Legislature(2007 - 2008)BARNES 124

03/26/2008 01:00 PM House RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HCR 22 REGULATION OF FISHERIES TELECONFERENCED
Heard & Held
*+ HB 241 STAMPEDE STATE RECREATION AREA TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HCR 22-REGULATION OF FISHERIES                                                                                                
                                                                                                                              
1:18:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON  announced that  the  first  order of  business                                                               
would  be  HOUSE  CONCURRENT RESOLUTION  NO.  22,  Affirming  the                                                               
legislative  intent  of  state  law  that  the  Alaska  Board  of                                                               
Fisheries  currently  has the  tools  and  authority to  allocate                                                               
fishery resources  within a fishery  based on vessel  size class,                                                               
gear limits, trip limits, and registration areas.                                                                               
                                                                                                                                
1:19:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL SEATON, Alaska  State Legislature, sponsor of                                                               
HCR 22, paraphrased from the  following written sponsor statement                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     HCR 22  affirms that legislative intent  behind current                                                                  
     law  allows  the  Board  of   Fisheries  to  manage  by                                                                    
     allocation  based  on  vessel  size,  gear  type,  trip                                                                    
     limits,  and different  districts in  an administrative                                                                    
     area.                                                                                                                      
                                                                                                                                
     The  resolution was  introduced  to  provide the  court                                                                    
     with  clear  understanding  of the  Legislative  intent                                                                    
     utilized  for  current fisheries  management  statutes.                                                                    
     This  will  be   important  if  management  regulations                                                                    
     adopted  over  the past  many  years  by the  Board  of                                                                    
     Fisheries are challenged in court.                                                                                         
                                                                                                                                
     Following the  Grunert decision  by the  Alaska Supreme                                                                    
     Court  regarding  the   Chignik  co-operative  fishery,                                                                    
     attorneys  for the  Board of  Fisheries have  cautioned                                                                    
     that  any  allocation within  a  fishery  by the  Board                                                                    
     including long  standing fundamental  regulations could                                                                    
     be in danger of being overturned.                                                                                          
                                                                                                                                
     This  concern  is  highly  speculative.    The  Grunert                                                                    
     decision   focused  on   a  regulation   allowing  non-                                                                    
     participants   to   benefit   from   the   efforts   of                                                                    
     participants.   This  ran afoul  of  the Limited  Entry                                                                    
     Act, which requires  the benefit of a fishery  to go to                                                                    
     active participants.  The discussion  in the Grunert is                                                                    
     separate  from  the  wide  range  of  management  tools                                                                    
     adopted by the board that flow from current law.                                                                           
                                                                                                                                
     This Department  of Law  interpretation of  the effects                                                                    
     of the Grunert decision  has factored into recent Board                                                                    
     of  Fisheries  decisions  to not  adopt  a  variety  of                                                                    
     proposals   that   would   have   allocated   fisheries                                                                    
     resources  within  a  fishery  based  on  the  historic                                                                    
     intent of our statutes.                                                                                                    
                                                                                                                                
     HCR  22 encourages  the Board  of Fisheries  to proceed                                                                  
     with  the   management  of  public   resources  without                                                                    
     speculative  consideration  of the  Grunert  decisions.                                                                    
     It  does  not provide  the  board  with any  additional                                                                    
     allocation    authority.       It    simply    provides                                                                    
     reaffirmation  of  the  legislative intent  of  current                                                                    
     statutes.                                                                                                                  
                                                                                                                              
REPRESENTATIVE  SEATON drew  attention to  the 1/28/08  memo from                                                               
legislative counsel Brian Kane of  Legislative Legal and Research                                                               
Services, along with other materials in the committee packets.                                                                  
                                                                                                                                
1:22:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO inquired whether there  is any connection to sport                                                               
fishing in HCR 22.                                                                                                              
                                                                                                                                
REPRESENTATIVE SEATON  responded no,  a fishery  is defined  by a                                                               
species, a gear,  and an area.   There is no intent in  HCR 22 to                                                               
say  anything  other than  allowing  the  Board of  Fisheries  to                                                               
continue to  manage the  fisheries of the  state under  the exact                                                               
same  principle the  board has  been using  since statehood.   It                                                               
lets  the board  know that  the  legislature does  not think  the                                                               
Grunert  decision has  these  unintended  consequences that  have                                                             
been  raised speculatively  that  would not  let  the board  make                                                               
decisions based on the parameters it has been using for years.                                                                  
                                                                                                                                
1:24:16 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO requested a synopsis  of [Grunert v. State (Alaska                                                             
2005)] (Grunert I) and [State  v. Grunert (Alaska 2006)] (Grunert                                                         
II) as well as [State v. Herbert (Alaska 1990)] (Herbert).                                                                
                                                                                                                                
