Legislature(2013 - 2014)BUTROVICH 205

03/04/2013 03:30 PM Senate RESOURCES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SJR 10 ARCTIC: POLICY, USCG, ARCTIC COUNCIL TELECONFERENCED
Moved CSSJR 10(RES) Out of Committee
*+ SB 54 EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY TELECONFERENCED
Heard & Held
+ HB 36 EXEMPT DISCHARGES FROM USE OF MUNITIONS TELECONFERENCED
Heard & Held
        SB  54-EXTEND HAIR CRAB & SCALLOP LIMITED ENTRY                                                                     
                                                                                                                                
3:43:09 PM                                                                                                                    
CHAIR GIESSEL announced SB 54 to be up for consideration.                                                                       
                                                                                                                                
3:43:50 PM                                                                                                                    
CORA CAMPBELL,  Commissioner, Alaska Department of  Fish and Game                                                               
(ADF&G),  Juneau, AK,  supported SB  54. She  explained that  the                                                               
state manages most  aspects of the crab and  scallop fisheries in                                                               
both  state  and  federal  waters under  an  agreement  with  the                                                               
federal  government and  this bill  would extend  the Weathervane                                                               
Scallop and Bering Sea Hair  Crab based limited entry program for                                                               
another   10   years.   Focusing  on   the   sustainability   and                                                               
conservation  aspects  of the  program,  she  explained that  the                                                               
vessel-based  program  was born  out  of  a  need to  ensure  the                                                               
sustainability  of those  two  fishery  resources. Originally,  a                                                               
conventional  limited entry  program was  examined where  permits                                                               
are awarded to individuals, but  it was inadequate for protecting                                                               
the  economic health  and stability  of these  two fisheries  and                                                               
promoting  sustained  yield of  the  resource.  To address  these                                                               
concerns,  a  vessel-based  limited  entry  program  was  brought                                                               
forward to  the legislature and  enabling legislation  was passed                                                               
in 2002 and that was extended in 2008.                                                                                          
                                                                                                                                
She  said  these are  the  only  two vessel-based  limited  entry                                                               
programs in  Alaska due to  the unique nature of  these fisheries                                                               
and during  the time that the  program has been in  place, it has                                                               
worked well.  The scallop limited  entry program has  provided an                                                               
economically viable  fishery and a sustainable  fishery, which is                                                               
what is most  important to the department. The  Hair Crab limited                                                               
entry program  is currently  closed, but it  remains in  place so                                                               
that if and  when the fishery reopens she would  have the ability                                                               
to  limit  participation  to   ensure  that  fishery's  continued                                                               
sustainability.                                                                                                                 
                                                                                                                                
3:46:33 PM                                                                                                                    
SENATOR MICCICHE  said he  is a limited  entry permit  holder and                                                               
the transmittal letter warns about  dire consequences that hadn't                                                               
take  place.   He  also  understood   that  the  intent   of  the                                                               
constitution to not encourage corporate  ownership of permits and                                                               
asked  what would  protect other  fisheries from  being added  to                                                               
this type of program in the future.                                                                                             
                                                                                                                                
COMMISSIONER   CAMPBELL   said  this   legislation   specifically                                                               
authorizes  a vessel-based  system  for these  two fisheries  for                                                               
particular  reasons. So,  it's not  currently  something that  is                                                               
authorized for other fisheries and  for policy reasons it is very                                                               
unlikely that  it will be  extended to other  fisheries. However,                                                               
with scallop fisheries you are talking  about a fishery that is a                                                               
dredging operation  that is hard on  bottom gear. So, a  big part                                                               
of the  reason they looked at  wanting to come up  with a limited                                                               
entry system  that would effectively limit  participation in this                                                               
fishery  is  because  they  have  an  interest  in  seeing  those                                                               
resources  harvested  efficiently  by an  appropriate  number  of                                                               
vessels and  not necessarily allowing for  unlimited expansion of                                                               
the number of participating vessels.                                                                                            
                                                                                                                                
3:48:34 PM                                                                                                                    
That is in  contrast with some other limited  entry programs like                                                               
salmon where  the desire of  the state  is to reduce  barriers to                                                               
entry and to make opportunity  available to Alaskans that want to                                                               
participate in those fisheries.                                                                                                 
                                                                                                                                
