Legislature(2019 - 2020)BUTROVICH 205
03/16/2020 03:30 PM Senate RESOURCES
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| HB203 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| *+ | HB 203 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 203-TRANSPORTATION OF LIVE CRAB
4:29:27 PM
CHAIR MICCICHE reconvened the meeting and announced that the
final order of business would be HOUSE BILL NO. 203, "An Act
relating to transportation of live crab."
4:29:52 PM
REPRESENTATIVE GARY KNOPP, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 203, said legislation from the 1960s
prohibited the surface transportation of live crabs,
specifically the Dungeness crab, Tanner crab, and King crab
species.
REPRESENTATIVE KNOPP explained that there were two reasons for
the prohibition. First, to ensure crab landings occurred in
Alaskan ports for fish harvest ticket recordings for the State
to receive revenue from fees and dues. Second, live crab surface
transportation in the 1960s resulted in high mortality rates.
He said technology changes in surface transportation has
resulted in cooled and aeriated salt water containers that
maintains live crab in excess of 30 days. In light of these
changes, the bill lifts the surface transportation prohibition
for live crab.
REPRESENTATIVE KNOPP noted that there is quite a demand for live
crab in high-end restaurants on the West Coast. Alaska's
prohibition on surface transportation of live crabs does not
allow Alaskan crab fishermen to compete. Foreign market crab has
infiltrated the live crab market. Live crab has a lot of value
and the bill will help to recoup the live crab market and bring
more value to Alaska's end products.
4:33:05 PM
INTIMAYO HARBISON, Staff, Representative Gary Knopp, Alaska
State Legislature, Juneau, Alaska, said HB 203 amends AS
16.10.240 to remove restrictions on the surface transport of
live crab. The current law places restrictions on the transport
of certain crab species except via airfreight after
prepackaging. HB 203 allows surface transportation if the
product first lands in an Alaskan port and is recorded on an
Alaska Department of Fish and Game (ADF&G) fish ticket.
He noted that HB 203 has widespread support across the state
from the crabbing industry, cities, processors, packaging
companies, shipping companies, and fishing associations. The
Alaska Department of Public Safety fiscal note states that the
bill provides an easier mechanism for enforcement to track and
monitor crab. ADF&G says that the legislation does not impact
any of their programs. The Alaska Department of Environmental
Conservation (DEC) says that they do not have any concerns with
the bill.
MR. HARBISON said the current statute passed in the 1960s and
was revised in 1996 due to lost crab product and toxins from
surface transportation versus air transportation. However, there
have been many technological breakthroughs in the safe surface
transportation of live crabs that allows for maintaining
freshness for up to a month without significant product loss or
consumer risk.
MR. HARBISON noted that dead-loss on the shipment of live crab
via air freight can be high due to improper packaging, weather
delays, and lack of transportation from remote crabbing
communities. The bill would allow for high quality Alaskan crab
to reach markets despite air freight limitations.
He said that as live crab markets continue to expand around the
world, Alaska has fallen behind due to its statutory limitations
on transportation. Industries in other countries are selling
live red King crab to U.S. and Canadian markets that the Alaskan
crabbing industry could better serve.
MR. HARBISON summarized that the ability to sell currently
restricted species in a larger and more consistent volume would
help to expand consumption of Alaskan crab and bring economic
opportunities to Alaskan crabbing communities, industries, and
the state.
He noted that the bill passed unanimously in the Alaska House of
Representatives.
4:36:17 PM
SENATOR KAWASAKI referred to subsection (b) that says
transporting live crab by means of surface transportation may
only occur if DEC does not require processors to test for marine
toxins when fishermen have taken the crab. He asked when DEC
requires testing for the presence of marine toxins.
REPRESENTATIVE KNOPP replied there was language in the original
version of the bill that allowed DEC to perform paralytic
shellfish poisoning (PSP) and paralytic shellfish toxins (PST)
testing on Dungeness crab only because the species lives in
shallower water and is more susceptible to the PSP toxins. The
current version of the bill allows DEC to test any species of
crab when they deem necessary.
4:37:27 PM
CHAIR MICCICHE opened public testimony.
4:37:50 PM
JAMIE GOEN, Executive Director, Alaska Bearing Sea Crabbers,
Seattle, Washington, testified in support of HB 203. She said
the Alaska Bearing Sea Crabbers is a nonprofit trade association
representing the harvesters of King, Snow, and Bairdi crab in
the Bering Sea and Aleutian Islands. The association is actively
involved in fisheries management, policy development, scientific
research, and marketing. The association has approximately 70
vessels in its fleet that fishes in the Bering Sea.
MS. GOEN said allowing live transport of all commercial species
of crab via surface transport in addition to air transport would
increase flexibility and market opportunities for Alaska's crab
fisheries and communities. Given the variability in Alaska's
crab stocks, fishermen look for ways to increase the value of
their product, especially in low catch years like this one where
the Bairdi fishery in the Bering Sea closed.