REPRESENTATIVE SEATON  explained that the 100-104  permit holders                                                               
in the  Chignik fishery on  the Alaska Peninsula asked  the Board                                                               
of Fisheries to allow them to  harvest the fish in a co-operative                                                               
basis.   But what they  really asked for  was an allocation  of a                                                               
percentage  of  the harvest  based  on  how many  permit  holders                                                               
signed up  in the  co-operative, so it  would not  be competitive                                                               
anymore.  Only a few boats  participated, but checks were sent to                                                               
all the  permit holders in  the co-operative.  The  supreme court                                                               
ruled that the  limited entry statute says permits have  to be to                                                               
natural persons  and the person  has to  be a participant  in the                                                               
fishery;  so a  person  could not  gain revenue  by  the work  of                                                               
others by virtue of  just owning a permit.  The  court did not go                                                               
to  the constitutionality,  it only  went as  far as  the limited                                                               
entry law in  the state of Alaska.   In the Grunert  II case, the                                                             
supreme court  ruled against allowing  a scenario in  which every                                                               
permit holder would  participate by making a  few deliveries, but                                                               
in  which each  permit holder  would not  necessarily participate                                                               
equally or for  the full amount of time.   There was some wording                                                               
in the  Grunert II  case that  was interpreted  to mean  that the                                                             
Board  of   Fisheries  cannot  allocate  within   a  fishery  and                                                               
therefore allocation  cannot be done on  vessel sizes, districts,                                                               
gear  limits,   or  trip  limits   as  was  done  in   the  past.                                                               
Representative Seaton said he regards  this as speculative, as do                                                               
many other  people.  Based  on the Department of  Law's opinions,                                                               
the  Board of  Fisheries has  been  holding back  from doing  its                                                               
normal management regimes based on  the idea that those might get                                                               
overturned.                                                                                                                     
                                                                                                                                
1:28:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked  who was representing the state  and who was                                                               
Grunert.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SEATON replied that  Grunert was a Chignik fishery                                                               
fisherman  who disagreed  that  the Board  of  Fisheries had  the                                                               
legal and  constitutional authority  to allocate fish  to someone                                                               
who does  not fish.   The State of  Alaska was defending  in that                                                               
lawsuit because  the Board  of Fish  had passed  the regulations.                                                               
The case  would be written  as Grunert v. State  [(Alaska 2005)].                                                             
In   response  to   further   questions   from  Co-Chair   Gatto,                                                               
Representative Seaton explained that the  state lost the case and                                                               
therefore  could  not   allow  two  fisheries  -   one  that  was                                                               
competitive and one that was  an allocative co-operative in which                                                               
a permit holder could get fish  by putting his or her permit into                                                               
the co-operative.  He clarified  that Grunert I [Grunert v. State                                                           
(Alaska 2005)] was the initial  decision.  The Board of Fisheries                                                               
then  went  back  and  tried  to tweak  the  regulation  so  that                                                               
everyone in  [the co-operative] had  to make a certain  number of                                                               
deliveries in order  to receive a share of the  check.  The court                                                               
came back [in Grunert II] with  the same reading that this is not                                                             
allowed under the limited entry statute.                                                                                        
                                                                                                                                
1:30:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO inquired  whether  Herbert  preceded the  Grunert                                                           
decision.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  SEATON  answered  correct.    He  explained  that                                                               
Herbert  was a  challenge to  the state  regarding superexclusive                                                             
registration  areas.   He  said he  believed it  was  based on  a                                                               
herring  case in  Bristol Bay.   If  a permit  holder picked  one                                                               
area, then the  permit holder could not use his  or her permit to                                                               
fish in  another area in  the herring  fishery in the  same year.                                                               
In   other  words,   a  permit   holder  could   fish  only   one                                                               
administrative area in  a particular year, but  the permit holder                                                               
is free to select  whatever area he or she wants.   In that case,                                                               
the  Supreme Court  said that  is a  quota-setting mechanism  for                                                               
ensuring  an  orderly  fishery  and upheld  that  decision  as  a                                                               
correct way of allocating fisheries.   That was never overturned;                                                               
it was never  mentioned in the Grunert II case  that the decision                                                             
overturned the previous decision.                                                                                               
                                                                                                                                
1:32:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked how  HCR  22  either strengthens  or                                                               
weakens the Board of Fisheries' management.                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  responded  HCR  22  gives  the  Board  of                                                               
Fisheries  the knowledge  that the  legislature understands  that                                                               
the statutes  under which the  board has been  making allocations                                                               
based  on  vessel  size,  trip   limits,  gear  limitations,  and                                                               
registration areas are appropriate and  still in place.  There is                                                               
no  court  decision that  overturns  this.    There is  simply  a                                                               
decision  by  the Department  of  Law's  representatives for  the                                                               
Board of Fisheries  that says Grunert II might have  put those in                                                             
jeopardy and maybe someone would  challenge the regulations based                                                               
on trip limits or gear limits or vessel size.                                                                                   
                                                                                                                                
1:34:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   surmised  that   Representative  Seaton's                                                               
opinion is  that HCR 22 does  not change the Board  of Fisheries'                                                               
position for management.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON replied  he does  not think  the Board  of                                                               
Fisheries' position has  been weakened at all.  It  is simply the                                                               
Department  of  Law  speculating  that  possibly,  if  the  board                                                               
manages  the way  it has  been managing  under current  statutes,                                                               
somebody could take the board to  court and the board might lose.                                                               
The   resolution   just    reaffirms   that   the   legislature's                                                               
understanding  is  that  current  statutes  allow  the  Board  of                                                               
Fisheries  to continue  to function  as it  has unless  the court                                                               
rules that  it is  wrong.   He said  he thinks  the court  is not                                                               
going  to make  the decision  that the  board does  not have  the                                                               
authority because  otherwise in Grunert  II the court  would have                                                             
said it was overturning its Herbert ruling.                                                                                   
                                                                                                                                
1:36:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  inquired whether someone from  the Board of                                                               
Fisheries would be testifying.                                                                                                  
                                                                                                                                