SENATOR  MICCICHE asked  if he  wanted to  enter the  Weathervane                                                               
Scallop fishery  would he have an  opportunity to buy one  of the                                                               
vessels  or has  it  become difficult  because  of the  corporate                                                               
nature of the permit system.                                                                                                    
                                                                                                                                
COMMISISONER  CAMPBELL  said  the  permits and  the  vessels  are                                                               
available  for  transfer  and some  have  transferred  since  the                                                               
beginning of the program. The scallop  beds are on both state and                                                               
federal sides  of the  boundary and the  scallop fishery  is also                                                               
limited on the  federal side. The state  program is complimentary                                                               
to a  federal program  that also limits  entry in  federal waters                                                               
and  most  of  the  fishing activity  takes  place  across  those                                                               
boundaries. So, there  would be a need to buy  into both programs                                                               
if you wanted to have full access to the beds.                                                                                  
                                                                                                                                
3:50:01 PM                                                                                                                    
BEN  BROWN, Commissioner,  Commercial Fisheries  Entry Commission                                                               
(CFEC),  Juneau, AK,   said  the first  bill for  the Weathervane                                                               
Scallop  fishery passed  in 1997  unanimously; there  wasn't very                                                               
much  controversy about  vessel-based  limitation  at that  time.                                                               
That  bill,  House  Bill  141,  didn't  create  the  vessel-based                                                               
limited system, but  it envisioned its creation at  the same time                                                               
the legislature put a moratorium on  the entry of any new vessels                                                               
into  the fishery.  The reason  for that  was dire  concern about                                                               
over-fishing.  The dredges  are not  easy  on the  sea floor  and                                                               
there  are by-catch  problems with  some  important crab  species                                                               
that  migrate  through  the  scallop  beds.  The  moratorium  was                                                               
established  unanimously  by  the  legislature to  give  time  to                                                               
figure out  a way to  manage it.  Several years later,  after the                                                               
National  Marine  Fisheries  Service  (NMFS)  imposed  a  federal                                                               
scallop  license limitation  program, this  legislature chose  to                                                               
pass  legislation that  gave the  CFEC the  tool of  vessel-based                                                               
limited entry.                                                                                                                  
                                                                                                                                
Returning to  Senator Micciche's question,  Commissioner Campbell                                                               
said  there  can't  really  be   a  slippery  slope  because  the                                                               
legislature would  have to  change the  statute to  allow vessel-                                                               
based limited entry  for any other fishery. And even  if the CFEC                                                               
commissioners wanted to  do it, they would be powerless  to do so                                                               
without legislative action. But  they have absolutely no interest                                                               
in vessel-based limited entry for  any other fisheries; it's just                                                               
not required given the biological  or economic characteristics of                                                               
any other fishery.                                                                                                              
                                                                                                                                
3:52:33 PM                                                                                                                    
SENATOR  MICCICHE said  he had  constituents from  the fish  trap                                                               
days who  are concerned for  their own fisheries and  thanked him                                                               
for his answers.                                                                                                                
                                                                                                                                
MR. BROWN  said bad fishing practices  were going on back  in the                                                               
90s,  and  the moratorium  was  driven  by  the collapse  of  the                                                               
scallop  fishery in  New England  when some  of those  boats came                                                               
around and decided  to fish in Alaskan waters. They  were able to                                                               
do so  until the moratoria in  the state and federal  waters were                                                               
put into place.  That froze things in time, but  it didn't answer                                                               
the long term question of how to issue these permits.                                                                           
                                                                                                                                
The impediments to the fishery  are financial as much as anything                                                               
else;  these  are pretty  large  boats  that require  significant                                                               
numbers of  crew and operate  24/7 a lot  of the time.  There are                                                               
some  pretty  stringent  fisheries  management  plan  provisions:                                                               
onboard  observer  coverage,  an   inability  to  use  mechanical                                                               
shuckers and  other measures  to make  sure the  fishing capacity                                                               
won't overwhelm  the resource. When  the bill passed in  2002, it                                                               
didn't  have a  sunset like  all the  rest of  the limited  entry                                                               
programs; it would have existed in perpetuity but for a five-                                                                   
year sunset  that was put into  place on the Senate  floor at the                                                               
end of the process. When it came  up for review five years ago, a                                                               
bill to extend it didn't pass,  so that provision was attached to                                                               
another bill. So, they are now looking  at a sunset at the end of                                                               
2013.                                                                                                                           
                                                                                                                                
