been  a  factor.   To  a  follow-up question,  he                                                               
deferred to the limited entry witness.                                                                                          
                                                                                                                                
8:55:37 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON pointed  out  the sunset  date of  HB  16 as  being                                                               
December  2008,  allowing  ample   time  for  the  department  to                                                               
implement any  necessary regulations,  should the program  not be                                                               
extended.                                                                                                                       
                                                                                                                                
8:56:20 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  asked  how  long  will  it  take  to  put                                                               
regulations in place, if necessary.                                                                                             
                                                                                                                                
MR.  HILSINGER  speculated  that  any  necessary  changes/actions                                                               
could be  implemented to  coincide with the  sunset date  and the                                                               
2009 season.   Responding to a committee question,  he said that,                                                               
pending  a  vote on  the  bill,  the  department will  begin  the                                                               
process, in order to be prepared.                                                                                               
                                                                                                                                
REPRESENTATIVE  WILSON asked  whether the  department supports  a                                                               
change in how this fishery operates.                                                                                            
                                                                                                                                
MR. HILSINGER  reiterated the department's support  for extending                                                               
the program.                                                                                                                    
                                                                                                                                
8:59:47 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  inquired  if the  department  would  have  concern                                                               
should the entire allocation be  harvested by a single vessel, or                                                               
is that regarded as a policy issue.                                                                                             
                                                                                                                                
MR.  HILSINGER responded  that  it would  be  a policy  decision,                                                               
which the department would not enter into.                                                                                      
                                                                                                                                
CHAIR SEATON clarified that the  number of vessels fishing is not                                                               
part of the regulatory process  that the state would be concerned                                                               
with, as long as goals were being met.                                                                                          
                                                                                                                                
MR.  HILSINGER  said  that  the allocation  goals  would  be  the                                                               
primary concern,  and he cautioned  that many  fishery management                                                               
strategies  evolve  depending  on  how  well  they  are  working;                                                               
predictability is not always possible.                                                                                          
                                                                                                                                
9:01:31 AM                                                                                                                    
                                                                                                                                
MR. HILSINGER continued, paraphrasing from a prepared statement,                                                                
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Bering Sea Korean hair crab                                                                                                
                                                                                                                                
     Hair crab  fishing in  the Bering  Sea has  been closed                                                                    
     since  2001.    This stock  has  declined  dramatically                                                                    
     since the  early 1980s.   Since  harvest rates  in this                                                                    
     fishery were always  low, it is likely  this decline is                                                                    
     not related to the fishery.                                                                                                
                                                                                                                                
     Hair crab  fishing is characterized by  vessels fishing                                                                    
     a large number  of pots and achieving  a relatively low                                                                    
     catch per pot.  Male  hair crabs average just less than                                                                    
     1.5 ponds each.                                                                                                            
                                                                                                                                
     Before   the   department  considers   reopening   this                                                                    
     fishery,  the stock  size needs  to rebound  to greater                                                                    
     than 50 percent  of the long term  average biomass with                                                                    
     adequate numbers of females and  a size distribution of                                                                    
     sub-legal   and   legal   males   that   would   ensure                                                                    
     recruitment could replace harvest.                                                                                         
                                                                                                                                
     The more boats expected  to participate in the fishery,                                                                    
     the higher  the bar would  be.  One  particular concern                                                                    
     of  having  a  large  fleet in  this  fishery  is  that                                                                    
     because  of the  low  catch rates,  a  larger fleet  is                                                                    
     likely  to  spread  out  over  a  larger  area.    This                                                                    
     increases  the likelihood  of bycatch,  especially blue                                                                    
     king crabs, which are currently very depressed.                                                                            
                                                                                                                                
     The smaller  fleet under a  vessel based  limited entry                                                                    
     program  would increase  the  possibility of  reopening                                                                    
     the   fishery  sooner   and  it   would  decrease   the                                                                    
     likelihood  of incidental  catches impacting  blue king                                                                    
     crabs.                                                                                                                     
                                                                                                                                
     For these reasons, the  Department continues to support                                                                    
     the vessel based limited entry  program as an important                                                                    
     element in the overall  management strategy to provide,                                                                    
     or   bring   back,    viable   fisheries   while   also                                                                    
     implementing  necessary scallop  and crab  conservation                                                                    
     measures.                                                                                                                  
                                                                                                                                