CO-CHAIR  JOHNSON  said  there  is  no  one  from  the  Board  of                                                               
Fisheries, but there is someone from the Department of Law.                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  noted that Legislative Legal  and Research                                                               
Services  has  taken a  position  contradictory  to that  of  the                                                               
assistant attorney general  for the Board of Fisheries.   He said                                                               
HCR 22 reaffirms  the position of Legislative  Legal and Research                                                               
Services.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  ROSES  commented  he   had  noticed  the  dueling                                                               
opinions, but  that is something  that happens with  nearly every                                                               
bill so  he does not put  a lot of stock  in it.  His  concern is                                                               
whether HCR 22  minimizes or maximizes the board's  ability to do                                                               
what the  legislature has charged it  to do.  He  said that while                                                               
he does  not understand the  intricacies of what HCR  22 actually                                                               
gets, his decision  of yes or no on the  resolution is whether it                                                               
has  a positive  or negative  impact on  the Board  of Fisheries'                                                               
ability to manage itself the way the legislature expects it to.                                                                 
                                                                                                                                
1:38:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON requested  Representative Seaton to explain                                                               
why he  feels HCR 22  is better than [HB  188] that would  do the                                                               
very same thing.                                                                                                                
                                                                                                                                
CO-CHAIR JOHNSON explained there is a  bill [HB 188] in the House                                                               
Special  Committee   on  Fisheries  that  addresses   this  issue                                                               
directly  and  would  put  it   into  statute  as  opposed  to  a                                                               
resolution.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON answered  that HCR  22, if  passed by  the                                                               
legislature  and  signed  by  the  governor,  would  express  the                                                               
opinion of  two branches of  government that the method  in which                                                               
the Board of Fisheries has  been operating and the allocations it                                                               
has made,  other than Grunert  I and Grunert II,  are appropriate                                                           
and are  the statute.  The  bill [HB 188] would  change state law                                                               
and  there  are  some  implications  in that.    There  are  also                                                               
proposals  in the  bill to  overturn  Grunert I  and Grunert  II.                                                           
People have testified  that overturning Grunert is  what the bill                                                             
will do, although the sponsor says  that is not the intent.  That                                                               
will not  happen with  the resolution.   The resolution  lets the                                                               
courts know that the legislature  believes the Board of Fisheries                                                               
has  the  statutory  authority   and  is  appropriately  managing                                                               
fisheries within the board's allocation  schemes.  The bill would                                                               
change the  statute and there are  some people who would  like to                                                               
change the constitution in the same way.                                                                                        
                                                                                                                                
1:41:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON  asked whether Representative  Seaton feels                                                               
a resolution will really have any  weight with the court versus a                                                               
bill that changes the words.                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  responded he  does, and the  legal opinion                                                               
from Legislative Legal and Research  Services also says the court                                                               
would look at the resolution.                                                                                                   
                                                                                                                                
CO-CHAIR  JOHNSON  inquired   whether  Representative  Seaton  is                                                               
referring to  the Legislative Legal  and Research  Services legal                                                               
opinion from Brian Kane dated 1/28/08.                                                                                          
                                                                                                                                
REPRESENTATIVE SEATON replied correct.   He drew attention to the                                                               
last two sentences on page 2  which state:  "A resolution stating                                                               
the   legislative  intent   could  provide   'guidance,'  but   a                                                               
resolution does not carry the power  to obligate a court to defer                                                               
to the  intent stated in  a resolution.   A resolution  of intent                                                               
might  be a  factor a  court looked  at, but  the court  would be                                                               
under no duty to do so."                                                                                                        
                                                                                                                                
1:43:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  JOHNSON surmised  the intent  of HCR  22 is  to send  a                                                               
signal as opposed to a direction.                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON answered correct.                                                                                         
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  if Representative  Seaton  has                                                               
checked historically  to see  whether the  courts have  looked at                                                               
resolutions as they pertain to cases  about fish as well as cases                                                               
about other topics.                                                                                                             
                                                                                                                                
REPRESENTATIVE SEATON  responded he has  not.  He said  he thinks                                                               
this is an unusual situation  because there is no court direction                                                               
saying  the   Board  of  Fisheries   cannot  exercise   its  full                                                               
authorities, it  is simply  an attorney  general's interpretation                                                               
that the state might lose if someone were to make a challenge.                                                                  
                                                                                                                                
1:45:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON opened public testimony.                                                                                       
                                                                                                                                
AL ANDERSON  stated that if the  Board of Fisheries was  going to                                                               
get sued  over the decisions it  has made, it seems  the lawsuits                                                               
would have  been filed by  now since the ruling  happened several                                                               
years ago.                                                                                                                      
                                                                                                                                
CO-CHAIR JOHNSON stated the [Herbert] ruling was in 1990.                                                                     
                                                                                                                                
REPRESENTATIVE SEATON added there was  a 2005 decision and a 2006                                                               
decision for Grunert I and Grunert II [respectively].                                                                       
                                                                                                                                
MR. ANDERSON  said he  does not understand  the reason  for doing                                                               
this.  Up  until the Chignik decision the Board  of Fisheries was                                                               
within its bounds to do whatever  it was doing.  That decision is                                                               
the only  thing he thinks  the board did  wrong in regard  to the                                                               
limited entry.   He  said he  thinks most  other people  feel the                                                               
same  way because  the Board  of Fisheries  has not  been slammed                                                               
with a bunch of lawsuits.                                                                                                       
                                                                                                                                
1:47:53 PM                                                                                                                    
                                                                                                                                
NORENE  JONES,  Secretary,  Chignik Fishermen  United,  spoke  on                                                               
behalf of Mr. Morris Jones, president of the organization:                                                                      
                                                                                                                                