3:55:04 PM                                                                                                                    
MR. BROWN said the CFEC has  a number of concerns, because of the                                                               
likelihood  that  reversion  to  open access  would  require  the                                                               
managers to  shut the fishery down  on the state waters  side and                                                               
the remaining fishing would probably  be shut down permanently in                                                               
a short amount  of time. They don't know what  the feds would do,                                                               
but  it would  upend  the existing  delegated management  regime,                                                               
because  it  would  be  somewhat  anomalous  to  have  the  state                                                               
managing  the fishery  in federal  waters if  the fishery  wasn't                                                               
being managed in state waters.                                                                                                  
                                                                                                                                
He summarized that  they believe the program is  working well and                                                               
that  those  who hold  the  permits  obtained  them in  a  manner                                                               
entirely   consistent  with   the   vessel-based  limited   entry                                                               
provisions that  were created in  2002 and some of  those permits                                                               
have transferred hands.  They are fished and  held in conjunction                                                               
with the federal permits.                                                                                                       
                                                                                                                                
MR. BROWN said they can't speak  to much of the legalities on the                                                               
federal side of  the line, but he could say  that everything that                                                               
is   happening  on   the   state  waters   side   is  legal   and                                                               
constitutional.  If anyone  really thought  this program  was too                                                               
exclusive  and  violated  the  Alaska   Constitution  he,  as  an                                                               
attorney,  thought someone  would have  already litigated  it. Or                                                               
maybe it was just too expensive,  but even if one were brought he                                                               
was confident that  Alaska Supreme Court would say no.  It is not                                                               
too exclusive and  it is serving the  biological and conservation                                                               
purposes of  the Limited Entry  Act; and it's  allowing fishermen                                                               
who are depending on the economic  return on the resource to make                                                               
a living.  He said they would  hear from members both  in and out                                                               
of  the cooperative.  Of the  initial number  of permits  issued,                                                               
five are  now active; three  are being fished in  the cooperative                                                               
and two are independent.                                                                                                        
                                                                                                                                
3:57:42 PM                                                                                                                    
CHAIR GIESSEL opened public testimony.                                                                                          
                                                                                                                                
JIM STONE, Alaska Scallop Association,  supported SB 54, and said                                                               
he is a partner/manager of  three scallop vessels. He  introduced                                                               
Glen Michelson, partner  who had been fishing  for 30-plus years,                                                               
John  LaMar  from  Kodiak  who  had fished  for  35  years,  Erik                                                               
Neighammer who  also had  fished for 35  years, and  Shirley, the                                                               
wife of  Tom Mineo, captain of  the Provider who was  sick, Bobby                                                               
Mineo, and Mona Stone, his wife who does the marketing.                                                                         
                                                                                                                                
MR. STONE said he is a  35-year fisherman and fished Alaska crab,                                                               
cod, scallops  and salmon. He  is currently the manager  of three                                                               
of the  scallop vessels and the  guy in charge of  scallop sales.                                                               
All three catcher freezer boats  are home-ported in Kodiak. There                                                               
are six  partners, each  one essentially owning  half of  a boat.                                                               
These  boats average  about  100  feet in  length  and are  quite                                                               
expensive to own and operate. They  fish with 12 crewmen and must                                                               
carry required observers  at a cost of almost  $400/day, which is                                                               
going up  soon. They burn 600  gallons of fuel/day that  is about                                                               
19 percent  in June;  insurance has  gone up  by 42  percent this                                                               
year. None  of them can  afford to own  a boat by  themselves and                                                               
financially it makes sense for them to all work together.                                                                       
                                                                                                                                
They  have  done  their  due   diligence  to  ensure  that  their                                                               
ownership violates neither state  nor federal rules. Conservation                                                               
measures have forced  this fishery from about  1.2 million pounds                                                               
in the 90s  to only about 400,000 pounds today.  They applaud the                                                               
fishery manager's  stance on  the side of  precaution and  in the                                                               
name of sustainability.                                                                                                         
                                                                                                                                
4:01:12 PM                                                                                                                    
He said they are given very  small crab by-catch amounts and must                                                               
work together to avoid roving schools  of crab. They are happy to                                                               
report that the conservation record  of ADF&G's management of the                                                               
scallop fishery  has not  gone unnoticed.  They have  lobbied for                                                               
many years with  the Monterey Bay Aquarium  Seafood Watch Program                                                               
to rate Alaska Weathervane Scallops.  Such a small fishery is not                                                               
normally  on their  radar  and  has been  un-rated  by any  third                                                               
parties. When selling  to the high end consumers  and chefs these                                                               
ratings are increasingly important.                                                                                             
                                                                                                                                