She stated that HB 203 would allow increased value of the
product by bringing live fresh crab to markets in addition to
processed crab. The Alaska Bearing Sea Crabbers supports all
commercial crab species: golden, red, and blue King crab;
Oppilio, Bairdi, and Dungeness.
MS. GOEN said the Alaska Bearing Sea Crabbers' supportive
position of HB 203 is in alignment with the United Fishermen of
Alaska (UFA). She disclosed that the association is a board
member of UFA.
4:38:37 PM
SENATOR COGHILL joined the committee meeting.
4:39:26 PM
FRANK KELTY, Fisheries Consultant, City of Unalaska, Palm
Desert, California, testified in support of HB 203. He said he
has been involved with the Bering Sea crab fishery for many
years. He noted that he was employed as a seafood plant manager
for 30 years, served as an elected official for the City of
Unalaska for 20 years, and served on the Unalaska/Dutch Harbor
Advisory Committee for ADF&G. He pointed out that the City of
Unalaska is the largest crab processing community in Alaska and
probably in the nation.
He stated that HB 203 is a win-win for all involved in
developing a live crab market for low volume and high valued
Bering Sea crab species. Special containers have been set up to
circulate seawater to keep the crabs alive up to 30 days for
some species.
MR. KELTY noted that there have been successful live crab
shipments of Aleutian Island golden King crab using the special
containers for many years. The shipping of other crab species
will increase the harvest value and allow for development of new
high-end markets for live crab.
MR. KELTY pointed out that the Alaska Board of Fisheries made
changes the previous week to the Tanner crab fisheries
management plan that would greatly increase the opportunities to
transport live crab, including to overseas markets.
MR. KELTY summarized that the shipping of live Alaska crab
species by surface transportation is in the best interest of
companies involved in live crab market development and the State
of Alaska for supporting increased economic development in
fisheries.
4:43:40 PM
CHAIR MICCICHE asked for a description of the live crab
transportation pods that have dramatically reduced dead-loss in
crabs.
MR. KELTY explained that special containers are set up with
circulating seawater to keep the product alive. He noted that
the percentage of dead-loss from the special containers used for
transporting golden King crab has been very low. He deferred to
Mr. Poulsen for further explanation.
4:44:34 PM
EDWARD POULSEN, Owner, GKC Holdings LLC, Seattle, Washington,
testified in support of HB 203. He stated that HB 203 will allow
the live transport of all crab species by sea.
He acknowledged that he is involved in crab harvesting and
processing operations in Dutch Harbor. Over the past several
years GKC Holdings has partnered with Universal Seafoods
(UniSea) to transport live golden King crab from Dutch Harbor to
Seattle using new containerized technology. Current Alaska
statutes allow the shipping of live golden King crab on a
container ship but not Bairdi or red King crab.
MR. POULSEN said shipping live crab has been a challenge, but
mortality rates are currently less than one to two percent
during the six-day journey from Dutch Harbor to Seattle. The
technology used for transportation keeps the crab healthy. Large
closed-system tanks of chilled and aerated seawater hold the
crab during the journey. The crab arrives in Seattle healthy
enough to allow for air shipments to locations in the United
States, Europe, and Asia.
He explained that crab can only survive outside of water for so
long before damage occurs, which limits crab delivered from
remote Alaskan communities from competing in the live crab
business using air shipping. Dutch Harbor, which is home to the
Bering Sea crab fleet, has infrastructure limitations and other
challenges that makes air service unreliable.
MR. POULSEN noted that markets around the world have shifted
from cooked frozen crab to live as seen by the Russians who
deliver directly to South Korea and China. The West Coast
Dungeness fishery sells over half in live form. Sales of live
crab will continue to grow throughout the world. The reason is
simple; chefs being able to cook their own crab and prepare it
the way they want results in a better tasting product. And
people are willing to pay a premium for that.
He said Bairdi and red King crab are also uniquely situated to
benefit from the growing live crab markets. The Russians have
already established live red King crab around the world. Bairdi
crab would be a unique new product in live form that fishermen
know to be the most delicious of the crab coming from Alaska.
MR. POULSEN said the coronavirus has had a significant impact on
sales for both live and frozen crab. Live crab sales are
beginning to recover in China as cases of the coronavirus
continue to decline and business gets back to somewhat normal.
However, Alaska cannot take advantage of improving live markets
for Bairdi and red King crab without a statutory modification.
Time is of the essence as having multiple product forms to sell
to customers during challenging times can make all the
difference.
MR. POULSEN concluded saying that it is time for Alaskan BAIRDI
and red King crab fishermen to be able to participate in live
crab markets. Higher prices from developing live crab markets
will benefit crew, vessel owners, processors, and communities.