     Chignik  Fishermen  United  would like  to  inform  the                                                                    
     Alaska State  Legislature that we are  taking a neutral                                                                    
     position  on HCR  22  and we  stand  firmly behind  the                                                                    
     Grunert decision.  We are  also adamantly opposed to HB
     188 and SB 184 as we believe these bills undermine the                                                                     
     Alaska state Limited Entry Act.                                                                                            
                                                                                                                                
1:49:56 PM                                                                                                                    
                                                                                                                                
LANCE   NELSON,  Senior   Assistant  Attorney   General,  Natural                                                               
Resources  Section,  Civil  Division (Anchorage),  Department  of                                                               
Law, stated he  is one of the attorneys who  advises the Board of                                                               
Fisheries  on  a   regular  basis.    He  is   the  attorney  who                                                               
represented the Board of Fisheries  in the two Grunert decisions.                                                             
He said  [the Department of Law]  does not oppose HCR  22 per se,                                                               
but [the  department] thinks the  resolution will  not accomplish                                                               
what is hoped  for because it will not have  any legal affect one                                                               
way or the other.                                                                                                               
                                                                                                                                
MR. NELSON explained the case  is called State v. Grunert because                                                             
Grunert  was  the  plaintiff  below,  but  after  losing  at  the                                                               
superior court level the state  appealed and became the appellant                                                               
in  the  supreme court  appeal.    That case  banned  allocations                                                               
within a single fishery and  it defined single fishery broadly to                                                               
include different sizes  of the same type of  basic fishing gear.                                                               
The gist  of that part  of the decision  was that just  because a                                                               
different  size of  gear is  used,  that does  not mean  it is  a                                                               
different fishery.   It also  held that use  by one group  of net                                                               
pens and fixed  leads, as well as purse seines,  did not create a                                                               
different  fishery.   So  this  part of  the  ruling is,  legally                                                               
speaking, separate from  the flaws that the court  found with the                                                               
co-op aspect  of the fishery.   [The Department of  Law] believes                                                               
it would be interpreted by  the courts independently of the co-op                                                               
kind  of circumstances.    He  said that  is  what explains  [the                                                               
department's] basis  for supporting HB  188 which would  put into                                                               
statutory language the clarification  of the board's authority to                                                               
allocate within  a fishery  as it does  in many  situations right                                                               
now under current regulations.                                                                                                  
                                                                                                                                
1:52:39 PM                                                                                                                    
                                                                                                                                
MR. NELSON  noted [the state] has  been sued.  A  legal challenge                                                               
was filed against  the Prince William Sound  sablefish fishery in                                                               
2006.   [The state]  was able  to settle  the case  without going                                                               
very far  into the  litigation process  because the  attorney and                                                               
the  fisherman challenging  the  regulation were  not aware  that                                                               
there   was  a   statute  and   regulation  providing   for  late                                                               
registration  in  certain  circumstances and  the  fisherman  was                                                               
suing  to invalidate  the  regulation because  he  had failed  to                                                               
register on  time.  [The  state] was able  to settle the  case by                                                               
allowing the fisherman to register late.                                                                                        
                                                                                                                                
MR.  NELSON said  the  key question  for  courts in  interpreting                                                               
statutes  is   to  try  to   identify,  What  was   the  adopting                                                               
legislature's  intent?   A  concurrent  resolution  adopted by  a                                                               
subsequent legislature does  not amend the law  as interpreted by                                                               
the  court  in the  Grunert  case.    It  does not  constitute  a                                                             
legislative history  or legislative intent  as to the  meaning of                                                               
the law interpreted by the court  because it is not an expression                                                               
of intent  by the  adopting body.   He said he  has been  able to                                                               
find  no example  where  a court  considered  a subsequent  post-                                                               
enactment legislative  resolution to interpret  the legislature's                                                               
intent  in adopting  the original  statute.   On the  other hand,                                                               
there are many examples where the  supreme court has said it will                                                               
not consider  post-enactment explanations even by  a bill's prime                                                               
sponsor  to explain  legislative intent.   This  case is  an even                                                               
more extenuated  circumstance because the current  legislature is                                                               
largely composed  of different people so  a concurrent resolution                                                               
is unlikely  to be given any  weight as guidance on  the original                                                               
intent of the  legislation.  While [the Department  of Law] hopes                                                               
that if  challenged it  can make  an argument  to defend  some of                                                               
those regulations  that it believes  are vulnerable, it  does not                                                               
believe this  resolution will have  any impact or lend  any force                                                               
to its arguments in future challenges.                                                                                          
                                                                                                                                
1:55:09 PM                                                                                                                    
                                                                                                                                
MR. NELSON  stated there are not  a lot of lawsuits  yet on these                                                               
issues  because most  fishermen  are pretty  happy  with the  way                                                               
current regulations are set up  and are not inclined to challenge                                                               
them.   [The Department of  Law] has  been pretty careful  in its                                                               
advice  to  the  Board  of  Fisheries  that  future  regulations,                                                               
especially controversial  ones, could  be pretty vulnerable.   He                                                               
said  he thinks  the  board believes  that  and understands  [the                                                               
department's] advice  and is disinclined  to take too  many risks                                                               
by putting out  a regulation that is controversial  and likely to                                                               
be  challenged.    Regardless  of whether  HCR  22  passes,  [the                                                               
department's] advice to  the board is going to stay  the same and                                                               
likely be followed.                                                                                                             
                                                                                                                                
