Legislature(1995 - 1996)
03/01/1995 05:03 PM House FSH
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE SPECIAL COMMITTEE ON FISHERIES
March 1, 1995
5:03 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Chairman
Representative Carl Moses, Vice Chairman
Representative Gary Davis
Representative Kim Elton
Representative Scott Ogan
MEMBERS ABSENT
None
COMMITTEE CALENDAR
Western Alaska Community Development Quota Program Presentation
* HJR 25: Relating to a ban on trawling in the eastern Gulf of
Alaska east of 140 degrees west longitude.
PASSED OUT OF COMMITTEE
* HB 165: "An Act relating to membership on the Board of
Fisheries."
HEARD AND HELD
(* First public hearing)
WITNESS REGISTER
KARL OHLS, Executive Director
Western Alaska Fisheries Development Association
725 Christensen Drive, Suite 5
Anchorage, Alaska 99501
Telephone: 279-6519
POSITION STATEMENT: Provided information regarding the CDQ program
NELS ANDERSON, JR., Executive Director
Bristol Bay Economic Development Corporation
Post Office Box 1464
Dillingham, Alaska 99576
Telephone: 842-4370
POSITION STATEMENT: Provided information regarding the CDQ program
JUSTINE GUNDERSEN, Secretary-Treasurer
Aleutian Pribilof Island Community Development Association
234 Gold Street
Juneau, Alaska 99801
Telephone: 586-3107
POSITION STATEMENT: Provided information regarding the CDQ program
AGAFON KRUKOFF, President
Central Bering Sea Fishermen's Association
730 I Street, Suite 211
Anchorage, Alaska 99501
Telephone: 279-6566
POSITION STATEMENT: Provided information regarding the CDQ program
FRED PHILLIP, Board Member
Coastal Villages Fishing Cooperative
Post Office Box 6
Kwigillingok, Alaska 99622
Telephone: 588-8320
POSITION STATEMENT: Provided information regarding the CDQ program
EUGENE ASICKSIK, Acting Executive Director
Norton Sound Economic Development Corporation
Post Office Box 24
Shaktoolik, Alaska 99771
Telephone: 955-2341
POSITION STATEMENT: Provided information regarding the CDQ program
RAGNAR ALSTROM, Board Member
Yukon Delta Fisheries Development Association
Post Office Box 112
Alakanuk, Alaska 99554
Telephone: 238-3117
POSITION STATEMENT: Provided information regarding the CDQ program
REPRESENTATIVE BEN GRUSSENDORF
Alaska State Legislature
State Capitol Building, Room 415
Juneau, Alaska 99801
Telephone: 465-3824
POSITION STATEMENT: Prime Sponsor of HJR 25
MARK KANDIANIS
326 Center Street, Suite 205
Kodiak, Alaska 99615
Telephone: 486-3309
POSITION STATEMENT: Concerns about HJR 25
PAGE ELSE
2219 Sawmill Creek Road
Sitka, Alaska 99835
Telephone: 747-7448
POSITION STATEMENT: Supported HJR 25
LINDA BEHNKEN
403 Lincoln Street
Sitka, Alaska 99835
Telephone: 747-3400
POSITION STATEMENT: Supported HJR 25
CLAIRE JOHNSON
Post Office Box 6384
Sitka, Alaska 99835
Telephone: 747-6384
POSITION STATEMENT: Supported HJR 25
DAN FALVEY
Post Office Box 6083
Sitka, Alaska 99835
Telephone: 747-8710
POSITION STATEMENT: Supported HJR 25
BETSY KNUTSON
2039 Halibut Point Road
Sitka, Alaska 99835
Telephone: 747-5691
POSITION STATEMENT: Supported HJR 25
CAROLYN NICHOLS
305 Islander Drive
Sitka, Alaska 99835
Telephone: 747-3146
POSITION STATEMENT: Supported HJR 25
STEVE FISH
Post Office Box 6448
Sitka, Alaska 99835
Telephone: 747-6042
POSITION STATEMENT: Supported HJR 25
MIM ROBINSON, Chairman
Port Alexander Fish and Game Advisory Committee
Post Office 8045
Sitka, Alaska 99835