With the help of ADF&G,  University of Alaska and National Marine                                                               
Fisheries  in  Anchorage, they  have  been  able to  prove  their                                                               
stance as a  sustainable fishery in Seafood Watch's  eyes as best                                                               
alternative  and  have  been  invited  to  attend  their  cooking                                                               
solutions  in  May for  a  three-day  event  where they  will  be                                                               
afforded  a golden  opportunity to  introduce Alaska  Weathervane                                                               
Scallops  to  hundreds of  world-famous  chefs.  As a  result  of                                                               
working together they  have been able to get out  to the culinary                                                               
world and  market themselves and  have participated  with seafood                                                               
and fisheries events all over the  state and up and down the West                                                               
Coast,  and  recently in  Vancouver,  B.C.  They frequently  work                                                               
side-by-side with  the Alaska Seafood Marketing  Institute (ASMI)                                                               
and are pushing the Alaska brand name with them.                                                                                
                                                                                                                                
He said  currently open scallop  beds are 100 percent  in federal                                                               
waters with  a couple  of exceptions: one  is in  Shelikof Strait                                                               
and the  other off  of Yakutat  where small  pieces of  the three                                                               
mile line  go through  the bed.  So, about  10-20 percent  of the                                                               
total scallop catch  comes out of state waters  and the remainder                                                               
out of federal  waters. As a bit of  historical perspective, they                                                               
got in  the position of needing  legislative help in 1995  when a                                                               
vessel from the  East Coast found a loop hole  in the regulations                                                               
and  was  able  to  go  out into  the  federal  waters  and  fish                                                               
scallops. ADF&G couldn't  do anything and neither  could NMFS. So                                                               
they fished on and off for  several months until NMFS found a way                                                               
to stop them  and then they left  the state to never  return.  In                                                               
1996, as  a result  of this,  the entire  fishery was  shut down,                                                               
both  federal and  state, for  an entire  year. It  was obviously                                                               
devastating to the  local fishermen. Department of  Fish and Game                                                               
(ADF&G)  has made  it  clear  that if  the  vessel limited  entry                                                               
program is not  extended and it returns to open  access that they                                                               
will not be able to manage the fishery.                                                                                         
                                                                                                                                
He  referred them  to  the  last two  whereas  provisions in  the                                                               
United Fishermen of  Alaska Resolution that pertains  the most to                                                               
them.                                                                                                                           
                                                                                                                                
CHAIR GIESSEL noted  a letter in support of SB  54 from the North                                                               
Pacific Fisheries Management Council (NPFMC).                                                                                   
                                                                                                                                
SENATOR  BISHOP  asked  how  he   could  stay  in  business  with                                                               
insurance  rates going  up 42  percent  a year.  What is  driving                                                               
that?                                                                                                                           
                                                                                                                                
MR. STONE answered  that he assumed it was claims  in the fishing                                                               
industry;  they are  lumped in  with other  fisheries across  the                                                               
country normally going to London  for insurance. Right now no one                                                               
wants to insure  fishing vessels; it's a  difficult market. Their                                                               
brokers told  them to hold and  maybe they would see  a reduction                                                               
next year.                                                                                                                      
                                                                                                                                
4:07:15 PM                                                                                                                    
SENATOR MICCICHE asked  how many other vessels are  active in the                                                               
fleet beside his three.                                                                                                         
                                                                                                                                
MR. STONE answered that four vessels  have been in the fleet over                                                               
the last  few years:  the Arctic  Hunter, Ocean  Hunter, Provider                                                               
and Kilkenny  Another vessel  is owned by  Max Hulls,  who hasn't                                                               
been fishing for four or five years.                                                                                            
                                                                                                                                
4:08:02 PM                                                                                                                    
SENATOR MICCICHE said  he bought his scallops  regularly and they                                                               
were incredible and he thanked him for his comments.                                                                            
                                                                                                                                
JOHN LAMAR, vessel  owner, said a vessel just sold  to someone on                                                               
the East  Coast. He thought they  had been misled on  the size of                                                               
the stocks. The total allowable  catch is 1.5 million pounds, but                                                               
now they  are catching 400,000  lbs.{ He  wanted them to  know it                                                               
was purchased and may come back into the fishery.                                                                               
                                                                                                                                