9:05:41 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON  asked how  many  vessels  left the  crab  fishery,                                                               
during the crab buy out and consolidation.                                                                                      
                                                                                                                                
MR. HILSINGER responded that loss of  vessels is an issue, but he                                                               
does not  have a count  to report.   An assessment will  be made,                                                               
when a pending date for an opening is established.                                                                              
                                                                                                                                
CHAIR SEATON  commented on how  a vessel license permit  could be                                                               
fished  by  another  fisherman; creating  a  healthy  fleet,  and                                                               
maintaining the value of each permit.                                                                                           
                                                                                                                                
9:08:07 AM                                                                                                                    
                                                                                                                                
MR. HILSINGER offered  that if the vessel based  system goes away                                                               
then  it  would  become  an  open  system,  and  any  boat  could                                                               
participate.   Prices, harvest limits, and  other variables would                                                               
then drive the viability of the fishery.                                                                                        
                                                                                                                                
9:09:10 AM                                                                                                                    
                                                                                                                                
CHAIR   SEATON  queried   whether   the   department  could   not                                                               
reestablish  this  as   a  limited  entry  fishery;   as  it  was                                                               
originally announced.                                                                                                           
                                                                                                                                
MR.  HILSINGER deferred  to  the  limited entry  witness.   To  a                                                               
further question, he said he  is looking forward to reviewing the                                                               
recommendations contained in the committee packet.                                                                              
                                                                                                                                
9:10:30 AM                                                                                                                    
                                                                                                                                
ALAN  AUSTERMAN, North  Pacific  Scallop Coop,  responded to  the                                                               
issues of  crossing the state  and federal lines, during  a pull,                                                               
stating that it is his understanding  that this is tracked by the                                                               
observers.    He encouraged  the  committee  to establish  policy                                                               
guidelines  upon  which  ADF&G  could  base  regulations,  and  a                                                               
management plan.   The department needs direction  on this issue,                                                               
he stressed.  The department cannot  set policy, and the BOF will                                                               
set  policy  based  on  legislative action.    The  industry  and                                                               
managers need the tools provided  by the legislature.  The sunset                                                               
date needs to  timed to allow adequate opportunity  for the fleet                                                               
to make adjustments, and adapt to  any new system.  A significant                                                               
portion of  the fishery  occurs in  the winter  months, following                                                               
the December  31, 2008,  sunset date,  and, if  this bill  is not                                                               
passed,  consideration  will need  to  be  given  as to  how  the                                                               
remainder of that season will be fished.                                                                                        
                                                                                                                                
9:16:45 AM                                                                                                                    
                                                                                                                                
TERESSA KANDIANIS,  President, North Pacific  Scallop Cooperative                                                               
(NPSC),  stated  support  for  HB  16,  and  paraphrased  from  a                                                               
prepared statement,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Correction  of   the  CFEC  list  of   Scallop  permits                                                                    
     attached to  their memorandum of  March 28, 2007:   The                                                                    
     Permit owned by Future  Fisheries, Inc. of New Bedford,                                                                    
     MA  is  NOT  a  member of  the  North  Pacific  Scallop                                                                    
     Cooperative.   The Carolina  Boy permit  is owned  by a                                                                    
     Washington corporation.                                                                                                    
                                                                                                                                
     The   NPSC   requires   members  to   maintain   Vessel                                                                    
     Monitoring Systems  (VMS) on their vessels  even though                                                                    
     it not required by regulation.                                                                                             
                                                                                                                                
     The  NPSC requires  members to  make  available all  of                                                                    
     their  electronic  fishing  data to  observers  and  to                                                                    
     ADF&G even though this is not required by regulation.                                                                      
     The NPSC  has categorically, absolutely NOT  offered to                                                                    
     buy a vessel and/or a scallop permit.                                                                                      
                                                                                                                                
     The  North Pacific  Fishery Management  Council (NPFMC)                                                                    
     did a recent and thorough  analysis of the viability of                                                                    
     various  scallop  fishing  gear configurations.    This                                                                    
     analysis is available on line  at the NPFMC website and                                                                    
     is  included  in  the Fisheries  Subcommittee  back  up                                                                    
     information.                                                                                                               
                                                                                                                                