REPRESENTATIVE ROSES  surmised that Mr.  Nelson feels HCR  22 has                                                               
very little  legal impact  and would  therefore have  very little                                                               
impact on the management ability of the Board of Fisheries.                                                                     
                                                                                                                                
MR. NELSON responded yes, that is true.                                                                                         
                                                                                                                                
1:56:58 PM                                                                                                                    
                                                                                                                                
BOB THORSTENSON, Lobbyist for Sitka  Herring Group, noted he is a                                                               
past officer  of United  Fishermen of Alaska  (UFA), but  on this                                                               
particular  matter he  is representing  the Sitka  Herring Group.                                                               
He said  the Sitka  Herring Group is  comprised of  herring purse                                                               
seiners who  have been looking to  modify the fishery -  not into                                                               
any kind of  a co-operative - but using existing  state law to do                                                               
an equal split  fishery identical to what is  occurring right now                                                               
in Prince  William Sound  black cod,  Clarence Strait  black cod,                                                               
and Chatham Strait black  cod.  A bill is needed  and this is not                                                               
a bill.  A bill was introduced well  over a year ago and has been                                                               
held in the  House Special Committee on Fisheries  by the sponsor                                                               
of this  resolution.   He said the  Sitka Herring  Group believes                                                               
the sponsor  of this  resolution succumbed  to local  pressure in                                                               
his  area  to   come  up  with  something   that  looks  somewhat                                                               
meaningful.                                                                                                                     
                                                                                                                                
MR. THORSTENSON  related that  the Sitka  Herring Group  has been                                                               
working on this with the  Department of Law and Legislative Legal                                                               
and  Research  Services.    One   of  the  problems  between  the                                                               
Department of Law and Legislative  Legal and Research Services is                                                               
that the Board  of Fisheries only relies upon  legal counsel from                                                               
the Department  of Law.  The  Sitka Herring Group has  heard from                                                               
the  Department of  Law  that  the department  is  going to  give                                                               
caution to any  issues that will be controversial  in the future,                                                               
not only for past issues  like Clarence Strait and Chatham Strait                                                               
black cod  equal split, but  potential future  fisheries changes.                                                               
Technically  in law  today  those changes  are  allowed, but  the                                                               
Department  of Law  has been  saying  for nearly  two years  that                                                               
statutory  action is  needed, not  a  resolution.   While he  has                                                               
heard  of other  people supporting  this resolution,  he has  not                                                               
heard of any  lawyers that believe this resolution  takes care of                                                               
the problem with the Board of Fisheries.                                                                                        
                                                                                                                                
2:00:20 PM                                                                                                                    
                                                                                                                                
MR.  THORSTENSON  argued  that  there will  be  a  sport  fishing                                                               
impact.   There are those in  Cook Inlet who believe  there could                                                               
be a  broader impact, so  they are concerned about  Native impact                                                               
to  commercial fishing  from some  kind  of action  taken.   [The                                                               
Sitka  Herring Group]  does  not  believe that  to  be the  case.                                                               
However,  it does  believe that  the sport  fish community  could                                                               
harvest more  herring, salmon, and  other species if  a different                                                               
system could be figured out so  that fishermen could work, not in                                                               
a  co-operative system,  but cooperatively.   By  only passing  a                                                               
resolution  and  not a  bill  like  HB  188, the  legislature  is                                                               
basically  telling  the  Department  of  Law  and  the  Board  of                                                               
Fisheries that it is not going to  give them any help and to keep                                                               
things the way they are with  no changes.  So, if the legislature                                                               
wants things to  stay the way they are, then  passing a worthless                                                               
resolution is probably the way to go.                                                                                           
                                                                                                                                
CO-CHAIR JOHNSON deduced  that what Mr. Thorstenson  is saying is                                                               
that  HCR 22  is not  going to  do any  good and  the legislature                                                               
might as well do nothing.                                                                                                       
                                                                                                                                
MR. THORSTENSON replied pretty close.   The resolution gets about                                                               
one percent of the way there.  A bill is needed.                                                                                
                                                                                                                                
REPRESENTATIVE ROSES  surmised that in Mr.  Thorstenson's opinion                                                               
HCR 22 does very little and  therefore has neither a positive nor                                                               
a negative impact on the board's ability to manage the fishery.                                                                 
                                                                                                                                
MR. THORSTENSON answered he does  not believe the resolution will                                                               
have  any real,  logical,  or legal  impact, but  it  may have  a                                                               
psychological impact on the board.                                                                                              
                                                                                                                                
REPRESENTATIVE ROSES inquired whether  Mr. Thorstenson thinks the                                                               
psychological impact  would be positive  or negative in  terms of                                                               
the board's ability to manage.                                                                                                  
                                                                                                                                
MR. THORSTENSON responded slightly positive.                                                                                    
                                                                                                                                
2:04:11 PM                                                                                                                    
                                                                                                                                
JOE  CHILDERS,  President,  United  Fishermen  of  Alaska  (UFA),                                                               
stated  he has  been  actively involved  in commercial  fisheries                                                               
around  the state  of Alaska  since  1966.   United Fishermen  of                                                               
Alaska  does  not   have  a  position  on   this  resolution,  he                                                               
testified, so  it must  be understood that  his comments  are not                                                               
the official UFA position.  However,  UFA would foresee HCR 22 as                                                               
being a  waste of time.   The  Board of Fisheries  might consider                                                               
the  resolution to  have some  value, but  the operative  word is                                                               
might.                                                                                                                          
                                                                                                                                