4:10:08 PM                                                                                                                    
ALEXUS KWACHKA, representing himself,  Kodiak, AK, opposed SB 54.                                                               
When they  started there were 11  boats; now there are  four only                                                               
two of  which are fishing in  state waters. And it  is a monopoly                                                               
on the federal  side. One of the beauties of  the state fisheries                                                               
is that you  have to be an owner/operator and  he didn't like the                                                               
vessel-based  limited  entry  system  for the  reason.  Being  an                                                               
active  participant  is   key.  He  said  they   are  looking  at                                                               
rationalizing  the Gulf  for the  trawl fisheries  and he  didn't                                                               
want to  see this ever slide  into another fishery. The  10 years                                                               
is inappropriate and  if this goes forward a  five-year sunset is                                                               
more appropriate in terms of fixing it if it's wrong.                                                                           
                                                                                                                                
4:12:18 PM                                                                                                                    
CHAIR GIESSEL  said he alluded  to shortening the sunset  to five                                                               
years and asked what they had gotten wrong so far.                                                                              
                                                                                                                                
MR. KWACHKA said he was  concerned about the participation in the                                                               
state  waters even  though  it's a  small  portion. Basically,  a                                                               
group of people has gotten  together and consolidated and setting                                                               
the precedent of a lack  of potential opportunity by the monopoly                                                               
on the  federal side things  because they  hold the LLPs  on that                                                               
side, too. The  idea is to have more opportunity  and it's a cost                                                               
prohibitive fishery to get into.                                                                                                
                                                                                                                                
4:13:27 PM                                                                                                                    
BRENDEN  HARRINGTON,  representing   F/V  Kilkenny,  Kodiak,  AK,                                                               
supported  SB 54,  He said  the Kilkenny  is the  one independent                                                               
scallop boat. He  is a life-long Alaska resident  and a life-long                                                               
fisherman as  well. He is  32 years old  and been fishing  out of                                                               
Kodiak since  he was  nine in  a lot  of different  fisheries. In                                                               
2009, seeing  the way  things were going  in the  halibut fishery                                                               
they  decided to  diversify and  bought one  of the  open scallop                                                               
permits and boat.  They employ eight people and  theirs is evenly                                                               
split between Kodiak and Homer residents.                                                                                       
                                                                                                                                
He said  the Weathervane fishery  is small, but he  was impressed                                                               
with  the  level  of  oversight  the state  had  managed  to  put                                                               
together for  the fishery  and the  degree of  communication that                                                               
exists between  the fishermen and  the regulators as well  as the                                                               
generally conservation-minded management of  the fishery. He felt                                                               
confident  about  the  management  and the  future  help  of  the                                                               
scallop stock,  which is  a welcome  feeling given  the uncertain                                                               
sectors of fisheries up here, like halibut.                                                                                     
                                                                                                                                
4:16:21 PM                                                                                                                    
Their biggest  worry since making  the investment in  the scallop                                                               
fishery  is  the  possibility  of the  expiration  of  the  state                                                               
limited entry permit  at the end of  the year. He is  part of the                                                               
new generation of fishermen who  want to move away from boom/bust                                                               
mentality of the  past into the future where they  take a smarter                                                               
more  sustainable  approach  to  harvesting  and  husbanding  the                                                               
resources.                                                                                                                      
                                                                                                                                
The current  management of the  weathervane scallop fishery  is a                                                               
good example of this new  mentality of conservation and he feared                                                               
the consequences  of allowing the vessel-based  permitting system                                                               
to expire and open up the  state waters to more boats, especially                                                               
since  the current  licensing system  was in  direct response  to                                                               
irresponsible  actors  splitting  loop   holes  in  the  previous                                                               
regulations in  order to fish  unsupervised and  unregulated with                                                               
complete disregard for sustainability of the resource.                                                                          
                                                                                                                                
MR. HARRINGTON explained  that they are different  from the other                                                               
boats  in that  they take  the  majority of  their scallops  from                                                               
state waters, because  only one other boat is  fishing there. The                                                               
others are fishing in federal waters.                                                                                           
                                                                                                                                
4:18:23 PM                                                                                                                    
HENRY  MITCHELL,  representing   himself,  Fisheries  Consultant,                                                               
Coastal  Villages  Region  Fund  (CVQ group  that  owns  numerous                                                               
vessels), supported  SB 54 saying  a number of their  vessels are                                                               
the successors and interests through  purchase of the vessels and                                                               
permits to participate in the  Bering Sea Hair Crab fisheries. He                                                               
urged  them to  extend CFEC  authority over  the fishery  so that                                                               
they  may be  able  to participate  in  it at  some  time in  the                                                               
future.                                                                                                                         
                                                                                                                                