Telephone: 568-2236
POSITION STATEMENT: Supported HJR 25 and Opposed HB 165
REPRESENTATIVE PETE KELLY
Alaska State Legislature
State Capitol Building, Room 513
Juneau, Alaska 99801-1182
Telephone: 465-2327
POSITION STATEMENT: Prime Sponsor of HB 165
DALE BONDURANT
HC 1, Box 1197
Soldotna, Alaska 99669
Telephone: 262-0818
POSITION STATEMENT: Opposed HB 165
BRUCE SCHACTLER
Post Office Box 2254
Kodiak, Alaska 99615
Telephone: 486-4686
POSITION STATEMENT: Opposed HB 165
PREVIOUS ACTION
BILL: HJR 25
SHORT TITLE: BAN TRAWLING IN EASTERN GULF OF ALASKA
SPONSOR(S): REPRESENTATIVE(S) GRUSSENDORF
JRN-DATE JRN-PG ACTION
01/25/95 130 (H) READ THE FIRST TIME - REFERRAL(S)
01/25/95 130 (H) FSH, RES
02/20/95 418 (H) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
02/20/95 418 (H) READ THE FIRST TIME - REFERRAL(S)
02/20/95 418 (H) FSH, RESOURCES
03/01/95 (H) FSH AT 05:00 PM CAPITOL 124
BILL: HB 165
SHORT TITLE: QUALIFICATIONS FOR BOARD OF FISH MEMBERS
SPONSOR(S): REPRESENTATIVE(S) KELLY,Toohey
JRN-DATE JRN-PG ACTION
02/08/95 272 (H) READ THE FIRST TIME - REFERRAL(S)
02/08/95 273 (H) FSH, RES
03/01/95 (H) FSH AT 05:00 PM CAPITOL 124
ACTION NARRATIVE
TAPE 95-13, SIDE A
Number 000
The House Special Committee on Fisheries was called to order by
Chairman Alan Austerman at 5:03 p.m. Members present at the call
to order were Representatives Davis, Elton and Moses.
HFSH - 03/01/95
WESTERN ALASKA CDQ PROGRAM PRESENTATION
Number 020
KARL OHLS, Executive Director, Western Alaska Fisheries Development
Association, gave a brief overview of the Community Development
Quota Program (CDQ). He stated, "The CDQ program started in 1992,
when the federal government allocated a small percentage of the
pollack in the Bering Sea." He went on to say that 7 l/2 percent,
which is approximately 100,000 metric tons, go to the 56 villages
that are within 50 miles of the Bering Sea coast. The communities
were given this pollack for a limited basis, as the program expires
at the end of this year. The allocation is to be used for job
creation and economic development.
MR. OHLS explained, "At the end of 1993, the program accounted for
8 percent of the economy of the Western Alaska CDQ region and 18
percent of the entire private sector economy. There are about 1600
jobs that have been created for people in Western Alaska and
approximately $40 million has been generated for investment in
development projects. These jobs and revenues did not exist for
these communities, 2 1/2 years ago." He further stated that all
the groups have two observers on board the boats when fishing, to
volumetrically measure their catches. This is done to not only
document their catch, but to report their catches on a daily basis.
A great emphasis has been placed onto catching only pollack and
reduce the bycatch in this trawl fishery.
MR. OHLS specified, "There are six CDQ groups, ranging from the
Aleutians all the way up to the Norton Sound. Each region has
adopted a slightly different economic development strategy. The
state and federal governments set the goals for the program and
then leave it to the communities to decide how they're going to
achieve these goals." He further commented that if a region is
unsuccessful, the state will take away their quota and give it to
another group that is successful.
Number 136
CHAIRMAN AUSTERMAN noted that Representative Ogan arrived at 5:10
p.m.