     The 2008  scallop fishing season  ends on  February 15,                                                                    
     2009.  The sunset  of the Statewide Weathervane Scallop                                                                    
     License program  is December 31,  2008.   Not extending                                                                    
     the program  beyond that  date creates  complexities in                                                                    
     management for the 2008 fishing season.                                                                                    
                                                                                                                                
     Finally,   sustainability  and   conservation  of   the                                                                    
     scallop  resource  is the  core  of  the North  Pacific                                                                    
     Scallop Cooperative.  Its purpose  and by-laws focus on                                                                    
     conservation of  the scallop resource and  reduction of                                                                    
     crab bycatch.                                                                                                              
                                                                                                                                
9:19:55 AM                                                                                                                    
                                                                                                                                
SCOTT  MCALLISTER,   Member,  Sitka  Sac  Roe   Group,  Southeast                                                               
Seiners,  Marketing  Chair,  United Fishermen  of  Alaska  (UFA),                                                               
testified that  this is the  classic conflict between  market and                                                               
resource, of who may and who  may not participate.  Alaska is the                                                               
last state  with enough resources  to manage for  abundance base.                                                               
A user group has been  identified and balanced with the abundance                                                               
of  these resources.    The groups  he  represents are  primarily                                                               
interested  in how  the  stewardship of  this  resource is  being                                                               
handled, and how the commercial allocations are administered.                                                                   
                                                                                                                                
CHAIR SEATON asked if he had  a position to express regarding the                                                               
issuance  of limited  entry permits  to individual  fishermen vs.                                                               
investors; individual or corporate vessel owners.                                                                               
                                                                                                                                
MR. MCALLISTER  said, "No,  we don't have  a problem  with that."                                                               
The regulation  occurred at the  legislative level.  "I  think it                                                               
works just fine the way it is," he finished.                                                                                    
                                                                                                                                
9:23:05 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  if  UFA  officially  endorses  the                                                               
passage of HB 16.                                                                                                               
                                                                                                                                
MR. MCALLISTER clarified that he  is not representing UFA on this                                                               
issue.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX  queried  that  neither he  nor  those  he                                                               
represents  have  a concern  with  individual  fishing quotas  in                                                               
Alaskan waters.                                                                                                                 
                                                                                                                                
MR. MCALLISTER responded  that it does not effect  the fishery of                                                               
those  he represents.   Should  it enter  those waters,  it would                                                               
become  a discussion  point  in  the group.    "We  don't have  a                                                               
problem with  [HB 16] going  forward," he  said.  To  a follow-up                                                               
question  he reiterated  that  he represents  the  Sitka Sac  Roe                                                               
Group.                                                                                                                          
                                                                                                                                
9:24:08 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  affirmed  that  he  is  recommending  the                                                               
passage of HB 16.                                                                                                               
                                                                                                                                
MR. MCALLISTER replied, "Yes."                                                                                                  
                                                                                                                                
9:24:33 AM                                                                                                                    
                                                                                                                                
BOB  THORSTENSON, President,  United Fishermen  of Alaska  (UFA),                                                               
provided  an official  neutral  position  from the  organization.                                                               
The  legislation was  fully  vetted  by UFA,  he  reported.   The                                                               
narrow  focus and  compelling reasons  that this  legislation was                                                               
enacted has proven acceptable and deemed necessary.                                                                             
                                                                                                                                
9:27:57 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX noted  that neutral  does not  indicate an                                                               
endorsement.                                                                                                                    
                                                                                                                                
MR. THORSTENSON  said that any  of the 36 independent  UFA groups                                                               
could have chosen to oppose this bill, however, none have.                                                                      
                                                                                                                                
REPRESENTATIVE LEDOUX asked if the  UFA had a board meeting where                                                               
this was discussed to arrive at the neutral position.                                                                           
                                                                                                                                
MR. THORSTENSON responded,  "Yes, both in 2002 and  in January of                                                               
this year."                                                                                                                     
                                                                                                                                