4:19:34 PM                                                                                                                    
STEVEN  BRANSON, Crewman's  Association, Kodiak,  Alaska, opposed                                                               
SB 54. It  seems like a continuation of a  de facto privatization                                                               
of  what should  be a  public resource.  The state  waters are  a                                                               
state resource.  Although Kilkenny hires  a local crew,  the rest                                                               
are  not  so  state-minded.  The  Alaska  Constitution  said  the                                                               
resources are  for first and  foremost for the people  of Alaska.                                                               
He said he  would love to go scallop fishing  with his small boat                                                               
and dredge. If  it must be extended,  he urged them to  do it for                                                               
less than  10 years. He said  he supported adhering to  the total                                                               
allowable  catch,  trip  limits and  gear  restrictions;  perhaps                                                               
using smaller dredges would do  less damage and allow more people                                                               
to fish.                                                                                                                        
                                                                                                                                
SENATOR DYSON asked if water  conditions where they fish are such                                                               
that small boats are disadvantaged in tough weather.                                                                            
                                                                                                                                
MR. BRANSON  said yes,  but state waters  are within  three miles                                                               
and scallops are very prolific around Kodiak.                                                                                   
                                                                                                                                
4:23:11 PM                                                                                                                    
SENATOR DYSON asked  if many scallop boats fish  other gear types                                                               
as well.                                                                                                                        
                                                                                                                                
MR. BRANSON  answered that  the Arctic  Hunter switched  around a                                                               
little bit.                                                                                                                     
                                                                                                                                
4:24:17 PM                                                                                                                    
SHIRLEY MINEO,  representing Tom  Mineo, Kodiak, Alaska,  said he                                                               
had fished 33  years in the State of Alaska  for scallops. He now                                                               
runs the Provider and is also  part owner. It's a family business                                                               
them;  his  father started  fishing  in  the  late 60s,  and  her                                                               
daughter and son fish on the  boat, as well. She stressed that it                                                               
is a small fishery and this needs  to be kept in place to sustain                                                               
the fishery.                                                                                                                    
                                                                                                                                
SENATOR FAIRCLOUGH  said previous  testimony indicated  that they                                                               
were hiring people from out of state.                                                                                           
                                                                                                                                
MS. MINEO said in her group, one gentleman lives in Oregon.                                                                     
                                                                                                                                
SENATOR FAIRCLOUGH asked if he had ever lived here.                                                                             
                                                                                                                                
MS.  MINEO said  Steven had  been on  their boat  for just  a few                                                               
years  and had  fished in  other fisheries,  but she  didn't know                                                               
that he had been an Alaskan resident.                                                                                           
                                                                                                                                
4:26:15 PM                                                                                                                    
MAX  HULSE,  representing himself  and  the  whole Hulse  Family,                                                               
Eagle River, AK, supported SB 54.  He said they had been involved                                                               
in  Alaska fisheries,  primarily scallops,  since 1979.  They had                                                               
been Alaskan residents since 1966  and were issued both state and                                                               
federal scallop permits due to their historical participation.                                                                  
                                                                                                                                
The family  started harvesting and  packing scallops in  40 pound                                                               
bags in  ice, marketing the  fresh scallops to  wholesale outlets                                                               
in  the  Anchorage area;  more  recently  they flash  froze  them                                                               
onboard in  5 pound  blocks and marketed  them to  both Anchorage                                                               
and Seattle. On the way,  they built a small family-operated DEC-                                                               
approved processing  plant at  his home in  Eagle River  and have                                                               
shipped scallops  for over 20 years  to customers in a  number of                                                               
states. He  also sold scallops at  a road-side site on  the Glenn                                                               
Highway.                                                                                                                        
                                                                                                                                
He said  his son, Scott,  first started fishing in  Kodiak waters                                                               
and lower  Cook Inlet. He  was instrumental in starting  the Cook                                                               
Inlet  fishery for  small boats  using one  six-foot dredge.  His                                                               
1983 proposal to  the Alaska Board of Fisheries  was approved and                                                               
the Cook Inlet fishery was opened.                                                                                              
                                                                                                                                