NELS ANDERSON, JR., Executive Director, Bristol Bay Economic
Development Corporation, summarized the CDQ program in his group.
He related, "Bristol Bay has had 194 people working on 3 factory
trawlers. These jobs occur during the winter, which is
unprecedented in Bristol Bay. They've earned approximately a half
million dollars in wages." He recounted how young people are
cleaning up their act, as there is a zero tolerance in effect on
these vessels. The vocational and technical training program is
geared towards moving people into the marine fishing industry. In
1993, they issued $40,000 in academic scholarships. In 1994,
$50,000 were awarded and $60,000 will be given out in 1995. A
permit brokerage has been established to track the Bristol Bay
permits. A permit revolving loan fund is still needed to allow
young people without a credit history, to move into the salmon
fishery.
Number 207
REPRESENTATIVE SCOTT OGAN asked Mr. Anderson in regards to that
last statement, if the Alaska Commercial Fishing and Agriculture
Bank (CFAB) was involved.
MR. ANDERSON responded that CFAB does have programs, but there are
limitations. He said, "They need to have at least a $10,000
amount, before they can move ahead with the CFAB program."
REPRESENTATIVE OGAN followed up by asking about the $10,000 amount
they have to have.
MR. ANDERSON replied that it was connected to the down payment they
have to have for CFAB. He concluded his remarks by saying, "We
hope to do something about making a dent in the welfare system in
Alaska."
CHAIRMAN AUSTERMAN thanked the speaker and asked if the corporation
was getting involved in the purchase of boats to fish the CDQs or
are they still leasing them out.
MR. ANDERSON indicated that they were leasing out their CDQ to an
ocean trawler partner. He further stated, "We are now in the
process of finishing up a Request for Proposal (RFP) program, and
we are making a slight change in how we're going to be addressing
that. We are going to propose to the state that we take a portion
of our CDQ allocation and use that to help fund and to operate a
vessel of our own." He also remarked that they are hesitating to
do so, because of the crab industry being in a state of flux.
There is a moratorium on vessels and that is going to decrease the
value of these vessels. They have the funds necessary and the
plans in place to operate a vessel of their own, but they are
waiting for the situation in this fishery to stabilize.
CHAIRMAN AUSTERMAN expressed a complaint that he has heard, "That
there is only one Alaska vessel that is involved in fishing the
CDQs. The Alaska industry was not necessarily invited in to
participation in the CDQs. The original concept behind the CDQs is
to get those fish in that industry ashore and those dollars
ashore." He asked that the speakers address this concern.
Number 242
MR. ANDERSON asserted that they had gone through a RFP process.
Recently, they only had two onshore operators to put in a bid.
Western in Unalaska is one of those two and are still being
considered.
CHAIRMAN AUSTERMAN asked further as to how their RFP process
worked.
MR. ANDERSON answered that a criteria was established that had the
best interests of Bristol Bay in mind. They issued letters of
interest to people who had indicated an interest. They sent
letters of the RFP out and after a review process, the final
decision will be made on March 16 and 17, 1995.
CHAIRMAN AUSTERMAN asked if the RFPs were advertised statewide.
MR. ANDERSON responded that they are advertised all over the
country.
Number 307
JUSTINE GUNDERSEN, Secretary-Treasurer, Aleutian Pribilof Island
Community Development Association (APICDA), specified which
communities are represented by her association. She responded in
regard to Chairman Austerman's earlier question about the lack of
Alaska vessels engaged in fishing the CDQs. She stated, "Our
partners are Trident, who is American owned and Starbound, who is
American owned. Trident owns the onshore and Starbound is the
offshore."
MS. GUNDERSEN went on to detail the APICDA program. They have
joint ventures with each community in their association. She went
on to expand on numerous local infrastructure projects funded by
APIDCA during 1993 and 1994. Additionally they have a
comprehensive training, employment and education program. On an
annual basis, they allocate $300,000 for these projects.