MR. CHILDERS pointed  out that the Board of  Fisheries is charged                                                               
with  managing  fisheries in  a  dynamic  world where  conditions                                                               
change constantly.   It was because of that  recognition that the                                                               
Limited   Entry  Act   was  adopted,   which  was   an  extremely                                                               
controversial thing to do.  The  Board of Fisheries needs to have                                                               
the ability  to manage  as it  sees fit.   One  of the  things it                                                               
needs to be able  to do is to look at the fact  that the tools at                                                               
hand do  not necessarily  provide the board  with the  ability to                                                               
have  an  economically  efficient  or  environmentally  sensitive                                                               
management  to fisheries.   The  ability to  harvest fish  in the                                                               
sport sector,  charter sector, and  the commercial  sectors grows                                                               
constantly with  the advent of new  gear types.  So,  the ability                                                               
to close areas, close time, close  gear, do vessel length, and do                                                               
all these various  things does not necessarily  provide the board                                                               
with  the ability  to achieve  what the  board needs  which is  a                                                               
total control  on the output  from a fishery.   "We need  to know                                                               
how much fish  are going to come  out of the water  and when they                                                               
are going to come out and how they  are going to come out, and we                                                               
need  to  control  that  if   we  are  going  to  have  long-term                                                               
sustainability," he said.  The  resolution is a half-measure that                                                               
does not  say yes  or no and  will not have  anything to  do with                                                               
actions that are taken by the Board of Fisheries.                                                                               
                                                                                                                                
2:06:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO asked whether Mr.  Childers is opposed to the free                                                               
market.                                                                                                                         
                                                                                                                                
MR.  CHILDERS  replied  he  has  been  actively  involved  as  an                                                               
entrepreneurial fisherman since  he was 12 years old.   He bought                                                               
his very  first fishing operation,  a setnet in Cook  Inlet, when                                                               
he was  16.  He  owned a fishing vessel,  a license, and  a truck                                                               
before he  was old enough  to drive.  So,  no, he has  never been                                                               
opposed to the free market system.                                                                                              
                                                                                                                                
2:07:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  said  that  seems  to  be  in  contrast  to  Mr.                                                               
Childers'  testimony.   Is  limited  entry  the free  market,  he                                                               
asked.                                                                                                                          
                                                                                                                                
MR. CHILDERS answered  limited entry is similar  to having liquor                                                               
licenses,  cab  licenses, or  any  sort  of franchises  that  are                                                               
allocated by  the state that  are considered  to be done  for the                                                               
public good.   The reason limited entry went into  effect is that                                                               
from the early  1960s to the early 1970s  Alaska's fisheries were                                                               
in  the toilet;  1969  was  the lowest  salmon  harvest on  state                                                               
record at  21 million fish.   The  halibut fisheries were  in the                                                               
toilet  as   well.    The  off-shore   fisheries  were  basically                                                               
nonexistent; they  were being wiped  out sequentially  by foreign                                                               
fleets  and the  United States  did  not have  a 200-mile  limit.                                                               
Coupled with that  was the Bolt decision in the  federal court in                                                             
the state  of Washington  which determined  that under  a federal                                                               
treaty with  a sovereign nation,  right to the fish  was actually                                                               
allocated  to  the Native  fishermen  in  Washington.   Thus,  he                                                               
related,  the  Native  fishermen   had  a  property  right  which                                                               
basically was the supreme law in  a system that operates with the                                                               
market system.   Alaska was  the only place for  the dispossessed                                                               
fishermen to come to.  So,  there was a very strong understanding                                                               
that without limited entry the  fisheries in Alaska were going to                                                               
become uncontrollable.   The effort that went  into limited entry                                                               
included optimum  number studies, and  a system was  created that                                                               
met the  needs of the  time for  the coastal communities  and the                                                               
people who were  dependent.  Subsequent to that  many things have                                                               
changed in fisheries, including in the Chignik area.                                                                            
                                                                                                                                
2:10:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GATTO  referenced the  "combat  fishing"  on the  Kenai                                                               
River and inquired whether Mr.  Childers believes there should be                                                               
limited entry for sport fishermen.                                                                                              
                                                                                                                                
MR.  CHILDERS responded  he thinks  it will  come to  a point  in                                                               
Alaska, like it  has in other places in the  world and especially                                                               
in the  salmon fisheries, where  there is enough pressure  put on                                                               
the  resource  that  there  will   be  no  way  to  provide  full                                                               
unrestricted  access to  people.   He  said he  does not  believe                                                               
there is going to  be a way to do that if at  the same time there                                                               
is no  protection for  the resource  that the  fish require.   In                                                               
other words, if  roads, access, and growth are  allowed along the                                                               
rivers,  there  is not  enough  possibility  to actually  provide                                                               
everyone with all  the sport fishing opportunity  that is wanted.                                                               
He said  limited entry  for sport fishermen  is a  complex thing,                                                               
but he  thinks where it  will have to be  done is in  the charter                                                               
sectors.   He continued:   "Right now,  with this bill  at issue,                                                               
you  would not  have the  ability.   Even if  you were  to create                                                               
limited entry  in the  charter sector  you would  not be  able to                                                               
allocate  ....   So this  is  an example  of where  this bill  is                                                               
actually hindering  long-term management  of the resource,  in my                                                               
opinion."                                                                                                                       
                                                                                                                                