MR. HULSE  said he hoped  to reenter the fishery  after finishing                                                               
vessel upgrades  at the end  of the summer.  The boat is  79 feet                                                               
and  mainly relies  on harvesting  scallops in  state waters.  He                                                               
said she has a crew of 10 and they are all from Alaska.                                                                         
                                                                                                                                
4:29:31 PM                                                                                                                    
GLEN MICHELSON,  representing himself,  Kodiak, AK,  supported SB
54. He  had fished in  Alaska for 34  years; he had  fished crab,                                                               
salmon, scallop  and Pollock. His  grandfather and  father fished                                                               
Alaska before him  and both of his sons fish  in Bristol Bay; one                                                               
has a  permit. Now he  is a relief skipper  on the boats  and has                                                               
become  a "port  engineer"  making sure  the  boats are  properly                                                               
maintained. Since  the installation  of the  Kodiak Boat  Lift in                                                               
2009 they  can do most  of their  repairs in Alaska,  which helps                                                               
local businesses  and saves them  $25,000 to $30,000 in  fuel and                                                               
two weeks of running time per boat.                                                                                             
                                                                                                                                
Someone mentioned  a monopoly,  but there  are two  boats fishing                                                               
that are not affiliated. Last year  they paid out $1.6 million in                                                               
crew  share and  spent $850,000  in Alaska  in fuel,  $480,000 in                                                               
repairs and  maintenance, $135,000  in groceries and  $200,000 in                                                               
supplies.                                                                                                                       
                                                                                                                                
4:31:54 PM                                                                                                                    
SENATOR  FAIRCLOUGH asked  how  the quota  of  400,000 pounds  is                                                               
spread between vessels.                                                                                                         
                                                                                                                                
MR.  MICHELSON replied  that they  don't have  individual quotas;                                                               
it's an Olympic style fishery.                                                                                                  
                                                                                                                                
MR. BROWN  answered that "quota is  bad word;" there is  a "total                                                               
allowable catch."  Because of the limited  number of participants                                                               
in the  fishery, it resembles  something like a quota,  but there                                                               
is no  guaranteed amount. The biologists  determine a sustainable                                                               
harvest amounts.  Just a  couple of weeks  ago, the  Scallop Plan                                                               
Team, a joint state and federal  group, held an annual meeting in                                                               
Kodiak and  prepared the Stock Assessment  and Fishery Evaluation                                                               
(SAFE) report;  it is  all biologically driven  in terms  of what                                                               
they know were in any given bed  and how much is being brought up                                                               
on the state or federal side.                                                                                                   
                                                                                                                                
4:33:35 PM                                                                                                                    
CHAIR  GIESSEL  closed  public  testimony   and  held  SB  54  in                                                               
committee.                                                                                                                      

Document Name Date/Time Subjects
SJR 10 vs U.pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 Sponsor Statement 2013.03.15.pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 Fiscal Note.pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 USCG Aquisition Directorate Polar Icebreaker.pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 MAJOR ICEBREAKERS Chart Februrary 2013.pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 Ottawa Declaration (1996).pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 Arctic Military Policy Discussed, Miller (Juneau Empire 2013.02.15).pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SJR 10 The New Cold War-Reviving the U.S. Presence in the Arctic, Cohen, Szaszdi, Dolbow (Heritage Foundation Report 2008.10.30).pdf SRES 3/4/2013 3:30:00 PM
SJR 10
SB 54 vs A.PDF SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Sponsor Statement.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Sectional Analysis.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Fiscal Note DFG-CFD 2013.02.28.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Fiscal Note DFG-CFEC 2013.03.04.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Supp Letter NPFMC 2013.02.25.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Supp Resolution UFA 2013.02.21.pdf SRES 3/4/2013 3:30:00 PM
SB 54
SB 54 Written Testimony AlexusKwachka 2013.03.04.pdf SRES 3/4/2013 3:30:00 PM
SB 54
HB 36 ver A.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Sponsor Statement.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Fiscal Note 1 DEC.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Supp Clean Water Act Overview.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Supp Letter DMVA 2013.1.14.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Supp Letter DOD Environmental Coordinator Region 10 2013.01.23.pdf SRES 3/4/2013 3:30:00 PM
HB 36
HB 36 Supp Letter DEC 2013.1.24.pdf SRES 3/4/2013 3:30:00 PM
HB 36
SJR 10 Response to Committee Questions.pdf SRES 3/4/2013 3:30:00 PM
SJR 10