The work that GKC Holdings and UniSea have done over the past
few years has shown that the new containerized technology can
successfully ship live golden King crab out of remote Alaskan
ports to market. Modifying Alaska's statute as proposed by HB
203 will allow participants of the Bairdi and red King crab
fisheries to participate in the growing live crab markets.
4:48:27 PM
CHAIR MICCICHE said his understanding is the crab transportation
pods refrigerate the seawater just above freezing and take the
crab to a semi-hibernation state.
MR. POULSEN confirmed that seawater in the 32-degree-chilled
pods allows the crab to hibernate. The dark, cold, and aerated
environment does not require ammonia filtration because the
crabs use little oxygen as their metabolism slows. The
technology has been around for 10-15 years. However, the
statutorial change will allow for continued investment and
upgrades to make the technology more applicable to Alaska.
CHAIR MICCICHE agreed that HB 203 is an important bill because
the legislature needs to take all obstacles out of the way and
get the state back to business as soon as possible.
4:50:44 PM
JEREMY WOODROW, Executive Director, Alaska Seafood Marketing
Institute, Juneau, Alaska, testified in support of HB 203. He
read the following letter of support from the Alaska Seafood
Marketing Institute (ASMI):
Alaska's crab species are known worldwide as premium
products from an unrivaled ocean environment. Alaska's
crab species king, opilio (snow), bairdi (Tanner)
and Dungeness on an annual basis, represent 12
percent of the total value of all commercially
harvested Alaska seafood species, despite accounting
for just one percent of the total catch. The first
wholesale value of all crab species combined exceeds
$300 million annually. Live crab sales, however,
account for less than 1 percent of this total, which
can be attributed to several factors including
shipping limitations.
Alaska's crab is enjoyed by consumers both
domestically and abroad. However, in every market
where Alaskan crab is available, a comparable species
of crab harvested from a different region in the world
is available as well. Often, Alaska crab species are
undercut by cheaper foreign crab with more favorable
trade terms. Increased competition and lower
competitor prices negatively impact the market
position of one of Alaska's most prized seafood
species.
MR. WOODROW noted that Russia sells King crab to the Chinese
market at approximately three times the price for frozen Alaska
King crab.
MR. WOODROW continued to read the ASMI letter of support for HB
203:
Transportation technology for seafood has made vast
improvements in recent years. As such, the ability to
ship live crab via surface now exists as it never had
before. This new technology means that more crab can
be delivered fresh at a lower cost to the seafood
company with less financial risk than associated with
shipping live crab via air. Currently, the majority of
Alaska crab is sold in the form of frozen or cooked
products. However, at market, live crab is sold for a
significantly higher price.
HB 203 will correct Alaska Statute 16.10.240 and allow
Alaska processors the ability to capitalize on the
newfound shipping technology by expanding markets for
the highest value product forms. HB 203 supports
Alaska's largest private direct employer by providing
the seafood industry with the tools necessary to
compete in the global market. As a result, fisherman,
processors, and communities across Alaska will benefit
from the higher returns of this valuable product.
4:53:24 PM
CHAIR MICCICHE announced that public testimony will remain open.
SENATOR KIEHL asked ADF&G to respond at the next hearing to
whether a crab-spill from a container ship would cause genetic
breeding concerns.
CHAIR MICCICHE stated that ADF&G will be attending the next
hearing.
SENATOR COGHILL asked if the effective date will match the
timing of the crab fisheries.
REPRESENTATIVE KNOPP said he would provide an answer at the next
hearing.
CHAIR MICCICHE remarked that there may be a timing problem for
the fishery if there isn't an immediate effective date. He said
the committee may add an immediate effective if needed.
REPRESENTATIVE KNOPP commented that Senator Coghill's inquiry is
valid and it's the first time the question came up.
4:55:35 PM
CHAIR MICCICHE held HB 203 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 203 v. U.PDF |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| HB 203 Sponsor Statement 3.09.2020.pdf |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| HB 203 Fiscal Note DFG-DCF 01.25.2020.pdf |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| HB 203 Fiscal Note DPS-AWT 01.24.2020.pdf |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| HB 203 Supporting Document - DEC Note 203.2020.pdf |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| HB 203 Written Testimony 01.28.2020.pdf |
SRES 3/16/2020 3:30:00 PM |
HB 203 |
| SB 193 Draft CS v. K.pdf |
SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 v. U.PDF |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 Sponsor Statement v. U.pdf |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 Fiscal Note LAW-CIV 03.06.2020.pdf |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 White Paper APA 02.25.2020.pdf |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 Written Testimony APA 02.25.2020.pdf |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |
| SB 193 Written Testimony Chugach Electric Assoc 02.26.2020.pdf |
SRES 3/9/2020 3:30:00 PM SRES 3/16/2020 3:30:00 PM |
SB 193 |