2:12:22 PM                                                                                                                    
                                                                                                                                
CLEM TILLION stated he is  representing the Aleut Corporation and                                                               
the  Natives in  the Aleutian  Islands.   He said  he was  in the                                                               
legislature in  1973 when  the Limited Entry  Act was  passed and                                                               
there were legislators  who were pretty sure that  Judge Bolt was                                                               
going to  win.  Limited  entry is no  different than farm  land -                                                               
there  is a  limited amount  of farm  land and  anybody can  be a                                                               
farmer, but  he or  she has  to buy a  farm.   He said  he thinks                                                               
there will come a day on the  Kenai River when a person will have                                                               
to apply  for a permit  and there will  only be so  many permits.                                                               
The  banks of  the river  cannot be  torn down  endlessly and  to                                                               
prevent this  boardwalks might have  to be built along  the edge.                                                               
This is not at  all an objection to how many  [fish] are given to                                                               
the  sport fishery,  he  said, he  just wants  to  make sure  the                                                               
resource itself  is in good shape.   He agrees with  Mr. Childers                                                               
that HCR 22 does not accomplish  everything he wants, but it is a                                                               
step that maybe the Board of Fisheries will pay attention to.                                                                   
                                                                                                                                
MR. TILLION  said he represents  a people  who were taken  out of                                                               
their  homeland to  internment camps  in 1942  and never  allowed                                                               
back to  the islands from  which they  were taken.   Then someone                                                               
had an  attack of conscience and  allowed them back into  some of                                                               
the areas.   The people were offered the right  to purchase Adak,                                                               
it was  not given as  a gift from  the federal government.   They                                                               
got the  facilities, but  they had  to buy  with other  lands the                                                               
island  of Adak.    The people  moved back  and  were doing  well                                                               
packing  two million  pounds  of  crab a  year  for a  Norwegian-                                                               
American  who built  a plant  out there.   Then  along came  crab                                                               
rationalization and the two million  pounds was reduced to 67,000                                                               
pounds.  The  rest was given to Japanese owners  in Dutch Harbor.                                                               
The plant  owner went  to cod  fish which  was unlimited  and the                                                               
season went mostly all year long.                                                                                               
                                                                                                                                
2:15:28 PM                                                                                                                    
                                                                                                                                
MR.  TILLION explained  that the  Aleut people  involved in  this                                                               
fishery are  also involved in  the salmon fishery and  the salmon                                                               
fishery  requires that  they fish  vessels  of under  58 feet  in                                                               
length.   Their investments  are made in  these small  boats that                                                               
are perfectly  capable of catching  the cod, the halibut,  or the                                                               
other fishery in the area, but they  cannot go out in any kind of                                                               
weather.   The  trouble with  a quota  is the  competition for  a                                                               
finite resource  - the boats get  bigger and bigger and  soon the                                                               
boats are so big they cannot be  taken care of in Alaska and this                                                               
results  in exporting  the whole  fishery to  Seattle.   Alaska's                                                               
king crab fishery was a case in  point - 96 percent of all of the                                                               
crab fishermen of Alaska lived  in Alaska when the state operated                                                               
on size and sex management and  the season went all year.  Within                                                               
four years  of going to  a quota system,  only 40 percent  of the                                                               
fishermen still lived in Alaska  because to compete the fishermen                                                               
bought bigger and  bigger vessels that could fish in  any kind of                                                               
weather, but  the boats were too  big for the yards  in Alaska to                                                               
take care of.   The season got shorter.  Mr.  Tillion said he now                                                               
is looking  at going before  the Board  of Fisheries to  ask that                                                               
the state  water fishery be  made 60 foot or  less.  There  is no                                                               
problem  taking  all the  fish.    The  problem  is that  if  the                                                               
community  is going  to live  the fish  must come  in for  a long                                                               
enough period of time that the  small work force in the community                                                               
can process  these fish.   This  will provide  in-town employment                                                               
and the store can operate and the school has enough kids.                                                                       
                                                                                                                                
2:17:26 PM                                                                                                                    
                                                                                                                                
MR.  TILLION  noted  that  when  the  price  of  cod  went  up  a                                                               
particular company decided it would like  to take over Adak.  The                                                               
North Pacific  Fishery Management  Council made  some amendments,                                                               
called Amendment 80, that allowed  the vessels a fixed percentage                                                               
of the  catch.  But, nobody  closed the Aleutian Islands  west of                                                               
"170" and so the company had all  this idle time and used it as a                                                               
catcher-processor  or  as  just a  processor  buying  from  other                                                               
vessels and  moved in.   This year a fleet  moved in on  Adak and                                                               
took  the quota  very  quickly.   The people  of  Adak saw  their                                                               
state-of-the-art processing  plant, where every part  of the fish                                                               
is used, reduced from last year's  27 million pounds to 8 million                                                               
pounds.   He related that the  city of Adak is  destitute because                                                               
the raw  fish tax is  not coming in  even though Trident  said it                                                               
would give Adak a  share of what was packed in the  area.  So, he                                                               
said, there  is a need to  go to the  Board of Fisheries.   He is                                                               
interested  in  a  solution,  and   would  prefer  a  bill  to  a                                                               
resolution, but  he will accept  a resolution  if that is  all he                                                               
can get  in hopes  it will  influence the board  to say  that for                                                               
state waters  west of  "170", 50  percent of  the catch  shall be                                                               
taken  by vessels  under  60  feet so  Alaskan  fishermen have  a                                                               
chance.                                                                                                                         
                                                                                                                                