CHAIRMAN AUSTERMAN asked Ms. Gundersen what other parameters are
used to determine where the CDQ funds can be spent.
MS. GUNDERSEN replied, "We give a certain amount of money to the
schools each year, for programs for the children, primarily for
fishering at this point." She further stated the guidelines they
use have been identified to the subject of fishing.
CHAIRMAN AUSTERMAN wanted to know if the community needed a new
water supply or sewer system, could the money be use for that
project.
MS. GUNDERSEN replied, "In False Pass it was used for
electrification for their dock and water."
Number 435
AGAFON KRUKOFF, President, Central Bering Sea Fishermen's
Association, also responded to Chairman Austerman's concerns. He
recounted that one of the ways that they first spent any money was
on infrastructure development. They spent $750,000 plus $1.3
million from the state to dredge their harbor. They matched
$250,000 of a Housing Urban Development program to develop a small
boat mooring facility for a local halibut fisherman. He went on to
explain the different ways they are managing and expending money
from the CDQ program.
CHAIRMAN AUSTERMAN asked Mr. Krukoff is they have a shore side
plant.
MR. KRUKOFF indicated that there was one built by an
American/Japanese company, recently bought by Trident. There are
also two floating processors in the harbor. He further stated that
they are not active participants of any of those three processing
companies.
CHAIRMAN AUSTERMAN asked how many employees did they anticipate the
new shore side plant would have generated.
MR. KRUKOFF digressed somewhat, but finally replied that before
Trident came in, over 50 people had been hired to keep that plant
open.
Number 545
REPRESENTATIVE GARY DAVIS referred to dredging the St. Paul Harbor
and wanted to know if that was construction or maintenance
dredging.
MR. KRUKOFF replied that it was construction dredging. But he did
indicate there would be a need for maintenance dredging.
REPRESENTATIVE DAVIS wanted to know how long before maintenance
dredging was necessary.
MR. KRUKOFF commented that he really didn't know, but probably
every five years, because there is a sandy bottom.
REPRESENTATIVE DAVIS suggested that they keep a maintenance budget.
FRED PHILLIP, Board Member, Coastal Villages Fishing Cooperative,
reported on how the cooperative creates employment opportunities,
developing local fishery infrastructure and participation in the
fisheries. In conclusion he stated, "Successful participation will
be measured by profitability, numbers of jobs created, numbers of
individuals gaining advancement or learning specialized skills and
sustainability over a long period of time."
Number 665
REPRESENTATIVE DAVIS commented that the cooperative covered quite
an area. He asked if there was a headquarters for the cooperative.
MR. PHILLIP responded that they have offices in Bethel and one in
Juneau. They also work with their partners in Seattle.
Number 680
EUGENE ASICKSIK, Acting Executive Director, Norton Sound Economic
Development Corporation, informed the committee that they had 15
communities in their CDQ group. They also had sent out RFPs and
stipulated that anybody who wanted their pollack would have to work
with them in the herring markets. In the salmon fishery, the
awarded company would also have to develop a market for pink
salmon.
TAPE 95-13, SIDE B
Number 000
MR. ASICKSIK declared that most of their programs are geared
towards getting the local fishermen back into the business of
fishing. They have jointly purchased a 135-foot longliner which is
currently fishing for cod. But it will also be used to fish
sablefish and during the summer it will be used to process salmon.
They also have similar loan and education programs as the other
groups.
Number 111
RAGNAR ALSTROM, Board Member, Yukon Delta Fisheries Development
Association, announced that his group is made up of four villages
on the mouth of the Yukon River. The major goal of their
association is an aggressive job training and placement program.
By the end of this month, they will have ten vessels in their small
boat fleet, all being crewed by members of the villages.
Number 239
REPRESENTATIVE DAVIS wanted to know if there was a program to
maintain the engines and electronics associated with owning and
operating a boat.
MR. ALSTROM specified that they had sent people through an
electronics program. He further assured the committee that there
are people out in the villages that there are capable of working on
diesel engines.