9:28:53 AM                                                                                                                    
                                                                                                                                
MR. THORSTENSON  named the 18  hair crab fishery  permit holders,                                                               
and their locations;  33 percent are Alaskan.  The  hair crab and                                                               
scallop  fishery   are  probably  the  two   Alaskan  large  boat                                                               
fisheries that exist, he opined,  and provided a brief summary of                                                               
the Mr.  Big incident.  Today  the scallops are harvested  over a                                                               
seven  to  eight  month  period, the  by-catch  is  minimal,  the                                                               
environment is  protected, and the  catch product  represents the                                                               
highest quality scallop in the  world.  Because more fishing time                                                               
is  involved, more  shore landings  are made,  which provides  an                                                               
influx of economic  support to the ports of  call.  Additionally,                                                               
he  said  these   are  programs  that  have  been   working.    A                                                               
philosophical argument  exists that the  permit must go  with the                                                               
person, however,  there has not  been abuse of  this legislation,                                                               
and he urged passage of HB 16.                                                                                                  
                                                                                                                                
9:32:18 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  referred to  the  hair  crab fishery  and                                                               
asked whether it has been fished.                                                                                               
                                                                                                                                
MR. THORSTENSON affirmed that is has not been fished since 2001.                                                                
                                                                                                                                
9:32:49 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON asked  how many  limited entry  programs have  been                                                               
instituted in Alaska, since this legislation was enacted.                                                                       
                                                                                                                                
MR. THORSTENSON deferred.                                                                                                       
                                                                                                                                
CHAIR SEATON  noted that  if none have  been instituted,  then no                                                               
effect could be observed.                                                                                                       
                                                                                                                                
9:33:22 AM                                                                                                                    
                                                                                                                                
SHAWN DOCHTERMAN, Vice President,  Alaska Jig Association, stated                                                               
opposition to HB 16.   He said that he is not  in tune with these                                                               
fisheries,   however  the   limited   number   of  vessels   that                                                               
participate raises a  concern.  He pointed out  the importance of                                                               
the  limited entry  regulations  and suggested  that issuing  the                                                               
permit to the  vessel is a type of rationalization.   He stressed                                                               
the importance  of having  "the boots  on the  deck, stay  on the                                                               
boat."                                                                                                                          
                                                                                                                                
9:35:14 AM                                                                                                                    
                                                                                                                                
JULIE  KAVANAUGH said  she  is  the owner  of  six limited  entry                                                               
permits.   She  stated  opposition  to HB  16,  noting that  this                                                               
legislation  serves a  small special  interest group.   The  bill                                                               
could be  challenged on a  constitutional basis, she  opined, but                                                               
conceded that  it has  allowed better  management of  the stocks.                                                               
Further, she said that using this  as a model for other fisheries                                                               
would be detrimental.                                                                                                           
                                                                                                                                
9:37:53 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON asked whether she  would fish either one of                                                               
these fisheries.                                                                                                                
                                                                                                                                
MS. KAVANAUGH replied that it would be a possibility.                                                                           
                                                                                                                                
9:38:46 AM                                                                                                                    
                                                                                                                                
ALEXUS KWACHKA  stated opposition to  HB 16, and cited  a concern                                                               
for corporate ownership of limited entry permits.  He said:                                                                     
                                                                                                                                
     Why  did we  stray  so  far from  the  operator to  the                                                                    
     vessel,  and now  we see  ... consolidation  across the                                                                    
     state ...  and it's going  to wipe this  community out.                                                                    
     ... We've lost five or  six businesses in the last year                                                                    
     in this  community alone.   What I see is  nine vessels                                                                    
     ... consolidated  down to  three; I  want to  know what                                                                    
     those  other  six vessels  are  doing.   Are  they  off                                                                    
     generating   revenue  somewhere   else,  or   are  they                                                                    
     prosecuting another  fishery. ...  We have  strayed too                                                                    
     far, and  we're straying  further.   Let's get  back on                                                                    
     course here.                                                                                                               
                                                                                                                                
9:41:26 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX noted  that he stated how this  bill is not                                                               
bad  in itself,  but coupled  with other  things it  is bad,  and                                                               
asked him to elaborate.                                                                                                         
                                                                                                                                
MR. KWACHKA  restated his  concern for moving  away from  CFEC to                                                               
corporate ownership.                                                                                                            
                                                                                                                                