2:19:47 PM                                                                                                                    
                                                                                                                                
MR. TILLION stated  that two years ago a fleet  of 40 small boats                                                               
showed up and  stayed there until the state  water season opened.                                                               
But the big boats  moved in and the quota was  taken in one week.                                                               
Because the  weather was calm,  each one  of the small  boats got                                                               
one load which  was enough to pay  for the trip back.   This year                                                               
those  small boats  did not  even bother  coming out  because the                                                               
Board of  Fisheries would not allocate  half of the catch  to the                                                               
smaller boats due to the attorney  general's opinion.  He said he                                                               
wants to  go before  the board  and say, "Let's  have a  share of                                                               
it."   This  has  already been  done in  Kodiak  and Cook  Inlet.                                                               
There are  small boats  fishing Cook  Inlet this  winter.   It is                                                               
personal, he  said, because he has  a grandson with one  of those                                                               
boats.   Those boats are  getting over a  dollar a pound  for cod                                                               
fish  because  of access  to  the  Anchorage airport  and  Korean                                                               
Airlines and the fish arrive  in Frankfort, Germany, in less than                                                               
48 hours.   "Isn't  this what  we want our  fisheries to  be," he                                                               
asked.   He said  he is  asking the committee  to give  the tools                                                               
that let the Board of Fisheries do  it.  He would be surprised if                                                               
the  board could  not be  convinced  that this  is beneficial  to                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:21:43 PM                                                                                                                    
                                                                                                                                
MR. TILLION acknowledged  there will be complaints.   Some of the                                                               
groups in the Community Development  Quota (CDQ) Program will not                                                               
be happy because they have  made deals with outside interests for                                                               
floating processors and  they do not want that to  be closed out.                                                               
But, somewhere,  somebody is going  to have to make  the decision                                                               
on  whether to  have the  fisheries belong  to Seattle  and other                                                               
places  or to  keep them  in Alaska.   To  keep the  fisheries in                                                               
Alaska, then  it must be  ensured that the resource  is harvested                                                               
by vessels  that can be  overhauled, repaired, and  maintained in                                                               
Alaska.   He urged the committee  to give the Board  of Fisheries                                                               
the tools "so that then we can  go to the governor and plead with                                                               
her to kind  of put the pressure on the  department and the board                                                               
to support us."  The vessels are  here and owned by Alaskans.  It                                                               
can be done and the money will stay in Alaska.                                                                                  
                                                                                                                                
MR. TILLION added  that the limited entry fight was  bitter.  His                                                               
niece had  her car  tires slashed  and his kids  were beat  up at                                                               
school because he was in Juneau  supporting limited entry.  It is                                                               
not always  easy, but now nobody  wants to go back  to wide open,                                                               
he said.   Did some  people get  hurt?  Yes.   However, it  is no                                                               
different than homesteading  - the guy that got there  in time to                                                               
homestead  got the  land and  everybody thereafter  has to  buy a                                                               
piece of it  from that person.   He does not know  any other way;                                                               
life is not  always fair.  According to  Alaska Geographic, there                                                             
are only  three places in  the world that manage  their fisheries                                                               
well - Iceland, New Zealand, and  Alaska.  Alaska has eight times                                                               
more  salmon  today than  it  did  in 1959  when  he  was in  the                                                               
fishermen's association fighting for  control, he related, and he                                                               
was in  the gallery of  the U.S.  Congress when the  Magnuson Act                                                               
passed.                                                                                                                         
                                                                                                                                
2:25:05 PM                                                                                                                    
                                                                                                                                
CO-CHAIR GATTO  asked whether  Mr. Tillion sees  a day  when five                                                               
people with sport  fishing licenses will send one  person to fish                                                               
for all of five of them.                                                                                                        
                                                                                                                                
MR. TILLION responded  he already does that, being  over 60 years                                                               
of age.   When friends  go out for king  salmon he has  them pick                                                               
one up  for him because  they are allowed  to do so  under Alaska                                                               
law.   He said Mr.  Childers is right  about the sport  fishery -                                                               
there will come a  day when there will have to be  a limit on how                                                               
many  people can  fish  on  each stream  because  when there  are                                                               
10,000 fish  in the stream  and 30,000  people that want  to fish                                                               
them,  not  everyone can  be  allowed  to  take  one fish.    The                                                               
spawners  must be  taken  care of,  no matter  how  much pain  is                                                               
inflicted.  He said he is not  here to fight over whether a sport                                                               
or commercial  fisherman gets the  fish - he  gets short-tempered                                                               
about overharvest.  The whole  prestige of Alaska is dependent on                                                               
the fact that  the state manages its fisheries well  and who gets                                                               
the fish has to be second to whether there is enough fish there.                                                                
                                                                                                                                
2:26:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR JOHNSON stated he is concerned  about HCR 22 and may set                                                               
it  aside until  Friday [3/28/08]  to get  more information.   In                                                               
response to Representative Fairclough, he  said he is not closing                                                               
public testimony  as there may be  additional testimony resulting                                                               
from setting the resolution aside.                                                                                              
                                                                                                                                
REPRESENTATIVE  ROSES  commented  he does  not  feel  comfortable                                                               
spending  time on  legislation that  does not  seem to  serve any                                                               
purpose and  that is only a  band aide for a  serious hemorrhage.                                                               
At some point  the cause of the  problem must be faced.   He said                                                               
he does not  know whether or not he likes  the resolution because                                                               
of not knowing  whether it will have any positive  impact.  He is                                                               
unsure whether holding the bill  will provide further information                                                               
and he may therefore be just as conflicted on Friday.                                                                           
                                                                                                                                
CO-CHAIR JOHNSON held HCR 22.                                                                                                   
                                                                                                                              

Document Name Date/Time Subjects