Number 256
REPRESENTATIVE KIM ELTON referred to what the last witness said
about the importance of moving part of the industry ashore to
provide jobs in the local area. He asked, "How much of the
allocation is done offshore and how much is onshore and subject to
various fish taxes and business taxes that the state collects."
MR. ALSTROM stipulated that the pollack allocation is done by a
factory trawler, that is completely offshore. He believed that
they pay a fish tax, when it is landed in Dutch Harbor. The sable
and halibut fish quota will all be delivered onshore to Dutch
Harbor.
REPRESENTATIVE ELTON followed up with a comment about moving
onshore is good public policy. He questioned specifically, "Do
people who bid on the RFPs, do they have a certain advantage over
onshore people, because they're not paying various fisheries taxes
and the business taxes? It would seem to me that an offshore
trawler may be able to respond better to an RFP if they're not
paying taxes that onshore people have."
Number 290
MR. OHLS responded to the question of inshore/offshore facilities.
He observed, "The offshore boats do have certain efficiencies in
their operation, besides taxes, being able to process on board, to
go to where the fish are."
REPRESENTATIVE ELTON emphasized, "There's not quite a level playing
field here. At the same time, they have the ability to move where
the biomass is and where it's being caught. They also have a
certain advantage that they're not paying as much as an onshore
based company. At the same time they're in court, fighting the
transfer tax, imposed by the last legislature."
MR. OHLS wrapped up his remarks by saying, "The idea behind the CDQ
program originally was that you had the Bering Sea, with the
world's richest fishery resource. And right next to it, a section
of Alaska that had high unemployment and some very truly atrocious
social problems. Years ago, some of the leaders in Western Alaska
wondered if there was some way that the wealth of that resource
could be used to alleviate some of the problems." He reiterated
that was the concept of the CDQ program.
Number 364
CHAIRMAN AUSTERMAN called for a two-minute recess.
HFSH - 03/01/95
HJR 25 - BAN TRAWLING IN EASTERN GULF OF ALASKA
Number 376
REPRESENTATIVE BEN GRUSSENDORF gave the committee a brief outline
on a similar resolution passed a few years ago, to encourage the
North Pacific Fisheries Management Council to consider the
uniqueness of the area of 140 degrees, East, from Yakutat on down.
He further explained what would happen if we continue to allow
trawling in this area. He indicated that he had submitted a
sponsor substitute that clarifies the rockfish issue itself.
Number 437
REPRESENTATIVE ELTON moved to place the sponsor substitute before
the committee.
CHAIRMAN AUSTERMAN, hearing no objection, indicated that the
sponsor substitute for HJR 25 is before the committee.
Number 448
MARK KANDIANIS testified via teleconference from Kodiak, indicating
that there was some merit in protecting that area for the
longliners. There have been impacts of heavy trawl fishing in that
area according to Mr. Kandianis.
CHAIRMAN AUSTERMAN noted that the resolution, if passed, will go on
to the House Resources Committee. He suggested that Mr. Kandianis
contact Representative Grussendorf's office with any further
concerns.
MR. KANDIANIS thanked the committee and indicated a willingness to
follow this resolution.
Number 489
PAGE ELSE testified via teleconference from Sitka, in support of
HJR 25 to protect the habitat and resources of the prescribed area.
Number 507
LINDA BEHNKEN testified via teleconference from Sitka, on behalf of
the Alaska Longline Fishermen's Association in support of HJR 25.
Number 538
CLAIRE JOHNSON testified via teleconference from Sitka, indicating
that 25 members of the Friends of Southeast Future voted in favor
of supporting HJR 25.
Number 550
DAN FALVEY testified via teleconference from Sitka, in support of
HJR 25.
Number 582
BETSY KNUTSON testified via teleconference from Sitka, in support
of HJR 25. She asserted, "A few factory trawlers have the
potential of destroying our livelihood, damaging the economics of
the coastal communities and the destruction of a unique way of life
in Southeast Alaska."