9:42:53 AM                                                                                                                    
                                                                                                                                
MAX HULSE stated support for HB  16, commenting that he would not                                                               
be in  favor of large  corporations owning the permit,  or vessel                                                               
oriented permits.  He opined that  the permit should be issued to                                                               
the  individual   fishermen  who  actively  participate   in  the                                                               
fishery.   He paraphrased from  a prepared statement,  which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     To open the State scallop  fishery to all would greatly                                                                    
     impact our  income from the  scallop fishery.   Looking                                                                    
     at the  total scallop quota  for Alaska waters  and the                                                                    
     small percentage and concentration  of scallops in just                                                                    
     State  waters, compared  to Federal  waters, makes  the                                                                    
     profit margin  slim as  is.  Then  to add  more fishing                                                                    
     pressure will surely reduce the  profit margin in State                                                                    
     waters to near zero.                                                                                                       
                                                                                                                                
     When  Federal Scallop  Permits were  issued in  1999 by                                                                    
     the  NMFS  our  vessel  and  another  vessel,  the  F/V                                                                    
     Kilkenney out  of Homer were  restricted to the  use of                                                                    
     one 6 foot dredge in  federal waters, which we felt was                                                                    
     unfair due to our  extensive involvement in the scallop                                                                    
     fishery since 1982.                                                                                                        
                                                                                                                                
     The use  of only  one 6 foot  dredge in  Federal waters                                                                    
     made it impossible  to make a go of it,  even though we                                                                    
     could use two  dredges in State waters.   With the high                                                                    
     cost of fuel, an  onboard observer at $325.00/day++ you                                                                    
     need  to be  able to  fish  in both  Federal and  State                                                                    
     waters with two dredges to make a reasonable profit.                                                                       
                                                                                                                                
     In  2003  we took  our  6  foot dredge  situation  back                                                                    
     before the  Council and  they reversed  our restriction                                                                    
     allowing  us to  use  two 10  foot  dredges in  Federal                                                                    
     waters starting in 2006.                                                                                                   
                                                                                                                                
     Of  the  four  vessels  now actively  involved  in  the                                                                    
     Alaska fishery, the two Alaska  based vessels - the F/V                                                                    
     Wayward  Wind and  the F/V  Kilkenney are  much smaller                                                                    
     and  more susceptible  to bad  weather.   Thus,  during                                                                    
     poor  weather the  two larger  vessels would  choose to                                                                    
     fish longer  in Federal waters, which  have much denser                                                                    
     beds  of  scallops, letting  us  fish  in calmer  State                                                                    
     waters.                                                                                                                    
                                                                                                                                
     Also,  it is  our feeling  that permits  should not  be                                                                    
     issued  to vessels,  but  to  individual fishermen  who                                                                    
     have made  the investment  and actively  participate in                                                                    
     the fishery.                                                                                                               
                                                                                                                                
     If  the moratorium  is not  extended:   1.   How  would                                                                    
     quota be divided between State  and Federal waters?  2.                                                                    
     Would  there be  a dredge  size restriction  as to  the                                                                    
     length of  vessel?   3.   How would  enforcement handle                                                                    
     adherence  to the  2  mile limit  -  Federal and  State                                                                    
     scallop  beds  are close  together.    4.   Are  moneys                                                                    
     available to cover necessary surveys and enforcement?                                                                      
                                                                                                                                
9:46:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   WILSON   inquired   whether   there   would   be                                                               
environmental damage to the ocean bottom, if this fishery were                                                                  
opened up.                                                                                                                      
                                                                                                                                
MR. HULSE responded that he is unsure.  However, the four                                                                       
questions, at the end of his prepared statement also need to be                                                                 
addressed, he said.                                                                                                             
                                                                                                                                
9:48:12 AM                                                                                                                    
                                                                                                                                
TOM GILMARTIN, resident scallop fisherman, stated opposition to                                                                 
HB 16, paraphrasing from a prepared statement, which read as                                                                    
follows:                                                                                                                        
                                                                                                                                
     Because the  scallop fishery rules and  regulations are                                                                    
     designed   around  a   cooperative  of   mostly  latent                                                                    
     permits.    I  believe  the   time  has  come  for  the                                                                    
     legislature to  step in  and open  the fishery  for the                                                                    
     greater good.                                                                                                              
                                                                                                                                
     WE need a BILL that:                                                                                                       
                                                                                                                                