Number 592
CAROLYN NICHOLS testified via teleconference from Sitka, in support
of HJR 25. She indicated that the open line fishery has been
closed in the past because of the trawler bycatch exceeding its
limit.
Number 609
STEVE FISH testified via teleconference from Sitka, in support of
HJR 25.
Number 625
MIM ROBINSON, Chairman, Port Alexander Fish and Game Advisory
Committee (PAF&GAC), testified via teleconference from Port
Alexander, in support of HJR 25.
Number 640
REPRESENTATIVE ELTON motioned to move SSHJR 25 out of committee
with individual recommendations.
CHAIRMAN AUSTERMAN, upon hearing no objections, moved SSHJR 25 out
of the House Special Committee on Fisheries, with individual
recommendations.
HFSH - 03/01/95
HB 165 - QUALIFICATIONS FOR BOARD OF FISH MEMBERS
Number 648
CHAIRMAN AUSTERMAN suggested a working group be established for the
number of bills that are similar to HB 165. He further stated tha
this bill would be heard, but not moved out of committee.
Number 655
REPRESENTATIVE PETE KELLY, Sponsor of HB 165, testified, "The bill
essentially provides for demographic representation on the Board of
Fish. It calls for at least one, but not more than two persons who
reside in each of the following areas: Southeast, Southcentral,
Western, Interior and Arctic; one person, but not more than two
from each of the following groups: Commercial, subsistence,
personal and sport fishing; one person, but not more than three who
are public members, who do not have a vested economic interest in
the utilization of the fishery resources in the state." He
emphasized, "It is not necessarily a representative board that
we're putting here together, but we're just trying to prevent the
exclusion of entire areas and interest in this state.
CHAIRMAN AUSTERMAN questioned Representative Kelly about the number
of people that would serve on the Board of Fish.
REPRESENTATIVE KELLY responded that a member could be commercial,
but also be from the Southeast region, and fill both
recommendations with one person.
Number 697
REPRESENTATIVE OGAN observed, that the structure of this bill
looked similar to the Big Game Services Board.
TAPE 95-14, SIDE A
Number 000
DALE BONDURANT testified via teleconference from Soldotna, against
HB 165 because it appeared to be convoluted as to its makeup. He
indicated that it gets even more complicated when it gets down to
the section on public members. He closed with these comments, "I
would like to see one person, one vote type of thing."
Number 067
MS. ROBINSON testified via teleconference from Port Alexander, that
the PAF&GAC opposes HB 165. She declared, "The suggested
membership composition does not solve the board problems, because
not all gear groups and regions can be adequately represented on a
seven member board."
Number 103
BRUCE SCHACTLER testified via teleconference from Kodiak, in
opposition to HB 165. He believed that this bill would continue to
polarize into special interests, the entire Board of Fish.
Number 166
REPRESENTATIVE KELLY asked Chairman Austerman if he would like him
to come back and participate in the working group.
CHAIRMAN AUSTERMAN indicated that it was up to him.
Number 175
REPRESENTATIVE DAVIS asked if Representative Kelly could give a
short synopsis for those still on teleconference.
REPRESENTATIVE KELLY responded in regard to HB 165. He stated,
"What it's designed to do is guarantee that the commercial
fishermen are represented. So that the same thing doesn't happen
say to the commercial fishermen, that might have happened to the
Interior." He further stated, "Where people get confused with
this, and rightfully so, is that there are more categories here,
than there are board seats." He explained, "It gives the Governor,
the special interests, whoever, some latitude in letting the users
of the resource be represented, maybe in greater numbers." He went
on to list all the various cities that recent appointees to the
board are from, since 1990.
Number 255
CHAIRMAN AUSTERMAN suggested that the teleconference participants
direct specific questions on how the bill is being drafted, to
Representative Kelly in written form. He further indicated that HB
165 would be held as previously indicated.
ADJOURNMENT
CHAIRMAN AUSTERMAN adjourned the meeting at 6:51 p.m.
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