     1)  Amends  AAC  75.300  definitions in  AS    43.75(4)                                                                    
     "processing" does  not include decapitating  shrimp and                                                                    
     gutting,  gilling,   sliming,  or  icing   a  fisheries                                                                    
     resource solely for ... maintaining  the quality of the                                                                    
     fresh  resource.   And add  shucking  scallops to  this                                                                    
     definition.                                                                                                                
                                                                                                                                
     2) [Gives]  open access  for all of  those that  hold a                                                                    
     small  vessel crab  permit.   This because  crab stocks                                                                    
     are  most affected  by scallop  activities.   This lets                                                                    
     the crabbers participate and act  as good [stewards] by                                                                    
     fishing  out of  high crab  areas.   Or  they may  sell                                                                    
     their  scallop permit  to any  other fisherman  if they                                                                    
     choose.                                                                                                                    
                                                                                                                                
     3) Allows only  one 12 foot dredge or  smaller in state                                                                    
     waters.                                                                                                                    
                                                                                                                                
     4) Imposes 1,000 Pound trip  Limits per calendar day or                                                                    
     twice  a  week  on  all  trips  for  the  small  vessel                                                                    
     operations.  Possession over 1,000 pounds not allowed.                                                                     
                                                                                                                                
     5) Imposes  15,000 Pound trip  limits on  the federally                                                                    
     licensed vessels.                                                                                                          
                                                                                                                                
     6) Require Electronic Vessel  Monitoring Systems VMS on                                                                    
     all  scallop vessels  including the  federally licensed                                                                    
     nine.                                                                                                                      
                                                                                                                                
     7)  Require  digital  cameras on  all  scallop  vessels                                                                    
     decks in place of observers.                                                                                               
                                                                                                                                
     8)  Require  10  percent observer  coverage  funded  by                                                                    
     adding extra pounds  to each trip limit  an observer is                                                                    
     on board.                                                                                                                  
                                                                                                                                
     9) Stop  training observers for  regulatory compliance;                                                                    
     they are on board for biology only.                                                                                        
                                                                                                                                
     A Bill like this would create lots of jobs.                                                                                
                                                                                                                                
9:50:24 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON asked if he is an active scallop                                                                          
fisherman.                                                                                                                      
                                                                                                                                
MR. GILMARTIN  responded that he  missed last season due  to lack                                                               
of operational  funds.   His outstanding  observer bill  has kept                                                               
him tied to the dock.                                                                                                           
                                                                                                                                
REPRESENTATIVE WILSON queried  what the benefit would  be to have                                                               
more scallop fishermen on the water.                                                                                            
                                                                                                                                
MR. GILMARTIN  suggested that people should  have the opportunity                                                               
to fish  for 200 or 300  pounds everyday.  They  could pool their                                                               
resources and work  as a group.  The current  cooperative has two                                                               
boats fishing.                                                                                                                  
                                                                                                                                
9:51:37 AM                                                                                                                    
                                                                                                                                
CHAIR SEATON  closed public testimony,  and announced that  HB 16                                                               
would be held.                                                                                                                  
                                                                                                                                
HB 188-BOARD OF FISHERIES' AUTHORITY                                                                                          
                                                                                                                                
[Contains discussion of HB 16.]                                                                                                 
                                                                                                                                
CHAIR SEATON announced that the  final order of business would be                                                               
SPONSOR SUBSTITUTE  FOR HOUSE BILL  NO. 188, "An Act  relating to                                                               
the  authority  of the  Board  of  Fisheries to  allocate  within                                                               
fisheries; and providing for an effective date."                                                                                
                                                                                                                                
9:52:14 AM                                                                                                                    
                                                                                                                                
CHAIR  SEATON said  that the  legal opinions  attached to  HB 188                                                               
state that there  is a need for the legislature  to make specific                                                               
allowances if  there is to be  a fishery in which  a person gains                                                               
money without participating.  That  is the essence of the Grunert                                                               
court  decision:   a  person  may  not  benefit from  an  Alaskan                                                               
fisheries  entry permit  without  participation  in the  fishery.                                                               
The extension  of HB  16 continues  the legislation  which allows                                                               
someone to  be paid  for their participation  in a  coop, without                                                               
being active in the fishery.   These points are the equivalencies                                                               
between these two bills.                                                                                                        
                                                                                                                                
[HB 188 was held.]                                                                                                              

Document Name Date/Time Subjects